Home Loan

Introduction
Today banks have become a part &

parcel of life. There was a time when the dwellers
of city alone could enjoy their services. Now banks
offer access to even a common man and their
activities extend to areas hitherto untouched.
Banks cater to the needs of agriculturist,
industrialists, traders & to all the other sections of
the society. Thus, they accelerate the economic
growth of a country & steer the wheels of the
economy towards its goal of "Self-Reliance In All
Fields".
Origin Of Banking:
Since the banking activities were
started in different periods in different countries,
there is no unanimous view regarding the origin of
the word “Bank”.
The word, “bank”is said to have
been derived from the French word, 'Banco' or
'Bancus' or 'Banc' or 'Banque' which means a
bench. In fact, the early Jews in Lombardly
transacted their banking business by sitting on
benches. When their business failed, the benches
were broken and hence the word 'bankrupt' come
into vogue.
Another common held view is that
the word 'bank' might be originated from the
German word 'Back' which means a joint stock
fund. Of course, a bank essentially deals with
funds. In due course, it was Italianised into
“banco”, Frenchised into “banc” and finally
Anglicised into “bank”. This view is most prevalent
today.
1
Banking and other Business:
Traditionally, money lenders and
indigenous bankers have been advancing loans.
But the don’t receive deposits from the public.
They rely upon their own resources. Moreover,
their main business is not banking. They used to
combine banking with trading business. Hence,
money lenders and indigenous bankers are not
regarded as bankers in the strict sense of the term.
Number of Bank Branches in
India June 2002
Name Of Total Rural

The Bank
State Bank Of 8963 4102

India
SBI Associate 4471 1408
Banks
Nationalised 32684 13765
Banks
Private sector 5370 1138
Banks
Foreign 202 --
Banks
Regional 14473 12060
Rural Banks
Local Area 17 3
Bank
68184 32476(49.1%
)
2
Classification Of Banks
On the basis of the functions they performed, the banks can be

classified into the following types:
1. Commercial Banks:
The commercial banks mobilise deposits from the public which are
repayable on demand or at short notice. They lend to traders and
manufacturers for short periods. They provide the working capital to the
business in the form of overdraft and cash credit.
2. Investment Banks or Industrial Banks:

Investment banks provide medium and long term finance to
industries to meet their fixed capital requirements. For existing industries,
they lend for expansion and modernisation of industries. They help to
promote new industries by underwriting the issue of securities. The
industrial banks secure funds through share capital and debentures. They
also receive deposits from the public for long periods.
3. Exchange Banks:
Exchange banks specialise in financing the foreign trade. They
supply necessary foreign exchange required for settlement of transactions
in foreign trade. The exchange banks discount foreign bills of exchange.
Nowadays commercial banks themselves undertake foreign exchange
business.
4. Co-operative Banks:
Banks formed on the principle of cooperation are called
cooperative banks. They provide short term credit to agriculturalists,
3
artisans, small farmers, and small scale industries. Cooperative banks
accept all kinds of deposits and make loans to the members at lower rate
of interest.
5. Land Development Banks:

