PROJECT REPORT ON

“ A STUDY ON _HOME LOAN OF ICICI BANK"

In partial completion of the degree of

Bachelor in Commerce (Accounting & Finance)

PROJECT GUIDE

Principal Prof. Basukinath Pandey

SUBMITTED BY

Name: RAHUL VIJAY GUPTA

Reg. no: 2060011

Sainath Education Trust’s

Rajiv Gandhi College of Arts, Commerce & Science Vashi, Navi

Mumbai, Maharashtra-400703
 DECLARATION

I,RAHUL VIJAY GUPTA,of Bachelor of Commerce (Accounting and

Finance) (Sem-VI), hereby declare that I have completed the project
report on “"STUDY ON HOME LOAN OF ICICI BANK"” in the academic
year 2022-23.The information submitted by me is true and original to the
best of my knowledge.

Date of Submission:

Name:RAHUL GUPTA

Reg No:2060011
 CERTIFICATE

This is to certify that RAHUL VIJAY GUPTA of Bachelor of Commerce

(Accounting and Finance) Semester VI (2022-2023) has successfully
completed project report on "STUDY ON HOME LOAN OF ICICI BANK” in
the college as laid down by the college authority.

Principal

Project Guide/ External Examiner

Internal Examiner
 ACKNOWLEDGEMENT

To list who all helped me is difficult because they are so numerous and the depth is
so enormous.

I would like to acknowledge the following as being idealistic channels and fresh
dimentions in completion of the project.

I take this opportunity to thank the University of Mumbai for giving me chance to do
this project.

My sincere Gratitude to Rajiv Gandhi College of Arts, Commerce and Science, Vashi
for providing wonderful learning environment and physical facilities for my project.

I would like to thank my Guide & Prof. Basukinath Pandey for providing the nessary
facilities and guidance required for completion of this project.

I would also like to express my sincere gratitude to Asst. Prof. (KALPANA A.

SONAWANE), whose support and care made my project successful.

I would like to thank my College Library, for having provided various reference books
and magazines related to my project.

Lastly, I would like to thank each and every person who directly or indirectly helped
me in the completion of the project specially my Parents and Peers who supported
me throughout my project.
SR NO. TITLE PAGE NO.

1 INDIAN BANKING SYSTEM 7

2 ICICI COMPANY PROFILE 13

3 PROJECT 19

4 FINDINGS 39

5 RECOMMENDATIONS 40

6 ON THE JOB TRAINING 41

7 OBJECTIVES 42

8 TARGETS 43

9 ACHIVEMENTS 44

10 LIMITATIONS 45

11 LEARNINGS 46

12 ANALYSIS 59

13 CONCLUSION 60

14 BIBLIOGRAPHY 61

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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 showing to take a home loan but they are so confused
what the necessary requirements to get a loan.
However, my survey 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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 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.

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 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.

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 foreign bank.

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

8
 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.

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List of Public Sector Banks in India is as follows:

• Allahabad Bank
• Andhra Bank
• Bank of Baroda
• Bank of India
• 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
• UCO Bank
• Union Bank of India
• United Bank of India
• Vijaya Bank

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 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
• Bharat Overseas Bank
• Catholic Syrian Bank
• Centurion Bank of Punjab
• Dhan Laxmi 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
• UTI Bank
• YES Bank

11
 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 lacklustre image.

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 specialized 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).

12
 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.
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 feebased 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

13
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.

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

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).

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 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 ICICI BANK

HOME LOAN PRODUCTS OF ICICI BANK

ICICI Bank home loan provides 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

• Conveniently pay off the loan over a period of up to 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.

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 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.

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.

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

19
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.

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 extent 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. Money Saver would be available at Floating Rates
only & Fixed EMI per lac per month would be applicable. IT certificate in the case of
Money Saver is not issued. Money Saver can be availed by Resident Indian whether
Salaried or Self- Employed.

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 Top-up 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 at least 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.

Loan on phone:

Loan On Phone is a pre sanctioned loan. It 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.

21
 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
Home Equity Loans can be availed by Resident Indian who are Self-employed and
also by Non- Resident Indian who are Salaried.
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. Whenever he deposits funds into the account, they go towards reducing
the outstanding balance in the account.
It offers the following benefits: -
• 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.

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 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

• 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 dependents, 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 dependents, 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

• 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
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 • 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

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.

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 Disbursement Documents
Property documents (as per P&D for respective states and as asked by empanelled
lawyers for individual cases)
• Facility Agreement
• Disbursal Request Form
• Cheque Submission
• 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

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 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, 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 without increasing monthly outflow as EMI. The structuring considers 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 Suited for young
professionals.

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

Professionals.

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 Flexible Instalment 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

• 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

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
favourable 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.

29
 Smart Fix 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. 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.

30
 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 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 instalments (EMI).

What is an EMI?
: -An EMI refers to an equated monthly instalment. 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 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.

31
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 (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 you 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.
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.

32
 Key Benefits of Home Safe Plus:

• No medical check-up
• 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)

• Multiple applicants can be covered under the same loan

• Simple application form

Key Benefits of Home Assure/Health Assure

• Life Cover from Home Assure 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 Home Assure and Critical
Illness Cover from Health Assure
• Dual tax benefits, Section 80C benefits under Home Assure, Section 80D
benefits under Health Assure
• Simplified claim procedure.

FINDINGS
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 somewhat 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.
33
 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 somewhat 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 be according to the
customer needs.

34
 ON THE JOB TRAINING

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 submitted 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.

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 something 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.

35
 TARGETS/ TASKS

I have to approach the customer with in the bank and outside 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 strategies 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.

3. Relationship marketing
It is also one of the best marketing strategies. Direct approach is only belonging 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.

