A Project On

➔ Processing Of Car/Vehicle’s Loan

Provided By State Bank of India

Under The Guidance Of

D . Taru Chakrave t
Assistant Professor
(Department of Commerce and Management Studies)

Sub t b

Nam :- Ros Kha

Cla :- B.Com (SE VI )
Ses :- 2019-2022
Cla Rol No. :- 122
Exa Rol No. :- 19M B 810376
Reg r i No. :- M 19810376

1
 ACKNOWLEDGEMENT

It is a great Pleasure to acknowledge my deep sense of gratitude to

all those who have helped me in completing this project successfully.

First of all I would like to thank my guide Prof. Dr. Tarun Chakraverty.

Our Principle Dr. Manoj Kumar. for providing me with an opportunity

to undertake a project as a partly fulfillment of my B.com Degree.

I would also like to thank my near and dear ones for giving

me valuable information & helping me regarding my project.

Place: Ranchi Signature

Date: (Roshan Khan)

2
 DECLARATION

I am Mr Roshan Khan student of B.Com Marwari College, Ranchi. I

declare that the Project on “A Study on Vehicle Loan of State Bank Of
India.” is a genuine and beneficial work presented by me.
The empirical findings in this project report are based on the data

collected by myself; this matter presented in this report is not copied from

any source. The work has not been submitted for the award of any degree

or diploma at Ranchi University or any other university; the project

report is submitted to Ranchi University in the partial fulfillment of the

degree of B.Com.

Place: - Ranchi Signature

Date:- ( Roshan Khan)

3
 INDEX

SR.NO. CHAPTERS NAME PAGE NO

1.
INTRODUCTION AND RESEARCH
METHODOLOGY

● INTRODUCTION
6-11
● SELECTION OF THE SUBJECT
● OBJECTIVES OF THE STUDY
● NEED OF THE STUDY
● SCOPE AND LIMITATIONS
● METHODOLOGY OF THE STUDY
2.

HISTORY OF SBI

● HISTORY OF SBI

● ABOUT SBI
12-24
● VISION & MISSION

● STRUCTURE OF THE ORGANIZATION

● MANAGEMENT OF SBI

● FINANCIAL PERFORMANCE OF SBI

● AWARDS & RECOGNITION

● PEST ANALYSIS

● SWOT ANALYSIS

4
3. 25-35

VEHICLE LOAN

● FEATURES OF VEHICLE LOAN

● VEHICLE LOAN INDIA
● TYPES OF VEHICLE LOAN
● WHY TAKE A HOME LOAN
● CHECKLIST FOR HOME LOAN
● ELIGIBILITY
4. 36-45

SBI VEHICLE LOAN

● VEHICLE LOAN OF SBI

● ELIGIBILITY
● DOCUMENTATION REQ
● RATE OF INTEREST
● FEES & CHARGES
● HYPOTHESIS OF SBI
● PRODUCT & SERVICES

5. CONCLUSION & SUGGESTION 46-48

6. BIBLIOGRAPHY 49-51

5
 CHAPTER NO. 1

o INTRODUCTION
o SELECTION OF THE SUBJECT
o OBJECTIVES OF THE STUDY
o NEED OF THE STUDY
o SCOPE AND LIMITATIONS
o RESEARCH &

METHODOLOGY

6
 ● INTRODUCTION

With the income level rising in India. Many families have high
disposable income these days and with high disposable income come and
argue about upgrading your lifestyle.
Vehicles play a very important role in our society. Today not
having this machinery but also traveling from one place to another would
be like a Vehicle.
Almost everyone dreams of owning their own vehicle and
something to use as meen to traveling to work to other places where you
want to go.
I mean you do not dream of owning your own vehicle. It is a good
thing that banks and other service providers are not offering Vehicle loans
in India and Quota loan is a unique kind of private loan.
Generally speaking, a person would be paying a small proportion
every month. In addition to the interest charge this is referred to as your
monthly settlement. A secured vehicle or car loan offers the bank a
particular item of safe keeping in case the borrower could not be able to
pay back the balance due to the bank having the right to take the secured
item, typically the vehicle and car itself.

7
 ● SELECTION OF THE SUBJECT

The subject selected for the project work is “A study of Vehicle Loan”
Loan Scheme of State Bank of India
A scheme of Vehicle Loan of State Bank of India is the most
important subject. Vehicle Loan is the need of Society. Vehicles are a part
of our life.