Agriculturists require short term and long term loans. Land
development banks provide long term loans to agriculturists for
purchasing tools and equipments and cattle and making permanent
improvement. The long term loans granted are against the security of
immovable property such as land. Land development banks are organized
on cooperative basis in India. The banks raise their resources in the form
of shares and by issuing long term securities. There banks are presently
known as Agriculture and Rural Development Banks.
6. Savings Banks:
Savings banks are specialised institutions collecting savings from
the poor and middle income people of the society. These are banks
primarily intended to encourage habits of thrift and savings among people
with small incomes. The depositors are allowed to withdraw the amount
in times of need. But there are restrictions on the number of withdrawals
to be made in a month. Separate savings banks are organised in various
countries. In India, the Government runs savings banks and they are
managed by the postal department.
7. Central Bank:
Every country has only one central bank. The central bank acts as
the leader of the money market; supervising, controlling and regulating
the activities of the commercial banks and other financial institutions. It
enforces monetary discipline in the country's economy. It seeks to
manage the issue and circulation of currency and control the creation of
bank deposits with a view to safeguard the financial stability in the
country. The central bank functions in close touch with the government
and assists in the implementation of its economic policies. It serves as
banker, agent and advisor to the government. Thus, the central bank is the
apex bank of the country in maintaining the monetary and economic
stability.
4
Loans For Housing
Realising the necessity to provide houses and improve housing
facilities in the country, the nationalised banks have been asked to
provide funds for housing since 1979. Initially, they were expected to
lend Rs. 150 crores annually, but the target was raised to Rs. 300 crores
for the year 1989-90. For the year 1990-91, individual nationalised banks
housing finance allocation was required to be computed at 1.5% of the
incremental deposits on March 1990, over the corresponding figure of
March 1989.
According to the guidelines issued by the Reserve Bank, a bank’s
assistance to the housing sector (including rural areas) may be as follows:
a) 30% of the total housing finance allocation by way of direct
assistance to individuals or a group of borrowers etc., out of which
at least half should be given as direct housing loans in rural and
semi-urban areas.
b) 30%of the allocation for landing to HUDCO, Housing
Development Boards, HDFC and other housing agencies for
construction of house.
c) The remaining 40% of the assistance may be by way of
subscription to the guaranteed bonds/ debentures of HUDCO, and
National Housing Bank.
The terms and conditions etc., for housing finance have been
liberalized to encourage the flow of credit for housing as follows:
a. The loan can be used for purchase of a house or flat, construction
of a house or tenement or for additions or extensions to an existing
structure.
b. The loan will be secured by mortgage of the property. Banks also
accept security of adequate value in the form of life insurance
policies. Government promissory notes, shares and debentures or
gold ornaments.
5
c. Terms loans from banks to housing finance companies(other than
HUDCO,HDFC and companies promoted by commercial banks)
has been raised to three times there net own funds in January,1990.
d. The repayment period will be spread over fifteen years.
e. The maximum amount of loan was earlier fixed at Rs 3 Lacks per
individuals. But this ceiling was withdrawn, effective 11th October,
1989.
Objectives
 Giving proper knowledge about

home loan interest rates of
nationalised banks.
 Making a comparative study of the

interest rates, maximum loan amount
sanctionable and EMI of the different
nationalised banks.
 Finding the bank which is in "Your

Best Interest".
6
Research Methodology
Data Collection
What is Research?
Research is a systematic and refined technique of thinking: Research

starts with problems, collecting data or facts, analysing them critically
and reaching a decision based on the actual evidence.
Research is a science of thinking: Research means discovery of facts,

development of facts and verification of facts.
Advancement of knowledge: Research is the scientific endeavour of the

human mind.
Data collection is comprised of Primary and Secondary Data
Primary Data-: For the purpose of collection of primary data, we went to

several nationalised banks and met their PR Managers. We interviewed
them about their Home Loan Schemes.
The main methods for the primary data collection are:

• Observation
• Interview
• Questionnaires
Secondary Data-: For the purpose of collection of secondary data we

referred to various bank websites and researched in newspapers, books
and magazines.
7
The main methods for the secondary data are:
• Internet
• Magazine
• Television
• Newspapers
• Books
Bank Profiles
Andhra Bank
Andhra Bank was established in 1923 and it was nationalised in 1980.
Eligibility Criteria:
a) Age 18 to 65 years.
b) The take home pay should be at least 30% of gross salary.
c) Repayment span is maximum 20 years.
d) 75% of cost of construction.
e) Income tax benefit for payment of both Principle and Interest as per
I.T. Rules.
f) For salaried person 48 times gross monthly income is the maximum
loan amount sanctionable.
g) Latest salary certificate, Certificate from the employee regarding
leftover service.
h) Estimates and other related approved documents.
Floating Interest Rates:-
Tenure Upto Rs. 20 Lacs Above Rs. 20 Lacs

Upto 5 years 10.50% 11.25%
Above 5 years and upto 10 10.75% 11.50%
years
years
Features:
a) Pre-payment charges are to be levied in case of premature
closure of term loan by theborrower in cases where the term
loan is closed either from his own sources of funds or by way of
takeover by other Banks.
b) The Prepayment charges of 2.00% flat on the prepaid amount
are applicable for all Term loans including loans sanctioned
8
under Personal Banking Schemes, Housing loans, Term loans
against Rent Receivables and Rural godowns where the
repayment period is fixed beyond 36 months.
c) No guarantor / co obligator required.
Documents required during application of any home loan:

 Completed application form
 Proof of Identity – PAN Card/ Voters ID/ Passport/ Driving
License
 Proof of Residence – Recent Telephone Bill/ Electricity Bill/
Property tax receipt/ Passport/ Voters ID
 Sale Deed, Agreement of Sale, Letter of Allotment, Non
encumbrance certificate, Land/ Building Tax paid receipt etc.
(as applicable and subject to satisfaction report from our
empanelled lawyer)
 Copy of approved plan and approval from the Local Body
Statement of Bank Account/ Pass Book for last 6 month.
9
Bank Of Baroda
Bank Of Baroda was established in 1908 and it was nationalised in 1969.
b) Repayment span is maximum 25 years.
c) 75% of cost of construction.
d) Income tax benefit for payment of both Principle and Interest as per
I.T. Rules.
Fixed Interest Rates:-

Upto 5 years 11.00% 11.25%
years
years
Floating Interest Rates :-

Upto 5 years 10.00% 10.25%
years
years
Features:
a) Free property and personal accident insurance(available for
stipulated tenure of loan)
b) As per I.T. provisions, interest on loan till Rs. 1.5 lacs per annum is
exempt from income tax(Under section 23/24 of the Income Tax
Act)
c) Free credit cards to all new home loan borrowers with a loan limit
of Rs. 2 lacs and above.
d) For salaried person 48 times gross monthly income is the maximum
e) No Fees will be charged on part prepayment / full prepayment of
the loan amount from own sources.
10
f) In case of full prepayment or foreclosure (other than from own
sources) fees will be charged at 0.5% for each year of the residual
period subject to maximum of 2%.
g) As security against the loan amount, the bank will take an equitable
mortgage of the housing property and/or other suitable securities.

License
empanelled lawyer)
Statement of Bank Account/ Pass Book for last 6 months
11
Bank Of India
Bank Of India was established in 1906 and it was nationalised in 1969.
d) Income tax benefit for payment of both Principle and Interest as per
I.T. Rules.
e) For salaried person 48 times gross monthly income is the maximum

Upto 5 years 9.50% 9.75%
years
years
Features:
a) Option for different EMI amounts for different periods during
tenure of loan to suit customers’ repayment capacity.
b) Prepayment of loan permitted.
c) Free Personal Accident Insurance cover.
d) Life Insurance cover to borrowers for Loan Protection
(optional). Life Insurance Cover (optional) to housing loan
borrowers against risk of death during tenure of loan under tie-
up with ICICI Prudential Life Insurance Co. Ltd.
e) Interest calculated on daily balance basis which is of great
advantage to customers as it results in lower interest amount.
f) Competitive interest rates.
g) No pre-payment charges if pre-payment is made from own
sources of the borrower.
h) As security against the loan amount, the bank will take an
equitable mortgage of the housing property or otherwise, the
Third Party guarantee is required.
12
License
empanelled lawyer)
13
Bank Of Maharashtra
Bank Of Maharashtra was established in 1935 and it was nationalised in
1969.
b) Maximum 50 years for applicant in service class, subject to
minimum 10 years of residual service.
c) Maximum 55 years for business class.
a) Repayment span is maximum 20 years.
b) 85% of cost of construction.
c) Income tax benefit for payment of both Principle and Interest as
per I.T. Rules.
d) For salaried person 40 times gross monthly income is the
maximum loan amount sanctionable.
Fixed Interest Rates:-
Upto 5 years 11.00% 11.25%
years
years
Floating Interest Rates

Upto 5 years 10.00% 10.25%
years
years
Features:
a) No maximum ceiling in metro and urban areas.
b) Maximum Rs. 10 lacs in semi-urban and rural areas.
c) Maximum Rs. 5 lacs for repairs and renovation.
d) No prepayment charges.
e) Upto Rs.25,000 one guarantor is acceptable to the bank. Above
Rs. 25,000 one guarantor and equitable/regd. mortgage of
property or equal amount of paper security.
f) 60% of gross salary including proposed loan installment is the
maximum deduction limit.
14
License
empanelled lawyer)
Statement of Bank Account/ Pass Book for last 6 months.
15
Industrial Development Bank Of India
IDBI was established in 1964 and it was nationalised in 1969.
d) Income tax benefit for payment of both Principle and Interest as
per I.T. Rules.
e) For salaried person 75 times net monthly income is the
In this bank, the floating interest rates for home loan for a span of 1 to
25 years is 11.00%
Fixed Interest Rates :-
Tenure Rate of Interest

