types of loan offered by sbi

8/2/2019 Types of Loan Offered by SBI

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UNIVERSITY OF MUMBAI

RAYAT SHIKSHAN SANSTHA‘S

KARMAVEER BHAURAO PATIL COLLEGE

VASHI, NAVI MUMBAI.

COLLEGE CODE – 33

PROJECT REPORTON

“TYPES OF LOAN OFFERED BY

STATE BANK OF INDIA”

SUBMITTED BY

SHILPA S. NIKAM.

PROJECT GUIDE………..…………………………

IN PARTIAL FULFILLMENT FOR THE COURSE OF

BACHELOR OF COMMERCE (BANKING & INSURANCE)

T.Y.B.Com. (Banking & Insurance) (SEMESTER V)

ACADEMIC YEAR 2011-12



ACKNOWLEDGEMENT

I, Shilpa S. Nikam would take this opportunity to thank the University of Mumbai

for providing me an opportunity to study on a project on Banking. This has been

a huge learning experience for me.

With great pleasure I take this opportunity to acknowledge people who have

made this project work possible.

First of all I would sincerely like to express my gratitude towards my Project

Guide …………………………. for having shown so much flexibility, guidance as

well as supporting me in all possible ways whenever I needed help. I am thankful

for the motivation provided by my Project Guide throughout and helped me to

understand the topic in a very effective and easy manner.

I would also like to thank the Principal Dr. Arvind Burungale and the Coordinatorof the course Prof. K.G.Tapase for his indirect support throughout.

I would also like to thank other teaching faculties of the college, my colleagues,

Library staff and other people for providing their help as and when required to

complete this project.

I acknowledge my indebtedness and express my great appreciation to all people

behind this work.

----------------

...............................................



DECLARATION

I, Shilpa S. Nikam student of KARMAVEER BHAURAO PATIL COLLEGE,

VASHI studying in T.Y.B.Com. (Banking & Insurance) in Semester V hereby

declare that I have completed this Project on Types Of Loan Offered By SBI. as

per the requirements of University of Mumbai as a part of the curriculum of

B.Com. (Banking & Insurance) course and this project has not been submitted to

any other university or Institute for the award of any degree, diploma etc. The

information is submitted by me is true and original to the best of my knowledge.

Date: ………………….. ………………….

Place: Vashi, Navi Mumbai.

……………………………….



CERTIFICATE

This is to certify that Shilpa S. Nikam. student of B. Com. (Banking &

Insurance) Semester V has completed this project on “Types of loan offered

by SBI.” and has submitted a satisfactory report under the guidance of

………………………… in the partial fulfillment of B.Com. (Banking & Insurance)

Degree Course of University of Mumbai in the academic year 2011-12.

………………… …..……….……… ……………….. Project guide Coordinator Principal

(…………………….) (Prof.K. G. Tapase) (Dr. ArvindBurungale)

………………………… University Examiner



(Page for Certificate from Industry)



Index

No. Topic Name Page

No.

1. Objective of study ....

2. Introduction

2.1 SBI loan policy

2.2 .Types of loan.

.....

.....

3. Personal loan

3.1 Saral Personal loan.

3.2 .Home loan.

3.3 .Education loan.

3.4. Car loan

3.5. Loan against property

3.6. loan to pensioners

3.7. Easy travel loan

3.8. Loan against share/ debenture

3.9. festival loan

.....

.....

.....

4. SME Scheme

4.1 .SNE open term loan.....

4.2 .Cycber plus...

4.3 .Rice mile plus.....

4.4 .Dental Doctor plus..

4.5.SBI shopee

4.6. School plus...

.....

.....

.....

.....



5. Aricutural loan.....................................

5.1 Agricultural gold loan..............................................

5.2 Kisan credit card

5.3.Produce mktg. loan.

5.4. Land purchase scheme..

5.5 Agricutural crop scheme.

5.6 Scorin model for tractor

loan..........................................

.....

.....

6. Conclusion .....

7. Bibliography .....



1. OBJECTIVE OF STUDY

This project is based on the study of various types of loan offered by bank

to our customer. everyone needs money at every stage of their lives. Sometimes

it is so that they are willing to want to buy your favorite things, but are unable to

buy due to lack of money. There is a question that someone who has a good

amount of money at that time was not right to see dreams? Do not allow them to

fulfill their desires on time? Should I stop dreaming? No, because it is the answer

to these questions. Loans are available for these purposes only.

Loans are granted to individuals for such critical circumstances that may

arise at any time. In the situation of anyone's life can come when you suddenly

need cash. It can be any type of emergency if you need huge amount of money.

There are different types of loans as mortgages, personal loans, student

loans, business loans, etc. You can take any type of loan you need. For each

type of need, there are funds available. Housing loans are available for general

home like buying a luxury car, going for a holiday trip, educational purposes,

home improvement, etc. Many of your desires can be satisfied by the loan.

Whatever type of loans, all have full facilities of its own. All types of loans

have their own importance. Above all, explains the need for monetary

significance of the loan.

OBJECTIVES

1. To present various types of loan offered by SBI to our customer.

2. To explain the advantages and purposes of SBI loan policy3. To present requirement, rate of interest, margin.

4. To show the schedule of repayment and proceeding fees.

5. To explain the SME scheme

6. To present the Agricultural loan are available for multitude of farming purpose.



2. INTRODUCTION

State Bank of India (SBI) is the largest Indian banking

and Financial service company (by turnover and total

assets) with its headquarters in Mumbai, India. It is

state-owned. The bank traces its ancestry to British

India through the Imperial Bank of India, to the founding

in 1806 of the Bank of Calcutta, making it the oldest

commercial bank in the Indian Subcontinent. Bank of

Madras merged into the other two presidency banks, Bank of Calcutta and Bank

of Bombay to form Imperial Bank of India, which in turn became State Bank of

India. The government of India nationalized the Imperial Bank of India in 1955,

with the Reserve Bank of India taking a 60% stake, and renamed it the State

Bank of India. In 2008, the government took over the stake held by the Reserve

Bank of India.

SBI provides a range of banking products through its vast network of

branches in India and overseas, including products aimed at non-resident Indians

(NRIs). The State Bank Group, with over 16,000 branches, has the largest

banking branch network in India. SBI has 14 Local Head Offices and 57 Zonal

Offices that are located at important cities throughout the country. It also has

around 130 branches overseas.

With an asset base of $352 billion and $285 billion in deposits, SBI is a

regional banking behemoth and is one of the largest financial institution in the

world. It has a market share among Indian commercial banks of about 20% in

deposits and loans. The State Bank of India is the 29th most reputed company inthe world. Also SBI is the only bank featured in the coveted "top 10 brands of

India" list in an annual survey conducted by Brand Finance and The Economic

Times in 2010.



The State Bank of India is the largest of the Big Four banks of India,

along with ICICI Bank, Punjab National Bank and HDFC Bank—its main

competitors. Associate banks

Main Branch of SBI at Mumbai.

SBI has five associate banks; all use the same logo of a blue circle and all the

associates use the "State Bank of" name, followed by the regional headquarters'

name

State Bank of Bikaner & Jaipur

State Bank of Hyderabad

State Bank of Mysore

State Bank of Patiala

State Bank of Travancore

Earlier SBI had only seven associate banks that constituted t State Bank

Group. Originally, the then seven banks that became the associate banks

belonged to princely states until the government nationalized them between

October 1959 and May 1960. In tune with the first Five Year Plan emphasizingthe development of rural India, the government integrated these banks into the

State Bank of India system to expand its rural outreach. There has been a

proposal to merge all the associate banks into SBI to create a "mega bank" and

streamline operations.[8]

The first step towards unification occurred on 13 August 2008 when State

Bank of Saurashtra merged with SBI, reducing the number of state banks from

seven to six. Then on 19 June 2009 the SBI board approved the merger of its

subsidiary, State Bank of Indore, with itself. SBI holds 98.3% in State Bank of

Indore.

