A Summere Training Project ON Punjab National Bank "Home Loan"

A
SUMMERE TRAINING PROJECT

ON
PUNJAB NATIONAL BANK
“HOME LOAN”
Submitted to: Dr. B.R. Ambedkar University, Agra
In the partial fulfillment of the requirement for the degree

Of
Master of Business Administration
(Banking and Investment)
(2008-10)
Under the guidance of: Submitted by:

Mr. R.K. Verma Prashant Srivastava
(Chief Manager) M.B.A. (B.I.) – IIIrdSemester
Roll No. – 17
SETH PADAM CHAND JAIN INSTITUTE OF COMMERCE

BUSINESS MANAGEMENT & ECONOMICS
1 Prepared by: Prashant Srivastava

ACKNOWLEDGEMENT
T hi s repor t bear s t he i m pr i nt of m any per sons, who have

hel ped m e i n num er ous ways i n wr i t i ng t hi s r epor t . It gi ves
m e gr eat pl easur e i n pr esent i ng t hi s r eport t o t he Dr . B.R.
Am bedkar Uni ver si t y, Agr a vi a Set h Padam Chand Jai n
In st i t u t e of Com m erce Busi ness Managem ent &
Econ om i cs . I woul d l i ke t o t ake thi s oppor t uni t y t o ext end
my hear tf ul gr at i t ude to al l t hose who hel ped me in
pr esent i ng t hi s r epor t . Thei r cont r i but i on no m at t er bi g or
sm al l has cont r i but ed i m m ensel y towar ds com pl et i on of t hi s
r epor t .
I f al l shor t of wor ds t o expr ess my gr at it ude t o al l t he
r espondent s who gi ves m e t heir val uabl e t i m e and unbi ased
r esponses for m y quest i onnai r e of t hi s pr oj ect r epor t . I
acknowl edge m y deep sense of gr at i t ude t o MR. R.K . Verm a
( Ch i ef Man ager ) f or hi s gener ous gui dance & advi ce bef or e
& dur i ng t he cour se of t hi s wor k & al so i n anal yzi ng the
wor k.
I am al so ext r em el y gr at ef ul t o m y f acul t y m em ber s Mr .
P .N. Agar wal , Ms. Gunj an Di xi t and Ms. Swat i Mat hur , who
encour ages m e f or com pl et i ng m y pr oj ect r epor t . I am equal l y
t hankf ul t o Sr i . A.K. S axena ( Co- or di nat or ) .

My overr i di ng debt i s t o m y par ent s and m y si bl i ngs
who pr ovi de m e wi t h t he m or al suppor t & i nspi r at i on needed
t o pr epar e t hi s r eport .
PRASHANT SRIVASTAVA

PREFACE
Modern organizations are highly complex ad dynamics systems. They

operate under very turbulent social economic and political environment.
They are required to reconcile several incompatible goals. Conflicting roles
and divergent interest they are also fraught with the use risk and
uncertainties, hence tactful management of such organization to plan to
execute guide, coordination and control the performance of people to
achieve predetermined goals. Management has to keep the organization
vibrant moving and in equilibrium. It has to achieve goal which themselves
are changing it is therefore a problem highly complex and ticklish.
T hi s i nf or m at i on wi l l be asset t o m ar ket i ng m anager i n

m aki ng eff ect i ve deci si ons. The r esear ches ar e used t o
acqui r e and anal yse i nf or m at i on and to m ake suggest i ons t o
m anagem ent as t o how m ar ket i ng pr obl em s shoul d be sol ved.
T he m ar ket i ng resear ch i s t he pr ocess whi ch li nks t o
m anuf act ur er , deal er s and i ndi vi dual s thr ough inf or m at i on i n
i m por t ant par t of curr i cul um of M.B.A. pr ogr am m e i s pr oj ect
t aken by the st udent s t o inst i t ut e under whi ch he or she i s
st udyi ng, af t er com pl et i on of t hi r d sem est er of the
pr ogr am m e.
T he obj ect i ve of t hi s pr oj ect i s t o enabl e t he st udent s t o
under st and t he appl i cat i on of t he academ i cs i n t he real
busi ness l if e. I am f ul l y conf i dent t hat t hi s pr oj ect r epor t wi ll
be ext r em el y usef ul t o t he m anagem ent .

TABLE OF CONTENTS
Acknowledgement
Preface
CHAPTER 1: Overview of banking industry in India

CHAPTER 2: A Saga of Banking Excellence in Banking
(PUNJAB NATIONAL BANK)
CHAPTER 3: Performance of the PNB
CHAPTER 4: Organisational Structure
CHAPTER 5: Home Loan
CHAPTER 6: PNB Home Loan
CHAPTER 7: Suggestions & Troubleshooting Tips
CHAPTER 8: Bibliography

 TYPES OF BANKS
 BANKS IN INDIA

OVERVIEW OF BANKING INDUSTRY IN
INDIA
The major participants of the Indian financial system are the

commercial banks, the financial institutions (FIs), encompassing term-
lending institutions, investment institutions, specialized financial institutions
and the state-level development banks, Non-Bank Financial Companies
(NBFCs) and other market intermediaries such as the stock brokers and
money-lenders. The commercial banks and certain variants of NBFCs are
among the oldest of the market participants. The FIs, on the other hand, are
relatively new entities in the financial market place.
Bank of Hindustan, set up in 1870, was the earliest Indian Bank .

Banking in India on modern lines started with the establishment of three
presidency banks under Presidency Bank's act 1876 i.e. Bank of Calcutta,
Bank of Bombay and Bank of Madras. In 1921, all presidency banks were
amalgamated to form the Imperial Bank of India. Imperial bank carried out
limited central banking functions also prior to establishment of RBI. It
engaged in all types of commercial banking business except dealing in
foreign exchange.
Reserve Bank of India Act was passed in 1934 & Reserve Bank of
India (RBI) was constituted as an apex bank without major government
ownership. Banking Regulations Act was passed in 1949. This regulation
brought Reserve Bank of India under government control. Under the act,
RBI got wide ranging powers for supervision & control of banks. The Act
also vested licensing powers & the authority to conduct inspections in RBI

In 1955, RBI acquired control of the Imperial Bank of India, which was
renamed as State Bank of India. In 1959, SBI took over control of eight
private banks floated in the erstwhile princely states, making them as its
100% subsidiaries.
RBI was empowered in 1960, to force compulsory merger of weak
banks with the strong ones. The total number of banks was thus reduced
from 566 in 1951 to 85 in 1969. In July 1969, government nationalised 14
banks having deposits of Rs.50 crores & above. In 1980, government
acquired 6 more banks with deposits of more than Rs.200 crores.
Nationalisation of banks was to make them play the role of catalytic agents
for economic growth. The Narsimham Committee report suggested wide
ranging reforms for the banking sector in 1992 to introduce internationally
accepted banking practices.
The amendment of Banking Regulation Act in 1993 saw the entry of
new private sector banks.
Banking Segment in India functions under the umbrella of Reserve
Bank of India - the regulatory, central bank. This segment broadly consists
of:
Commercial; Banks
Co-operative Banks
Commercial Banks
The commercial banking structure in India consists of:
 Scheduled Commercial Banks
 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 in turn includes only those banks in this schedule which satisfy the
criteria laid down vide section 42 (60 of the Act. Some co-operative banks
are scheduled commercial banks albeit not all co-operative banks are. Being
a part of the second schedule confers some benefits to the bank in terms of
access to accomodation by RBI during the times of liquidity constraints. At

the same time, however, this status also subjects the bank certain conditions
and obligation towards the reserve regulations of RBI. This sub sector can
broadly be classified into:
1. Public sector
2. Private sector
3. Foreign banks.
CO-OPERATIVE BANKS
There are two main categories of the co-operative banks.
(a) Short term lending oriented co-operative Banks - within this
category there are three sub categories of banks viz state co-operative
banks, District co-operative banks and Primary Agricultural co-
operative societies.
(b) Long term lending oriented co-operative Banks - within the
second category there are land development banks at three levels state
level, district level and village level.
The co-operative banking structure in India is divided into following
main 5 categories: (Visit us again for details of each category)
1. Primary Urban Co-op Banks:
2. Primary Agricultural Credit Societies:
3. District Central Co-op Banks:
4, State Co-operative Banks:
5. Land Development Banks:

