UNIVERSITY OF MUMBAI

RAYAT SHIKSHAN SANSTHA‘S

KARMAVEER BHAURAO PATIL COLLEGE
VASHI, NAVI MUMBAI.

COLLEGE CODE – 33

PROJECT REPORT
ON

“TYPES OF LOAN OFFERED BY

STATE BANK OF INDIA”

SUBMITTED BY

SHILPA S. NIKAM.

PROJECT GUIDE
………..…………………………

IN PARTIAL FULFILLMENT FOR THE COURSE OF

BACHELOR OF COMMERCE (BANKING & INSURANCE)

T.Y.B.Com. (Banking & Insurance) (SEMESTER V)

ACADEMIC YEAR 2011-12

 ACKNOWLEDGEMENT

I, Shilpa S. Nikam would take this opportunity to thank the University of Mumbai
for providing me an opportunity to study on a project on Banking. This has been
a huge learning experience for me.

With great pleasure I take this opportunity to acknowledge people who have
made this project work possible.

First of all I would sincerely like to express my gratitude towards my Project

Guide …………………………. for having shown so much flexibility, guidance as
well as supporting me in all possible ways whenever I needed help. I am thankful
for the motivation provided by my Project Guide throughout and helped me to
understand the topic in a very effective and easy manner.

I would also like to thank the Principal Dr. Arvind Burungale and the Coordinator
of the course Prof. K.G.Tapase for his indirect support throughout.

I would also like to thank other teaching faculties of the college, my colleagues,
Library staff and other people for providing their help as and when required to
complete this project.
I acknowledge my indebtedness and express my great appreciation to all people
behind this work.

...............................................
 DECLARATION

I, Shilpa S. Nikam student of KARMAVEER BHAURAO PATIL COLLEGE,

VASHI studying in T.Y.B.Com. (Banking & Insurance) in Semester V hereby

declare that I have completed this Project on Types Of Loan Offered By SBI. as

per the requirements of University of Mumbai as a part of the curriculum of

B.Com. (Banking & Insurance) course and this project has not been submitted to

any other university or Institute for the award of any degree, diploma etc. The

information is submitted by me is true and original to the best of my knowledge.

Date: ………………….. ………………….

Place: Vashi, Navi Mumbai.
……………………………….
 CERTIFICATE

This is to certify that Shilpa S. Nikam. student of B. Com. (Banking &

Insurance) Semester V has completed this project on “Types of loan offered

by SBI.” and has submitted a satisfactory report under the guidance of

………………………… in the partial fulfillment of B.Com. (Banking & Insurance)

Degree Course of University of Mumbai in the academic year 2011-12.

………………… …..……….……… ………………..

Project guide Coordinator Principal
(…………………….) (Prof.K. G. Tapase) (Dr. Arvind
Burungale)

…………………………
University Examiner
(Page for Certificate from Industry)
 Index
No. Topic Name Page
No.
1. Objective of study ....
2. Introduction
2.1 SBI loan policy .....
2.2 .Types of loan. .....

3. Personal loan
3.1 Saral Personal loan. .....
3.2 .Home loan. .....
3.3 .Education loan. .....
3.4. Car loan
3.5. Loan against property
3.6. loan to pensioners
3.7. Easy travel loan
3.8. Loan against share/ debenture
3.9. festival loan
4. SME Scheme
4.1 .SNE open term loan..... .....
4.2 .Cycber plus... .....
4.3 .Rice mile plus..... .....
4.4 .Dental Doctor plus.. .....
4.5.SBI shopee
4.6. School plus...
5. Aricutural loan.....................................
5.1 Agricultural gold loan.............................................. .....
5.2 Kisan credit card .....
5.3.Produce mktg. loan.
5.4. Land purchase scheme..
5.5 Agricutural crop scheme.
5.6 Scorin model for tractor
loan..........................................
6. Conclusion .....

7. Bibliography .....
 1. OBJECTIVE OF STUDY
This project is based on the study of various types of loan offered by bank
to our customer. everyone needs money at every stage of their lives. Sometimes
it is so that they are willing to want to buy your favorite things, but are unable to
buy due to lack of money. There is a question that someone who has a good
amount of money at that time was not right to see dreams? Do not allow them to
fulfill their desires on time? Should I stop dreaming? No, because it is the answer
to these questions. Loans are available for these purposes only.

Loans are granted to individuals for such critical circumstances that may
arise at any time. In the situation of anyone's life can come when you suddenly
need cash. It can be any type of emergency if you need huge amount of money.

There are different types of loans as mortgages, personal loans, student

loans, business loans, etc. You can take any type of loan you need. For each
type of need, there are funds available. Housing loans are available for general
home like buying a luxury car, going for a holiday trip, educational purposes,
home improvement, etc. Many of your desires can be satisfied by the loan.

Whatever type of loans, all have full facilities of its own. All types of loans
have their own importance. Above all, explains the need for monetary
significance of the loan.

OBJECTIVES
1. To present various types of loan offered by SBI to our customer.
2. To explain the advantages and purposes of SBI loan policy
3. To present requirement, rate of interest, margin.
4. To show the schedule of repayment and proceeding fees.
5. To explain the SME scheme
6. To present the Agricultural loan are available for multitude of farming purpose.
 2. INTRODUCTION

State Bank of India (SBI) is the largest Indian banking

and Financial service company (by turnover and total
assets) with its headquarters in Mumbai, India. It is
state-owned. The bank traces its ancestry to British
India through the Imperial Bank of India, to the founding
in 1806 of the Bank of Calcutta, making it the oldest
commercial bank in the Indian Subcontinent. Bank of
Madras merged into the other two presidency banks, Bank of Calcutta and Bank
of Bombay to form Imperial Bank of India, which in turn became State Bank of
India. The government of India nationalized the Imperial Bank of India in 1955,
with the Reserve Bank of India taking a 60% stake, and renamed it the State
Bank of India. In 2008, the government took over the stake held by the Reserve
Bank of India.

SBI provides a range of banking products through its vast network of

branches in India and overseas, including products aimed at non-resident Indians
(NRIs). The State Bank Group, with over 16,000 branches, has the largest
banking branch network in India. SBI has 14 Local Head Offices and 57 Zonal
Offices that are located at important cities throughout the country. It also has
around 130 branches overseas.

With an asset base of $352 billion and $285 billion in deposits, SBI is a
regional banking behemoth and is one of the largest financial institution in the
world. It has a market share among Indian commercial banks of about 20% in
deposits and loans. The State Bank of India is the 29th most reputed company in
the world. Also SBI is the only bank featured in the coveted "top 10 brands of
India" list in an annual survey conducted by Brand Finance and The Economic
Times in 2010.
 The State Bank of India is the largest of the Big Four banks of India,
along with ICICI Bank, Punjab National Bank and HDFC Bank—its main
competitors.

Associate banks
Main Branch of SBI at Mumbai.
SBI has five associate banks; all use the same logo of a blue circle and all the
associates use the "State Bank of" name, followed by the regional headquarters'
name

 State Bank of Bikaner & Jaipur

 State Bank of Hyderabad
 State Bank of Mysore
 State Bank of Patiala
 State Bank of Travancore

Earlier SBI had only seven associate banks that constituted t State Bank
Group. Originally, the then seven banks that became the associate banks
belonged to princely states until the government nationalized them between
October 1959 and May 1960. In tune with the first Five Year Plan emphasizing
the development of rural India, the government integrated these banks into the
State Bank of India system to expand its rural outreach. There has been a
proposal to merge all the associate banks into SBI to create a "mega bank" and
streamline operations.[8]

The first step towards unification occurred on 13 August 2008 when State
Bank of Saurashtra merged with SBI, reducing the number of state banks from
seven to six. Then on 19 June 2009 the SBI board approved the merger of its
subsidiary, State Bank of Indore, with itself. SBI holds 98.3% in State Bank of
Indore.

The acquisition of State Bank of Indore added 470 branches to SBI's existing
network of 12,448 and over 21,000 ATMs.
2.1 State Bank Of India Loans Policy

State Bank of India‘s loan policy is directed towards fulfilling the Bank‘s
vision ‗Customer first and first in customer satisfaction‘. Loan Policy aimed at
accomplishing Bank‘s mission to create products and services that help our
customers achieve their goals. It will, inter-alia, facilitate service excellence to
customers across the country as well as to those residing abroad.

