INTRODUCTION

PREFACEI am extremely happy to place before the esteemed teacher PERSONAL LOAN POLICY IN INDIA -SBI . It is an attempt make by me to find out the leading brands in Sagar City.The Project Report has on objective to get the B.B.A. Studetns familiar with real life buisness situations and gives an opportunity to the students to understand the theoretical concepts of marketing and finance in practical way. The research starts with a short introduction of the company followed by the line of the objective and research methodology.Next Chapter Deals with the data analysis and interpretation that is based on questionnaire. Then comes the limitation, suggestions conclusion of the research report. Students name : SOURABH AWASTHI Class :BBA VTH SEM.

ACKNOWLEDGEMENTI Wish to express my deep sense of gratitude to all who generously helped in successful completion of the project work by sharing their valuable time and knowledge. I thankfully acknowlege Mr. Manish Jain (HOD BBA Dept) GIMS Sagar for giving me the opportunity to conduct and survey. I Would like to express my sincere thanks to MR. MANISH JAIN LecturerBBA Dept) and all other faculty members, GIMS sagar who directly and indirectly rendered me all possible help and guidance for preparing the report. Finally I would like to thanks my parents, my friends without whom completion of my project report would not have been possible. Students name : SOURABH AWASTHI Class :BBA VTH SEM.

CERTIFICATE A PROJECT REPORT ON PERSONAL LOAN POLICY IN INDIA -SBI is prepared by SOURABH AWASTHI under The guidance of MR. MANISH JAIN is a satisfactory in respect to comments Contents and presentation of the Subject Matter. Language Submission with in due date.

Signature of Supervisor Signature of Examiner Signature of HOD

DECLARATION BY THE CANDIDATE

Date:

I declare that the project report titled PERSONAL LOAN POLICY IN INDIA -SBI is my own work conducted under the supervision of MR. MANISH JAIN , Gyanveer Institute of Management and Science Sagar. To the best of my knowledge the report does not contain any work, which has been submitted for the award of any degree, anywhere.

Students name : SOURABH AWASTHI Class :BBA VTH SEM.

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TABLE OF CONTENTS Preface Acknowledgement Certificate Declaration by the CandidateTOPIC NAMEPAGE NO.

CHAPTER 1 INTRODUCTION

(A) COMPANY PROFILE

(B) HISTORY

(C) KEY PERSON

CHAPTER 2 OBJECTIVE

CHAPTER 3 RESEARCH METHODOLOGY

(A) TYPE OF RESEARCH

(B) SOURCE OF RESEARCH

CHAPTER 4 PERSONAL LOANS POLICIES IN INDIA

CHAPTER 5 DATA ANALYSIS AND INTERPRETATION

CHAPTER 6 SWOT ANALYSIS

CHAPTER 7 LIMITATION

CHAPTER 8 SUGGESTION AND CONCLUSION

CHAPTER 9 BIBLIOGRAPHY

CHAPTER 10 QUESTIONNAIRE

IntroductionSTATE BANK OF INDIA

Not only many financial institution in the world today can claim the antiquity and majesty of the State Bank Of India founded nearly two centuries ago with primarily intent of imparting stability to the money market, the bank from its inception mobilized funds for supporting both the public credit of the companies governments in the three presidencies of British India and the private credit of the European and India merchants from about 1860s when the Indian economy book a significant leap forward under the impulse of quickened world communications and ingenious method of industrial and agricultural production the Bank became intimately in valued in the financing of practically and mining activity of the Sub- Continent Although large European and Indian merchants and manufacturers were undoubtedly thee principal beneficiaries, the small man never ignored loans as low as Rs.100 were disbursed in agricultural districts against glad ornaments. Added to these the bank till the creation of the Reserve Bank in 1935 carried out numerous Central Banking functions.

Adaptation world and the needs of the hour has been one of the strengths of the Bank, In the post depression exe. For instance when business opportunities become extremely restricted, rules laid down in the book of instructions were relined to ensure that good business did not go post. Yet seldom did the bank contravenes its value as depart from sound banking principles to retain as expand its business. An innovative array of office, unknown to the world then, was devised in the form of branches, sub branches, treasury pay office, pay office, sub pay office and out students to exploit the opportunities of an expanding economy. New business strategy was also evaded way back in 1937 to render the best banking service through prompt and courteous attention to customers.

