A STUDY ON HOME LOANS OF ICICI BANK

BYP.SIVA REDDY

ENROLL. NO- 5NB -11043

MBA-2005-2007INC-GUNTUR

UNDER THE GUIDENCE OF

COMPANY GUIDE FACULTY GUIDEMr. BHARAT CH. HYMAVATHIICICI BANK LTD INCBEGUMPET, HYD GUNTUR

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DECLARATION

I hereby declare that this project work entitled “A study on Home

loans of ICICI Bank is my work, carried out under the guidance of my

faculty guide Ms. CH. HYMAVATHI and my company guide Mr.

BHARAT. This report neither full nor in part has ever been submitted for

award of any other degree of either this university or any other university.

(P. SIVA REDDY)

Roll no.5nb – 11043

INC GUNTUR

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CERTIFICATE

This is to certify that the Summer Internship Project titled “A study on

HOME LOANS OF ICICI BANK”, a bonafide work of P. SIVA REDDY

is original and has been done under my supervision in partial fulfillment of

the requirement for the award of M.B.A for the period of four months from

15, April 2007 to 15, August 2007. This report neither full nor in part has

ever before been submitted for awarding of any degree of either this

university or any other university. I am pleased to say that his performance

during the period was extremely satisfactory.

Company Guide Faculty Guide

Mr. BHARAT Ms. HYMAVATHI

ICICI Bank ltd INC faculty member

Hyderbad Guntur

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LETTER OF APPRECIATION

ICICI Bank Ltd

Adj: Airport line,

Begumpet,

HYDERABAD

This is to certify that Mr. P. Siva Reddy pursuing MBA (2005 –

2007) From ICFAI National College – Guntur has successfully

completed his project “ A study on Home Loan products of ICICI

Bank” from 15th April 2007 to 15th August 2007. We appreciate his

commitment, Determination and performance during the project and

bound to be valuable asset for any organization.

I am pleased to say his performance and Sincerity at work during

the period was Good.

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ACKNOWLEDGEMENT

It gives me immense pleasure to express my deep sense of

gratitude to Mr. C.UDAY KUMAR, Coordinator, ICFAI National College

GUNTUR, for his valuable guidance and consistent supervision through out

the course.

I am also thankful to Mr. Bharat sir, my Company Guide

of ICICI BANK , Hyderabad, for his valuable guidance for preparing the

Final Report and also for providing the necessary facilities.

I am extremely thankful to Ms. Ch. Hymavathi Faculty Guide and

Sr. Faculty member of ICFAI National College, for her timely guidance and

support through out the Final Report work. In the course of carrying out the

project work.

Finally I am indebted to our other faculty members, my friends and my

parents who gave their full-fledged co-operation for successful completion

of my project.

It was a indeed a learning experience for me.

NAME OF THE STUDENT : P. SIVA REDDY

ENROLLMENT NO : 5NB12043

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Executive Summary

This Report is an attempt to provide a detailed analysis of the process

to get a home loan and the requirements to get a loan in ICICI Bank.

In my complete student internship program I met more than 40

customers and promoted ICICI Bank home loan products. During this

student internship program I came to know that most of the people r

showing to take a home loan but they are so confused what the necessary

requirements to get a loan.

However, my survery suggests that maximum number of people are

interested to take a loan but all are not aware of the products and the

process.. Employees and Business people are already taken home loans to

meet their financial requirements to construct a home ..

In my survey I found that 80% of people do not know how to get a

loan in a bank

Finally, creating awareness is very important to get good profits to the

company as well as to build good brand image in the minds of customers.

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Contents

Indian banking system 8

ICICI Company profile 15

Project 22

Findings 48

Recommendations 49

Conclusion 50

On the job training 51

Objectives 52

Targets 53

Achievements 54

Limitations 56

Learning 57

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INDIAN BANKING SYSTEM

BANKS IN INDIA

India has a well developed banking system. Most of the banks in India

were founded by Indian entrepreneurs and visionaries in the pre-

independence era to provide financial assistance to traders, agriculturists and

budding Indian industrialists. Indian banks have played a significant role in

the development of Indian economy by inculcating the habit of saving in

Indians and by lending finance to Indian industry.

The commercial banking structure in India consists of: Scheduled

Commercial Banks and Unscheduled Banks. Scheduled commercial Banks

constitute those banks, which have been included in the Second Schedule of

Reserve Bank of India (RBI) Act, 1934.

RBI includes only those banks in this schedule, which satisfy the

criteria laid down vide section 42 (6) (a) of the Act.

Indian banks can be broadly classified into nationalized banks/public sector

banks, private banks and foreign banks.

FOREIGN BANKS IN INDIA

Foreign banks have brought latest technology and latest banking

practices in India. They have helped made Indian Banking system more

competitive and efficient. Government has come up with a road map for

expansion of foreign banks in India.

