Comparative Analysis of Home Loan

with reference to UCO Bank and State

Bank of India
Presented by:
ANUJ DUSAD

UCO BANK
UCO Bank, formerly United Commercial Bank, established in 1943
in Kolkata, is one of the oldest and major commercial banks of
India. Ghanshyam Das Birla, an eminent Indian industrialist, during
the Quit India movement of 1942, had conceived the idea of organizing
a commercial bank with Indian capital and management, and the United
Commercial Bank Limited was incorporated to give shape to that idea. The
Bank was started with Kolkata as its Head Office with an issued capital of
2 crores and a payed-up capital of 1crore.

Its name was changed to UCO Bank, in 1985, by an act of Indian

Parliament as a bank in Bangladesh existed with the name United
Commercial Bank which caused confusion in the international banking
arena. As of 6 January 2013 the bank had 2550 Service Units spread all
over India, with four overseas branches two each in Singapore and Hong
Kong. The Bank has 44 Zonal Offices spread all over India.

UCO Bank's headquarter is located on B.T.M. Sarani, Kolkata.

Mr. Arun Kaul is currently the Chairman and Managing director of UCO
Bank.

PRODUCTS & SERVICES

Depositschemes
No-frills Savings Bank Account
Money Back Recurring Deposits
Friend-in-Need Schem
Loanschemes
UCO Home,
UCO Car,
UCO Trader
Education Loan
UCO Cash
UCO Rent
UCO Mortgage

HOMELOAN
ELIGIBLITY
Individual (including NRI and PIO) having minimum 21 years of age and
maximum 60 years of age (salaried person) and 65 years of age (non-salaried
person) inclusive of repayment period.
PURPOSE
Purchase and construction of independent house/ready built flat for residential,
Extension/Repair/Renovation of existing house/flat, for furnishing of house
property, Purchase of old house/flat
INCOMECRITERIA
Forsalariedperson
Net take home pay should not be less than 40% of gross salary after deduction of
P.F, IT and other statutory deduction including proposed EMI for applicants
having gross monthly income up to Rs. 50 thousand.
In case of Net take home pay up to 30% of gross salary & Net take home pay up
to 25% of gross salary
Fornonsalariedperson
Last income tax assessment order/return

 Quantumofloan
Location/Centr For
Construction/
e
Purchase/
Takeover A/Cs

For Repair/
Extension/
Renovation

Metro/Urban/Se No upper limit

mi-urban

Rs. 25 lac.

Rural

Rs. 7.5 lac.

No upper limit

FOR take over home loan

Minimum loan =5 lac.
Minimum loan= NO UPPER LIMIT

CURRENTRATEOFINTERESTONLOANS
Base rate 10.20% p.a
EMI for Rs 1 lac.
MONTHEMI
2135
60
1333
120
1087
180
978
240
923
300
If the amount of loan less than 75 lac. The rate of
interest is 10.20%
If the amount of loan more than 75 lac. The rate of
interest is 10.20% + .25%.

Processing Fee
0.5% of the loan amount, minimum Rs.1500/- &
maximum Rs. 15000/
Repayment
The maximum period of repayment is 25
years/300 EMI .
Security & Guarantee
EMTD of property financed.
No third party guarantee

Tax Benefits
Tax relief on principal and interest components of
this loan would be available as per provisions
prevailing under Income Tax Act.
Insurance
Insurance cover on house property under UCO
Griha Raksha Yojana scheme to cover the risk of
damage to home by natural calamities.
UCO Griha Lakshmi Yojana to cover the
outstanding loan in case of accidental or natural
death of borrower.

STATE BANK OF INDIA

State Bank of India (SBI) is a multinational banking and financial

services company based in India. It is a government-owned corporation with its
headquarters in Mumbai, Maharashtra. As of December 2012, it had assets
of US$501 billion and 15,003 branches, including 157 foreign offices, making it
the largest banking and financial services company in India by assets.
SBI provides a range of banking products through its network of branches in India
and overseas, including products aimed at non-resident Indians(NRIs). SBI has 14
regional hubs and 57 Zonal Offices that are located at important cities throughout
the country.
SBI is a regional banking behemoth and has 20% market share in deposits and
loans among Indian commercial banks.
The State Bank of India was named the 29th most reputed company in the world
according to Forbes 2009 rankings and was the only bank featured in the "top 10
brands of India" list in an annual survey conducted by Brand Finance and The
Economic Times in 2010.