The acquisition of State Bank of Indore added 470 branches to SBI's existing

network of 12,448 and over 21,000 ATMs.

http://en.wikipedia.org/wiki/State_Bank_of_India#cite_note-7






2.1 State Bank Of India Loans Policy

State Bank of India‘s loan policy is directed towards fulfilling the Bank‘s

vision ‗Customer first and first in customer satisfaction‘. Loan Policy aimed ataccomplishing Bank‘s mission to create products and services that help our

customers achieve their goals. It will, inter-alia, facilitate service excellence to

customers across the country as well as to those residing abroad.

The Loan Policy of the Bank, at a holistic level, is an embodiment of the

Bank‘s approach to sanctioning, managing and monitoring credit risk and aim at

making the system and control effective. It is guided by the best practices of

commercial prudence, the highest standard of ethical norms and requirement of

national priorities.

State Bank of India loans come with truly affordable rates and flexible

repayment terms. The terms and conditions are excellent and have been

designed to suit the borrowers‘ needs. Loan programs are available from State

Bank of India to meet the requirements of individual customers, corporate clients,

small and medium enterprises, Non resident Indians, export and import

businesses and agriculturists. Given below are the different types of loan

products offered by State Bank of India loans.

http://news.reliablefinancesolutions.com/2010/11/state-bank-of-india-loans.html





3. Personal Loan

SBI Personal Loan

Saral Personal Loan Loan to Pensioners

Home Loan Teacher Plus Scheme

Education Loan Loan Against Share & Debenture

Car Loan Festival Loan

Loan Against Property Tribal-Plus Scheme

Easy Travel Loan Credit Khazana



3.1 SBI Saral Personal Loans

A personal loan is the one that establishes consumer credit that is

granted for personal use; usually unsecured and based on the borrower's

integrity and ability to pay consumer loan. A personal loan is an unsecured

loan, meaning the borrower does not put up any collateral or security to

guarantee the repayment of the loan. A loan, whether a personal loan or

another type of loan, is typically used to finance a large, one-time purchase or

expense. The borrower is given all the money at once and agrees to pay back a

certain amount per month until the debt is repaid.

SBI provides SBI Saral personal loan to help you in meeting any kind of

personal expenses whenever you need it to meet your requirements. Loan is

provided at low interest rates, no hidden costs or administrative charges, no

prepayment penalties and comfortable repayment tenure.

SBI Saral Personal Loan : Advantages

Low interest rates. Further, we charge interest on a daily reducing balance

Low processing charges; only 2%-3% of loan amount

No security required

minimal documentation

No prepayment penalties. Reduce your interest burden and optimally

utilize your surplus funds by prepaying the loan (1% of the loan amount

will be charged if you repay the loan before 6 months)

Long repayment period of up to 48 months

SBI Saral Personal Loan: Purpose

The loan will be granted for any legitimate purpose whatsoever like 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.



Highlights

Salaried Self Employed

Loan Scheme SBI Saral Personal Loan SBI Saral Personal Loan

Loan Types Term Loan Term Loan

Loan Amount Max. Loan: 12 times the

monthly income

Max. Loan: 12 times the

monthly income

Tenure Minimum – 12 months.

Maximum – 48 months.

Minimum – 12 months.

Maximum – 48 months.

Interest Rate 18.5% p.a 18.5% p.a

Time to Process Loan 2 days. 2 days.

Processing Fees 2-3% of loan amount 2-3% of loan amount



Eligibility Criteria

Loan Amount Documents Required

Resident Indian

National

2.50 lakhs in Non Metros

5 lakhs in Metros up to

10 lakhs where salaried

or current account is with

SBI. It is determined by

your repayment capacity.

Minimum Income:

Rs.24,000/- in metro and

urban centres Rs.10,000

In rural/semi urban

Centres.

Max. Loan Amount:12 times Net Monthly

Income for salaried

Individuals & pensioners

Subject to a ceiling of Rs.

10 lakhs in all centres.

1).Passport size photograph

2).Proof of official address for

self employed individuals

and professionals. This

can include shop and

establishment certificate/

Lease deed/Telephone bill

3).Latest Salary clip and Form

16, in the case of salaried

persons.



HOME LOAN



3.2 Home Loan

Now a day, as the country is developing, the standard of living is also

improving. Through it is becoming difficult to afford luxury due to the heavy cost

involved, still people are demanding for the same. The demand is usually fulfilledby the loan taken by them various blending institutions. Hence, all areas of

expenditure of an individual can be financed by personal loan. The amount of

loan borrowed is usually higher than the amount required for a particular project

which is to cover other additional expenses. It can be a loan needed construction

of homes buying of luxuries items or planning a trip abroad. Banks are giving

tough competition to each other in this field by varying the interest rates and

favorable term of loans. Hence attracting customers to avail his facility of loan,

credit card etc.One such loan which is very common a day is home loan which is

usually taken by the borrowers on behalf their salaries.

The State Bank of India, or SBI, is one of the earliest banks of our

country and still respected by its competitive private counterparts. Like

various other companies financing for your Home loans, the SBI has

developed its own Home loan policies. The SBI Home loans have been

formulated, especially with the knowledge of the basic needs of our

nation‘s people and are quite thrifty.

The SBI Home Loan is available under various schemes and offers

attractive interest rates.



SBI Home Loan Process:

The first and foremost thing that comes in a home loan process is

organizing your documents. It is highly recommended that you organize all

Your income statements before you buy or refinance your home loan.

You are required to provide two years W-2 along with one month of

paystubs if you are salaried. But if you are self employed, you need to

provide two years tax returns along with YTD profit and loss statement.

The second most task which you should do in a home loan process

is to get qualified. This step can help you in a great deal to understand the

Initial LoanApplication

Underwriting

Processing

Funding

LoanDocuments

Credit Report

Appraisal Title

Open Escrow



amount which you can borrow before you start a home loan process. You

should get a pre-approval rather than a pre-qualification before applying a

home loan. Make sure that that you find the maximum house you can buy

rather than wasting time by looking at properties which you can afford.

This also helps you in getting a close quickly as your loan is already

approved.

One more thing you should keep in mind while in a home loan

process is to shop for loan programs and rates. You should compare

different programs available with different banks. It is true that shopping

for a home loan can be difficult because there are so many programs from

which you have to choose. Each of the different programs has different

interest rates, points and fees. You can take the help of an experienced

loan officer who can help you to make a right decision which is best for

you.

After the home loan gets approved, make sure to close the loan by

properly signing the final loan documents and review them properly. Don‘ t

forget to check that the loan terms and interest rates are same on thefinal documents which you were promised.

Purposes:

1. Purchase/ Construction of House/ Flat

2. Purchase of a plot of land for construction of House

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

4. Purchase of Furnishings and Consumer Durables as a part of the

Project cost.

5. Takeover of an existing loan from other Banks/ Housing Finance.



SBI Home Loan Unique Advantages:

1. Package of exclusive benefits.

2. Low interest Rate, further we charge interest on a daily reducing

balance.

3. Low processing charges

4. No hidden costs or administrative charges.

5. No repayment penalties, reduce your interest burden and optimally

utilize your surplus funds by prepaying the loan.

6. Over 13700 branches nationwide, you can get your home loan account

parked at a branch nearest to your present or proposed residence.

FEATURES

1) Eligibility:

Minimum age: Minimum age 18 years as on the date of sanction

Maximum age: 70 years i.e. the age by which the loan should be

fully repaid, subject to availability of sufficient, regular and

Continuous sources of income for servicing the loan repayment.