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The road map has two phases. During the first phase between March

2005 and March 2009, foreign banks may establish a presence by way of

setting up a wholly owned subsidiary (WOS) or conversion of existing

branches into a WOS. The second phase will commence in April 2009 after

a review of the experience gained after due consultation with all the stake

holders in the banking sector. The review would examine issues concerning

extension of national treatment to WOS, dilution of stake and permitting

mergers/acquisitions of any private sector banks in India by a foreignbank.

Major foreign banks in India are:

ABN-AMRO Bank

Abu Dhabi Commercial Bank Ltd.

American Express Bank Ltd

BNP Paribas

Citibank

DBS Bank Ltd

Deutsche Bank

HSBC Ltd

Standard Chartered Bank

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Nationalized Banks in India

Banking System in India is dominated by nationalized banks. The

nationalization of banks in India took place in 1969 by Mrs. Indira Gandhi

the then prime minister. The major objective behind nationalization was to

spread banking infrastructure in rural areas and make available cheap

finance to Indian farmers. Fourteen banks were nationalized in 1969. These

Banks were

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

India. SBI was nationalized in 1955 under the SBI Act of 1955.

The second phase of nationalization of Indian banks took place in the

year 1980. Seven more banks were nationalized with deposits over

200crores.

List of Public Sector Banks in India is as follows:

Allahabad Bank

Andhra Bank

Bank of Baroda

Bank of India

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Bank of Maharashtra

Canara Bank

Central Bank of India

Corporation Bank

Dena Bank

Indian Bank

Indian Overseas Bank

Oriental Bank of Commerce

Punjab and Sind Bank

Punjab National Bank

State Bank of Bikaner & Jaipur

State Bank of Hyderabad

State Bank of India (SBI)

State Bank of Indore

State Bank of Mysore

State Bank of Patiala

State Bank of Saurashtra

State Bank of Travancore

Syndicate Bank

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UCO Bank

Union Bank of India

United Bank of India

Vijaya Bank .

Private Banks in India

All the banks in India were earlier private banks. They were founded in

the pre-independence era to cater to the banking needs of the people. But

after nationalization of banks in 1969 public sector banks came to occupy

dominant role in the banking structure. Private sector banking in India

received a filip in 1994 when Reserve Bank of India encouraged setting up

of private banks as part of its policy of liberalization of the Indian Banking

Industry. Housing Development Finance Corporation Limited (HDFC) was

amongst the first to receive an 'in principle' approval from the Reserve Bank

of India (RBI) to set up a bank in the private sector.

Private banks have played a major role in the development of Indian

banking industry. They have made banking more efficient and customer

friendly. In the process they have jolted public sector banks out of

complacency and forced them to become more competitive.

Major private banks in India are:

Bank of Rajasthan

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Bharat Overseas Bank

Catholic Syrian Bank

Centurion Bank of Punjab

Dhanalakshmi Bank

Federal Bank

HDFC Bank

ICICI Bank

IDBI Bank

IndusInd Bank

ING Vysya Bank

Jammu & Kashmir Bank

Karnataka Bank

Karur Vysya Bank

Kotak Mahindra Bank

SBI Commercial and International Bank

South Indian Bank

United Western Bank

UTI Bank

YES Bank

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If there is one industry that has the stigma of being old and boring, it

would have to be banking; however, a global trend of deregulation has

opened up many new businesses to the banks. Coupling that with

technological developments like Internet banking and ATMs, the banking

industry is obviously trying its hardest to shed its lackluster image.

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COMPANY PROFILE

ICICI Bank is India's second-largest bank with total assets of about

Rs.1,676.59 bn(US$ 38.5 bn) at March 31, 2005 and profit after tax of Rs.

20.05 bn(US$ 461 mn) for the year ended March 31, 2005 (Rs. 16.37

bn(US$ 376 mn) in fiscal 2004). ICICI Bank has a network of about 573

branches and extension counters and over 2,000 ATMs. ICICI Bank offers a

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

customers through a variety of delivery channels and through its specialised

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

life insurance, venture capital and asset management. ICICI Bank set up its

international banking group in fiscal 2002 to cater to the cross border needs

of clients and leverage on its domestic banking strengths to offer products

internationally. ICICI Bank currently has subsidiaries in the United

Kingdom, Canada and Russia, branches in Singapore and Bahrain and

representative offices in the United States, China, United Arab Emirates,

Bangladesh and South Africa.

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

Exchange and the National Stock Exchange of India Limited and its

American Depositary Receipts (ADRs) are listed on the New York Stock

Exchange (NYSE).

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ICICI Bank was originally promoted in 1994 by ICICI Limited, an

Indian financial institution, and was its wholly-owned subsidiary. ICICI's

shareholding in ICICI Bank was reduced to 46% through a public offering of

shares in India in fiscal 1998, an equity offering in the form of ADRs listed

on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura

Limited in an all-stock amalgamation in fiscal 2001, and secondary market

sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002.