BANKS IN INDIA
s S. N. Public Sector Banks Private Sector Foreign Banks

Banks
1. Allahabad Bank Bank of Punjab Ltd. ABN-AMRO Bank N.V
2. Andhra Bank Centurion Bank Ltd. Abu Dhabi Commercial Bank Ltd
3. Bank of Baroda Development Credit Bank Ltd. American Express Bank Ltd.
4. Bank of India HDFC Bank Ltd. BNP Paribas
5. Bank of Maharashtra ICICI Bank Ltd. Citibank N.A
6. Canara Bank IndusInd Bank Ltd. DBS Bank Ltd
7. Central Bank of India Kotak Mahindra Bank Ltd. HSBC Ltd.
8. Corporation Bank UTI Bank Ltd. Standard Chartered Bank
9. Dena Bank Yes Bank Ltd
10. Indian Bank Bank of Rajasthan Ltd.
11 Indian Overseas Bank Dhanalakshmi Bank Ltd.
12. Oriental Bank of Commerce Federal Bank Ltd
13. Punjab and Sind Bank ING Vysya Bank Ltd.
14. Punjab National Bank Jammu and Kashmir Bank Ltd.
15. Syndicate Bank Karnataka Bank Ltd
16. UCO Bank Karur Vysya Bank Ltd
17. Union Bank of India Ratnakar Bank Ltd
18. United Bank of India SBI Commercial and
19. Vijaya Bank International Bank Ltd
20. IDBI Bank South Indian Bank Ltd
21. United Western Bank Ltd

 ABOUT PUNJAB NATIONAL BANK
 HISTORY OF PNB
 VISION & MISSION

A SAGA OF EXCELLENCE IN BANKING
Established in 1895 at Lahore, undivided India, Punjab National Bank

(PNB) has the distinction of being the first Indian bank to have been started
solely with Indian capital. The bank was nationalized in July 1969 along
with 13 other banks. From its modest beginning, the bank has grown in size
and stature to become a front-line banking institution in India at present
A professionally managed bank with a successful track record of over 110

years.
Largest branch network in India - 4668 Offices including 238 Extension

Counters spread throughout the country.
Strategic business area covers the large Indo-Genetic belt and the
metropolitan centres.
Ranked as 248th biggest bank in the world by Bankers Almanac, London.
Strong correspondent banking relationships with more than 217 international

banks of the world.
More than 50 renowned international banks maintain their Rupee Accounts

with PNB.
Well equipped dealing rooms; 20 different foreign currency accounts are

maintained at major centres all over the globe.

Rupee drawing arrangements with M/s UAE Exchange Centre, UAE, M/s
Al Fardan Exchange Co. Doha, Qatar, M/s Bahrain Exchange Co, Kuwait,
M/s Bahrain Finance Co, Bahrain, M/s Thomas Cook Al Rostamani
Exchange Co. Dubai, UAE, and M/s Musandam Exchange, Ruwi,
Sultanate of Oman.

ABOUT PUNJAB NATIONAL BANK
With over 38 million satisfied customers and 4668 offices, PNB has
continued to retain its leadership position among the nationalized banks. The
bank enjoys strong fundamentals, large franchise value and good brand
image. Besides being ranked as one of India's top service brands, PNB has
remained fully committed to its guiding principles of sound and prudent
banking. Apart from offering banking products, the bank has also entered the
credit card & debit card business; bullion business; life and non-life
insurance business; Gold coins & asset management business, etc.
Since its humble beginning in 1895 with the distinction of being the first
Indian bank to have been started with Indian capital, PNB has achieved
significant growth in business which at the end of March 2009 amounted to
Rs 3, 64,463 crore. Today, with assets of more than Rs 2, 46,900 crore, PNB
is ranked as the 3rd largest bank in the country (after SBI and ICICI Bank)
and has the 2nd largest network of branches (4668 including 238 extension
counters and 3 overseas offices).During the FY 2008-09, with 39% share of
low cost deposits, the bank achieved a net profit of Rs 3,091 crore,
maintaining its number ONE position amongst nationalized banks. Bank has
a strong capital base with capital adequacy ratio as per Basel II at 14.03%
with Tier I and Tier II capital ratio at 8.98% and 5.05% respectively as on
March’09. As on March’09, the Bank has the Gross and Net NPA ratio of
only 1.77% and 0.17% respectively. During the FY 2008-09, its’ ratio of
priority sector credit to adjusted net bank credit at 41.53% & agriculture
credit to adjusted net bank credit at 19.72% was also higher than the
respective national goals of 40% & 18%.

PNB has always looked at technology as a key facilitator to provide better
customer service and ensured that its ‘IT strategy’ follows the ‘Business
strategy’ so as to arrive at “Best Fit”. The bank has made rapid strides in this
direction. Along with the achievement of 100% branch computerization, one
of the major achievements of the Bank is covering all the branches of the
Bank under Core Banking Solution (CBS), thus covering 100% of it’s
business and providing ‘Anytime Anywhere’ banking facility to all
customers including customers of more than 2000 rural branches. The bank
has also been offering Internet banking services to the customers of CBS
branches like booking of tickets, payment of bills of utilities, purchase of
airline tickets etc. Towards developing a cost effective alternative channels
of delivery, the bank with more than 2150 ATMs has the largest ATM
network amongst Nationalised Banks.
With the help of advanced technology, the Bank has been a frontrunner in
the industry so far as the initiatives for Financial Inclusion is concerned.
With it’s policy of inclusive growth in the Indo-Gangetic belt, the Bank’s
mission is “Banking for card based technology enabled Financial Inclusion
with the help of Business Correspondents/Business Facilitators (BC/BF) so
as to reach out to the last mile customer. The BC/BF will address the
outreach issue while technology will provide cost effective and transparent
services. The Bank has started several innovative initiatives for marginal
groups like rickshaw pullers, vegetable vendors, diary farmers, construction
workers, etc. The Bank has already achieved 100% financial inclusion in
21,408 villages.
Backed by strong domestic performance, the bank is planning to realize its

global aspirations. In order to increase its international presence, the Bank

continues its selective foray in international markets with presence in Hong
Kong, Dubai, Kazakhstan, UK, Shanghai, Singapore, Kabul and Norway. A
second branch in Hong Kong at Kowloon was opened in the first week of
April’09. Bank is also in the process of establishing its presence in China,
Bhutan, DIFC Dubai, Canada and Singapore. The bank also has a joint
venture with Everest Bank Ltd. (EBL), Nepal. Under the long term vision,
Bank proposes to start its operation in Fiji Island, Australia and Indonesia.
Bank continues with its goal to become a household brand with global
expertise.
Amongst Top 1000 Banks in the World, ‘The Banker’ listed PNB at 250th
place. Further, PNB is at the 1166th position among 48 Indian firms making
it to a list of the world’s biggest companies compiled by the US magazine
‘Forbes’.

