Sip Project On Uco Bank

A Project Report On
Comparative study of The Home Loan Scheme of UCO Bank with respect to other banks Summer Training Project Report submitted in partial fulfillment of the requirements for the Diploma of Post Graduate Diploma in Management 2012
Jaipuria Institute Of Management Noida

Under The Supervision Of: Prof.M S Kumar Submitted By: Siddharth Tripathi PGDM(G) PGFA 1147
Siddharth Tripathi PGFA 1147
DECLARATION
I hereby state that the dissertation entitled Comparative study of The Home Loan of UCO Bank submitted by me in partial fulfillment of the requirements for the award of PGDM(General) is my original work and that it has not previously formed the basis for the award of any other degree diploma fellowship or other similar titles.
Date: June 22, 2012
ACKNOWLEGEMENT
If words are considered to be signs of gratitude then let words convey the very same. My sincere gratitude to UCO Bank for providing me with an opportunity to work with Bank and giving necessary directions on doing this project to the best of my abilities. I am highly indebted to Miss Swati Srivastava branch Manager who has provided me with the necessary information and also for the support extended out to me in the completion of this report and her valuable suggestions and comments on bringing out this report in the best way possible.
I would like to extend my thanks to my internal supervisor Prof. M S Kumar Sir , Faculty of JIM, Noida for all the guidance and support received during the course of Project Report and helped me in bringing out this report in its present form.
I would like to pay my humble regards and thanks to all those who directly or indirectly rendered their help in completing this Project Report. I would also like to present a deep bow of gratitude to my family and friends who have been of great help directly and indirectly.
Siddharth Tripathi
PGFA 1147 PGDM (G)
Table of Content S.No Description Page No. 5 6
1 2
4 5 6 7 8
Executive Summary Chapter I: Introduction and Objective of Study Unique feature of house loan Documents Required Home Loan type Home loan interest rates Chapter II: Introduction of Topic Overview Credit monitoring policy Loan schemes Home loans Chapter III: Research methodology Chapter IV: Analysis of data collected Chapter V: Suggestion/Recommendations Chapter VI: Conclusion Chapter VII: Bibliography Annexure
15
91 92 106 107 108 109
EXECUTIVE SUMMARY
The aim of this report is to understand one of the methods of credit appraisal i.e. Home Loan. To analyze customers perception, preference and satisfaction level about the home loan being offered by UCO bank and comparing it with banks such as HDFC, ICICI, SYNDICATE and LIC HOUSING FINANACE. To understand customers perception, preference and their satisfaction we did personal survey and collected data from it and then analyzed based on the samples collected.
The project also encompasses, identifies the scope and various parameters, a customer would look into while transacting with bank for certain scheme.
Overall analysis has been done, keeping in mind the various customer segments like businessmen, salaried people and others, consideration while opting for any deposits or borrowings.
CHAPTER I
INTRODUCTION AND OBJECTIVE OF STUDY

A Credit appraisal is an important part of determining the eligibility for a home loan, and the quantum of the loan. A prospective borrower has to go through the various stages of the credit appraisal process of the bank. Each bank has its own criteria to satisfy itself on the credit worthiness of the borrower.
The eligibility for the loan that a person can get depends on his credit worthiness, determined in terms of the norms and standards of the bank. Being a crucial step in the loan process, a borrower needs to be careful in planning his financing modes. The credit worthiness, basically, assures the repayment capacity of the borrower - whether the borrower is capable of repaying the loan and dues on time. Broadly, the information collected is on these aspects: - Incomes of the applicant and co-applicant - Age of applicants - Qualifications - Family details - Nature of profession - Experience - Employer - Security of tenure - Tax history
- Assets owned and their financing patterns - Additional sources of income - Past loan record, if any - Recurring liabilities - Investments - Other present and expected liabilities The norms differ from bank to bank. Each has certain norms within which a prospective borrower needs to fit to be eligible for the loan. Based on these parameters, the maximum amount eligible is worked out. Some methods of arriving at loan amount: Installment -to income ratio A bank applies the installment-to-income ratio (IIR). This helps in finding the loan eligibility of the applicant. It is generally expressed as a percentage. This percentage denotes a portion of the monthly installment on the home loan taken. Usually, the banks fix 33.33 to 40 percent as the ratio. It is assumed that in normal circumstances, a person can pay an instalment up to 33.33 to 40 percent of his salary. For example: Assume the IIR is 33.33 percent and the gross income is Rs 30,000 per month. According to the IIR ratio, the applicant is eligible for a loan where the instalment does not exceed Rs 10,000 per month.
Fixed obligation to income ratio Banks also calculated the eligibility based on the fixed obligation to income ratio (FOIR). Here, a bank takes into account the installments of all other loans already availed of by the applicant and still due, including the home loan applied for. This ratio includes all the fixed obligations that a borrower is supposed to meet regularly on a monthly basis. The fixed obligations do not include statutory deductions from the salary such as Provident Fund, professional tax and deductions for investments such as insurance or a recurring deposit. For example, assume the income is Rs 30,000 per month, there is a car loan installment of Rs 4,000, a TV loan installment of Rs 1,000, and the proposed housing loan instalment is Rs 10,000. Accordingly, the FOIR is 50 percent - 50 percent of the monthly income. The bank may have a standard of 40 percent of FOIR. So, the total installments the person can pay, as per the bank's FOIR standard is Rs 12,000 per month. As he is already paying Rs 5,000 towards the car and TV loans, he has Rs 7,000 left and the loan eligibility is taken as Rs 7000 per month as the basis of housing loan repayment capacity of the customer. Thus, a backward calculation of the repayment capacity is made to find out the amount to be given as loan.
Loan-to-cost ratio A bank also computes eligibility on the basis of a loan-to-cost ratio (LCR). This ratio is used to calculate the loan amount that an applicant is eligible for on the basis of the total cost of the property. This sets the upper limit or the maximum loan amount that a person is eligible for irrespective of the loan eligibility under other criteria. The maximum amount of loan eligible is pegged to the cost or value of the property. While the loan eligibility as per the other parameters may be higher, the loan amount can't exceed the cost or value of the property. The ratio varies between 70 to 90 percent of the registered value of the property. Loan eligibility is computed on the basis of these parameters that act as a guide to determine the loan amount. Generally, the lowest of these is taken as the loan amount that the applicant is eligible for.
Purchasing the home of your dreams is not an easy task. Especially when you plan to buy a home on loan. Home loans means that you buy a house on installments. In simpler terms when you want to own a home and cannot afford to pay the amount in lump sum, you can pay it in monthly installments with an interest rate. There are number of companies offer cheap loans at a low interest rate You can avail loan against existing house for renovation or expansion etc. The demand for home loans will not sag much. The reason is a substantial rise in the income-generating capability of Indian youth. So this particular section will keep the housing loan demand high and increased lending rates can only shelve their plans for some time.
The prime objective of the research report is: To know the concept of home loan.
To undertake the comparative analysis of UCO Bank home loan scheme with (HDFC, ICICI, LIC HFL, SYNDICATE bank) in housing loan sector.
To study consumer preference for the above mentioned housing finance players.
To analyze the satisfaction level of banks (HDFC, ICICI, LICHFL, SYNDICATE Bank) Home Loan Customers.
UNIQUE FEATURES OF HOUSE LOAN

Purpose: For purchase of house from builder/resale and construction/ extension of existing house. Loan Amount: You can avail for Home loans ranging from Rs.1 lakh to Rs.1oo lakh depending on your eligibility, income, and repayment capacity. Security: Home loan is a secured loan wherein collateral are required. Loan Tenor: The maximum loan tenure is 25 years.
So if you are planning to avail a home loan, here are some tips: Firstly, take your own time and evaluate your expenses and do a market survey about the property buying process. Buying a house, which is way beyond your range, could affect you financially; banks help in financing your dream home via home loans
ELIGIBILITY: Banks determine your eligibility based on your repayment capacity and discuss about the loan amount upfront. The eligibility for acquiring a home loan is augmented by clubbing income of your father/spouse/mother/son, by clearing your outstanding debts, by stretching your loan tenure, Salaried individuals can increase their eligibility by showing their performance linked income or bonus earned. Secondly, Do your own analysis and check the impact of your repayment of home loan on your monthly expenditure, as a thumb rule, it is recommended to make sure the EMI of your home loan do not exceed more than 40% of your gross monthly income.
10
INTEREST RATES BEST SUITED: An important factor that goes into your EMI calculations in the interest rates, which may vary from bank to bank, so do compare them. Also do a complete and detailed analysis of the various options like the interest rates i.e. fixed and floating rate of interest. Thirdly, if two banks give you the same amount of loan but at different interest rates do your math and work out whats best for you. Fixed interest loans charge an interest, which remains the same through out the tenure of the loan. This means that the consumer is immune to market risk or the possible upward movement in the interest rates. Hence, fixed rate is a good option when the interest rates are expected to move in the future.
As for Floating rate loan, a consumer is exposed to market risk and his gain or loss depends on the interest rate condition prevailing in the market. Floating rate is beneficial if the interest rate falls in the future. A floating rate is considered non-transparent and is also known as adjustable rate.
Fourthly, if you decide to opt for a fixed rate loan, you can still switch to a floating rate loan in the future and vice versa as and when rates go in your favors and if you decide to switch, you should take into account the cost of doing so and the interest rate benefits of switching. For a given interest rate, loan with daily or monthly reducing balance is better than an annual reducing balance loan. Interest rates vary depending on the tenure of the loan, the amount of the loan and your personal profile.
11
Insurance cover (an added cost) Also, many banks may insist on getting your home insured to safeguard their interest. There are various kinds of insurance covers available for you. Apart from getting the mandatory ones you should try to get insurance as per your circumstances. You also have a choice of getting insured from another company without any objection from your bank.
Other costs: The interest rate and EMIs are not the only cost factor. A 1% administration fee and a 1% processing fee on a Rs.10 lakh loan, would amount to Rs.20,000. Processing fees, administration fees, valuation fee, legal fee, is to be paid when you apply for a loan and other fees paid at closing. Many of these fees are negotiable. You should ask for zero processing fees and zero penalty for pre-payment option. If this were not available, then the lowest cost would be better. Make sure you work out as to how much these costs add up to. So even though the interest rate may be lower, it usually adds up to being expensive. If the EMIs come out a lot more than what you can afford on a monthly basis; try to redo the math with changes in the tenure and loan amount (if possible).
DOCUMENT REQUIRED: Most importantly, all deals and offers agreed upon are supported by
relevant papers. Self-employed and salaried require different documents to support the deal. So make sure you always ask for a letter on the banks letterhead mentioning the likes of, exact rate of interest, processing fees, pre-payment charges along with interest-schedule. Before signing the documents, make sure you recheck all terms and conditions. Do make sure you understand and agree with each of the clauses in the documents. Do not sign any blank documents. Even if it takes you a few hours to fill-up the form, please do so. Do not leave anything for the executive to fill-up. Its always better to get a legal opinion from someone on your loan papers. Do not under any circumstance give any false information. This may amount to fraud a d could land you in trouble.
12
Penalties: Once you have received the loan do your best to pay it back as quickly as possible. But
this early payment might invite a pre-payment clause. Banks make their money off the interest they charge and the sooner you pay back a loan the less money you will have to pay in interest. When it comes to Home loans, penalties are binding, like if you choose to pay up your entire money before the tenure, a pre-payment penalty is charged. So you should know about such penalties beforehand to avoid future misunderstanding between you and the bank.
HOME LOAN TYPES
Owning a piece of land or property is a lifetime dream for every individual. There are many home loans provider in the market to make your dream come true. But before you opt for any home loan provider, you need to consider certain factors related to property that you are interested in buying and also about the salient features offered by a home loan provider and also
study some Home Loans and Home Insurance FAQs which helps in applying a Home Loan in India.
And the most important thing is you should know about each and every term related with Home Loans before applying for a loan. It is always advisable to consult a home loan expert or consultant before applying for a home loan or purchasing a property.
You can take different types of home loans like Bridge loans, Home construction loans, Home equity loans, Home extension loans, Home improvement loans, Land purchase loans etc for different schemes available in the market. There are different types of home loans tailored to meet your needs.
13
Home Purchase Loans: These are the basic forms of home loans used for purchasing of a new house.
Home Improvement Loans: These loans are given for implementing repair works, healing and renovations in a home that has already been purchased.
Home Construction Loans: These loans are available for the construction of a new house.
Home Extension Loans: These loans are given for expanding or extending an existing home. For e.g. addition of an extra room etc.
Home Conversion Loans: These loans are available for those who have financed the present home with a home loan and wish to purchase and move to another home for which some extra funds are required. Through home conversion loan, the existing loan is transferred to the new home including the extra amount required, eliminating the need of pre-payment of the previous loan.
Land purchase loans: These loans are available for purchasing land for both construction and investment purposes.
Bridge Loans: These loans are designed for people who wish to sell the existing home and purchase another one. The bridge loans help finance the new home, until a buyer is found for the home.
14
Home Loan Interest Rate
If you are keen on acquiring a new house then taking a home loan might be a great option for you. No matter what your requirement the different home loan interest rates and offers made by different banks will surely have an appropriate plan for you. Most of these home loan plans are for salaried or self-employed Resident Indians. You can Get the best deals ever and finance the perfect home from the different nationalized and private banks of India. With the varied offering of house loans and home finance gives you an opportunity to select the perfect home loan as per your needs of a dream home.
The are customized home loan plans for different people and the home loan interest rates are also varies on whether you chose floating or fixed interest rate. The different banks of India offer a plethora of home loans for resident Indians. You can choose from an array of home loan rates like Adjustable Home Loan Interest Rate Home Loan or Fixed Home Loan Interest Rate. But if you want the best of the both world you can even opt for the Part Fixed and Part Floating Home Loans Interest Rate etc.
There are various on line portals where you can compare home loan interest rates of leading banks of India. You can compare and contrast the various floating home loan rate and fixed home loan rates given by the different banks. Low home loan interest rates would in turn make your Equated Monthly Installments (EMIs) which comprises of principal and interest.
15
CHAPTER II
UCO BANK
OVERVIEW: Founded in 1943, UCO Bank is a commercial bank and a Government of India Undertaking. Its Board of Directors consists of government representatives from the Government of India and Reserve Bank of India as well as eminent professionals like accountants, management experts, economists, businessmen etc.