● OBJECTIVES OF THE STUDY

The objectives of the study are as under:-

1. To study the interest rate of the Vehicle Loan of the State Bank of
India.
2. To study the Vehicle Loan scheme of the State Bank of India.
3. To Analyze the Vehicle Loan scheme of Bank.
4. To study services and various modern techniques used by the State
Bank of India.
5. To know the banking operation and activities in a bank.
6. To know how to smoothly work day to day and work in the
procedure of the bank.
7. To know the management skill of the bank plans, policies,
management skill and development skill of the Bank of India.
8. Vehicle Loan has indeed proven to be beneficial for the economical
growth of the nation.
9. To encourage the student to avail this facility of Vehicle Loan.
10. To study the organization structure of the Bank.

8
 ● NEED OF THE STUDY

The Project Report plays a very important role in the study of

M.Com. Every student has to submit a project report. The project work is

an integral part of M.Com course and it importance lies in the fact that it

gives the student their first exposure to an organization Need of the

Project as under:-

1. To know that theoretical knowledge obtained in an institute/bank

practically and actually of a bank environment.

2. To realize the various problems, competition and challenges in the

banking sector.

3. To get knowledge of the banking sector.

● SCOPE AND LIMITATIONS

1. It also puts pressure on data collection and analysis of data.

2. The study is limited only to the analysis of the Vehicle Loan

scheme of State bank of India.

3. To study the Vehicle Loan scheme of the State bank of India .

4. To study on the basis of secondary data from the websites.

9
 5. Approximate values, data in graphs and figures used for analysis of

the bank.

6. There are terms to be changed by the bank.

7. There are changes in interest and many other objects as time goes

on.

8. There are many changes because of the govt decision.

● RESEARCH & METHODOLOGY

The project report methodology includes various step collections of

data. In the first step in methodology, collection of data and preparation

and presentation of a project report. There was a systematic process or

procedure in methodology. It is a systematic way of solving the problem.

It is a systematic way of solving the problem.

DATA COLLECTION:-

The data used in the project report is also available on the internet.

There were two types of data collection:-

A} PRIMARY DATA COLLECTION:-

The primary data is collected with the help of the branch manager,

discussion with the staff of the Bank of India.

10
 The primary data collected from the bank.

B} SECONDARY DATA COLLECTION:-

The secondary data is the main source of finding information.

Secondary data sources like newspapers, books, and internet websites of

the bank have been used for data collection. Secondary sources of data

collection provide the most important information or data for the purpose

of study project reports.

11
 CHAPTER NO. 2

● HISTORY OF SBI

● ABOUT STATE BANK OF INDIA

● VISION & MISSION

● STRUCTURE OF THE ORGANIZATION

● MANAGEMENT OF SBI

● FINANCIAL PERFORMANCE OF SBI

● AWARDS & RECOGNITION

● PEST ANALYSIS

● SWOT ANALYSIS

12
 ● HISTORY OF STATE BANK OF INDIA

The roots of the State Bank of India lie in the first decade of the 19th
century, when the Bank of Calcutta, later renamed the Bank of Bengal,
was established on 2 June 1806. The Bank of Bengal was one of three
Presidency banks, the other two being the Bank of Bombay (incorporated
on 15 April 1840) and the Bank of Madras (incorporated on 1 July 1843).
All three Presidency banks were incorporated as joint stock companies
and were the result of royal charters. These three banks received the
exclusive right to issue paper currency till 1861 when, with the Paper
Currency Act, the right was taken over by the Government of India. The
Presidency banks amalgamated on 27 January 1921, and the re-organised
banking entity took as its name Imperial State Bank of India. The
Imperial State Bank of India remained a joint stock company but without
Government participation.

Pursuant to the provisions of the State Bank of India Act of 1955, the
Reserve Bank of India, which is India's central bank, acquired a
controlling interest in the Imperial State Bank of India. On 1 July 1955,
the Imperial Bank of India became the State Bank of India. In 2008, the
government of India acquired the Reserve Bank of India's stake in SBI so
13
as to remove any conflict of interest because the RBI is the country's
banking regulatory authority.

In 1959, the government passed the State Bank of India (Subsidiary

Banks) Act. This made SBI subsidiaries of eight that had belonged to
princely states prior to their nationalization and operational take-over
between September 1959 and October 1960, which made eight state
banks associates of SBI. This acquisition was in tune with the first Five
Year Plan, which prioritized the development of rural India. The
government integrated these banks into the State Bank of India system to
expand its rural outreach. In 1963 SBI merged State Bank of Jaipur (est.
1943) and State Bank of Bikaner (est.1944).