HISTORY OF PUNJAB NATIONAL BANK
1895- PNB established in Lahore by Lala Lajpat Rai.
1904- PNB established branches in Karachi and Peshawar.
1939- PNB acquired Bhagwan Dass Bank Limited.
1947- Partition of India and Pakistan at Independence. PNB lost its

premises in Lahore, but continued to operate in Pakistan.
1960- PNB amalgamated Indo-Commercial Bank Limited

(established in 1933) in a rescue.
1961- PNB acquired Universal Bank of India.
1963- The Government of Burma nationalized PNB's branch in
Rangoon (Yangon).
1965- After the Indo-Pak war the government of Pakistan seized all
the offices in Pakistan of Indian banks, including PNB's head
office, which may have moved to Karachi. PNB also had
branches in East Pakistan (Bangladesh).
1969- The Government of India nationalized PNB and 13 other

major banks on 19th July, 1969.

1978- PNB opened a branch in London.
1988- PNB acquired Hindustan Commercial Bank Limited in a

rescue.
1993- PNB acquired New Bank of India, which the Government of

India had nationalized in 1980.
1998- PNB set up a representative office in Almaty, Kazakhstan.
2003- PNB took over Nedungadi Bank (established the bank in

1899), the oldest private sector bank in Kerala. It was
incorporated in 1913 and in 1965 had acquired selected
assets and deposits of the Coimbatore National Bank. At the
time of the merger with PNB, Nedungadi Bank's shares had
zero value, with the result that its shareholders received no
payment for their shares.

VISION
"To be a Leading Global Bank with Pan India footprints and become a
household brand in the Indo-Gangetic Plains providing entire range of
financial products and services under one roof"
MISSION
"Banking for the unbanked

 FINANCIAL PERFORMANCE OF PNB
 AWARDS & RECOGNITION
 PEST ANALYSIS
 SWOT ANALYSIS
Financial Performance of the Bank

Punjab National Bank continues to maintain its frontline position retained its
NUMBER ONE position among the nationalized banks in terms of number
of branches, Deposit, Advances, total Business, operating and net profit in
the year 2008-09. The impressive operational and financial performance has
been brought about by Bank’s focus on customer based business with thrust
on SME, Agriculture, more inclusive approach to banking; better asset
liability management; improved margin management, thrust on recovery and
increased efficiency in core operations of the Bank. The performance
highlights of the bank in terms of business and profit are shown below:
Parameters Mar'07 Mar'08 Mar'09 CRAR

Operating Profit* 3617 4006 5744 26.02
Net Profit* 1540 2049 3091 41.67
Deposit 139860 166457 209760 22.47
Advance 96597 119502 154703 26.55
Total Business 236456 285959 364463 24.15
(Rs.Crores)
 Respective figure for the corresponding financial year
AWARDS & RECOGNITIONS

"Best IT Team of the Year Award"-
At the IDRBT Banking Technology awards for the year 2005-06.
SKOTCH Challenger Award-

For Change Management for the year 2005-06
Best IT User in Banking & Financial Services Industry – 2004
By NASSCOM in partnership with Economic Times.
Golden Peacock Award-
For Excellence in Corporate Governance - 2005 by Institute of Directors.
FICCI's Rural Development Award-
For Excellence in Rural Development – 2005
Skotch Challenger Award for Exemplary use of Technology
For becoming a pioneer in Public Banks – 2005
Golden Peacock National Training - 2004 & 2005
By Institute of Directors
National Award for Excellence in SSI Lending
Ranked 2nd for 4 consecutive years - 2002, 2003, 2004 & 2005

Banking Technology Awards 2004 Runner up in 'Best IT Team of the
Year Award 2005'
Jointly Adjudged by IBA, Finacle & TFCI
Money Outlook Award - 2004
Runner up in 'Best Bank (public Sector) of the year Award' –2005
Niryat Bandhu Gold Trophy
For excellence in export performance for 3 consecutive years 2001, 2002 &
2003 by Federation of Indian Exporters Organization (FIEO)
21st Amongst Top 500 Companies
By the leading Financial Daily the Economic Times, June 2005
9th amongst India's Top 50 Most Trusted
A.C Nielson Survey, The Economic Times Dec 2004
Service Brands 3rd Rank amongst Banking Sector in India 323rd Rank
in the World
The Bankers' Almanac, January 2006
368 amongst Top 1000 Global Banks
The Banker, London July 2005
PEST ANALYSIS

SWOT ANALYSIS

Objective Strengths Weaknesses
Analysis of PNB  Wide network

 Large no. of
customers
 Fast adaptability to
technology
 Brand recognition
 Excellent Training
Opportunities
 Home to home  Decentralized decision
 Fast growing banking services making
Indian  Diversification  Awards & Incentives
economy towards other field
 High growth in  Globalization
banking
sector
 Liberal markets
 Micro financing
Threats  Providing better  Fast Decision making
services  Competitive edge
 Large no. of  Building long term  Changing culture
market players customer relationships

 STRUCTURE OF THE ORGANISATION
 HIERARCHY
 MANAGEMENT OF PNB
 ABOUT M.D. & CHAIRMAN SINCE INCEPTION
ORGANISATIONAL STRUCTURE

Bank has its Corporate Office at New Delhi and supervises 58 Circle
Offices under which the branches function. The delegation of powers is
decentralised upto the branch level to facilitate quick decision making.
HEAD OFFICE
7, Bhikhaji Cama Place, New Delhi-110026
CGM OFFICES
CIRCLE OFFICES
BRANCHES
HIERARCHY

Chairman
Executive Director(ED)
Chief General Managers (CGM)
General Managers (GM)
Deputy GM
Assistant GM
Chief Managers
Senior Managers
Managers
Officers
Clerical/ Subordinates
MANAGEMENT OF PNB

Name Designation
M V Tanksale Executive Director
Nagesh pyadh Executive Director
Smt. Ravneet kaur Govt. of India Nominee Director
L.M Fonseca RBI Nominee Director
S. R. Khurana Director rep. C.A. Category
P.K. Nair Officer Employee Director
Mohan Lal Bagga Workmen employee Director
Mushtaq A Antulay Part –time non Official Director
Gautam P. Kandelwal Part –time non Official Director
Vinod Kumar Mishra Part –time non Official Director
Tribhuwan Nath Chaturvedi Share Holder Director
Devinder Kumar Singla Share Holder Director
G R Sundaravadivel Share Holder Director

NAMES OF CHAIRMAN & MANAGING DIRECTORS ALONG
WITH THEIR TENURE SINCE THE INCEPTION OF PUNJAB
NATIONAL BANK
Names of Chairman & Period