For 3 years 12.00%
For 5 years 12.25%
Features:
a) Tenor of a home loan can be up to 25 years for a resident individual
whereas for NRIs the maximum tenure is 15 years subject to
maximum age of 60 years at maturity.
b) Loan can be applied for a maximum of 90% of the property value
subject to credit discretion.
c) Security for the loan is a first mortgage of the property to be
financed, normally by way of deposit of the title deeds or such
collateral security as may be necessary.
d) Title to the property should be clear and free from encumbrance,
i.e., without any pending legal litigation adversely affecting the
ownership of the property.
e) Other parameters considered include an account of your age,
income, number of dependents, financial stability and co-
applicant’s income.
16
f) No pre-payment charges if pre-payment is from own sources and
after 6 months of the commencement of EMIs. However, in case
the pre-payment is through loan transfers or any such other sources,
a nominal fee of 2% is charged.
g) Security for the loan is a first mortgage of the property to be
financed, normally by way of deposit of the title deeds or such
collateral security as may be necessary.
h) Tax benefits: As per the current finance bill you can get:
• A maximum deduction of Rs. 1,50,000 on your income
towards interest paid on your home loans u/s 24
• A maximum deduction of Rs. 1,00,000 on the principal
repaid u/s 80 CCE
The above benefits are available subject to the
fulfillment of certain conditions, for which the applicant
should refer the IT Act 1961.

License
empanelled lawyer)
17
State Bank Of India
State Bank Of India was established in 1806 and it was nationalised in
1969.
a) Age 18 to70 years.
per I.T. Rules.
e) For salaried person 40 times gross monthly income is the

Upto 5 years 10.50% 10.75%
years
years

In this bank, the fixed interest rates for home loan for a span of
1 to 10 years are 12.75%.
Features:
a) Free personal accident insurance cover up to Rs.40 Lac.
b) Optional Group Insurance from SBI Life at concessional premium

(Upfront premium financed as part of project cost)
c) Interest calculated on daily reducing balance basis, and starts from

the date of disbursement.
d) Option to avail loan at the place of employment or at the place of

construction
e) Complimentary international ATM-Debit card
f) Complimentary SBI Classic/ International Credit Card.

g) Option for internet-banking
18
h) Concessional package under ‘Credit Khazana’ for prospective Auto
Loan, Student Loan, Personal Loan borrowers whose accounts are
conducted satisfactorily
i) 50% concession in charges in respect of all personal remittances/
collection of outstation cheques.
j) Equitable mortgage of the property or otherwise other tangible
security of adequate value.

License
empanelled lawyer)
19
Syndicate Bank
Syndicate Bank was established in 1925 and it was nationalised in 1969.
per I.T. Rules.
Upto 5 years 10.00% 10.25%
years
years
Fixed Interest Rate:-

Upto 5 years 11.00% 11.50%
years
Above 10 years and upto 15 NA NA
years
Features:
a) Margin: 25% of total project cost for construction/purchase of new
flat or house upto 5 years old.30% for acquiring house which is
above 5 years old.30% of the estimated cost of
addition/extension/repairs/renovation.
b) Processing Charges: Rs.500/- per lac with a minimum of Rs.1000/-
at present. (Processing charges are subject to change from time to
time).
c) Repayment:
For acquiring a house, equated monthly instalments with maximum
repayment period of 25 years including repayment holiday of 18
months where eligible. In case of salaried persons, repayment
period shall not extend beyond superannuation and for others
beyond 65 years of age.
20
d) First mortgage of the site/house/flat to be constructed/acquired or
as advised by the Legal Adviser/Law Officer of the Bank.
Hypothecation of furniture & fixtures.

