This document summarizes a study on housing loans provided by State Bank of India (SBI) to Non-Resident Indians (NRIs), with a focus on SBI's NRI home loan product. The study had three objectives: 1) compare SBI's home loan variables to other banks, 2) identify communication channels to inform NRIs, and 3) determine what criteria customers use to select financial institutions. Key findings indicate SBI offers the lowest interest rate, monthly installment, and fees. The best communication channels are newspapers, magazines, email and television. Main selection criteria for customers are interest rate, repayment period, processing speed and monthly installment.

1. A study on housing loan with
special reference to SBI NRI
home loan
Presented by:-
Harshita Narayan
Roll no. - 50013

2. CONTENTS
1) Objective of the study
2) Company profile
3) Product profile
4) Methodology
5) Analysis of data with findings
6) Recommendation

3. Objective of the study
1) To compare different variables of the home loan of
different banks in order to understand the present
status of SBI in the market.
2) To investigate specific communication channel
through which NRI and NRI relatives can be
informed about the SBI NRI home loan products.
3) To investigate the criteria by which customers select
their financial institutions. So, that the bank must
excel on these criteria to project a good image.

4. Company profile
 State Bank of India is a multinational banking and
financial services company based in India.
 It is a government owned corporation with its
headquarters in Mumbai, Maharashtra.
 SBI has 14 regional hubs and 57 Zonal Offices that are
located at important cities throughout the country.
 It was named the 29th most reputed company in the
world according to Forbes 2009 rankings

5. PRODUCT PROFILE
(SBI NRI home loan)

6. SBI PROVIDES HOME LOAN TO NRI
FOR THE FOLLOWING PURPOSE
 Purchase of new home in India
For acquisition of residential accommodation in
India.
 Home improvement or extension
For repair or renovation of existing residential
accommodation.
 Purchase of Land or Home furnishing and consumer
durables
Investment made from own resource during the
preceding 12 months of purchase of
property/construction/repairs/extension of house will
be reimbursed by the Loan amount .

7. SBI NRI home loan variants
 SBI – Maxgain
It provides home loan in the form of current
account overdraft, where you can park your surplus
funds and withdraw them in times of need from SBI.
 SBI – Realty
It provides home loan for purchase of land for house
construction.
 SBI – Home equity
It provide personal loan to the banks home loan
customers against the security of their house
property

8. Methodology
 Product – SBI NRI home loan
 Geographical market – Patna district
 Sample size – 102
 Research tool – Structured questionnaire, focused
group discussion and use of secondary
data source .
 Analysis tool – MS Excel , SPSS
 Target population -- The target population comprised men and
women over 21 years old.

9. Objective 1
To compare different variables of the
home loan of different banks in order to
understand the present status of SBI in
the market.

10. INTEREST RATE OF DIFFERENT BANKS
ON A LOAN AMOUNT OF 20 LACS
9.4
9.6
9.8
10
10.2
10.4
10.6
10.8
11
SBI Axis bank HSBC HDFC Canara
bank
Bank of
Baroda
9.95
10.75
11
10.525
10.25
10.5
INTEREST RATE(in %)

11. PROCESSING CHARGE OF DIFFERENT
BANKS ON A LOAN AMOUNT OF 20 LACS
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
20000
5000
10000
20000 20000
10000 10000 10000 10000 10000
PROCESSING CHARGE(in Rs)

12. COMPARISION OF DIFFERENT BANKS ON
THE BASIS OF PAY BACK PERIOD
0
5
10
15
20
25
30
SBI Axis bank HSBC HDFC Canara
bank
Bank of
Baroda
ICICI
30
25 25
10
25
15 15
Pay back period(in years)

13. EMI(Equated monthly instalment )on a
loan amount of Rs 20 Lacs for 20 year
18500
19000
19500
20000
20500
21000
SBI Axis bank HSBC HDFC Canara bank Bank of
Baroda
19234
20305
20644
20035
19633
19968
EMI(Equated monthly instalments,in Rs)

14. FINDINGS
 SBI provides a pay back period of 30 years which is
longest as compared with other banks.
 SBI charges lowest interest rate as compared with
other banks.
 SBI charges lowest EMI as compared with other
banks.
 SBI charge a processing fees of a 20 Lacs which is
again the lowest amount charged.

15. Objective 2
To find out the specific communication
channel through which NRI and NRI
relatives can be informed about the SBI
NRI home loan products.