2) Loan Amount

Actual loan amount will be determined taking into consideration such factors

as applicants income and repaying capacity, age, asset and liabilities, cost of

the proposed house/ flats etc. to enhance loan eligibility you have option to

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

Expected rent accruals (less, taxes, cases, etc.) if the house/ flat being is

proposed to be rented out.

Depreciation, subject to some conditions.

Regular income from all sources.



3) Security:

Equitable mortgage of the property

4) Margin/ LTV Ratio:

loan Amount Margin (Min.) Maximum LTV Ratio (Max.)

Upto Rs. 20 Lakhs 10% 90%

Above Rs. 20Lacs. 20% 80%

5) Interest rate:

All rate are floating only.

(Base Rate = 10.00% p.a. )

Loan Amount Linkage with Base Rate over the

tenor of the loan

Effective Rate

Upto Rs. 30 lakhs 0.75% above Base Rate 10.75% p.a.

Above Rs.30 lakhs

and upto Rs. 75

lakhs

1.00% above Base Rate 11.00% p.a.

Above Rs. 75.

lakhs

1.25% above Base Rate 11.25% p.a.

No fixed rate option in any limit bracket.



6) Processing fees:

It is payable at the time of documentation only.

Loan Amount Processing Fee

Upto Rs. 25 Lacs 0.25% of loan amount

Above Rs. 25 Lacs and upto Rs.

75 Lacs

Rs. 10,000/-

Above Rs. 75 Lacs Rs. 20,000/-

NOTE

1) Actual charges for the following will be payable by the customer in

addition to the processing fee:

a) Pre-sanction

(i) Advocate's fee for property search and the title investigation report.

(ii) Valuer's fee for valuation report.

b) Post-sanction

(i) Stamp duty payable for Loan agreement & mortgage.

(ii) Property insurance premium.

(iii) Processing fee recovered.

Pre-closure / Pre-payment Penalty - NIL

7) Repayment:

Repayment period:

Maximum 25 years (or) Up to the age of 70 years (the age by which the

loan should be fully repaid) of the borrower, whichever is early.

Moratorium period (Repayment holiday):

The moratorium period is included within the maximum repayment period.



8) Document required:

list of papers/ documents applicable to all applicants:

Completed loan application

3 Passport size photographs Proof of identify (photo copies of Voters ID card/ Passport/ Driving license/

IT PAN card)

Proof of residence (photo copies of recent Telephone Bills/ Electricity Bill/

Property tax receipt/ Passport/ Voters ID card)

Proof of business address for non-salaried individuals

Statement of Bank Account/ Pass Book for last six months

Signature identification from present bankers

Personal Assets and Liabilities statement

For guarantor (wherever applicable):

Personal Assets and Liabilities Statement

2 passport size photographs

Proof of identification as above

Proof of residence as above

Proof of business address as above

Signature identification from his/her present bankers

Additional documents required for salaried persons :

Original Salary Certificate from employer

TDS certificate on Form 16 or copy of IT Returns for last two financial

years, duly acknowledged by IT Debt.

Additional documents required for Professionals/self-employed / other

Acknowledged copies of three years I.T. returns/ Assessment Orders.

Photocopies of challans evidencing payment of Advance Income Tax.



3.2 Education Loan

EVER increasing demand for education loan can be analyzed from the

fact that the expenses of higher education has become unbearable and which

has now become a necessity. Due to this many institution have come forwardwith a view to provide financial help to students .These institutions provide better

opportunities to students to avail the required finances .These finances enable

the students to compete their education without any hindrance. Students even

ensure a lucrative future for themselves as many companies are coming up

these days which demand qualified students and offer them high position and

handsome salaries and other benefits. Education loans covers a wide variety of

expenses. It not only helps in meeting the tuition fees but also the others benefits

like hostel fee, expenses of books and all other expenses related to education

A term loan granted to Indian Nationals for purchasing highereducation 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 courses approved by UGC/ Government/ AICTE etc.

Expenses considered for loan

Fees payable to college/ school/ hostel.

Examination/ Library/ laboratory fees.

Purchase of books/ Equipment / Instruments/ Uniforms.

Caution deposits/ Building fund/ Refundable deposit (maximum 10% tutionfees 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. 50000 /-



Amount of Loan:

For studies in India, maximum Rs.10 lakhs.

Studies abroad, maximum Rs. 20 lakhs.

Interest Rates:

Base Rate : 10.% p.a. ( 13. 08. 2011 )

SBI Student Loan Scheme

Loan Amount Rate Of Interest

Loan upto Rs.4 lakhs 3.75% above base rate,

currently 13.75% p.a.

Loan above Rs. 4 lakhs and upto Rs.

7.50 lakhs

5.25% above base rate,

currently. 15.25% p.a.

Loan above Rs. 7.50 lakhs 4.25% above base rate,

Currently 14.25% p.a.

An Interest Rate concession of 0.50% to Girl Student availing student loan.

Processing Fees:

No processing fees/ upfront charges

Deposit of Rs. 5000/- for education loan for studies abroad which will beadjusted in the margin money.



Repayment Tenure:

Repayment will commence one year after completion of course or 6 month after

securing a job, whichever is earlier.

Place of Study Loan Amount Repayment period in years

Studies in India Rs. 10 lakhs 5 – 7

Studies in Abroad Rs. 20 lakhs 5 - 7

Security:

Amount For loan upto Rs. 10 lakhs for studies in India and up

to Rs. 20 lakhs for studies abroad.Upto Rs. 4 lakhs No security

Above Rs. 4 lakhs to

Rs. 7.50 lakhs

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 networth/ means of parents who

would be executing the documents as ―joint borrow‖

Above Rs. 7.50 lakhs

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 borrow,

In case of married person, co-obligator can be either spouse or the parents/

parents-in-law.

Margin

For loans upto Rs. 4 lakhs : No margin

For loan above Rs. 4 lakhs:

o Studies in India : 5 %

o Studies Abroad : 15%



Documentation Required:

1. Completed Education Loan Application Form.

2. Mark sheet of last qualifying examination.

3. Proof of admission scholarship, studentship etc.

4. Schedule of expenses for the specified course

5. 2 passport size photographs

6. Borrowers bank account statement for the last 6 months

7. Income Tax assessment order, of last 2 years

8. Brief statement of assets and liabilities, of the co-borrower

9. Proof of Income (I.e. Salary slips/ Form 16 etc.)



CAR LOAN



3.4 Car Loan

Car or Auto loan as the name signifies are various loans taken to buy

your dream vehicle. Move ahead in life with SBI Car loans! If you have been

putting off purchasing that car, we invent you to go through our Car LoanScheme.

Low interest rates, easy repayment options, total transparency.

Finance to include vehicle registration charges, insurance, one-time road tax and

accessories(subject to conditions).

Advantage of Car Loan

Excellent service and lower costs. A quick survey of similar schemes

available elsewhere and you will find that SBI Car Loans for new and old vehicle

offer you:

1. Lower interest rates

2. Longer repayment period of unto 84 months.

3. No hidden costs or administrative charges.

4. Finance for one-time road tax, registration fee, insurance premium

and accessories.

5. No advance EMIs,(some banks/companies ask you to pay one or more

EMIs at the of disbursement of loan, thereby effectively reducing your loan

amount)

6. Complete transparency : We levy interest on daily reducing balance

method. When you pay one instalment, the interest is automatically

calculated on the reduced balance thereafter.when you pay interest on

annual reducing balance ,as charged by many other companies/banks,the interest amount for the coming year is determined on the amount

outstanding at the beginning of the you.You continue to pay interest even

on the amounts you repay during the year.

http://www.finance-strategy.com/auto-loans.html

http://www.finance-strategy.com/auto-loans.html



Purpose

You can take finance for :

1. A new car, jeep or Multi Utility Vehicles (MUVs)

2. A used car / jeep (not more than 5 years old). (Any make or model).

3. Take over of exiting loan from other Bank/Financial Institution.

Eligibility

To avail an SBI Car Loan, you should be :

1. Individual between the age of 21-65 years of age.

2. A Permanent employee of State / Central Government, Public

Sector

3. Undertaking, Private company or a reputed establishment or

4. A Professionals or self-employed individual who is an income tax

assesses or

5. A Person engaged in agriculture and allied activities.

6. Net Annual Income Rs. 100,000/- and above.

Salient Features

Loan 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 in the 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 of Rs. 15 lakhs.