SBI has acquired local banks in rescues. The first was the Bank of
Bihar (est. 1911), which SBI acquired in 1969, together with its 28
branches. The next year SBI acquired National Bank of Lahore (est.
1942), which had 24 branches. Five years later, in 1975, SBI acquired
Krishnaram Baldeo Bank, which had been established in 1916 in Gwalior
State, under the patronage of Maharaja Madho Rao Scindia. The bank
had been owned by Dukan Pichadi, a small moneylender, owned by the
Maharaja. The new bank's first manager was Jall N. Broacha, a Parsi. In
1985, SBI acquired the Bank of Cochin in Kerala, which had 120
branches. SBI was the acquirer as its affiliate, the State Bank of
Travancore, already had an extensive network in Kerala.

There has been a proposal to merge all the associate banks into SBI to
create a "mega bank" and streamline the group's operations.

14
 ● ABOUT STATE BANK OF INDIA

● 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. As of December 2015, it had assets
of US$388 billion and 17,000 branches, including 190
foreign offices, making it the largest banking and financial
services company in India by assets.[4][5]
● State Bank of India is one of the Big Four banks of India,
along with Bank of Baroda, Punjab National Bank and ICICI
Bank.
● 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" in British India, Bank of Calcutta
and Bank of Bombay, to form the Imperial Bank of India,
which in turn became the State Bank of India. The
Government of India owned the Imperial Bank of India in
1955, with Reserve Bank of India (India's Central Bank)
taking a 60% stake, and renamed it the State Bank of India.

15
 ● MISSION, VISION & VALUES

VISION

● My SBI.
● My Customer first.
● My SBI: First in customer satisfaction

MISSION

● We will be prompt, polite and proactive with our customers.

● We will speak the language of young India.
● We will create products and services that help our customers
achieve their goals.
● We will go beyond the call of duty to make our customers feel
valued.
● We will be of service even in the remotest part of our country.
● We will offer excellence in services to those abroad as much as
we do to those in India.
● We will imbibe state of the art technology to drive excellence.

VALUES

● We will always be honest, transparent and ethical.

● We will respect our customers and fellow associates.
● We will be knowledge driven.
● We will learn and we will share our learning.
● We will never take the easy way out.
● We will do everything we can to contribute to the community
we work in.
● We will nurture pride in India
16
● ORGANIZATIONAL STRUCTURE

● MANAGEMENT OF SBI
17
Name Designation

Arundhati Bhattacharya Chairman

S Venkatachalam Independent Director

Parthasarathy Iyengar Independent Director

Harichandra Bahadur Singh Director

Gurdial Singh Sandhu Director

Praveen Kumar Gupta Deputy Managing Director

P Pradeep Kumar Managing Director

D Sundaram Independent Director
Thomas Mathew Independent Director
Rajiv Kumar Director
Tribhuwan Nath Chaturvedi Director
Urjit R Patel Director
Hasmukh Adhi Director

18
 ● Financial Performance of the SBI

MAR'16 MAR'15
Parameter Change %
(₹ Million) (₹ Million)
Sales Turnover 13,63,510.00 11,96,570.00 13.95%
Other Income 1,85,529.00 1,60,348.00 15.70%
Total Income 15,49,040.00 13,56,920.00 14.16%
Total Expenses 3,57,258.00 2,92,844.00 22.00%
Operating profit 3,21,092.00 3,10,817.00 3.31%
Gross Profit 1,61,739.00 1,99,509.00 -18.93%
Interest 8,70,686.00 7,53,258.00 15.59%
PBDT -7,08,947.00 -5,53,749.00 -28.03%
Depreciation 0.00 0.00 0.00%
PBT 1,61,739.00 1,99,509.00 -18.93%
Tax 52,827.20 58,459.10 -9.63%
Net Profit 1,08,912.00 1,41,050.00 -22.78%
Earnings Per Share 156.76 206.20 -23.98%
Equity 7,465.70 6,840.30 9.14%
Preference Capital 0.00 0.00 0.00%
Reserves 11,75,360.00 9,81,996.00 19.69%
Face Value 10.00 10.00 0.00%

19
 ● AWARDS & RECOGNITIONS

● SBI was ranked 73rd largest bank in the world, according to 2016
SNL financial data.
● SBI won the Best Bank award in the 'ASIAMONEY FX POLL OF
POLLS 2016’ for best overall performance as a domestic provider
of Forex services over the last 10 years.
● SBI was ranked as the top bank in India based on tier 1 capital by
The Banker magazine in 2016ranking.
● SBI was ranked 298th in the Fortune Global 500 rankings of the
world's biggest corporations for the year 2014.
● SBI won the "Best Public Sector Bank" award in D & D & D & D
& D & D & D & D&B India's study on 'India's Top Banks 2016.
● State Bank of India won three IDRBT Banking Technology
Excellence Awards 2016 for “Electronic Payment Systems”, “Best
use of technology for Financial Inclusion”, and “Customer
Management & Business Intelligence” in the large bank category.

