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INDUSTRIAL PROFILE

Introduction

The Financial services industry includes firms that deal with the management,

investment, transfer, and lending of money. Though every company handles money

in the course of doing business, financial institutions actually make money their

business; rather than selling a line of physical products, they offer customers their

fiscal expertise. The industry itself is very large, encompassing everything from

small, local banks to the multinational investment banks regularly featured in news

headlines.

Financial system and markets in India Government of India, Ministry of Finance at

the helm, statutes, statutory authorities, financial intermediaries, other financial

institutions, agents who operate in the markets etc.

Financial Management is an integral part of Business Management. Finance is one of the

key functions in an organisation. The other key functions in an organisation are:

1. Production

2. Human Resources

3. Marketing

Some of the key finance functions are:

1. Financial planning and estimation of finance required for the organisation

2. Mobilisation of financial resources required as above

3. Ensuring that the funds are available in adequate quantity at appropriate time

and at an affordable cost

4. Management of cash in the organisation through cash flow statement

5. Management of investment outside the business enterprise in other

organisations

6. Management of risk in dealing with foreign exchange for imports and export

Short-term and long-term objectives of Financial Management

Short-term objective

The short-term objective of Financial Management is to procure financial resources

at an affordable cost thereby increasing the return to the shareholders in the form of

Earnings PerShare (EPS). EPS comprises two elements namely Dividend per share

(DPS) and Retained Earnings per share (REPS or Reserves per share). This

objective is often times referred to as profit maximisation. This is known as the

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short-term objective as it is done on a continuous, year-to-year basis. One or more of

the following measures can achieve this:

1. Monitoring of costs on a continuous basis through budgets

2. Suitable cost reduction techniques wherever the costs are high

3. Minimisation of cost of borrowed capital from outside through financial

discipline

4. Proper mix of equity and debt (known as financial leverage

Long-term objective

The long-term objective of financial management is to increase the wealth of the

shareholders. The term wealth refers to various business assets of the enterprise

that are free of debt. This means that this wealth belongs to the equity shareholders.

It is often reflected in the book value of the share as reflected in the balance sheet.

Equity share capital + Reserves and Surplus

INDIAN BANKING SYSTEM:

Organized banking was active in India since the establishment of the general bank of

India in 1786. After the independence, the reserve bank of India RBI was established

as the central bank and in 1955, the imperial bank of India the biggest bank at the

time ,was taken over by the government to from state owned state bank of India .

RBI had undertaken an exercise to merge weak banks to strong banks and the total

number of banks, thus reduced from 566in 1951 to 85 in 1969.

With the objective of reaching out to masses and meeting the credit needs of all

sections of people, the government nationalized 14 large banks in 1969 followed by

another 6 banks in 1980. This period saw enormous growth in the number of the

branches and the banks branches network become wide enough to reach the

weakest sections of the society in a vast country like India. SBIs network of 9033

domestic branches and 48 overseas offices is considered to be one of the largest for

any banks in the world

The economic reforms unleashed by the government in early nineties included

banking sector too, to a significant extant. Entry of new private sector banks waspermitted under specific guidelines issued by RBI. A number of liberalization and

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deregulation measures aimed at consolidation, efficiency productivity, asset quality

capital adequacy and profitability have been introduced by the RBI to bring Indian

banks in line with international beat practices.

Banks are prone to crisis:

The traditional bank has an inherent tendency to crisis. This is because the bank

borrows short terms and lends leveraged long term. The sum of deposits and the

banks capital will never equal more than a modest percentage of the loans the bank

has outstanding.

Even if liquidity is not a concern, if there is no run on the bank, banks can simply

choose a ban portfolio of loans, and lose more money than they have. The US

Savings and Loan Crisis in the late 1980s and early 1990s is such an incident.

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STRUCTURE OF THE INDIAN BANKING INDUSTRY

The Indian Banking industry, which is governed by the Banking Regulation Act of

India, 1949 can be broadly classified into two major categories Non-Scheduled

Banks and Scheduled Banks.Scheduled banks comprise commercial banks and

the co-operative banks. In terms of ownership, commercial banks can be further

grouped into nationalized banks, the Stat Bank of India and its group banks, regional

rural banks and private sector banks these banks have over 67,000 branches spread

across the country.

The first phase of financial reforms resulted in the nationalization of 14 major banksin 1969 and resulted in a shift from Class banking to Mass banking. This in turn

resulted in a significant growth in the geographical coverage of banks. Every bank

had to earmark a minimum percentage of their loan portfolio to sectors identified as

priority sectors. The manufacturing sector also grew during the 1970s in protected

environs and the banking sector was a critical source. The next wave of reforms saw

the nationalization of 6 more commercial banks in 1980. Since then the number of

scheduled commercial banks increased four-fold and the number of bank branches

increased eight-fold.

After the second phase of financial sector reforms and liberalization of the sector in

the early nineties, the Public Sector Banks (PSB) s found it extremely difficult to

compete with the new private sector banks and the foreign banks. The new private

sector banks first made their appearance after the guidelines permitting them were

issued in January 1993. Eight new private sector banks are presently in operation.

These banks due to their late start have access to state-of-the-art technology, whichin turn helps them to save on manpower costs and provide better services.

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STRUCTURE OF THE INDIAN BANKING

5

RESERVE BANK OF INDIA

Central Bank and Supreme Monetary Authority

Scheduled of Banking Sector

COMMERICAL BANKS CO-OPERATIVE BANK

Foreign

Banks

Regional

Rural

Banks

Urban

cooperative

Banks

Public Banks Private Banks

OLD BANKS New

Banks

State Banks of

India &

Other Banks

Other Nationalized

Banks

State

cooperative

Banks


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MAJOR FOREIGN BANKS IN INDIA ARE:

ABN-AMRO Bank

Abu Dhabi Commercial Bank Ltd.

American Express Bank Ltd BNP Paribas

Citibank

HSBC Ltd

PUBLIC BANKS IN INDIA:

The Banking System in India is dominated by nationalized banks. TheNationalization of Banks in India took place in 1969 by Mrs. Indira Gandhi the then

Prime Minister. The major objective Behind Nationalization Banks was to spread

banking Infrastructure in Rural areas and make available cheap finance to Indian

farmers. Fourteen banks were nationalized in 1969. These Banks were

Before 1969, State Bank of India (SBI) was the only public sector bank in India. SBI

was nationalized in 1955 under the SBI Act of 1955. The second phase of

nationalization of Indian banks took place in the year 1980. Seven more banks were

nationalized with deposits over 200 crores. Some of the following public sector

banks in India are listed below.

LIST OF PUBLIC SECTOR BANKS IN INDIA IS AS FOLLOWS:

Allahabad Bank Andhra Bank

Bank of Baroda

Bank of Maharashtra

Canara Bank

Central Bank of India

Corporation Bank

Dena Bank

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Oriental Bank of Commerce

Bank Of Baroda

State Bank of Bikaner & Jaipur

State Bank of India (SBI)

MAJOR PRIVATE BANKS IN INDIA ARE:

Bank of Rajasthan

Centurion Bank of Punjab

UTI Bank

YES Bank

Federal Bank

HDFC Bank

ICICI Bank IDBI Bank

ING Vysya Bank

Types of loans:

A. Secured

A secured loan is a loan in which the borrower pledges some asset (e.g. a car or

property) as collateral for the loan ..A mortgage loan is a very common type of debt

instrument, used by many individuals to purchase housing. In this arrangement, the

money is used to purchase the property. The financial institution, however, is given

security a lien on the title to the house until the mortgage is paid off in full. If the

borrowerdefaults on the loan, the bank would have the legal right to repossess the

house and sell it, to recover sums owing to it.