The Loan Policy of the Bank, at a holistic level, is an embodiment of the

Bank‘s approach to sanctioning, managing and monitoring credit risk and aim at
making the system and control effective. It is guided by the best practices of
commercial prudence, the highest standard of ethical norms and requirement of
national priorities.

State Bank of India loans come with truly affordable rates and flexible
repayment terms. The terms and conditions are excellent and have been
designed to suit the borrowers‘ needs. Loan programs are available from State
Bank of India to meet the requirements of individual customers, corporate clients,
small and medium enterprises, Non resident Indians, export and import
businesses and agriculturists. Given below are the different types of loan
products offered by State Bank of India loans.
3. Personal Loan

SBI Personal Loan

Saral Personal Loan Loan to Pensioners

Home Loan Teacher Plus Scheme

Education Loan Loan Against Share & Debenture

Car Loan Festival Loan

Loan Against Property Tribal-Plus Scheme

Easy Travel Loan Credit Khazana

3.1 SBI Saral Personal Loans
A personal loan is the one that establishes consumer credit that is
granted for personal use; usually unsecured and based on the borrower's
integrity and ability to pay consumer loan. A personal loan is an unsecured
loan, meaning the borrower does not put up any collateral or security to
guarantee the repayment of the loan. A loan, whether a personal loan or
another type of loan, is typically used to finance a large, one-time purchase or
expense. The borrower is given all the money at once and agrees to pay back a
certain amount per month until the debt is repaid.

SBI provides SBI Saral personal loan to help you in meeting any kind of
personal expenses whenever you need it to meet your requirements. Loan is
provided at low interest rates, no hidden costs or administrative charges, no
prepayment penalties and comfortable repayment tenure.

SBI Saral Personal Loan : Advantages

 Low interest rates. Further, we charge interest on a daily reducing balance

 Low processing charges; only 2%-3% of loan amount
 No security required
 minimal documentation
 No prepayment penalties. Reduce your interest burden and optimally
utilize your surplus funds by prepaying the loan (1% of the loan amount
will be charged if you repay the loan before 6 months)
 Long repayment period of up to 48 months

SBI Saral Personal Loan: Purpose

The loan will be granted for any legitimate purpose whatsoever like expenses
for domestic or foreign travel, medical treatment of self or a family member,
meeting any financial liability, such as marriage of son/daughter, defraying
educational expenses of wards, meeting margins for purchase of assets etc.
Highlights

Salaried Self Employed

Loan Scheme SBI Saral Personal Loan SBI Saral Personal Loan

Loan Types Term Loan Term Loan

Loan Amount Max. Loan: 12 times the Max. Loan: 12 times the
monthly income monthly income

Tenure Minimum – 12 months. Minimum – 12 months.

Maximum – 48 months. Maximum – 48 months.

Interest Rate 18.5% p.a 18.5% p.a

Time to Process Loan 2 days. 2 days.

Processing Fees 2-3% of loan amount 2-3% of loan amount

Eligibility Criteria

Loan Amount Documents Required

Resident Indian 2.50 lakhs in Non Metros 1).Passport size photograph

National 5 lakhs in Metros up to
10 lakhs where salaried 2).Proof of official address for
or current account is with self employed individuals
SBI. It is determined by and professionals. This
your repayment capacity. can include shop and
establishment certificate/
Minimum Income: Lease deed/Telephone bill
Rs.24,000/- in metro and
urban centres Rs.10,000 3).Latest Salary clip and Form
In rural/semi urban 16, in the case of salaried
Centres. persons.

Max. Loan Amount:

12 times Net Monthly
Income for salaried
Individuals & pensioners
Subject to a ceiling of Rs.
10 lakhs in all centres.
HOME LOAN
 3.2 Home Loan
Now a day, as the country is developing, the standard of living is also
improving. Through it is becoming difficult to afford luxury due to the heavy cost
involved, still people are demanding for the same. The demand is usually fulfilled
by the loan taken by them various blending institutions. Hence, all areas of
expenditure of an individual can be financed by personal loan. The amount of
loan borrowed is usually higher than the amount required for a particular project
which is to cover other additional expenses. It can be a loan needed construction
of homes buying of luxuries items or planning a trip abroad. Banks are giving
tough competition to each other in this field by varying the interest rates and
favorable term of loans. Hence attracting customers to avail his facility of loan,
credit card etc.One such loan which is very common a day is home loan which is
usually taken by the borrowers on behalf their salaries.

The State Bank of India, or SBI, is one of the earliest banks of our
country and still respected by its competitive private counterparts. Like
various other companies financing for your Home loans, the SBI has
developed its own Home loan policies. The SBI Home loans have been
formulated, especially with the knowledge of the basic needs of our
nation‘s people and are quite thrifty.

The SBI Home Loan is available under various schemes and offers
attractive interest rates.
 SBI Home Loan Process:

Initial Loan Application

Underwriting Credit Report

Processing Appraisal Title

Loan Documents Open Escrow

Funding
The first and foremost thing that comes in a home loan process is
organizing your documents. It is highly recommended that you organize all

Your income statements before you buy or refinance your home loan.
You are required to provide two years W-2 along with one month of
paystubs if you are salaried. But if you are self employed, you need to
provide two years tax returns along with YTD profit and loss statement.

The second most task which you should do in a home loan process
is to get qualified. This step can help you in a great deal to understand the
amount which you can borrow before you start a home loan process. You
should get a pre-approval rather than a pre-qualification before applying a
home loan. Make sure that that you find the maximum house you can buy
rather than wasting time by looking at properties which you can afford.
This also helps you in getting a close quickly as your loan is already
approved.

One more thing you should keep in mind while in a home loan
process is to shop for loan programs and rates. You should compare
different programs available with different banks. It is true that shopping
for a home loan can be difficult because there are so many programs from
which you have to choose. Each of the different programs has different
interest rates, points and fees. You can take the help of an experienced
loan officer who can help you to make a right decision which is best for
you.

After the home loan gets approved, make sure to close the loan by
properly signing the final loan documents and review them properly. Don‘t
forget to check that the loan terms and interest rates are same on the
final documents which you were promised.

Purposes:
1. Purchase/ Construction of House/ Flat
2. Purchase of a plot of land for construction of House
3. Extension/ repair/ renovation/ alteration of an existing House/ Flat
4. Purchase of Furnishings and Consumer Durables as a part of the
Project cost.
5. Takeover of an existing loan from other Banks/ Housing Finance.
SBI Home Loan Unique Advantages:
1. Package of exclusive benefits.
2. Low interest Rate, further we charge interest on a daily reducing
balance.
3. Low processing charges
4. No hidden costs or administrative charges.
5. No repayment penalties, reduce your interest burden and optimally
utilize your surplus funds by prepaying the loan.
6. Over 13700 branches nationwide, you can get your home loan account
parked at a branch nearest to your present or proposed residence.

FEATURES

1) Eligibility:
 Minimum age: Minimum age 18 years as on the date of sanction
 Maximum age: 70 years i.e. the age by which the loan should be
fully repaid, subject to availability of sufficient, regular and
Continuous sources of income for servicing the loan repayment.

2) Loan Amount
Actual loan amount will be determined taking into consideration such factors
as applicants income and repaying capacity, age, asset and liabilities, cost of
the proposed house/ flats etc. to enhance loan eligibility you have option to

 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
 Expected rent accruals (less, taxes, cases, etc.) if the house/ flat being is
proposed to be rented out.
 Depreciation, subject to some conditions.
 Regular income from all sources.
3) Security:
Equitable mortgage of the property

4) Margin/ LTV Ratio:

loan Amount Margin (Min.) Maximum LTV Ratio (Max.)

Upto Rs. 20 Lakhs 10% 90%

Above Rs. 20Lacs. 20% 80%

5) Interest rate:
All rate are floating only.
(Base Rate = 10.00% p.a. )

Loan Amount Linkage with Base Rate over the Effective Rate
tenor of the loan

Upto Rs. 30 lakhs 0.75% above Base Rate 10.75% p.a.

Above Rs.30 lakhs 1.00% above Base Rate 11.00% p.a.

and upto Rs. 75
lakhs

Above Rs. 75. 1.25% above Base Rate 11.25% p.a.

lakhs
No fixed rate option in any limit bracket.
6) Processing fees:
It is payable at the time of documentation only.

