64164736 a summer project report

8/13/2019 64164736 a Summer Project Report

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A SUMMER PROJECT REPORT

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Acknowledgement

The completion of any task depends upon the co-operation, coordination and

consolidated efforts of several resources of knowledge, energy, and time and above

all the proper guidance of the experienced bankers. Therefore I approached this

matter of Acknowledgement through these lines trying my best to give full credit

where it deserves.

I wish to express my gratitude to our institute, which has provided me the

opportunity to fulfil the most cherished desire to reach my goal. I am thankful to all

those who generously helped me to compile this project with their knowledge and

expertise. irstly I owe a great debt to, !."."#$%%& % '("I)*""+A)A*+*)T for obliging the project, thus giving me chance to broaden my

horion and providing me all necessary resources in college to assist me in the

project.

Also I owe a great debt toMr.A.K.SHAH, #hief +anager of & 'ank of 'aroda

who has been nominated as mentor for my project and also thankful to all staffs of

& as well as $ead %ffice of 'ank of 'aroda for providing me the necessary

guidelines regarding the project, for helping me to track the first hand information

and supporting me in the carrying out the project successfully.

As well as reposing a belief in me, this was essential for the completion of this

project.

I express my sincere thanks to Mr.PRIYA KUMAR, "enior +anager /$+0 at

egional %ffice 'ank of 'aroda Ahmedabad for giving me the opportunity to choose

this topic and the project. I also would like to thank Mr.ANJAY KUMAR+anager at

& Ahmedabad for the support and providing necessary guidance for completion

of this project and allowing me the access to the necessary resources to gather

primary information.

I would also like to thank all the persons for their contribution for shaping up of this

project, who helped me directly or indirectly in completing this project.

&.


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PrefaceThe project is prepared during the vocational training under taken at & on partial

fulfillment of the course of 1master of business administration2

$ence, this report is designed with the objective to gain practical knowledge.According to old saying there is a huge difference between 1To say and to do.

To take theorical knowledge is important but it becomes more valuable when weapply it in the practice.

"o, there is a huge difference between theory 3 practical. or filling this re4uirementtraining in the & is very practical exposure for me.

This training provides golden opportunity for all students, especially when themanagement does not have perfect knowledge 3 understanding of working in theorganiation.

$ence, this report is designed with the objective to gain practical knowledge.


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Table of content


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OBJETI!E AN" SOPE O# THE PROJET

OBJETI!E$

The main objective of the project is to know the different loan proposals at &and how they are being processed. The main objectives of this project are as under5

Identify the re4uested terms of loan, it include loan length, limit of the loan,interest rate, etc.

To know the procedure of the loan from sales lead to the disbursement. To know what are the necessary documents for the loan.

Sco%e$

etail segment is attracting attention to all banks, financial institution, foreignbank etc. now days there is a boom in retail banking sector. "o, there is a widescope of retail segment.

)ow days the population is increasing day by day. It causes to increases thenumber of housing loan.

There is a golden opportunity for students in the abroad. The easy 3 openadmission system is attracting many of the students of India. "o, the studentswho want to go there, they can avail the education loan for their bright future3 study.

6ith the increasing of globaliation 3technology, the living standard of peoplehas also improved. "o, it will result to increase other loans like housing loan,car loan, traders7 loan, professional loan.


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Ind&an 'an(&n) &nd*stry


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lance on Indian banking industry

Indian bank today is witnessing drastic change. The liberaliation of financialsector 3 business sector reforms have exposed the Indian banks to a new economic

environment that is characteried by increased competition 3 new regulatory

re4uirement. As a result there is a transformation in every sphere of activities of the

banks in India.

The last decade has seen many positive developments in the Indian banking

sector. The 8olicy makers, which comprise the eserve 'ank of India /'I0,

+inistry of inance and related government and financial sector regulatory entities,

have made several notable efforts to improve regulation in the sector. The sector

now compares favorably with banking sectors in the region on metrics like growth,

profitability and non-performing assets /)8As0. A few banks have established an

outstanding track record of innovation, growth and value creation. This is reflected in

their market valuation. And 4uickly to build an enabling, rather than a limiting,

banking sector in India.

Indian banks have compared favorably on growth, asset 4uality and profitability

with other regional banks over the last few years. The banking index has grown at a

compounded annual rate of over 9: per cent since April ;


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household income, consumers will increasingly demand enhanced institutional

capabilities and service levels from banks.

%)* % T$** "#*)AI%" 6I&&8&A? %(T '? ;8 growth and employment and large

sections of the population gain access to 4uality banking products.