A highly efficient and experienced management functioning in a well defined organizational structure did not take long to place the bank an executed pedestal in the areas of business, profitability, internal discipline and above all credibility A impeccable

financial status consistent maintenance of the lofty traditions if banking an observation of a high standard of integrity in its operations helped the bank gain a pre- eminent status. No wonders the administration for the bank was universal as key functionaries of India successive finance minister of independent India Resource Bank of governors and representatives of chamber of commercial showered economics on it.

Modern day management techniques were also very much evident in the good old days years before corporate governance had become a puzzled the banks bound functioned with a high degree of responsibility and concerns for the shareholders. An unbroken records of profits and a fairly high rate of profit and fairly high rate of dividend all through ensured satisfaction, prudential management and asset liability management not only protected the interests of the Bank but also ensured that the obligations to customers were not met. The traditions of the past continued to be upheld even to this day as the State Bank years itself to meet the emerging challenges of the millennium.

ABOUT LOGO

THE PLACE TO SHARE THE NEWS ... SHARE THE VIEWS

Togetherness is the theme of this corporate loge of SBI where the world of banking services meet the ever changing customers needs and establishes a link that is like a circle, it indicates complete services towards customers. The logo also denotes a bank that it has prepared to do anything to go to any lengths, for customers. The blue pointer represent the philosophy of the bank that is always looking for the growth and newer, more challenging, more promising direction. The key hole indicates safety and security.MISSION, VISION AND VALUESMission statement:To retain the Banks position as premiere Indian Financial Service Group, with world class standards and significant global committed to excellence in customer, shareholder and employee satisfaction and to play a leading role in expanding and diversifying financial service sectors while containing emphasis on its development banking rule.VISION STATEMENT:

Premier Indian Financial Service Group with prospective world-class Standards of efficiency and professionalism and institutional values. Retain its position in the country as pioneers in Development banking. Maximize the shareholders value through high-sustained earnings per Share. An institution with cultural mutual care and commitment, satisfying and Good work environment and continues learning opportunities.VALUES: Excellence in customer service Profit orientation Belonging commitment to Bank Fairness in all dealings and relations Risk taking and innovative

Team playing Learning and renewal Integrity Transparency and Discipline in policies and systems.

ORGANISATION STRUCTURE

MANAGING DIRECTOR

CHIEF GENERAL MANAGER

G. M G.M G. M G.M G.M(Operations) (C&B) (F&S) (I) & CVO (P&D)

zonal officers

Functional Heads Regional officers

PRODUCTS:

State Bank Of India renders varieties of services to customers through the following products:Personal Loan Product: SBI Term Deposits SBI Recurring Deposits SBI Housing Loan SBI Car Loan SBI Educational Loan SBI Personal Loan SBI Loan For Pensioners Loan Against Mortgage Of Property Loan Against Shares & Debentures Rent Plus Scheme Medi-Plus Scheme Rates Of InterestSBI Housing loanSBI Housing loan or Mortgage Loan schemes are designed to make it simple for you to make a choice at least as far as financing goes!'SBI-Home Loans' features: No cap on maximum loan amount for purchase/ construction of house/ flat Option to club income of your spouse and children to compute eligible loan amount Provision to club expected rent accruals from property proposed to compute eligible loan amountProvision to finance cost of furnishing and consumer durables as part of project cost Repayment permitted upto 70 years of age Free personal accident insurance cover Optional Group Insurance from SBI Life at concessional premium (Upfront premium financed as part of project cost) Interest applied on daily diminishing balance basis 'Plus' schemes which offer attractive packages with concessional interest rates to Govt. Employees, Teachers, Employees in Public Sector Oil Companies. Special scheme to grant loans to finance Earnest Money Deposits to be paid to Urban Development Authority/ Housing Board, etc. in respect of allotment of sites/ house/ flat No Administrative Charges or application fee Prepayment penalty is recovered only if the loan is pre-closed before half of the original tenure (not recovered for bulk payments provided the loan is not closed) Provision for downward refixation of EMI in respect of floating rate borrowers who avail Housing Loans of Rs.5 lacs and above, to avail the benefit of downward revision of interest rate by 1% or more In-principle approval issued to give you flexibility while negotiating purchase of a property Option to avail loan at the place of employment or at the place of construction Attractive packages in respect of loans granted under tie-up with Central/ State Governments/ PSUs/ reputed corporates and tie-up with reputed builders (Please contact your nearest branch for details)SERVICES: DOMESTIC TREASURY SBI VISHWA YATRA FOREIGN TRAVEL CARD BROKING SERVICES REVISED SERVICE CHARGES ATM SERVICES INTERNET BANKING E-PAY E-RAIL RBIEFT SAFE DEPOSIT LOCKER GIFT CHEQUES MICR CODESFOREIGN INWARD REMITTANCESDIFFERENT PRODUCTS OF SBI:DEPOSITLOANSCARDSDIFFERENT CREDIT CARDS