Managing Director
S/Shri
1 Sardar Dyal Singh Majithia 1895 - 1898
2 R.B. Lal Chand 1898 – 1905
3 Bhagat Ishwar Dass 1905 – 1910
4 R.B. Lal Chand 1911 – 1912
5 R.B. Lala Sukh Dayal 1912 - 1913
6 Bhagat Ishwar Dass 1913 - 1915
7 Dr. Hira Lal 1917 – 1920
8 Lala Dhanpat Rai 1921 – 1931
9 Dr. Maharaj Krishna Kapur 1931 – 1937
10 R.B. Dewan Badri Das 1938 - 1942
11 Lala Yodh Raj 1943 – 1953
12 Shriyans Prasad Jain 1953 – 1954
13 Shanti Prasad Jain 1954 – 1959
14 Ram Nath Goenka 1960 – 1964
15 Kamalnayan Bajaj 1964 – 1967
16 Somesh Chandra Trikha 1968 – 1972
17 Prakash Tandon 1972 – 1975
18 T.R. Tuli 1975 – 1977
19 O.P. Gupta 1977 – 1980
20 S.L. Chopra 1980 – 1981
21 S.L. Baluja 1981 – 1985
22 J.S. Varshneya 1985 – 1989
23 Rashid Jilani 1990 - 2000

24 S.S. Kohli 2000 – 2005
25 S.C. Gupta 2005 - 2007
26 Dr. K.C. Chakrabarty 2007 – 2009

 FEATURES OF HOME LOAN
 HOME LOAN INDIA
 TYPES OF HOME LOAN
 WHY TAKE A HOME LOAN
 CHECK LIST FOR HOME LOAN
 RBI DIRECTIVES FOR HOME LOAN
HOME LOAN
Home loans are provided based on the market value, mainly estimation
given by banks or the registration value of the property. Availing various
types of house loans to suit your individual needs at the lowest rates & easy
financing can now fulfill the need for a house of your own.
Home loan is not a one-time decision; do review the market periodically

before availing them. Today there are unlimited numbers of banks in the

country wanting to give out Home loans. Given this scenario, it may seem
easy getting yourself a loan. But is it really??
Buyers tend to make mistakes while entering into deals, which may not be
beneficial for them, so better compare all the variables before signing a loan
agreement by different banks. However the loan agreement should be
finalized only after reading the terms and conditions carefully.
You can apply for a Home loan even before you select your property. The
loan amount would be sanctioned or approved for you, based on your
repayment capability.
Features of house loan:
• Purpose: For purchase of house from builder / resale and construction /

extension of existing house.
• Loan amount: You can avail for Home loans need based depending on
your eligibility, income and repayment capacity.
• Security: Home loan is a secured loan wherein collateral are required.

• Loan tenor: The maximum loan tenure is 25 years.
Planning to avail a home loan, you must adhere underneath points:

Firstly, take your own time and evaluate your expenses and do a market
survey about the property buying process. Buying a house, which is way
beyond your range, could affect you financially; banks help in financing
your dream home via home loans.
1. Eligibility
Banks determine your eligibility based on your repayment capacity and

discuss about the loan amount up front. The eligibility for acquiring a home
loan is augmented by clubbing income of your father/spouse/mother/son, by
clearing your outstanding debts, by stretching your loan tenure, Salaried
individuals can increase their eligibility by showing their performance linked
income or bonus earned.
Secondly, Do your own analysis and check the impact of your repayment of
home loan on your monthly expenditure, as a thumb rule, it ’s recommended
to make sure the EMI of your home loan do not exceed more than 50% of
your gross monthly income.
2. Interest rates

An important factor that goes into your EMI calculations is the interest
rates, which may vary from bank to bank, so do compare them. Also do a
complete and detailed analysis of the various options like the interest rates
i.e. fixed and floating rate of interest.
Thirdly, if two banks give you the same amount of loan but at different
interest rates do your math and work out what's best for you.
a) Fixed interest loans
Charge an interest, which remains the same through out the tenure of the
loan. This means that the consumer is immune to market risk or the possible
upward movement in the interest rates.
Hence, fixed rate is a good option when the interest rates are expected to
move up in the future.
b) Floating rate loans
A consumer is exposed to market risk and his gain or loss depends on the
interest rate condition prevailing in the market. Floating rate is beneficial if
the interest rate falls in the future. A floating rate is considered non-
transparent and is also known as 'adjustable rate'.
Fourthly, if you decide to opt for a fixed rate loan, you can still switch to a
floating rate loan in the future and vice versa as and when rates go in your
favour and if you do decide to switch, you should take into account the cost
of doing so and the interest rate benefits of switching.

For a given interest rate, loan with a daily or monthly reducing balance is
better than an annual reducing balance loan. Interest rates vary depending on
the tenure of the loan, the amount of the loan and your personal profile.
3. Insurance covers (an added cost)
Also, many banks may insist on getting your home insured to safeguard their
interest. There are various kinds of insurance covers available for you. Apart
from getting the mandatory ones you should try to get insurance as per your
circumstances. You also have a choice of getting insured from another
company without any objection from your bank.
4. Other costs
The interest rates and EMIs are not the only cost factor. Rs. 1350/
documentation charges and 0.90% + service tax. Processing fees, administration
fees, valuation fee, legal fee, is to be paid when you apply for a loan and other
fees paid at closing.
Make sure you work out as to how much these other costs add up to. So even
though the interest rate may be lower, it usually adds up to being expensive. If
the EMIs may come out a lot more than what you can afford on a monthly
basis; try to redo the math with changes in the tenure and loan amount (if
possible).
5. Advance EMI
Advanced EMI is the number of equated monthly installments in the form of

post dated cheques, paid out in advance at the time of disbursement of loan.

6. Document required
Most importantly, all deals and offers agreed upon are supported by relevant
papers. Self employed and salaried require different documents to support
the deal.
So make sure you always ask for a letter on the banks letterhead mentioning
the likes of, exact rate of interest, processing fees, pre-payment charges
along with interest-schedule.
Before signing the documents, make sure you recheck all terms and
conditions.
Do make sure you understand and agree with each of the clauses in the
documents. Do not sign any blank documents. Even if it takes you a few
hours to fill-up the form, please do so.
Do not leave anything for the executive to fill-up. It's always better to get a
legal opinion from someone on your loan papers. Do not under any
circumstance give any false information. This may amount to fraud and
could land you in trouble.
7. Penalties Once you have received the loan do your best to pay it back as
quickly as possible. But this early payment might invite a pre-payment
clause.
Banks make their money off the interest they charge and the sooner you pay
back a loan the less money you will have to pay in interest. When it comes

to Home loans, penalties are binding, like if you chose to pay up your entire
money before the tenure, a Pre-payment penalty is charged. So you should
know about such penalties beforehand to avoid future misunderstanding
between you and the bank.
8. Home loan glossary Confused in the Home Loan jargon? Our glossary
will help you in understanding the basic home loan related terms. Browse
through the glossary or search for a term through the menu to resolve any
doubts.
Glossary of Home Loan terms
A B C D E F G H I J K L M
N O P Q R S T U V W X Y Z
9. Acceptance Letter
Acceptance letter is the letter that a borrower or applicant provides on

reading the terms of the issue; and communicate his willingness to accept
the loan by way of an acceptance letter within a particular time frame which
varies between 1-3 months from the date of the sanction letter and also pay
the requisite administrative fee.