20
● SBI won a National Award for its performance in the
implementation of the Prime Minister’s Employment Generation
Programme (PMEGP) scheme for the year 2014.
● Best Online Banking Award, Best Customer Initiative Award &
Best Risk Management Award (Runner Up) by IBA Banking
Technology Awards 2012
● SKOCH Award 2012 for Virtual corporation Category for its
e-payment solution
● SBI was the only bank featured in the "top 10 brands of India" list
in an annual survey conducted by Brand Finance and The
Economic Times in 2012.
● The Bank of the year 2011, India (won the second year in a row) by
The Banker Magazine
● Best Bank – Large and Most Socially Responsible Bank by the
Business Bank Awards 2011
● Best Bank 2011
● by Business India
● The Most Trusted Brand 2011
● by The Economic Times.
● SBI was named the 29th most reputed company in the world
according to Forbes 2011
● rankings
● Most Preferred Bank & Most preferred Educational loan provider
by CNBC
● Visionaries of Financial Inclusion By FINO
● Technology Bank of the Year by IBA Banking Technology Awards
● SBI was 50th Most Trusted brand in India as per the Brand Trust
Report 2016, an annual study conducted by Trust Research
Advisory, a brand analytics company and subsequently, in the

21
Brand Trust Report 2016, SBI finished as India's 19th Most Trusted
Brand in India.

22
● PEST ANALYSIS

23
 ● SWOT ANALYSIS

SWOT Analysis

Strength 1. The biggest bank in the country

2. Has a separate act for itself. Thus, a special privilege.
3. Biggest branch network in the country
4. First public sector to move to CBS

Weakness 1. Huge amount of staff

2. Expected to experience high level of attrition due to
retirement of its top management
3. Still carries the image of the old Govt. sector bank

Opportunity 1. Pool in talent to replace the going top management to

serve the next generation
2. Make better use of its CRM
3. Expansion into rural areas

Threats 1. Consolidation among private banks

2. New bank licenses by RBI
3. Foreign banks that have sophisticated products

24
 CHAPTER NO. 3

● FEATURES OF VEHICLE LOAN

● VEHICLE LOAN IN INDIA

● TYPES OF VEHICLE LOAN

● WHY TAKE A VEHICLE LOAN?

● ELIGIBILITY

25
 ● FEATURES OF VEHICLE
LOAN

● Vehicle leasing is the leasing (or the use of) a motor vehicle for a
fixed period of time at an agreed amount of money for the lease. It
is commonly offered by dealers as an alternative to vehicle
purchase but is widely used by businesses as a method of acquiring
(or having the use of) vehicles for business, without the usually
needed cash outlay. The key difference in a lease is that after the
primary term (usually 2,3 or 4 years) the vehicle has to be returned
to the leasing company for disposal.
● Vehicle Leasing offers advantages to both buyers and sellers. For
the buyer, lease payments will usually be lower than payments on a
car loan would be, and qualification is often easier. Any sales tax is
due only on each monthly payment, rather than immediately on the
entire purchase price as in the case of a loan. Some consumers may
prefer leasing as it allows them to simply return a car and select a
new model when the lease expires, allowing a consumer to drive a
new vehicle every few years without the responsibility of selling
the old vehicle, or possible repair costs after expiry of the
manufacturer's warranty. A lessee does not have to worry about the
future value of the vehicle, while a vehicle owner does. For a
business lessor there are tax advantages to be considered.
● For the seller, leasing generates income from a vehicle the seller
still owns and will be able to lease again or sell through vehicle
remarketing once the original (or primary) lease has expired. As

26
 consumers will typically use a leased vehicle for a shorter period of
time than one they buy outright, leasing may generate repeat
customers more quickly, which may fit into various aspects of a
dealer's business model.
● The subject of car finance comprises the different financial
products which allows someone to acquire a car with any
arrangement other than a single lump payment. The provision of
car finance by a third party supplier allows the acquirer to provide
for and raise the funds to compensate the initial owner, either a
dealer or manufacturer.
● Car finance is required by both private individuals and businesses.
All types of finance products are available to either sector, however
the market share by finance type for each sector differs, partly
because business contract hire can provide tax and cash flow
benefits to businesses.
● Personal Car Finance is a complete sub sector of personal
finance, with numerous different products available. These include
a straightforward car loan, hire purchase, personal contract hire
(car leasing) and Personal Contract Purchase. Therefore car finance
includes but is not limited to vehicle leasing. These different types
of car finance are possible because of the high residual value of
cars and the second hand car market, which enables other forms of
financing beyond pure unsecured loans.