' E/o0*t&on5

8olicy makers adopt a pro-market stance but are cautious in liberaliing the

industry. As a result of this, some constraints still exist. 8rocesses to create highly

efficient organiations have been initiated but most banks are still not best-in-class

operators. Thus, while the sector emerges as an important driver of the economy

and wealth in ;


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c Sta)nat&on$

In this scenario, policy makers intervene to set restrictive conditions and

management is unable to execute the changes needed to enhance returns to

shareholders and provide 4uality products and services to customers. As a result,growth and productivity levels are low and the banking sector is unable to support a

fast-growing economy. This scenario sees limited consolidation in the sector and

most banks remain sub-scale.

The extent to which Indian policy makers and bank managements develop and

execute such clear and complementary agenda to tackle emerging discontinuities

will lay the foundations for a high-performing sector in ;


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H&story of Ban( of Baroda

A saga of 'ision an enterprise

It has been a long and eventful journey of almost a century across ;9

countries. "tarting in :B


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1O3O 'ank7s new logo is a uni4ue representation of a universal symbol. It comprises

dual DB4letterforms that hold the rays of the rising sun .'ank call this the 'aroda"un. The sun is an excellent representation of what bank stands for. It is the single

most powerful source of light and energy E its far reaching rays dispel darkness to

illuminate everything they touch. At 'ank of 'aroda, bank seeks to be the source

that will help all our stakeholders realise their goals. To our customers, we seek to

be a one-stop, reliable partner who will help them address different financial needs.

To our employees, bank offer rewarding careers and to our investors and business

partners, maximum return on their investment on the single-colour, compelling

vermillion palette has been carefully chosen, for its distinctiveness as it stands for

hope and energy

'ank also recognies that our bank is characteried by diversity. The network of

branches spans geographical and cultural boundaries and rural-urban divides.

#ustomers come from a wide spectrum of industries and backgrounds. The 'aroda

"un is a fitting face for brand because it is a universal symbol of dynamism and

optimism E it is meaningful for many audiences and easily decoded by all.

'ank7s new corporate brand identity is much more than a cosmetic change. It is a

signal that we recognie and are prepared for new business paradigms in a

globalised world. At the same time, bank will always stay in touch with its heritageand enduring relationships on which bank is founded. 'y adopting a symbol as

simple and powerful as the 'aroda "un, bank hope to communicate both.

HERITA3E It all started with a visionary +aharajaFs uncanny foresight into the future of tradeand enterprising in his country. %n ;


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Jo*rney fro- 6789 to :887$ ()*+,()-+

:B


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;


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Introd*ct&on of Reta&0 1oan #actory

T"e Bank of Baroahas launched its new retail loan delivery modelcalled the 1urban retail loan factory2

The model has been designed under 'ank7s project parivartan, which aims to

reposition the bank as a sales 3 service organiation offering a complete range

of life cycle 3 need of each segment of customers, according to a press release.

The idea behind the model was to speedup the processing of retail loans inpresent competition environment.

& is having twin outfits comprising a sales team 3 a centralied processing

cell /#8#0 manned by the bank employees.

$ere, the sales executive will visit potential clients, and helps the clients to fill up

the loan application form, if the file is viable 3 submit the file to & for further

procedure while other functionaries work to sanction the loan.

The central processing cell shall have simple processes powered by the use of

technology to ensure sanction of loan within the set timelines.

The retail loan delivery outlet would offer loans within six working days. H6e

believe in providing credit fast and without hassles,H said A! !handelwal, the

then #hairman and +anaging >irector.

HIn this innovative retail loan delivery model, the potential clients are reached bysales executives. 6hile a team of dedicated employees works to sanction the

loanH.

SME SETOR$ 'ob has rolled out small 3 medium enterprise loan factory across three

locations in +umbai.

The bank7s "+* segment has been growing at the rate of ;9K this year.

#urrently bank has about :9 "+* loan factories.


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Or)an&at&on str*ct*re of Reta&0 0oan factory


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%rganiation profile5

Na-e $ Ur'an reta&0 0oan factory

1ocat&on $ :st floor, Above '%' Ambawadi branch8anchwati marg,Ahmedabad-C


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Awareness of & 'ranches


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etail lending products

'ank offers several retail lending products to its customers. $owever, &processes only these products which are secured by mortgage of property.