36
 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

th
4 week 3 leads
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

nd
2 week 7 leads
rd
3 week 1 lead
th
4 week 6 leads
In The Month of August
1st week 5 leads
2nd week 2 leads
3rd week 3 leads
4th week 6 leads

37
 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.

38
 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.

1.AGE
{.} 18-25
{.} 26-35
{.} 36-45

39
 {.} 46 a nd Abo ve

2.GENDER
{.} MALE
{.} FEMALE {.}
OTHERS

Particulars No. of Respondents Percentage

18-25 58 68.2
26-35 18 21.2
36-45 8 9.4
46 and above 1 1.2

40
 3.OCCUPATION

{.} Student
{.} Salaried Person
{.} Business {.}

Others

Particulars No. of Respondents Percentage

Male 60 70.6

Female 25 29.4

Others 0 0

4. Which income group do you belong? (Per Annum)

41
 {.} Below 2lakhs
{.} 2-4lakhs
{.} 4-6lahs
{.} 6lakhs and Above

Particulars No. of Respondents Percentage

Below 2lakhs 48 59.3

2-4lakhs 18 22.2

4-6lakhs 5 6.2

6lakhs and above 10 12.3

42
 5. Do you own a home?
{.} Yes {.} No

Particulars No. of Respondents Percentage

Yes 51 61.4

No 32 38.6

43
 6. Have you ever heard about the term home loan?
{.} Yes
{.} No

{.} Maybe

Particulars No. of Respondents Percentage

Yes 63 75.9

No 15 18.1

Maybe 5 6

44
 7. If yes, do you want home loan?
{.} Yes
{.} No
{.} Maybe

Particulars No. of respondents Percentage

Yes 14 17.1

No 49 59.8

Maybe 19 23.2

45
 8. If No, have you ever taken home loan?
{.} Yes

{.} No
Particulars No. of Respondents Percentage

Yes 25 30.5

No 57 69.5

46
9. Are you aware of home loan product of any of the following
banks?
{.} ICICI
{.} HDFC
{.} PNB

{.} SBI
{.} Others

Particulars No. of Respondents Percentage

ICICI 22 27.5

HDFC 19 23.7

PNB 4 5

SBI 22 27.5

OTHERS 13 16.2

47
 Particulars No. of Respondents Percentage

ICICI 17 21.5

HDFC 20 25.3

PNB 5 6.3

SBI 25 31.6

OTHERS 12 15.2

10. Which banks home loan product do you find most reliable?
{.} ICICI
{.} HDFC
{.} PNB
{.} SBI
{.} Others

48
 11. While taking home loan, which things attract you the most?
{.} Attractive Interest Rates {.} Service provided
{.} Schemes
{.} Pay-back periods
{.} Other

Particulars No. of Respondents Percentage

Attractive Interest Rates 35 42.7

Service Provided 14 17.1

Schemes 12 14.6

Pay-back periods 7 8.5

Others 14 17.1

49
 Analysis

The 1st graph shows us about the age group of people, majority of them belong between 18-
25years old and 26-35years old. The 2nd graph represents the gender group of people who-
ever have filled the form and majority of them were Male. The 3rd graph represents the
occupation of the people, most of them are students along-side salaried person, business
person and others. Next graph represents the Annual Income group of the people and the
majority group is below Rs. 2lakhs and between 2-4lakhs.

Most of the people are the owner of their home. As asked in the survey majority of them
have heard about the term home loan. When I asked them that will they ever apply for home
loan service, majority of them answered in no. Just in curiosity I asked that have they applied
for home loan before, again everyone reverted no. When asked are they aware of home loan
product of any of the following banks- ICICI, HDFC, PNB, SBI, Others majority of them
went with 2options ICICI and SBI bank. The next question goes from my side was which
banks home loan product do you find most reliable, majority of the people replied again with
2options SBI and HDFC.
Lastly, I asked while taking home loan which things attract you the most? Out of 100%
(42.7% of them which means approximately out of my 82 responses 35 people went with
Attractive Interest Rates).

50
 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 somewhat 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

51
 BIBLIOGRAPHY

https://www.rba.gov.in

https://m.rbi.gov.in

https://www.bankbazaar.com/home-loan/different-types-of-bankloans-in-india.html

https://rbi.org.in//scripts/banklinks.aspx

https://www.goodreturns.in/2018/06/20/nationalized-banks-listgovernment-banks-india-
723723.html

https://www.kinghtfintech.ciom/knowledge-
center/articles/learning/structure-of-the-indian-banking-system

https://rbidocs.rbi.org.in/rdocs/Content/pdfs/71207.pdf

52
 Annexure

1. AGE:

o 18 – 25

o 26 – 35

o 36 – 45

o 45 – above

2. GENDER:

o MALE

o FEMALE

o OTHERS

3. OCCUPATION:

o STUDENT

o SALARIED PERSON

o BUSSINESS

o OTHERS

4. Which income group do you belong?(Per Annum)

o Below 2lakhs

o 2 – 4lakhs

o 4 – 6lakhs

o 6lakhs and Above

53
5. Do you own a home?

o Yes

o No

6. Have you ever heard about the term Home loan?

o Yes

o No

o Maybe

7. If yes, do you want home loan?

o Yes

o No

o Maybe

8. If No, have you ever taken home loan?

o Yes

o No

9. Are you aware of home loan product of any of the following banks?

o ICICI

o HDFC

o PNB

o SBI

o Others

54
10. Which banks home loan product do you find the most reliable?
o ICICI

o HDFC

o PNB

o SBI

o Others

11. While taking home loan, which things attract you the most?
o Attractive Interest Rates

o Service provided

o Schemes

o Pay-back periods

o Others

55