Project Title: Housing Loan a Comparative Study.Organisation: Bank of Bar oda.

The successful development in the banking business has become a complex process inthe world of competition today. The development of marketing og a new service, thecomplexity of a new and different product, their market and therefore their processthrough which they developed, dictates that a number of different people, each whichthere own role, work together to create the service.The project represents a information regarding companys/banks performance and theservice for the home loans to the all sections of society.The main objective of the project is to understand/study the different product of ahousing loan, the rate of interest of housing loan the days for sanctioning of a housingloan. This will help us to select the appropriate bank of financial institution which willhave less interest rate and maximum repayment period.For the execution of the project, the methodology adopted is the collection of information through primary and secondary data collection method, questionnaire, processing and analyzing data.The banks collected for comparison of a housing loan are the main stream banks in Nanded city i.e. state bank of India, bank of Maharashtra , one schedule and one cooperative bank. The above group represents the total population of Nanded city. TheBank of Baroda is very good service provider in the banking sector. The bank hasrecently completed 100 years, in its quest to become a world class bank with global best practice.The area of project work is Nanded city as it is the fast developing city in Marathwadaregion and the city has very good prospect in future. OBJECTIVE OF THE PROJECT: The objective of the project on Home Loans is to compare the home loan schemesof different banks and financial institutions in the Nanded City only. This will help usto select the appropriate bank of financial institution, which will have less interest rateand maximum repayment of period with easy documentation.Main objectives include: Comparison of interest rate of different banks for Home-Loans. Share of home loans in all loans disbursed by that particular bank. Profitability & Cost of a loan proposal from the customer point of view andlenders point of view.Profitability and cost of the loan proposal decides the financial position of the bank and its survives. And it also helps to banks to decide which type of loans gives themmore benefits for the long period

History of Bank of Baroda Bank of Baroda was founded by Maharaja Sayajirao Gaekwad of Baroda on July 20,1908 with a paid up capital of Rs 10 lakhs. Since then bank has traversed an eventfuland successful journey of almost 100 years. Today, Bank of Baroda has a network of 2737 branches including 39 overseas branches spre ad over 20 countries. In mid -eighties, the Bank of Baroda diversified into areas of merchant banking, housingfinance, credit cards and mutual funds. In 1995 the Bank raised Rs 300 crores througha Bond issue. In 1996 the Bank tapped the capital market with an IPO of Rs 850crores.B a n k o f B a r o d a t o o k t h e l e a d i n s h i f t i n g f r o m m a n u a l o p e r a t i n g s y s t e m s t o a computerized work environment. Today, the Bank has 1918 computerized branches,covering 70% of its network and 91.64% of its business.Bank of Baroda gives high priority to quality service. In its quest for quality, the Bank has secured the ISO 9001:2000 certifications for 15 branches. By end of the 2005-06,the Bank is targeting 54 more branches for this quality certification Net NPAs to Net Advances declined from 0.60% last year to 0.47%. Objective of Bank of Baroda 1) Special focus on improving relations with the existing corporate customersas well as efforts to add new quality customers to the Banks Book. 2) Thrust on business process reengineering to reduce the transaction costs. 3) A dedicated effort to add 2.5 to 3.0 million quality customers to Banks book in FY09 and in subsequent years Baroda Ashray ( Reverse Mortgage Loan)Baroda Career Development Loa n Product of Housing loan of Bank Of Baroda 1) Baroda Housing LoanBe a proud home owner-Bank of Baroda invites you to be a proud owner of your own home and offers easyHome Loan with a number of conveniences to suit your budget.Home Loan is available for: Purchase of new / old dwelling unit.