Type of Loan:

1. Term Loan

2. Overdraft -



Documents Required

You would need to submit the following documents along with the

completed application form if you are an existing SBI account holder:

Statement of Bank account of the borrower for last 12 months.

2 passport size photographs of borrower(s).

Signature identification from bankers of borrower(s).

A copy of passport /voters ID card/PAN card.

Proof of residence.

Latest salary-slip showing all deductions

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.

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.

Margin:

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

Repayment

You enjoy the longest repayment period in the industry with us.

Repayment period:

For Salaried Self-employed & Professionals

Maximum of 84 months. Maximum 60 months.

Repayment period for used vehicles : 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 conditions.

Interest Rate:

SBI Car Loan Scheme

SL.

No

PARAMETER

SCHEME DETAILS

1 Applicable to All New Car Loans to Public

2 Interest Rate

At present the following Interest rates are

applicable:

For Term Loan:

1.25% above Base Rate, i.e. 11.25% p.a.

For Overdraft:

OD will attract 0.50% more than the existing rate

for Term loans.

NRI Car Loan Tenure Rate of Interest

For all tenures 1.25% above Base Rate i.e. 11.25% p.a.



Two- Wheeler Loan

Tenure Rate of Interest

Up to 3 years 8.25% above Base Rate i.e. 18.25% p.a.

Used Vehicles



Above 3 yrs7.50% above Base Rate i.e. 17.50% p.a.

Certified Pre-owned Car Loan scheme



Above 3 yrs6.50% above Base Rate i.e. 16.50% p.a.

Processing Fee

0.50% of Loan amount and to be paid up front.

Minimum: Rs. 500/-

Maximum Rs. 10,000

25% of Processing fee will be retained if application is rejected after pre-

sanction survey.



3.4 Loan Against Property

A dream come true! An ALL PURPOSE LOAN for anything that life

throws up at you!! Do you need funds for a Marriage ceremony, want to

take your family to a well-deserved holiday or for a sudden medicalemergency? you have some property, but would rather not sell it? Then

why not avail of this ALL PURPOSE LOAN from SBI? SBI now makes it

very much possible for you to only keep your property but also have

liquid funds.

Enjoy the SBI Advantage

Complete transparency in operations.

Access this loan from our wide network of branches.

Interest rates are levied on a monthly/daily reducing balance

method .

Lowest processing charges.

Long repayment period of months, up to 120 months for salaried

Individuals.

with check-off facility

No Hidden costs or administrative charges.

No prepayment penalties. You can have surplus funds at any time

thereby Conveniently reducing your loan liability and interest

burden.

Property Loan Scheme

Avail of an All-Purpose loan against mortgage of any of your

property. We offer you these loans at all our Personal Banking Branches

and those branches having Personal Banking Divisions amongst others.



Purpose:

This is an all purpose loan, i.e., the loan can be obtained for any

purpose Whatever. If amount of loan is Rs.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.

Eligibility:

You are eligible if you are:

A. An individual who is;

a. An Employee or

b. A Professional, self-employed or an income tax assesses 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 FeaturesLoan Amount:

Minim um : 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)

Margin:

We will finance upto 60% of the market value of your property.



Interest:

Size of Credit Limit

(Term Loan) Rate of Interest

Upto Rs. 1,00,00,000/- 5.25% above Base Rate Floating, currently15.25% p.a.

Above Rs. 1,00,00,000/- 5.50% above Base Rate Floating, currently

15.50% p.a.

No Overdraft against Mortgage of Property

Repayment:

Maximum 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.

Processing Fees:

2% of the loan amount [inclusive of the service tax]. Max of Rs. 50,000/-

Security:

As per banks extant instructions.



EASY TRAVEL LOAN Travel Loan, Loan for tour

http://2.bp.blogspot.com/_6O17yYm1eMM/SNyxwqYxp2I/AAAAAAAAAFg/iZicRdoXSSI/s1600-h/flight+for+travel+plus.jpg



3.5 Travel Loan

Do you want funds readily available to you whenever you desire to go on a

vacation that you plan with your family or friends? SBI's Easy Travel Loan is the

Answer to your questions. Enjoy the SBI Advantages:1. Low interest rate. Further, SBI charge interest on a daily reducing balance!!

2. Low processing charges, only 1% of loan amount.

3. Complete transparency. No hidden cost or administrative changes.

4. No security required ……which means minimal documentation…something

that you had always wanted.

5. No prepayment penalties. Reduce your interest burden and optimally utilize

your Surplus funds by prepaying the Loan.

6. Long repayment period of up to 48 months.

The Scheme Purpose

To meet any kind of Travel expense such as cost of ticket, hotel stay, visa,

Airport tax, purpose of Basic Travel Quota, etc.

Eligibility

You are eligible if you are:

1. A State/Central Govt. Employee, employee of public sector undertaking/

reputed profit making public limited company, reputed institutions, MNC

with a minimum service experience of 2 years.

2. A self employed professional, with a minimum 2 years standing. You

Should be 60 years of age or less.

3. A Pensioner of PSU/Govt. (Central/State)/Public Sector Bank who has

taken premature voluntary retirement and is 60 years of age or less

4. Agent of insurance/KVP/Mutual funds etc. with 3-5 years standing who is

a tax assesse and whose gross annual income exceeds Rs. 2 lacs.



5. A trader, who has cash flows to repay the loans and can provide suitable

third party guarantee, you should restrict your banking requirements to the

Branch where the loan is proposed to be taken.

Salient Features

Loan Amount:

Your personal loan limit would be determined by your income and

repayment capacity.

Minimum: Rs.24,000/- Maximum : 12 times Net Monthly Income for salaried

Individuals and pensioners and 1 year's net annual income in case of self

employed professionals with the under noted ceilings.

For Salaried individuals and self employed professionals:

Rs.2.5 lakhs (Rs.5 lakhs in New Delhi, Chennai, Bangalore, Hyderabad, Mumbai

and Kolkata and can be further increased to Rs.10 lakhs if the self-employed

professional maintains a satisfactorily conducted account with our branch or the

salary of individual is regularly credited to their account with our Bank)

For pensioners : Rs.1.5 lakhs

For members of business community: Rs.3.0 lac or 1 year‘s net annual profit

During the preceding financial years, whichever is lower.

Documents Required

For existing bank customer:

1. Copy of the passport ( for overseas travelers )

2. Copies of Rail-tickets/Bus tickets/Air tickets and visas(for overseas

travellers)

3. Sundry charges etc.

4. Passport size photograph

5. For salaried individuals Latest salary slip and Form 16, for Self-employed

6. individuals and Professionals IT returns for the last two financial years.

Proof of Professional Qualification (for self employed professionals)

7. Copy of the highest professional degree held.



For New Customer:

Important documents to be furnished while opening a Personal Loan Account:

1. Proof of Identity.

2. Copy of passport

3. Copies of Rail-tickets/Bus tickets/Air tickets and visas.

4. Sundry charges, etc

5. Passport size photograph

6. For salaried individuals Latest salary slip and Form 16 for Self-employed

7. individuals and Professionals IT returns for the last two financial years.

Proof of Residential address, this can include home and establishment

certificate/Lease deed/Telephone Bill.