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http://www.iloveindia.com/finance/bank/private-banks/bank-of-rajasthan.htmlhttp://www.iloveindia.com/finance/bank/private-banks/centurion-bank-of-punjab.htmlhttp://www.iloveindia.com/finance/bank/private-banks/uti-bank.htmlhttp://www.iloveindia.com/finance/bank/private-banks/yes-bank.htmlhttp://www.iloveindia.com/finance/bank/private-banks/federal-bank.htmlhttp://www.iloveindia.com/finance/bank/private-banks/hdfc-bank.htmlhttp://www.iloveindia.com/finance/bank/private-banks/icici-bank.htmlhttp://www.iloveindia.com/finance/bank/private-banks/idbi-bank.htmlhttp://www.iloveindia.com/finance/bank/private-banks/ing-vysya-bank.htmlhttp://en.wikipedia.org/wiki/Secured_loanhttp://en.wikipedia.org/wiki/Pledgeshttp://en.wikipedia.org/wiki/Collateral_(finance)http://en.wikipedia.org/wiki/Mortgage_loanhttp://en.wikipedia.org/wiki/Househttp://en.wikipedia.org/wiki/Lienhttp://en.wikipedia.org/wiki/Default_(finance)http://www.iloveindia.com/finance/bank/private-banks/bank-of-rajasthan.htmlhttp://www.iloveindia.com/finance/bank/private-banks/centurion-bank-of-punjab.htmlhttp://www.iloveindia.com/finance/bank/private-banks/uti-bank.htmlhttp://www.iloveindia.com/finance/bank/private-banks/yes-bank.htmlhttp://www.iloveindia.com/finance/bank/private-banks/federal-bank.htmlhttp://www.iloveindia.com/finance/bank/private-banks/hdfc-bank.htmlhttp://www.iloveindia.com/finance/bank/private-banks/icici-bank.htmlhttp://www.iloveindia.com/finance/bank/private-banks/idbi-bank.htmlhttp://www.iloveindia.com/finance/bank/private-banks/ing-vysya-bank.htmlhttp://en.wikipedia.org/wiki/Secured_loanhttp://en.wikipedia.org/wiki/Pledgeshttp://en.wikipedia.org/wiki/Collateral_(finance)http://en.wikipedia.org/wiki/Mortgage_loanhttp://en.wikipedia.org/wiki/Househttp://en.wikipedia.org/wiki/Lienhttp://en.wikipedia.org/wiki/Default_(finance)


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In some instances, a loan taken out to purchase a new or used car may be secured

by the car in much the same way as a mortgage is secured by housing. The duration

of the loan period is considerably shorter often corresponding to the useful life of

the car. There are two types of auto loans, direct and indirect. A direct auto loan is

where a bank gives the loan directly to a consumer. An indirect auto loan is where a

car dealership acts as an intermediary between the bank or financial institution and

the consumer.A type of loan especially used in limited partnership agreements is the

recourse note.

A stock hedge loan is a special type ofsecurities lendingwhereby the stock of a

borrower is hedged by the lender against loss, using options or otherhedging

strategies to reduce lender risk.

A pre-settlement loan is a non-recourse debt this is when a monetary loan is given

based on the merit and awardable amount in a lawsuit case. Only certain types of

lawsuit cases are eligible for a pre-settlement loan. This is considered a secured

non-recourse debt due to the fact if the case reaches a verdict in favor of the

defendant the loan is forgiven.

Home loan charges.

These interest rates matter a lot and influence your monthly installment burden.

Hence, it is very important to choose that home loan which offers the best deal of

interest rate to you.

The process of approval of home loans in India is simple. The applicant can credit

his/her property against the loan or if applicant is a salaried individual then he/she

should enclose documents proving his/her earnings. The other related identification

proofs vary from lender to lender.

As a last piece of advice, one must always remember to go through with all terms

and conditions mentioned in the home loans document. The home loans market is

one which one can enter very easily. However, a little amount of intelligence and

awareness can help an individual get the best deal available in the market. So, pick

up a pen and a paper and choose the loan that will get you the home of your choice.

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A boom in the retail sector has seen an immense increase in the home loan interest

rates over the past 4 years. Home loan rates have doubled over the past 4 years.

The present problem of inflation has also had a negative effect on the consumers as

the fixed and the floating rate of interests have soared to an alarming degree. This in

turn has certainly affected the loan eligibility for home loans in India. This has also

lead to loan borrowers re-evaluating their options to avail new eligibility criteria.At

this time, it is important to understand how to enhance ones home loan eligibility.

Given below are some ways which can help in this Endeavour:

Increasing the home loan tenure:

The easiest method available to increase ones home loan eligibility is by taking

home loans for the Maximum Tenure. As an example, let us consider an individual

who earns a monthly salary of Rs 60,000. He decides to purchase a house, and for

that he buys a home loan. After deducting a monthly expenditure of Rs 35,000, the

individual is able to save Rs 25,000. Undoubtedly, he will use his savings for

repaying the loan in the form of equated monthly installments (EMI).

Now, lets consider that the installments for a home loan of Rs 1 lakh come at an

interest rate of 12.5%. If the loan is taken for tenure of 15 years, the EMI calculated

stands at Rs 1,232.50. For this data, his home loan eligibility will be 20.3 lakh.

However, it is possible for the same individual to increase his home loan eligibility by

around Rs 2 lakh if he can extend his tenure to 20 years. Assuming the same rate of

interest i.e. 12.5% and now 20 year tenure on Rs 1 lakh loan, the EMI turns out to be

Rs 1,136. Consequently, the home loan eligibility comes to Rs 22 lakh.

Dont rush towards a home loan:

Less information is as harmful as wrong information.

The importance of this statement lies in the fact that today there are many banks

offering different varieties of home loans to individuals. Nowadays, almost every

bank is offering a home loan with the repayment period of maximum 20 years. The

next important thing to consider after the tenure is the rate of interest. For thatreason, it is always advised, never to rush to purchase a home loan.

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It is better to carry out a research regarding the available home loan schemes and to

study the market meticulously to make the best use of what many banks and

housing finance companies are willing to lend before making a choiceThe next

decision that an individual needs to make is to choose between floating and fixed

interest rate on home loan, which is largely based on ones personal preference and

knowledge about the both. However, the floating rate home loans are available for

anywhere between 11.5-13%.Also, it might not be necessary that the first scheme

being presented by a bank employee would be the best for an individual. Hence,

always ask questions and enquire about the various schemes available with the

bank, and then make the final call.

Whenin need go for a joint loan:

If one spouses income comes short of the required amount set by the bank to issue

a loan, then several banks and HFCs have come up with a joint loan option. This

option guarantees a loan for both the husband and wife earning a combined income

of Rs 1 lakh per month. The choice for a greater loan is available with either husband

or wife earning Rs 60,000 per month.

B. Unsecured:

Unsecured loans are monetary loans that are not secured against the borrower's

assets. These may be available from financial institutions under many different

guises or marketing packages:

credit card debt

personal loans

bank overdrafts

credit facilities or lines of credit

corporate bonds

The interest rates applicable to these different forms may vary depending on the

lender and the borrower. These may or may not be regulated by law. In the United

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Kingdom, when applied to individuals, these may come under the Consumer Credit

Act 1974.

BANKING SERVICES IN INDIA

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KEY PRODUCT ANALYZED

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NOTE. This diagram is showing the Banking Key Products such as Deposits,

Retail credit, Credit card, Debit card, Internet banking.