Loan Amount Processing Fee

Upto Rs. 25 Lacs 0.25% of loan amount

Above Rs. 25 Lacs and upto Rs. Rs. 10,000/-

75 Lacs
Above Rs. 75 Lacs Rs. 20,000/-

NOTE
1) Actual charges for the following will be payable by the customer in
addition to the processing fee:
a) Pre-sanction
(i) Advocate's fee for property search and the title investigation report.
(ii) Valuer's fee for valuation report.

b) Post-sanction
(i) Stamp duty payable for Loan agreement & mortgage.
(ii) Property insurance premium.
(iii) Processing fee recovered.
Pre-closure / Pre-payment Penalty - NIL

7) Repayment:

 Repayment period:
Maximum 25 years (or) Up to the age of 70 years (the age by which the
loan should be fully repaid) of the borrower, whichever is early.
 Moratorium period (Repayment holiday):
The moratorium period is included within the maximum repayment period.
8) Document required:
list of papers/ documents applicable to all applicants:

 Completed loan application

 3 Passport size photographs
 Proof of identify (photo copies of Voters ID card/ Passport/ Driving license/
IT PAN card)
 Proof of residence (photo copies of recent Telephone Bills/ Electricity Bill/
 Property tax receipt/ Passport/ Voters ID card)
 Proof of business address for non-salaried individuals
 Statement of Bank Account/ Pass Book for last six months
 Signature identification from present bankers
 Personal Assets and Liabilities statement

For guarantor (wherever applicable):

 Personal Assets and Liabilities Statement

 2 passport size photographs
 Proof of identification as above
 Proof of residence as above
 Proof of business address as above
 Signature identification from his/her present bankers

Additional documents required for salaried persons :

 Original Salary Certificate from employer

 TDS certificate on Form 16 or copy of IT Returns for last two financial
years, duly acknowledged by IT Debt.

Additional documents required for Professionals/self-employed / other

 Acknowledged copies of three years I.T. returns/ Assessment Orders.

 Photocopies of challans evidencing payment of Advance Income Tax.
 3.2 Education Loan
EVER increasing demand for education loan can be analyzed from the
fact that the expenses of higher education has become unbearable and which
has now become a necessity. Due to this many institution have come forward
with a view to provide financial help to students .These institutions provide better
opportunities to students to avail the required finances .These finances enable
the students to compete their education without any hindrance. Students even
ensure a lucrative future for themselves as many companies are coming up
these days which demand qualified students and offer them high position and
handsome salaries and other benefits. Education loans covers a wide variety of
expenses. It not only helps in meeting the tuition fees but also the others benefits
like hostel fee, expenses of books and all other expenses related to education

A term loan granted to Indian Nationals for purchasing higher education in

India or Abroad where admission has been secured.

Eligible Courses:
All courses having employment prospects are eligible:
 Graduation courses/ Post graduation courses/ Professional courses.
 Other courses approved by UGC/ Government/ AICTE etc.

Expenses considered for loan

 Fees payable to college/ school/ hostel.
 Examination/ Library/ laboratory fees.
 Purchase of books/ Equipment / Instruments/ Uniforms.
 Caution deposits/ Building fund/ Refundable deposit (maximum 10% tution
fees for the entire course)
 Travel Expenses/ Passage money for studies abroad
 Purchase of computers considered necessary for completion of course
 Cost of a Two-wheeler upto Rs. 50000 /-
Amount of Loan:
 For studies in India, maximum Rs.10 lakhs.
 Studies abroad, maximum Rs. 20 lakhs.

Interest Rates:
Base Rate : 10.% p.a. ( 13. 08. 2011 )

SBI Student Loan Scheme

Loan Amount Rate Of Interest

Loan upto Rs.4 lakhs 3.75% above base rate,

currently 13.75% p.a.

Loan above Rs. 4 lakhs and upto Rs. 5.25% above base rate,
7.50 lakhs currently. 15.25% p.a.

Loan above Rs. 7.50 lakhs 4.25% above base rate,

Currently 14.25% p.a.

An Interest Rate concession of 0.50% to Girl Student availing student loan.

Processing Fees:
 No processing fees/ upfront charges
 Deposit of Rs. 5000/- for education loan for studies abroad which will be
adjusted in the margin money.
Repayment Tenure:
Repayment will commence one year after completion of course or 6 month after
securing a job, whichever is earlier.
Place of Study Loan Amount Repayment period in years

Studies in India Rs. 10 lakhs 5–7

Studies in Abroad Rs. 20 lakhs 5-7

Security:

Amount For loan upto Rs. 10 lakhs for studies in India and up
to Rs. 20 lakhs for studies abroad.
Upto Rs. 4 lakhs No security
Collateral security in the form of suitable third party
Above Rs. 4 lakhs to guarantee. The bank may, at its discretion, in
Rs. 7.50 lakhs exceptional cases, weive third party guarantee if
satisfied with the networth/ means of parents who
would be executing the documents as ―joint borrow‖
Tangible collateral security of suitable value, along
Above Rs. 7.50 lakhs with the assignment of future income of the student
for payment of installments.

All loans should be secured by parent(s)/ guardian of the student borrow,

In case of married person, co-obligator can be either spouse or the
parents/ parents-in-law.

Margin
 For loans upto Rs. 4 lakhs : No margin
 For loan above Rs. 4 lakhs:
o Studies in India : 5 %
o Studies Abroad : 15%
Documentation Required:
1. Completed Education Loan Application Form.
2. Mark sheet of last qualifying examination.
3. Proof of admission scholarship, studentship etc.
4. Schedule of expenses for the specified course
5. 2 passport size photographs
6. Borrowers bank account statement for the last 6 months
7. Income Tax assessment order, of last 2 years
8. Brief statement of assets and liabilities, of the co-borrower
9. Proof of Income (I.e. Salary slips/ Form 16 etc.)
CAR LOAN
 3.4 Car Loan
Car or Auto loan as the name signifies are various loans taken to buy
your dream vehicle. Move ahead in life with SBI Car loans! If you have been
putting off purchasing that car, we invent you to go through our Car Loan
Scheme.
Low interest rates, easy repayment options, total transparency.
Finance to include vehicle registration charges, insurance, one-time road tax and
accessories(subject to conditions).

Advantage of Car Loan

Excellent service and lower costs. A quick survey of similar schemes
available elsewhere and you will find that SBI Car Loans for new and old vehicle
offer you:

1. Lower interest rates

2. Longer repayment period of unto 84 months.
3. No hidden costs or administrative charges.
4. Finance for one-time road tax, registration fee, insurance premium
and accessories.
5. No advance EMIs,(some banks/companies ask you to pay one or more
EMIs at the of disbursement of loan, thereby effectively reducing your loan
amount)
6. Complete transparency : We levy interest on daily reducing balance
method. When you pay one instalment, the interest is automatically
calculated on the reduced balance thereafter.when you pay interest on
annual reducing balance ,as charged by many other companies/banks,
the interest amount for the coming year is determined on the amount
outstanding at the beginning of the you.You continue to pay interest even
on the amounts you repay during the year.
Purpose
You can take finance for :
1. A new car, jeep or Multi Utility Vehicles (MUVs)
2. A used car / jeep (not more than 5 years old). (Any make or model).
3. Take over of exiting loan from other Bank/Financial Institution.

Eligibility
To avail an SBI Car Loan, you should be :
1. Individual between the age of 21 -65 years of age.
2. A Permanent employee of State / Central Government, Public
Sector
3. Undertaking, Private company or a reputed establishment or
4. A Professionals or self-employed individual who is an income tax
assesses or
5. A Person engaged in agriculture and allied activities.
6. Net Annual Income Rs. 100,000/- and above.

Salient Features
Loan Amount:
There is no upper limit for the amount of a car loan. A maximum
loan amount of 2.5 times the net annual income can be sanctioned. If
married, your spouse's Income could also be considered provided the
spouse becomes a co-borrower in the loan. The loan amount includes
finance for one-time road tax, registration and insurance! No ceiling on
the loan amount for new cars.Loan amount for used car is subject to a
maximum limit of Rs. 15 lakhs.