in the Service to Community since 1943. have more than 2000 Branches spread all over India and Abroad. also operate two Major International Financial Centres namely Hongkong and Singapore.
have own Correspondents/Agency arrangements all over the world. undertake Foreign Exchange Business in more than 50 Centres in India. have Foreign Exchange Dealing Operations at 1 Centres.
MISSION: To be a Top-class Bank to achieve sustained growth of business and profitability, fulfilling socio-economic obligations, excellence in customer service; through up gradation of skills of staff and their effective participation making use of state-of-the-art technology.

Country-wide presence Strong Capital Base A Well Diversified Asset Portfolio Branch representation in Top 100 Centres (as per deposits) in the country
16
VISION: To emerge as the most trusted, admired and sought after World class financial Institution and to be the most preferred destination for every customer and investor and a place of pride for its employees. CREDIT MONITORING POLICY: Our economy has been on a high growth path fuelling demand for credit from various sectors for expansion of existing capacity as well as for setting up new ventures. Banks have been beneficiaries of this demand as finance is necessary to oil the wheels of growth. Advances of our Bank has grown from Rs.55082 Cr as on 31.03.2008 to Rs.100561 Cr as on 31.03.2011, registering an increase of over 82%, in a short period of three years. However, this period of rapid credit growth has also witnessed an increase in NPAs, thus raising concerns about asset quality. While credit default is unavoidable, it can and should be controlled and kept to the minimum, else it will weaken and threaten the very existence of the banking system. Maintaining asset quality is one of the key challenges for Banks. To ensure strict vigil on the asset quality is of paramount importance. It calls for early pre-emptive measures and sound monitoring systems. The classification of assets is subject to Prudential guidelines on income recognition and asset classification of RBI. These guidelines have been aligned with the best international practices. Credit Monitoring Systems is a tool that allows banks to manage, monitor and control performance of assets in a pro active manner to prevent them from becoming NPA. The main function of credit monitoring is to track the health of advance accounts on an on-going real time basis. It will identify irregularities in the accounts such as delay in servicing of interests, excess drawings, etc. It will also follow a system of preparing the list of irregularities in these accounts and create a special watch list depending on the extent of irregularities. These accounts need to be followed up on day to day basis to ensure that the irregularities could be rectified. These actions are needed so that such accounts do not degenerate and fall into NPA category.
17
While revising this policy we have considered the transition from manual to CBS environment and introduced the Graded System of Monitoring of accounts, replacing the earlier system of Monthly Credit Monitoring Returns (MCMR). It would be our endeavour to generate reports from the system, based on the requirement and thereby reduce the workload of the branches. The revised guidelines for credit audit, stock audit and restructuring of accounts have also been incorporated, in the policy document. I would like to emphasise that monitoring does not mean tightening standards and choking off credit from the financial system. It means more steps being instituted to have the brakes on at the right place at the right time. With a hope that the implementation of the policy will help in maintaining the asset quality and meeting the asset management challenges of the present and future effectively.
MONITORING OBJECTIVES / GOALS MONITORING OBJECTIVES The objectives of Credit Monitoring are to : a. Oversee delivery of credit initially after compliance with the terms and conditions of sanction and also adherence to the laid down systems and procedures of the Bank. b. Identify weak accounts and advise the same to Competent Authority for prompt corrective action to protect the quality of the account. c. d. e. Keep track of the health of the credit portfolio of the bank. Developing adequate and appropriate systems & procedures to achieve the above. Insulate the system against entry of accounts with potential for credit default.
18
PROCESS OF MONITORING (a) Identify the eligible new account through New Business Committee
and create a barrier for entry of new account with potential for credit default.
(b) Monitoring of performing assets : 1 Pre-Disbursement Scrutiny of disbursement request based on compliance report submitted by the branch and approval for disbursement by the Competent Authority after confirming compliance of sanction terms. 2 During Disbursement Watch on branches to ensure end use of funds after due verification and submission of post disbursement compliance report to the Competent Authority. 3 Post- Disbursement Surveillance on continuous basis to ensure safety of the banks fund and maintain the quality of assets by way of physical verification, stock audit, credit audit, legal audit, verification report of lenders Engineer, maintenance, insurance etc. DP
19
LOAN SCHEMES : Being a Commercial Bank, giving Loans and Advances is among our primary activities. Apart from our participation in meeting both Term Loan and Working Capital requirements of Agriculture sector, Trade and Service sector, Large/Medium and Small Scale Industries sector, Infrastructure sector etc. including taking care of their Export/Import and non-fund based needs like Letter of Credit, Bank Guarantee etc., we have a fairly large basket of loan products specially designed to suit your personal needs. Salient features of some of the more attractive Personal Loan Schemes are described below.
UCO Home UCO Education Loan UCO Mortgage UCO Pensioner UCO Swabhiman
UCO Car UCO Cash UCO Securities UCO Two Wheeler
UCO Trader UCO Rent UCO Real Estate UCO Emd Loan
Interest Subsidy Scheme UCO Doctor
Reverse Mortgage Loan for Housing the Urban Scheme for Senior Citizen Poor (ISHUP)
20
UCO HOME This housing finance scheme brings to you an excellent opportunity to have your own house or flat. The scheme has been carefully tailored to suit your requirements and match your capacity. The reasonable rate of interest that you pay will be calculated on reducing balance, i.e. you do not have to pay interest on the loan installments actually repaid from the date of such repayment. Eligibility You are eligible for a loan under UCO HOME individual (salaried/Non-salaried) having Minimum 21years of age and Maximum 65 years of age inclusive of repayment period. Purpose Purchase and construction of independent house/ready built flat for residential purpose. Extension/Repair/Renovation of existing house/flat not more than 50 years old. Takeover of home loans availed from other banks/FIs. Furnishing of house to be constructed/acquired by UCO Home Loan borrower or Non-Uco Home loan borrower.
21
Quantum of loan The area-specific maximum limits for construction/purchase are as under : Location/Centre For construction/Purchase Metro/Urban/SemiUrban Rural Rs. 25 lacs Rs. 7.5 lacs Rs. 100 lacs For Repair/Extension/ Renovation Rs. 25 lacs
Maximum limits for Furnishing are Rs.5.00 lacs in Metro/Urban/Semi-Urban areas/ rural areas. Loan Entitlement Least of the Following: i. ii. iii. 80% of the project cost. Existing deduction +EMI should not exceed 60% of the gross income. 60 times of net monthly income.
Processing Fee 0.5% of the loan amount maximum Rs. 15000/No processing fees for take over loan.
22
Repayment The maximum period of repayment is 25 years/300 EMI but should not be beyond retirement age, in case of salaried class and 65 years in case of non-salaried class. Security & Guarantee

EMTD OF property financed. Guarantee of spouse if not co-applicant. In case of unmarried persons, guarantee of PF nominee
No third party guarantee
Prepayment charge No pre-payment charges are to be levied if loan is pre-paid from own source. 2% of the prepaid amount, if the loan is prepaid within 3 years. No prepayment charges thereafter. Tax Benefits Tax relief on principal and interest components of this loan would be available as per provisions prevailing under Income Tax Act. Insurance Insurance cover on house property under Uco Griha Raksha Yojana scheme to cover the risk of damage to home by natural calamities. Uco Griha Lakshmi Yojana to cover the outstanding loan in case of accidental or natural death of borrower.
23
EDUCATION LOAN
Scope: The scheme extends a helping hand to meritorious students desirous of pursuing higher study either in India or abroad. Eligibility Studies in India Graduation courses leading to degrees like B.A., B.Sc., B.Com. etc. Post Graduate courses leading to Masters degrees as also Ph.D. Professional courses in Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer, etc. Computer Certificate courses of reputed institutes accredited to Universities or DoE. Courses like ICWA, CA, CFA, etc. Studies Abroad Graduation : Job oriented professional / technical courses offered by reputed Universities. Post Graduation : MCA, MBA, MS, etc. Courses conducted by CIMA London, CPA in U.S.A., etc.
24
Age limit For Graduation: between 18 & 25 years For Post Graduation: between 21& 28 years For SC/ST students: upto 30 years Eligibility

