Analysis of Home Loan Processing at UTI Bank

7/30/2019 Analysis of Home Loan Processing at UTI Bank

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Analysis of Home Loan

Processing At UTI Bank

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AHEAD

Objectives

Overview of Indian Banking Sector

Leading Banks in India

Line of Products

About UTI : Promoters, Mission & Values Procedure for distribution of Home Loans

Funding

Terms & Conditions Loopholes in the System

Suggestions for improvement

Reference & Source


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OBJECTIVES OF THE PROJECT

To know the overall scenario of banking sector. To know the working of the UTI - RAC.

To do a detailed analysis of procedures adopted forprocessing of home loan.

To find out loopholes, if any, in the working of theorganisation.

To find out the ways of improving the existing

procedure of processing of home loan. To develop ways of generating more business for the

organisation.


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LEADING BANKS IN INDIA

State Bank of India

ICICI Bank

Centurion Bank of Punjab

HDFC Bank

Axis Bank, HSBC, IDBI


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Promoters UTI, LIC & GIC

Mission Customer Service and Product Innovation tuned to

diverse needs of individual and corporate clientele.

Continuous technology upgradation while maintaining

human values.

Progressive globalization and achieving international

standards.

Efficiency and effectiveness built on ethical practices.

Values Customer Satisfaction

Maximisation of Stakeholders value

Success through Teamwork, Integrity and People

ABOUT UTI BANK :


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PROCEDURE FOR HOME

LOAN DISTRIBUTION

Determination of Eligibility

Credit Appraisal

Technical Appraisal

Legal Appraisal


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DETERMINATION OF

ELIGIBILITY

Salaried Individuals

Government employees

Employees of reputed private organisations Professionals

Doctors, Engineers, Architects

C.A., C.S., Cost Accountants Management Consultants

Self-employed Individuals


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CREDIT APPRAISAL

Income

Age

Assets & Liabilities Servicing record in respect of other

institutional borrowing

Savings history / capacity Number of dependants

Income & expenditure pattern


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TECHNICAL APPRAISAL

Layout & Approval Plan

Commencement Certificate, if applicable

Estimate of cost of construction

NOC for mortgage of property in case the

purchase is from the development authority

or any govt. allotted scheme.


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LEGAL APPRAISAL

Availability of all property documents

Allotment Letter / Sale Deed / Transfer Deed

Revenue Receipts Complete chain of title

Non-encumbrance Certificate

Verification of documents by anexperienced lawyer


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Funding

Construction

(85% funding)

Land Purchase

(75% funding)

Constructed

property

(85% funding)

Take over /balance transfer

(75% funding)

Purchase

+construction

(85% funding)


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TERMS & CONDITIONS

REPAYMENT Repayment period not to

exceed 20 years

SECURITY Equitable Mortgage

INSURANCE Free fire & personal accident

insurance cover

PROCESSING FEES 1% of the loan amount

PENALTY FOR

EARLY CLOSURE

2% in case of takeover

Otherwise : Nil


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LOOPHOLES IN THE

SYSTEM

Formalities and requirement for the

approval of loan are many which causes

delay in loan sanctioning

The policies & procedures for getting loan

are complicated.

Using Excel Worksheet causes delay in theprocedure.


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SUGGESTIONS FOR

IMPROVEMENT Use of specialized banking software instead of

excel worksheet.

Cutting down channel for approval of loan.

Regular checking of files to sort out pendency .

Tie-up with Builders as well as with Government

organizations.

Workshop for various categories like salaried,

employed, self employed.


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LAST BUT NOT THE LEAST


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Analysis of Home Loan Processing at UTI Bank

Documents

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