Savings Account Home Loans Consumer Cards SBI International cards

Life Plus Senior Citizens Savings Account Loan Against Property Credit Card SBI Gold cards

Fixed Deposits Personal Loans Travel Card SBI Gold Master cards

Security Deposits Car Loan Debit Cards Your City Your Cards

Recurring Deposits Loans against Securities Commercial Cards

Tax-Saver Fixed Deposit Two Wheeler Corporate Cards Partnership Cards

Salary Account Pre-approved Loans Prepaid Card

Advantage WomanSavings Account Retail Asset Purchase Card SBI Employee Cards

Rural Savings Account Farmer Finance Distribution Cards

People's Savings Account Business Installment Loans Business Card SBI Advantage Cards

Freedom Savings Account Flexi Cash Merchant Services

PERSONAL LOAN POLICIES IN STATE BANK OF INDIA Introduction to Advance Product:

Now a day not all the people have the capacity to fulfill their requirement by their own earning, thats why they need help from others. For this so many government & private sector bank provide them money to fulfill their requirement, thats call the Advance Product (loan product) of the bank. All the banks have so many different types of advance product as per the requirement of the people or customers. In Bhubaneswar also there are so many banks those provide loan to the people for different causes.

Types of Advance Product

Home Loan Educational Loan Car Loan Personal Loan Property Loan Loan Against Shares\Debentures Etc.

Now a day a large no. of people are taking loan form different banks. It helps people to fulfill their need and it really easy to repayment the loan amount with a longer repayment period.

SBI Advance Product

SBI Home Loans:Purpose

Purchase/ Construction of House/ Flat

Purchase of a plot of land for construction of House

Extension/ repair/ renovation/ alteration of an existing House/ Flat

Purchase of Furnishings and Consumer Durables as a part of the project cost.

Takeoverof an existing loan from other Banks/ Housing Finance Companies.Eligibility

Minimum age18 years as on the date of sanction

Maximum age limit for a Home Loan borrower is fixed at 70 years, i.e. the age by which the loan should be fully repaid.

Availability of sufficient, regular and continuous source of income for servicing the loan repayment.Loan Amount40 to 60 times of NMI, depending onrepayment capacity as % of NMI as under

Net Annual Income EMI/NMI Ratio

Upto Rs.2 lacs40%

Above Rs.2 lac to Rs. 5 lacs 50%

Above Rs. 5 lacs55%

To enhance loan eligibility you have option to add:

1. Income of your spouse/ your son/ daughter living with you, provided they have a steady income and his/ her salary account is maintained with SBI.2. Expected rent accruals (less taxes, cess, etc.) if the house/ flat being purchased is proposed to be rented out.3. Depreciation, subject to some conditions.4. Regular income from all sources

Margin(Special Festival Season Offer)

Purchase/ Construction of a new House/ Flat/ Plot of land: 15% for loans up to Rs. 1 cr., 20% for loans above Rs. 1 cr. Repairs/ Renovation of an existing House/ Flat: 15%

Interest Rates w.e.f 27.2.2008

Floating interest rates (linked to State Bank Advance Rate - SBAR)

(SBAR: 12.25% p.a.)

Loan Tenor ->Upto 5 yearsAbove 5 years and upto 15 yearsAbove 15 years and upto 25 years

Upto Rs.30 Lacs2.25% below SBAR,10.00% p.a.2.00% below SBAR,10.25% p.a.1.75% below SBAR,10.50% p.a.

Above Rs.30 Lacs2.00% below SBAR,10.25% p.a.1.75% below SBAR,10.50% p.a.1.50% below SBAR,10.75% p.a.

Fixed interest rates

TenureRate of Interest

(p.a.)*Upto10 years12.75%

* Fixed rate loans will be subject to: 'force maejure' clause andinterestresetat the end of every two years on the basis of fixed interest rates prevailing then.

CAR LOAN:Purpose

You can take finance for:A new car, jeep or Multi Utility Vehicles (MUVs)

A usedcar / jeep (not more than5 years old). (Any make or model).