27
 ● VEHICLE LOAN IN INDIA

● The subject of car finance comprises the different financial

products which allows someone to acquire a car with any
arrangement other than a single lump payment. The provision of
car finance by a third party supplier allows the acquirer to provide
for and raise the funds to compensate the initial owner, either a
dealer or manufacturer.
● Car finance is required by both private individuals and businesses.
All types of finance products are available to either sector, however
the market share by finance type for each sector differs, partly
because business contract hire can provide tax and cash flow
benefits to businesses.
● Personal Car Finance is a complete sub sector of personal
finance, with numerous different products available. These include
a straightforward car loan, hire purchase, personal contract hire
(car leasing) and Personal Contract Purchase. Therefore car finance
includes but is not limited to vehicle leasing. These different types
of car finance are possible because of the high residual value of
cars and the second hand car market, which enables other forms of
financing beyond pure unsecured loans.[1]

28
● Car finance arose because the price of cars was out of the reach of
individual purchasers without borrowing the money. The funding
for personal car finance is provided either by a retail bank or a
specialist car financing company. Some car manufacturers own
their own car financing arms, such as Ford with the Ford Motor
Credit Company and General Motors with its GMAC Financial
Services arm, which has now been renamed and rebranded as Ally
Financial.
● The funding supplier may retain ownership of the car during the
period of the contract for certain types of financing. This interim
ownership by a third party and subsequent leasing to the acquirer is
far more typical for business assets than private ones, with the
option of vehicle leasing being the major exception for private
consumers.
● The finance is arranged either by the dealer which provides the car
or by independent finance brokers who work on commission.
Individual brokers will provide any solution for which the
individual can get credit approval, but their own particular lifestyle
and cost considerations that should determine the choice of finance
option.

29
 ● TYPES OF VEHICLE LOAN

● New Car Loans

● Pre-Owned Car Loan

● Loan Against Car

● New Car Loans

● This type of car finance is designed specifically for people who

want to buy a brand new car.
● New car loans typically cover the widest range of cars and can
offer greater lending amounts than other loans.
● The HDFC car loan for new vehicles, for example, lets you borrow
three to six times your income.
● Similar lending options are also found with ICICI, SBI car loans
and many others that are made for new vehicles.
● New car loans often give you the option of borrowing the full
amount of the car, or making a deposit against the loan, with the
latter saving time and the former saving money.

● Pre-Owned Car Loan

A pre-owned or used car tends to be a more affordable option for many

people, which means you do not need to borrow as much money.

Pre-owned car loans sometimes have limits on the types of vehicles you
can buy, and most limit finance to cars that are between two and four
years old.

30
Like new car loans, you can usually choose between borrowing the full
amount needed or making a deposit to secure your finance, but because
there are more risks with a pre-owned car, the total amount you pay for a
car loan could be higher.

● Loan Against Car

Another car loan option you have is to borrow money and use the vehicle
you purchase as loan security.

These types of loans basically mean that the lender will be able to claim
the car if you cannot pay them back. But this type of loan is convenient if
you need a new car right away and have no funds for a deposit.

As well as these car loans, there are also car hire schemes that give you
the opportunity to lease then buy the vehicle you drive.

There are also a number of car loan providers in India – including banks
and car dealerships – which means you can look at a variety of options
before you decide when car loan will be both flexible and affordable for
you.

31
● Loans
● Home Loan
● Personal Loan
● Car Loan
● Loan Against Property
● Gold Loans
● Loan Against Securities
● Loan Against Fixed Deposit
● Loan Against Shares
● Commercial Vehicle & Construction Equipment Loan
● Education Loan
● Have/Applied for an Axis Bank Loan?