:0 +ortgage loan

;0 %ther loan

+ortgage loan include the security by the means of immovable property and include

here that is &

6hile other loan includes the security by the means of movable property onlyR

+ortgage loan5

:0 'aroda housing loan

'aroda home loan/resident Indian0

'aroda home loan to )IsO8I%s

'aroda home improvement loan 'aroda advance against property

'aroda advance against property to )I

;0'aroda education loan

'aroda gyan

'aroda vidhya

'aroda scholar

;0 'aroda Traders loan/&oanOoverdraftOfresh sanctionOenewal0

0 'aroda loan to doctors

/resh sanctionOenewal0

0 'aroda loan to professionals

/resh sanctionOenewal0

90 'aroda advance against property


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$owever, & is empowered to process any type of retail loan. &ike

%ther loan5

'aroda personal loan

'aroda car loan

'aroda two-wheeler loan

'aroda loan to defiance pensioners

'aroda loan to pensioners

'aroda consumer durables

'aroda loan for laptops 3 personal computer

'aroda vaibhav lakshmi


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8rocedure

"teps to be followed for processing loan

&ead generationOinward of file

ollow up by sales executive

#ollect the details 3 re4uired papers

It include,

Type of product

e4uirement amount

8apers

8reparation of calculation sheet by sales executive

"ubmission of file to processing department with all formalities

orwarding memo

#alculation sheet

!?# norms /!now your customers0

#I'I& /#%)"(+* I)%+ATI%) '(*A( I)>IA &I+IT*>0

#hecking of #I'I&

"crutiny of file

Allotment of report which include,

TO# report /title clearance report0

MOr report /valuation report0

8re inspection by bank officers

eed the file in the &A8" /lending automation processing system0

#ollectO follow up of tOc report, vOr report ile ready for the sanction

>ocumentation

"eparation of papers for record

>ispatch to concern branch

After that the next procedure is to be continued by branch. At branch level steps are

done vi.

ollow the appraisal cum sanction memo #ontact to the borrower for execution of and completion of other formalities.


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*xecution of documents

/ranking, sign documents of applicant7s, guarantor, and co-applicant0

To issue original pay order

To give nomination letter

#reation of mortgage as per title report To register the mortgage deed as per state ovt notification.


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61ead )enerat&on>&n2ard of f&0e

T+e 0ead &s to 'e )enerated 'y t+ese 2ays.I. The lead is to be generated by different branch@ means if the in4uiry of loan is

related to immovable mortgage then branch contact to & is called generate

lead.

II. >irectly party can contact to &.

III. 8arty directly can fill online application through "+", web site, e-mail.

IM. &ead is also generated through references like old customers, relatives of

staff, bank employees etc.

: #o00o2 *% 'y sa0es e


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Pre'aration of calculation sheet

or

HS*+,+" -*/ncome a''licant co1a'' co1a''

irst year 22222222222222222

Secon% year 22222222222222222

hir% year 22222222222222222

#erage annual income (for business 'erson) 22222222222222222

ross monthly income (for salarie% 'ersons) 22222222222222222

. Maimum eligibility as 'er income 5s 22222222222222222

a) "' to 5S &00006 3 times of monthly income

b) More than 5S &00008 u' to 9000006 4: times of monthly income.

c) More than 5S.9lac6 ;4 times of monthly income

-ess 40ear of com'letion 22222222222222222

=onstruction ?ill be com'lete% on 22222222222222222


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Less,#argins

Monthly income Pur'ose Margin

"' to 5S.&0000 Purchase of 'lot &0ata

sharing is based on the 8rinciple of eciprocity, which means that only

+embers who have submitted all their credit data, may access #redit

Information eports from #I'I&. The relationship between #I'I& and its

+embers is that of close interdependence.


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or accessing #I'Il data bank has to enter one of these documents number, which

is uni4ue itself vi.

PAN card n*-'er

!oters &d n*-'er

Pass%ort n*-'er

"r&/&n) 0&cense

In add&t&on to a'o/e, t+e na-e of %arty, date of '&rt+,

address 2&t+ %&n code, a-t %*r%ose of 0oan are a0so

-*st.

6e can get the all the credit information of the customer whether the

customer have availed the loan, whether they have in4uired for any loan. "o

this facility is very useful for the bank to know the credit status of borrower orto help in the decision whether heOshe is suitable for the loan or not.

If there is an overdue in the #I'I& report which appears to be genuine then

bank may take that report positive and may sanctioned the loan. 'ut chronic

defaulters are not entertains all.

After filling all information, a report with control number of B digit gets

generated which entails all the credit facilities enjoyed by party or any en4uiry

made therefore. 'ut bank7s name or financial institution name do not appear

in then.

If the report is satisfactory, then loan application is entertained. If there is any

write offOdefaultersOoverdue or any information concealed by party then bank

may ask for details thereof. If the submitted information is satisfactory then

loan may be sanctioned otherwise bank is at discretion not to consider credit

facilities.