should be Indian National Must have secured admission in Regular/ Technical course through selection process.
Quantum of loan Studies in India : Maximum Rs. 10.00 Lac Studies Abroad : Maximum Rs. 20.00 Lac. Security Upto Rs.4.00 lacs No security Above Rs. 4.00 lacs & upto Rs. 7.50 lacs: collateral security in the form of a suitable 3rd party guarantee Above Rs. 7.50 lacs : collateral securities of suitable value.
25
Margin Upto Rs. 4 Lac - Nil Above Rs. 4 Lac Studies in India - 5% Studies Abroad - 15% Service Charge : There is no processing fee /no service charge Disbursement Disbursement in stages as per the requirement directly to institutions. Interest Rates
Base Rate+3.00% for loan upto Rs. 4.00 lacs Base Rate+3.75% for more than Rs. 4.00 lacs
Repayment Period The loan shall be repaid in 5-7 years after moratorium. Repayment Holiday Course period+ 1year or 6 months after getting job whichever is earlier. 1% interest concession may be provided, if the interest is serviced during moratorium period.
26
UCO CASH This is a Personal Loan scheme to meet the domestic needs like marriage, medical, traveling and other social obligations. Eligibility A permanent employee in Govt. / Semi-Govt. / Reputed Public / Private Ltd. Co. /College / Universities / other recognized institutions / PSU and have completed minimum 3 years in the organization having salary tie-up arrangement with our branches. Net take home pay should not be less than 40% of gross salary after deduction of PF, IT and other statutory deductions including proposed EMI. Regular income may also be reckoned for eligible quantum.
Quantum of loan 90% of the proposed expenditure or Rs. 2 Lacs whichever is lower. Additional amount may be sanctioned within the quantum ceiling to the existing eligible borrowers. Security Loan will be on clean basis with two guarantors Spouse and other than Spouse having equal income with that of the applicant. Repayment The loan amount with interest is repayable in 48 EMIs for men and 60 EMIs for women through salary deduction of employee borrower, but one year before retirement. Service Charge : 1% (minimum Rs.750/-)
27
UCO EARNEST MONEY DEPOSIT LOAN SCHEME Loan scheme for financing for Earnest Money Deposit for booking housing plots/flats offered by various Urban/Metropolitan Development Authorities & Housing Boards. Eligibility Indian residents having regular documented source of income. Minimum 21 years of age Singly/Jointly as permitted by State Housing Boards/Urban Development Authority/Metropolitan Development Authority. The facility is to be allowed to only those applicants who fulfill all the eligibility criteria under UCO Shelter Scheme. Amount of Loan Maximum not to exceed 80% of the EMD. Processing Charge Rs. 300.00 upfront per application Margin - 20% Interest Rates - 9.00% (Fixed) Prerequisites
Letter of undertaking to be obtained from SHB/UDA/MDA of having noted Bank's lien and refund the amount through UCO Bank in case of unsuccessful applicants
28
In case of allotment of plot, housing loan under UCO Shelter can be availed by the
Eligible Borrowers Purpose Loan Amount
Senior Citizens of India. Supplementing Senior Citizens Income Based on valuation of the property and age of the borrower Maximum Rs.50 lacs
Period of Loan Mode of Disbursement
Minimum 5 years and maximum 15 years. Monthly/Quarterly with fixed/increasing Equated monthly Disbursement with an option to avail One-time lump sum payment after 12 months from the first disbursement during entire tenure of 15 years as per choice of the borrower.
Security
Equitable Mortgage of the residential property owned & self occupied by the Senior Citizen borrower.
Rate of Interest Repayment
10.50% (fixed) with reset clause after 3 years. The outstanding loan will be due when the last borrower dies/permanently moves out of the house/would like to sell the home. Loan will be liquidated by sale of property. Option available with the legal heir(s) to repay the loan and redeem, the house property.
applicants. In such case the loan for EMD shall be adjusted against the loan granted for purchase of land and construction of house thereon. Repayment- 24 monthly installments
29
UCO SWABHIMAN - REVERSE MORTGAGE LOAN MORTGAGE LOAN SCHEME FOR SENIOR CITIZEN Bank introduces UCO Reverse Mortgage Loan Scheme for Senior Citizens, under Reverse Mortgage a Senior Citizen, owning a house/flat, can avail of a monthly stream of Income against the mortgage of his/her property while remaining the owner and occupying the house throughout his/her lifetime, without repayment or servicing of the loan.
Interest Subsidy Scheme for Housing the Urban Poor (ISHUP) 'Affordable Housing for All' is an important policy agenda of the Government of India. Accordingly The Cabinet Committee for Economic Affairs has approved an Interest Subsidy Scheme for Housing the Urban Poor in order to ameliorate the living conditions of Economically Weaker Section/LIG population in urban areas. Primary objective of the scheme is to provide interest subsidy support. Objective: The key objective of the scheme is to enable Economically Weaker Sections (EWS) and Low Income Group (LIG) households to avail affordable housing loans for purchase of house/construction of new house. Definition: a) EWS- Economically Weaker Sections are those households having monthly income upto Rs.3300/b) LIG- Low Income Groups are those households having monthly income between Rs.3301/- to Rs. 7300/-
30
Target Group: Individuals /NGOs for on lending to their group members. Preference will be given to SCs, STs, Minorities, Person with disabilities and Women beneficiaries in accordance with their proportion in the total population of city/urban agglomerate during the 2001 census. Applicants planning to form cooperative group housing societies or organizations like Employees Welfare Housing, Labour Housing, etc. should be given preference and whenever possible construction of houses by such cooperatives by way of 1+3 storied buildings should be promoted so that cost of land is shared among beneficiaries. However, this is not a mandatory requirement. Both individuals as well as group Housing borrowers are equally eligible under the scheme. Target Borrower: Identification of beneficiaries will be undertaken by Urban Local Bodies or Local Nodal Agencies and they will assist the borrowers in paper works and procedure of bank loan. However the borrower would be free to approach and negotiate a loan under the scheme directly with the bank branch. Preference: Preference will be given to Scheduled Caste, Scheduled Tribe, Minorities, Person with disabilities and Women beneficiaries in accordance with their proportion in the total population of the city/urban agglomerate during the 2001 census
31
Stipulations: The ultimate beneficiaries should not own a house in his/her name or in the name of his/her spouse or any dependent child. But such beneficiaries should own land in his name in case of application for construction of new house. Area of operation: Urban area. Zonal Offices will be advised to submit us a list of branches at urban area for implementation of the scheme. Nodal Agency: NHB and HUDCO were selected by the Government of India to act as intermediary financial institutions that would be responsible for administering the subsidy. Before implementation the Bank has to sign a MOU with any of the two organizations. We have signed MOU with NHB. Loan amount: a) EWS- Maximum loan of Rs.1 lac ( Rs one Lac Only) for a house of at least 25 sq mts. b) LIG- Maximum loan of Rs.1.60 lac( Rs one Lac sixty thousand Only) for a house of at least 40 sq mts. However subsidy will be available for loan upto Rs. 1 lac only. Disbursement: Disbursement will be made on a phased manner depending upon the progress of construction. Branch will monitor the construction of the dwelling units financed under the scheme, including the approvals for the building design, infrastructure facilities etc. as also the quality of the construction and verify through site visits etc. the expenditure incurred upto different stages of construction. In case of construction disbursement may be done by debiting the respective loan account and crediting the savings bank account of the borrower. However in case of purchase of
32
a ready built house the payment should be made directly to the vendor by issuing Demand Draft/ Pay Order as the case may be by debiting the loan account of the borrower. Rate of Interest: Interest @8.50% p.a. for first 5 years with a provision to reset after 5 years from the date of drawal of first installment for all loan under the scheme. Sanctioning Authority: All the loan applications under the scheme will be processed and sanctioned at the Retail Processing Centres at Zonal Offices and in case there is no Retail Processing Centres at any Zonal Office, at the branches identified by the respective Zonal Office. On receipt of the sanctioned proposals the branch will disbursed the loan following all the stipulation noted by the Retail Processing Centres at Zonal Office/Processing Cell. However before sanctioning any loan it should be ensured that the borrower have sufficient repaying capacity based on the average monthly income of the applicant for last three years and monthly family expenditure depending upon the size of family. Pre-payment charges: There will be no pre-payment charges for any loan sanctioned under the scheme. Subsidy: The subsidy will be 5% p.a. on interest charged on the admissible loan amount for both EWS and LIG, over the full period of the loan for construction or acquisition of a new house. The Net Present Value (NPV) of the subsidy will be arrived at on the basis of notional discount rate of 9% p.a. (equivalent to Government Security rate) for the period of the loan and on the interest chargeable at the time the loan is contracted.
33
The subsidy will be credited upfront to the borrowers account and interest will be calculated on the net amount of loan at the agreed rate of interest. Procedure for claiming Subsidy: Participating branches will claim interest subsidy for the entire period of any loan disbursed during the quarter to Head Office, Priority Sector Department through their respective Zonal Offices. Branches should submit their claim within 3 days of close of a quarter to their respective Zonal Offices and the Zonal Offices in turn will submit it to Head Office, Priority Sector Department within 7 days of close of a quarter. Repayment:Loan will be repaid in 180 to 240 EMI depending upon the income of the borrower. However branches may prefer for 20 years repayment, to get full benefits of Interest Subsidy and lower EMI. Equated Monthly Installments (EMI ) Loan will be repaid as per following EMI Chart Particulars Loan Amount Rate of Interest Terms of Repayment Table-1 Rs.1,00,000=00 @8.50% ( Fixed ) 180 months 240 months Table-2 Rs.1,60,000=00 @8.50% (Fixed ) 180 months 240 months
Subsidy per borrower Rs. 45,443=00 Rs.63,693=00 Rs. 45,443=00 Rs.63,693=00 NPV of Subsidy EMI Rs.29,112=00 Rs. 698=00 Rs.35,458=00 Rs.29,112=00 Rs. 560=00 Rs.1,289=00 Rs.35,458=00 Rs.1,081=00
34
Security: a) Primary- Mortgage of the dwelling house b) Collateral/Third Party Guarantee: NIL Documents: Loan Application form duly vetted by urban local bodies along with the following;