Take over of existing loan from other Bank/Financial institution (Conditions apply)http://www.sbi.co.in/viewsection.jsp?id=0,1,20,117

Eligibility To avail an SBI Car Loan, you should be : Individual between the age of 21-65 years of age. A Permanent employee of State / Central Government, Public Sector Undertaking, Private company or a reputed establishment or A Professionals or self-employed individual who is an income tax assessee or A Person engaged in agriculture and allied activities. Net Annual Income Rs. 100,000/- and above. Salient Featureshttp://www.sbi.co.in/viewsection.jsp?id=0,1,20,117Loan Amount

There is no upper limit for the amount of a car loan.A maximum loan amount of 2.5 times the net annual income can be sanctioned. If married, your spouse's income could also be considered provided the spouse becomes a co-borrower inthe loan. The loan amount includes finance for one-time road tax, registration and insurance!No ceiling on the loan amount for new cars.

Loan amount for used car is subject to a maximum limit ofRs. 15 lacs.http://www.sbi.co.in/viewsection.jsp?id=0,1,20,117

Type of Loanhttp://www.sbi.co.in/viewsection.jsp?id=0,1,20,1171. Term Loan2. Overdraft- a) For New vehiclesonly b)Minimum loan amount: Rs. 3lacs.Documents required

you would need to submitthe following documents along with the completed application form if you are an existing SBI account holder: 1. Statement of Bank account of the borrower for last12 months. 2. 2 passport size photographs of borrower(s). 3. Signature identification from bankers of borrower(s). 4. A copy of passport /voters ID card/PAN card. 5. Proof of residence. 6. Latest salary-slip showing all deductions 7. I.T. Returns/Form 16: 2 years for salaried employees and 3 years for professional/self-employed/businessmen duly accepted by the ITO wherever applicable to be submitted. 8. Proof of official address for non-salaried individuals.If you are not an account holder with SBI you would also need to furnish documents that establish your identity and give proof of residence. http://www.sbi.co.in/viewsection.jsp?id=0,1,20,117Margin

New / Used vehicles: 15% of the on the road price.

http://www.sbi.co.in/viewsection.jsp?id=0,1,20,117RepaymentYou enjoy the longest repayment period in the industry with us. Repayment period:For Salaried:Maximum of 84 monthsFor Self-employed & Professionals: Maximum 60 months

Repayment period for usedvehicles:Up to 84 months from the date of original purchase of the vehicle (subject to maximum tenure as above).Prepayment Penalty:

Prepayment fee of 2% of the amount of the loan prepaid will be levied subject to certain conditionsFLOATING RATES: A. for Term Loans

1. New Vehicles (Term Loan) Floating only W.E.F. February 27, 2008Repayment PeriodAll Centers (SBAR - 12.25%)

Upto 3 years (for loans Rs. 7.5 lac & above)0.75% below SBAR i.e. 11.50% p.a.

Upto 3 years (for loansbelow Rs. 7.5 lac)0.50% below SBAR i.e. 11.75%p.a.

Above 3 yrs up to 5 yrs (for all loans)0.50% below SBAR i.e. 11.75% p.a.

Above 5 yrs up to 7 yrs (for all loans)0.25% below SBAR i.e. 12.00% p.a.

2. Used Vehicles: Floating only W.E.F. February 27, 2008

Repayment PeriodAll Centers (SBAR-12.25%)

Upto 3 years3.00% above SBAR i.e. 15.25% p.a.

Above 3 yrs up to 7 yrs3.25% above SBAR i.e. 15.50% p.a.

B. For Overdrafts: For New Vehicles only W.E.F. February 27, 2008Repayment PeriodAll Centres (SBAR 12.25%)

Upto 3 years (for loans Rs. 7.5 lac & above)0.25% below SBAR i.e. 12.00% p.a.

Upto 3 years (for loansbelow Rs. 7.5 lac)AtSBAR i.e. 12.25% p.a.

Above 3 yrs up to 5 yrs (for all loans)AtSBAR i.e. 12.25% p.a.

Above 5 yrs up to 7 yrs (for all loans)0.25% above SBAR i.e. 12.50% p.a.

EDUCATION LOAN:A term loan granted to Indian Nationals for pursuinghigher education in India or abroad where admission has been secured.