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

Government of India and representatives of Indian industry. The principal

objective was to create a development financial institution for providing

medium-term and long-term project financing to Indian businesses.

In the 1990s, ICICI transformed its business from a development

financial institution offering only project finance to a diversified financial

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

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

ICICI become the first Indian company and the first bank or financial

institution from non-Japan Asia to be listed on the NYSE.

After consideration of various corporate structuring alternatives in the

context of the emerging competitive scenario in the Indian banking industry,

and the move towards universal banking, the managements of ICICI and

ICICI Bank formed the view that the merger of ICICI with ICICI Bank

would be the optimal strategic alternative for both entities, and would create

the optimal legal structure for the ICICI group's universal banking strategy.

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The merger would enhance value for ICICI shareholders through the

merged entity's access to low-cost deposits, greater opportunities for earning

fee-based income and the ability to participate in the payments system and

provide transaction-banking services.

The merger would enhance value for ICICI Bank shareholders through

a large capital base and scale of operations, seamless access to ICICI's

strong corporate relationships built up over five decades, entry into new

business segments, higher market share in various business segments,

particularly fee-based services, and access to the vast talent pool of ICICI

and its subsidiaries. In October 2001, the Boards of Directors of ICICI and

ICICI Bank approved the merger of ICICI and two of its wholly-owned

retail finance subsidiaries, ICICI Personal Financial Services Limited and

ICICI Capital Services Limited, with ICICI Bank. The merger was approved

by shareholders of ICICI and ICICI Bank in January 2002, by the High

Court of Gujarat at Ahmedabad in March 2002, and by the High Court of

Judicature at Mumbai and the Reserve Bank of India in April 2002.

Consequent to the merger, the ICICI group's financing and banking

operations, both wholesale and retail, have been integrated in a single entity.

*Free float holding excludes all promoter holdings, strategic

investments and cross holdings among    public sector entities.

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Deposits

ICICI Bank offers wide variety of Deposit Products to suit your

requirements. Coupled with convenience of networked branches/ ATMs and

facility of E-channels like Internet and Mobile Banking, ICICI Bank brings

banking at your doorstep. Select any of our deposit products and provide

your details online and our representative will contact you for Account

Opening.

ICICI Bank offers you a power packed Savings Account with a host of

convenient features and banking channels to transact through. So now you

can bank at your convenience, without the stress of waiting in queues.

We understand that as you reach the age to retire, you do have certain

concerns … whether your hard earned money is safe and secure … whether

your investments give you the kind of returns that you need. That's why we

have an ideal Banking Service for those who are 60 years and above. The

Senior Citizen Services from ICICI Bank has several advantages that are

tailored to bring more convenience and enjoyment in your life.

It's really important to help children learn the value of finances and

money management at an early age. Banking is a serious business, but we

make banking a pleasure and at the same time children learn how to manage

their personal finances Safety, Flexibility, Liquidity and Returns! A

combination of unbeatable features of the Fixed Deposit from ICICI Bank.

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When expenses are high, you may not have adequate funds to make big

investments. But simply going ahead without saving for the future is not an

option for you. Through ICICI Bank Recurring Deposit you can invest small

amounts of money every month that ends up with a large saving on maturity.

So you enjoy twin advantages- affordability and higher earnings.

Investments

At ICICI Bank, we care about all your needs. Along with Deposit

products and Loan offerings, ICICI Bank assists you to manage your

finances by providing various investment options ranging from ICICI Bank

Tax Saving Bonds to Equity Investments through Initial Public Offers and

Investment in Pure Gold. ICICI Bank facilitates following investment

products:

ICICI Bank Tax Saving Bonds

Government of India Bonds

Investment in Mutual Funds

Initial Public Offers by Corporates

Investment in "Pure Gold"

Foreign Exchange Services

Senior Citizens Savings Scheme, 2004

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You can invest in above products through any of our branches. For

select products ICICI Bank also provides the ease of investing through

electronic channels like ATMs and Internet (ICICIdirect.com).

Cards

ICICI Bank offers a varied range of cards to suit your requirements.

These cards having a wide acceptance, nationally and internationally,

coupled with benefits of channels like Internet and Mobile, will enhance

your experience.

ICICI Bank Credit Cards give you the facility of cash, convenience and

a range of benefits, anywhere in the world. These benefits range from life

time free cards, Insurance benefits, global emergency assistance service,

discounts, utility payments, travel discounts and much more.

The ICICI Bank Debit Card is a revolutionary form of cash that allows

customers to access their bank account around the clock, around the world.

The ICICI Bank Debit Card can be used for shopping at more than 100,000

merchants in India and 13 million merchants worldwide.