● Salaried Individuals

● Minimum age of applicant: 21 years

● Maximum age of applicant at loan maturity: 70 years (Conditions
apply)
● Income: Minimum Net Annual Salary of Rs. 2.4 Lac p.a. for all
approved car models
● Income eligibility: As per latest salary slip and Form 16
● Employment: Minimum 1 year of continuous employment

● Self-employed Individuals

● Minimum age of applicant : 18 years

● Maximum age of applicant at loan maturity : 75 years

32
 ● Income: Minimum Net Annual Business income of Rs. 1.8 Lac p.a.
for selected models and Rs. 2.0 Lac p.a. for others
● Income eligibility - As per latest ITR
● Employment: Minimum 3 yrs in the same line of business.

● Self-employed Non Individuals

● Income: Minimum Net Annual Business income of Rs. 1.8 Lac p.a.
for selected models and Rs. 2.0 Lac p.a. for others
● Income eligibility: As per latest 2 year ITRs and audited financial
of 2 years along with computation of income
● Employment: Minimum 3 yrs in the same line of business.

*All of the above is subject to terms and conditions.

● Scheme for Priority/Wealth/Privee

Customers

Eligibility: All Priority/Wealth/Privee customers with a vintage of 6

months

And

A minimum Average Quarterly Balance as below:

● An AQB of Rs. 1 Lakh for the last 2 completed quarters. AQB

requirement to be meeting for both the quarters

Maximum loan amount restricted to 3 times the AQB in the last 2

quarters

33
 ● Scheme for Salary Customers

All customers having their Salary A/c with Axis Bank since the past 3
months and working with the following organization are eligible for this
product.

● Eligibility

● Public Limited & Private Limited Companies

● MNCs
● Permanent employees of State / Central Government
● Permanent employees of Public Sector Undertakings
● Permanent employees of reputed schools / colleges

● Parameters

● Minimum age of applicant: 21 years

● Maximum age of applicant at loan maturity: 70 years
● Income: Minimum Net Annual Salary of Rs. 2.40 Lac p.a.
● Income eligibility: As per latest salary slip and Form 16
● Employment: Minimum 1 yrs of continuous employment

● Car Loan Eligibility Calculator

Axis Bank has made it easy for customers to quickly check out their Car
Loan eligibility. Our Car Loan eligibility calculator helps you to find out
whether you can avail of auto finance. Click here to find out.

34
 CHAPTER No. 4

● VEHICLE LOAN OF SBI

● ELIGIBILITY
● DOCUMENTATION REQ
● RATE OF INTEREST
● FEES & CHARGES
● HYPOTHESIS OF SBI
● PRODUCT & SERVICES

35
 ● VEHICLE LOAN OF STATE
BANK OF INDIA

● SBI NEW CAR LOAN SCHEME

SBI offers you the best deal for financing your new car. Lowest interest
rates, lowest EMI, minimal paperwork and quick disbursement.

❖Salient features:

● Lowest Interest Rates & EMI;

● Longest Repayment Tenure (7 years);
● Financing on ‘On-Road price':
o On-Road price includes Registration, Insurance and
Extended Warranty/ Total Service Package/ Annual
Maintenance Contract/ Cost of Accessories
● Interest calculated on Daily Reducing Balance;
● No Prepayment Penalty or Foreclosure Charges;
● No Advance EMI;
● We also reimburse finance for the cars purchased out of your own
funds at a rate of interest applicable to New Car Financing:
o Car should not be more than 3 month old
● Optional SBI Life Insurance cover available;
● Overdraft facility available.

36
 ❖Purpose

For purchase of new passenger cars, Multi Utility Vehicles (MUVs) and
SUVs.

❖Eligibility

To avail an SBI Car Loan, you should be an individual aged 21 to 65

years, belonging to one of the following 3 categories:

Category Income Criteria Max. Loan Amount

Regular employees of the Net Annual Income of 48 times of the Net

State / Central Government, applicant and/or Monthly Income
Public Sector Undertaking, co-applicant if any,
Private Company or a together should be a
reputed establishment. minimum of Rs.
3,00,000/-

Professionals, self-employed, Net Profit or Gross 4 times Net Profit or

businessmen, Taxable income of Rs. Gross Taxable income
proprietary/partnership firms 4,00,000/- p.a. as per ITR after adding
who are income tax assesses. (The income of a back depreciation and
co-applicant can be repayment of all
clubbed together) existing loans

37
Person engaged in Net Annual income of 3 times Net Annual
agricultural and allied applicant and/or co Income
activities. applicant together
should be a minimum of
Rs. 4,00,000/-

❖Documents Required
You would need to submit the following documents along with the completed
application form:

Salaried Non-Salaried/ Person engaged in agricultural

Professional/Businessmen and allied activities.