Eligible Courses

All courses having employment prospects are eligible. Graduation courses/ Post graduation courses/ Professional courses Other coursesapproved by UGC/Government/AICTE etc. http://www.sbi.co.in/viewsection.jsp?id=0,1,20,118Expenses considered for loan Fees payable to college/school/hostel Examination/Library/Laboratory fees Purchase of Books/Equipment/Instruments/Uniforms Caution Deposit/Building Fund/Refundable Deposit (maximum 10% tution fees for the entire course) Travel Expenses/Passage money for studies abroad Purchase of computers considered necessary for completion of course Cost of a Two-wheeler upto Rs. 50,000/- Any other expenses required to complete the course like study tours, project work etc.

Amount of Loan For studies in India, maximum Rs. 10 lacs Studies abroad, maximum Rs. 20 lacsInterest Rates (with effect from 1st June 2008)

For loans up to Rs.4 lacs -11.75 % p.a. FloatingFor loans above Rs. 4 lacs and upto Rs.7.50 lacs - 13.25 % FloatingFor loans above Rs.7.50 lacs -12.25% p.a. Floatinghttp://www.sbi.co.in/viewsection.jsp?id=0,1,20,118Processing Fees No processing fee/ upfront charges Deposit of Rs. 5000/- for education loan for studies abroad which will be adjusted in the margin moneyRepayment TenureRepayment will commence one year after completion of course or6 months after securing a job, whichever is earlier. Place of StudyLoan AmountRepayment in PeriodYears

Studies in IndiaRs.10.0 lacs5-7

Studies Abroad

Rs.20.0 lacs

5-7

Security

Amount

For loans upto Rs. 10.00 lacs for Studies in India and upto Rs. 20.00 lacs for studies abroad

Upto Rs. 4 lacs

No Security

Above Rs. 4 lacs to Rs. 7.50 lacs

Collateral security in the form of suitable third party Guarantee. The bank may, at its discretion, in exceptional cases, weive third party guarantee if satisfied with the net-worth/means of parent/s who would be executing the documents as "joint borrower"

Above Rs. 7.50 lacs.

Tangible collateral security of suitable value, along with the assignment of future income of the student For payment of installments.

All loans should be secured by parent(s)/guardian of the student borrower. In case of married person, co-obligator can be either spouse or the parent(s)/ parents-in-lawhttp://www.sbi.co.in/viewsection.jsp?id=0,1,20,118Margin For loans up to Rs.4.0 lacs : No Margin For loans above Rs.4.0 lacs: Studies in India: 5% Studies Abroad: 15%Documentation Required Completed Education Loan Application Form. Mark sheets of last qualifying examination Proof of admission scholarship, studentship etc Schedule of expenses for the specified course 2 passport size photographs Borrower's Bank account statement for the last six months Income tax assessment order, of last 2 years Brief statement of assets and liabilities, of the Co-borrower Proof of Income (i.e. Salary slips/ Form 16 etc)

SBI SARAL PERSONAL LOAN:

PurposeThe loan will be granted for any legitimate purpose whatsoever (e.g. expenses for domestic or foreign travel, medical treatment of self or a family member, meeting any financial liability, such as marriage of son/daughter, defraying educational expenses of wards, meeting margins for purchase of assets etc.)

EligibilityYou are eligible if you are a Salaried individual of good quality corporate, self employed engineer, doctor, architect, chartered accountant, MBA with minimum 2 years standing.

Salient Features Loan AmountYour personal loan limit would be determined by your income and repayment capacity. Minimum: Rs.24,000/- in metro and urban centresRs.10, 000/- in rural/semi-urban centres

Maximum: 12 times Net Monthly Income for salaried individuals and pensioners subject to a ceiling of Rs.10 lacs in all centres

Documents RequiredImportant documents to be furnished while opening a Personal Loan Account:

For existing bank customersPassport size photograph

From salaried individuals Latest salary slip and Form 16

MarginWe do not insist on any margin amount.

Interest Rates 3.25% above SBAR floating i.e. 15.50% p.a.

Repayment The loan is repayable in 48 EMI. You are allowed to pay more than the EMI if you wish to, without attracting any prepayment penalty.

SecurityNIL

Processing Fee Processing charges are 1-2% of the loan amount. This is amongst the lowest fees in the industry. Processing fees have to be paid upfront. There are no hidden costs or other administrative charges.

PROPERTY LOAN:Purpose This is an all purpose loan, i.e., the loan can be obtained for any purpose whatsoever. If amount of loan isRs.25.00 lacs and above then purpose of loan will have to be specified along with an undertaking that loan will not be used for any speculative purpose whatever including speculation on real estate and equity shares.http://www.sbi.co.in/viewsection.jsp?id=0,1,20,120EligibilityYou are eligible if you are: A. An individual who is; a. An Employee or b. A Professional, self-employed or an income tax assesse or c. Engaged in agricultural and allied activities.