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DIFFERECT LOANS PROVIDED BY ICICI BANK

ICICI Bank offers wide variety of Loans Products to suit your

requirements.Coupled with convenience of networked branches/ ATMs and

facility of E-channels like Internet and Mobile Banking, ICICI Bank brings

banking at your doorstep. Select any of our loan product and provide your

details online and our representative will contact you for getting loans.

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PROJECT

A STUDY ON HOME LOANS WITH REFFERENCE TO ICICIC BANK

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HOME LOAN PRODUCTS OF ICICI BANK

ICICI Bank home loan provide not just the most competitive interest

rates & best level of service, but also products designed to cater to the

specific needs of consumer. New products / New features in existing

products are introduced based on customer feedback. Choose the ICICI

Bank Home Loan that suits your needs.

Home Loans

Home Loans are provided to individuals to own a residential property.

ICICI Bank offers easy home loans for

First Purchase in ready construction

Under construction property

Purchase in re-sale

Self construction & extension of existing living space

The following are the features of ICICI Bank Home Loans

Home loan amount can be chosen to suit specific needs

One can avail of a loan up to 85% of Cost Of Property

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Conveniently pay off the loan over a period of upto 25 years

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

rate of Interest or at the combination of both Fixed & Floating rates

Faster repayment as principal repayment in on monthly rest.

Eligibility Norms for Home Loans .

Home Loans can be availed by Resident Indian whether Salaried or Self-

Employed and also by Non- Resident Indian who are Salaried. For resident

Indians the following are the eligibility norms

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

The loan must terminate before or when you turn 65 years of age or before retirement, whichever is earlier.

You must be employed or self-employed with a regular source

of income.

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Land Loan

Land loans give an opportunity for individual customer to purchase a

residential plot of land to do self- construction. Thus, customer can invest

now in a plot of land & build in future. The Land loan can be financed only

within municipal limits or in case of direct allotment outside municipal

limits by DA.

Land Loan can be availed by Resident Indian whether Salaried or Self-

Employed and also by Non- Resident Indian.

Home Improvement Loans

Home Improvement Loan is offered to facilitate improvement of a self

owned dwelling unit to existing or new customer. HIL considers a range of

facilities internal or external to the structure without increase in the living

pace. Thus, a customer can add or improve facilities to his dwelling unit

with a loan at Home Equity Loan rate of interest

Home Improvement Loan can be availed by Resident Indian whether

salaried or Self-Employed.

 

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Office premises loans:

Office Premises Loan can be used for purchase, construction, extension

& also for improvement (at the time of acquisition of office premises). It

creates an opportunity to extend loans to self employed individuals to house

their profession or business giving a permanent address for generating

steady flow of income. The product can also include the estimate of

renovation at the time of purchase of the property. This loan is especially

meant for self-employed professionals like Doctors, Architects etc.

Home Loans can be availed by Resident Indian who are Self-Employed and

also by Non- Resident Indian who are Salaried.

EMI under construction:

EMI Under Construction is offered for structuring a home loan to enable

individuals to commence his EMI in a partly disbursed under construction

project. Commencement of EMI ensures re-payment towards principal

amount leading to savings in interest and faster repayment of the loan. The

EMI paid is as per the sanctioned loan amount and remains constant during

the tenure of the loan. The tenure of the loan keeps moving up with

additional amount being disbursed.

EMI under Construction can be availed by Resident Indian whether Salaried

or Self-Employed and also by Non- Resident Indian.

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Balance transfer:

Balance Transfer is a facility offering the customer a choice to transfer the

outstanding balance of the loan availed for better terms & conditions.

Balance Transfer helps to move from higher rate of interest to lower rate of

interest or increase in loan component as Top up. BT is possible only from

loans taken from HFCs approved by NHB for refinance, Banks or employer

Loans taken from Central or State Government.

Balance Transfer can be availed by Resident Indian whether Salaried or

Self-Employed

Money saver:

Money Saver account is a home loan account with transaction facility. The

account holder can deposit & withdraw to the extend of balance maintained.

On the commencement of EMI the interest will be calculated on the

outstanding debit balance. Thus, the home loan account holder maintaining

large balance in the Money Saver account can save on the interest paid by

faster repayment. This means one can pay less & repay loan faster.

This product can be offered only in case of first and final disbursement –

Part disbursement cases cannot be offered this product. MoneySaver would

be available at Floating Rates only & Fixed EMI per lac per month would be

applicable . IT certificate in the case of MoneySaver is not issued.

Money Saver can be availed by Resident Indian whether Salaried or Self-

Employed

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Topup loan:

Top Up Loan can be availed time and again for various personal requirement

based on value of the property. It offers the customer additional funds

against the security of the same property. To avail Top Up loan , the vintage

of atleast six months is required for the loan availed. The basic eligibility

emerges with good repayment track record. The end use letter is essential to

be collected.