8. Proof of Professional Qualification (for self employed professionals)

Copy of highest Professional degree held Proof of official address (for

members of business community),this can include shop and establishment

certificate/Lease deed/Telephone Bill.

Margin:

We do not insist on any margin amount.

Interest Rates:

3.25% above SBAR Floating i.e.17.00% p.a.

Repayment:

The loan is repayable in a maximum of 48 EMI. You are allowed to pay more

than the EMI if you wish to, without attracting any prepayment penalty.

Security:

No security is needed except in the case of members of business community

where suitable third party guarantee is required.



3.6 Teacher-Plus Scheme

“The mediocre teacher tells. The good teacher explains. The

superior teacher demonstrates. The great teacher inspires."

~ William Arthur Ward

Enjoy the SBI advantage :

1. Concessions in margin amounts, interest rates and processing

charges!!

2. Lowest interest rates. Further, we charge interest on a daily

reducing balance!!

3. Lowest processing charges; only 1% of loan amount - compare

with 1-3% of others.

4. No hidden costs or administrative charges..

5. No prepayment penalties. Reduce your interest burden and

optimally utilize your surplus funds by prepaying the loan.

6. Flexible repayment period.

The Scheme

SBI recognizes the special position sanctioned for teachers in our

society and is proud to introduce Teacher Plus - a special scheme for

teachers placed under State and Central Governments as also under the

deemed universities. Through Teacher Plus, you can avail of concessions

in the rates of interest, processing charges and margin amounts in the

following schemes :

Personal Loan

Car Loan

Festival Loan

Housing Loan



Eligibility:

This scheme is open for all teachers placed under State and Central

Governments as also under the deemed universities.

Documents Required:

As applicable to Personal loan, Car loan, Festival loan and Housing loan

schemes.



3.7 Loan To Pensioners:

If you are a Central or State Government pensioner drawing your pension

through one of our branches and are not more than 72 years of age, you can

avail of a loan from your branch to meet your personal expenses. Weunderstand you may have an urgent or unexpected need for funds or a family

obligation to be fulfilled and appreciate your association with us.

You can avail a loan of up to a maximum of 12 months pension, subject

to a ceiling of Rs.1,00,000. The documentation is easy.

There are no processing fees, no hidden costs and no prepayment

penalties. Whenever you have some surplus funds, you can credit your loan

account, thereby reducing your loan liability and interest burden.

Purpose:

To meet personal expenses .

Salient features of the Scheme:

Eligibility:

1. Pensioners:

All Central and State Government pensioners, whose pension accounts are

maintained by our branches. The pensioner should not be more than 72

years of age.

2. Family Pensioners:

Family pensioner, i.e. spouse authorized to receive pension after the death

of the pensioner, subject to condition that family pensioner should not be

more than 65 years of age.



Loan Amount:

1. Pensioners: A maximum of 12 months pension with a ceiling of Rs.3 lakhs

2. Family Pensioners: A maximum of 9 months net family pension with a

ceiling of Rs.1.50 lakhs. In no case the EMI should be more than 25% of

the net pension drawn by the family pensioner.

Collateral Security:

Pensioners: Third party guarantee (TPG) of the spouse eligible for family

pension. In the absence of the spouse, TPG of any other family member or a

third party worth the loan amount.

Family Pensioners: Third party guarantee of a person who has been maintaining

a satisfactorily conducted account with the bank, preferably of the son/daughter

of the family pensioner.

Repayment:

In EMIs commencing from the pension payable one month after disbursal of loan.

Installment is deducted at the time of payment of pension:Age at the time of loan

sanction

Repayment Period Age at the time of full

repayment

Up to 70 years 36 months 73 years

70-72 years 24 months 74 years

Rate of Interest:

4.75% above SBAR Floating i.e. 14.75% p.a.



3.8 Loan Against Shares \ Debenture

Do you need urgent cash but you don't wish to sell or liquidate your holding

of shares? Leverage your investments in shares, debentures, public sector

bonds and Government securities for loans to meet unforeseen expenses!! Youneed not miss out on the next stock market boom!!

Avail of loans up to Rs.20.00 lakhs against your shares/debentures to enable

you to meet contingencies, personal needs or even for subscribing to rights or

new issue of shares.

Enjoy the SBI Advantages:

Low interest rates. Further, we charge interest on a daily reducing balance

Low processing charges; only 1% of loan amount - compare with 1-3% of

others.

No hidden costs or administrative charges..



THE SCHEME

Purpose

For 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 lakhs against your shares/debentures. Margin:

You 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.)

Interest Rate:

Scheme Rate of Interest

Equity Plus Scheme 6.50% above Base Rate, currently

16.50% 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 lakhs, the

shares/debentures will be transferred in the name of the Bank.

Security:

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



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.

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/ debentures



3.9 FESTIVAL LOANS

It is the festive season is the unavailability of ready funds, dampening the

celebrations? Avail of SBI's Festival Loan and bring back the cheer and celebrate

in style Hurry, the gifts and the sweets are waiting…. SBI offers the unique facilityof Festival Loans to help you meet any kind of festival related expenses.

Enjoy the SBI Advantage :

Low interest rates, currently 15.50% p.a.(compare with the 18.00% - 30%

p.a. charged by others for personal loans/credit card companies.)

Low processing charges; 1.10% of loan amount(inclusive of service tax)

per application.

No hidden costs or administrative charges.

No security required if check off is available….. which means minimal

documentation…. something that you had always wanted.

No prepayment penalties.

Repayment period of upto 12 months.

Complete Transparency.

THE SCHEME

Purpose:

To meet any kind of festival related expenses.

Eligibility :

A net monthly income of Rs.3000/- and above.

Spouse‘s income can also be considered in calculating the loan amount

provided he/she guarantees the loan or the loan is taken jointly.An Employee of Govt., PSUs, profit making public/private limited

companies/ institutions etc with a minimum of 2 years service OR

Self employed person with minimum 3 years standing/experience OR



A person having regular source of income from verifiable channels like

Pension

and interest from TDRs/NSCs/Govt. Securities etc

Loan Amount

Your festival loan limit would be determined by your income and

repayment capacity.

Minimum Rs.5000/-

Maximum : 4 times your Net Monthly Income, subject to a ceiling of

Rs.50,000/-.

Interest Rates:

6.75% above Base Rate, currently 16.75% p.a.

Repayment:

You can repay the loan over a period of 12 months through Equated

Monthly Installments (EMI). Should you wish to deploy your surplus funds

towards prepayment of the loan, feel free to do so without any prepayment

penalty.

Security:

Personal guarantee of the spouse or any other person of adequate worth

where check off facility is not available.

Processing Fee :

You need to pay only a nominal processing fee of 1.10% of the loan amount.



Documents Required:

Passport Size Photograph

Proof of official address for self employed individuals and professionals. This can include shop and establishment certificate/Lease

deed/Telephone Bill.

Latest Salary Slip and Form 16, in the case of salaried persons IT returns

for the last two financial years, in the case of self employed individuals

and professionals



3.9 Tribal-Plus Scheme

The scheme is a special Housing finance scheme for Hill/ Tribal areas of

North East India and areas around Chandigarh, Bhopal, Lucknow, Patna and

Bhubaneswar.Advantages:

Lowest interest rates. Further, we charge interest on a daily reducing

balance!!

Lowest processing charges; only 1% of loan amount - compare with 1-3%

of others.

No hidden costs or administrative charges..

No security required - which means minimal documentation…something

that you had always wanted.



The Scheme

The Tribal Plus is a special to provide housing finance for Hill/Tribal areas

without mortgage of land.

Loans will be granted to individuals to:

Purchase or construct a new house or flat.

Purchase an existing house or flat (old) that is not more than 10 years old.

Repair or extend or renovate an existing house or flat.