License
empanelled lawyer)
Statement of Bank Account/ Pass Book for last 6 months.
Union Bank Of India
21
Union Bank Of India was established in 1919 and it was nationalised in
1969.
b) Minimum Net Take Home Pay plus proposed EMI should not
be less than 40 % of the Gross Earnings.
c) Repayment span is maximum 20 years, moratorium period upto
18 months.
per I.T. Rules.

Upto 5 years 9.75% 10.50%
years
years

Upto 5 years 10.75% 11.25%
years
years
Features:
a) A minimum of 2 guarantors are required.
b) Finance upto 80% of cost of construction.
c) Loans upto Rs.100 lacs for purchase / construction - New / Old

House/ Flat in Major ‘A’ and 'B' Class cities.
d) Loans upto Rs.10 lacs for Extension/Repairs of existing House.
e) Step up repayment permitted wherein repayment can be started
with lesser amount of instalment and can be increased according
to increase in income.
22
f) Balloon Repayment Programme available wherein lesser
payment can be opted against a lumpsum, which is expected
later for repayment of the loan.
g) Take over of Loans, availed from other Financial Institutions,
are permitted.
h) Loan under second charge is permitted for Govt. Employees.
i) No Pre-closure charges, if the loan is adjusted by own verifiable
legitimate sources.
j) No restriction on number of houses owned.
k) Free Insurance cover for Home and Free Personal Accident
Insurance for the Customer.
l) Free International Credit Card & International Debit cum ATM
Card with VISA logo.

License
empanelled lawyer)
United Commercial Bank
23
United Commercial Bank was established in 1943 and it was nationalised
in 1969.
b) Maximum 75 years of age for senior citizens availing finance to
secure shelter in old age homes.
c) Repayment span is maximum 25 years.
d) 85% of cost of construction.
e) Income tax benefit for payment of both Principle and Interest as
per I.T. Rules.
f) For salaried person 60 times gross monthly income is the
g) Monthly income should be equal to/more than EMI + Rs.4,000/-
in case of a family with up to four members – Salaried/Non-
salaried and agriculturist and bank’s own staff are entitled for
loan.

Upto 10 years 10.25% 10.75%
years
Above 20 years 11.25% 11.75%

Upto 10 years 10.50% 11.25%
years
Above 20 years 11.50% 12.25%
Features:
a) A minimum of 1 guarantor is required whose income is either
equivalent to or more than the applicant.
b) The area-specific maximum limits for construction/purchase are

as under :
24
• Rural Areas : Rs.25 Lac
• Semi-urban/Urban/Metro Areas : Rs.100.00 Lac
• Maximum limits for Repair/Extension/Renovation are
Rs.7.50 lacs in rural areas and
• Rs.25.00 lacs in Metro/Urban/Semi-Urban areas.
c) No processing fees for take over loan.
d) 2% of the prepaid amount, if the loan is prepaid within 3 years.

No prepayment charges thereafter. However, no pre-payment
charges are to be levied if loan is pre-paid from own source.
e) Tax relief on principal and interest components of this loan
would be available as per provisions prevailing under Income
Tax Act.
f) Insurance cover on property under UCO Griha Raksha Yojna
Scheme of NICL and personal accident benefit to the borrower
is available on death only to cover the outstanding balance
under UCO Griha Lakshmi Yojana Scheme (UCOGLYS).
Group insurance cover to home loan borrowers is available
against any type of death from Rs.50000/- to Rs.100.00 lac
under UCOGLYS.

License
empanelled lawyer)
Vijaya Bank
Vijaya Bank was established in 1931 and it was nationalised in 1980.
25
per I.T. Rules.
Interest Rates:-
Tenure Floating Fixed

Upto 5 years 9.25% 9.00%
years
Above 10 years and upto 15 10.00% NA
years
Above 15 years 10.50% NA
Features:
a) The guarantee from spouse / major children to be insisted. If the
property is in joint names, the co-owner should be taken as co-
applicant. If the income of the spouse is reckoned for computation
of loan amount and repayment, the spouse to join as co-applicant.
b) Minimum loan amount is Rs. 1.00 lacs
Maximum – Any amount - on need based as per the cost less
stipulated margin subject to loan entitlement.
c) The branches shall obtain the security of the site and building / flat
constructed / to be constructed / to be purchased for which the
finance is being extended, subject to satisfactory valuation and
applicant’s clear marketable title / free from encumbrance the
property.
d) As an incentive a personal loan (V Cash) equivalent to 12 months
EMIs repayable in 36 months will be extended against the
continuing security of House property already mortgaged to the
Bank, in cases of track record of prompt repayment of 12 EMIs.