The End use of Top Up Loans can be

Furnishing of home

Consumer durable

Child’s education

Daughter’s marriage

Family holiday

Vehicle

Any other personal requirement of the borrower provided it is not

speculative or illegal in nature

This product is applicable to fully disbursed cases with no post-

disbursement document pending

This product is priced more than base home loan rates but lower than any

personal loan rates .

Top Up Loan can be availed by Resident Indian whether Salaried or Self-

Employed.

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Loan on phone:

Loan On Phone is a pre sanctioned loan. Its is based on the existing

relationship of the customer with ICICI Bank. The biggest advantage is that

the customer can get the loan with minimum documentation. Good banking

transactions and repayment records becomes a strength for availing loans in

future.

Loan on Phone can be availed by Resident Indian whether Salaried or Self-

Employed

Home equity loan:

Loan against property gives the owner of residential or commercial premises

to leverage on the value of the property. It offers the ability to unlock funds

gives the advantage of looking at the asset as a source of security bringing

liquidity and retaining ownership.

In case of HEL the property should be self occupied by one of income

considered applicants. The security of the property ensures competitive rate

of interest . The interest component of the EMI paid by SEP / SENP can be

booked as expenses in their P & L

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Home Equity Loans are provided for many personal requirements of the

customer viz. –

Marriage

Child Education

Business

Purchase of Property (Where mortgage is not possible)

Improvement of Property

Medical Treatment

Home Equity Loans can be availed by Resident Indian who are Self-

Employed and also by Non- Resident Indian who are Salaried.

Property overdraft:

The overdraft facility from ICICI Bank allows you to borrow money against

your self occupied property. The overdraft facility comes with a multi-city

cheque book and phone banking facility. The customer is charged interest

only for the amount that he withdraws from the account. Whenever he

deposits funds into the account, they go towards reducing the outstanding

balance in the account.

It offers the following benefits:-

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Generating capital against property (R ) or ( C) for business or

personal use

Convenience of Pre - Sanctioned limit and draw as you need

Pay interest on the amount drawn and for days utilized

Convenience of depositing & withdrawing like any Current

Account

Benefit of Cheque Book & Phone banking

Fast Processing and door-step service

Multi-city cheque book and phone banking facility

Property Overdraft can be availed by Resident Indian who are Self-

Employed

Lease rental discounting:

Lease Rental Discounting helps to raise funds against the future expected

rentals of self owned commercial property. The property should be occupied

by the Lessee. Similar to Home Equity Loans, LRD can be provided for any

personal requirements of the customer viz. –

Marriage

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Child Education

Business

Purchase of Property (Where mortgage is not possible)

Improvement of Property

Medical Treatment

Lease Rental Discounting can be availed by Resident Indian whether

Salaried or Self-Employed

Loan amount:

Factors affecting your Loan Amount

ICICI home loans bring to you a home loan power-packed with

numerous facilities making it the perfect home finance option for you.

You can get a home loan suited to your needs. The home loan amount

depends on your repayment capability and is restricted to a maximum of

85% of the cost of the property or the cost of construction as applicable.

Repayment capacity takes into consideration factors such as income, age,

qualifications, number of dependants, spouse's income, assets, liabilities,

stability, continuity of occupation and savings history.

A number of factors are taken into account when assessing your

repayment capacity. Your income, age, number of dependants,

qualifications, assets and liabilities, stability/ continuity of your employment

/ business are some of them.

However, there are ways by which you can enhance your eligibility.

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If your spouse is earning, put him/her as a co-applicant. The

additional income shall be included to enhance your loan

amount. Incidentally, if there are any co-owners they must

necessarily be co-applicants.

Did you know that your blood relater income can also be

considered for sanctioning the loan on your combined

income? The disbursement of the loan, however, will be done

only after you submit proof of your marriage.

Providing additional security like bonds, fixed deposits and

LIC policies may also help to enhance eligibility.

While there is no need for a guarantor, it could be that having one

might enhance your credibility with us. If so, our loan officer would provide

you with the necessary details.

The final amount to be sanctioned will depend on your repayment capacity.

However, what you ultimately are entitled to will have to conform within the

limits fixed for each loan.

Also, when the company looks at the total cost, registration charges, transfer

charges and stamp duty costs are included.

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Documents required for loan sanction

 

The leading home loan provider offers attractive interest rates and

unbeatable benefits to ensure that you get the best deal without any hassles.

Keeping your convenience in consideration, we ask you for minimal

mandatory documents for the sanctioning of your home loan.

