Synopsis on the Study of Home Loans

8/18/2019 Synopsis on the Study of Home Loans

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SYNOPSIS ON THE STUDY OF HOME LOANS(In respect of State Bank of India)

INTRODUCTION

Need for the study:

Retail banking has been popular segment to enter into for many banks. In the retail banking,

housing sector has been most promising segment which is promising a Comprehensie growth

rate of about !" per cent for the ne#t fie years. $ith the goernment keen on infrastructure

deelopment and announcing arious ta# Sops housing loan segment has been a tempted area for

many banks to enter into housing sector can be bifurcated into organi%ed and unorgani%ed

segments with the unorgani%ed segments accounting for oer &' per cent of the housing units

constructed.

uring the past * ' years the housing sector helped by the growing housing finance industry

has witnessed significant deelopments.

Housin Fin!n"e E#!$u!tion:

+ousing eelopment inance Corporation (+C) was the first housing finance Company to

setup operations in India in -&&. /fter the 0ational +ousing Bank /ct, -1&, was passed 0+B

came into e#istence as a Subsidiary of the Resere Bank of India (RBI) to regulate housing

finance companies and proide them with refinancing to supplement their fund re2uirements.

3ublic sector banks were allowed to proide housing loans directly to retail clients only in -11.

4he home loan scheme of the State Bank of India is "The most Preferred Home

Loan Provider". It has been a successful product launched by bank5s retail assets diision.

4he home loan disbursement procedure followed by the bank has been undertaken.


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4he arious documents inoled and the details in taking a home loan hae also been highlighted

as a part of my study.

4he home loan segment has number of added e#tensions to its portfolio because of increased

competitieness among the +Is. /n attempt has been made to understand the arious

e#tensions and new concepts and the benefits e#tended by the banks.

A%out the Co&'!ny

State Bank of India is an Indian multinational, public sector banking and financial

services company. It is a government-owned corporation with its headquarters

in Mumbai, Maharashtra. s of !"#$-#%, it has assets of I&' !",$(,"(" crores and#),*** branches, including #+# foreign offices spread across *) countries, making it the

largest banking and financial services company in India by assets.

State Bank of India is one of the Big Four banks of India, along with III Bank, Bank of

Baroda and unab &ational Bank.

/he bank traces its ancestry to British India, through the Imperial Bank of India, to the

founding, in #("), of the Bank of alcutta, making it the oldest commercial bank in

the Indian Subcontinent. Bank of Madras merged into the other two 0presidency banks0

in British India, Bank of alcutta and Bank of Bombay, to form the Imperial Bank of

India, which in turn became the State Bank of India. 1overnment of India owned the

Imperial Bank of India in #+%%, with 'eserve Bank of India 2India3s entral Bank4 taking

a )"5 stake, and renamed it the State Bank of India. In !""(, the government took over

the stake held by the 'eserve Bank of India.

State Bank of India is a regional banking behemoth and has !"5 market share in

deposits and loans among Indian commercial banks.

https://en.wikipedia.org/wiki/Public_sectorhttps://en.wikipedia.org/wiki/Bankhttps://en.wikipedia.org/wiki/Financial_servicehttps://en.wikipedia.org/wiki/Financial_servicehttps://en.wikipedia.org/wiki/Government-owned_corporationhttps://en.wikipedia.org/wiki/Mumbai,_Maharashtrahttps://en.wikipedia.org/wiki/Big_Four_(banking)#Indiahttps://en.wikipedia.org/wiki/ICICI_Bankhttps://en.wikipedia.org/wiki/Bank_of_Barodahttps://en.wikipedia.org/wiki/Bank_of_Barodahttps://en.wikipedia.org/wiki/Punjab_National_Bankhttps://en.wikipedia.org/wiki/British_Rajhttps://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttps://en.wikipedia.org/wiki/Bank_of_Calcuttahttps://en.wikipedia.org/wiki/Indian_Subcontinenthttps://en.wikipedia.org/wiki/Bank_of_Madrashttps://en.wikipedia.org/wiki/Bank_of_Calcuttahttps://en.wikipedia.org/wiki/Bank_of_Bombayhttps://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttps://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttps://en.wikipedia.org/wiki/Government_of_Indiahttps://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttps://en.wikipedia.org/wiki/Bankhttps://en.wikipedia.org/wiki/Financial_servicehttps://en.wikipedia.org/wiki/Financial_servicehttps://en.wikipedia.org/wiki/Government-owned_corporationhttps://en.wikipedia.org/wiki/Mumbai,_Maharashtrahttps://en.wikipedia.org/wiki/Big_Four_(banking)#Indiahttps://en.wikipedia.org/wiki/ICICI_Bankhttps://en.wikipedia.org/wiki/Bank_of_Barodahttps://en.wikipedia.org/wiki/Bank_of_Barodahttps://en.wikipedia.org/wiki/Punjab_National_Bankhttps://en.wikipedia.org/wiki/British_Rajhttps://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttps://en.wikipedia.org/wiki/Bank_of_Calcuttahttps://en.wikipedia.org/wiki/Indian_Subcontinenthttps://en.wikipedia.org/wiki/Bank_of_Madrashttps://en.wikipedia.org/wiki/Bank_of_Calcuttahttps://en.wikipedia.org/wiki/Bank_of_Bombayhttps://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttps://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttps://en.wikipedia.org/wiki/Government_of_Indiahttps://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttps://en.wikipedia.org/wiki/Public_sector


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O()ECTI*E OF THE STUDY OF HOME LOANS

• 4he study was mainly conducted to understand the concept of home loan scheme and the

eligibility criteria of the customers.

• 4he study is done to understand the documents inoled in the home loan scheme and the

repayment methodology adopted by arious banks and the +C6s (+ousing inance

Corporations).

4he innoatie home loan schemes and the risk capturing mechanism adopted by the

+Is and the future of the home loan segment has been undertaken as a part of this study


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RESEARCH METHODOLO+Y

4he type of study is descriptie.

3rimary data and Secondary data are collected with help of bank employees.4hrough the help of web and past 78' years penetration rate and 2uestionnaire.

Li&it!tions of study:

• 4he study was restricted in understanding the home loan as concept so the practical

implications of the study hae been difficult.

• 4he innoatie features of the arious +Is as part of their home loan schemes but is not

a comprehensie study of their home loan schemes.

• 4he 4ake 9er home loans of high interest rate for low interest rates and their inherent

risks on the bank5s lending profile has not been undertaken in the study.

Synopsis on the Study of Home Loans

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