HOME LOAN IN INDIA
It is definitely one of the major things that you can board on in your
lifetime. The bad news is: however is that not everyone in this globe is like
you, loaded enough (financially, of course) to be able to build a house as
soon as he wants to.
Whether you are Non Resident Indian or Resident of India, and you are
thinking to start your journey of buying a new house, looking to move to a
new house, investing in property or are looking forward to refinance,
Consider answering these questions to yourself:

 Which type of home loan should I prefer?
 Will it be the best scheme that will be fitting my budget?
 Can any insurance plan cover for an unpaid monthly due?
 Is there a fine or penalty or even some reward as well if the whole
amount of loan is paid ahead of the due date?
These are just a dash of the questions to be answered when considering

taking the plunge…into the loan journey. The different home loan types are
hereby presented to you to make your journey that more smoother or step by
step, safer and comfortable. Yet, Got a fix on fixed rate or variable rates,
offset accounts, lines of credit or bridging loans!!
And we have covered the basics of your journey here. Going back to you
future house owner, have you got the answers to your questions? Start
answering them now and take the plunge!
With so many real estates sites coming up in Indian market, finding an ideal
house isn't that big a issue nowadays, when you can virtually see all across
the home you need to purchase by the various real estate simulation
programs and videos available, but you still need to purchase it, right? - To
really say "own" it. A home loan, also popularly identified as a mortgage, is
an easier financial option to own a house. Once you've decided to endeavor
on a home loan, there are so many things that you need to be informed with.
Not only is it going to be an emotional experience, it is also going to be a
very informative monetary journey, as you will be dealing with the whole
caboodle of the mortgage process along the way.
There are thousands of home loan companies waiting to provide you with
your financial needs. Part of the success of this whole financial move is

partly in your hands, the greater part relies on the efficiency of your chosen
mortgage company.
TYPES OF HOME LOAN
Owning a piece of land or property is a lifetime dream for every

individual. There are many home loans provider in the market to make your
dream come true. But before you opt for any home loan provider, you need
to consider certain factors related to property that you are interested in
buying and also about the salient features offered by a home loan provider
and also study some Home Loans and Home Insurance FAQs which helps in
applying a Home Loan in India.

And the most important thing is you should know about each and every term
related with Home Loans before applying for a Loan. It is always advisable
to consult a home loan expert or consultant before applying for a home loan
or purchasing a property.
You can take different types of home loans like Bridge Loans, Home
construction Loans, Home Equity Loans, Home Extension Loans, Home
Improvement Loans, Land Purchase Loans etc for different schemes
available in the market. There are different types of home loans tailored to
meet your needs.
 Home Purchase Loans: These are the basic forms of home loans
used for purchasing of a new home.
 Home Improvement Loans: These loans are given for implementing
repair works, healing and renovations in a home that has already been
purchased.
 Home Construction Loans: These loans are available for the

construction of a new home.
 Home Extension Loans: These loans are given for expanding or
extending an existing home. For e.g.: addition of an extra room etc.
 Home Conversion Loans: These loans are available for those who
have financed the present home with a home loan and wish to
purchase and move to another home for which some extra funds are
required. Through home conversion loan, the existing loan is

transferred to the new home including the extra amount required,
eliminating the need of pre-payment of the previous loan.
 Land Purchase Loans: These loans are available for purchasing land
for both construction and investment purposes.
 Bridge Loans: Bridge loans are designed for people who wish to sell
the existing home and purchase another one. The bridge loans help
finance the new home, until a buyer is found for the home.
Why take a Home Loan?
What's an average middle class Indian's most cherished dream? A date in

world trips in islands with Aishwarya Rai in complete solitude. This would
seem to be the answer from the maximum number of episodes of Kaun
Banega Crorepati (KBC), despite recently of course, when she has decided
to change her fortunes first with Abhishek!
Jokes apart, purchasing and moving into a dream house would generally
rank among the top three things on the wish list of most people. After all it’s
what been proved by Maslow’s Law of Hierarchy as well. That entire house
hunting every few years, grumpy landlords, killing rents would be a thing of

the past. Hey, you even get to use nails to hang your favorite paintings and
pictures. Don’t you???
Taking a home loan nowadays has become very simpler. The RBI has been
regularly slashing interest rates, with the result that housing finance loans
that came at an interest rate of 16.5% to 18% four years ago are now
available at 11.5% to 13% or lower. Each year the Finance Minister's
generosity during the Budget seems to be solely concentrated for the
housing sector and construction sector. The Budget 2000's allowed interest
payment up to Rs 1 lakh and principal payment of Rs 20,000 to be exempted
from income tax. To top it all, the Housing Finance Companies (HFCs) are
aggressively wooing customers. Now, when the sun shines, it’s the best time
to make hay. Isn’t it?
Check list for Home Loans
If you have arrived here by the help of search engine, we pre assume that
you are seeking some home loans to purchase a home or on the look out for
some information related to Home loans or Home Loan Types or you must
read some Home Loan Articles. Hereby, we present to you the home loan
documents checklist that you need to ensure is with you, before you apply
for a home loan. A basic checklist for home buyers like proper and clear title
and correct proposition will help you make a safe and informed purchase.
There are other home loan tools like calculators suitably devised to assist
you.

Confirmation of Income
 If you are a salaried person, please provide two recent consecutive pay
slips or a copy of your employment contract or a letter from your
employer.
 If you are self-employed, please provide copies of your last two
Financial Accounts as prepared by your accountant.
 Appointment Letter
 Salary Certificate
 Retainer ship Agreement, if appointed as a consultant
 FORM 16 issued by the employer in your name.
 Last three years income tax returns duly filed and certified by the
Income Tax Authorities
 Similar Document -separately for each co-applicant.
Employment Proof
 Identity card issued by your employer

 Visiting card
Age Proof
 Passport
 Voter's ID card
 PAN card
 Ration card
 Employer's Identity card
 School leaving certificate

 Birth certificate
Residence Proof
 Ration card
 Passport
 PAN card
 Rent agreement, if you are staying currently on rent
 Bank Pass book
 Allotment letter from your company if you are residing in company
quarters.
Name Change Proof (If Applicable)
A copy of the official gazette b. A copy of a newspaper advertisement

publicizing the name change c. Marriage certificate
Investment Proof (If Applicable)
 Bank statement for the last six months of all operating and salary
accounts
 Bank statements for the last six months of all current accounts, if self-
employed.
 Any other photocopies of investments held, if required by the Bank
Property Title Proof
 Original Sale agreement with Builder/Developer duly registered,

Registration receipt

 Tripartite agreement from builder/developer
 Land documents indicating ownership, e.g.- Photocopies of title
deeds, if applicable
 A certificate by the legal advisor of the builder to the effect that the
builder has a good reputation and it is free from encumbrance and
other charges.
 A certificate from builder's Chartered Accountant certifying that the
builder has not mortgaged the property anywhere else.
 Certified true copy of approved plan.
 Copies of receipts of payments made to builder/developer.
 Allotment letter
 Possession letter
 Lease agreement, if applicable (Property bought from a development
authority)
 Mortgage deed if the Bank opts for a registered mortgage.
 No Objection Certificate from the developer, society or development
authority as applicable
 Personal Guarantees, if applicable.
 In case of alternate or additional security, documents for the same
depending upon the security details.
 For self-construction: Approved plans and clearance certificates along
with estimates
 Post dated cheques for the EMIs.
Confirmation of Rental Income
Copy of the existing tenancy agreement, or a rental appraisal, from a local

real estate agent signed by branch manager, or rental manager.