Income certificate issued from the ULB Copy of the land Records Copy of updated payment receipt of Government revenues Non-encumbrance Search Certificate.
Process Note A declaration from the borrower having been understood the impact of Fixed/Floating Rate of Interest. Supervision: It should be ensured that the housing unit is completed within one year period from the start of construction. On a half yearly basis a certificate of utilization of subsidy and also a certificate in relation to the progress of the construction leading up to the completion of the housing unit have to be submitted. Branch will have to submit a certificate on completion of the housing unit. Processing Charges: There will be no processing charges for any loan sanctioned under the scheme. Classification: All loans sanctioned under the scheme will be classified as Priority Sector Advance under Sub category Housing
35 Siddharth Tripathi PGFA 1147
LOAN INTEREST RATES: A Interest rate Structure consequent upon revision of BASE RATE to 10.75% p.a. with monthly rest effective from 01.08.2011 Rate of Interest as per BASE RATE System Spread Particulars of Base Rate w.e.f. 01.08.2011 A Interest Rate Structure for Priority Sector (Secured) Advances: 1 DRI Advances 2 Agricultural Advances a) Total Funded Exposure up to Rs. 50,000 b) Total Funded Exposure more than Rs 50,000 and up to Rs 2 lacs c) Total Funded Exposure more than Rs 2 lacs and up to Rs 5 lacs d) Crop loans up to Rs.3 lacs where Govt. subsidy is 1.75% 2.25% 12.50% 13.00% 4.00% 10.75% Effective Rate
3.25%
14.00% 8.50%
36
available. $
e) Total Funded Exposure more than Rs 5 lacs but up to Rs 25 lacs Facilities having Maturity of less than 3 years Facilities having Maturity of 3 years or more f) Total Funded Exposure more than Rs 25 lacs Facilities having Maturity of less than 3 years Facilities having Maturity of 3 years or more As per Credit rating 3.80% 4.30% 14.55% 15.05%
Interest Rates For Advances to Micro, Small & Medium Enterprises Sector. Range of Loans & Advances (Total Funded Exposure) Base Rate Upto Rs. 5 lacs Above Rs5 lacs and up to Rs25 lacs Above Rs.25 lacs and upto Rs.1 Cr. Above Rs.1 Cr. as per Credit Rating 10.75% 1.00% 3.00% 11.75% 13.75% Spread over Base Rate Final lending Rate
3.50%
14.25%
>Rs.1 Cr. & upto Rs.5 Cr.
>Rs5 Cr. & upto Rs.10 Cr.
37
Spread Rating over Base Rate Base Rate A++ A+ A B+ B BC 10.75% 3.50% 3.60% 3.75% 3.90% 4.00% 4.50% 5.50%
Final lending Rate
Spread over Base Rate 10.75%
Final lending Rate
14.25% 14.35% 14.50% 14.65% 14.75% 15.25% 16.25%
4.50% 4.60% 4.75% 4.90% 5.00% 5.50% 6.50%
15.25% 15.35% 15.50% 15.65% 15.75% 16.25% 17.25%
Above Rs.10 Cr. As per Credit Rating /Tenor for General Advances 1. Concessions in Rate of Interest , under Special Package for the exposure to Micro, Small & Medium Enterprises shall no longer be applicable. 2. Branches to ensure before applying the above rates of interest that the borrowers meet the ligibility criteria meant for Micro, Small and Medium Enterprises.
All other Priority Sector Advances a) Total Funded Exposure up to Rs. 50,000 b) Total Funded Exposure more than Rs 50,000 and up 1.75% 2.25% 12.50% 13.00%
38
to Rs 2 lacs c) Total Funded Exposure more than Rs 2 lacs and up to Rs 5 lacs d) Total Funded Exposure more than Rs 5 lacs but upto Rs 25 lacs Facilities having Maturity of less than 3 years Facilities having Maturity of 3 years or more e) Total Funded Exposure more than Rs 25 lacs Facilities having Maturity of less than 3 years Facilities having Maturity of 3 years or more Notes: 1. Total funded exposure means total of all fund based facilities allowed to a borrower. 2. Where total exposure is above Rs 25 lacs, applicable interest rate should be based on credit rating of the account and interest rate structure as per credit rating schedule would apply except in case of MSE sector where it is above Rs. 1 crore. 3. Maturity period for Cash Credit and working capital demand loan may be taken as one year. 4. The rate of interest mentioned above would be applicable for all priority sector accounts. Rates advised in different schemes circulated earlier would stand superceded with immediate effect. 5. The above rates should be applied with monthly rest excepting in case of DRI and agriculture advances where the above rates may be applied with half yearly rest. Crop loans, unless overdue / restructured, will carry simple rate of interest. The interest rates would be applied with annual rests in case of following agricultural advances:
o
3.80%
14.55%
4.00% 4.50%
14.75% 15.25%
As per Credit rating As per Credit rating
Cultivation of Sugarcane, Banana and Papaya
39
o o
Development of Horticulture & Plantations Crops Tank Fishery (Raring)
6. Credit rating of all accounts, under the category of MSE, with aggregate FB & NFB exposure of Rs. 25 lacs and above shall be carried out as per present practice. However, rate of interest shall be applicable as per the above interest rate structure. 7. MSE sector includes i) Laghu Udyami Credit Card, ii) Artisan Credit Card, iii) Prime Minister Employment Generation Programme (PMEGP), iv) Collateral free loans under Credit Guarantee Trust Fund for Micro and Small Enterprises (CGTMSE), v) Loans under Technology Upgradation Fund Scheme for Textile Units (TUFS), vi) Swarozgar Credit Card Scheme, vii) UCO Shilpa Udyog, viii) UCO Vishwakarma Yojna, ix) UCO Mahila Shilpa Udyog Scheme, x) Composite Loan Scheme to MSE Units, xi) Scheme for financing Handloom Weavers Group (HWGs), xii) Loans under credit linked capital subsidy scheme for technology upgradation, xiii) UCO Channel Scheme, xiv) Scheme for fod processing industry. Rate of Interest as per BASE RATE System Particulars Spread of Base Rate 10.75% B Educational Loans Upto Rs 4 lacs More than Rs.4 lacs Students satisfying DRI norms - Any Amount Students satisfying 60% handicap criteria 3.00% 3.75% 13.75% 14.50% 4.00% 4.00% Effective Rate
40
- Any Amount C Interest Rate Structure for Special Category (Secured) Advances: a) Non Priority Sector Personal Loans Facilities having Maturity of less than 3 years Facilities having Maturity of 3 years or more b) Loans to individuals against Shares Facilities having Maturity of less than 3 years Facilities having Maturity of 3 years or more c) Margin Trading Finance Facilities having Maturity of less than 3 years Facilities having Maturity of 3 years or more d) Film Finance Facilities having Maturity of less than 3 years Facilities having Maturity of 3 years or more 8.40% 19.15% 7.50% 18.25% 4.50% 15.25% 7.50% 18.25%
8.00%
18.75%
5.00%
15.75%
8.00%
18.75%
8.90%
19.65%
41
e) Film Finance With 75% or more Liquid Securities Facilities having Maturity of less than 3 years Facilities having Maturity of 3 years or more Loans to Landlords of Bank Premises Upto Rs.2 lac Above Rs.2 lac upto and inclusive of Rs.5 lac Above Rs.5 lac upto and inclusive of Rs.10 lac Above Rs.10 lac Finance granted to intermediary agencies (*) For on-lending to ultimate beneficiaries and agencies (as indicated below excluding those of housing) providing input support. Finance granted to housing finance intermediary agencies for on- lending to ultimate beneficiaries. Loans under refinance schemes of term Interest to be charged as per 4.50% 15.25% 4.50% 15.25% 5.50% 5.90% 16.25% 16.65% 7.40% 18.15%
7.90%
18.65%
6.40% 6.80%
17.15% 17.55%
42
lending institutions
stipulations of the Refinancing Agencies
Note: Interest rate on refinance for "Self- Help Groups" may be fixed on the basis of per capita size of the loan. They will not receive any additional interest rate reduction. (*) List of Intermediary Agencies 1 State sponsored organizations for on-lending to weaker Sections. Weaker sections include: i. Small & marginal farmers with landholdings of 5 acres or less, landless labourers, tenant farmers and share croppers.
ii.
Artisans, village and cottage industries where individual credit requirements do not exceed Rs 25,000.
iii.
Small and marginal farmers, sharecroppers, agriculture and nonagriculture labourers, rural artisans and families living below the poverty lines are the beneficiaries. The family income should not exceed Rs 11,000 per annum.
iv.
Scheduled castes and scheduled tribes.
v.
Beneficiaries are persons whose family income from all sources does not exceed Rs 7,200 per annum in urban or semi-urban areas or Rs 6,400 per annum in rural areas. They should not own any land or the
43
size of their holdings does not exceed one
vi.
Beneficiaries under scheme of liberation and rehabilitation of scavengers (SLRs).
vii.
Advances granted to Self- Help Groups (SHGs) for reaching the rural poor.
2 3
Distribution of agricultural inputs/implements. State Financial Corporations (SFCs) / State Industrial Development Corporations (SIDCs) to the extent they provide credit to weaker sections.
4 5 6 7 8 9
National Small Industries Corporations (NSIC). Khadi and Village Industries Commission (KVIC). Agencies involved in assisting the decentralized sector. State sponsored organizations for on-lending to weaker sections. Housing and Urban Development Corporation Ltd (HUDCO). Housing Finance Companies approved by National Housing Bank (NHB) for refinance.
10 State sponsored organizations for SCs / STs (for purchase and supply of inputs to and / or marketing output of the beneficiaries of these organizations). 11 Micro-Finance Institutions, Non-Government Organizations (NGOs) onlending to SHGs. Rate of Interest as
44
per BASE RATE System Spread Particulars of Base Rate 10.75% D i) Interest Rate Structure for General (Secured) Advances: Total Funded Exposure upto Rs. 2 lacs Facilities having maturity of less than 3 years Facility having Maturity of 3 years or more Total Funded Exposure more than 2 lacs to Rs. 25 lacs Other than NBFCs Total Funded Exposure Facilities having Maturity of less than 3 years Facilities having Maturity of 3 years or more NBFCs Facilities having Maturity of less than 3 years Facilities having Maturity of 3 years or more iii) Total Funded Exposure more than Rs 25 lacs 6.50% 7.00% 17.25% 17.75% 6.00% 6.50% 16.75% 17.25% 4.50% 5.00% 15.25% 15.75% Effective Rate
ii)
45
Facilities having Maturity of less than 3 years
As per Rating and Tenor As per Rating and Tenor
Facilities having Maturity of 3 years or more
Total Funded Exposure more than Rs 25 lacs (Facilities having maturity less than 3) CREDIT RATING * A++ A+ A B+ B BC 4.40% 4.90% 5.80% 6.30% 7.30% 7.80% 8.00% 15.15% 15.65% 16.55% 17.05% 18.05% 18.55% 18.75%
Total Funded Exposure more than Rs 25 lacs (Facilities having maturity of 3 years or more) CREDIT RATING* A++ A+ A B+ 4.90% 5.40% 6.30% 6.80% 15.65% 16.15% 17.05% 17.55%
46
B BC Note:
7.80% 8.30% 8.50%
18.55% 19.05% 19.25%
In respect of accounts with total funded exposure of Rs 25 lacs and above Interest Rate is to be based on credit rating assessed in terms of Banks extant directives. Rate of Interest on Working Capital Demand Loan (WCDL) will be the same as that of the respective Cash Credit rate. Rate of Interest as per BASE RATE System Spread Particulars of Base Rate 10.75% E Mid Market and other Schemes 1 2 UCO Shopper / Shopper Tie up UCO Car a) New Car - General Category b) Used Car - General Category c) New Car - Full collateral / Salary Tie up / Doctor / 3.00% 4.00% 2.50% 13.75% 14.75% 13.25% 5.40% 16.15% Effective Rate
47
Medical Practioner d) Used Car - Full collateral / Salary Tie up / Doctor / Medical Practioner 3 UCO Cash UCO Cash Women 4 5 6 7 8 9 UCO Mortgage UCO Pensioner UCO Rent UCO Trader UCO Securities UCO Doctor a) General Category b) 100% or more collateral 3.60% 3.10% 14.35% 13.85% 3.50% 14.25%
5.40% 4.40% 6.30% 4.20% 5.40% 3.75% 3.10%
16.15% 15.15% 17.05% 14.95% 16.15% 14.50% 13.85%
Rate of Interest as per BASE RATE System Spread Particulars of Base Rate 10.75% Effective Rate
48
10 UCO 2-Wheeler a) General Category b) Full Liquid Collateral c) 50% Liquid Collateral 11 UCO Swabhiman 12 UCO Earnest Money 13 Commercial Real Estate 14 UCO Real Estate 15 Commercial Vehicle Finance Scheme Upto Rs. 5 lacs Above Rs.5 lacs and upto Rs.25 lacs Scheme for financing marble and other stone processing units in the state of Rajasthan F Interest Rate Structure: For HOME LOAN (earlier UCO Shelter) 1) Floating rate loans a) Floating rate loans (upto & inclusive of Rs.20 lacs) Upto & inclusive of 5 years 1.30% 3.10% 12.05% 13.85% 4.25% 3.25% 3.75% 2.50% 1.30% 5.90% 5.90% 15.00% 14.00% 14.50% 13.25% 12.05% 16.65% 16.65%
49
Margin 25% or more Margin less than 25% Above 5 years but upto 10 years Margin 25% or more Margin less than 25% Above 10 years but upto 15 years Margin 25% or more Margin less than 25% Above 15 years but upto 20 years Margin 25% or more Margin less than 25% Above 20 years but upto 25 years Margin 25% or more Margin less than 25% b) Floating rate loans (Above Rs.20 lacs but upto & inclusive of Rs.30 lacs) Upto & inclusive of 5 years Margin 25% or more Margin less than 25%
0.50% 1.00%
11.25% 11.75%
0.75% 1.25%
11.50% 12.00%
1.00% 1.50%
11.75% 12.25%
1.00% 1.50%
11.75% 12.25%
1.75% 2.00%
12.50% 12.75%
0.75% 1.25%
11.50% 12.00%
50
Above 5 years but upto 10 years Margin 25% or more Margin less than 25% Above 10 years but upto 15 years Margin 25% or more Margin less than 25% Above 15 years but upto 20 years Margin 25% or more Margin less than 25% Above 20 years but upto 25 years Margin 25% or more Margin less than 25% c) Floating rate loans (Above Rs.30 lacs but upto & inclusive of Rs.50 lacs) Upto & inclusive of 5 years Margin 25% or more Margin less than 25% Above 5 years but upto 10 years Margin 25% or more 1.50% 12.25% 1.25% 1.75% 12.00% 12.50% 1.75% 2.25% 12.50% 13.00% 1.50% 2.00% 12.25% 12.75% 1.25% 1.75% 12.00% 12.50% 1.00% 1.50% 11.75% 12.25%
51
Margin less than 25% Above 10 years but upto 15 years Margin 25% or more Margin less than 25% Above 15 years but upto 20 years Margin 25% or more Margin less than 25% Above 20 years but upto 25 years Margin 25% or more Margin less than 25%
2.00%
12.75%
1.75% 2.25%
12.50% 13.00%
2.00% 2.50%
12.75% 13.25%
2.00% 2.50%
12.75% 13.25%
d) Floating rate loans (Above Rs.50 lacs) Upto & inclusive of 5 years Margin 25% or more Margin less than 25% Above 5 years but upto 10 years Margin 25% or more Margin less than 25% Above 10 years but upto 15 years 1.75% 2.25% 12.50% 13.00% 1.50% 2.00% 12.25% 12.75%
52
Margin 25% or more Margin less than 25% Above 15 years but upto 20 years Margin 25% or more Margin less than 25% Above 20 years but upto 25 years Margin 25% or more Margin less than 25% UCO HOME LOAN SCHEME Period Up to Rs.30 lac Spread Over Base Rate Up to 5 years Above 5 years and up to 15 years above 15 years and 1.50% 12.25% 1.75% 12.50% 1.00% 11.75% 1.25% 12.00% 0.50% More than Rs.30 lac but less than Rs.75 lac Spread Over Base Rate 0.75% Final Lending Rate
2.00% 2.50%
12.75% 13.25%
2.00% 2.50%
12.75% 13.25%
2.00% 2.75%
12.75% 13.50%
Rs. 75 lac and above Spread Over Base Rate 1.00% Final Lending Rate
Final Lending Rate
11.25%
11.50%
11.75%
1.50%
12.25%
2.00%
12.75%
53
up to 25 years Incase of Special/Specific scheme under midmarket segment/Retail Banking, which have specific validity period, the applicable rate of interest will be as guided by Head Office, Retail Department circular in this regard taking current Base Rate. G Loan against Banks Own Term Deposits 2% above deposit ROI BR or 2.00% Loans against Third Party FDRs upto and inclusive of Rs.2 lac above deposit ROI whichever is higher BR+2.00% or Loans against Third Party FDRs above Rs.2 lacs 2.50% above deposit ROI whichever is higher Rate of Interest as per BASE RATE System Spread Particulars of Base Rate Effective Rate
Loans against own Term Deposits
54
10.75% H Discounting of Bills under Letters of Credit LC Bills Discounting Rate (*)with usance period of Up to 3 months Beyond 3 months & up to 6 months 1.75% 2.00% 12.50% 12.75%
Unsecured Loans and Advances and any Other Loans and Advances not specified above Unsecured Loans and Advances Facilities having Maturity of less than 3 years Facilities having Maturity of 3 years or more I Any Other Loans and Advances not Specified above Facilities having Maturity of less than 3 years Facilities having Maturity of 3 years or more B Total Funded Exposure more than Rs 25 lacs (Facilities having maturity less than 3) Spread of CREDIT RATING * Base Rate 10.75% Effective Rate 8.40% 8.90% 19.15% 19.65% 8.40% 8.90% 19.15% 19.65%
55
A++ A+ A B+ B BC
3.00% 3.50% 4.00% 4.75% 5.00% 5.50% 6.00%
13.75% 14.25% 14.75% 15.50% 15.75% 16.25% 16.75%
Total Funded Exposure more than Rs 25 lacs (Facilities having maturity of 3 years or more) CREDIT RATING* A++ A+ A B+ B BC 3.50% 4.00% 4.50% 5.25% 5.50% 6.00% 6.50% 14.25% 14.75% 15.25% 16.00% 16.25% 16.75% 17.25%
Unsecured Loans and Advances and any Other Loans and Advances not specified in item A Unsecured Loans and Advances
56
Facilities having Maturity of less than 3 years Facilities having Maturity of 3 years or more Any Other Loans and Advances not Specified above Facilities having Maturity of less than 3 years Facilities having Maturity of 3 years or more
6.50% 7.00%
17.25% 17.75%
6.50% 7.00%
17.25% 17.75%
57
Product Process Flow for Housing Finance