License
26
empanelled lawyer)
Statement of Bank Account/Pass Book for last 6 monts.
ANALYSIS
Case Study:
27
 The amount a borrower, aged 25 years, can get as a loan, on an
income of Rs.3 lacs p.a. (Rs. 25000 p.m. gross). He is a permanent
employee of a reputed firm & wants a new flat of 1000 sq. ft. in
Kothrud area, & wishes to repay the loan in a span of 15 years.
Name Of The Max Loan Max No. Of Max Loan

Bank sanctionable Days Amt On Gross
On Gross Required For Monthly
Monthly The Loan To Salary (Rs.
Salary Get 25,000)
Sanctioned
Andhra Bank 48 Times 10-15 Rs.12,00,000
Bank Of 48 Times 15 Rs.12,00,000
Baroda
Bank Of 48 Times 5-6 Rs.12,00,000
India
Bank Of 40 Times 7 Rs.10,00,000
Maharashtra
IDBI 75 3-4 Rs.13,12,500
Times(Net*)
State Bank 40 Times 6 Rs.10,00,000
Of India
Syndicate 72 Times 7-8 Rs.18,00,000
Bank
Union Bank 40 Times 3 Rs.10,00,000
Of India
United 60 Times 8 Rs.12,00,000
Commercial
Bank
Vijaya Bank 60 Times 10 Rs.12,00,000
*After the tax deductions, the net monthly salary becomes Rs. 17,500 p.m.
 Considering the maximum and minimum loan amount available to

him from the various banks, the subject chooses to apply for a loan
of Rs.9 lacs at floating interest rates for a period of 15 years.
Name Of Interest EMI* ETR** Period
28
The Bank Rate (in Rs.) (in Rs.) (in years)
Andhra Bank 11.00% 10229 18,41,200 15

Bank Of 10.25% 9810 17,65,800 15
Baroda
Bank Of 10.00% 9671 17,40,780 15
India
Bank Of 10.25% 9810 17,65,800 15
Maharashtra
IDBI 11.00% 10229 18,41,220 15
State Bank 10.75% 10089 18,16,020 15
Of India
Syndicate 10.75% 10089 18,16,020 15
Bank
Union Bank 10.25% 9810 17,65,800 15
Of India
United 10.50% 9949 17,90,820 15
Commercial
Bank
Vijaya Bank 10.00% 9671 17,40,780 15
*The EMI has been calculated on the net salary of Rs.17500 at the respective interest
rates of the concerned banks (approx).
**Estimated Total Repayment at the end of 15 years (approx).
Observations And Findings

 On the basis of our findings, we ranked the various banks
in the following two categories:
a) EMI
29
b) Max. Loan Sanctinable On Rs. 25000 (gross salary
p.m.).
Name Ranking On The Basis Of:

Of
The Bank Max. Loan
EMI Sanctionable On Rs.
25000 (gross salary
p.m.)
Andhra Bank 5 4
Bank Of Baroda 2 4
Bank Of India 1 4
Bank Of 2 5
Maharashtra
IDBI 5 3
State Bank Of India 4 5
Syndicate Bank 4 1
Union Bank Of 2 5
India
United Commercial 3 2
Bank
Vijaya Bank 1 2
 We now leave it for you to select the bank which is in
“Your Best Interest”
Bibliography
Websites:
a. www.andhrabank.com
b. www.bankofbaroda.com
30
c. www.bankofindia.com
d. www.idbi.com
e. www.sbi.co.in
Search Engines:
a. www.google.com
b. www.wikipedia.org
Books & Magazines:

a. Business Today
b. The Economic Times
c. The Times Of India
d. Banking Theory, Law & Practice
-Gordon & Natarajan

