Scribd Logo
Upload

Welcome to Scribd!

  • 144 views

    Pricing For Home Loans by SBI: Presented By: Isha Karan Wadhwa Kartik Jain Prakhar Lilhare

    Uploaded by

    toff1410
    SBI offers home loans with interest rates of 8% for the first year, 9% for the second and third years, and 9.25% for the fourth year. Loan processing cells were created to handle loan applications efficiently. The success of the loan scheme depends on the borrower's ability to repay as determined by their net monthly income and debt-to-income ratio, which is the sum of three EMIs divided by net monthly income. The loan-to-value ratio is kept at 80% and regulations, profitability, and social acceptance were considered.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd

    Pricing For Home Loans by SBI: Presented By: Isha Karan Wadhwa Kartik Jain Prakhar Lilhare

    Uploaded by

    toff1410
    144 views6 pages
    SBI offers home loans with interest rates of 8% for the first year, 9% for the second and third years, and 9.25% for the fourth year. Loan processing cells were created to handle loan applications efficiently. The success of the loan scheme depends on the borrower's ability to repay as determined by their net monthly income and debt-to-income ratio, which is the sum of three EMIs divided by net monthly income. The loan-to-value ratio is kept at 80% and regulations, profitability, and social acceptance were considered.

    Original Description:

    Loan processing at SBI

    Original Title

    SBI Loan Processing

    Copyright

    © © All Rights Reserved

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    SBI offers home loans with interest rates of 8% for the first year, 9% for the second and third years, and 9.25% for the fourth year. Loan processing cells were created to handle loan applications efficiently. The success of the loan scheme depends on the borrower's ability to repay as determined by their net monthly income and debt-to-income ratio, which is the sum of three EMIs divided by net monthly income. The loan-to-value ratio is kept at 80% and regulations, profitability, and social acceptance were considered.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    144 views6 pages

    Pricing For Home Loans by SBI: Presented By: Isha Karan Wadhwa Kartik Jain Prakhar Lilhare

    Uploaded by

    toff1410
    SBI offers home loans with interest rates of 8% for the first year, 9% for the second and third years, and 9.25% for the fourth year. Loan processing cells were created to handle loan applications efficiently. The success of the loan scheme depends on the borrower's ability to repay as determined by their net monthly income and debt-to-income ratio, which is the sum of three EMIs divided by net monthly income. The loan-to-value ratio is kept at 80% and regulations, profitability, and social acceptance were considered.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    You are on page 1of 6

    Pricing for home

    loans by SBI
    Presented By :
    Isha
    Karan Wadhwa
    Kartik Jain
    Prakhar Lilhare

    Note on home loan scheme by


    SBI
    Scheme 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 income
    Loan to value ratio was kept at 80%
    Success parameters such as regulations, law, profit and
    social acceptance were taken into consideration.

    Loan Disbursing procedure

    1. Lead Generation & form filling, KYC details and Income Proo
    2. CPC
    3. Title search
    4. Legal Report
    5. Loan Sanctioning
    6. Loan Disbursement

    Study 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 days
    Lot of complaints from customers.
    Efforts were made to reduce processing delays.

    Home Loan Processing by a


    bank
    Initial contact
    Checklist of information and documents
    Information about borrowers asset
    Credit history of borrower
    Preparation of legal documents
    Processing fees
    Sanctioning and disbursement

    Thank You

    You might also like