Enquiry
Application with processing fee submission
Credit Appraisal
Checking with
Interview
Verification with employer
Recommendation to the Sanctioning Authority
Sanction by committee
Defer Approval Reject Letter to Guarantor Applicants
Acceptance Letter with Administrative fees
Legal title Documents review
Signing loan disbursement documents
EMI repayment 58
Prepayment Penalty Charge
Table: PROCESS Step 1 A person applies for a home loan. The executive meets the applicant and briefs him the entire loan process, requirements and the various options available. The applicant chooses a Housing Finance Company (HFC) and hands over the income documents to the executive. The income documents are handed over to the HFC for eligibility and approval. The HFC verifies the documents and checks the repaying capacity, Step 5 saving habits, tenure of service, etc. of the applicant and approves the loan amount. After approval, an offer letter is given to the applicant by the HFC, Step 6 along with a list of original property title documents that have to be handed over to the HFC. Step 7 The applicant gives the original property title documents to the HFC. The HFC scrutinises the legal and technical aspects of the original title documents. If the HFC is satisfied as to the legal & technical aspects of the documents then the applicant is called to sign the loan agreement. The loan disbursement schedule is decided by the HFC according to the Step 10 stage of construction (if property under construction)or a one time payment is made if property is ready for possession The applicant gets possession of the property depending upon the level of completion of the property. The applicant starts paying the EMIs.
Step 2
Step 3
Step 4
Step 8
Step 9
Step 11
Step 12
59
HOME LOAN: comparison of UCO SHELTER from HDFC HOME LOAN, ICICI HOME LOAN. LICHFL AND SYNDICATE HOME LOAN
Home loan :
Home is more or less a lifetime investment and hence home loans are an integral part of every person who dreams and wants to have a living space of his own. A once in a lifetime investment needs a loan and that is how a home loan comes into the scheme of things in your life. . UCO SHELTER: Rate of Interest as per BASE RATE System Spread Particulars of Base Rate 10.75% F Interest Rate Structure: For HOME LOAN (earlier UCO Shelter) 1) Floating rate loans a) Floating rate loans (upto & inclusive of Rs.20 lacs) Effective Rate
60
Upto & inclusive of 5 years Margin 25% or more Margin less than 25% Above 5 years but upto 10 years Margin 25% or more Margin less than 25% Above 10 years but upto 15 years Margin 25% or more Margin less than 25% Above 15 years but upto 20 years Margin 25% or more Margin less than 25% Above 20 years but upto 25 years Margin 25% or more Margin less than 25% b) Floating rate loans (Above Rs.20 lacs but upto & inclusive of Rs.30 lacs) Upto & inclusive of 5 years Margin 25% or more 0.75% 11.50% 1.75% 2.00% 12.50% 12.75% 1.00% 1.50% 11.75% 12.25% 1.00% 1.50% 11.75% 12.25% 0.75% 1.25% 11.50% 12.00% 0.50% 1.00% 11.25% 11.75%
61
Margin less than 25% Above 5 years but upto 10 years Margin 25% or more Margin less than 25% Above 10 years but upto 15 years Margin 25% or more Margin less than 25% Above 15 years but upto 20 years Margin 25% or more Margin less than 25% Above 20 years but upto 25 years Margin 25% or more Margin less than 25% c) Floating rate loans (Above Rs.30 lacs but upto & inclusive of Rs.50 lacs) Upto & inclusive of 5 years Margin 25% or more Margin less than 25% Above 5 years but upto 10 years
1.25%
12.00%
1.00% 1.50%
11.75% 12.25%
1.25% 1.75%
12.00% 12.50%
1.50% 2.00%
12.25% 12.75%
1.75% 2.25%
12.50% 13.00%
1.25% 1.75%
12.00% 12.50%
62
Margin 25% or more Margin less than 25% Above 10 years but upto 15 years Margin 25% or more Margin less than 25% Above 15 years but upto 20 years Margin 25% or more Margin less than 25% Above 20 years but upto 25 years Margin 25% or more Margin less than 25%
1.50% 2.00%
12.25% 12.75%
1.75% 2.25%
12.50% 13.00%
2.00% 2.50%
12.75% 13.25%
2.00% 2.50%
12.75% 13.25%
d) Floating rate loans (Above Rs.50 lacs) Upto & inclusive of 5 years Margin 25% or more Margin less than 25% Above 5 years but upto 10 years Margin 25% or more Margin less than 25% 1.75% 2.25% 12.50% 13.00% 1.50% 2.00% 12.25% 12.75%
63
Above 10 years but upto 15 years Margin 25% or more Margin less than 25% Above 15 years but upto 20 years Margin 25% or more Margin less than 25% Above 20 years but upto 25 years Margin 25% or more Margin less than 25%
UCO HOME LOAN SCHEME
Period Up to Rs.30 lac More than Rs.30 lac but less than Rs.75 lac Rs. 75 lac and above
2.00% 2.50%
12.75% 13.25%
2.00% 2.50%
12.75% 13.25%
2.00% 2.75%
12.75% 13.50%
Spread Over Base Rate Up to 5 years Above 5 years and up to 15 years above 15 years and upto 25yrs 1.50% 1.00%
Final Lending Rate
Spread Over Base Rate
Final Lending Rate
Spread Over Base Rate
Final Lending Rate
0.50%
11.25%
0.75%
11.50%
1.00%
11.75%
11.75%
1.25%
12.00%
1.50%
12.25%
12.25%
1.75%
12.50%
2.00%
12.75%
64
HDFC HOME LOAN COMPANY PROFILE HDFC BANK:The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an in principle approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBIs liberalization of the Indian Banking Industry. It was incorporated in August 1994 in the name of HDFC Bank Limited, with its registered office in Mumbai. HDFC began operations as a Scheduled Commercial Bank in January 1995. Loans: HDFC Bank brings a wide range of loans to cater financial needs. The bank offers the following loans Personal Loans Consumer Loans Auto Loans Loans against shares Loans against RBI Bonds Loans against Insurance policy E-instant loans-gives the facility of loan approval in 60 seconds on the internet.
65
HOME LOAN SCHEMES PURPOSE HDFC Ltd. offers loans for the following purposes: Land Purchase Home Construction/Purchase Home Extension Home Improvement loans Short-term Bridge Loans Non-Residential Premises Loans For Professionals
LOAN AMOUNT: Loans can be availed up to a maximum of 85% of the cost of the property (including the cost of the land). HDFC lends up to a maximum of Rs. 1, 00, 00,000 on a Home Loan to an individual. LOAN TENURE: One can repay the loan over a maximum period of 20 years. RATE OF INTEREST: Interest is calculated on annual rests. Principal repayments are credited at the end of HDFC's financial year. The effective rate of interest varies depending on the term of the loan. For a loan with a term of 15 years, the effective interest rate would be higher by 0.37% per annum than the indicated rate of interest. SECURITY: Typically the security for the loan is a first mortgage of the property to be financed, normally by way of deposit of title deeds and/or such other collateral security as may be necessary. Interim security may be additionally required, if the property is under construction. Collateral or interim security could be assignment to HDFC of life insurance policies, the surrender value of
66
which is at least equal to the loan amount, guarantees from sound and solvent guarantors, pledge of shares and such other investments that are acceptable to HDFC. The title to the property should be clear, marketable and free from encumbrance. To elaborate, there should not be any existing mortgage, loan or litigation which is likely to affect the title to the property adversely. Interim security may be additionally required, if the property is under construction. Collateral or interim security could be assignment to HDFC of life insurance policies, the surrender value of which is at least equal to the loan amount, guarantees from sound and solvent guarantors, pledge of shares and such other investments that are acceptable to HDFC. DOCUMENTATION Following documents should be produced for approval of loan: a) Common for all applicants: 1. Allotment letter of the co-operative society / association of apartment owners. 2. Copy of approved drawings of proposed construction / purchase. 3. Agreement for sale/sale deed/detailed cost estimate from architect/engineer for the property to be purchased / constructed. 4. If you have been in your present employment / business or profession for less than a year, mention details of occupation for previous 5 years, giving position held, reasons for change and period of the same. 5. Applicable Processing Fees. 6. Any other information regarding your repayment capacity that is necessary and will assist HDFC in appraising the case.
67
b) Additionally, If borrower is employed: 1. Latest salary slip/salary certificate showing all deductions. 2. If your job is transferable, permanent address where correspondence relating to the application can be mailed. 3. A letter from your employer agreeing to deduct the monthly installment towards repayment of the loan from your salary. This will expedite the processing of your loan application. If borrower is Self-Employed: 1. Balance Sheets and Profit & Loss Accounts of the business/profession along with copies of Individual Income Tax Returns for the last three years certified by a Chartered Accountant. 2. A note giving information on the nature business/profession, form of organization, clients, suppliers, etc. ELIGIBILITY The repayment capacity as determined by HDFC will help in deciding how much one can borrow (the cost of the property or Rs. 1 crore, whichever is lower). Repayment capacity takes into consideration factors such as income, age, qualifications, number of dependants, spouse's income, assets, liabilities, stability and continuity of occupation and savings history. HDFC's main concern is to make sure customer can comfortably repay the amount they borrow TAX BENEFIT Resident Indians are eligible for certain tax benefits on principal and interest components of a loan under the Income Tax Act, 1961. Interest repayment of Rs. 1, 00,000 p.a. (for a loan on or after April 1, 2000) can get borrower a tax saving up to approximately Rs. 33,000 p.a. Moreover, customer can get added tax benefits under Sec 88 on repayment of principal amount up to Rs. 20,000 p.a. which can further reduce borrowers tax liability by Rs. 2,000 p.a.
68
ABOUT THE PRODUCT HDFC's Home Loans offers you various unique benefits and are easy to arrange and repayable in easy monthly installments. The terms of the loan can be structured according to customer unique requirements. Home Loans can be applied for by either individually or jointly. Proposed owners of the property, in respect of which the loan is being sought, will have to be co-applicants. However, the co-applicants need not be co-owners. Loans can be availed upto a maximum of 85% of the cost of the property (including the cost of the land). HDFC lends upto a maximum of Rs. 1, 00, 00,000 on a Home Loan to an individual. One can repay the loan over a maximum period of 20 years. They determine the loan amount after evaluating the repayment capacity of the individual. HDFC's main concern is to help individuals comfortably repay the borrowed amount. RATE OF INTEREST Adjustable rate of Interest: The interest rate on your ARHL is linked to HDFC's Retail Prime Lending Rate (RPLR). The rate of interest is revised every three months from the date of first disbursement, if there is a change in RPLR. However, the EMI on the ARHL will not change. For instance, if the interest rate increases, the interest component in EMI will increase; the principal component would reduce, resulting in an extension of the term of the loan and vice-versa when the interest rate decreases. customer will be provided with an annual statement indicating the details of the interest and principal payments made during the year.
69
Annual Rest Option Term of Loan (No. of Years) 1 20 Monthly Rest Option Term of Loan (No. of Years) Upto 6 11 20 Rate Per Annum (%p.a) 5 9.00 10 9.25 9.75 Rate Per Annum (%p.a) 8.00
Rate of interest under ARHL is linked to HDFC's RPLR (Retail Prime Lending Rate) which currently is 8.00% per annum. customer repay the loan in EMIs comprising principal and interest. Pending final disbursement, you pay interest on the portion of the loan disbursed. This interest is called pre-EMI interest. EMI per Rs.1,00,000 for Annual Rest Option Term of loan (No. of years) 20 EMI per Rs.1,00,000 for Monthly Rest Option Term of loan (No. of years) 5 10 20 Rupees 2,076 1,281 949 Rupees 979
70
There is no early redemption charge on repayment of a loan ahead of schedule. Fixed rate of interest The current applicable fixed rate of interest in respect of the total loan approved is are as follows: Annual Rest Option Term of Loan (No. of Years) Upto 6 11 20 Monthly Rest Option Term of Loan (No. of Years) Upto 6 11 20 Rate Per Annum (%p.a) 5 9.25 10 9.50 9.75 Rate Per Annum (%p.a) 5 9.25 10 9.25 9.75
Pending final disbursement, customer pay interest on the portion of the loan disbursed. This interest is called pre-EMI interest. An early redemption charge of 2% of the amount being prepaid is payable on repayment of a loan ahead of schedule.
71
ICICI
BANK
ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry. The principal objective was to create a development financial institution for providing medium-term and long-term project financing to Indian businesses. In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE. After consideration of various corporate structuring alternatives in the context of the emerging competitive scenario in the Indian banking industry, and the move towards universal banking, the managements of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI Bank would be the optimal strategic alternative for both entities, and would create the optimal legal structure for the ICICI group's universal banking strategy. The merger would enhance value for ICICI shareholders through the merged entity's access to low-cost deposits, greater opportunities for earning fee-based income and the ability to participate in the payments system and provide transaction-banking services. The merger would enhance value for ICICI Bank shareholders through a large capital base and scale of operations, seamless access to ICICI's strong corporate relationships built up over five decades, entry into new business segments, higher market share in various business segments, particularly fee-based services, and access to
72
the vast talent pool of ICICI and its subsidiaries. In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at Ahmadabad in March 2002, and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002. Consequent to the merger, the ICICI group's financing and banking operations, both wholesale and retail, have been integrated in a single entity.
ICICI Home Loan offers following types of loans Home loans Office premise loans Loan against property Loan for NRIs Balance transfer Land loans
Loan against Property