BRANCHES OF VARIOUS BANKING:

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STATE BANK OF INDIA BRANCHES:

State Bank of India (SBI) is India's largest commercial bank. SBI has a vast domestic

network of over 9000 branches (approximately 14% of all bank branches) and

commands one-fifth of deposits and loans of all scheduled commercial banks in

India.

ICICI BANK BRANCHES:

ICICI Bank is India's second-largest bank. The Bank has a network of about 573

branches and extension counters and over 2,000 ATMs. ICICI Bank was originally

promoted in 1994 by ICICI Limited, an Indian financial institution, and was its wholly-

owned subsidiary

HDFC BANK BRANCHES:

HDFC Was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its

registered office in Mumbai, India. The Bank commenced operations as a Scheduled

Commercial Bank in January 1995. The Housing Development Finance Corporation

Limited (HDFC) was amongst the first to receive an 'in principle' approval from theReserve Bank of India (RBI) to set up a bank in the private sector, as part of the

RBI's liberalization of the Indian Banking Industry in 1994.

Headquartered in Mumbai, HDFC Bank, has a network of over 531 branches spread

over 228 cities across India. All branches are linked on an online real-time basis.

Customers in over 120 locations are serviced through Telephone Banking. The Bank

also has a network of about over 1054 networked ATMs across these cities. HDFC

Bank's ATM network can be accessed by all domestic and international Visas /

MasterCard Bank Of Baroda was established in 1895 at Lahore. BOB has the

distinction of being the first Indian bank to have been started solely with Indian

capital. In 1969, Bank Of Baroda was nation

IMPACT OF GLOBALIZATION ON BANKING SERVICE IN INDIA

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BUSINESS ENVIRONMENT OF GLOBAL BANK:

Global Bank has undergone a series of substantial changes in the last 10 years,

starting with the deregulation of the U.S. financial services industry in the late 1990s.

Seeking to rapidly expand its portfolio, the bank undertook a series of mergers and

acquisitions. Global Bank now has over 200 branches across the western United

States, and offers a complete line of integrated financial services, including:

Lending. This includes credit cards, consumer loans (such as, auto and line ofcredit), mortgage, and home equity.

Investing. This includes certificates of deposit, trust services, brokerageservices (including securities), annuities, individual retirement accounts, andmutual funds.

Financial planning. This includes comprehensive financial planning services,including retirement, education, tax, and estate planning, including both future

planning and plan execution services.

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16

HOME LOAN INDUSTRY

OUR FOUNDER and CEO

Home Loan is committed to helping our customers navigate through all of life'sfinancial challenges.

John Murphy


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IMPORTANT DATES IN HOME LOAN'S HISTORY

John Murphy acquires Bank charter and begins buildingHome Loan Investment Bank

Home Loan Investment Bank opens first headquarters in

Providence, Rhode IslandResidential lending expands to mid-Atlantic

Assets exceed $60 million. Home Loan Investment Bankbecomes the first mortgage originator to sell a pool of homeequity loans to Freddie Mac and the second to Fannie Mae

Assets exceed $100 million

FDIC deposit insurance granted

Assets exceed $200 million

Home Loan Investment Bank completes first loansecuritization, and also reactivates SBA Lending Program

Assets exceed $250 million. Home Loan Investment Bankopens corporate headquarters at 2 Altieri Way in Warwick,Rhode Island

Home Loan Investment Bank receives Federal Savings Bankstatus

Home Loan Investment Bank opens state-of-the-art callcenter

Residential lending expands to the west coast

Home Loan Investment Bank receives SBA "PreferredLender" status in Rhode Island, Massachusetts, NewHampshire and New York

Home Loan Investment Bank receives "outstanding" rating forCommunity Reinvestment for the 10th consecutive year

Commercial lending expands into mid-Atlantic states. Bank

begins offering USDA loansHome Loan Investment Bank surpasses $10 billion inmortgage originations

Home Loan Investment Bank is recognized as one of FreddieMac's top 150 lenders in the country

Home Loan Investment Bank website revamped to betterserve customer needs


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Home Loans in India

Housing loan is the finance taken for buying/modifying a real estate property. HomeLoans, Home extension loans, home improvement loans, NRI loans and home equityloans fall under the category of housing loans.

.

Any Resident or Non-resident individual who is planning to buy a house in India can

apply for a Home loan. If you have decided to buy a property in the near future you

can even apply for a loan before you select your property. Once you decide the

maximum amount that you can put into the property, all Housing Finance Institutions

let you know how much you are eligible for and this helps you plan out your budget.

The Home loan sector in India is the pivotal role player in the growth of the real

estate scenario in India. With tax incentives given to the housing finance sector inthe annual budget of 2001, transactions related to buying and selling of residential

properties increased considerably and was much higher as compared to previous

years.Since the new class of buyers are relatively younger set of customers who are

more aware about legal documentation and approvals, buyers are now more 'end-

users' rather than investors; the property market in Indiaundergoes transformation to

align itself with global standards with an increased emphasis on quality & cost

control and documentation methods. In the current economy of India, the real estatesector has the maximum propensity to generate income and demand for materials,

equipment and services. It can be said that housing finance companies were formed

for co-existing with buyer's requirements of housing loans for investing in properties.

Home loans are made available by financial institutions to both Indian and NRI

customers at floating and fixed rate of interest and also at attractive EMI options.

For construction or buying a new home

For home repairs and renovations

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For purchase of plots

Against mortgage of property

No tax benefits are available for NRI customers unless you file returns and therebybecome eligible to avail of the tax benefits. Besides home loans, Commercial

property loans are also available and different financial institutions in India provide

commercial loans at different rates and different upper limits.

Real estate loans are available to builders, promoters and real estate developers.

The experience and financial standing of the builders is taken into account before the

loan is granted which is to be returned with the minimum installments. Today, the

amount of money that a city dweller spends on rent is roughly the same, or only

slightly less than the amount he pays as an EMI on a housing loan. Earlier the home

loan sector in India was solely dependent on nationalized and public sector banks,

but the entry of public sector banks into the housing finance business marked the

beginning of the first round of interest rate cuts. And this reduction in interest rates

has enhanced the borrowing power of customers. Moreover, HFCs are offering

incentives to attract investors like

Some companies sanction the housing loan without requiring you to identify

property as a pre-requisite for eligibility.

Free accident insurance & property insurance

Waiving of pre-payment penalty

Waiving of processing fee

There are a few documents which the finance companies require for setting up

criteria for eligibility of Home loans.

Salaried Employee Self-employed

The latest salary slip showingstatutory deductions

Computation of income for theprevious two years, certified by aChartered Accountant

Form 16 (showing tax deducted at

source by employer)

Profit & Loss Account and Balance

Sheet for the previous two years,certified by a Chartered Accountant

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Proof of age (birth certificate/voteridentity card/passport/school-leavingcertificate/valid driving license

Proof of age (birth certificate/voteridentity card/passport/school-leavingcertificate/valid driving license)

Proof of residence (phone

bill/electricity bill/ration card).

Proof of residence (phone

bill/electricity bill/ration card).

The realty boom in India has given a new dimension to the finance sector in India -

both in Home Loans and Home Insurance segments. This has not only given a

competitive edge to the finance companies to provide attractive options to customers

but has also contributed to the increased investments in the real estate sector. This

has resulted in 13 new institutions foraying into the housing finance business in the

last three years.

Major Home Loan Providers

Banks & PublicSector HousingFinanceCompanies

State Bank of India, Corporation Bank, Bank Of Baroda,Central Bank, Dena Bank, Allahabad Bank, Bank ofMaharashtra, Bank of Baroda Housing Finance, Can FinHomes, GIC Housing Finance, LIC Housing Finance,BOB Housing Finance, SBI Home Finance, Cent bankHome Finance, HUDCO, LIC, etc.