Type of Loan:
1. Term Loan
2. Overdraft -
Documents Required
You would need to submit the following documents along with the
completed application form if you are an existing SBI account holder:
 Statement of Bank account of the borrower for last 12 months.
 2 passport size photographs of borrower(s).
 Signature identification from bankers of borrower(s).
 A copy of passport /voters ID card/PAN card.
 Proof of residence.
 Latest salary-slip showing all deductions
 I.T. Returns/Form 16:2 years for salaried employees and 3 years for
professional/ self-employed/ businessmen duly accepted by the
ITO wherever applicable to be submitted.
 Proof of official address for non-salaried individuals. If you are not
an account holder with SBI you would also need to Furnish
documents that establish your identity and give proof of residence.

Margin:
New / Used vehicles : 15% of the on the road price.

Repayment
You enjoy the longest repayment period in the industry with us.
Repayment period:

For Salaried Self-employed & Professionals

Maximum of 84 months. Maximum 60 months.

Repayment period for used vehicles : Up to 84 months from the date of original
purchase of the vehicle (subject to maximum tenure as above).
Prepayment Penalty:
Prepayment fee of 2% of the amount of the loan prepaid will be levied subject to
certain conditions.

Interest Rate:
SBI Car Loan Scheme
SL. PARAMETER
DETAILS
No SCHEME
1 Applicable to All New Car Loans to Public

At present the following Interest rates are

applicable:

For Term Loan:

2 Interest Rate 1.25% above Base Rate, i.e. 11.25% p.a.

For Overdraft:

OD will attract 0.50% more than the existing rate

for Term loans.

NRI Car Loan

Tenure Rate of Interest

For all tenures 1.25% above Base Rate i.e. 11.25% p.a.
Two- Wheeler Loan
Tenure Rate of Interest

Up to 3 years 8.25% above Base Rate i.e. 18.25% p.a.

Used Vehicles

Tenure Rate of Interest

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

Above 3 yrs
7.50% above Base Rate i.e. 17.50% p.a.

Certified Pre-owned Car Loan scheme

Tenure Rate of Interest

Up to 3 years 6.00% above Base Rate i.e. 16.00% p.a.

Above 3 yrs
6.50% above Base Rate i.e. 16.50% p.a.

Processing Fee
0.50% of Loan amount and to be paid up front.
Minimum: Rs. 500/-
Maximum Rs. 10,000
25% of Processing fee will be retained if application is rejected after pre- sanction
survey.
3.4 Loan Against Property
A dream come true! An ALL PURPOSE LOAN for anything that life
throws up at you!! Do you need funds for a Marriage ceremony, want to
take your family to a well-deserved holiday or for a sudden medical
emergency? you have some property, but would rather not sell it? Then
why not avail of this ALL PURPOSE LOAN from SBI? SBI now makes it
very much possible for you to only keep your property but also have
liquid funds.

Enjoy the SBI Advantage

 Complete transparency in operations.
 Access this loan from our wide network of branches.
 Interest rates are levied on a monthly/daily reducing balance
method .
 Lowest processing charges.
 Long repayment period of months, up to 120 months for salaried
Individuals.
 with check-off facility
 No Hidden costs or administrative charges.
 No prepayment penalties. You can have surplus funds at any time
 thereby Conveniently reducing your loan liability and interest
burden.

Property Loan Scheme

Avail of an All-Purpose loan against mortgage of any of your
property. We offer you these loans at all our Personal Banking Branches
and those branches having Personal Banking Divisions amongst others.
Purpose:
This is an all purpose loan, i.e., the loan can be obtained for any
purpose Whatever. If amount of loan is Rs.25.00 lacs and above then
purpose of loan will have to be specified along with an undertaking that
loan will not be used for any speculative purpose whatever including
speculation on real estate and equity shares.

Eligibility:
You are eligible if you are:
A. An individual who is;
a. An Employee or
b. A Professional, self-employed or an income tax assesses or
c. Engaged in agricultural and allied activities.
B. Your Net Monthly Income (salaried) is in excess of Rs.12,000/- or Net
Annual Income (others) is in excess of Rs.1,50,000/-. The income of
the spouse may be added if he/she is a co-borrower or a guarantor.
C. Maximum age limit: 60 years.

Salient Features
Loan Amount:
Minimum : Rs.25,000/-
Maximum: Rs.1 crore. The amount is decided by the following calculation
 24 times the net monthly income of salaried persons (Net of all
deductions including TDS) OR
 2 times the net annual income of others (income as per latest IT
return less taxes payable)

Margin:
We will finance upto 60% of the market value of your property.
Interest:
Size of Credit Limit
(Term Loan) Rate of Interest

Upto Rs. 1,00,00,000/- 5.25% above Base Rate Floating, currently

15.25% p.a.

Above Rs. 1,00,00,000/- 5.50% above Base Rate Floating, currently

15.50% p.a.

No Overdraft against Mortgage of Property

Repayment:
Maximum of 60 equated monthly installments, upto 120 months for
salaried individuals with check-off facility. You could opt to divert any
surplus funds towards prepayment of the loan without attracting any
penalty.

Processing Fees:

2% of the loan amount [inclusive of the service tax]. Max of Rs. 50,000/-

Security:
As per banks extant instructions.
EASY TRAVEL LOAN
Travel Loan, Loan for tour
3.5 Travel Loan
Do you want funds readily available to you whenever you desire to go on a
vacation that you plan with your family or friends? SBI's Easy Travel Loan is the
Answer to your questions. Enjoy the SBI Advantages:
1. Low interest rate. Further, SBI charge interest on a daily reducing balance!!
2. Low processing charges, only 1% of loan amount.
3. Complete transparency. No hidden cost or administrative changes.
4. No security required ……which means minimal documentation…
something that you had always wanted.
5. No prepayment penalties. Reduce your interest burden and optimally
utilize your Surplus funds by prepaying the Loan.
6. Long repayment period of up to 48 months.

The Scheme Purpose

To meet any kind of Travel expense such as cost of ticket, hotel stay, visa,
Airport tax, purpose of Basic Travel Quota, etc.

Eligibility
You are eligible if you are:
1. A State/Central Govt. Employee, employee of public sector undertaking/
reputed profit making public limited company, reputed institutions,
MNC with a minimum service experience of 2 years.

2. A self employed professional, with a minimum 2 years standing. You

Should be 60 years of age or less.

3. A Pensioner of PSU/Govt. (Central/State)/Public Sector Bank who has

taken premature voluntary retirement and is 60 years of age or less

4. Agent of insurance/KVP/Mutual funds etc. with 3-5 years standing who is

a tax assesse and whose gross annual income exceeds Rs. 2 lacs.
 5. A trader, who has cash flows to repay the loans and can provide suitable
third party guarantee, you should restrict your banking requirements to the
Branch where the loan is proposed to be taken.

Salient Features
Loan Amount:
Your personal loan limit would be determined by your income and
repayment capacity.
Minimum: Rs.24,000/- Maximum : 12 times Net Monthly Income for salaried
Individuals and pensioners and 1 year's net annual income in case of self
employed professionals with the under noted ceilings.
For Salaried individuals and self employed professionals:
Rs.2.5 lakhs (Rs.5 lakhs in New Delhi, Chennai, Bangalore, Hyderabad, Mumbai
and Kolkata and can be further increased to Rs.10 lakhs if the self-employed
professional maintains a satisfactorily conducted account with our branch or the
salary of individual is regularly credited to their account with our Bank)
For pensioners : Rs.1.5 lakhs
For members of business community: Rs.3.0 lac or 1 year‘s net annual profit
During the preceding financial years, whichever is lower.

Documents Required
For existing bank customer:
1. Copy of the passport ( for overseas travelers )
2. Copies of Rail-tickets/Bus tickets/Air tickets and visas(for overseas
travellers)
3. Sundry charges etc.
4. Passport size photograph
5. For salaried individuals Latest salary slip and Form 16, for Self-employed
6. individuals and Professionals IT returns for the last two financial years.
Proof of Professional Qualification (for self employed professionals)
7. Copy of the highest professional degree held.
For New Customer:
Important documents to be furnished while opening a Personal Loan Account:
1. Proof of Identity.
2. Copy of passport
3. Copies of Rail-tickets/Bus tickets/Air tickets and visas.
4. Sundry charges, etc
5. Passport size photograph
6. For salaried individuals Latest salary slip and Form 16 for Self-employed
7. individuals and Professionals IT returns for the last two financial years.
Proof of Residential address, this can include home and establishment
certificate/Lease deed/Telephone Bill.
8. Proof of Professional Qualification (for self employed professionals)
Copy of highest Professional degree held Proof of official address (for
members of business community),this can include shop and establishment
certificate/Lease deed/Telephone Bill.