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C SRUTINY O# THE #I1E$

After the checking of #I'I& the next step is to be scrutiny of file. $erecarefully all the informationOdocuments are checked by officer. They mainly

check these documents,

&oan application is duly completed /only for applicant0

8roof of identification5 id cardOpassportOdriving licenseO8A) card

8roof of residence5 id cardOpassportOelectricity billOtelephone bill

8roof of business address, in case of non salaried borrowers

"tatement of bank account for last six months /personal0

Investment proofs e.g. copies of )"#, !M8 bonds, &I#, # book, demat

aOc, property tax bill

&oan account statement

D A00ot-ent of t+e re%ort$

6 T&t0e c0earance re%ort$

Title clearance report is must checked by bank7s empanelled advocates.

$ere advocate verifying the title clearance 3 searching for last < years in the

respective courts regard.

$owever if government authority allocates the property then search will be

done only for remaining period of < year.


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If the property is allocated by govt authority then search is done only after the

allotment.

'ank has designed specific format for obtaining legal opinion from bank7s

empanelled advocates. This format describes Ocovers all the points like,


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)ame of account 3 facility

>escription 3 area of property

)ame of the mortgagor 3his status in the account

6hether the mortgagor has sufficient title 3 capacity to

contract for creation of mortgage.

)ature of mortgagor7s right or title in the property.

6hether mortgagor is in exclusive possession of

property proposed to be mortgaged

>ocuments studied

#hain of title

6hether the title is clear 3 property is free from any

encumbrance

Title to property is clear, unambiguous, marketable 3property is saleable

6hether there is any restriction for creation of e4uitable

mortgage.

)o objection is re4uired

&ist of the title deeds to be deposited to create mortgage

by deposit of title deeds in favour of bank by mortgagor.

At the same time court fee receipt is must

#harge5 minimum :9


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Maluation report to be obtained from approved valuer of the bank.

Maluation report involves the current price of proposed property. It include

current market price of property.

#harge$:


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D Ins%ect&on 'y off&cer$

There are two types of inspection carried out in all types of loans.

:0 8re sanction inspection

;0 8ost sanction inspection

8re sanction inspection is considered a part of processing.

)o charge is to be levied therefore

P*r%ose of %resanct&on &ns%ect&on$

+ost importally, it is treated as vital part of

processing.

To ensure that information provided by the applicant

is correct 3satisfactory

It includes inspection of residence area, place of

employment, place of proposed property

It is treated as the basis for construction of any loan

enerally some officers are designated for carry out

this task

%n the basis of satisfactory report there from loans

are being considered

This pre sanction inspection is carried out on

expectedly. /without giving information to borrower0

8ost inspection is done through branch.

The purpose behind post inspection is to ensure that

the proposed property is owned by party or not.

#&0e feed&n)$


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$ere, files are sent for entry of information into &A8" /&end&n)

a*to-at&on %rocess&n) syste-. This software isa boon for 'ank for retail

loan products and this is internet-based software, maintained at +umbai. If there is

any change of any type happens, this may be automatically affected in all files.

The benefit of the software is that it covers all the information relating to applicant,

co-applicant 3 guarantor.

#ustomer profile5 it include demographic, income expenses 3employments details

6hether they have &I# policy then the information of that, financial information of

the customer, their liabilities 3 assets.

There are many advantages of &A8" like5

*asy accessible /anywhere, anytime0

&ess time consuming

>ata storage facility permanently

Automatically adjust the interest, amount 3 also eligible amount after

entering of all the regarding data which helps the user to ensure that

sanction able loan amount is in line with 'ank7s guidelines.

F Ne


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#ost of property

uarantor information

#I'I& >ATA

>escription of the property

ecommended by sales executive

)et worth 3 risk rating

Title clearance report

Maluation report

ield Inspection eport

It is worth mentioning that cred&t rat&n) is strictly checked to ensure that 4uality of

loan file and if the credit rating is within 'ank7s permissible norms, then loan amount

will be sanctioned otherwise on the basis of poor crediting rating loan file may be

rejected or returned. #redit rating is done on the #I"I& model.

$ere in 'anking, the credit rating is done for all types of loan but not below the loan

amount of s ;.


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8roof of income of borrower

$ousing loan purpose category

&oan to value ratio

)et worth to loan ratio

)et annual income of the borrower

ixed obligations to income atio

uarantor7s )et worth to loan atio


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Baroda Housing

Loan


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Reta&0 1end&n) Prod*cts of R1#

BARO"A HOUSIN3 1OAN$

etail continues to be the thrust area for credit growth in banking sector andout of that home loan plays a vital role in retail credit growth. 'aroda home loan is a

major product under etail &oan actory.

It contributes more than 9K of the total retail loans.

6 P*r%ose$

#onstruction of new dwelling unit and purchasing of new residential

houseOflat.