Financial

Institutions

HDFC, ICICI Ltd, M&MFL, HSBC, Standard Chartered-

Grindlays, IDBI Bank, etc

Home Loan Interest Rates

Interest Rates for Home Loans are undoubtedly the most important parameter to

factor into your calculations. And in most cases is the decisive factor for an investor

to narrow down on a certain Housing Finance Company's home loan offer. The

interest on housing loans in Indiais usually calculated either on monthly reducing or

yearly reducing balance basis.

Comparative Chart on Home Loan Interest Rates

Financial Institutions Tenure (inyears)

Rate of InterestFixed

Rate of InterestFloating

ProcessingCharges

State Bank of India Up to 5years

12.25% 10.75% 0.50% of loanamount

5-20 years 12.25 % 11.25 % -

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ICICI 0-20 years 10.5% 9.5% 1% of loan amount

LIC Housing FinanceLtd.

0-20 years 10.5%- 11% 9.5% 0.5 per cent of theamount (max. Rs.

5000)

M&MFL 0-20 years 13.25% 11.25% 1% of the loanamount +applicable

service taxes andcess)

HDFC 0-20 years 10.75% - 1% of loan amount

Citibank 0-20 years 9.75% 9.00% 1% of loan amount

Canara Bank Up to 5years

10.75%- -

Above 5yrs up to10 yrs

11.00%- -

Standard CharteredBank

0-20 years 10.5% 9.25% 1.25 % of loanamount

Canfin Homes Ltd 0-20 years 9.25%-12% - -

IndusInd Bank 0-20 years 10.5 % (for 20

9.25 % (for 20 Lakhs)

1.25% of loanamount

Saraswat Bank 0-20 years 11 10 -

HUDCO 0-20 years 10 % (< 10 lacs)

10.5% (>10 lacs)

9% (< 10 lacs)

9.5% (>10 lacs)

0.5 % of loan

amount(Max. Rs.250)

Most HFCs follow the yearly reducing-balance method, which accounts for your

principal repayments only at the end of their financial year. Thus, you pay interest on

the principal that you have already returned to the HFC. The effective interest rate is

thus higher than the quoted interest rate by around 0.7%. Banks and some HFCs, on

the other hand follow the daily or monthly reducing-balance method, by which the

principal on which you pay interest reduces every month as you pay your EMIresulting in a lower interest burden. Thereby, the EMI for the monthly reducing

system is effectively lesser than the yearly reducing system of calculating interest.

Moreover, there are two kinds of interest rates for housing finance in India - Fixed

rate and Floating rate interests. Some HFC's have fixed rate of interest which means

that the interest rates remain unchanged for the entire duration the loan. This

basically means that you do not benefit, even if the rates of interest drop in the

market while the floating rate interest fluctuates according to the market lending rate.

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The interest rates may vary from institutions to institutions and generally range from

about 12.5% to around 16%. Repayment is in the form of EMI's (equated monthly

installments) so, longer the tenure, the more you pay in interest, but your monthly

payment will be less. Generally, the maximum tenure of home loans is 15 years, with

a few lenders offering tenure of 20 years or more (ICICIhas recently launched a 30

year loan).

Types of Home Loans

A person seeking investments for house or a property opts for Home Loans for a

variety of purposes ranging from construction to renovation. The Housing Finance

Companies (HFCs) now offer individuals with various alternatives to choose from

while buying a home loan. And the availability of Home Loans offered is as varied as

their requirements.

Home Purchase Loans

Home Construction Loans

Home Improvement Loans

Home Extension Loans

Home Conversion Loans

Land Purchase Loans

Stamp Duty Loans

Bridge Loans

Balance Transfer Loans

Refinance Loans

Loans to NRIs

Home Purchase Loans:

This is the basic home loan for the purchase of a new home.

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Home Conversion Loans:

This is available for those who have financed the present home with a home loan

and wish to purchase and move to another home for which some extra funds are

required. Through a home conversion loan, the existing loan is transferred to the

new home including the extra amount required, eliminating the need for pre-payment

of the previous loan.

Land Purchase Loans:

This loan is available for purchase of land for both home construction or investment

purposes

Stamp Duty Loans:

This loan is sanctioned to pay the stamp duty amount that needs to be paid on the

purchase of property.

Bridge Loans:

Bridge Loans are designed for people who wish to sell the existing home and

purchase another. The bridge loan helps finance the new home, until a buyer isfound for the old home.

Balance-Transfer Loans:

Balance Transfer is the transfer of the balance of an existing home loan that you

availed at a higher rate of interest (ROI) to either the same HFC or another HFC at

the current ROI a lower rate of interest.

Re-finance Loans:

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Refinance loans are taken in case when a loan for your house from a HFI at a

particular ROI you have taken drops over the years and you stand to lose. In such

cases you may opt to swap your loan. This could be done from either the same HFI

or another HFI at the current rates of interest, which is lower.

NRI Home Loans:

This is tailored for the requirements ofNon-Resident Indianswho wish to build or

buy a home or property in India. The HFCs offer attractive housing finance plans for

NRI investors with suitable repayment options.

Tax Benefits on Home Loans

As the Indian real estate marketmakes an upward swing, and investors opt forhousing

finance orhome loans, tax benefits obtained from them is a lucrative option. Customers

availing ofHome Loans can claim a certain portion of the interest and principal that they

pay towards the loan installments for reducing tax liability. Resident Indians are eligible

for certain tax benefits on principal and interest components of a loan under the Income

Tax Act, 1961. Moreover, an added tax benefits under Sec 80 C on repayment of

principal amount up to Rs. 1,00,000 p.a. can be availed that can further reduce your tax

liability by about Rs. 30,000 p.a. Tax benefits can be claimed on both the principal and

interest components of the home loan as per the Income Tax Act, 1961. These

deductions are available to assesses, who have taken a loan to either buy or build a

house, under Section 24(b). Interest on borrowed capital is deductible up to Rs 150,000

if the following conditions are satisfied:

Capital is borrowed on or after April 1, 1999 for acquiring or constructing a

property.

The acquisition/construction should be completed within 3 years from the end of

the financial year in which capital was borrowed.

The person, extending the loan, certifies that such interest is payable in respect of

the amount advanced for acquisition or construction of the house.

A loan for refinance of the principle amount outstanding under an earlier loan

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taken for such acquisition or construction.

If the conditions stated above are not fulfilled, then the interest on borrowed capital is

deductible up to Rs 30,000 though the following conditions have to be satisfied:-

Capital is borrowed before April 1, 1999 for purchase, construction, reconstruction

repairs or renewal of a house property.

Capital should be borrowed on or after April 1, 1999 for reconstruction, repairs or

renewals of a house property.

If the capital is borrowed on or after April 1, 1999, but construction is not

completed within 3 years from the end of the year, in which capital is borrowed.

In addition to the above, principal repayment of the loan/capital borrowed is eligible for a

deduction of up to Rs 100,000 under Section 80C from assessment year 2006-07.

Home Loan Providers in India

Real estate in India is currently one of the hottest investments options in Asia. A recent

survey of the real estate scenario acknowledge the Indian metropolis of Mumbai,

Bangalore and New Delhi as the top three investors' choices for real estate investment in

Asia. But there were concerns mainly related to the availability of necessary funds for

investment and in the more recent times, the boom in the real estate market opened the

doors for a host of realty funds from financial institutions. Prior to five years, the real

estate segment in India was neither organized nor were there too many large institutions

in the construction industry. But now with an organized finance sector and with the

increase in transparency levels, it has become easier to create financing vehicles.