e. Indian Banking System
-Dr. Mukund Mahajan
f. Banking Law And Practice
-P. N. Varshney
Annexure
QUESTIONNAIRE:
HOME LOAN INTEREST RATES
[NATIONALISED BANKS]
31
1. How many kinds of home loans do you offer?
2. How much time is required for a home loan to get sanctioned once
applied?
3. What are the documents required?
4. Are mortgages accepted? If yes, what are the conditions?
5. Is the home loan based on the area of the house or locality? How?
6. How many guarantors are required?
7. What if an installment is not paid?
8. If the salary account is not in your bank then what is the procedure
followed?
9. What if the borrower changes his job?
10.Are loans sanctioned to temporary employees?
11.What if the interest rates change after a period of time (floating)?
12.What if the borrower goes bankrupt?
13.Is insurance covered in home loans plans?
14.Does the loan repayment start directly after it is sanctioned?
15.Can a loan on a single property be sanctioned on 2 or more people?
16.Are there any tax benefits through home loans?
17. How much amount can a borrower get as a loan, depending on his
income?(E.g.-Age-25 years,income-3 lack p.a., permanent employee
of a reputed firm, wants a new flat of 1000 sq. ft. in Kothrud area,
repayment span is 5-15 years…)
18.Which is more preferable-fixed or floating?
19.What are the home loan interest rates (fixed as well as floating) for:
a) Bank employees
b) Others
20. Which factors determine the interest rates for home loans-fixed as
well as floating?
21.Are there any checks to ensure that the money is not used elsewhere?
32

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Introduction

Today banks have become a part &

Name Of Total Rural

State Bank Of 8963 4102

On the basis of the functions they performed, the banks can be

2. Investment Banks or Industrial Banks:

5. Land Development Banks:

 Giving proper knowledge about

 Making a comparative study of the

 Finding the bank which is in "Your

Research is a systematic and refined technique of thinking: Research

Research is a science of thinking: Research means discovery of facts,

Advancement of knowledge: Research is the scientific endeavour of the

Data collection is comprised of Primary and Secondary Data

Primary Data-: For the purpose of collection of primary data, we went to

The main methods for the primary data collection are:

Secondary Data-: For the purpose of collection of secondary data we

Floating Interest Rates:-

Tenure Upto Rs. 20 Lacs Above Rs. 20 Lacs

Documents required during application of any home loan:

Tenure Upto Rs. 30 Lacs Above Rs. 30 Lacs

Floating Interest Rates :-

Tenure Upto Rs. 30 Lacs Above Rs. 30 Lacs

Documents required during application of any home loan:

Tenure Upto Rs. 30 Lacs Above Rs. 30 Lacs

Floating Interest Rates

Fixed Interest Rates :-

Tenure Rate of Interest

Documents required during application of any home loan:

 Completed application form

Tenure Upto Rs. 20 Lacs Above Rs. 30 Lacs

Fixed Interest Rates :-

b) Optional Group Insurance from SBI Life at concessional premium

c) Interest calculated on daily reducing balance basis, and starts from

d) Option to avail loan at the place of employment or at the place of

e) Complimentary international ATM-Debit card

f) Complimentary SBI Classic/ International Credit Card.

Documents required during application of any home loan:

Fixed Interest Rate:-

Documents required during application of any home loan:

Union Bank Of India

Tenure Upto Rs. 30 Lacs Above Rs. 30 Lacs

Fixed Interest Rates :-

Tenure Upto Rs. 30 Lacs Above Rs. 30 Lacs

c) Loans upto Rs.100 lacs for purchase / construction - New / Old

Documents required during application of any home loan:

United Commercial Bank

Floating Interest Rates:-

Tenure Upto Rs. 20 Lacs Above Rs. 20 Lacs

Fixed Interest Rates :-

Tenure Upto Rs. 20 Lacs Above Rs. 20 Lacs

b) The area-specific maximum limits for construction/purchase are

d) 2% of the prepaid amount, if the loan is prepaid within 3 years.

Documents required during application of any home loan:

Tenure Floating Fixed

Documents required during application of any home loan:

Name Of The Max Loan Max No. Of Max Loan

 Considering the maximum and minimum loan amount available to

Name Of Interest EMI* ETR** Period

Andhra Bank 11.00% 10229 18,41,200 15

Observations And Findings

Name Ranking On The Basis Of:

 We now leave it for you to select the bank which is in