Margin:
We do not insist on any margin amount.

Interest Rates:
3.25% above SBAR Floating i.e.17.00% p.a.

Repayment:
The loan is repayable in a maximum of 48 EMI. You are allowed to pay more
than the EMI if you wish to, without attracting any prepayment penalty.

Security:
No security is needed except in the case of members of business community
where suitable third party guarantee is required.
3.6 Teacher-Plus Scheme
“The mediocre teacher tells. The good teacher explains. The
superior teacher demonstrates. The great teacher inspires."
~ William Arthur Ward

Enjoy the SBI advantage :

1. Concessions in margin amounts, interest rates and processing
charges!!
2. Lowest interest rates. Further, we charge interest on a daily
reducing balance!!
3. Lowest processing charges; only 1% of loan amount - compare
with 1-3% of others.
4. No hidden costs or administrative charges..
5. No prepayment penalties. Reduce your interest burden and
optimally utilize your surplus funds by prepaying the loan.
6. Flexible repayment period.

The Scheme
SBI recognizes the special position sanctioned for teachers in our
society and is proud to introduce Teacher Plus - a special scheme for
teachers placed under State and Central Governments as also under the
deemed universities. Through Teacher Plus, you can avail of concessions
in the rates of interest, processing charges and margin amounts in the
following schemes :
 Personal Loan
 Car Loan
 Festival Loan
 Housing Loan
Eligibility:
This scheme is open for all teachers placed under State and Central
Governments as also under the deemed universities.

Documents Required:
As applicable to Personal loan, Car loan, Festival loan and Housing loan
schemes.
3.7 Loan To Pensioners:
If you are a Central or State Government pensioner drawing your pension
through one of our branches and are not more than 72 years of age, you can
avail of a loan from your branch to meet your personal expenses. We
understand you may have an urgent or unexpected need for funds or a family
obligation to be fulfilled and appreciate your association with us.

You can avail a loan of up to a maximum of 12 months pension, subject

to a ceiling of Rs.1,00,000. The documentation is easy.

There are no processing fees, no hidden costs and no prepayment

penalties. Whenever you have some surplus funds, you can credit your loan
account, thereby reducing your loan liability and interest burden.

Purpose:
To meet personal expenses .

Salient features of the Scheme:

Eligibility:
1. Pensioners:
All Central and State Government pensioners, whose pension accounts are
maintained by our branches. The pensioner should not be more than 72
years of age.
2. Family Pensioners:
Family pensioner, i.e. spouse authorized to receive pension after the death of
the pensioner, subject to condition that family pensioner should not be more
than 65 years of age.
Loan Amount:
1. Pensioners: A maximum of 12 months pension with a ceiling of Rs.3 lakhs

2. Family Pensioners : A maximum of 9 months net family pension with a

ceiling of Rs.1.50 lakhs. In no case the EMI should be more than 25% of
the net pension drawn by the family pensioner.

Collateral Security:
Pensioners: Third party guarantee (TPG) of the spouse eligible for family
pension. In the absence of the spouse, TPG of any other family member or a
third party worth the loan amount.

Family Pensioners: Third party guarantee of a person who has been maintaining
a satisfactorily conducted account with the bank, preferably of the son/daughter
of the family pensioner.

Repayment:

In EMIs commencing from the pension payable one month after disbursal of loan.
Installment is deducted at the time of payment of pension:
Age at the time of loan Repayment Period Age at the time of full
sanction repayment
Up to 70 years 36 months 73 years

70-72 years 24 months 74 years

Rate of Interest:
4.75% above SBAR Floating i.e. 14.75% p.a.
3.8 Loan Against Shares \ Debenture
Do you need urgent cash but you don't wish to sell or liquidate your holding
of shares? Leverage your investments in shares, debentures, public sector
bonds and Government securities for loans to meet unforeseen expenses!! You
need not miss out on the next stock market boom!!

Avail of loans up to Rs.20.00 lakhs against your shares/debentures to enable

you to meet contingencies, personal needs or even for subscribing to rights or
new issue of shares.

Enjoy the SBI Advantages:

 Low interest rates. Further, we charge interest on a daily reducing balance

 Low processing charges; only 1% of loan amount - compare with 1-3% of
others.
 No hidden costs or administrative charges..
 No prepayment penalties. Reduce your interest burden and optimally
utilize your surplus funds by prepaying the loan.

THE SCHEME

Purpose

 For meeting contingencies and needs of personal nature.

 Loan will be permitted for subscribing to rights or new issue of shares/
debentures against the security of existing shares/debentures.
 Loan will not be sanctioned for
(i) Speculative purposes
(ii) Inter-corporate investments or
(iii) Acquiring controlling interest in company / companies.
Loan Amount:

You can avail of loans up to Rs 20.00 lakhs against your shares/debentures.

Margin:

You will need to provide a margin amount of 50% of the prevailing market prices
of the shares/ non-convertible debentures being offered as security. (The market
prices refer to the prices in the Stock Exchanges as reported in the Economic
Times.)

Interest Rate:

Scheme Rate of Interest

Equity Plus Scheme 6.50% above Base Rate, currently

16.50% p.a.

Repayment Schedule :

 To be liquidated in maximum period of 30 months through a

suitable reducing DP programme.

 In case of a default or if the outstanding is over Rs.20.00 lakhs,

the shares/debentures will be transferred in the name of the Bank.

Security:
Pledge of the demat shares/debentures against which overdraft is granted.
Eligibility:

 This facility is available to our existing individual customers enjoying a

strong relationship with SBI.
 This loan could be availed either singly or as a joint account with spouse
in 'Either or Survivor'/'Former or Survivor' mode.
 It is offered as an Overdraft or Demand Loan.
 The facility is available at 50 select centers.

Documents Required
You will be required to submit a declaration indicating:

 Details of loans availed from other banks/ branches for acquiring shares/
debentures.
 Details of loans availed from other banks/ branches against security of
shares/ debentures
3.9 FESTIVAL LOANS
It is the festive season is the unavailability of ready funds, dampening the
celebrations? Avail of SBI's Festival Loan and bring back the cheer and celebrate
in style Hurry, the gifts and the sweets are waiting…. SBI offers the unique facility
of Festival Loans to help you meet any kind of festival related expenses.

Enjoy the SBI Advantage :

 Low interest rates, currently 15.50% p.a.(compare with the 18.00% - 30%
p.a. charged by others for personal loans/credit card companies.)
 Low processing charges; 1.10% of loan amount(inclusive of service
tax) per application.
 No hidden costs or administrative charges.
 No security required if check off is available….. which means
minimal documentation…. something that you had always wanted.
 No prepayment penalties.
 Repayment period of upto 12 months.
 Complete Transparency.

THE SCHEME
Purpose:
To meet any kind of festival related expenses.

Eligibility :
 A net monthly income of Rs.3000/- and above.
 Spouse‘s income can also be considered in calculating the loan amount
provided he/she guarantees the loan or the loan is taken jointly.
An Employee of Govt., PSUs, profit making public/private limited
companies/ institutions etc with a minimum of 2 years service OR
 Self employed person with minimum 3 years standing/experience OR
  A person having regular source of income from verifiable channels like
Pension
 and interest from TDRs/NSCs/Govt. Securities etc

Loan Amount
 Your festival loan limit would be determined by your income
and repayment capacity.
 Minimum Rs.5000/-
Maximum : 4 times your Net Monthly Income, subject to a ceiling of
Rs.50,000/-.

Interest Rates:

6.75% above Base Rate, currently 16.75% p.a.

Repayment:
You can repay the loan over a period of 12 months through Equated
Monthly Installments (EMI). Should you wish to deploy your surplus funds
towards prepayment of the loan, feel free to do so without any prepayment
penalty.

Security:
Personal guarantee of the spouse or any other person of adequate worth
where check off facility is not available.