The decrease in housing loan interest rates and an increase of disposable income has

contributed largely to an increased demand in the residential segment. In spite of a rise

in home loans interest rates and qualitative sanctions being levied by the RBI on banks,

buying interest has not waned because home loans are still cheaper than ten years ago.

The retail markets are also undergoing a defining change with the introduction of larger

retailing formats. The financial institutions also wasted no opportunity in tapping the fundrequirement catering to the inflow of potential buyers in the retail sector. While most

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funds were initially floated by financial Institutions or banks such as HDFC, ICICI Bank

and IDBI Bank to name a few, real estate developers like DLF Universal and even

retailers such as Pantaloons Retails (India) have now entered the real estate sector for

creating more retail facilities and have been hugely successful.

As the realty prices in India skyrockets, housing complexes mushrooming and city

landscapes becoming unrecognizable, the growth across all real estate segments and

experts estimate that demand will remain steady at the currently high levels because of

the improving economic environment and the real estate sector is expected to grow 30%

every year. This rising property prices encourage banks and financial institutions to lend

more with the increase in collateral values. Although the home loan providers have hiked

their rates twice in less than three months, home loanscontinue to be nearly 45 per cent

cheaper than what they were in early 2001. Because if statistics are referred to, the

interest rates which now range between 9-10 per cent, are still much lower than what

they were ten years ago, at 16-17 per cent.

Cars by Price Range

Under Rs. 3Lakhs

Maruti 800, Maruti Alto,Omni

Reva

Tata Nano

Rs. 3-5Lakhs

Ambassador

Chevrolet Aveo U-VA,Chevrolet Spark, Chevrolet OpelCorsa

Fiat Palio, Fiesta, Ford Icon

Hyundai Santro, Hyundai i10,Hyundai Getz

Maruti Zen, Maruti Wagon R, Maruti Versa, Maruti

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Esteem, Maruti Gypsy, Maruti Suzuki A-Star, MarutiSuzuki Zen Estilo, Maruti Suzuki Swift, Maruti SuzukiRitz New, Mahindra Logan

Indigo XL, Indigo Marina

Tata Indica, Toyota Qualis, Tata Indigo CS

Rs. 5-10Lakhs

Chevrolet Swing, Chevrolet Aveo, Chevrolet Tavera,Chevrolet Optra Magnum

Fiat Linea, Fiat Adventure, Fiat Grande Punto, FordFusion

Hyundai Accent, Hyundai Elantra, Hyundai i20, HyundaiVerna, Hyundai Sonata Embera, Honda City ZX, HondaJazz New

Maruti Baleno, Maruti Suzuki Sx4, Maruti Suzuki SwiftDzire, Mahindra Scorpio, Mitsubishi Lancer,MitsubishiCedia, Mahindra Bolero

Toyota Innova, Tata Sumo Victa, Tata Sumo Grande,Tata Safari

Skoda Fabia

Rs. 10-15Lakhs

Chevrolet Forester

Ford Mondeo & Ford Endeavour, Ford Focus

Honda Civic

Skoda Octavia & Combi

Toyota Corolla, Toyota Corolla Altis

Volkswagen Jetta

Rs. 15-30Lakh

Audi A4

Chevrolet Captiva

Honda CR-V,Honda CRV 2008,Honda Civic Hybrid,Honda Accord

Maruti Suzuki Grand Vitara, Mitsubishi Pajero, MercedesC Class

New Skoda Superb New

Opel Vectra

Skoda Laura

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brid.htmlhttp://www.surfindia.com/automobile/honda-accord.htmlhttp://www.surfindia.com/automobile/new-skoda-superb.htmlhttp://www.surfindia.com/automobile/skoda-laura.html


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Toyota Camry, Ford Endeavour Thunder Plus, Terracan& Tucson, Toyota FortunerNew

Volkswagen Passat , Volkswagen Jetta

Rs. 30-90Lakhs

Audi A6, A8 &Audi TT,AUDI Q7

BMW X5, 5 Series & 7 Series

Mitsubishi Montero,Mercedes Benz S-Class, MercedesE Class, S Class, SLK, SL & CLS-Class

Porsche Boxster, Cayenne, 911 Carrera & Cayman S

Toyota Prado

Volvo Xc90, Volvo S80

Above Rs. 1 Crore

AUDI R8

Bentley Arnage, Bentley Continental GT & Flying Spur,Bentley Azure

Maybach

Rolls Royce Phantom

.

Auto Finance

Auto Finance Companies are aggressively marketing their product by offering

innovative and alluring offers to the customers.

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Buoyant & robust economy and huge disposable incomes of youths have

made way to easy auto finance by banks and non-banking finance companies.

The growing auto market of India has opened doors for number of Auto Finance

Companies to provide hassle free auto finance. In India leading banks and non-

banking finance companies (NBFCs) offers auto finance. Multi-national companies

(MNCs) have also entered the finance market, parallel to other auto loan companies,

to grab their share. The market is very competitive and these finance institutions has

come out with innovative offers for customers. The following are the names of

leading banks and other institutions that provide auto finance.

ICICI Bank

Bank of Baroda

HDFC Bank

State Bank of India

Bank of India

Mahindra Finance

Union Bank of India

Standard Chartered

Auto finance is now available from both, banks and non-banking finance companies

(NBFCs). A large number of financing agencies are entering the Indian auto finance

market. Most NBFCs have also arranged tie-ups with dealers and manufacturers. All

these financial agencies together has created purchasing power of customers.Getting auto loans has become quite easy. The finance agencies has come of age

and companies are aggressively marketing different auto loan schemes by offering

innovative and alluring offers to the customers.

Features of Auto Finance

Upton 90% is financed.

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The finance period is between 1 to 5 years.

The interest is calculated on the basis of compound interest.

Equated Monthly Installment (EMI) is worked out for repayment.

Early settlement of the full amount charges a penalty.

Documents Required

Bank statement for the last 6 months

Two passport size photographs

For salaried, latest salary slip and Form 16.

For self employed individuals and professionals, IT returns for the last two

financial years.

CAR FINANCE

Research say that 75% of the total vehicles purchased in the last decade were

financed/ purchased through auto loans.

Financing a dream car has become very simple and easy method. Thanks to multi-

national companies (MNCs) and other private sector banks. All banks and financial

institutions are aggressively marketing their products with innovative service

offerings and incentives. A wide range of flexible and customized financing options

for the purchase of both new and second hand cars are available throughout the

country.

Features of Car Finance

Banks pay up to 90% of the cost of the new vehicle.

In case of used vehicles, banks finance up to a maximum of 85% of the value

of the car.

Generally public sector banks offer lower rate of interest than the non-banking

finance companies.

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Usually the interest is calculated on a monthly reducing balance.

The banks offer repayment tenure of 12 to 60 months.

Few institutions even offer 7 years repayment period.

A salaried person can borrow up to 3 times of the annual salary.

Self employed individuals can borrow up to 6 times of the annual income.

Documents Required

Application Form

Photographs

Proof of income of last two years

Proof of Residence

Proof of identity

Take Note

The income of spouse can be clubbed to increase the loan amount.

Terms and conditions for prepayment of the amount need to be clarified

before agreement

Try to consider taking loan where there is no penalty of prepayment.

List of Companies offering Car Finance

Mahindra Finance

Bajaj Auto Finance

Kotak Mahindra Primus

Sundaram Finance

KTDFC

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WE UNDERSTAND YOUR WORLD

The Housing Development Finance Corporation Limited (HDFC) was amongst the

first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to

set up a bank in the private sector, as part of the RBI's liberalization of the Indian

Banking Industry in 1994. The bank was incorporated in August 1994 in the name

of 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank

commenced operations as a Scheduled Commercial Bank in January 1995.

