Industry sign banking georgia ppt later
since friends I welcome you to the series on the BCB a program now this topic is on the Erika loans so return loans general the bank activities to take deposits from the public and to lend public again we are only doing the intermediary work okay but when we take the deposits so we will give it to the public further when the loans also the loans are of two types to the individuals and to the corporates for individuals again based on fatigue consumption needs and for production activity also the consumption loans they are essentially they do not generate any income on their own whereas for the enterprising or business enterprises they generate income but the retail loans basically they are only for consumption or for their luxury purpose they will be using these retailers during the last two to end of the kids there is a lot of stress on the retail credit so everybody every bank wants to generate retail great portfolio but their income generation because it's a very stable income and the the return period vibe and satins is insisting on the return credit because the income of the general public it's increasing in general last two to enough decades the income of the formers employees the employers employees and that the income of other business people also is growing so with that income generation additional income deduction people want additional assets maybe they want the house they were they weren't card maybe they want a vehicle or maybe they want to buy certain the consumer articles so with this this little crate portfolio demands its increasing gradually in addition to that the population is the youngest population in the country's growing fast the population of India is I think it is Angus population in the world in the age group of fight into thirty five forty years the age group is very prevalent in India so this in that generation their attitude is to buy now and pay later not like Indian mentality for later Indian mentality that save now and by later that culture is no longer existing now now the center generation they want to buy now I'd pay later so that culture is gradually developing there's a Western culture is gradually developing in India so with this the consumerism is also growing so everybody wants to buy certain articles maybe everybody wants to have his own house is one car because it is a status symbol to have a vehicle or to have a whole house so there is a status symbol and the inertial to this Government of India is also government is also giving lot of focus for their home loans they are giving lot of concessions they are giving a lot of tax benefits maybe further ATC benefits or income tax benefit or the interest on the housing loan is also exempted certain to certain extent of two lakhs is exempted so with this lot of the push is coming to the home loan sector I know and everybody wants to buy house because the government is giving focus and they want to satisfy their own lifestyle because everybody wants to have a one household car like so even every my neighbor is having a car so I also want to have my neighbor is having a aiken the house I also want to have so the designs are growing so with this what is happening is banks are pushing more and more for the retail loans and earlier probably our previous generations they used to be giant families in one house they used to be my great-grandpa parents grandparents parents and children all were staying together but now with the new new new era jobs people are shifting to different locations now the nuclear family is only a husband wife and children so only nuclear families are increasing with that now they want a house for individually for the nuclear family and later only when host used to be sufficient about 10 families now one small family up for four people they want to only have one house so the the traditions the cultures are changing gradually so let us see what are the what are the retail credits actually what are the things that are included in the retail credit main focus 50% of our retail loans it is from the retail the housing loans banks are focusing on the data our housing loss because they're about 50% of our law retailers belong to housing loans and the 30% is the vehicle loans the 30 and a 50% 80% it is only took segments they constitute retail loans they rest all may be consumer durables financed against consumer durables the credit cards and education loans and lower gas properties personal loans goal loans and several other schemes are also there but the majority is housing loans and the vehicle loans you call it as a auto loans audio car it is awake he loans so these are the major segments in the retail segment okay now who are the target groups for the lose all your salary class all your employees maybe government state government employees self and central government employees or quasi government employees all are the employees who are working in the public sector undertakings who are working in the private sector and entities all implies that our eligible for the retailer's nation do is self-employed people may be small carpenters may be there are small businesspeople small grocery shop people are may be doctors architects maybe you are lawyers all these people are eligible for the retailers for the vacant lives again same people again salaried and self-employed of the target group for the littlest and personal loans mostly essentially these person holes are given to the salaried class but in some cases some months they are giving to the self-employed people also and traders and small traders and business people also they are giving but answer essentially the personal laws are given to the salaried class 90% of the loans of personal loans are given to the salaried class okay in addition to these credit cards maybe they're salaried class again and self-employed professional traders business well and corporate accounts everybody they are giving the credit cards so these are the essential target groups for the retailer's so let us see what are the general in the retail loans grants to use at certain terms so I just I would like to familiarize you with those terms first is equated monthly installments the paid on monthly installments means the installments are common throughout the period of the loan suppose the borrower has taken a loan housing loan the installments are common