%ld dwelling unit /not more than ;9 years old0

8urchase of plot of land, subject to the condition that a house will be

constructed thereon within years or up to the period allowed by

development authority.

epayment of loan already availed from any other bankO$# /housing

financial corporation0, provided documentary evidences are produced

or housesOflats constructedOpurchased /not prior to ; months0 from own

sources.

&oan for purchaseOconstruction of second house can be considered.

: E0&)&'&0&ty$

All individuals singly or jointly

8rincipal applicant must be employed minimum for years

M&n&-*- a)e=%r&nc&%0e 'orro2er=:6 yrs and co='orro2er=69 yrs ;salariedperson-repayment period shouldn7t be beyond retirement age and for others-

J9 years Ho*s&n) 0oan to HU# of 'e cons&dered.

? 1&-&t$

The maximum limit is s.:


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C Inco-e cr&ter&a$

So*rce Inco-e r&ter&a

"alaried

(p to s.;


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Re%ay-ent$

+aximum ;9 years /including moratorium period0

Morator&*- %er&od$

8eriod in which the applicant is not re4uired to pay principal. $owever, hemay or may not pay interest during this period.

Ma


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Home Loan to NRIs


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BARO"A HOME 1OAN TO NRIs>PIOs$

6 P*r%ose$a. 8urchase of new residential houseOflat.

b. #onstruction of new dwelling unit.

c. 8urchase of old dwelling unit /not more than :9 years old0.

d. or repairOrenovationOextension of existing house.

e. 8urchase of plot of land, subject to the condition that a house will be

constructed thereon within-; years from the date of purchase of plot.

f. epayment of the loan already availed from any other bankOhousing

finance company under their scheme to finance )IsO8I%s for

housing.

T+e 0oan s+a00 'e cons&dered for res&dent&a0 %ro%ert&es s&t*ated &n Ind&a

: Area of o%erat&on$The branches may consider housing loan proposals provided it is in the

cityOtown of5

&ocation of new flatOhouse to be purchased Oconstructed or

8lace of residence of the applicant in India

? E0&)&'&0&ty$)on-resident Indians /)Is0 holding Indian passport or persons of Indian origin

/8I%s0 holding foreign passport, singly or jointly.

or this purpose person of Indian origin means a citien of any country other

than 'angladeshOsri lanka OAfganistanOchinaOiranOnepal 3'hutan if-

I. $e at any time held Indian passport or

II. $e or either of his parents was a citien of India by virtue of

the constitution of India of the citienship Act :B99,or

III. The person is a spouse of an Indian citien or a person

referred to in sub clause /a0 or /b0 above.

:. 8rincipal applicant should having a regular job abroad ina reputed IndianOforeign company, organiation orgovernment department holding a valid job contractOworkpermit for minimum past ; years. %r

;. +ust be employedOself-employed or having a businessunit and staying abroad at least for ; years

M*st +a/e -&n&-*- )ross ann*a0 &nco-e e*&/a0ent to Rs.D 1acs %erann*-.


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C A)e$

+inimum age must be ;: years@ minimum age of co- borrower can be :Cyears.

Age of the borrower plus repayment period should not be beyond retirementage or J9 years whichever is earlier.

D Sec*r&ty$

*4uitableOlegal mortgage of property constructedOpurchased or property to beenovated Orepaired.

8ersonnel guarantee of spouseOfamily member residing in India shall beobtained. If s%o*se &s a0so res&d&n) a'road %ersona0 )*arantee ofone>t2o %ersons res&dent &n Ind&a +a/&n) ade*ate 2ort+.

M&n&-*- a-o*nt$

or purchase of newOold houseOflat or construction of houseOflat5 s.9O-lacs

or repairsOrenovationsOextensions5 s.:O-lac.

F Ma


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BARO"A AAA;A""ITIONA1 ASSURE" A"!ANE$

6 P*r%ose$ Any purpose excluding speculative or illegal purpose.

: E0&)&'&0&ty$

All existing housing loan customers, whose conduct of account is

good and is classified as standard.

There is no adverse featuresOauditorsOinspecting officer7s remarks

in exiting housing loan AO#s.

Age of borrower Ntenure of AAA loan should not exceed J9 years.

&oan can be availed maximum 9 times during the tenure of housingloan provided previous AAA is settled at least one month before.

? 1&-&t -ar)&n$

minimum-s.;9


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BARO"A HOME IMPRO!EMENT 1OAN$

6 P*r%ose$

or repairOrenovationOimprovementOextension of existing house. 8urchase of furnitureOfixtureOfurnishingOother gadgets. /On0y to

t+ose 'orro2ers 2+o o'ta&ns 0oans for re%a&rs>reno/at&on

*nder t+e sc+e-es.

: E0&)&'&0&ty5

+inimum age-;: years.