At ICICI Bank we require the following documents to sanction your

home loan:

Sanction Documents

Duly Completed Application Form

Photograph

Fee cheque

Photo identity proof

Age proof

Signature verification proof

Residence address proof

Documents for salaried people

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Last three months salary slips

Form 16

Bank statements for last 6 months from salary account

Repayment track record of existing loans

Documents specific for Self Employed

Income Tax Return / Computation of Total Income / Auditors Report / Balance Sheet / Profit & Loss Account certified by Chartered Accountant for last 2 years (3 years for Home Equity) (both for business and personal of partners/directors)

Bank Statement for last 6 month from operating account

Repayment Track record of existing loans / Loan closure letter

Board Resolution in case of a company

Proof of existence

Office Address Proof

Photo Identity Proof, Residence Address Proof, Signature Verification is required to be provided for all the main partners / directors.

These are the documents required for sanctioning a loan. You may be

asked to submit further legal documents if required by ICICI Bank or its

approved lawyers. Do retain photocopies of all documents being submitted

by you.

Disbursement of your ICICI bank home loan

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We disburse the loan amount after you identify and select the property

or home that you are purchasing and submit the requisite legal documents.

While you may be under the impression that the list of documents asked

for is rather extensive, please note that it is for your own good. Each and

every single document asked for will be verified and checked to ensure your

safety.

This may take some time but we want to ensure a clear title and will

complete all the legal and technical verifications to ensure that you have full

rights to your home.

Your loan will be disbursed after you identify and select the property or

home that you are purchasing and on your submission of the requisite legal

documents.

The 230 A Clearance of the seller and / or 37I clearance from the

appropriate income tax authorities (if applicable) is also needed.

On satisfactory completion of the above, on registration of the

conveyance deed and on the investment of your own contribution, the loan

amount (as warranted by the stage of construction) will be disbursed by

ICICI Bank.

Disbursement Documents

Property documents (as per P&D for respective states and as asked by empanelled lawyers for individual cases)

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Facility Agreement

Disbursal Request Form

Cheque Submission

ECS or Auto Debit for ICICI Bank account holders or Post Dated Cheques for EMI

ECS or Auto Debit for ICICI Bank account holders or Post Dated Cheques for EMI

Personal Guarantor’s Documents (PG Form, Photograph, Identity Proof, Address Proof, Signature Verification and Income documents, if applicable)

In case of property is owned by a company

Memorandum of Entry

Form 8

NOC

Home Loan Interest Rates for Resident Indians

In  your  quest  of the  perfect  home  loan, ICICI Bank ensures that you

get the best deal, in terms of interest rate and other facilities also, in the most

convenient way. With our varied offering of house loans and home finance,

37

we give you an opportunity to select the perfect home loan as per your

needs. You can choose from:

Adjustable Rate Home Loan

Fixed Rate Home Loan

Combination of the above two

Step Up Repayment Facility (SURF)

SURF is a variant to enhance the eligibility of a young professionally

qualified home loan customer with out increasing monthly outflow as EMI.

The structuring consider a notional percentage increase in income & offers

options of graded increase in EMI over the tenure of the loan contracted.

The tenure is divided in three parts

Primary being lowest EMI

Secondary

Tertiary being highest EMI

The following are the features of SURF

Higher eligibility of loan amount with lower EMI

Graded increase in EMI considering future increase in Income

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Suited for young professionals.

SURF can be availed by Resident Indian whether Salaried or Self-

Employed Professionals.

Flexible Installment Plan (FLIP)

FLIP is a variant for structuring enhanced eligibility of home loan

applicants with varying tenure of income source. This repayment facility is

given when income is going to reduce after certain time during the loan

tenure due to one of the borrowers retiring before loan maturity. The EMI

payable becomes affordable based on individual income source and also

matching the family cash flow. This variant is offered typically to family

members joining as applicants like husband & wife or father & son with

varying tenure of service Period / Age norm.

FLIP has the following features

FLIP considers income of two applicants and offers step down

repayment facility

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One of the applicants should have service period till the end of

the tenure of the loan

FLIP would have two different EMIs during the tenure of the

loan

Normally the first EMI would be based on the combined

income

The second EMI would be smaller & based on the lower

income with longer tenure of the applicant

FLIP can be availed by Resident Indian whether Salaried or Self-

Employed and also by Non- Resident Indian who is Salaried.

Part Fixed, Part Floating

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A product that offers the dual benefit of fixed rate loans as well as floating

rate loans. With this product, a customer can book part of his loan under a

fixed rate plan and the other part under a floating rate plan. Thus, he can

minimize the impact of any adverse changes in the interest rate regimes and

at the same time, avail of any benefits that may come by way of favorable

changes.

Part Fixed, Part Floating can be availed by Resident Indian whether Salaried

or Self-Employed and also by Non- Resident Indian who is Salaried.

SmartFix Home Loans

3 years fixed and floating rate thereafter. A product that offers the

safety of fixed rates plus the advantages of floating rates. The Smart Fix

enables the customer to lock at fixed rate of interest today with the contract

to move to a floating rate on a subsequent date. For the first 3 years you get

a fixed interest rate. From the fourth year, your loan gets switched to the

prevailing floating interest rate. Thus, a customer gets an opportunity to

observe the interest rate movement over a period of time and expects to

benefit in the bargain

Smart Fix can be availed by Resident Indian whether Salaried or Self-

Employed.