Processing Fee :
You need to pay only a nominal processing fee of 1.10% of the loan amount.
Documents Required:
 Passport Size Photograph
 Proof of official address for self employed individuals and professionals.
 This can include shop and establishment certificate/Lease
 deed/Telephone Bill.
 Latest Salary Slip and Form 16, in the case of salaried persons IT
returns for the last two financial years, in the case of self employed
individuals and professionals
3.9 Tribal-Plus Scheme
The scheme is a special Housing finance scheme for Hill/ Tribal areas of
North East India and areas around Chandigarh, Bhopal, Lucknow, Patna and
Bhubaneswar.
Advantages:

 Lowest interest rates. Further, we charge interest on a daily reducing

balance!!
 Lowest processing charges; only 1% of loan amount - compare with 1-3%
of others.
 No hidden costs or administrative charges..
 No security required - which means minimal documentation…something
that you had always wanted.
 No prepayment penalties. Reduce your interest burden and optimally
utilize your surplus funds by prepaying the loan.

The Scheme
The Tribal Plus is a special to provide housing finance for Hill/Tribal areas
without mortgage of land.
Loans will be granted to individuals to:

 Purchase or construct a new house or flat.

 Purchase an existing house or flat (old) that is not more than 10 years old.
 Repair or extend or renovate an existing house or flat.

Eligibility:
 Individual(s) over 21 years of age (but not more than 60 years) who are
permanent employees of Central or State Government or Public Sector
undertakings (PSU) or reputed private sector units and have put in a
minimum of 5 years service as Class I or Gazetted Officers or 10 years for
other grades.
 Check-off facility should be available.
  This scheme is open to tribals hailing from the hill states of North East
India and areas around Chandigarh, Bhopal, Lucknow, Patna, and
Bhubaneswar. They can avail this scheme from SBI branches in these
areas.
 If they are not currently living in these areas, they can still avail of the
scheme for a housing loan to be used at their native village!\

Salient Features:
1. Loan Amount
The maximum loan amount will be calculated on the basis of 24 times the net
monthly income (NMI) of the applicant subject to a maximum of Rs.5.0 lacs. The
income of the spouse can also be considered for this purpose provided he/she is
a permanent employee of Government / PSU / Private Sector unit and is willing
to guarantee the loan.

2. Margin
A minimum margin of 25% is envisaged.

3. Disbursement
Disbursements will be made in a phased manner in tune with the actual
progress in the construction. However, in case of outright purchase of house,
there could be a one-time disbursement of the loan amount.

4. Repayment Schedule:
The loan is to be repaid over a period of 10 years through Equated Monthly
Installments. The repayment period will include the moratorium or repayment
holiday, at the option of the beneficiary, covering the construction period or 12
months from disbursement of the first instalment of the loan, whichever is earlier.
As with all our schemes there is no prepayment penalty whatsoever!
5. Security:
As per bank's extant instructions.

6. Processing Fess:
0.25% of the loan amount.

7. Document Required:

In addition to the usual documents, under noted documents or papers will also be
obtained:

 Affidavit sworn by the applicant that he/she is the owner of the plot of land.
 Post-dated cheques representing monthly installments may also be taken
till the loan is liquidated.
 In specific cases, an agreement to mortgage the land may also be
required.
3.10 Credit Khazana

The "SBI Credit Khazana" Scheme offers Housing Loan customers,

concessions in interest rates and margins when they subsequently avail of any of
the following loans: Car Loan, Scoom, Education Loan, Personal Loan, Tractor
Loan.

1. Eligibility:

Housing Loan customers who have serviced the loan regularly for at least
one year and where Equitable Mortgage has been created.

2. Concession in Interest:

There will be a concession of 0.25% in interest when any of the above

mentioned loans are availed.

3. Concession in Margin:

There will be a concession of 10% in case of Car Loan and 5% in case of

Tractor Loan. Under the SCOOM Scheme, the margin has been maintained at
5%.

4. Security

The security required to be taken under the individual schemes would be

taken and additionally, the Equitable Mortgage taken for the Housing Loan would
be extended to cover the new loan(s).

5. Insurance

Free accident insurance cover (to cover death only) is available in case
of Car Loan.
6. Other terms & Conditions:

Other terms & conditions like Amount of Loan, Repayment,

Documentation will be the same as those laid down for the individual schemes.
SME SCHEME
4. SME SCHEME

Business loan

 SME Open Term Loan

 Cyber Plus

 Rice Mile Plus

 Dental Doctor Plus

 SBI Shoppe

 School Plus
 Small and medium-sized enterprises (SMEs) are the backbone of all
economies and are a key source of economic growth, dynamism and flexibility in
advanced industrialized countries, as well as in emerging and developing
economies. SMEs constitute the dominant form of business organization,
accounting for over 95%and up to 99% of enterprises depending on the country.
They are responsible for between 60-70% net job creations in Developing
countries. Small businesses are particularly important for bringing innovative
products or techniques to the market. Microsoft may be a software giant today,
but it started off in typical SME fashion, as a dream developed by a young
student with the help of family and friends. Only when Bill Gates and his
colleagues had a saleable product were they able to take it to the marketplace
and look for investment from more traditional sources

SMEs are vital for economic growth and development in both

industrialized and developing countries, by playing a key role in creating new
jobs. Financing is necessary to help them set up and expand their operations,
develop new products, and invest in new staff or production facilities. Many small
businesses start out as an idea from one or two people, who invest their own
money and probably turn to family and friends for financial help in return for a
share in the business. But if they are successful, there comes a time for all
developing SMEs when they need new investment to expand or innovate further.
That is where they often run into problems, because they find it much harder than
larger businesses to obtain financing from banks, capital markets or other
suppliers of credit

State Bank of India is the forerunner in the field of SME financing

.Majority of the loans to SMEs are been provided by SBI. SBI has introduced
various schemes for SMEs. The various schemes are according to the sector in
which a particular SME belongs. SBI has introduced SME financing for SME
belonging to sectors like: Agriculture, Medical, Transport, Tourism, Education
and many more.
 Steps for SME loans by State Bank of India (SBI)
Steps for SME loans by State Bank of India

1. Application for loan by SME to local branch of a particular area.

2. Inspection/Survey of SME by the Executives of that Local branch.

3. Sending the Documents of survey by Local branch to SMEC branch

4. Preparing credentials of Promoters and firm by SMECC branch

and

5. Estimating the amount of loan to be sanctioned and forwarding

the documents for sanctioning.

6. If the loan is been sanctioned by the central authority then

disbursement of the loan amount into account of the
SME.
 The above figure shows the steps for availing finance through State
Bank of India (SBI) using loans. Here is the brief description of the above shown
procedure:

First of all the SME who wants to avail loan has to visit the local branch
office of their area, where by the loan application is been filled by the SME. After
that the executives of that branch check whether all the necessary documents
are provided by the SME or not, then if all necessary documents are submitted
the next step comes whereby the officials of that local branch go to the premises
of that SME and just have a brief survey of promoter as well as the premises.

After they are satisfied they send the file of necessary documents to the
SMECC branch, which is a special branch for SME loans. Where by the credit
appraisal takes place, which consist of credit appraisal of promoter, financial
appraisal, determining cost of project, understanding various means of finance
used, profitability estimate, cash flow projections , marketing appraisal etc. ,which
is explained in next section. This step brings out the clear picture whether the
loan should be given to the SME or not?

If the SMECC branch is satisfied with the details then it forward the
request of granting loan to the sanctioning authority. And finally after the
verification by sanctioning authority, the disbursement of loan amount takes
place in the account of that SME.

This whole procedure right from application to disbursement of loan

amount takes approximately 20-25 days as the procedure involves analysis
of documents by various branches and thus the movement of documents
amongst them, if all this procedure would have taken place at single place then it
would take only 10-12 days for disbursement.
4.1 SME OPEN TERM LOAN

Nature of Facility:
 The product is a pre-approved term loan facility which can be disbursed
over a period of 12 months depending on unit‘s request.
 The units get comfort of preapproved sanction to plan their capital
expenditure and negotiate with suppliers of machinery to finalize the best
possible terms and then get the loan disbursed.

Facility available for:

 All units under manufacturing sector.
 Under Service sector: Educational Institution, Healthcare Industry
(Hospital, Doctors, Pathological Labs, and Nursing Home), Hospitality
Industry (Hotels, Restaurants, and Health Club etc), and Transport
Operators with minimum 25 vehicles.