HDFC is Indias premier housing finance company and enjoys an impeccable track

record in India as well as in international markets. Since its inception in 1977, the

Corporation has maintained a consistent and healthy growth in its operations to

remain the market leader in mortgages. Its outstanding loan portfolio covers well

over a million dwelling units. HDFC has developed significant expertise in retail

mortgage loans to different market segments and also has a large corporate client

base for its housing related credit facilities. With its experience in the financial

markets, a strong market reputation, large shareholder base and unique Consumer

franchise, HDFC was ideally positioned to promote a bank in the Indian environment.

HDFC Bank began operations in 1995 with a simple mission: to be a World Class

Indian Bank. We realized that only a single minded focus on product quality and

service excellence would help us get there. Today, we are proud to say that we are

well on our way towards that goal.

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MANAGEMENT

Mr. Jagdish Capoor took over as the bank's Chairman in July 2001. Prior to this, Mr.

Capoor was a Deputy Governor of the Reserve Bank of India. The Managing

Director, Mr. Aditya Puri, has been a professional banker for over 25 years and

before joining HDFC Bank in 1994 was heading Citibank's operations in Malaysia.

The Bank's Board of Directors is composed of eminent individuals with a wealth of

experience in public policy, administration, industry and commercial banking.

Senior executives representing HDFC are also on the Board. Senior banking

professionals with substantial experience in India and abroad head various

businesses and functions and report to the Managing Director. Given the

professional expertise of the management team and the overall focus on recruiting

and retaining the best talent in the industry, the bank believes that its people are a

significant competitive strength.

BRANCHES

As of March 31, 2008, the Banks distribution network was at 761Branches and 1977

ATMs in 327 cities as against 684 branches and 1,605 ATMs in 320 cities as of

March 31, 2007.

33

March 2006 March 2007 March 2008

Citied 228 316 327

Branches 535 684 761

ATMs 1323 1605 1977


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PERSONAL BANKING

Loan Product Deposit Product Investment & Insurance

Auto Loan

Loan AgainstSecurity

Loan AgainstProperty

Personal loan

Credit card

2-wheeler loan

Commercialvehicles finance

Home loans Retail business

banking

Tractor loan

Working CapitalFinance

ConstructionEquipment Finance

Health CareFinance

Education Loan

Gold Loan

Saving a/c

Current a/c

Fixed deposit

Demat a/c

Safe DepositLockers

Mutual Fund

Bonds

Knowledge Centre

Insurance

General and HealthInsurance

Equity and Derivatives

Mudra Gold Bar

Cards Payment Services Access To Bank

Credit Card

Debit Card

Prepaid Card

--------------------------------Forex Services

-------------------------------- Product & Services

Trade Services

Forex serviceBranch Locater

RBI Guidelines

Net Safe

Merchant

Prepaid Refill

Bill pay

Visa Bill pay

InstaPay Direct Pay

Visa MoneyTransfer

eMoniesElectronic FundsTransfer

Online Payment ofDirect Tax

Net Banking

One View

InstaAlertMobile Banking ATM

Phone Banking

Email Statements

Branch Network

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WHOLESALE BANKING

Corporate Small and MediumEnterprises

Financial Institutions andTrusts

Funded Services

Non FundedServices

Value AddedServices

Internet Banking

Funded Services

Non Funded Services

Specialized Services

Value added services

Internet Banking

BANKS

Clearing Sub-Membership

RTGS sub membership

Fund Transfer

ATM Tie-ups

Corporate Salary a/c

Tax CollectionFinancial Institutions

Mutual Funds

Stock Brokers

Insurance Companies

Commodities Business

Trusts

Investment & Insurances Loans

Mutual Funds

Insurance

Private Banking

Portfolio Investment Scheme

Home Loans

Loans Against Securities

Loans Against Deposits

Gold Credit Card

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Loans are extended for the purchase of:

Commercial Vehicles - Loans for commercial vehicles (this includes buses, trucks,

Tempos, tippers), LCVs (light commercial vehicles, HCVs (heavy commercialvehicles), MCVs (medium commercial vehicles) and three wheelers. Company

provides funding for all models of Telco, Ashok Leyland, Swaraj Mazda, Eicher, Bajaj

Tempo, Volvo etc. The choice is entirely yours.

TYPES OF LOAN

New Vehicles

Used Vehicle / Refinance

Balance Transfer

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ADVANTAGES

o Up to 100% financing.

o Up to 48 months tenor.

o Simpler documentation.

o Quick processing.

o Customized EMI structure.

Single owner

Good average

and within your budget

HDFC Bank's Used Car Loan will put you in the driver's seat. What's more, HDFC Bank also helps you

select good quality used cars and even value them.

Features & Benefits

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Choose any car manufactured in India within a certain age*.

Borrow up to 80% of the value of the car.

Flexible repayment options, ranging from 12 to 60 months.

Borrow up to 3 times your annual salary (for salaried professionals) and 6 times

your annual income (for self employed professionals).

Available for almost all car models at attractive interest rates.

Repay with easy EMIs.

Attractive car loan plans - To Fastrack your loan, just choose the plan that is

right for you.

Additional loan on existing loan - If you are a existing HDFC Bank Auto loan

customer with a clear track record of 12 months or more, then you can get an

additional loan to the extent of your existing loan amount at attractive rate of

interest.

Customer Privileges

Special benefits for HDFC Bank account holders.

If you have had a Preferred Account or a Corporate Salary Account with HDFC

Bank for more than six months, you can get fast approvals on your loans with

minimal documentation.

* Age of Car at loan maturity should not cross 10 years subject to maximum loan tenure of 60 months.

**This would also vary with higher loan value

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Small car

Family car

or sheer luxury on wheels

Features & Benefits

Covers the widest range of cars and multi-utility vehicles in India.

Avail 100% finance on your favorite car.

Flexible repayment options, ranging from 12 to 84 months.

Borrow up to 3 times your annual salary (for salaried professionals) and 6

times your annual income (for self employed professionals).

Speedy processing - within 48 hours.

Repay with easy EMIs.

Attractive car loan plans - To Fastrack your loan, just choose the plan that

is right for you.

Attractive Interest rates

Hassle-free documentation.

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Customer Privileges

If you are an HDFC Bank account holder, we have special rates for you.

If you have had a Preferred Account or a Corporate Salary Account with

HDFC Bank for more than six months, you can get fast approvals on your

loans with minimal documentation.

Fee & Charges for New Car loans

Description of charges New Car Loans

Cheque bouncingcharges

Rs. 450

FC Charges

6 % of POS for preclosures within 1year from 1st EMI5% of POS for preclosures within 13-24months from 1st EMI3% of POS for preclosures post 24months from 1st EMINo foreclosure allowed within 6 monthsfrom date of availing the car loan

Stamp Duty At actual

Late Payment Penalty

2% per month

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Processing fees Up to 2.5Lakhs : Rs.2000/-

2.51 to 4Lakhs : Rs.3000/-> 4Lakhs :Rs. 3500/-

Agri /PSL Charges

Rs 2000 Cheque swapping

charges Rs 500/-

Loan cancellation / re-booking charges

Rs 1000/-

Bounce ChequeCharges

Rs 450/-

Statement Charges (per

statement)

Rs 500/-

Duplicate RepaymentSchedule charges

Rs 500/-

Legal, Repossession &Incidental charges

At actual

Duplicate no duecertificate / NOC

Rs 500/-

Transaction fees Rs 500/- per case

Overview

ICICI Bank is India's second-largest bank with total assets of Rs. 3,744.10 billion

(US$ 77 billion) at December 31, 2008 and profit after tax Rs. 30.14 billion for the

nine months ended December 31, 2008. The Bank has a network of 1,438 branches

and about 4,644 ATMs in India and presence in 18 countries. ICICI Bank offers a

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wide range of banking products and financial services to corporate and retail

customers through a variety of delivery channels and through its specialized

subsidiaries and affiliates in the areas of investment banking, life and non-life

insurance, venture capital and asset management. The Bank currently has

subsidiaries in the United Kingdom, Russia and Canada, branches in United States,

Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance

Centre and representative offices in United Arab Emirates, China, South Africa,

Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has established

branches in Belgium and Germany.

ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the

National Stock Exchange of India Limited and its American Depositary Receipts

(ADRs) are listed on the New York Stock Exchange (NYSE).

2002.ICICI was formed in 1955 at the initiative of the World Bank, the Government of

India and representatives of Indian industry. The principal objective was to create a

development financial institution for providing medium-term and long-term project

financing to Indian businesses. In the 1990s, ICICI transformed its business from a

development financial institution offering only project finance to a diversified financial

services group offering a wide variety of products and services, both directly and

through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI

ICICI Bank, with market capitalization of about Rs. 480.00 billion (US$ 10.8 billion),

ranked third amongst all the companies listed on the Indian stock exchanges in

June 2006. ICICI Bank's stock was listed on both BSE and NSE.

The bank is offering various services in:

Personal banking

NRI banking

Corporate banking

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ICICI Bank Rank - 4

2004-05 2005-06

No. of Offices 515 563

No. of Employees 18029 25479

Business per Employee(inRs. Lakhs) 880 905

Profit per Employee( in Rs.Lakhs) 11 10

Investments( in Rs. Crore) 50487 71547

Financial Highlights

Fiscal Year End: March

Revenue (2008): 15073.30 M

Revenue Growth (1 yr): 54.10%

Employees (2008): 84,134

Employee Growth (1 yr): 36.40%

COMPANY INFORMATION

BOARD OF DIRECTORS

Ms. Chanda Kochhar, Deputy Managing Director

Mr. Sridar Iyengar

Mr. Lakshmi N. Mittal

Mr. Narendra Murkumbi

Mr. Anupam Puri

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Mr. Vinod Rai

Mr. M.K. Sharma

Mr. P.M. Sinha

Prof. Marti G. Subramanian

Mr. T.S. Vijayan

Mr. V. Prem Watsa

CHAIRMAN

Narayanan vaghul

CFO AND TREASURER

N.S. Kannan

MAJOR COMPITITORS

HSBC Holding Standard Charted

State Bank Of India

HDFC Bank

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45

ICICI GROUP

ICICI Pru Life

Insurance

ICICI Infotech

ICICI Bank

ICICI Home

Finance

ICICI

Securities

Pru - ICICI

AMC

ICICI Lombard

ICICI Venture

Capital


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HOME LOANHome Loans are provided to individuals to own a residential property.

ICICI Bank offers easy home loans for

First Purchase in ready construction

Under construction property

Purchase in re-sale

Self construction - extension of existing living space

The following are the features of ICICI Bank Home Loans

Home loan amount can be chosen to suit specific needs.

One can avail of a loan up to 80% of Cost of Property.

Conveniently pay off the loan over a period of up to 25 years.

It can be availed at the Floating rate of Interest or at the fixed rate of Interest

or at the combination of both Fixed & Floating rates.

Faster repayment as principal repayment in on monthly rest.

Eligibility Norms forHome Loans

Home Loans can be availed by Resident Indian whether Salaried or Self-Employedand also by Non- Resident Indian who are Salaried. For resident Indians the

following are the eligibility norms:-

You must be at least 21 years of age when the loan is sanctioned.

The loan must terminate before or when you turn 65 years of age or before

retirement, whichever is earlier.

You must be employed or self-employed with a regular source of income.

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AUTO LOANS

ICICI AUTO LOANS

Eligibility Terms for YourCar Loan

With ICICI Bank Car Loans, you can avail of car loans as per your needs.Car Loans

ParticularsSalaried

IndividualSelf-

EmployedIndividual

PartnershipFirm

Private /Public Ltd

Co

Age Criteria The

applicant

should be

at least 21

years old

at time of

application,

and below

59 years of

age at time

of maturity

of the loan

Any

Proprietor,

partner,

professional

or director

above 21

years of

age but

below 64 at

the time of

the loan's

maturity

-

Limited

companies

should

have been

in

existence

for at least

2 years

Income Criteria Gross

annual

salary of atleast Rs.

1.5 Lakhs

per annum

Gross

annual

income of atleast Rs.

1.25 Lakhs

per annum

Firm shouldhave a

minimumPAT (profitafter tax) ofRs. 1.25Lakhs

Minimum

PAT (profit

after tax)of Rs. 1.25

Lakhs

47
http://www.icicibank.com/Pfsuser/loans/carloans/alhomepage.htmhttp://www.icicibank.com/Pfsuser/loans/carloans/alhomepage.htmhttp://www.icicibank.com/Pfsuser/loans/carloans/alhomepage.htm


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Documents required for

Income proof:

Salaried individuals Latest Salary slip or salary certificate. Form 16 of the previous

Financial Year or latest Income Tax Returns.

Self-Employed individuals:

Income Tax Returns of 2 previous financial years.

Partnership Firms, Societies & Companies :

Income Tax Returns of 2 previous financial years along with Profit & Loss Account

Statements and Balance Sheets of both years.

Documents supporting customer information :

Identity Proof, Signature Proof and Address Proofs as per ICICI Bank norms (Ourrepresentative will help you choose suitable documents).

Other documents:

Partnership Firms: Partnership deed and Letter signed by all partners authorizing

one partner to execute the required Car Loan.

Societies and Companies: Resolution by Board of Directors (or such managing

body) & Memorandum & Articles of Association (or Society/Trust deed).

Our representative will help you with the formats of documents and the information

required.

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Car Loans

Repayment tenure ranges from 1 year to 6 years for new car loans.

You may change the tenure of the loan before the loan is disbursed.

The interest rate & EMI would change accordingly.

The repayment due dates for the loan are 1 st and 15thof every month

and would depend on the date of disbursement. Payment due dates

cannot be changed.

You can make the Payments through post-dated cheques (PDCs)

Repayment option through Direct Debit Mandates is also available or

all ICICI Bank account holders.

Note: All charges are subject to Service Tax as applicable

Rs.1,350/- + Service Tax & Education Cess

49

Option of repaying through ECS is also available in select cities.

Payments through cash or credit cards are not accepted.

You may change the PDC's in case your Bank Account is changed.

However, we would require verification of signatures by new banker.

A nominal fee of Rs.500/- (Swap Charges) would be charged for

exchange of cheques.

A full pre-payment of the loan is accepted. Part pre-payment is not

allowed.

We charge Rs.200/-per bounced cheque.
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OVERVIEW

The State Bank of India was established in 1806. It has a branch network of over

9000 branches and holds 30 percent of the market share in banking with an

aggregate deposit base of about Rs 19,6821 crore. Today, it has a branch network

of over 9000 branches, an aggregate deposit base of nearly Rs196821 crore

(US$45,121mm) and a total balance sheet size of Rs.261504 crore (US59,950 mm).

Together with its 7 Associate Banks, SBI commands about 30% of the market share

in banking. State Bank of India (SBI) is the largest commercial bank in India in terms

of profits, assets, deposits, branches and employees. State Bank of India was

constituted through an act of Parliament in 1955. In October 1996, the bank

successfully floated the first GDR issue of any commercial bank in the country and

raised USD 369 million, including the green shoe option.