B. Your Net Monthly Income (salaried) is in excess of Rs.12,000/- or Net Annual Income (others) is in excess of Rs.1,50,000/-.

The income of the spouse may be added if he/she is a co-borrower or a guarantor.

C. Maximum age limit: 60 years. Salient Features http://www.sbi.co.in/viewsection.jsp?id=0,1,20,120Loan AmountMinimum: Rs.25, 000/- Maximum: Rs.1 crore. The amount is decided by the following calculation: 24 times the net monthly income of salaried persons (Net of all deductions including TDS) OR 2 times the net annual income of others (income as per latest IT return less taxes payable)http://www.sbi.co.in/viewsection.jsp?id=0,1,20,120MarginWe will finance upto 75% of the market value of your property. http://www.sbi.co.in/viewsection.jsp?id=0,1,20,120InterestTerm Loan 0.75% above SBAR. i.e.13.00% p.a. Floating

Repaymenthttp://www.sbi.co.in/viewsection.jsp?id=0,1,20,120Maximum of 60 equated monthly installments, upto 120 months for salaried individuals with check-off facility. You could opt to divert any surplus funds towards prepayment of the loan without attracting any penalty. http://www.sbi.co.in/viewsection.jsp?id=0,1,20,120SecurityAs per banks extant instructions.

LOAN AGAINST SHARES \ DEBENTURES:

Eligibility This facility is available to our existing individual customers enjoying a strong relationship with SBI. This loan could be availed either singly or as a joint account with spouse in 'Either or Survivor'/ 'Former or Survivor' mode. It is offered as an Overdraft or Demand Loan.

The facility is available at 50 select centers.

Salient Features:PurposeFor meeting contingencies and needs of personal nature. Loan will be permitted for subscribing to rights or new issue of shares / debentures against the security of existing shares / debentures. Loan will not be sanctioned for (i) speculative purposes (ii) inter-corporate investments or (iii) acquiring controlling interest in company / companies.Loan Amount You can avail of loans up to Rs 20.00 lacs against your shares/debentures.

Documents Required You will be required to submit a declaration indicating: Details of loans availed from other banks/ branches for acquiring shares/ debentures. Details of loans availed from other banks/ branches against security of shares/ debenturesMarginYou will need to provide a margin amount of 50% of the prevailing market prices of the shares/ non-convertible debentures being offered as security. (The market prices refer to the prices in the Stock Exchanges as reported in the Economic Times.)

InterestAt SBAR Floating i.e. 12.25% p.a.Repayment Schedule To be liquidated in maximum period of 30 months through a suitable reducing DP programme.

In case of a default or if the outstanding is over Rs.20.00 lacs, the shares/debentures will be transferred in the name of the Bank.

Security: Pledge of the demat shares/debentures against which overdraft is granted.

RESEARCH METHODOLOGYAccording to Green and Tall A research design is the specification of the methods and procedures for acquiring the information needed. It is the overall operational pattern or framework of the project that stipulates which information is to be collected, from where it is to be collected and by what proceduresThis research process based on primary data analysis and secondary data analysis will be clearly defined to meet the objectives of the study. I chose the primary sources to get the data. A questionnaire was designed in accordance with our mentor in HDFC . I chose a sample of about 45 corporate customers around the Sagar City from which I can get the instant information of whose analysis will give me the desired outcome of my research project. I collected some data from the secondary sources like published Company documents, internet etc.