Purpose:
Any genuine commercial purposes in line with regular business activity of the
customer. These would include
 Expansion and modernization.
 Substitution of high cost debts/ high cost term debts of other banks/FIs.
 Design and introduction of new lay-outs in the factory to enhance
productivity.
 Up gradation of technology & energy conservation schemes/ machinery.
 Acquisition of software, hardware, consumable tools, jigs, fixtures,
vehicles, equipment , furniture upholstery etc.
 Acquisitions of ISO & other similar certifications.
 Visits abroad for acquiring technology, finalizing business deals,
participating in exhibitions/ fairs for market promotion etc.
Loan Amount:
 Maximum Rs 2.50 crore for both manufacturing and services enterprises,
subject to credit rating and purpose of the loan.

Repayment period:
 Maximum 3 years, extendable up to 5 years.

Interest Rate:

Facility Interest Rate for period upto 3 years

Term Loan
(Based on Credit Risk Base Rate10% + 4.75% to Base Rate
Assessment Model) +6.50%

Collateral security
 Personal Guarantee of promoters in all cases
 Pledge of Promoter‘s equity in case of corporate.

Eligibility
 Existing or new corporate/ Non corporate customers of SME
segment with good rating.
4.2 CYBER PLUS

Eligibility
 Individual entrepreneurs
 The kiosk operator should be a local person
 Educational qualification - Minimum Plus two
 Age between 20 and 45 years
 Should possess basic computer knowledge.
The operator will be interviewed, selected and trained by N-Logue.

Purpose:
To set up internet/cyber cafes especially at rural and semi-urban centers with
potential for such a facility

Nature of facility
Composite loan

Amount of loan margin :

Rs. 9000

Tenure of Loan
 36 to 40 monthly installments
 Moratorium period - 3 months

Primary security
Security for assets purchased from bank finance

Interest Rate:
Loan – 9 . 5 %
4.3 RICE MILE PLUS

Purpose:
 Acquisition of machinery/ factory building for modernization
or expansion.
 Working capital needs.

Loan amount:
 Based on project cost.

Amount of loan available:

 Term loan 15 - 25 %
 Working capitals stock:
Paddy & rice- 15 - 75%
Brokens – 20 %
Gunny bags – 40%
Bran – 30 %

Repayment:
 Term loan:
Minimum- 5 years, Maximum- 7 years
 Working Capital:
12 months can be extended to other 12 months under certain conditions.

Collaterals security:
Loan over 5 lakhs – Equitable mortgage of property/ tangible
Security belonging to borrower/ guarantor valued not less than 75 %
of the loan amount.
Eligibility:
Profit making exiting units and new units of good credit rating.

Interest Rate:

Loan amount Interest rate

Rs. 50 , 000 8.5%

Between Rs. 50000 & 2 lakhs 9.5%

Between Rs. 2 lakhs & 5 lakhs 10 . 25 %

Between Rs. 5 lakhs & 25 lakhs 11 %

above Rs. 25 lakhs 12 . 75 %

4.5 DENTAL DOCTOR PLUS

Purpose
 To boost the financing to Dental equipment under tie-up
arrangement.
 To finance qualified dentists
 For buying equipment
 Any other activities related to Dental profession

Loan amount;
 Maximum of Rs.10 Lakhs

Amount of loan available:

 Up to Rs. 25,000 ± NIL
 Over Rs. 25,000 and up to Rs. 5 Lakhs ± 10%
 Over Rs. 5 Lakhs and up to Rs. 10 lakhs ± 20%

Repayment:
 Minimum- 3 years, Maximum period of 5 to 10 years
 Maximum moratorium period of 6 months . For construction
purposes the moratorium period is 12 months (can be relaxed upto
24 months at the discretion of an authority one level higher than
the sanctioning authority)

Nature of facility:
 Term loan

Primary security
 Hypothecation of assets financed by the Bank
Eligibility
 Individuals/Partnership firms/Ltd. Co/Trust
 Promoters should have minimum BDS and should be registered
practitioners.

Interest Rate:

Loan amount Interest rate

Rs. 50 , 000 8.5%
Between Rs. 50000 & 2 lakhs 9.0%

Between Rs. 2 lakhs & 5 lakhs 9 . 25 %

Between Rs. 5 lakhs & 25 lakhs 10 . 25 %

4.5 SBI SHOPPE

Purpose
 Purchase of new/old shops/establishments/offices.
 Modernization/expansion of establishments/shops, etc.
 All furniture/fixtures, electrical fittings and other accessories
required
 for shops/showrooms/offices.

Loan amount :
 Maximum of Rs 20 lakhs.

Nature of facility:
 Term loan (MTL).

Margin:
 25% for purchase new shop
 40% for purchase old shop.

Repayment:
 Minimum- 3 years, Maximum- 7 years
 Maximum moratorium period - 6 months

Primary Security:
 Hypothecation/ pledge/ mortgage/ assignment of property
purchased out of bank's finances including non-industrial assets.

Rate of Interest:
 As applicable to SIBTLs below Rs 25lakhs.
Processing fess:
 Processing fess ranges from 1% to 1.50% of the loan amount.

Eligibility:
Eligibility Any of the following are eligible:
 Individuals
 Firms
 Partnership Firms
 Trusts
 Franchises.
4.6 SCHOOL PLUS

Purpose:
 Construction of new buildings, repair and renovation of old building
 Purchase of electronic & lab equipment, books, manuals, furniture &
fixture, etc.

Nature of facility :
Term loan with fixed repayment schedule based on repayment capacity
and income streams

Margin:
15% of the project cost

Repayment:
 Loan amount upto Rs. 2 ;lakhs – Repayable in 36 equated monthly
installment.
 Loan amount from Rs.2 lakhs to 5 lakhs – Repayable in 60
equated monthly .
 Loan amount above Rs. 5 lakhs – Repayable in 84 monthly
installment.

Processing fess:
 Processing fess ranges from 1% to 1.50% of the loan amount.

Security:
 Primary security : Hypothecation of Assets financed by the bank
 Collateral security: Tangible collateral in the form of immovable
property, TDRs, NSCs, KVPs, LIC policies etc equivalent to 50% of
the total loan amount may be obtained.
 Eligibility:
 Educational institutions with adequate source of income
 Educational institutions run by trusts, private management
 Institutions should have necessary approval from the Government
 agencies to run the school
 Building construction/alteration/renovation should have a proper
 approval from local bodies
 The promoters/Trustees/key persons of the school should be
persons of good standing in the society.

Interest Rate:

Loan amount Interest rate

Rs. 2, 00, 000 9 . 25 %

Between Rs. 2 lakhs & 5 lakhs 10 . 25 %

Between Rs. 5 lakhs & 25 lakhs 10 . 00 %

 State Bank of India Caters to the needs of agriculturists and landless
agricultural labourers through a network of 8750 rural and semi-urban branches.
Apart from the branches, there are 428 Agricultural Development Branches
(ADBs) which also cater to agriculturists. They are the leaders in agri finance in
the country with a portfolio of Rs. 64,000 crs in agri advances covering around 80
lakhs accounts.

State Bank of India's branches have covered a whole gamut of

agricultural activities like crop production, horticulture , plantation crops, farm
mechanization, land development and reclamation, digging of wells, tube wells
and irrigation projects, forestry, construction of cold storages and godowns,
processing of agri-products, finance to agri-input dealers, allied activities like
dairy , fisheries, poultry, sheep-goat, piggery refurbished second hand tractors,
loans against pledge of warehouse receipts, loans against produce stored by the
farmer at his own premises, loans against book debts of Arthias, mulberry
cultivation, rearing of silk worms and grainages. Infact Bank can cover any other
agricultural related activities undertaken.

State Bank of India are setting up Agri Commercial Branches (ACBs)

which will handle high value agri financing involving large investments. It
envisages lending through corporate partnerships and other large enterprises for
commodity financing, investment credit, other high value agriculture segments
like horticulture, floriculture & food processing etc. It also focuses on Agri related
SME including setting up of Rice and Dhal mills, seed processing industry, food
processing industry, large and small scale dairy units, etc.
5. Agricultural Loan

SBI LOAN – RURAL BANKING

Agricultural finance
 Agricultural gold loan

 Kisan credit card

 Produce marketing loan

 Land purchase scheme

 Land development scheme

 Agricultural Crops loan

 Scoring model for tractor loan

5.1 Agricultural Gold Loans
Purpose:
Bank extends hassle free finance to farmers / agriculturists against Gold
Ornaments / gold wares to increase their liquidity to meet crop production
expenses, Investment expenses related to agriculture and / or allied agricultural
activities.