SBI is the only bank in India to be ranked among the top 100 banks in the world and

among the top 20 banks in Asia in the annual survey by The Banker. SBI has eight

business units, namely corporate banking; international banking and domestic

banking for concentrating on core areas; associate banks division for looking after

the working of these banks; credit division to monitor the overall credit; and three

other business units, namely finance, corporate development, and inspection for in-

house work.

The bank has a network of 66 offices/branches in 29 countries spanning all time

zones. The SBI`s international presence is supplemented by a group of overseas

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and NRI branches in India and correspondent links with over 522 leading banks of

the world. SBI`s offshore joint ventures and subsidiaries enhance its global stature.

Keeping in view the exponential growth achieved in self help group (SHG) financing

in the recent past and good repayments (over 90%) under the scheme, the bank has

decided to credit link 1,000,000 SHGs by the end of March 2008.

Financials

The bank reported a substantial rise in standalone net profit for the quarter ended

December 2008. During the quarter, the profit of the company rose 37.03% to Rs

24,784.20 million from Rs 18,086.40 million in the same quarter last year. Interest

earned for the quarter jumped 42.34% to Rs 180,303.40 million, while total income

for the quarter rose 38.35% to Rs 212,559.00 million, when compared with the prior

year period. It reported earnings of Rs 39.04 a share during the quarter, registering

13.59% growth over previous year period.

HOME LOAN

THE MOST PREFERRED HOME LOAN PROVIDER" voted in AWAAZ Consumer

Awards along with the MOST PREFERRED BANK AWARD in a survey conducted

by TV 18 in association with AC Nielsen-ORG Marg in 21 cities across India.

SBI HOME LOANS now offers Interest Rates concessions on GREEN HOMESin

accordance with SBI's commitment to Environment protection.

SBI Home Loans come to you on the solid foundation of trust and transparency builtin the tradition of State Bank of India. Best Practices followed in SBI mentioned

below will tell you why it makes sense to do business with State Bank of India.

Best practices followed in SBI

People dealing withyou

End to End service by Permanent employees of SBI who areaccountable to you.

Place SBI branch of your choicewill service your loan account. You

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can always meet our employees face to face.

PriceComplete transparency.Interest charged on the daily reducing balance.

Prepayment

charges

No penalty for prepayments made, out of bonafide savings or

windfall gains for which evidence is produced.Costs hidden in fineprint

No hidden costs

TransparencyComplete transparency. All the features of our product, includinginterest rates, are in the public domain.

Unique features:

1. Provision for on the spot "In principle" approval.

2. Loan sanctioned within 6 days of submission of required documents.

3. Option to avail Home Loan as a Term Loan or as an Overdraft facility to save

on interest and maximize gains (see SBI MaxGain in the following sections)

4.Option to club income of your spouse and children to compute eligible loan amount

5.Provision to club depreciation, expected rent accruals from property proposed to

compute eligible loan amount.

6. Provision to finance cost of furnishing and consumer durables as part of project

cost.

7. Repayment permitted up to 70 years of age

8.Free personal accident insurance cover up to Rs.40 Lac.

9. Optional Group Insurance from SBI Life at concessional premium (Upfront

premium financed as part of project cost)

10.Interest calculated on daily reducing balance basis, and starts from the date of

disbursement. Plus schemes which offer attractive packages with concessional

Interest rates to Govt.

11. Employees, Teachers, Employees in Public Sector Oil Companies.

12. Special scheme to grant loans to finance Earnest Money Deposits to be paid to

Urban Development Authority/ Housing Board, etc. in respect of allotment of sites/

house/ flat

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13.Option to avail loan at the place of employment or at the place of construction

Purpose

Purchase/ Construction of House/ Flat

Purchase of a plot of land for construction of House

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

Purchase of Furnishings and Consumer Durables as a part of the project cost.

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

Eligibility

Minimum age 18 years as on the date of sanction

Maximum age limit for a Home Loan borrower is fixed at 70 years, i.e. the age by

which the loan should be fully repaid. Availability of sufficient, regular and

continuous source of income for servicing the loan repayment.

Loan Amount

40 to 60 times of NMI, depending on repayment capacity as % of NMI as under

Net Annual Income EMI/NMI Ratio

Up to Rs.2 lacks 40%

Above Rs.2 lacks to Rs. 5 lacks 50%

Above Rs. 5 lacks 55%

To enhance loan eligibility you have option to add:

1. 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.

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2. Expected rent accruals (less taxes, cess, etc.) if the house/ flat being purchased

is proposed to be rented out.

3. Depreciation, subject to some conditions.

4. Regular income from all sources.

Margin

Purchase/ Construction of a new House/ Flat/ Plot of land:20% for loans up to Rs.30 Lacks,20% for loans above Rs.30 lacks and up to Rs.75 lacks.25% for loans above Rs.75 lacks.

(w.e.f. 01.01.2009)

INTEREST

Interest Rates w.e.f. 01.01.2009

a) Floating Rates linked to SBARSBAR w.e.f. 01.01.2009 = 12.25 % p.a.Loans (i.e. Sanctioned limits) up to Rs.30 Lacks

Loan amount Loan Tenure -> Up to 5Yrs

Above 5Yrs & upto 15 Yrs

Above 15Yrs & up to25 Yrs

Loans up toRs.30 lacks fornew loans

sanctioned on orafter 01.01.2009

Linkage with SBAR in theloan document

2.25%belowSBAR,

2.00 belowSBAR

1.75%belowSBAR

Special product leveldiscount which may bewithdrawn/revised solelyat the discretion of theBank.

0.25% 0.25% 0.25%

EffectiveRate

9.75%p.a.

10.00%p.a.

10.25% p.a.

Loans (i.e. Sanctioned limits) above Rs.30 Lacks and up to Rs.75 Lacks

LoanTenure ->

Up to 5 Yrs Above 5 Yrs& up to 15

Yrs

Above 15 Yrs& up to 25

YrsAbove Rs.30 lacks Linkage with 2.00% below 1.75% below 1.50% below

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and up to Rs.75Lacks w.e.f.01.01.2009

SBAR SBAR SBAR SBAR

Effectiverate

10.25%p.a. 10.50% p.a. 10.75% p.a.

Loans (i.e. Sanctioned limits) above Rs.75 LakhsAbove Rs.75 Lakhsw.e.f. 01.01.2009

Linkage withSBAR

2.00% belowSBAR

1.75% belowSBAR

1.25% belowSBAR

Effectiverate

10.25% p.a. 10.50% p.a. 11.00% p.a.

b) Fixed rates - Re-payment Up to 10 Years(w.e.f. 01.01.2009):

Fixed rates (subject to force majeure clause and interest rate reset at the end

of every two years on the basis of fixed interest rates prevailing at that time)Up to Rs. 30 LakhsAbove Rs. 30 Lakhs

11.25% p.a.12.25% p.a.

c)Loans for deposit of earnest money for allotment of a plot / house / flat

(Floating rates only)- W.E.F. 01.01.2009 - 1% above SBAR, Min. 13.25% p.a.

Loan amount Margin

Up to Rs.30 Lakhs 20%Above Rs.30 Lakhs and up to Rs.75 Lac 20%Above Rs.75 Lac 25%

Processing Fee

0.50% of Loan amount with a cap of Rs.10,000/-(including Service Tax)

Pre-closure Penalty

No penalty if the loan is preclosed from own savings/windfall gains for which

documentary evidence is produced by the customer. In case, such proof is not

produced by the borrow