Deposit or Investments
 Evidence of your deposit or investment funds, i.e. a bank statement or

term deposit receipt.
 For low equity loans (5-19% deposit), copy of your savings account
statements over the last six months.
Sale and Purchase Agreement
 If you are planning to buy a property, please provide a copy of the

successful sale and purchase agreement signed by both you and the
vendor.
 If you are planning to sell or have already sold your existing property,
please provide a copy of that property's sales and purchase agreement.
New Customer to the banks of India
 If you are refinancing from another bank please provide copies of

your loan statements covering the last six months.
 Please provide copies of your account statements covering the last six
months from your current bank.
 Please provide copies of your identification and if you have arrived in
the country within the last 5 years, please provide a copy of your
passport.
Government Valuation and rating System

A copy of the latest Government or Ratings Valuation is to be provided.
Depending on the age and value indicated in conjunction with the amount

required to borrow, the Bank may require a Registered Valuation and your
Banker will advise you
New RBI Directive for Home Loans
The Reserve Bank of India (RBI) has in the latest directive asked the Indian
banks to be more "fair and transparent" while signing their agreements with
the consumers. This has come following complaints from various consumer
sections regarding home loans.
 It has emphasized on the fact that while giving a home loan, the banks
should not tie their loans with their own prime lending rates (PLR)
which often results in pro-bank and against consumer interest.
 Households should get credit counseling before signing any loan

agreement. In such case, banks should give credit counseling to
customer before giving a loan. Any non-governmental organization
can also give independent credit counseling to small borrowers.

 Consumers often complain of not receiving benefits of falling interest
rates as banks tie their floating rate loans with its PLR and even when
rates fall, the banks kept the PLR unchanged. But when interest rates
are hiked, the banks increase the benchmark rate, thus making
customers pay a higher rate and consequently increase the number of
EMIs too. The RBI has asked the banks to mend rules for the same.
 Individual borrowers should ask for the exact tenure and EMI while
taking a fixed rate loan. The RBI has also resolved to look into all
consumer complaints if it is bought to the regulator's notice.
 The IRDA (insurance regulator) has powers to take action against

banks if a customer feels cheated while buying an insurance product.
On its regulatory role, the RBI is trying to maintain a balance between
the extent of freedom granted to the banks and the objectives of
governance.
 RBI has made it mandatory for all banks - including private and
foreign banks - to offer a passbook to their customers with the address
and telephone number of the nearest branch.

 Customers have often been harassed by banks' call centers where there
is no accountability of the query made. The "do not call" registry has
also been flouted by banks as customers are bombarded with
unnecessary product offerings. The RBI has directed the Indian Banks'
Association to come out with a single "do not call" registry or when a
customer adds his name to a single bank registry it should then stop
unsolicited calls from all banks.
 On rising credit card frauds and wrong statements given by the banks,
the RBI has asked the customers to approach the ombudsman to
redress their problems. This way the RBI feels would inculcate more
consumer friendly practices among Indian banks.

Choosing the right home loan
If you are planning to buy home, you need to know about home loans
processes, troubleshooting and how to choose the right home loan for house
that falls within your budget. There are various types of home loans offered
by different financial institutions. You need to figure out which type of
home loan is beneficial for you.
Types of Home Loans Available:
 Home Equity Loans

 Home Extension Loans
 Home Improvement Loans
 Home Purchase Loans
 Land Purchase Loans
 Mortgage Loans
Many banks and financial companies offer home loans. But before choosing
any home loan option, consider few points as mentioned below.

Property Types: You should know more about type of property in lieu of
which you seek loan. There are loans offered by banks to Resident Indians
and NRIs for ready property, under construction property, self-construction
and home improvement.
Loan Tenure: The loans provided by financial institution are offered in

tenures or period of years. You should check out the tenure for loans
available in the market. There are loan tenures available for upto 25 years.
Repayment Options - You need to choose between fixed and floating rate
home loans. Many banks and financial institutions will provide you with the
option of switching from a floating rate home loan to a fixed rate home loan
once a year at no extra cost. But you need to check out the facts first with the
loan providing firm.
No Penalty option - There are also no penalty option offered by few finance
companies. In this mode, you can opt to pre-pay up to 25% of your loan
every year. Pre-payment is permitted after a minimum of 6 months
following loan disbursal.
Tax Benefits - You should know the right of your tax benefits on home
loans. Resident Indians are eligible for certain tax benefits on principal and
interest components of a housing loan under the Income Tax Act, 1961.##
List of Premium Banks Offering Home Loans:
 ICICI Bank - ICICI Bank Home Loan

 HDFC Bank - Adjustable Rate Home Loan
 Bank of India - Star Home Scheme

 Standard Chartered - Home Assist
 State Bank of India - SBI Unique Housing Scheme
 Bank of Baroda - Housing Offer
 Citibank- Building & Renovation of House
Always check with a financial home loan expert or financing company to

understand home loan processes and to avail the best bargain on your home
purchase.
 ELIGIBILITY

 DOCUMENTATION
 EXTENT OF LOAN
 RATE OF INTEREST
 REPAYMENT & SECURITY
 FEATURES & CONDITIONS OF PNB HOME
LOAN
PNB HOME LOAN
Punjab National Bank provides its customers with various Home loan
policies and features at highly competitive rates. They know the needs of the
Indian customers that they have to deal with, on a regular basis, and provide
the policies accordingly. The PNB Home Loan cater mainly to the
requirement of the middle class individuals of India, as Pnb itself is one of
the leading public –sector banks of the nation.
The PNB Home loans are very easily available, and have an even easier
process of repayment that is given over a prearranged time period. This
period of time is determined, when the PNB Home loans are being finalized
and along with the loans, the buyers get the opportunity of having a life
insurance covered against him. The basic grounds on which the PNB Home
loans are provided are:
 Extending, repairing, modification and even renovating of an already

existing building or flat.

 Purchase or building of a new house or flat.
The basic interest of the PNB Home loans may be around 9.5%, and the time
period may vary from a minimum of 5 years to a maximum of 25 years.
However there is a certain limitation of the loan amount that an individual
may take from the bank. The maximum amount of the loan amount
sanctioned under PNB Home loans is need based. It generally takes around
7 days to process the PNB Home loans, from the day it has been finalized
with the bank.
Apart from all these details, the PNB Home loans also enable us to choose
between fixed and floating rates that may be applicable from time to time,
and keep varying from one time period to another. As far as the eligibility is
concerned, a person between the age group of 18 to 60 years may be
qualified to apply for the PNB Home loans. Along with this, it has also to be
noted that the annual income of the individual, who is applying for the loan,
must be greater than or equal to 1.2 Lac INR.
Eligibility
 Age of the applicant must be less than 60 years.
 Existing home loan borrower can also apply provided their loan
account is regular and no IR irregularity persist.
Documents Needed

1. Proof of identity
2. Proof of income
3. Proof of residence
4. Bank statement or Pass Book where salary or income is credited.
5. Education Certificate
6. Photos
7. Salary slip & form 16
8. Income tax return last 3 years along with balance sheets.
9. Assets liabilities statements.
10. Documents of property.
11. Estimate of construction.
12. Guarantor
Freehold and Leasehold Property

1. The loan can be granted both for freehold and leasehold property.
2. In case of leasehold, loan can be granted on the basis of power of
attorney basis from original allotee where DDA/PUDA/HUDA permit
conversion of leasehold into freehold property otherwise advance is not
permitted against plot purchased on Power of Attorney basis.
Extent of loan
 For construction/purchased of house/flat 75% of the cost of

construction or purchase of house/flat.
 For carrying out repairs/renovation/additions/alternation: - 75% of the
estimated cost subject to maximum of Rs. 20 lacs.