Research DesignA research design is the arrangement of conditions for collections and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedures. It is a descriptive cross sectional design .It is the conceptual structure with in which research is conducted; it constitutes the blueprint for the collection, measurement and analysis of data.It is needed because it facilitates the smooth sailing of the various research operations, thereby making research as efficient as possible yielding maximal information with minimal expenditure of effort, time and money. In the preliminary stage, my research stage constituted of exploratory study by which it is clear that the existence of the problem is obvious .So, I can directly head for the conclusive research. Sampling PlanSampling plan is a distinct phase of research process. In this stage I have to determine who is to be sampled, how large should be the needed sample and how sampling unit is to be selected.PopulationIn my research, I have defined my population as a complete set of customers of Sagar CitySample SurveyAs compared to census study, a sample study has been conducted by us because of: Wide range of population, it was impossible to cover the whole population Time and money constraints.Sample UnitIn this survey I took the list of customers from the dealers of HDFC in Sagar City.Sampling Technique Sampling technique implies the method of choosing the sample items, the two methods of selecting sample are: Probability method. Non-probability method.Probability method is those in which every item of the universe has an equal chance of the inclusion in the sample. Non-probability methods are those that do not provide every item in the universe with known cause of being included in the sample. The selection process is partially subjective.For my study, I employed the Non-probability sampling technique, in which I got the data of the customers from the dealer of HDFC in Sagar City Instrument of collection of dataI have used one set of questionnaire to collect data from the customers. This questionnaire is structured and highly ordered. This includes both close ended and open ended questions. The close ended questions included both dichotomous and multiple choice questions.Data analysis and interpretations Large volumes of raw data were collected through questionnaires in my research study. This raw data has been further converted into significant statistical information before further interpretation so that I can answer my research objective well. The collected raw data was then edited and coded by the researchers to eliminate errors and to assign data to pertinent categories. The data was then tabulated and presented with the help of bar diagrams and pie charts.

DATA ANALYSIS AND INTERPRETATION

Q1. On which bank you depend for your regular transaction?

( ) No. of People

SBI60 % (1200)

ICICI33 % (660)

HDFC5% (100)

OTHER2% (40)

TOTAL NO. OF PEOPLE2000

It has been observed that approximately 60% correspondents are using the service of SBI for their daily transaction, around 33% of people are using ICICI Bank for their transaction and only 5% & 2% of people are using HDFC & other Bank service respectively in Bhubaneswar. It also shows that SBI have the highest market position in Bhubaneswar as per my sample.

Q2. Are you aware of products & services provided by SBI?

YES

85% (1700)

NO15% (300)

Total No. of People2000

From the above data it is clear that most of the customers (around 85%) of Bhubaneswar have the idea about the product & services of SBI, the rest 15% have the idea about the product they are using. In this 15% most of the people are from typical rural area (Farmers).

Q3. If yes are you aware of the advance products (Loan segments) of SBI?

YES95%(1900)

NO5% (100)

TOTAL NO. OF PEOPLE2000

It is clear that most of the people have the idea about the advance product of SBI. Almost all the 95% people who have the idea about the advance product are the user of SBI product & service.

Q4. Which bank you prefer for taking loans?

SBI85% (1800)

ICICI7% (140)

HDFC2% (40)

OTHER1% (20)

TOTAL NO. OF PEOPLE2000

According to my sample size 85% of people prefer SBI for loan product, but some people prefer ICICI, HDFC or OTHER Bank for loan because they are working with that bank & it is easier for them to get loan from their bank & it easier for them to pay the interest because it is less as compare to other bank because they are the employee of that bank.

Q.6 Which loan product of SBI you have used?

HOME LOAN47% (846)

EDUCATIONAL LOAN20% (360)

CAR LOAN15% (270)

PERSONAL LOAN10% (180)

OTHER8% (144)

TOTAL NO. OF PEOPLE1800

From the sample size 85% of people are using the SBI loan product. From the 1800 people 47% of people took home loan from SBI. 20% of people took education loan for their children, 15% of people took car loan from SBI. Some of the customer took 2 type of loan from SBI like both car & educational loan and home & car loan. 10% of people took personal loan.

Q7. What do you feel about the services providing by SBI in advance product?

Bad0% (0)

Satisfactory

2% (40)

Good

55% (1100)

Excellent

43% (860)

TOTAL NO. OF PEOPLE

2000

From this it is clear that the service provide by SBI in its advance product is good in between the customer. All of them satisfy with the product provide by SBI. 55% of people said that the service provide by SBI is good & 43% said it is excellent & just 2% of people said that it is satisfactory.

Q8. Which features you like most in Loan segments of SBI?

LESS PAPER WORK3% (60)

ATTRACTIVE INTEREST RATE35% (700)

TRANSPARENCY20% (400)

SIMPLE AND FAST PROCESSING2% (40)

LONGER REPAYMENT PERIOD40% (800)

TOTAL NO. OF PEOPLE2000

Most of the people like the attractive interest rate & longer repayment period. Its easier for people to repay the whole loan amount with its interest with low interest rate and with longer repayment period.