Eligibility:

Individual(s) over 21 years of age (but not more than 60 years) who are

permanent employees of Central or State Government or Public Sector

undertakings (PSU) or reputed private sector units and have put in a

minimum of 5 years service as Class I or Gazetted Officers or 10 years for

other grades.

Check-off facility should be available.



This scheme is open to tribals hailing from the hill states of North East

India and areas around Chandigarh, Bhopal, Lucknow, Patna, and

Bhubaneswar. They can avail this scheme from SBI branches in these

areas.

If they are not currently living in these areas, they can still avail of the

scheme for a housing loan to be used at their native village!\

Salient Features:

1. Loan Amount

The maximum loan amount will be calculated on the basis of 24 times the net

monthly income (NMI) of the applicant subject to a maximum of Rs.5.0 lacs. The

income of the spouse can also be considered for this purpose provided he/she is

a permanent employee of Government / PSU / Private Sector unit and is willing

to guarantee the loan.

2. Margin

A minimum margin of 25% is envisaged.

3. DisbursementDisbursements will be made in a phased manner in tune with the actual

progress in the construction. However, in case of outright purchase of house,

there could be a one-time disbursement of the loan amount.

4. Repayment Schedule:

The loan is to be repaid over a period of 10 years through Equated Monthly

Installments. The repayment period will include the moratorium or repayment

holiday, at the option of the beneficiary, covering the construction period or 12

months from disbursement of the first instalment of the loan, whichever is earlier.

As with all our schemes there is no prepayment penalty whatsoever!



5. Security:

As per bank's extant instructions.

6. Processing Fess:

0.25% of the loan amount.

7. Document Required:

In addition to the usual documents, under noted documents or papers will also be

obtained:

Affidavit sworn by the applicant that he/she is the owner of the plot of land.

Post-dated cheques representing monthly installments may also be taken

till the loan is liquidated.

In specific cases, an agreement to mortgage the land may also be

required.



3.10 Credit Khazana

The "SBI Credit Khazana" Scheme offers Housing Loan customers,

concessions in interest rates and margins when they subsequently avail of any of

the following loans: Car Loan, Scoom, Education Loan, Personal Loan, Tractor

Loan.

1. Eligibility:

Housing Loan customers who have serviced the loan regularly for at least

one year and where Equitable Mortgage has been created.

2. Concession in Interest:

There will be a concession of 0.25% in interest when any of the above

mentioned loans are availed.

3. Concession in Margin:

There will be a concession of 10% in case of Car Loan and 5% in case of

Tractor Loan. Under the SCOOM Scheme, the margin has been maintained at

5%.

4. Security

The security required to be taken under the individual schemes would be

taken and additionally, the Equitable Mortgage taken for the Housing Loan would

be extended to cover the new loan(s).

5. Insurance

Free accident insurance cover (to cover death only) is available in case

of Car Loan.



6. Other terms & Conditions:

Other terms & conditions like Amount of Loan, Repayment,

Documentation will be the same as those laid down for the individual schemes.



SME SCHEME



4. SME SCHEME

Business loan

SME Open Term Loan

Cyber Plus

Rice Mile Plus

Dental Doctor Plus

SBI Shoppe

School Plus



Small and medium-sized enterprises (SMEs) are the backbone of all

economies and are a key source of economic growth, dynamism and flexibility in

advanced industrialized countries, as well as in emerging and developing

economies. SMEs constitute the dominant form of business organization,

accounting for over 95%and up to 99% of enterprises depending on the country.

They are responsible for between 60-70% net job creations in Developing

countries. Small businesses are particularly important for bringing innovative

products or techniques to the market. Microsoft may be a software giant today,

but it started off in typical SME fashion, as a dream developed by a young

student with the help of family and friends. Only when Bill Gates and his

colleagues had a saleable product were they able to take it to the marketplace

and look for investment from more traditional sources

SMEs are vital for economic growth and development in both

industrialized and developing countries, by playing a key role in creating new

jobs. Financing is necessary to help them set up and expand their operations,

develop new products, and invest in new staff or production facilities. Many small

businesses start out as an idea from one or two people, who invest their own

money and probably turn to family and friends for financial help in return for a

share in the business. But if they are successful, there comes a time for all

developing SMEs when they need new investment to expand or innovate further.

That is where they often run into problems, because they find it much harder than

larger businesses to obtain financing from banks, capital markets or other

suppliers of credit

State Bank of India is the forerunner in the field of SME financing

.Majority of the loans to SMEs are been provided by SBI. SBI has introduced

various schemes for SMEs. The various schemes are according to the sector in

which a particular SME belongs. SBI has introduced SME financing for SME

belonging to sectors like: Agriculture, Medical, Transport, Tourism, Education

and many more.



Steps for SME loans by State Bank of India (SBI)Steps for SME loans by State Bank of India (SBI)

1. Application for loan by SME to local branch of a particular area.

2. Inspection/Survey of SME by the Executives of that Local branch.

3. Sending the Documents of survey by Local branch to SMEC branch

4. Preparing credentials of Promoters and firm by SMECC branch

and

5. Estimating the amount of loan to be sanctioned and forwarding the

documents for sanctioning.

6. If the loan is been sanctioned by the central authority then

disbursement of the loan amount into account of the SME.



The above figure shows the steps for availing finance through State

Bank of India (SBI) using loans. Here is the brief description of the above shown

procedure:

First of all the SME who wants to avail loan has to visit the local branch

office of their area, where by the loan application is been filled by the SME. After

that the executives of that branch check whether all the necessary documents

are provided by the SME or not, then if all necessary documents are submitted

the next step comes whereby the officials of that local branch go to the premises

of that SME and just have a brief survey of promoter as well as the premises.

After they are satisfied they send the file of necessary documents to the

SMECC branch, which is a special branch for SME loans. Where by the credit

appraisal takes place, which consist of credit appraisal of promoter, financial

appraisal, determining cost of project, understanding various means of finance

used, profitability estimate, cash flow projections , marketing appraisal etc. ,which

is explained in next section. This step brings out the clear picture whether the

loan should be given to the SME or not?

If the SMECC branch is satisfied with the details then it forward the

request of granting loan to the sanctioning authority. And finally after the

verification by sanctioning authority, the disbursement of loan amount takes

place in the account of that SME.

This whole procedure right from application to disbursement of loan

amount takes approximately 20-25 days as the procedure involves analysis

of documents by various branches and thus the movement of documents

amongst them, if all this procedure would have taken place at single place then it

would take only 10-12 days for disbursement.



4.1 SME OPEN TERM LOAN

Nature of Facility:

The product is a pre-approved term loan facility which can be disbursed

over a period of 12 months depending on unit‘s request.

The units get comfort of preapproved sanction to plan their capital

expenditure and negotiate with suppliers of machinery to finalize the best

possible terms and then get the loan disbursed.

Facility available for:

All units under manufacturing sector. Under Service sector: Educational Institution, Healthcare Industry

(Hospital, Doctors, Pathological Labs, and Nursing Home), Hospitality

Industry (Hotels, Restaurants, and Health Club etc), and Transport

Operators with minimum 25 vehicles.

Purpose:

Any genuine commercial purposes in line with regular business activity of the

customer. These would include

Expansion and modernization.

Substitution of high cost debts/ high cost term debts of other banks/FIs.

Design and introduction of new lay-outs in the factory to enhance

productivity.

Up gradation of technology & energy conservation schemes/ machinery.

Acquisition of software, hardware, consumable tools, jigs, fixtures,

vehicles, equipment , furniture upholstery etc.

Acquisitions of ISO & other similar certifications.

Visits abroad for acquiring technology, finalizing business deals,

participating in exhibitions/ fairs for market promotion etc.