 Loan upto Rs. 20 lacs for purchase of land/plot
 Loan is available maximum upto Rs. 2 lacs for furnishing.
Margin
Land/Plot 40%
Construction/repair/addition 25%
Rate of Interest
(Effective from 1st May 2009 – BPLR 11.00%)
Housing finance to Fixed option for loans Floating option for loans
Individuals including
NRI’S /Flexible Housing
Scheme
Upto 20 Above 20 Upto 20 Above 20
Lacs. Lacs. lacs. Lacs.
(i) upto 5 years 9.25% 10.00% 8.75% 9.50%
(ii) Above 5 years & upto 10.00% 10.25% 9.00% 9.50%

10 years
(iii) Above 10 years & 10.50% 10.75% 9.25% 9.75%
upto 20 years
(iv) Above 20 years & 10.75% 11.00% 9.50% 10.00%
upto 25 years

 The interest rate can be fixed or floating
 Option can be changed from fixed to floating and vice versa with flat
charges of 2% fee on balance outstanding.
 Fixed interest rate be reset after a block of 5 year in respect of loans
disbursed on or after 1.08.2006
Documentation charges
Rs. 1350 + Service Tax
Upfront Fee
0.90% of the loan amount + Service Tax& Education Cess
Repayment
 Maximum 25 years.
 Installment can be fixed upto maximum age of 65 years.
 The income of spouse and earning children can be taken into account
provided they are made co-borrower.
 Father/Mother can also be made co-borrower in cases property is in
single name of his /her son and also clubbing of their income is
permitted for determining eligibility criteria.
 Minimum 24 advance cheque should be obtained as and when, 6
cheques remain, fresh lot to be obtained out of 24, 23 cheques should
be of the amount equal to the balance.

 Loan is to be repaid in EMI within a period of 25 years or before the
borrower attains the age of 65 years.
Security
 Equitable/Registered mortgage of immovable property.
 Tripartite agreement be executed amongst Housing Board/ Dev
Authority / Coop Society / Builder the borrower and the bank where
mortgage cannot be created immediately.
 Equitable mortgage of other immovable property or pledge of NSC
etc. upto 125% of loan amount if property is being purchased from 1 st
P/A holder and where there is delay in the execution of Tripartite
agreement.
 Verification of security is required once in 2 years.
Features
 Loan can be sanctioned by branch/hub near to the present place of
work/posting /residence of the borrower.
 Loan can be sanctioned even if property is in the name of wife/parents
provided that the owner is made co-borrower.
 Loan can be granted for 2nd house in the same city.
 Loan can be granted for purchase of house for rental purpose
 For take over, permission of higher authority is not required.
Important Conditions

Loan cannot be granted:
 For construction in Un-authorized colonies.

 If property is to be used for commercial purpose.
 Without approved Map.
 SUGGESTIONS & RECOMMENDATIONS

 TROUBLESHOOTING TIPS FOR WOULD BE
HOME LOAN BUYERS
SUGGETIONS & RECOMMENDATIONS
There are some suggestions, which I would like to give the private banks,
which I noticed in my project. This are-
o Banks should improve the quality of their products (Specially Home
loan).
o Most of the private banks and public banks are much aggressive about
home loan than PNB. So, PNB should also be focus and aggressive
about its home loan products.
o In my project period I notice that many of the hidden costs are

accumulate with the services, which are not informed to the customers
at the first time, and then customers suffer many of the problems. So,
banks should disclose all the fee structure, terms & conditions
regarding the product before making sale.
o In the bank premises front office executives are not co-operative with
the customers. So, higher authority should keep control over theses
types of activities.

o Most the banks believe in large sales force than the quality sales force,
which are more competitive. So, banks should improve their quality
sales force, which include the competitive sales personnel.
Troubleshooting Tips for Would Be Home Buyers
Past few years have witnessed a paradigm shift in the scenario for home loan
seekers. However, things for the consumers were fairly good till mid-2004.
Property prices have been steady and the interest rates were at historic lows.
Undoubtedly, the picture has much changed now. Real estate in India is
going through its own boom, with property prices going higher and higher as
there is no tomorrow. Also, there is no sign that this rise in underlying
property prices is going to slow down soon. This has widened the gap
between have and have not for a home loan consumer.
Though, there has been a great progress in the financial status of different
income groups but there are many other hassles along the way to add to the
woes of an interested home buyer.
With an increase in loan interest rates, it has been noticed that a consumer
gives away a major portion of his increased income as the down payment
and later as EMI. This is a story with every next typical consumer in a
metropolitan city. No wonder that the dream for owning a home is on the
verge of turning into a mirage for most middle class.

So what are the options left with a prospective home loan consumer?
 If you are planning to purchase a home for the purpose of your own
residence, then don't make your search a wild goose chase by trying
and wasting time in the market.
 If your dream house requires you to hunt a treasure to buy it, you may
consider a smaller property in the same area.
 But, if you are deciding to buy a house with the intention of selling it
for quick profits, then never fasten the process. Wait for the
overheated property market to cool. Meanwhile, work out your budget
and advantages before treating the property as an investment.
Let's view the top four problems faced by home loan consumers during
the pre-disbursement process as well as troubleshooting tips:
Problem I: Most times, the desired home loan amount is not available or if
available, then getting a fixed rate of interest is just like striving for
impossible. Moreover, there are a few financial institutions that provide the
home loan consumers with a promising interest rate.
- Get a promise that if you don't receive the home loan amount offered you
can press for a refund of your processing fee. Don't rely on words but take it
in writing or by mail.
Problem II: Generally, there is no guarantee that you will get your
processing fee back if the loan is not sanctioned or if the loan is sanctioned
then the individual does not want it.
-The situation seems a little complex unless promised in writing or in

advance.

Problem III: At times, loan amount gets restricted after being sanctioned
due to lower valuation of the property by the bank.
- You may ask your lender to get a valuation done before the sanction of the
loan so that this does not come as a surprise afterwards. Else, the bank will
evaluate it at one figure and you will be purchasing it at another. For that
reason, it is always recommend buying a property from a well known
builder.
Problem IV: Non availability of title documents and/ or NOCs in the format
desired by the bank. Or, problems with any other legal/ title document.
- Most banks go through your legal documents with a discerning eye if they
are submitted along with a home loan application form. You are required to
check with the concerned builder/ society/ authority about the format of the
NOC that plays a critical role in the procedure. If they have a different
format, get that cleared from the bank to avoid messy disputes and
headaches later.