Eligibility
Any person engaged in agriculture or allied activities as well as persons engaged
in activities permitted to be classified under agriculture.

Quantum of Loan
Up to 70% of the value of the ornaments .Value will be as advised by the bank to
the branches periodically.

Security
Pledge of gold ornaments.

How do you repay

Credit / Overdraft: Like KCC, it is a running account for a period of 3 years.

Demand Loan / Term Loan :

The repayment period of the loan should be fixed so as to coincide with the
harvesting and marketing season / generation of income from the activity,
allowing 2 to 3 months time after harvesting to market the produce and realize
the proceeds. However, the total period will not generally exceed one year from
the disbursement of the loan in the case of short-term loan / production credit
and 36 months in other cases.
5.2 Kisan Credit Card (KCC)

Purpose:
To provide timely and adequate credit to farmers to meet their production credit
needs(cultivation expenses) besides meeting contingency expenses, and
expenses related to ancillary activities through simplified procedure facilitating a
ailment of the loans as and when needed.

Who are eligible for the loan?

 Owner cultivators, tenant cultivators and Share croppers.
 Agricultural borrowers having good track record for the last 2
years (i.e., Maintaining standard loan accounts).
 Creditworthy new borrowers can also be financed.

Loan amount
 Loan amount is based on operational land holding ,cropping pattern
and ancillary and contingency needs of the farmer for the full year
 100% of the cultivation cost available as loan upto Rs 50000/ and 85 % of
the cost as loan above Rs 50000/. Expenses to meet important ancillary
activities to production can also be financed in addition to the above The
total limit is inclusive of 20% of production credit, which includes crop
production expenses and working capital for allied agricultural activity,as
contingency credit /consumption loan.

Disbursement of the Loan

As per the cultivation requirements of the crop, the loan will be disbursed in cash
.
Security

Loan amount up to Rs 50000 Hypothecation of Crops

Above Rs 50000/ up to Rs 100000 (1) Hypothecation of crops.

(2) Mortgage of land or third party
guarantee *

Above Rs 100000/
(1) Hypothecation of crops
(2) Mortgage of lands

*For loans up to Rs 1 lakhs to farmers having legal ownership of agricultural

lands with good rack record for last 2 years, no collateral is required

How do you repay

It is a revolving cash credit limit with any number of withdrawals and repayments
and Limit is valid for 3 years.
5.3 Produce Marketing Loan
Purpose:
 To help farmers avoid distress sale of their produce
 To enable prompt repayment of crop loan dues and provide liquidity to
farmers to meet contingency needs.
 To offer the facility of loan against the stocks stored in farm houses,
in addition to loan against warehouse receipts.

Who are eligible for the loan?

1. All non-defaulter borrowers of our branches, who can store the produce
either in their own farm/premises itself or in a Warehouse / cold storage.
2. Crop loan borrowers of other Bank‘s and also Non-Borrower Farmers,
who store their produce/ stocks in a Warehouse / cold storage.

Loan amount:
60 to 80% of value of produce depending upon the place of storage subject to a
maximum of Rs.10 lakhs.

Documents you need to produce:

Stock statement for valuation and evidence of stocks at your residence/ godown
Warehouse receipt, duly endorsed , if stocked at warehouse.

Security :
1. Loan sanctioned against goods stored in Farmer’s godown:
Primary : Hypothecation of stocks.
Collateral : Mortgage / Charge over Land or Third Party guarantee for loans
\above Rs. 50,000/-.
2. Loans sanctioned against Warehouse Receipts (WHR) :
Primary : Pledge of stocks.
Collateral : No collateral is required for loans up to the maximum permitted
limit of Rs.10 lakhs under the scheme.

Disbursement:
After liquidating the crop loan ,surplus will be disbursed in cash.

How to repay?
Loan has to be repaid within a maximum period of 12 months depending upon
the crop.
5.4 Land Purchase Scheme
Purpose:
To assist Small & Marginal farmers and landless agricultural labourers for
purchase of Land, who are our existing borrowers to consolidate land holdings &
development of Wasteland & fallow lands.

Who are eligible?

 Small & Marginal Farmers owning less than 5 acres of un irrigated / 2.5
acres of irrigated land in their own names , landless agricultural labourers.
 The borrowers should have a record of prompt repayment of the loan
for at least two years.
 Good borrowers of other Banks are also eligible provided they
liquidate their Outstanding to other banks.

Loan amount:
Loan may be considered for:
 Cost of land
 Provision of irrigation facilities & land development (shall not exceed 50%
of the cost of the land).
 Purchase of farm equipments.
 Registration charges & stamp duty.
Loan amount will be 85 % of the cost of the land, as assessed by the bank,
subject to the maximum of Rs 5 lakhs

Security
Mortgage of land to be purchased
How to repay the loan
Max. 9-10 years beginning after the expiry of gestation period, with half-yearly
installments.. .Gestation period will be maximum of 1 year for the developed land
and 2years for the land to be developed..
5.5 Scoring Model For Tractor Loan
Purpose:
Agricultural term loans are sanctioned for purchase of new tractors,
accessories and implements

Who are eligible for tractor loan?

Agriculturists (individually or jointly ) and Persons offering security like NSCs,
KVPs, the Bank‘s Fixed Deposits, surrender value of LIC policy, gold ornaments
etc. to cover more than 60% of the loan amount are eligible for the loan .The
applicants should score minimum score of 40 under the Scoring model of the
bank.

Loan amount:
Up to 95 % of the cost of the Tractor, trailer and accessories. (Depending on
the scores in the scoring model).The cost includes the Registration charges and
insurance premium not exceeding Rs 15,000/-. Additional loan equal to 10% of
tractor loan for repairs may be provided for at the time of sanction. Bank will
finance only for those models of tractors which have completed the commercial
test from organizations viz. Central Farm Machinery Training and Testing
Institute (CFMTTI) Budni (Madhya Pradesh) or Farm Machinery Training and
Testing Institute (FMTTI), Hissar

Security:
1. Hypothecation of the tractor, accessories and implements. Noting of
Bank‘s hypothecation charge in the RC Book of the tractor is compulsory
in all the cases.
2. Collateral Security like NSCs, KVPs, Banks Fixed Deposits ,Surrender
value of LIC policy etc OR Mortgage of agricultural lands .However no
collateral security is required, if the score is 70 and above on the
scoring model of the bank
How to repay the loan
 Within a maximum period of 9 years, including a grace period not
exceeding 12 months.
 The installments shall be payable half-yearly / yearly, coinciding with the
harvesting and marketing period of the crops proposed to be grown by you

.
5.6 Scheme for financing seed processors

Purpose:
To extend financial assistance to the seed processors against their
receivables due to them from the seed growers.

Who are eligible?

Seed processors / units
 Enjoying good reputation & credit worthiness.
 Holding a valid license from the concerned State Department of Industries
for Installation of Seed Processing Plant.
 Having valid certificate from Seed Certification Department.
 Doing business for the last 3 years.
 Having receivables from the farmers.
 Who have posted profits during the past two years of operation are eligible
to avail credit limits under the scheme.

Loan amount:
60 % of the value of the receivables. Minimum Rs 2.00 lacs. No upper limit

Security:
(1) Assignment/hypothecation of receivables from the farmers.
(2) Equitable mortgage of residential/ commercial property worth 1.5 times of the
Limit sanctioned belonging to either the applicant or the guarantor.

How to repay the loan?

Loan to be liquidated within a maximum period of 6 months for each crop season
i.e., Rabi & kharif.
 CONCLUSION
State Bank of India, a major public sector bank in India, is providing a host of
loan products to cater to the various needs of the customers. State Bank of India
loans come with truly affordable rates and flexible repayment terms. The terms
and conditions are excellent and have been designed to suit the borrowers‘
needs. Loan programs are available from State Bank of India to meet the
requirements of individual customers, corporate clients, small and medium
enterprises, Non resident Indians, export and import businesses and
agriculturists.
 BIBLIOGRPY
While working on this project, I have done some research work from the
following text books

 Credit Management
 Financial Service Management

News-paper

 DNA

 Hindustan Time

Various Websites were also visited such as,

 http://www.sbi.co.in
 http://www.google.com