16. 14.71%
55.88%
3.92 %
7.84 %
17.65 %
Which magazine do you read regularly
The Economist
India Today
Outlook
Frontline
Others

17. 39.21 %
13.73 %7.84%
7.84%
13.73 %
0 %
17.65 %
Which newspaper do you read regularly
Times of India
Hindustan times
Danik Jagran
Hindustan
Prabhat Khabar
i-next
others

18. 32.35 %
5.88 %
3.92 %
29.42 %
20.59 %
7.84 %
Which TV channel do you watch mostly
Star Plus
Sony
Zee Network
Colors
Doordarshan
Others

19. 75.5%
12.75 %
6.86 %
4.9 %
Do you check mails regularly
Daily
Once in a week
Once in fortnight
Rarely

20. Findings
Type of media Media vehicle Specific media
vehicle
Percentage
Print media Newspaper Times of
India, Hindustan
times and Danik
Jagran
66.67 %
Magazines India today,The
Economist and
Frontline
78.43 %
Electronic media Internet E-mails 75.5 %
Television Star Plus,Colors
and Doordarshan
82.36 %

21. Objective 3
To investigate the criteria by which customers
select their financial institutions. So, that the
bank must excel on these criteria to project a
good image.
Research tool:- Factor analysis

22. The respondents were asked to indicate their degree of
agreement with the following statements using a 5-
point scale(0=not important , 5=very important)
1) V1= Interest rate
2) V2= Pay Back Period
3) V3= Speed of Processing
4) V4= Equated monthly instalment
5) V5= Loan to value ratio(LTV ratio)
6) V6= Processing fees/other charges
7) V7=Eligibility criteria
8) V8=Number of documents
9) V9= Personal accident insurance

23. Total Variance Explained
Comp
-onent Initial Eigenvalues Extraction Sums of Squared
Loadings
Total
% of
Variance
Cumulative
% Total
% of
Variance
Cumulative
%
1 Interest rate 1.417 15.745 15.745 1.417 15.745 15.745
2
Pay back
period 1.225 13.610 29.355 1.225 13.610 29.355
3
Speed of
processing 1.175 13.054 42.410 1.175 13.054 42.410
4 EMI 1.049 11.656 54.065 1.049 11.656 54.065
5 LTV ratio .991 11.009 65.075
6 Processing fee .911 10.117 75.192
7
Eligibility
criteria .791 8.790 83.982
8
No. of
documents .742 8.248 92.230
9
Personal
accident
insurance
.699 7.770 100.000

24. FACTORS Factor 1 Factor 2 Factor 3 Factor 4
V3 Speed of Processing 0.714 Convenience
benefits
V7 Eligibility criteria 0.732
V8 Number of
documents
0.447
V1 Interest rate 0.744 Monetary benefits
V4 Equated monthly
instalment
0.673
V5 Loan to value
ratio(LTV ratio)
0.710 Added benefits
V9 Personal accident
insurance
0.710
V2 Pay Back Period 0.781 Duration benefits
V6 Processing
fees/other charges
0.616

25. Findings
The result of factor analysis showed that
interest rate, pay back period ,speed of
processing and equated monthly instalment
are the four main criteria by which customers
select their financial institutions.

26. KEY FINDINGS
SBI charges lowest interest rate,EMI and
processing fee and provides maximum
repayment period of 30 years.
The result of factor analysis showed that
interest rate, pay back period ,speed of
processing and equated monthly instalment
are the four main criteria by which customers
select their financial institutions.

27. Recommendations
 It should tie up with overseas placement agencies like
alankar manpower to get a prospective list of customers.
 It should build more apartments like crystal city specially
for NRI and their relatives.
 It should conduct more events like NRI meet and travel
agent meet to create awareness.
 SBI should advertise through hoardings near passport
office,airport and in gurudwara.

28. Continued………..
 It should provide advertisement of SBI NRI home loan in India
Today, The Economist and Frontline magazine in print media.
 SBI should provide advertisement of SBI NRI home loan in
times of India, Hindustan times and Prabhat khabar in print
media to capture the attention of the target audience.
 It should advertise in star plus, colors and Doordarshan in case
of electronic media.
 The result of factor analysis showed that interest rate, pay
back period ,speed of processing and equated monthly
instalment are the four main criteria by which customers
select their financial institutions. So, SBI bank must excel on
these criteria to project a good image.

29. Limitations
 The sample size is restricted to 102 respondents due to
time limit.The study is conducted considering the
prevailing condition which is likely to change in future.
 Due to time and costs constraints the study was limited
to Patna, Bihar only.
 Some of the respondents were not willing to responds to
our questionnaire.
 Few respondents were hesitant while answering the
questions.