BIBLIOGRAPHY
BANKING LAW AND PRACTICE -- P.N. VARSHNEY
INDIAN CASES IN MARKETING -- NEELAMEGHAM , S.
WEB SITES:
www.pnbindia.com
www.guide2homeloan.com
www.google.com
Distance education is more popular than ever today. It allows students to study remotely,
without having income protection to attend classes at a university.
Sallie Mae College Loans

If you have been researching your financial aid options for school, you have likely heard
of the name Sallie Mae.
Special Education Grants

Special education generally refers to students who are differently-abled. However, it can

also referred to students who require special education needs in other ways.
Financial Instituion Loans

If you need loans for education, because you're going to college, university, or some
other form of school, you may well want to consider private loans from financial
institutions.
Your Student Loans and Need Analysis

Before you start applying for student loans and financial aid, you need to run a need
analysis. This simply means that you must decide how much money you need for school.
To do this, you must add up tuition, school fees, living expenses, medical insurance costs,
books and school supplies, transportation, and entertainment. You must determine how
much you will need each year you are in school and how much you will need overall for
the entire length of your degree program.
While you are determining how much you need, you may also want to note down your
resources. If you have a job or savings, for example, you may use some of this money to
pay for your expenses. When you are trying to decide how much you will need, it is
generally better to err on the side of caution. Always estimate that you will need more -
not less. This will ensure that you are not caught short of funds while at school.
Which Types of Student Loans is Right for You?

Depending on the program or school you attend, you may need one or more types of
loans:
Student Loans
Many of the best private education loans are simply marketed as “student loans.” Some
of these are meant mainly for undergraduate students, while others are intended for any
students who require money for school.
Adult Student Loans

If you are taking part in adult education classes, these loans can help you pay for your
schooling. If you are returning to school as an adult student, and so do not qualify
(because of your age) for many student loans, adult education loans may be for you.
Continuing Education Student Loans

If you are taking continuing education classes or certification programs to improve your
job skills, special loans that are more flexible can help ensure that you get the funding
you need.
Higher Education Student Loans

If you are a graduate student, a number of loans are created especially for you. In many
cases, these allow you to borrow larger sums, as graduate school tends to be more
expensive.
Sources of Education Loans

There are several sources available to you for education loans. If you're looking for loans
and other financial aid, be sure to consult:
Your School's Financial Aid Office

Your school's financial aid office administers loans offered by the federal government in
other sources. Some schools also offer their own loans and financial aid solutions. Your
school's financial aid office can help you fill out forms for loans and can tell you about all
the types of financial aid you qualify for. Even if you do not consult any other sources for
financial aid, you simply must visit your school's financial aid office if you wish to be
able to afford your college education.
The Federal Government

The federal government makes a number of loans available to students. The Federal
Stafford loans, Perkins loans, and PLUS loans help students afforded their education. To
apply for federal government funding, you must fill out the FAFSA (Free Application for
Student Aid) form online or at your school's financial aid office.
Banks and Financial Institutions
Lenders -- including banks, lending companies, credit unions, and others -- make loans
available for students. These loans tend to be based on your credit history, so you either
need a cosigner or an excellent credit score to qualify. However, these loans tend to be
more flexible than other types of loans. That is, if you are attending a nontraditional
school or have specific needs, banks and other financial institutions will often be able to
help you even when other lenders cannot.
Be q
Most students and parents today realize how expensive an education is. Whether you
hope to study at a private high school, a college, university, or an overseas school, tuition
costs plus the costs of books and living can quickly add up. If you are worrying about the
cost of school, you should not feel that money has to decide your education. There are a
number of financial aid options that can help you. Educational loans can be one important
part of your overall financial aid package. There are special distance education loans,
need-based loans, college loans, government based loans, and private education loans --
in fact, chances are excellent that there are educational loans that can meet your specific
needs.

What Education Loans are?
Educational loans work like any other debt. That is, loans are simply specific money that
you borrow from a bank, a private lender, or some other type of lender. Afterwards, you
must repay your debts with interest. However, unlike other types of loans, educational
loans are different in several respects:
Different Qualification Features

Loans created for students recognize the fact that students have not had time to build up
credit rating. For this reason, applications for student loans are simpler and more
streamlined. The qualifications for such loans are also usually more lenient.
Generous Repayment Terms

Loans designed to help students pursue an education recognize that students should spend
their school time studying, not working to repay a loan. For this reason, many loans
created for students allow students to pay back their debts very gradually and only after
graduating. This means that students can focus on their studies rather than on their loans.
In fact, most loans designed for students give students the opportunity to put off repaying
their debt until six months after graduation. This gives students a chance to settle down
and find a job before repaying their debts.
Many Various Student Loan Types are Available
Since there are so many students, each with separate needs, there are a number of loans
designed to help students pay for their education. Many of these loans are designed
specifically to help students with their unique money issues. There are loans created by
private sources, by the government, and by schools. Many feature very low interest rates.
Some are need-based and some are not. No matter what a student's financial needs, there
is likely a loan available that can help the student meet their educational goals.

A Summere Training Project ON Punjab National Bank "Home Loan"

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A

SUMMERE TRAINING PROJECT

Submitted to: Dr. B.R. Ambedkar University, Agra

In the partial fulfillment of the requirement for the degree

Under the guidance of: Submitted by:

SETH PADAM CHAND JAIN INSTITUTE OF COMMERCE

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T hi s repor t bear s t he i m pr i nt of m any per sons, who have

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Modern organizations are highly complex ad dynamics systems. They

T hi s i nf or m at i on wi l l be asset t o m ar ket i ng m anager i n

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CHAPTER 1: Overview of banking industry in India

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The major participants of the Indian financial system are the

Bank of Hindustan, set up in 1870, was the earliest Indian Bank .

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s S. N. Public Sector Banks Private Sector Foreign Banks

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Established in 1895 at Lahore, undivided India, Punjab National Bank

A professionally managed bank with a successful track record of over 110

Largest branch network in India - 4668 Offices including 238 Extension

Ranked as 248th biggest bank in the world by Bankers Almanac, London.

Strong correspondent banking relationships with more than 217 international

More than 50 renowned international banks maintain their Rupee Accounts

Well equipped dealing rooms; 20 different foreign currency accounts are

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Backed by strong domestic performance, the bank is planning to realize its

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1895- PNB established in Lahore by Lala Lajpat Rai.

1904- PNB established branches in Karachi and Peshawar.

1939- PNB acquired Bhagwan Dass Bank Limited.

1947- Partition of India and Pakistan at Independence. PNB lost its

1960- PNB amalgamated Indo-Commercial Bank Limited

1963- The Government of Burma nationalized PNB's branch in

1969- The Government of India nationalized PNB and 13 other

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1988- PNB acquired Hindustan Commercial Bank Limited in a

1993- PNB acquired New Bank of India, which the Government of

1998- PNB set up a representative office in Almaty, Kazakhstan.

2003- PNB took over Nedungadi Bank (established the bank in

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"Banking for the unbanked

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Financial Performance of the Bank

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Parameters Mar'07 Mar'08 Mar'09 CRAR

 Respective figure for the corresponding financial year

AWARDS & RECOGNITIONS

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SKOTCH Challenger Award-

Best IT User in Banking & Financial Services Industry – 2004

By NASSCOM in partnership with Economic Times.

Golden Peacock Award-