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The interest rate on ICICI Bank Home Loans is linked to the ICICI

Bank Floating Reference Rate (FRR)/PLR. As per earlier communication,

FRR/PLR was increased by 1% on Feb 9th 2007. Consequently interest rate

for all existing customers under Adjustable Rate Home Loans (ARHL) also

went up by 1%. Subsequent to this change, as per recent announcement, the

FRR/PLR has been further increased by 1% effective from March 31st

2007.The FRR has gone up from 11.75% to 12.75%& PLR has gone up

from 13.75% to 14.75%. For all the Adjustable Rate Home Loan customers,

both the above changes will be effective from 1st April 2007.

 

 

What is the repayment tenure?

Repayment tenure is the tenure for the number of year for which the loan gets sanctioned. We offer you a wide range of options for the tenure of

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the loan. You can take a home loan for up to 25 years provided you do not reach the age of 65 years or retire within that period

 

How is the loan repaid?

All loan repayments are done via equated monthly installments (EMI).

 

 

What is an EMI?

An EMI refers to an equated monthly installment. It is a fixed amount

which you pay every month towards your loan. It comprises of both,

principal repayment and interest payment.

 

 

When does the repayment start?

EMI payments start from the month following the month in which the

full disbursement has been made.

 

 

How is the EMI paid?

The EMI is to be paid every month through post-dated cheques (PDCs)

or Electronic Clearing System (ECS)*. If you are opting for PDCs, then

you will have to provide 36 PDCs upfront. The PDCs are to be dated on the

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1st of every month. However, if you receive your salary a few days later, we

provide the flexibility of dating the cheques for the 10th of the month. In

case you have an ICICI Savings account you can also go in for the facility of

Auto Debit.

* ECS facility is available in selected cities only.

 

 

What if a PDC bounces?

In the case of a bounced cheque or delayed payment, charges and

outstanding dues will be charged as per the prevailing company policy. You

can replace old PDCs with new ones within 5 - 7 working days.

 

 

What is pre-EMI interest?

In the case of part disbursement of the loan, monthly interest is payable

only on the disbursed amount. This interest is called pre-EMI interest

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(PEMI) and is payable monthly till the final disbursement is made, after

which the EMIs would commence.

 

When do I pay PEMIs?

The first PEMI is payable by cheque by the end of the month in which the

disbursement is made and each subsequent PEMI at the end of every month

till the commencement of EMI. In case you have an ICICI Savings account

you can also go in for the facility of Auto Debit.

Application Process of your Home Loan

Your  search  for  the perfect  home  loan  ends  here  at ICICI bank

home loan, even before your have found the perfect property.

The moment you decide to buy a home, you can put in your application

for a home loan. Yes, you can apply for a home loan even before you have

selected the property.

The property need not even be in the same city where you are residing.

The only condition being that ICICI Bank has home loan operations in both

the cities.

Should there be a change in your financial status or plans, you can

withdraw your sanction within 6 months of approval of your home loan.

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However, we are always ready to assist our customers in the event of

legitimate problems. And, we might reconsider this if we find that there are

satisfactory reasons for the delay.

And, neither would we charge you extra for this delay.

If it is refinancing you are interested in, it is possible within 6 months

from the date of purchase of property.

 

Insurance Plans for your Home Loan

Introducing exclusive home loan insurance that can provide cover to

your Home loan in the face of any unforeseen event happening to your life.

In case of any of these happenings, your family will have the support of the

insurance cover to pay for the outstanding Home loan, without being

burdened by the loan EMI's.

Key Benefits of HomeSafePlus

No medical checkup

Comprehensive insurance plan for individual, home and its

contents

Single premium long-term insurance plan

Premium paid for the Critical Illness cover is eligible for tax

benefits u/s 80D of the Income Tax Act

Sum Insured remains constant throughout the policy period

(loan O/S amount to come to bank, rest goes to individual)

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Multiple applicants can be covered under the same loan

Simple application form

Key Benefits of HomeAssure/HealthAssure

Life Cover from HomeAssure for the entire home loan tenure

Critical Illness cover from life threatening illnesses like cancer,

coronary artery bypass, heart attack, kidney failure, stroke, major

organ transplant

Special non-medical limits only for ICICI Bank Home Loans

customers

Dual benefit to customers, Life Cover from HomeAssure and

Critical Illness Cover from HealthAssure

Dual tax benefits, Section 80C benefits under HomeAssure,

Section 80D benefits under HealthAssure

Simplified claim procedure

FINDINGS

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1. ICICI Bank having good brand image in the minds of customers.