+aximum age of the borrower Nrepayment period should not be

beyond retirement for salaried person and J9 years in case of

others. HU# staff -e-'ers are not e0&)&'0e.

? 1&-&t5

(pper ceiling limit s.:


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F "oc*-entat&on c+ar)es5

1oan a-o*nt +ar)es;s.t.to.'e &nc0*ded(p to s.;9


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EDUCATION


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BARO"A E"UATION 1OAN$

'ank of 'aroda has three types of education loan.a Baroda /&d+ya' Baroda )yanc Baroda sc+o0ar

A Baroda /&d+ya$: Tar)et )ro*%$parents of students perusing school education fromnursery to standard II

: E0&)&'&0&ty$

"hould be an Indian national residing in India.

"tudent should have secured admission to a recognied

schoolOhigh schoolOjr.college for any of the following courses5

"tage :5 nursery to M th std.

"tage ;5MI th to MIII th std

"tage 5 I th to II std

)o minimum 4ualifying marks

1oan to 'e )ranted &n t+e na-e of fat+er>-ot+er of

t+e st*dent

? o/era)e of e


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F Rate of &nterest5 :.;9K below '8& 6 concess&on &n t+e rate of &nterest to 0oans sanct&oned

for t+e 'enef&t of )&r0 st*dents.


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B Baroda )yan$

(0 Target gro%p1 studentpursuing graduation, post graduation, professional 3

other #ourses in India

: Mar)&n$ (p to s. lacs 5)I&

Above s. lacs5 9K "tudents pursuing graduation, post

graduation, professional 3 other courses in India.

? o*rses e0&)&'0e$

raduationOpost graduationOprofessional 3 other courses like

I#6A,#A,#A etc. as well as courses conducted by

II+,IIT,II"#,&I,)IT etc.

*vening courses of approved institutes.

%ther courses leading to diplomaOdegree etc.conducted by

collegesOuniversities approved by (#O%MT etc.

C St*dent e0&)&'&0&ty$

"hould be resident Indian.

"ecured admission to professionalOtechnical courses in India

t+ro*)+ entrance test>-er&t 'ased se0ect&on %rocess.

D *ant*- of f&nance$

+aximum s.:< lacs

"cholarshipOassistant ship if any received to be included in the margin

Re%ay-ent -orator&*- %er&od$

#ourse periodN: year or J months after getting job,

whichever is earlier.

The loan is repayable in 9-= years after the above

period.


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Baroda scholar


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Baroda sc+o0ar$

6 P*r%ose$

'ank of 'aroda presents financial assistance to students going abroad

for raduationOpost graduationOprofessionalOtechnical courses offered by

reputed universities abroad.

: 1oan a-o*nt$

+aximum5 s.;< lacs

+inimum5 s.=.9< lacs /mortgage base0

? Mar)&n a-o*nt$ 6D

C Sec*r&ty5 mortgage of property up to loan amount

D St*dent e0&)&'&0&ty$

"hould be an Indian national

"ecured admission to professionalOtechnical courses abroad

through entrance testO+erit based selection process.

o/era)e of e


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7 Ot+er 'enef&t$

#oncession of :K in rate of interest if interest is served regularly in

moratorium period.

#oncession of :K in rate of interest in case of girl student.

&oan covers all fees 3 expenses.

"imple interest is charged at monthly rests during moratorium

period.

&ow processing charges of :K will be charged if applicant has not

availed the disbursement of loan.

If the interest amount of the loan, party is paying before moratorium

period then :K discount.

68 Rate of Interest$ 6:


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Baroda Traders Loan


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BARO"A TRA"ERS 1OAN5

6 P*r%ose$ 6orking capital re4uirement >evelopment of shop /e.g. purchase of e4uipment, furniture etc. and not

for purchase of shop0 )eed based re4uirement of funds for development of shop by way of

loan up to a maximum of ;9K of the limit sanctioned for the workingcapital

)on fund based facilities /i.e. bank guarantee and letter of credit0

: E0&)&'&0&ty$

All persons engaged in trade of any commodityOgoods not prohibited bylaw or opposed to public interest.

Individual, proprietorship, partnership concerns, firms, private ltd andregd.co-op societies engaged in trade of any commodityOgoodsre4uired by the community and trading in them is not prohibited by lawor proposed to public interest.

The business units should have been established in the line ofbusiness for a minimum period of ; years.

Trading unit established by our existing customer with satisfactorydealings of their close relatives, even if these are established for lessthan ; years.

Trading units of non-customers having less than ; years establishment,

with the prior approval of regional authority.