Statement of bank account Statement of bank Statement of bank account for

for last 6 months. account for last 6 months. last 6 months.

2 passport size 2 passport size 2 passport size photographs

photographs photographs

Proof of Identity Proof of Identity Proof of Identity

Address Proof Address Proof Address Proof

Income Proof: Latest Income Proof: ITR for Direct agricultural activity (crop
Salary Slip, Form 16 last 2 years cultivation):

● Khasra/Chitta Adangal
(showing cropping
pattern) Patta/Khatoni
(showing land holding)
with photograph.
● All land should be on a
freehold basis and
ownership proof to be in

38
 the name of the
borrower.

I.T. Returns or Form 16 for I.T. Returns or Form 16 Allied agricultural activity (like
the last 2 years. for the last 2 years. Dairy, Poultry, Plantation/
Horticulture)

● Documentary proof of
running of the activities
to be provided.

Audited Balance sheet,

P&L statement for 2
years, Shop &
establishment act
certificate / sales tax
certificate / SSI registered
certificate / copy of
partnership.

Proof of Identity : - (Copy of any one) Passport/ PAN Card/ Voters ID card/ Driving
License etc. Address Proof :- (Copy of any one) Ration card/Driving License/Voters
ID card/Passport /Telephone Bill/ Electricity bill/Life Insurance policy

Financing
Net Annual Income upto Rs. Net Annual Income more than Rs. 10 lac
10 lac
85% of 'On-road Price' 85% of "ex-showroom price" or 80% of
"On-road price", to be decided by the
borrower

❖Repayment

You can enjoy the longest repayment period in the industry with us: 84
months.

39
 ❖Interest

Click here to view the interest rates

❖Processing Fee

0.51% of loan amount, Min. Rs. 1020/-, Max. 10200/- Waived till
31.03.2016.

❖Security

As per Bank's extant instructions.

● 2-WHEELER LOAN

SBI provides the best Two- Wheeler loan scheme for you to take a loan
for the purchase of a new Two- Wheeler.

SBI offers you:

● No Advance EMI;
● Lowest interest rates ;
● Lowest EMI;
● LTV 85% of �On Road Price� of vehicle;
● Interest Calculated on Daily Reducing Balance;
● Flexibility of payment of EMI anytime during the month;
● Low processing fee (only 1.22% of loan amount);
● Free Accidental insurance ;
● Optional SBI Life cover;

40
 ● The Scheme

● Purpose

To provide finance for purchase of new Two-wheelers viz.

scooter/motorcycle/ moped/battery-operated vehicles.

● Eligibility

To avail an SBI Two Wheeler Loan, you should be:

● Individuals between the age of 21-65 years of age.

● A Permanent employee of State / Central Government, Public
Sector Undertaking, Private company or a reputed
establishment or
● A Professionals or self-employed individual who is an income
tax assessee or
● Person engaged in Agricultural and allied activities.
● Minimum Net Annual Income Rs. 75,000 (for regular
petrol/diesel/gas operated scooters & motorcycles) and Rs.
60,000 (mopeds and battery-operated Two-wheelers)-

● Salient Features

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 ● Loan Amount

● For salaried persons, the maximum loan amount is restricted to

6 times Net Monthly Income (NMI), i.e. net of all deductions
including actual monthly tax deductions at source.
● In case of others, the maximum loan amount is restricted to
half of Net Annual Income (NAI), i.e. income as per latest
income tax return filed less taxes payable.
● For agriculturists, the net annual income should be arrived
based on the nature of their activity (i.e. farming, dairy poultry,
orchards, etc) land holding, cropping pattern, yield, etc., and
the average level of income derived therefrom in the area.

● Documents Required

The following papers are to be submitted along with the loan application:

● Statement of Bank account of the borrower for the 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 and TDS
certificate-Form 16 in case of salaried persons
● Copy of Income Tax Return for last two financial years, duly
acknowledged by ITO for professionals, self-employed and
others.
● Proof of official address for non-salaried individuals

42
 ● Margin

15% of the on the road price (which includes vehicle registration charges,
insurance, one-time road tax).

● Repayment

You can repay the loan within 36 months.

● Processing Fee

1.22% of Loan amount

43
 ● Auto Loans Interest Rates
Auto Loans Interest Rates w.e.f. 01.08.2016 (Base Rate 10.00 % p.a.)

Scheme Name Tenure Interest Rate

SBI CAR LOAN For All Tenure 0.45% above base rate i.e.
SCHEME 10.45% p.a.