2. Majority of the people got loans from ICICI Bank only

3. Most of the customers are not aware of the products of ICICI home

loans

4. Some of the customer’s felt that the interest rates are some what high

5. Some of the customer not having good faith on private banks

6. Most of the people are directly go to bank to apply a home loan

7. Some of the customer of ICICI already benefited through ICICI home

loan products and services

8. Customer awareness is medium about ICICI products.

9. ICICI providing good services to their customers.

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RECOMMENDATIONS

Create awareness: The Company has to take care of awareness

creation about the products and services among the customers.

Charges: The Company has to reduce the mortality and administration

charges.

The process is some what late to sanction a loan.

The company has to reduce their interest rates on home loan products

and services.

The company has to identify the potential customers.

Production promotion strategies should be improved.

Company should consider the present competition and should act

according to the customer needs.

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CONCLUSION

In my study we came to know that many peoples are

interested to take a home loan from ICICI bank to construct

their homes.

Home loans have long period when compare to other personal

loans and other loans. So peoples are confused to take a home

loan.

The interest rates also some what high when compare to other

banks.

Even though the interest rates are high peoples are willing to

take a loan from ICICI bank due to some reasons.

The loan sanction process is low when compare to other

banks.

For disbursement process is also it will take low time when

compare to other banks

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ON THE JOB TRAINING

INTODUCTION

My OJT is promoting ICICI home loan products and services I have

to promote the ICICI bank products and create awareness in the minds of

customers.

And I have to identify the potential customers, who are showing

interest to take home loan.

I have to convert them as ICICI customers. I have to collect all the

required documents to get a home loan from the customers.

I have submit all the documents to our technical team, these are the

people evaluate the property value.

I have to inform to the customers about their loan status.

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OBJECTIVES

The main objective of doing this project is to study the corporate culture

and creating awareness among the customers about home loan products of

ICICI bank. During this student internship program period I have to achieve

some thing which is helpful to the development of myself and some value

addition to the company. Generating business to the company is the main

objective. It gives me good exposure of myself and creating good impression

of corporate mind.

The main objective of this study is to know the Customers perceptions

about home loans of ICICI bank.

Generating good business to the company by promoting and selling

the products of ICICI.

.

To know the ideas of customers about home loan products and

services.

To get the knowledge about different loan products of ICICI Bank.

Creating awareness of ICICI Bank products in the minds of Walk-in

customers in the bank.

Fixing the appointments with the customers.

Visiting the customers and closing the deal.

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TARGETS/ TASKS

I have to approach the customer with in the bank and out side of the

bank also to promoting the products and services of ICICI. If he gets the

information about the product I have to take his mobile number and

appointment. After getting the leads I have to submit to the financial

consultants. With the guidance of financial consultants I have to generate

the business.

STRATEGIES

Followed strategies to achieve my Targets

1. Direct marketing

My OJT is promoting the home loan products of ICICI.By adopting

this strategy I can understand the ideas of customers and their investment

habits. If I know the ideas I can create better idea of our products. Direct

approach creates great awareness about the product and we can easily clarify

the doubts of customers.

2. Tele-marketing

This is the one of the strategy I am following to promote the product.

If once I got the phone number of the customer I can easily grab the

customer. Through Tele marketing I can convince the customer.

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3. Relationship marketing

It is also one of the best marketing strategy. Direct approach is only

belongs one customer. Through relationship marketing we can pinch the

product to many persons. If one customer got good faith on us. Then he will

promote the products to his friends and colleagues. It is also one of the best

strategies I am following.

ACHIEVEMENTS

I promoted ICICI Bank home loan products during my SIP period. I

have showing them as monthly wise as follows,

In The Month Of MAY

1st week Training class, for different home loan

products of ICICI

2nd week Training class on documents and

disbursement part

3rd week 4 leads

4th week 3 leads

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In The Month Of JUNE

1st week 6 leads

2nd week 3 leads

3rd week 4 leads

4th week 5 leads

In The Month Of JULY

1st week 5 leads

2nd week 7 leads

3rd week 1 lead

4th week 6 leads

In The Month Of August

1st week 5 leads

2nd week 2 leads

3rd week 3 leads

4th week 6 leads

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LIMITATIONS

1. The survey was confined to only certain parts of twin cities, which

Included walk-in customers of ICICI Bank and outsiders.

2. We don’t have sufficient knowledge to close all the deals.

3. Getting the prospective customers are very time consuming.

4. Time to explain the customer about the product inside branch is less.

5. Time Period of my OJT is one of the Limitation.

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LEARNINGS

Learning’s in the on the job training

1) Product knowledge of ICICI home loan products and services

2) The way to improve my communication skills.

3) The way to convince the customers.

4) The way to behave people in corporate world.

5) The way to adopt new strategies to attract customers.

6) The way to convince the people who do not trust private

organizations.

7) How people invest their money in different investment schemes.

.

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