? 1&-&t -ar)&n$ +inimum5s ;9


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C Process&n) ser/&ce c+ar)es und based5 min-Q


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F "oc*-entat&on5

d.p.note letter of continuing security hypothecation of goods/where ever applicable0 draft undertaking cum declarations undertaking to deal exclusively with us e4uitable mortgage of property +ortgage should be registered with sub registrar of assurance. The under taking from the borrower declaring that he does not owe

any overdue statutory dues like sale tax, income taxOand haveobtainedOrenewal license from concerned authorities re4uired for

trading in the merchandise goods every year 8roperty to be mortgaged must be in the name of either5

'orrower 8roprietor, partner, director #lose relative of borrower who should stand as

guarantor Third party property provided credit facility is for s.: lac

and above

9 Ot+er %o&nt$ If yearly sales of customer are above < lac then return should be

audited compulsorily. egistration certificate is must if MAT is to be charged and also

re4uired challan. &ast ; years of income tax return or a*d&ted re%ort If the account of customer is not in the '%' then credit report of

present bankers is must If company then constitution is re4uired,

:0 +emorandum;0 Article of association

Interest rate is to be depends on current rate of '8&


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BARO"A MORT3A3E 1OAN$

'aroda mortgage loan is divided in to two sub products. i.e.

:0 %>A8 /overdraft against the property0

;0 &oan against property

The mainly difference between these loan is,

In %>A8 the interest will be served on monthly basis on the

amount withdrawn and .

In +ortgage loan, the *+I will start from the next month from

the loan disbursement, there is provision for months

moratorium period

6 P*r%ose$

or all legitimate purpose except for speculations.

: Ty%e of fac&0&ty$

O/erdraft>ter- 0oan

? E0&)&'&0&ty$ "alaried employeesOprofessionals, self employed 3 others, who

are income tax assessed for last years.

Age5minimum-;: years

+aximum-J< years

/T+e c*sto-er4s a)e o/erdraft>0oan ten*re

s+o*0d not e


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"alaried class5 J times of net monthly income.

%ther individuals5 .9 times of net average /last three years0 annual income.

i. Income of all the joint owners of the property who are co-

borrowers can be clubbed.ii. #o-borrower5

The facility can be considered to an earning memberOmembers of a

family against the property standing in the name of any

memberOmembers of the family.

+embers of the family comprises of spouse, father, mother, sonOs,

brotherOs 3 brothers7 wives and daughterOs /subject to the condition

that they are living in the family jointly, this is to be ascertained

through interview of applicant0

Net -ont+0y &nco-e$

ross salary less professional tax, income tax and 8.

Net ann*a0 &nco-e$

Income net of professional tax and depreciation, if any.

Re%ay-ent ca%ac&ty$ Total deductions should not exceed J


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66 Persona0 )*arantee$ (p to s.:< lacs5 guarantee may not be insisted upon.

%ver s.:< lacs5 third party guarantee of an individual having ade4uate worth

must be obtained.

6: Re%ay-ent %er&od$ &oan5

+aximum C months in e4ual monthly installments /*+Is0

+aximum -orator&*- %er&od=? -ont+s

O/erdraft

i. The facility may be continued without any condition of reduction till the

maximum age specified ,if desired by the borrower, subject to5 Annual review 3 satisfactory conduct of the amount

+inimum annual turnover in the account is at least ;9K of the limit.

ii. 6herever it is observed at the time of review that stipulation of annual

turnover is not complied with, the limit should be reduced

annually as under5

+aximum period of overdraft5 :< years.

eduction in operative limit proportionately by the end of each year,synchroniing with review of the account.

A0ternat&/e0y 'ranc+ -ay e


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The bank shall have right to progressively reduce the limit of

overdraft sanctioned hereby every yearOmonth from time to time

during the avalment of the %> limit.

$owever, it is agreed and understood that such commitment for

progressive reduction in the overdraft limit is and will be withoutprejudice to the rights of the bank to call for accelerate and

demand repayment of entire outstanding amount in overdraft limit

at any time and from time to time.

Interest to 'e reco/ered as 2+en a%%0&ed &n t+e acco*nt


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PRE!ENTI!E !I3I1ANE 3UI"E1INES$

Ban( &ss*es %re/ent&/e /&)&0ance )*&de0&nes &n reta&0 0oans se)-ent fro-t&-e to t&-e so t+at fra*ds for)ery do not +a%%en. Here so-e &nc&dences

2+ere&n t+e 'orro2ers +a/e fra*d*0ent0y tr&ed to a/a&0 0oans fro- t+e 'an( 'y

%rod*c&n) fa0se &nfor-at&on, fa(e and for)ed doc*-ents .

akeOforgedOerox copy of the title deeds.