throughout his life that is a suppose if the loan is for 20 years the installments are also equally divided in the 20 years that is the equated monthly installments and fix it rate of interest is throughout the period of the loan suppose he is taking a loan today next five years the loan in is safe it will not change at all suppose as on date it is a 9% rate of interest so that will continue till the loan is repaid at 9% only so there is a fixed set rate of interest and again floating rate of interest every once in a quarter some cases was that's a once in three months are in some cases once in six months are once in one year so they'll be changing the rate of interest will blinking to certain rate so it could be the intial our rate banks enchilada rate or it could be my burn rate or it could be live at it so they will be changing depending upon the change in the rate of interest so the rate of interest is changing depending upon a benchmark rate that is the floating rate flat rate of interest is today suppose he has taken over lakh rupees they will be charging interest for the entire world lakh rupees for the entire period suppose a five-year spirit that they have given for the entire five years on one lakh rupee they will be charging rate of interest here not only supposed to operate at 10,000 10,000 10,000 like this your bed they will not consider that they'll be charging interest on the initial amount per sanctioned unit Shalem won't disbursed suppose well luck is disbursed today they'll be charging interest on the 1 lakh at respect of the person who has paid it or not they'll be charging data filters this in fact this is a most of the private NBF sees they'll be charging flat rate of interest because they want to attract the more customers they'll be giving the flat rate of interest because if they offer floating rate of interest that will not work out for them flat rate of interest if they convinced ok banks are giving at 11 percent I am giving you a flat rate of 9 percent you come to me so the NBF sales will be more and more focusing and this offering this rate but in the process the borrowers are losing because they'll be paying on the full amount of what you learn what sanctioned not on the reduction basis but banks charge interest on the reduction bases that is advantageous to the banker deserve our words but when the mbf sees belkin less forty with this offering the flat rate of it has a lower rate but they are not they do not know what will be implications on that okay and the front end and interest is they'll be charging interest a friend suppose they are releasing one lakh rupees today they'll be charging interest for the entire four-year period today itself note it for the entire month that means one lakh rupees is alone for five years suppose it is the debt of industries at 30,000 rupees they'll charge take upfront thirty thousand rupees and daily is only seventy thousand rupees in the books one lakh rupee is there but thirty thousand or India they have taken this is the front end and interest and one more certain other times I am using it in the next slides gross income is total income total salary suppose the employee is there as police pays what is the total salary gas salary so that is a gross salary I take home please suppose they an employee has taken certain loans he has to pay installment on that so an after deduction deduction of all these installments whatever is amount left over that is called take-home pay cut it so grass wasn't a grass say income take-home pay example suppose they and imply total income is twenty four thousand rupees these deductions are about fifteen thousand rupees all the loan installments fifteen thousand rupees maybe he's a vacant loan housing loan maybe is a PF loan or income tax all these reductions put together about 50 in thousand rupees so inlet taken place means how much he is taking to the home after reduction of all the installments it is ten thousand rupees is a net take-home pay so percentage of take-home pays so if you divide by ten thousand rupees divided by twenty five thousand it comes to forty percent in all our retail products we consider the take-home pay as a criteria for installment fixation our retirement fixation all the banks will be considering this take-home pay as a criteria for candidates tournament okay then how what is the process here first you take an application from banks will be taking an application form for each purpose maybe it is a housing loan housing loan application form a separate vehicle loan list make a loan application something for me separate like this education loan miss the education loan application is flawless so what is the application call a relevant application form they'll be giving it you they'll be filling it in along with the two passport photos they'll be giving it to the bankers yes in addition to this banks will be collecting certain other documents also along with the application form what are the documents they will be taking income tax returns some banks take her to year's income tax return some banks take three years returns okay they'll be taking the passport the copy in the case passport is available passport Farrar does provide in to proof they'll be taking passport they'll be taking salary slips last six months what are the salary slips what are the salary slips they'll be taking plus they'll be taking pan card capacity they'll be taking other card they'll be taking employment certificate also for how long that I'm that a borrower is working that applicant is working in a particular organization so this will give the employer information how the the applicant whether he is working for the last ten years one year or two years that will give an information in addition to that bank statement whatever is a bank statement his own bank statement where his salary is credited are very various income is created so those things Bank a statement most of the bank's they take it for one year some banks take for six months also so this will give you an information where it's allocated how much salary is created and what are is savings from this salary and what are these deductions what how many installments are going how many Yalies are being paid whether it is paying on time on time or not all these things will be considered in the bank statement then assets enabled us what are the assets and liabilities