PROJECT Findings:

From this project it is found that SBI advance product having the 1st place in the market at Bhubaneswar, there is a great opportunity to compete with ICICI Bank & to retain its customer by fulfilling the requirement of customer in SBI advance product. It has been observed that approximately 85% correspondents are using advance product of SBI and 15% are not using any type of advance product of SBI in Bhubaneswar. All of SBI customers are satisfied with the services provided by the bank. Many of these customers satisfied with the low interest rate and longer repayment period of the advance product. Most of the customers at Bhubaneswar prefer to take loan from SBI. Approximately 43% of advance product users said that the service of SBI in advance product is excellent. A response from customer care is so clear & good. Many customers have no time to call customer care so that they are not able to know about the service & features of SBI advance product. Most customers are shifted from other banks advance product to SBI because of hidden charges, high interest rate, less repayment period. Government employees are more concern than private employees for advance product.

REASONS FOR HIGHLY USE OF SBI ADVANCE PRODUCT:

LESS PAPER WORK ATTRACTIVE INTEREST RATES TRANSPARENCY SIMPLE & FAST PROCESSING LONGER REPAYMENT PERIOD QUICK PROCESSING

Suggestion & Recommendation

Recommendation:

Customer awareness programme is required so that more people should attract towards advance product. If there are any kind of hidden charges than that must disclose to customer before giving loan to them. SBI must take some steps so that customers can get their loan in time. Like phone verification by customer care that one customer is got their loan on time or not .It must be before a certain date so necessary steps can be taken. SBI should more concern about physical verification rather than phone verification so it will avoid fraud or cheating. Advance product selling agents must not give any type of wrong information regarding advance product. For the better service new offers would be require. SBI customer care should more concern about the fastest settlement of customer problems. Before deducting or charging any monetary charge SBI must consult with customer. Agents should be trained, well educated & proper trained to convince the people about different advance product. It is the duty of the bank to disclose all the material facts regarding advance product, like interest charged, repayment period, other types of charges, etc. Special scheme should be implemented to encourage both customer and agents. The bank should increase the period for repayment of loan. SBI should more focus on Retaining existing customers. SBI must focus on Segmentation based on customer knowledge Product offering based on customer demand. SBI must take feedbacks of customers regarding features & services.

Conclusion

From the analysis part it can be conclude that customers have a good respond towards SBI advance products in Bhubaneswar. SBI is in 1st position having large number of customers & providing good services to them. The bank has a wide customer base, so the bank should concentrate on this to retain these customers.

In present scenario SBI is the largest advance product issuer in India. Within a very short period of time the achievement made by SBI is excellent, what a normal bank cannot expect, but it is being done by SBI. It happens due to employee dedication towards the organization, fastest growing Indian economy, & brand image.

To be the largest advance product issuer, SBI should focus on-

Launch Innovative product Customized advance products Better customer services Fastest customers problem solving techniques Customer retention Apart from all the above, SBI believe in providing good customer services to their customers which is a key factor for success in future.

QuestionnaireName - _____________________________________Occupation-__________________________________Contact Detail -_______________________________

Q. On which bank you depend for your regular transaction?a) SBIb) ICICI Bankc) HDFC Bankd) Other Bank, Specify (_____________)Q. Are you aware of products & services provided by SBI?a) YESb) NOQ. If yes are you aware of the advance products (Loan segments) of SBI?a) YESb) NOQ. Which bank you prefer for taking loans?a) SBIb) ICICI Bankc) HDFC Bankd) Other Bank, Specify (_____________)Q. If you prefer SBI for taking loan than what influence you to take Loan from SBI?__________________________________________________________________________________________________________________________________________________________________________Q. Which loan product of SBI you have used?a) Home Loanb) Education Loanc) Car Loand) Personal Loane) Other Loans, Specify ( ______________ )Q. What do you feel about the services providing by SBI in advance product?a) Badb) Satisfactoryc) Goodd) ExcellentQ. Which features you like most in Loan segments of SBI?a) Less paper workb) Attractive interest ratec) Transparencyd) Simple & fast processinge) Flexibility to choose an EMI base loan or an overdraftf) Longer tenure lone for ease of repayment g) Specially design product for self employedh) Any other feature, specify ( _____________ )Q. Any suggestion you want to give for the betterment of SBI advance product.________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Bibliography:Text Books:

Solomon, Michael R. (2002), Consumer Behavior: Buying, Having, Being. 5th Ed.New Jersey: Prentice Hall

Wilson A. (2003), Marketing Research: An Integrated Approach

Naresh Ku. Malhotra, Marketing Research: An Applied Orientation, Fifth Edition

Internet: www.google.co.in www.sbi.com www.sbi.co.in www.bnet.com

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