!?# norms not strictly compiled with and borrowers were not residing at the

places as informed to the bank.

alse copies of IT returns were submitted. (pon verifying copies of income

tax returns for last three years from original it was revealed that all the returnswere filed on one date whereas different dates appearing on erox copies

submitted to bank were of respective years.

Applicant for availing home loan submitted in fake construction agreement.

There was no builder in existence.

abricated statement of account was submitted in few cases, which was

revealed after cross checking with other bank7s branches.

In many cases #I'I& data interface gave the information about other bank

borrowings in respect of applicants who intentionally did not disclose the

information at the time of applying for loan from our bank.

8re sanction inspection revealed that a person who has applied for home

loan does not have any business but has managed to fix signboard at the

shop, which belongs to someone else.

Income of spouse was considered based on false documents though shewas not engaged in gainful employment.

In some cases properties were overvalued substantially for getting maximum

loan.

#onstruction was not as per approved plan and of poor 4uality 3 low value.


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A fraud is one area of concern where there is total loss in most of the cases.

$ere some )*&de0&nesso, that frauds can be averted.

!?# norms to be strictly compiled with and identity of the

borrowersOguarantors to be verified by making a visit to their residencesandOor work places. The borrowers are re4uired to visit the branch personally

to execute all loan documents.

Authenticity of salary certificates and income tax returns submitted by the

borrowers to be independently verified from the employers and income tax

authorities through charted accountantsOagencies empanelled by our bank for

the purpose.

Income assessment is very important tool to decide the loan amount, as well

as permissible *+I.several frauds have occurred due to inflated income

assessed by including various other sources of income which are not of

stable nature like interest income, rental income, and agricultural income

etc.due care has to be taken to verify the genuineness of the source 3 kept

on record.

"trict watch to be kept on repayment of installments and follow up is done

promptly.

'ranches should be more cautions in case of higher number of cases are

coming through one particular builder.

*4uitable mortgage can also be registered with sub registrar office on

payment of re4uired fee.

acilities must be released only after compliance of all the terms of sanction

and vetting of documents.

8re-sanction inspection including visit to the place of residence and work aswell as property to be purchased, must be carried out independently,

preferably without giving prior information to the applicant.

In case of applicants other than salaried persons, the original taxpayer7s copy

of challans of tax deposited is verified to ascertain genuineness of income tax

returns and also the assessment orders for earlier years. $ousing proposals

of the persons, who have filed their income tax returns of last three years in

one lot, should not be entertained.

)o middlemen should be entertained for any retail credit proposals.


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6hether applicants are not maintaining their saving account with bank, the

branch should obtain statement of principal account of the applicant, wherein

salary is being credited.

#redit rating in prescribed module relevant to the retail loan proposal should

be carried out in case before taking credit decision.

Maluation report submitted by govtO approved valuer in respect of immovable

property, the processing officer or asset inspecting officer or sanctioning

authority should assess the value of the property independently on the basis

of prevailing market rates and record the same in the file.

*ach disbursement, whether need to be made in stages, should be backedby siteOspot inspection and relative report should be kept on record.

8ost-sanction inspection after final disbursement should be carried out to

ensure that borrower has taken possession of the houseOflat besides

verification of end use of funds.


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SGOT ANA1YSIS

STREN3TH$

#&nanc&a00y stron) 'an(

!ery o0d 'an(

A))ress&/e -ar(et&n)

3ood re%o

Tec+no0o)&ca0 ad/anced

GEAKNESS$

3*&de0&nes are not f0e


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1EARNIN3S

The most important part is that they make me feel employee of the

organiation rather than a trainee and allow me to flourish in each and

every department.

They were so generous to me that at any mistake, rather scolding they

taught me how to correct it 3 allow me to learn from that mistake.

&earning include,

:. %verview of the banking industry 3 their operation

;. >eep knowledge of loan 3procedure

. 8roposals that the bank has approved for the disbursement of

loan

. $ow to come out from the different problem regarding loan 3 how

to interact with customer.

9. 6orking on #I"I& and learning some of its functionJ. The most important learning of #I'I&3 how to learn this #I'I&

=. !nowledge 3functioning of &A8" software

C. Awareness of I)A#&* software.


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E


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BIBI1IO3RAPHY GEBO3RAPHY

222.'an(of'aroda.co-

222.)oo)0e.co-

222.a%na0oan.co-

222.c&'&0.co-

222.cr&s&0.co-

222.0oan'aar.co-
http://www.bankofbaroda.com/http://www.google.com/http://www.apnaloan.com/http://www.cibil.com/http://www.crisil.com/http://www.loanbazar.com/http://www.bankofbaroda.com/http://www.google.com/http://www.apnaloan.com/http://www.cibil.com/http://www.crisil.com/http://www.loanbazar.com/


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64164736 a summer project report

Documents