SBI Combo Loan Scheme For All Tenure 0.45% above base rate i.e.
10.45% p.a.

NRI Car Loan For All Tenure 0.45% above base rate i.e.
10.45% p.a.

Used Car Loans Used Car Up to 3 years 7.25% above Base Rate
Loans i.e. 17.25% p.a.

Certified Pre-owned car Up to 3 years 6.00% above Base Rate

loan i.e. 16.00% p.a.

SBI Loyalty Car Loan Car Loan, Combo Loan, 0.20% above BR i.e.
Scheme NRI Car Loan 10.20% p.a.

SBI NANO YOUTH CAR For All Tenure 0.75% above base rate i.e.
LOAN SCHEME 10.75% p.a.

SUPER BIKE LOAN For All Tenure 3% above base rate i.e.
SCHEME 13.00% p.a.

SBI Two wheeler loan For All Tenure 8.25% above Base Rate
i.e. 18.25% p.a.

44
 ● Fees and Charges
Scheme Name Processing fee
SBI CAR LOAN SCHEME 0.51% of the loan amount with a
minimum of Rs 1020 and maximum of
Rs 10200

SBI Combo Loan Scheme 0.51% of the loan amount with a

minimum of Rs 1020 and maximum of
Rs 10200

NRI Car Loan 0.51% of the loan amount with a

minimum of Rs 1020 and maximum of
Rs 10200

Used Car Loans Used Car Loans 0.51% of the loan amount with a
minimum of Rs 1020 and maximum of
Rs 10200

Certified Pre-owned car loan 0.51% of the loan amount with a

minimum of Rs 1020 and maximum of
Rs 10200

SBI Loyalty Car Loan Scheme 0.25% of the loan amount with a
minimum of Rs 500/ and maximum of Rs
5000

SBI NANO YOUTH CAR LOAN 0.51% of the loan amount with a
SCHEME minimum of Rs 1020 and maximum of
Rs 10200

45
 ❖ HYPOTHESIS OF STATE BANK OF INDIA

❖ The Bank of India played an important role in the field of loan

schemes in the theory of the gold, plots, agriland, home.

❖ The customer gives preference to the Bank of India for getting

loan scheme Hypothesis, LIC policies, F.D.R Bonds, Post

Offices etc.

PRODUCTS AND SERVICES

SBI offers :-

● Working Capital Finance

● Project Finance
● Deferred Payment Guarantees
● Corporate Term Loans
● Structured Finance
● Dealer Financing
● Channel Financing
● Equipment Leasing
● Loan Syndica on
● Financing Indian Firms Overseas Subsidiaries or JVs
● Construc on Equipment Loan

46
 CHAPTER NO. 5

★ CONCLUSION

★ SUGGESTIONS
& RECOMMENDATIONS

47
 ★ CONCLUSION

It can be concluded that customers have a good response toward

SBI providing good services to them. The bank has a wide customer

base, so the bank should concentrate on this to retain these customers.

In the present scenario SBI is the largest advanced product issuer in

India. Within a very short period of time the achievement made by

SBI is excellent, which a normal bank cannot expect but it is being

done by SBI. It happens due to employee dedication towards the

organization.

● Customized advance product.

● Better customer services.

● Fastest customer problem solving techniques.

● Customer retention apart from all the above, SBI believes in

providing good customer service.

● Customer services to their customer which is a key factor for

succeeding future

48
 ★ SUGGESTIONS &
RECOMMENDATIONS

Customer awareness programs are required so that more people can

be attracted towards advanced products.
If there are any kind of hidden charges that must be disclosed to the
customer before giving the loan to them.
SBI must take some steps so that customer verification by
customer verification by customer care that one customer has got their
loan on time or not. It must be before a certain date so necessary steps can
be taken. SBI should be more concerned about physical verification
rather than phone verification so it will avoid fraud or cheating.
○ Advance product selling agent must not give any type of
wrong information regarding an advance product.
○ For better service new offers would be required.
○ SBI customer care should be more concerned about the
fastest settlement of customer problems.
○ Agents should be well educated & properly trained to
convince people about different advanced products.
○ The bank should increase the period for repayment of the
loan.
○ SBI should focus more on Retaining existing customers.
○ Loan sanction date should be according to customer
confidence.
○ A customer awareness programme should be taking place in
rural areas.

49
 CHAPTER NO. 6

● Bibliography

50
 ● BIBLIOGRAPHY

BANKING LAW AND PRACTICE

– P.N. VARSHNEY
www.SBI.co.in
www.google.com

51