PRODUCTS & SERVICES

RETAILBANKING
Term Deposits
Recurring Deposits
Home Loan
Educational Loan
Personal Loan
For Pensioners
Against Mortgage of Property
Against Shares & Debenture

HOME LOAN
ELIGIBILTY
MINIMUM 18 YEARS
MAXIMUM 65 YEARS
PURPOSE
Construction, repair, purchase flat , renovation.
LOANAMOUNT
1)Income of your spouse/ your son/ daughter living with you, provided
they have a steady income and his/ her salary account is maintained with
SBI.
2) Expected rent accruals (less taxes, cess, etc.) if the house/ flat being
purchased is proposed to be rented out.
3)Depreciation subject to condition.

SECURITY:
Primary:The loan will be secured by Equitable / Registered mortgage/extension of
mortgage of the land and building/flat for which the loan is to be sanctioned.
Collateral:If mortgage of the property being financed is not possible, Bank may accept,
at it discretion, security of adequate value in the form of Life Insurance
policies, Government Promissory Notes.
INTERESTRATE:
Base Rate: 9.70% .
REPAYMENTPERIOD:30 YEARS.
PROCESSINGFEES:
0.25% OR 1000/- Rs min. or 10000/-Rs.

Inspection:
The Bank will have the right to inspect, at all reasonable times, the
borrowers property by an officer of the Bank or a qualified auditor or a
technical expert as decided by the Bank and the cost thereof shall be borne
by the customer.
Insurance:
The house/flat shall be insured comprehensively for the market value
covering fire, flood, Earthquake etc.
In the joint names of the Bank and the borrower. Cost of the same shall be
borne by the borrower.

COMPARISION
UCOBANK

SBIBANK

ELIGIBILITY

MIN. 21 YEARS,MAX. 60
YEARS.

MIN 18 YEARS , MAX.

60 YEARS

REPAYMENT
PERIOD

25 YEARS

30 YEARS

PROCESSING FEES

0.5% OR MIN. FEES 1500/MAX. FEES 15000/-.

0.25% OR MIN. FEES

1000/- & MAX. FEES
1000/-

SANCTIONED
TIMING

4 DAYS

6 DAYS

PRE PAYMENT
CHARGES IN TAKE
OVER LOAN

NO CHAGES

2% CHARGES

UCO BANK

SBI BANK

INTEREST RATE

10.20%

9.70%

THIRD PARTY
GUARANTEE

NOT REQUIRED

REQUIRED

RESEARCH METHODOLOGY
OBJECTIVESOFTHESTUDY
To study the cost of home loans provided by the bank.
To know that which bank provide batter loan schemes.
To analyze the home loan schemes by UCO bank and SBI bank.
To know the customer perception about the home loan of UCO bank and
SBI bank.
To know the customer satisfaction level about home loan.
To analyze the history of UCO bank and SBI bank.
To study consumer preference for the above two mentioned housing
finance players.

SCOPEOFTHESTUDY
This study is analysis and comparison of home loans provided
by the UCO and SBI banks. It is helpful in analyzing the home
loan service provided to the customer and their comparison.
ResearchDesign:
DESCRIPTIVERESEARCHDESIGNto know the
ComparativeanalysisofhomeloanwithreferencetoUCO
bankandStateBankofIndia This helped us in having
enough provision for protection against bias and maximizes
reliability. Descriptive study, as its name implies, is designed
to describe something for example, the characteristics of the
users of a given product, the degree to which product use
varies with income, age, or other characteristics.

 DataCollectionMethod
PRIMARYDATACOLLECTION
Primary data was collected with the help Of questionnaire.
SECONDARYDATACOLLECTION

Uco Bank And Sbi bank report, Articles,

Newspapers, Journals, Magazines,
Handouts, Pamphlets Describing the banks.