Get a loan upto Rs.3 crore Payable in easy monthly installments over a period of 15 years or less Available against Residential as well as Commercial properties Also available is overdraft against your property
73
Adjustable Rate Loans Rate of interest charged on Residential property: 9.75% p.a.
Rate of Interest charged on Commercial Property: 10.25% p.a. EMI Table on Loan against Property (adjustable rate) Table: 1 Loan Tenure Residential EMI / lakh (Rs.) 5 years 10 years 15 years Fixed Rate Loans Rate of interest charged on Residential property: 10.5% p.a. 2113 1308 1060 Commercial EMI / lakh (Rs.) 2138 1336 1090
Rate of Interest charged on Commercial Property: 11% p.a. Table: 2 Commercial EMI / lakh (Rs.)t Loan Tenure Residential EMI / lakh (Rs.)
Property (fixed rate) 2175 1378 1137 Processing fee: Nil. 5 years 10 years 15 years 2150 1350 1106
74
Admin fee: 1% of loan amount (plus applicable service tax).
OFFICE PREMISES LOAN Table: 3 EMI Table for Office Premises Loans Adjustable Rate Rate Interest 10.25% 10.25% 10.25% Fixed Rate of EMI / lakh (Rs.) 2175 1378 1137 (plus applicable service tax)
Loan Tenure
of EMI / lakh Rate (Rs.) 2138 1336 1090 of loan Interest 11% 11% 11% amount
5 years 10 years 15 years
Processing
fee:
0.5%
Admin fee: 0.5% of loan amount plus the Office Premises Loans repayment is by Equated Monthly Installments (EMIs) comprising of interest and principal amount calculated on monthly rest.
ELIGIBILITY TERMS FOR ICICI BANK LOANS FOR RESIDENT INDIANS

Due to varied offering of house loans and home finance, attractive loan interest and numerous other facilities besides a basic home loan, you would be sure that ICICI Bank Home Loan provides the perfect home loan for you. The eligibility norms for availing of home loans are easy and simple to follow. They have different norms for the different types of property loans available to you. These eligibility norms for home loans are applicable to all Resident Indians looking to avail of their home loans..
75
LOAN AMOUNT
The home loan amount depends on your repayment capability and is restricted to a maximum of 85% of the cost of property or the cost of construction as applicable.
Description Of Charges Loan processing charges/Renewal charges Home Loans Home Loans: 0.5% of loan amount as Administrative fee or Rs.2,000 whichever is higher. Loan overdraft against property or office premises: 1% of loan amount or Rs.2,000 whichever is higher. Fees are Non-refundable. Prepayment Charges Charges For Late Payment(loans) 2% on the principal outstanding on full prepayment Home Loans: 2% per month. Home OD: 1.5% of the outstanding amount subject to minimum of Rs.500 and maximum of Rs.5,000. Interest Rate Swiping Charges Cheque swap Charges Document retrieval charges Cheque Bounce Charges 1.75% on principal outstanding Rs.500 Rs.500 Rs.200
DOCUMENTS REQUIRED FOR HOME LOAN SANCTION

ICICI Bank, the leading Home Loans Provider, offers attractive interest rates and unbeatable benefits to ensure that you get the best deal without any hassles. Keeping your convenience in consideration, they ask you for minimal mandatory documents for the sanctioning of your home loan. At ICICI Bank Home Loans they require the following documents to sanction your home loan:
76
DOCUMENTS
Bank statement for the last six months. Income Document e.g. Latest Form 16, Certified IT returns for latest 3 years. Administration Fee Cheque. Loan Enclosure Letter. Other Documents.
For Individual borrowers: Photo Id Proof Residence Address Proof
For Non Individual borrowers:
Id Proof Office Address Proof
77
SYNDICATE BANK:
BRIEF HISTORY
Syndicate Bank was established in 1925 in Udupi, the abode of Lord Krishna in coastal Karnataka with a capital of Rs.8000/- by three visionaries - Sri Upendra Ananth Pai, a businessman, Sri Vaman Kudva, an engineer and Dr.T M A Pai, a physician - who shared a strong commitment to social welfare. Their objective was primarily to extend financial assistance to the local weavers who were crippled by a crisis in the handloom industry through mobilising small savings from the community. The bank collected as low as 2 annas daily at the doorsteps of the depositors through its Agents under its Pigmy Deposit Scheme started in 1928. This scheme is the Bank's brand equity today and the Bank collects around Rs. 2 crore per day under the scheme. The progress of Syndicate Bank has been synonymous with the phase of progressive banking in India. Spanning over 80 years of pioneering expertise, the Bank has created for itself a solid customer base comprising customers of two or three generations. Being firmly rooted in rural India and understanding the grassroot realities, the Bank's perception had vision of future India. It has been propagating innovations in Banking and also has been receptive to new ideas, without however getting uprooted from its distinctive socio-economic and cultural ethos. Its philosophy of growth by mutual sustenance of both the Bank and the people has paid rich dividends. The Bank has been operating as a catalyst of development across the country with particular reference to the common man at the individual level and in rural/semi urban centres at the area level.
78
The Bank is well equipped to meet the challenges of the 21st century in the areas of information technology, knowledge and competition. A comprehensive IT plan is being put in place and the skills and knowledge of the Bank's personnel are being upgraded through a variety of training programmes to promote customer delight in every sphere of its activity. The Bank has launched an ambitious technology plan called Centralised Banking Solution (CBS) whereby 500 of our strategic branches with their ATMs are being networked nationwide over a 4 year period. The Bank is pioneer among Public Sector Banks on launching CBS. Our bank has already achieved CBS implementation among all its branches. Thus, the bank is 100% CBS enabled. Loan products The Bank is meeting varied personal credit requirements of different classes of people through the following loan schemes under personal banking. Retail Loan Products Agricultural Loan Products Other Priority Sector Loan Products Retail Loan Products :The Bank is meeting varied personal credit requirements of different classes of people through the following loan schemes under personal banking.

SyndSaral SyndSenior SyndRent SyndVahan SyndSwarna/SyndSwarnaExpress
79
SyndPigmy SyndNivas SyndNivas Plus SyndVidya Synd supervidya Central Scheme to provide Interest Subsidy for the period of moratorium on Educational Loans taken by students from economically weaker sections from scheduled banks under the Model Education Loan Scheme of IBA.
Solar Water Heating Systems SyndVishranti (Reverse Mortgage Loan Scheme Of Syndicate Bank) Synd Mortgage
SyndNivas - Housing Loan Scheme Details for Product Literature Purpose
For construction/acquisition of a house/flat or for acquiring a site and building a house thereon.
For acquiring a new house or existing house not more than 25 years old. For making extensions/additions to existing house. For NRIs, loan available for acquisition of house for self-occupation on return to India.
80
For acquisition of furniture/fixtures including air conditioners, geysers, fridge, cots, tables, sofas etc which form part of improvements to the home purchased or constructed out of the Housing Loan.
Eligibility
Self-employed/business class having gainful employment in a profession or business for a period of minimum period of 5 years.
Individuals not owning a house/flat at the place of work / business / profession having sufficient and regular income.
NRIs holding Indian passport with adequate repayment capacity. Applicant should be a major and not more than 55 years of age. For salaried class, applicant should have completed 5 years of service and the remaining period of service left shall not be less than 5 years.
Quantum
For Salaried persons : Maximum of 72 months gross salary (including salary of spouse) For Others : Maximum of 6 times average annual income based on Income Tax Assessment Order/IT returns for the past 3 years. Security
First mortgage of the site/house/flat to be constructed/acquired or as advised by the Legal Adviser/Law Officer of the Bank.
Hypothecation of furniture & fixtures.
81
Margin

25% of total project cost for construction/purchase of new flat or house upto 5 years old. 30% for acquiring house which is above 5 years old. 30% of the estimated cost of addition/extension/repairs/renovation.
Processing Charges
Rs.700/- per lac or part thereof with a minimum of Rs.1000/- at present. (Processing charges are subject to change from time to time)
Repayment
For acquiring a house
Equated monthly instalments with maximum repayment period of 25 years including repayment holiday of 18 months where eligible.
In case of salaried persons, repayment period shall not extend beyond superannuation and for others beyond 65 years of age.
For repairs/renovation - Maximum repayment period is 5 to 7 years.
82
Rates of Interest:
(PLR 15.00%)
LOANS LINKED TO BPLR
RATE OF INTEREST Loans 1.Housing loan Floating Category PLRUpto 5 years More than 5 years and upto 10 years More than 10 years upto 20 years More than 20 years to 25 years Fixed Category Upto 5 years More than 5 years and upto 10 years More than 10 years 13.00 13.00 NIL (BASE RATE 10.75%) 13.00 12.00 12.00 12.00 4.00 PLR3.50 PLR3.25 PLR3.00 PLR-2.25 PLR-1.75 PLR-2.50 PLR-2.00 PLR-2.75 PLR-2.25 PLR-3.25 PLR-2.75 Upto `20 lacs Above `20 lacs upto `30 lacs Above `30 lacs
Processing fees
`700/lac with a minimum of `1000/-
1. Housing Loan Scheme under Floating Interest Option (SyndNivas, Farm House Loans and Golden Jubilee Rural Housing Finance)
Amount and tenor Upto `25.00 lacs a) Upto 10 years b) Above 10 years to 20 years Above `25.00 lacs to less than a)Upto 10 years `75.00 lacs
Rate of interest
BR BR+0.25%
BR+1.25%
83
b)Above 10 years to 20 years `75.00 lacs and above a)Upto 10 years b)Above 10 years to 20 years
BR+1.75%
BR+1.50% BR+2.00%
Processing and documentation charges on Housing Loans: The revised rates processing and documentation charges shall be applicable for all fresh housing loans disbursed on or after 08.04.2011.
Loan Amount Upto ` 25.00 lakh Above 25 lakh to `75.00 lakh Above `75.00 lakh
Revised Processing and Documentation Charges ` 2500 (Flat) `10000(Flat) `20000(Flat)
Other terms and conditions :

The above rates are applicable for loans sanctioned/disbursed on or after 17.01.2009 Interest rates are to be compounded monthly Fresh Fixed Rate Housing Loans should be repaid within a period of 10 years Reset Clause : Bank has the option to reset the interest rates on Fresh Fixed Rate Housing Loans sanctioned after anytime after completion of 3 years from the date of availment.
84
Surety
A good third party security acceptable to the Bank. The following important documents are to be submitted along with the application

Proof of income. Original title deeds of the property with Encumbrance Certificate and agreement for sale. Permission for construction with approved plan issued by Competent Authority. Estimation of construction cost, valuation report in case of purchase of ready built house/flat.
Any other documents depending upon the individual case.
85
LIC HOUSING FINANACE

LIC Loans Are Offered For Various Kinds Of Purposes :

Purchase / construction / repair and renovation of both new as well as existing homes Funding for property required for personal or business needs Loan-schemes are also available as per borrower-category: such as professionals for their business needs; corporate employees who are recognized by LIC
Loan-schemes are also available to builders as well as real-estate developers
Types Of LIC Housing Finance Loan Schemes Offered By The Company : Various types of home loan schemes are offered to eligible customers: i) LIC Griha-Prakash : meant for construction of homes, with maximum loan quantum reaching up to Rs.1 crore and minimum equal to Rs.25 lacs ii) LIC Griha-Lakshmi : tenure up to 15 years; and eligible loan quantum range between Rs.1 lac to Rs.1 crore iii) LIC Griha-Shobha : aimed specifically for NRIs for construction of new homes; and applicable loan quantum range between R.25, 000 to Rs.50 lacs iv) LIC Griha-Sudhar : meant to financially assist you in renovation as well as revamp of your home; with term equal to 15 years and maximum amount equivalent to rs.10 lacs. v) LIC Griha-Vikas : is a lic housing finance loan-scheme aimed specifically for your childs education or marriage; purchase of property etc; offered against mortgage of currently owned residential flat etc
86
vi) LIC Sumpurna Griha : is meant for facilitating acquisition of consumer durables by eligible loan-seekers. vii) LIC Jeevan-Samriddhi : aimed at new homes available near Pune Railway Station.