Loan Amount:

Maximum Rs 2.50 crore for both manufacturing and services enterprises,

subject to credit rating and purpose of the loan.

Repayment period:

Maximum 3 years, extendable up to 5 years.

Interest Rate:

Facility Interest Rate for period upto 3 years

Term Loan

(Based on Credit Risk

Assessment Model)

Base Rate10% + 4.75% to Base Rate

+6.50%

Collateral security

Personal Guarantee of promoters in all cases

Pledge of Promoter‘s equity in case of corporate.

Eligibility

Existing or new corporate/ Non corporate customers of SME

segment with good rating.



4.2 CYBER PLUS

Eligibility

Individual entrepreneurs

The kiosk operator should be a local person

Educational qualification - Minimum Plus two

Age between 20 and 45 years

Should possess basic computer knowledge.

The operator will be interviewed, selected and trained by N-Logue.

Purpose:

To set up internet/cyber cafes especially at rural and semi-urban centers

with potential for such a facility

Nature of facility

Composite loan

Amount of loan margin :Rs. 9000

Tenure of Loan

36 to 40 monthly installments

Moratorium period - 3 months

Primary securitySecurity for assets purchased from bank finance

Interest Rate:

Loan – 9.5%



4.3 RICE MILE PLUS

Purpose:

Acquisit ion of machinery/ factory building for modernization

or expansion.

Working capital needs.

Loan amount:

Based on project cost.

Amount of loan available: Term loan 15-25%

Working capitals stock:

Paddy & rice- 15-75%

Brokens – 20%

Gunny bags – 40%

Bran – 30%

Repayment:

Term loan:

Minimum-5 years, Maximum-7 years

Working Capital:

12 months can be extended to other 12 months under certain

conditions.

Collaterals security:

Loan over 5 lakhs – Equitable mortgage of property/ tangible

Security belonging to borrower/ guarantor valued not less than 75%

of the loan amount.



Eligibility:

Profit making exiting units and new units of good credit rating.

Interest Rate:

Loan amount Interest rate

Rs.50,000 8.5 %

Between Rs. 50000 & 2 lakhs 9.5%

Between Rs.2 lakhs & 5 lakhs 10.25%

Between Rs.5 lakhs & 25 lakhs 11 %

above Rs.25 lakhs 12.75 %



4.5 DENTAL DOCTOR PLUS

Purpose

To boost the financing to Dental equipment under tie-up

arrangement.

To finance qualified dentists

For buying equipment

Any other activities related to Dental profession

Loan amount;

Maximum of Rs.10 Lakhs

Amount of loan available:

Up to Rs. 25,000 ± NIL

Over Rs. 25,000 and up to Rs. 5 Lakhs ± 10%

Over Rs. 5 Lakhs and up to Rs. 10 lakhs ± 20%

Repayment: Minimum- 3 years, Maximum period of 5 to 10 years

Maximum moratorium period of 6 months .For construction

purposes the moratorium period is 12 months (can be relaxed upto

24 months at the discretion of an authority one level higher than

the sanctioning authority)

Nature of facility: Term loan

Primary security

Hypothecation of assets financed by the Bank



Eligibility

Individuals/Partnership firms/Ltd. Co/Trust

Promoters should have minimum BDS and should be registeredpractitioners.

Interest Rate:


Rs.50,000 8.5 %

Between Rs. 50000 & 2 lakhs 9.0%


Between Rs.5 lakhs & 25 lakhs 10.25 %



4.5 SBI SHOPPE

Purpose

Purchase of new/old shops/establishments/offices. Modernization/expansion of establishments/shops, etc.

All furniture/fixtures, electrical fittings and other accessories

required

for shops/showrooms/offices.

Loan amount :

Maximum of Rs 20 lakhs.

Nature of facility:

Term loan (MTL).

Margin:

25% for purchase new shop

40% for purchase old shop.

Repayment:

Minimum- 3 years, Maximum- 7 years

Maximum moratorium period - 6 months

Primary Security:

Hypothecation/ pledge/ mortgage/ assignment of property

purchased out of bank's finances including non-industrial assets.

Rate of Interest:

As applicable to SIBTLs below Rs 25lakhs.



Processing fess:

Processing fess ranges from 1% to 1.50% of the loan amount.

Eligibility:Eligibility Any of the following are eligible:

Individuals

Firms

Partnership Firms

Trusts

Franchises.



4.6 SCHOOL PLUS

Purpose:

Construction of new buildings, repair and renovation of old building

Purchase of electronic & lab equipment, books, manuals, furniture &

fixture, etc.

Nature of facility :

Term loan with fixed repayment schedule based on repayment capacity

and income streams

Margin:

15% of the project cost

Repayment:

Loan amount upto Rs. 2 ;lakhs – Repayable in 36 equated monthly

installment.

Loan amount from Rs.2 lakhs to 5 lakhs – Repayable in 60

equated monthly .

Loan amount above Rs. 5 lakhs – Repayable in 84 monthly

installment.

Processing fess:

Processing fess ranges from 1% to 1.50% of the loan amount.

Security:

Primary security: Hypothecation of Assets financed by the bank

Collateral security: Tangible collateral in the form of immovable

property, TDRs, NSCs, KVPs, LIC policies etc equivalent to 50% of

the total loan amount may be obtained.



Eligibility:

Educational institutions with adequate source of income

Educational institutions run by trusts, private management

Institutions should have necessary approval from the Government

agencies to run the school

Building construction/alteration/renovation should have a proper

approval from local bodies

The promoters/Trustees/key persons of the school should be

persons of good standing in the society.

Interest Rate:


Rs.2,00,00 0 9.25 %





State Bank of India Caters to the needs of agriculturists and landless

agricultural labourers through a network of 8750 rural and semi-urban branches.

Apart from the branches, there are 428 Agricultural Development Branches

(ADBs) which also cater to agriculturists. They are the leaders in agri finance in

the country with a portfolio of Rs. 64,000 crs in agri advances covering around 80

lakhs accounts.

State Bank of India's branches have covered a whole gamut of

agricultural activities like crop production, horticulture , plantation crops, farm

mechanization, land development and reclamation, digging of wells, tube wells

and irrigation projects, forestry, construction of cold storages and godowns,

processing of agri-products, finance to agri-input dealers, allied activities likedairy , fisheries, poultry, sheep-goat, piggery refurbished second hand tractors,

loans against pledge of warehouse receipts, loans against produce stored by the

farmer at his own premises, loans against book debts of Arthias, mulberry

cultivation, rearing of silk worms and grainages. Infact Bank can cover any other

agricultural related activities undertaken.

State Bank of India are setting up Agri Commercial Branches (ACBs)

which will handle high value agri financing involving large investments. It

envisages lending through corporate partnerships and other large enterprises for

commodity financing, investment credit, other high value agriculture segments

like horticulture, floriculture & food processing etc. It also focuses on Agri related

SME including setting up of Rice and Dhal mills, seed processing industry, food

processing industry, large and small scale dairy units, etc.



5. Agricultural Loan

SBI LOAN – RURAL BANKING

Agricultural finance

Agricultural gold loan

Kisan credit card

Produce marketing loan

Land purchase scheme

Land development scheme

Agricultural Crops loan

Scoring model for tractor loan



5.1 Agricultural Gold Loans

Purpose:

Bank extends hassle free finance to farmers / agriculturists against Gold

Ornaments / gold wares to increase their liquidity to meet crop productionexpenses, Investment expenses related to agriculture and / or allied agricultural

activities.

Eligibility

Any person engaged in agriculture or allied activities as well as persons engaged

in activities permitted to be classified under agriculture.

Quantum of Loan

Up to 70% of the value of the ornaments .Value will be as advised by the bank to

the branches periodically.

Security

Pledge of gold ornaments.

How do you repay

Credit / Overdraft: Like KCC, it is a running account for a period of 3 years.