what is loans water is a Bertie's all those details will be given in the assets and liabilities then in addition to this suppose if he is taking for a housing loan that valuation of the particular property particular house will be taken by the from the approved valuer of the bank and legal certificate also they will be taking they'll be verifying the records of the whether the particular title Leafs are correct or not whether the the borrower or whether the seller is having that that title for selling it or not all those details will be verified by the Advocate and you will hear given an opinion on that and the suppose if he is buying a the applicant is buying a vehicle so for that vehicle he is submitting a quotation from an authorized dealer so suppose if he is binding her house for that the agreement is may be flat her house or a plot whatever is that he is taking entering into an agreement with the seller so for that the copy of that agreement will be taken here so all these were documents essential for considering the proposal so these are essential after Koerner after taking the proposal then the banks will be having a personal interview with the borrower that applicant what is the to cross-check the information whether the information given in the application is correct or not those details will be checked there doing internal process he'll interview the applicant what are these family sources what is his income everything all the details will be considered during the interview process then they will be taking this they'll go through to the EZ employers employers residence in place place also they'll go to their residence also they'll verify whether that is the information given in the application or not those applications those details for also we are referred to by the bankers then they'll go when they inspect the house they will find out how the living standards of that particular person whether is having a TV whether it is the house is well are not very staying all those details are given in this visit report and that can make you a veloute report so they they'll be considered what is this total income how many side installments have been deducted so what is the lower position what is the net take-home pay what is the gas they put all those details will become based on that banks will be constructing a proposal then after satisfying all this thing they will issue a mass and she later and then they verify the indeed the property details also they'll be very fine legal certificate also they will be very fine then then after the after satisfying all this issues then they will give a sanction later they'll come with the documentation and they will register the property documents also then all the documents will be signed then they'll disperse the plus loan so this is the process for generally for the retail loans then let us discuss about educational loans why we the banks are translating educational loans means nowadays the education he has become very very expensive very costly to study a engineering course it requires 10 lakh rupees suppose your doctor it requires 50 lakhs rupees and see it requires about four five lakhs rupees like this but the income of the people is not sufficient to take care of this so they'll borrow from the banks to complete this education who are all eligible in this you should be an Indian national you should be Indian citizen then only is eligible for it taking a host education alone and you must have secured an admission in the college or i
structor what are the course is eligible all your post graduation like ba ba CMS am come all these courses are eligible and apart from that you are see a professional courses like engineering or doctor or see all those courses are also eligible and special courses special professional course like your IITs I am I aims and reputed Institute like excel RI and but has installed excel in aft all this is reputed colleges are also they will be securing your admission and some highly specialized programs like aeronautical engineering pilots training shipping all those courses are also eligible for taking alone then some people may go to out of country also faster day maybe they can go for a maze or they can go for MBA they can go for MCA also they and apart from these the courses they can go for ISM job oriented courses are also there in outside the country further for those courses also the banks can give finance but how much we can give what is the expenses we can consider under the housing loans these education loans we can consider we can give everything under this education loan including a fee for the college hostel fee is boarding lodging the expenses that computer is their books stationery all these items can be considered that how education loans how much we can give there is no restrictions an amount up to some banks have given up to 75 lakhs also for education loans but for considering and the priority sector only 10 lakhs is eligible up to 10 lakhs loans are eligible to be considered a priority sector they rest all you can give banks can give you any amount of loan there is no restriction the more depending upon the requirement banks can give you any amount up to 4 lakhs no margin is required no margin without margin dance can give above for let's suppose if the education loan is being given for the studies in India 5% only is a margin and outside the country it is about 15 percent is a margin their own contribution should be 15 personal time security what is securi up to 4 lakhs no security is required up to 4 lakhs if the loan is level 4 lakhs no security is required above 4 lakhs to 7.5 x 1 personal guarantees sufficient personal guarantee no mortgage is required nothing is required above 7 point 5 lakhs maybe if it is a the borrower has to give a fixed deposit or they can give pledge of mortgage of the house re only the property they can give as a security first of all 720 fellows security is a must and prepayment is they've given a convenient very easy installments after completion of the course suppose if they borrowed the applicant is going for four years then the fifth after one year that is means from fifth year giving a moratorium of one year they can start the installments after fifteen fourth year they can continue up to fifteen years 15 years there's a long period they have given to play them in installments in convenient