Repayment would be through monthly equated installments. Facility of prepayment is also available on all lic housing finance home loan, with a mere 2% charged on amount that is prepaid
Advantages Of An LIC Housing Finance Home Loan Scheme : lic housing finance loan offers the lowest interest rates in the market; along with several other features such as easy and smooth loan-processing procedure. Several other factors also make lic housing finance home loan highly advantageous for you:

Largest and widest network of offices There are no hidden fees or charges Most of above listed lic housing finance loan schemes are designed such that they are automatically linked to life-insurance products.
Procedure To Apply For LIC Housing Finance Loan Scheme : Customers can visit any office of lic housing finance home loan to avail of loan, by submitting an application. However, following points should be borne in mind and provided for by loanseeker:

Mortgage of a residential property / flat having an equitable value One personal guarantor Tenure of loan may range from 10 years in case of Non-resident Indians to over 25 years
87
Documentation Required For LIC Housing Finance Home Loan Schemes :

Residential proof Identity proof Age proof Bank-statement Income-proof Filled-in and complete application form Undertaking given by employer of salaried individual that EMI would be deducted from monthly salary
Two passport-sized photographs

Current Floating Home Loan Interest Rates of LIC Housing Finance Up to 40 Lacs Scheme I : 10.40% Scheme II : 10.70% (Fixed for 3 yrs), 11.15% (Fixed for 5 yrs) From 40 lacs to 1Cr Scheme I : 10.40% Scheme II : 11.20% (Fixed for 3 yrs) , 11.40% (Fixed for 5 yrs) From 1Cr & above Scheme I : 10.40% Scheme II : 11.70% (Fixed for 3 yrs) , 11.65% (Fixed for 5 yrs)
Loan Schemes
LIC Housing Finance
Salaried
Self employed
AGE Income Loan Amount Offered Tenure Current Experience
18years to 60years Rs.15000 (p.m) NTH
18years to 60years ITR - 2,00,000(p.a)
5,00,000 - 1,00,00000
5,00,000 - 2,00,00000
5 years - 25 years 2 years
5 years - 20 years 3 years
88
Processing Fee
1% of Loan Amount 1) Application form with photograph. 2) Identity & residence proof.
1% of Loan Amount 1) Application form with photograph. 2) Identity & residence proof. 3) Education qualifications certificate & proof of business existence. 4) Business profile, Last 3 years profit/loss & balance sheet. 5) Last 6 months bank statements. 6) Processing fee cheque
Documentation
3) Latest 3 months salary slip. 4) Form 16 5) Last 6 months salaried bank statements 6) Processing fee cheque
Griha Prakash (Home Purchase) Loan Amount Min. Rs. 25,000 - Max.Rs.1,00,00,000.
Loan to Property Cost 85% of total Cost of the property including Stamp Duty and Registration Charges. Loan Term Repayment Mode Upto 20 Years or Retirement Age or 70 years of Age, whichever is earliest. Equated Monthly Installments(EMI) - Monthly Rest Basis 1. Equitable Mortgage of House/Flat
Security
2. One Guarantor. Any existing or new policy under any acceptable plan of insurance (issued by LIC of India) on the lives of the applicants, having risk cover to the extent of loan amount. 1.00% of Loan Sanctioned.
Risk Cover
Front End Charges
Griha Prakash (Home Construction) Loan Amount Loan to Property Cost Loan Term Repayment Mode Min. Rs. 25,000 - Max.Rs.1,00,00,000 85% of total Cost of the property including Stamp Duty and Registration Charges. Upto 20 Years or Retirement Age or 70 years of Age, whichever is earliest. Equated Monthly Installments(EMI) - Monthly Rest Basis 1. Equitable Mortgage of House/Flat
Security
2. One Guarantor.
89
Risk Cover
Any existing or new policy under any acceptable plan of insurance (issued by LIC of India) on the lives of the applicants, having risk cover to the extent of loan amount 1.00% of Loan Sanctioned.
Front End Charges
Griha Prakash (Home Extension) Loan Amount Min. Rs. 25,000 - Max.Rs.1,00,00,000
Loan to Property Cost 85% of total Cost of the property including Stamp Duty and Registration Charges. Loan Term Repayment Mode Upto 20 Years or Retirement Age or 70 years of Age, whichever is earliest. Equated Monthly Installments(EMI) - Monthly Rest Basis 1. Equitable Mortgage of House/Flat
Security
2. One Guarantor. Any existing or new policy under any acceptable plan of insurance (issued by LIC of India) on the lives of the applicants, having risk cover to the extent of loan amount 1.00% of Loan Sanctioned.
Risk Cover
Front End Charges
Griha Sudhar (Home Repair) Loan Amount Upto Rs.10,00,000. Not exceeding 85% of Cost of Repairs or 25% of Market Value of Property, whichever is lower. 1 to 15 Years, or Retirement Age, or 70 years of Age, whichever is earliest. Equated Monthly Installments (EMI) - Monthly Rest Basis. 1.Equitable 2. One Guarantor. Life Insurance Cover is not required but advisable in the interest of the Applicants. 1.00% of Loan Sanctioned. Mortgage of House/Flat
Loan to Property Cost
Loan Term Repayment Mode
Security
Risk Cover Front End Charges
90
Loan for Purchase of Vacant Plots/Sites Loan Amount Loan to Property Cost Loan Term Repayment Mode Min Rs.50,000 Max Rs. 20,00,000. 85% of the Cost of Plot/Site. Upto 15 Years or Retirement Age, or 70 years of Age, whichever is earliest. By Equated Monthly Installments (EMI) - Monthly Rest Basis. 1.Equitable 2. One Guarantor. Life Insurance Cover is not required but advisable in the interest of the Applicants. 1.00% of Loan Sanctioned. Mortgage of House/Flat
Security
Risk Cover Front End Charges
Common Document requirements for all applicants. Application form duly filled in. Copy of sanctioned plan and sanction letter. Copy of NA permission/ULC clearence, wherever applicable. One guarantor form and his/her salary certificate in our format. If guarantor is in business or profession, a copy of his/her latest I.T.returns/assessment order. Bank Pass-book or statements for the last two years.f) Power of Attorney, wherever applicable Additional Requirements - For salaried persons Employer's salary certificate in our format/and latest salary slip. Identity card of applicant/s. TDS certificate of applicant/s. PF/ESIS slip of applicant/s.
Additional Requirements -For Businessmen / Self-employed Three years' income tax returns/assessment orders along with computation of income and statements of accounts certified by C.A.
91
Chapter III
Research Methodology
Research Methodology is an important part of every research project, because it helps in knowing how to select representative sample from the world or the general population, the right research tools and techniques to complete the research. The Research Process is based on survey method, for which I had to visit Service Providers and the end user. The sample size is 50 samples and out of this sample size our analysis is based. The research involves the following steps: Define the problem & research objective - The problem and objective is to assess the services offered by various service provider and what the consumer wants. Developing the research Plan - The second stage of research methodology is to develop a research plan.The research plan desigined to take decesion on the data sources, research approaches, research, instruments, sampling plan and contact methods. Survey Research It was a descriptive survey research. Research Instrument The use of an effective research instrument is very important. Because through this instrument we collect data. In this project through observations & personal interviews were conducted. Personal Interview I interacted with my customers asked about there views in selecting a service and what are there wants and expectations from a service provider. Sample Design It is a convenience sample design survey. It is convenience design because we mainly took samples from the banks customers itself therefore we did not have to go around and ask anyone to fill our questionnaire.
92
LIMITATIONS: 1) The analysis drawn out of this sample size may vary as this is a very small sample size. 2) It may vary as mainly sample was taken from banks customer. 3) This research study was taken in a limited area only (i.e. Lucknow city) and findings may vary if the area of study is increased or changed. 4) Some of the respondents might have been biased in their responses as such the analysis could vary to some extent. 5) While analysis of data, some human errors could have been possible. 6) Many just marked by not taking any sole interest in taking part in this. 7) Sample drawn through convenience sampling, for customer survey can not be well associated with the attributes of population.Here I got the questionnaire fill from people selected arbitrarily who happened to be those: we are familiar with e.g.our neighbors, our frinds,etc. The majority of the respondents were from educated middle class and perhaps this is the section of society which is being targeted by the Home Loan Companies.This is because of two reasons: a) The huge size of middle class population. b) Their increasing need and awareness for home loans in this class. Thus the sample drawn here was not a true representative of the people of Lucknow city but was fairly a sample of the segment targeted as potential customers by the Home loan providing institutions. Sample drawn through non-probability convenience sample for home market survey where the customer related attributes were being asked by the agents of different companies may give deviating results because different companies have different mission, vision, philosophy towards their service and the customer. These aspects can well differ in the segment (S) targeted by the company. In other words the perception of the agents about the perception of the customer on various home loan related aspects can be specified to the organization he is associated with. Thus
93
the perception of agent about the customers perception may not necessarily depict the customers perception exactly. CHAPTER IV (ANALYSIS OF INTEREST RATES COLLECTED) Comparative home loan interest rates: Upto loan of 20 lakh and for period of 0-5yrs:
Bank Name Floating Interest rate
Processing Fee
Prepayment Charges
Scheme I :10.50% (Fixed 1 yr) ICICI Bank Scheme II : 10.75% (Fixed 2yrs) Scheme III : 10.75% (Fixed 3yrs), then 10.50%
0.50% of loan amount upto 1 crore N.A
No prepayment charges 0.5% or maximum HDFC Ltd 10.50% 10,000+service tax (12.36%) shall be payable for partial or full prepayments irrespective of the source
Up to 30 lacs : 10,000 +(Service tax) 30 - 50 lacs : Scheme I : 10.40% LIC Housing Scheme II : 10.70% (Fixed for 3 yrs), 11.15% (Fixed for 5 yrs) 15,000 +(service tax) 50 lacs - 1Cr : 20,000 +(service tax) 1Cr & above : 25,000 +(service tax) 0.5% of the loan amount minimum Nil
UCO Bank
11.25% - 11.75%
N.A
94
Rs.1000.00.
Syndicate Bank
10.50%
N.A
N.A
Upto loan of 20-30lakh and for period of 0-5yrs

Processing Fee
Prepayment Charges
Scheme I :10.50% (Fixed 1 yr) ICICI Bank Scheme II : 10.75% (Fixed 2yrs) Scheme III : 10.75% (Fixed 3yrs), then 10.50%
Up to 30 lacs : 10,000 +(Service tax) 30 - 50 lacs : Scheme I : 10.40% LIC Housing Scheme II : 10.70% (Fixed for 3 yrs), 11.15% (Fixed for 5 yrs) 15,000 +(service tax) 50 lacs - 1Cr : 20,000 +(service tax) 1Cr & above : 25,000 +(service tax) 0.5% of the loan amount minimum Nil
UCO Bank
11.50% - 12.25%
N.A
95
Rs.1000.00.
Syndicate Bank
10.50% (Upto 25 Lacs), then 11.25%
N.A
N.A
Upto loan of30-75lakh and for period of 0-5yrs:

Processing Fee
Prepayment Charges
Scheme I :11% (Fixed 1 yr), ICICI Bank Scheme II : 11.25% (Fixed 2yrs) Scheme III : 11.25% (Fixed 3yrs), then 11%
Up to 30 lacs : 10,000 +(Service Scheme I : 10.40% Scheme II : 10.70% (Fixed for 3 yrs), 11.15% (Fixed for 5 yrs) LIC Housing (Upto 40Lacs), Scheme I : 10.40% Scheme II : 11.20% (Fixed for 3 yrs) , 11.40% (Fixed for 5 yrs) tax) 30 - 50 lacs : 15,000 +(service tax) 50 lacs - 1Cr : 20,000 +(service tax) 1Cr & above : 25,000 +(service tax) Nil
96
UCO Bank
12% - 12.50% (Upto 50 Lacs), Then 12.25%-12.75%
0.5% of the loan amount minimum Rs.1000.00. N.A
Syndicate Bank
11.25%
N.A
N.A
Loan above 75lakhs and for period of 0-5yrs:

Processing Fee
Prepayment Charges
Scheme I :11.50% (Fixed 1 yr) ICICI Bank Scheme II : 11.75% (Fixed 2yrs) Scheme III : 11.75% (Fixed 3yrs) then 11.50%
No prepayment charges 0.5% or maximum HDFC Ltd 10.75 - 11% 10,000+service tax (12.36%) shall be payable for partial or full prepayments irrespective of the source
Up to 30 lacs : 10,000 +(Service Scheme I : 11.15% Scheme II : 11.20% (Fixed for 3 LIC Housing yrs) (Upto 1Cr), Scheme I : 10.40% Scheme II : 11.70% (Fixed for 3 yrs) , 11.65% (Fixed for 5 yrs) tax) 30 - 50 lacs : 15,000 +(service tax) 50 lacs - 1Cr : 20,000 +(service tax) 1Cr & above : 25,000 +(service Nil
97
tax)
2% (For Scheme I) Nil (For Scheme II) If Balance Transfer then 2% Otherwise Nil If 25% of outstanding amount is paid every year -No Penalty , otherwise 2% of outstanding amount
NIL
If 25% of outstanding amount is paid every year -No Penalty , otherwise 2% of outstanding amount after 3 yrs no prepayment charges up to 90% no charges after that 2.5%
Nil
2% of Outstanding Balance only in case of takeover
N.A
N.A
Upto 30 lacs 0.40% 30-75 lacs : 0.50% 75 & above : 0.60%
98
2.25% of outstanding loan amount. 0.5% of the loan UCO Bank 12.25%-12.75% amount minimum Rs.1000.00. N.A
Syndicate Bank
11.75%
N.A
N.A
If we analyse above table of interest rates of all banks for specific loan amount and given tenure it can be clearly observed that : Loan upto 20lakhs: here HDFC and SYNDICATE banks have the lowest interest rates and almost same processing fee. Loan upto 20-30lakhs: here SYNDICATE bank offers the lowest rate of interest. Loan upto 30-75lakhs: here again HDFC Bank offers the lowest rate of interest. Loan above 75lakhs: here again HDFC Bank offers the lowest rate of interest. However interest rates does matter but another important factor i.e. also important is bank behavior the method they treat their customers. Because it solely depends on bank how much comfort they can provide to their customers.
99
QUESTTIONARE ANALYSIS: the sample size was of 50 and out of 50 the decision has been shown. Q1) In which type of job you are?
16
19
Government Private Business Others
14
Q2) Under which salary range you come?
1 7 <10,000 24 10,000-20,000 20,000-30,000 >30000 18
100
Q3) What type of collateral security would you be able to provide?
9 Building
16
Land Salary Others 22
Q4) what is your opinion regarding home loan procedure ?
5 4 Complex Difficult Simple Can't Say
35
101
Q5) Which type of interest rate have you preffered?

0
11 15 Fixed Floating Adjustable Others
24
Q6) What criteria are considered by you while selecting the home loan?
0 3 4 Lower rate of interest 7 Easy Availability Flexible repayment period 29 10 Quality of Service Quality of service Lower processing fees
102
Q7) Are you satisfied with the bank or financial institution from where you have availed loan?
Yes No
42
Q8) which bank charges lower processing fee?
11 17 2
UCO ICICI HDFC Syndicate LIC Housing
9 8
Others
103
Q9) is good treatment an relevant factor that affects in selection of home loan?
2 5 3 Totally disagree Disagree Neutral 27 13 agree Totally agree
Q10) According to you which bank provides better services and good treatment in their products and services?
10 17 UCO ICICI 5 HDFC Syndicate LIC Housing 0 9 Others 9
104
Q11) Reputation of banking institution is to be taken while selecting home loan. What is your opinion?
4 8 Disagree Indifferent Agree
38
Q12) According to you which bank enjoys good reputation in home loan sector?
6 12 5 UCO ICICI HDFC Syndicate 7 19 LIC Housing Others
105
Q13) Does tenure of home loan affects your selection?
Yes No
47
Q14) Which tenure is more preferred by you?

2)5-10 years 3)10-15 years 4)15-20 years
1)1-5 years
5)Others
1 17 2 3 4 5 26
106
15) Your opinion about uco bank home loan procedure?
3 8
14
Average Neutral Good Very Good Excellent 23
107
So after seeing this analysis we can point out that: 1. People mostly compare interest rates of different banks and thats their priority and then easy availability. 2. Secondly most of them preferred floating interest rates. 3. Thirdly customers opinion about home loan procedure was that its simple which if we look back in time say about 5years back it used to complex for the masses. 4. Through this survey we found that HDFC home loan was most popular and known among customers even being customer of some other bank. 5. Long tenure period was being preferred by most. 6. The present customers of UCO bank were totally satisfied with the banks procedure and the way of their working. 7. Apart from providing low interest rates UCO bank customers totally agreed that bank treatment in other goods and services were also good.
108
CHAPTER V SUGGESTIONS/RECOMMENDATIONS
It was a great experience working in UCO BANK. I got the knowledge of how to work in an organization. I had an overview about different banks as well and studied how an organization works with help of each department. During my training I noticed couple of things which had to be recommended. I have jotted down few of them. RECOMMENDATIONS The following suggestions are recommended: 1. To broaden the customer base the vast middle income strata should be fully exploited 2. Simplify the procedure, reduce service charges, and demand only the basic essential proof. 3. Most banks are reluctant to advance loan to the service class e.g. lawyers, police officers etc.. This aspect must be exploited. 4. Adoption of flexible and more lenient penalty should the customer fail to deposit the payment on time. The penalty should be on case to case basis rather then the same for the entire customer base. 5. Restriction to be reduced to bare minimum for loan advances and for repayment. For e.g. offer long-term repayment facilities and have no age restriction to choosing repayment. 6. The maximum age for repayment could be increase to 65-70 years of age. Such facility will help grow fast retail segment of the bank. 7. Give branches authority to take decision for any home loan application rather than transferring it to zonal office. 8. Service class to be exploited by offering special reduced rates and linking the repayment from the source from where the pay-cheque to the employee is issued. This needs to undergo special contract with government organisation to ensure implementation.
109
CHAPTER VI
CONCLUSION The Indian customer has come a long way from purchasing to fulfilling their needs from buying a house. Customers now grab everything that comes their way but they do their own survey of optimum loans; same is the case with banks, and housing loans. With innumerable choices before him, the customer is indeed the king. It is therefore imperative that if a bank has to succeed in the competitive world, it should be technological savvy, customer centric progressive driven by highest standards of corporate governance and guided by sound ethical values and above all should be cordial and should have personalize customer services. Analyzing the findings it can be said that good customer relationship raises awareness among the people. There are tough competitions and thus there exists a lot of room to improve so as to become the market leader from all aspects. The only thing is the making of and implementation of the proper strategy in the best effective way. By understanding the steps of competitors before they were implemented is the way lead to the market. The UCO Bank believes in adopting and adhering to the best corporate governance practices and continuously benchmarking itself against each such practices in the industry. The Bank understands and respects its fiduciary role and responsibility to shareholders and strives hard to meet their expectations. I believe that the best board practices, transparent disclosures and shareholder empowerment are necessary for creating shareholder value. The cardinal principles such as independence, Accountability, responsibility, transparency ,fair and timely disclosures, credibility serve as the means for implementing the philosophy of corporate governance in letter and in spirit. The banks employees are very friendly among their coordinates and also to their customers. There is scope of exploiting the vast middle income group by releasing loans with special interest rate which would be beneficial to both parties banks as well as customers.
110
MY LEARNING
It was a wonderful experience working at UCO bank IT COLLEGE branch. It was a good learning experience for me. I got opportunity to observe very closely working of a bank. How a bank employee does communicates to his customer. What all problems one employee has to come up while giving home loan and at the same time how instantly he/she has to provide solution for the same. I remember that my mentor M. S Kumar sir gave me one advice that whatever you do in your internship just apply one formulae that keep your eyes and ears open. And I remember on the very first day as it was completely a new environment I applied this and it was a great learning on the very first day even without having any work to do. And it was a good learning experience as I learned many things about loan procedures and even got chance to handle cash section. So all together dealing with the customers was a good and enriching experience. I would like to thank all the senior employees at bank who were so good to me and very much helpful.
111
CHAPTER VII BIBLIOGRAPHY
INTERNET
www.hdfcbank.com www.icicibank.com www.syndicatebank.com www.lichfl.com Uco online www.google.com
112
ANNEXURE
QUESTIONNAIRE Dear Sir/Madam, Name: Address: .. Contact No:. (O).(M). City: .. Pin: . I am a student of Jaipuria Institute of Management Studies, Lucknow and presently doing a project on UCO bank Home Loans. I request you to kindly fill questionnaire below and I assure you that the data generated shall be kept confidential.
1.
In which type of job you are?
2.
Government sector Private sector Business Other
What is your salary structure slab per month?
Rs < 10000 Rs 10000-20000 Rs 20000-30000 Rs > 30000
113
3. What type of collateral security would you be able to provide? Building Land Salary Other, specify
4. What is your opinion regarding home loan procedure? Complex Difficult Simple Cant say
5. Which type of interest rate have you preferred? Fixed Floating Adjustable Others
6. What criteria is considered by you while selecting home loan? Lower rate of interest Easy availability Flexible repayment period Quality of service Lower processing fee
114
7. Are you satisfied with bank or financial institution from where you have availed home loan? Yes No
8. which bank charges lower processing fee? Uco bank Icici bank Hdfc bank Syndicate bank Lic housing finance Others
9. Good treatment in other relevant products and services is a crucial factor that affects your selection of home loan? What is your opinion? Totally agree agree Neutral totally disagree disagree
115
10. according to you which bank provide better services and good treatment in other product and services? Uco bank Icici bank Hdfc bank Syndicate bank Lic housing finance Others
11. Reputation of banking institution is to be taken into consideration while selecting home loan. What is your opinion? Agree Indifferent Disagree
12. According to you which bank enjoys good reputation in home loan sector? Uco bank Icici bank Hdfc bank Syndicate bank Lic housing finance Others
13. Does tenure of home loan affects your decision? Yes No
116
14. Which tenure is more preferred by you? 1-5 years 5-10 years 10-15years 15-20years Others
15. Your opinion about Uco bank home loan procedure? Excellent Very good Good Neutral Average
Any suggestions for the improvement.. . .
Thank you
117

Sip Project On Uco Bank

Uploaded by

Copyright:

Available Formats

Sip Project On Uco Bank

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Sip Project On Uco Bank

Uploaded by

Copyright:

Available Formats

A Project Report On

Jaipuria Institute Of Management Noida

Siddharth Tripathi PGFA 1147

Date: June 22, 2012

Siddharth Tripathi PGFA 1147

Siddharth Tripathi PGFA 1147

Siddharth Tripathi PGFA 1147

Table of Content S.No Description Page No. 5 6

91 92 106 107 108 109

Siddharth Tripathi PGFA 1147

Siddharth Tripathi PGFA 1147

INTRODUCTION AND OBJECTIVE OF STUDY

Siddharth Tripathi PGFA 1147

Siddharth Tripathi PGFA 1147

Siddharth Tripathi PGFA 1147

Siddharth Tripathi PGFA 1147

UNIQUE FEATURES OF HOUSE LOAN

Siddharth Tripathi PGFA 1147

Siddharth Tripathi PGFA 1147

Siddharth Tripathi PGFA 1147

HOME LOAN TYPES

Siddharth Tripathi PGFA 1147

Siddharth Tripathi PGFA 1147

Home Loan Interest Rate

Siddharth Tripathi PGFA 1147

Siddharth Tripathi PGFA 1147

Siddharth Tripathi PGFA 1147

Siddharth Tripathi PGFA 1147

Siddharth Tripathi PGFA 1147

UCO Car UCO Cash UCO Securities UCO Two Wheeler

Interest Subsidy Scheme UCO Doctor

Siddharth Tripathi PGFA 1147

Siddharth Tripathi PGFA 1147

Siddharth Tripathi PGFA 1147

No third party guarantee

Siddharth Tripathi PGFA 1147

Siddharth Tripathi PGFA 1147

Siddharth Tripathi PGFA 1147

Siddharth Tripathi PGFA 1147

Siddharth Tripathi PGFA 1147

Siddharth Tripathi PGFA 1147

Eligible Borrowers Purpose Loan Amount

Period of Loan Mode of Disbursement

Rate of Interest Repayment

Siddharth Tripathi PGFA 1147

Siddharth Tripathi PGFA 1147

Siddharth Tripathi PGFA 1147

Siddharth Tripathi PGFA 1147

Siddharth Tripathi PGFA 1147

Siddharth Tripathi PGFA 1147

Siddharth Tripathi PGFA 1147

>Rs.1 Cr. & upto Rs.5 Cr.

>Rs5 Cr. & upto Rs.10 Cr.

Siddharth Tripathi PGFA 1147

Final lending Rate

Spread over Base Rate 10.75%

Final lending Rate

14.25% 14.35% 14.50% 14.65% 14.75% 15.25% 16.25%

4.50% 4.60% 4.75% 4.90% 5.00% 5.50% 6.50%