Demand Loan / Term Loan :

The repayment period of the loan should be fixed so as to coincide with the

harvesting and marketing season / generation of income from the activity,

allowing 2 to 3 months time after harvesting to market the produce and realize

the proceeds. However, the total period will not generally exceed one year from

the disbursement of the loan in the case of short-term loan / production credit

and 36 months in other cases.



5.2 Kisan Credit Card (KCC)

Purpose:

To provide timely and adequate credit to farmers to meet their production credit

needs(cultivation expenses) besides meeting contingency expenses, and

expenses related to ancillary activities through simplified procedure facilitating a

ailment of the loans as and when needed.

Who are eligible for the loan?

Owner cultivators, tenant cultivators and Share croppers.

Agricultural borrowers having good track record for the last 2 years

(i.e., Maintaining standard loan accounts).

Creditworthy new borrowers can also be financed.

Loan amount

Loan amount is based on operational land holding ,cropping pattern and

ancillary and contingency needs of the farmer for the full year

100% of the cultivation cost available as loan upto Rs 50000/ and 85 % of

the cost as loan above Rs 50000/. Expenses to meet important ancillary

activities to production can also be financed in addition to the above The

total limit is inclusive of 20% of production credit, which includes crop

production expenses and working capital for allied agricultural activity,as

contingency credit /consumption loan.

Disbursement of the Loan

As per the cultivation requirements of the crop, the loan will be disbursed in cash.



Security

*For loans up to Rs 1 lakhs to farmers having legal ownership of agricultural

lands with good rack record for last 2 years, no collateral is required

How do you repay

It is a revolving cash credit limit with any number of withdrawals and repayments

and Limit is valid for 3 years.

Loan amount up to Rs 50000 Hypothecation of Crops

Above Rs 50000/ up to Rs 100000 (1) Hypothecation of crops.

(2) Mortgage of land or third party

guarantee *

Above Rs 100000/

(1) Hypothecation of crops

(2) Mortgage of lands



5.3 Produce Marketing Loan

Purpose:

To help farmers avoid distress sale of their produce

To enable prompt repayment of crop loan dues and provide liquidity tofarmers to meet contingency needs.

To offer the facility of loan against the stocks stored in farm houses, in

addition to loan against warehouse receipts.

Who are eligible for the loan?

1. All non-defaulter borrowers of our branches, who can store the produce either

in their own farm/premises itself or in a Warehouse / cold storage.

2. Crop loan borrowers of other Bank‘s and also Non -Borrower Farmers, who

store their produce/ stocks in a Warehouse / cold storage.

Loan amount:

60 to 80% of value of produce depending upon the place of storage subject to a

maximum of Rs.10 lakhs.

Documents you need to produce:

Stock statement for valuation and evidence of stocks at your residence/ godown

Warehouse receipt, duly endorsed , if stocked at warehouse.

Security :

1. Loan sanctioned against goods stored in Farmer’s godown:

Primary : Hypothecation of stocks.

Collateral : Mortgage / Charge over Land or Third Party guarantee for loans

\above Rs. 50,000/-.



2. Loans sanctioned against Warehouse Receipts (WHR) :

Primary : Pledge of stocks.

Collateral : No collateral is required for loans up to the maximum permitted

limit of Rs.10 lakhs under the scheme.

Disbursement:

After liquidating the crop loan ,surplus will be disbursed in cash.

How to repay?

Loan has to be repaid within a maximum period of 12 months depending upon

the crop.



5.4 Land Purchase Scheme

Purpose:

To assist Small & Marginal farmers and landless agricultural labourers for

purchase of Land, who are our existing borrowers to consolidate land holdings &development of Wasteland & fallow lands.

Who are eligible?

Small & Marginal Farmers owning less than 5 acres of un irrigated / 2.5

acres of irrigated land in their own names , landless agricultural labourers.

The borrowers should have a record of prompt repayment of the loan for

at least two years.

Good borrowers of other Banks are also eligible provided they liquidate

their Outstanding to other banks.

Loan amount:

Loan may be considered for:

Cost of land

Provision of irrigation facilities & land development (shall not exceed 50%

of the cost of the land).

Purchase of farm equipments.

Registration charges & stamp duty.

Loan amount will be 85 % of the cost of the land, as assessed by the bank,

subject to the maximum of Rs 5 lakhs

Security

Mortgage of land to be purchased



How to repay the loan

Max. 9-10 years beginning after the expiry of gestation period, with half-yearly

installments.. .Gestation period will be maximum of 1 year for the developed land

and 2years for the land to be developed..



5.5 Scoring Model For Tractor Loan

Purpose:

Agricultural term loans are sanctioned for purchase of new tractors,

accessories and implements

Who are eligible for tractor loan?

Agriculturists (individually or jointly ) and Persons offering security like NSCs,

KVPs, the Bank‘s Fixed Deposits, surrender value of LIC policy, gold ornaments

etc. to cover more than 60% of the loan amount are eligible for the loan .The

applicants should score minimum score of 40 under the Scoring model of the

bank.

Loan amount:

Up to 95 % of the cost of the Tractor, trailer and accessories. (Depending on

the scores in the scoring model).The cost includes the Registration charges and

insurance premium not exceeding Rs 15,000/-. Additional loan equal to 10% of

tractor loan for repairs may be provided for at the time of sanction. Bank will

finance only for those models of tractors which have completed the commercial

test from organizations viz. Central Farm Machinery Training and Testing

Institute (CFMTTI) Budni (Madhya Pradesh) or Farm Machinery Training and

Testing Institute (FMTTI), Hissar

Security:

1. Hypothecation of the tractor, accessories and implements. Noting of

Bank‘s hypothecation charge in the RC Book of the tractor is compulsory

in all the cases.

2. Collateral Security like NSCs, KVPs, Banks Fixed Deposits ,Surrender

value of LIC policy etc OR Mortgage of agricultural lands .However no

collateral security is required, if the score is 70 and above on the scoring

model of the bank



How to repay the loan

Within a maximum period of 9 years, including a grace period not

exceeding 12 months.

The installments shall be payable half-yearly / yearly, coinciding with the

harvesting and marketing period of the crops proposed to be grown by you

.



5.6 Scheme for financing seed processors

Purpose:

To extend financial assistance to the seed processors against their

receivables due to them from the seed growers.

Who are eligible?

Seed processors / units

Enjoying good reputation & credit worthiness.

Holding a valid license from the concerned State Department of Industries

for Installation of Seed Processing Plant.

Having valid certificate from Seed Certification Department.

Doing business for the last 3 years.

Having receivables from the farmers.

Who have posted profits during the past two years of operation are eligible

to avail credit limits under the scheme.

Loan amount:

60 % of the value of the receivables. Minimum Rs 2.00 lacs. No upper limit

Security:

(1) Assignment/hypothecation of receivables from the farmers.

(2) Equitable mortgage of residential/ commercial property worth 1.5 times of the

Limit sanctioned belonging to either the applicant or the guarantor.

How to repay the loan?Loan to be liquidated within a maximum period of 6 months for each crop season

i.e., Rabi & kharif.



CONCLUSION

State Bank of India, a major public sector bank in India, is providing a host of

loan products to cater to the various needs of the customers. State Bank of India

loans come with truly affordable rates and flexible repayment terms. The terms

and conditions are excellent and have been designed to suit the borrowers‘

needs. Loan programs are available from State Bank of India to meet the

requirements of individual customers, corporate clients, small and medium

enterprises, Non resident Indians, export and import businesses and

agriculturists.



BIBLIOGRPY

While working on this project, I have done some research work from the

following text books

Credit Management

Financial Service Management

News-paper

DNA

Hindustan Time

Various Websites were also visited such as,

http://www.sbi.co.in

http://www.google.com