SAMPLING
SAMPLE PLAN

QUESTIONNAIRE

SAMPLING METHOD

RANDOM SAMPLING

SAMPLE SIZE

25 each Respondents of UCO &

SBI

SAMPLE UNIT

Respondents in Jaipur

FINDINGS&DATAANALYSIS
UCOBANK
CUSTOMER OCCUPATION IN %

0.2
0.08
0.2

0.52

Business
man
Student
Govt.
employee
House wife
Other

SBIBANK
CUSTOMEROCCUPATIONIN%

12%
8%
24%

48%
8%

Business
man
Student
Govt.
employee
House wife
Other

2.Fromhowmanyyearsyouareassociatedwiththis
bank?
UCO BANK

32%

24%
44%

Less than
1 year
1-5 year
More than
5 year

SBI BANK

24% 32%
44%

Less than
1 year
1-5 year
More than
5 year

3.Howdoyoucometoknowaboutthe
homeloanschemesofthatbank?

UCO BANK

16%
24%

4%
56%

News
paper
Television
Internet
Other

News
paper
16% 4%
SBI 60%
BANK
Television
20%
Internet
Other

4.Areyouawareofthesetypeofhomeloans?

UCO BANK

24% 12%
40% 24%

Home
purchase
loan
Home
improve
ment
loan
Home
construct
ion loan
Land
purchase
loan

8%
20%
SBI BANK
48%
24%

Home
purchase
loan
Home
improvem
ent loan
Home
constructio
n loan
Land
purchase
loan

5.Areyouawarealltermsandconditionsofhomeloans?
SBIBANK
UCOBANK

28%
72%

YES
NO

32%
68%

YES
NO

6.Areyousatisfywiththeinterestratechargesbyyour
bank?

UCO BANK

13%
30%

57%

Strongly
agree
Agree
Disagree
Strongly
disagree

SBI 8%
BANK
28%

64%

Strongly
agree
Agree
Disagree
Strongly
disagree

7.Yourbankofferwhichtypeofservices?
SBI BANK

UCO BANK

40%

60%

Mobile
banking
Net
banking

24%
76%

Mobile
banking
Net
banking

8.Doyouagreethatyourbankloanprocessingisfast?
SBI BANK

UCO BANK

12%
24%

8%
56%

Strongly
agree
Agree
Disagree
Strongly
disagree

12%
32%

8%

48%

Strongly
agree
Agree
Disagree
Strongly
disagree

9.Doyousatisfywiththeafterhomeloanservicesprovided
byyourbankarebestascomparetootherbank?
UCOBANK

8% 8%
20%

64%

SBI BANK

Strongly
agree
Agree
Disagree
Strongly
disagree

13%
9%
22%

57%

Strongly
agree
Agree
Disagree
Strongly
disagree

10.Doesthecostofhomeloanisappropriate,accordingto
yourdemand?
UCO BANK

56%

44%

SBI BANK

Yes
No

52%

48%

Yes
No

11.Areyousatisfywiththeemployeesbehaviorofthebank?
UCO BANK

8%
16%

76%

Strongly
agree
Agree
Disagree
Strongly
disagree

SBI BANK

20% 4%
60%
16%

Strongly
agree
Agree
Disagree
Strongly
disagree

12.Doesthebankgiveanydiscountuponloanservices?
UCO BANK

52%

48%

SBI BANK

Yes
No

12%
88%

Yes
No

13.Areyousatisfybythetimetakeninsanctioningtheloan?
UCO BANK

20%
80%

SBI BANK

Yes
No

56%

44%

Yes
No

14.Haveyoufaceanydifficultyduringtakingtheloan
UCO BANK

28%
72%

SBI BANK

YES
NO

52%

48%

YES
NO

15.Whichgradeyouwanttogiveofhomeloan
schemesofthebank?
UCO BANK

36%

4%
60%

SBI BANK

Excellent
Good
Average
Below
average

4%
52%

44%

Excellent
Good
Average
Below
average

SUGGESTION

Daily reducing option should be introduced.

Relevant information should be provided to customers time to time.
Reduce the interest rate 10.20 % to 9.80%.
Reduce the processing fees 1500/- to 1000/- rupees.
People who deal with customers should have complete knowledge about
the housing finance industry.
Reduce the EMI 923/- rupees to 880/- rupees.
Repayment period increase the 25 year to 30 year.
Gave the advertisement in the newspaper in month one to two week.
Gain the customer satisfaction level.