PowerPoint Presentation

Pricing for home loans by SBIPresented By :IshaKaran WadhwaKartik JainPrakhar LilhareNote on home loan scheme by SBIScheme details (Pricing of loan):Interest rate: 1st year (8%), 2nd & 3rd year (9%), 4th year (9.25%)

Retail loan processing cells for loan processing were created.Success of scheme depends on borrowers ability to repay.Repayment was seen from the context of net income.All EMIs payable by consumer were considered.Proposed EMI for SBI home loans was calculated at 9.25%Ratio calculation: (method for assuring that probability of a loan going bad is minimized) Ratio is calculated as sum of 3 EMIs divided by net monthly incomeLoan to value ratio was kept at 80%Success parameters such as regulations, law, profit and social acceptance were taken into consideration.Loan Disbursing procedureLead Generation & form filling, KYC details and Income Proof

CPC

Title search

Legal Report

Loan Sanctioning

Loan DisbursementStudy note continued..Rs. 32000 crore was disbursed in 7 months, which represented 84% of incremental home loan outstanding.Cross selling opportunity: 80% loan customers were new for SBI.Ground realities:Increase in turn around time (due to title search) from 7 days to 21 daysLot of complaints from customers.Efforts were made to reduce processing delays.

Home Loan Processing by a bankInitial contactChecklist of information and documentsInformation about borrowers asset Credit history of borrowerPreparation of legal documentsProcessing feesSanctioning and disbursement

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