Construction of house. Purchase of plot of land for construction of a house. Repaying a loan already taken from other Housing Finance Company / Bank.Repayment period up to 25 years (floating rate option) RESEARCH METHODOLOGY Research forms the foundation of any project that is undertaken: Research incommon parlance refers to the search of knowledge. One can also define research as ascientific and systematic search of pertinent information on a specific topic.Redman and Moray define research as systematized effort to gain new knowledge.Humans are generally very inquisitive in nature and this inquisitiveness is the mother o f k n o w l e d g e a n d t h e m e t h o d e m p l o y e d b y h u m a n s t o g a i n k n o w l e d g e o f t h e unknown is research.Research thus is an original contribution to the existing stock of knowledge makingfor its advancement. It is the pursuit of the truth with the help of study, observation,comparison and experiment.Research methodology is a way of systematically solving the research problems. Itmay be understood as a science of how research is done. The purpose of research is todiscover answer to the question through application of scientific procedures.All this means that the researcher has to design a separate mythology for the problemundertaken by him which may differ from problem to problem. Research carried outin their project is based on theoretical and field study. RESEARCH OBJECTIVE The Objective of this study is to co mpare housing product of different banks in Nanded city. This will help us to identify and select appropriate bank which will haveless interest rate and maximum repayment of period with easy documentation The methods adopted in this study are: Personal interview through structured questionnaire of Finance hea d of SMEs,Brokers etc. Sample of questionnaire is attached as an annexure.B. Secondary Data: Secondary data refers to the data which have already been collected and analyzed bysome one else usually published data are available in form of:1. Various publication of central, state and local government.2. Books Magazine and Newspapers.3. Accounting records, sales force reports etc.4. Websites of banks.

DIGRAMATIC APPROACH Data analysis involves converting a series of recorded observation (data) intodescri ptive statements (information).The Analysis will be showed with the help of a) Chart b) Graphs Steps in Research Methodology: Step 1:Objective of Study of Home-Loans The first step in this study is the defining the objectives of the study and according tothat develop the further plan. Step 2:Developing plan for gathering information The second stage calls for developing the most efficient plan for gathering the needinformation. Decide the methods of data collection and the data sources, samplingmethod and contact method. Decide the primary and secondary sources for collectingthe data. C.Bank of Baroda : Interest Rate=11.50%Total Loans=5.41 CROREHome Loans=92, 10,000(70%) Interpretation:The above chart shows that percentage of home loans is veryhigh i.e. 70% and the other loans contribution is 30%. It means that Bank of Baroda ismore involved in the giving funds Home loans. Because of the low interest rates i.e.11.5% p.a. for home loans and easy processing for getting the loan the customers arequickly attracted. With compare to the other banks i.e. nationalize and the cooperative banks it is having lowest rate of interest. The main feature of the bank issanctioning of the home loan proposal is very fast C . B a n k o f B a r o d a : I n t e r e s t R a t e = 1 1 . 5 0 % T o t a l L o a n s = 5 . 4 1 C R O R E H o m e L o a n s = 9 2 , 1 0 , 0 0 0 ( 7 0 % ) Interpretation:The above chart shows that percentage of home loans is veryhigh i.e. 70% and the other loans contribution is 30%. It means that Bank of Baroda ismore involved in the giving funds Home loans. Because of the low interest rates i.e.11.5% p.a. for home loans and easy processing for getting the loan the customers arequickly attracted. With co mpare to the

other banks i.e. nationalize and the co-operative banks it is having lowest rate of interest. The main feature of the bank issanctioning of the Questionnaire Name of the Bank AddressE-mail1) What are your housing loan products? 2) What is the rate of interest for housing loan?Floating rate of interest Fixed rate of interest 3)What are the documents required for housing loan?4)What is the amount of total disbursement loan in one year ?5)What is the amount of housing loan in the total disbursement of loan ?a ) 0 2 0 % b ) 2 0 - 4 0 % c ) 4 0 - 6 0 % d ) 6 0 - 8 0 % e)80% and above f) 6) How many customers/A/Cs of housing loan ?a) 0-15A/c b) 15-30A/cc) 3045A/cd) 40A/c and above 60

7)What is the repa yment period? a ) 0 - 5 y e a r s b)5 -10 years c ) 1 0 - 1 5 y e a r s d)15 -20 yea rse)20 years and above 8) How many days are required for sanctioning of a housing loan?a ) 0 1 0 d a y s b ) 1 0 2 0 d a y s c ) 2 0 3 0 d a y s d ) 3 0 4 0 d a y s e ) 4 0 d a y s a n d a b o v home loan proposal is very fast Conclusion With compare to all fire banks. Bank of Baroda and SBI have a very good performance in home loan sector. Max. interest rate will help the bank but it will not attract thee customers toearn long term interest and home loans are more r eliable to gain constantinterest so, interest rate of housing loan should be minimum. The days for sanctioning loan also affect the loan proposal because in the eraof competition thee bank should keep thee sanctioning period minimum