installments and what is the rate of industry depends from bank to bank it varies from a 10% 11% to 12% also the four annum the banks are considered depends on than to bank okay no additional benefit is during the study period also by the power they have the income they can pay the interest and they can get income tax benefit also on that end apart from that there is a concession of 1% pay back by the bank itself so there is a benefit to the borrower and for personal loss another work idea another category is personal loans suppose I require the Argent money for some my purpose may be for some urgent educational purpose or urgent emergency emergency purpose I repair some money no other purpose is required here banks can consider up to five lakhs rupees also some banks are giving more and more remote also here the period given is up to say five years the banks can give the period here the no purpose is required for my own purpose the banks are giving the loans here mostly they are giving fairly solid class are wherever the income is assured every month they were the income those people also are eligible for the personal loans even for business and profits also some banks are giving some banks give up to five lakhs rupees 40 emergency a personal loans and here the income of first powers or maybe the son the income also can be clubbed together to arrive at the facility and here documents required are again whatever documents you have listed out that's the application form the income proof residential proof Vanguard kvz all these applications in addition to that employment certificate all those details adequate and the security required is some banks depending upon the net worth of the borrower the banks are also taking over one or two person's personal guarantee another segment is housing loan this is a major segment of the a retail loans for the banks for what are the purposes we can give for purchase of the plot I am construction there on not only for plot we don't give it but for purchase a plot and construction of a house there are purchase of a new flat or purchase of a volt flat the renovation of the house so all those day activities can be considered for the housing loans some banks are giving top applause also for existing your houses so what is on them here it varies from bank to bank some banks are giving up to five crores also in this there is no restriction on this but only three criteria is to be considered and the priority sector as we discussed in the last class the priority sector classification is up to 35 lakhs loan with a total cost of 40 Velux the cost should not being more than 45 lakhs and the loan should not be more than that relax in cities metropolitan cities and in other cities it is 35 lakhs is the total cost and 30 lakhs 30 lakhs is the cost and 25 lakhs is the loan other cities to be considered in priority sector but outside the priority sector banks keeping in you any amount there is no restriction on this what is eligible to here for salaried class again up to some banks are giving up to 6 times that means her 6 years salary also they can give that's my 60 months salary they can give as hours in loans up to 68 months are some banks are given 72 months salary also and if it is a professional at self-employed up to for a 3 years income they can be considered for the housing loans based on the income tax it is there will be finally that income also can be considered what are the documents again all these documents whatever we listed out earlier all those dog sorry here you take property valuation certificate legal title certificate all those documents are required and the securities mortgage of the house here ma degrees of that whatever the plot our house and our flight all those properties are mortgaged whatever loan has been given that activate that asset has to be given as a security okay and another segment is away kilos so banks are giving loans for purchase of two wheeler there's no more bike a scooty or whatever is that they'll be giving loans and the four wheeler also they will be giving they can give a new as well as old also for a second and we can also they will be giving there is no restriction on this amount okay upto depending upon the income of the applicant up to seven years the repayment can be given but only the second nine vehicles only three years old equipment can be given and here only 65% of the cost of the vehicle is given in the second and vehicle not more than that so when I say this is a cost it cost includes total on the road including insurance everything that is a cost again weird for whom we are giving these laws what implies at a salaried class may be business class everybody we are giving these loans and here when we Club the income we arrive at the income club the income of his son suppose if the applicant is a son so his father income in can be clubbed or his mother income can be clubbed and are a son income here can be club or wife income so this the income of this dependents can be clubbed together and what we what are the documents we require here again same documents what we are discussed at in that is income proof give a see documents are to be taken plus a pan card other card plus your quotation on the I said to be purchased may be very cool car or motorbike and what is security error hypothecation on that vehicle is a security here and the under segment is a consumer finance so similar is the case here for purchase of for maybe electronic goods will be TV or oh right goods like you are a washing machine all those things can be considered at this okay so these are the general consumer finance again we will be doing it alright now we have come to the end of that session I am just discussing you couple of questions here so which one of the following products is a lot a detailed on product weight kilos town deposits personal loans home loans which even is not correct one so term deposits is the okay so town deposits is not it is a deposit not loan so it is a correct answer second one is the fixation of repayment period on which criteria is dependent on the minimum take-home pay after all deductions that will be considered as for the purpose of repayment installment fixation so these are the retail loans so let us come to the end of this session so in the next session we'll be discussing some other subject Thank You friends thus tough luck to you okay
