Home loan from OBC

1. AN ASSIGNMENT OF PROJECT
APPRAISAL
ON
Home Loan

2.  Oriental Bank of Commerce made a beginning
under its Founding Father, Late Rai Bahadur
Lala Sohan Lal.
 The bank was nationalized on 15 April 1980.
 19th position among the 20 nationalised
banks.

3.  On 14 August 2004, Global Trust Bank
Limited (GTB) was amalgamated into OBC.
 On 31 March 2010 was the seventh largest
Public Sector Bank in India.
 Does not allow online banking access from
outside India.

4.  Purchase of land and construction of a house
thereon.
 Construction of house, where in the plot/land
already owned by the applicant.
 To buy built up (new or second hand) / semi built
up house or flat.
 To Extend/improve/repair, the existing house or
flat.
 To buy a flat under construction or proposed to
be constructed
 For Home furnishing, furniture / fixtures
embedded to structure.

5.  Assessment
 Security Assessment
 Conditional Loan Sanction
 Loan Disbursement

6.  At this stage, bank want to determine that applicant
can afford the loan repayments. bank credit team will
conduct income verification and validate the accuracy
of the information applicant have provided.
 A credit check will then be carried out to reveal
applicant credit history; in this case bank as a lender
will obtain a credit report that will show the following
details:
 Personal details such as: Name, Residential
Addresses, Date of Birth and PAN card number
 Records of some recent credit accounts
 Overdue Accounts (Defaults) which may have been
listed against applicant name, including an indicator
on whether the default amount has been paid or not.

7.  Technical Assessment: A qualified technical
officer will conduct a valuation on the property
applicant intend to purchase and any property
that will be used as security.
 Legal Assessment: A qualified lawyer will
examine the property documents i.e. chain of
agreements/title etc to determine if the property
documents provided by applicant are conducive
for lending
 Based on the technical and legal assessment
report, bank will determine if the property is
suitable for mortgage lending purposes.

8.  Considering there are no major issues with
applicant income verification and credit
checks, bank will provide conditional sanction
for applicant loan. This means that bank will
issue a formal Letter of Offer cum
acceptance favouring the applicants to the
loan. bank recommend the applicants to read
that document carefully, sign and return it to
the bank, making sure the information is
correct and that everyone understands all the
terms and conditions.

9.  Once applicant have formally accepted loan
offer, a thorough scrutiny of all of the above
steps is conducted by bank Operations Team
to ensure accuracy of the entire process.After
clearance of the final processing fees cheque,
the disbursement cheque for the approved
amount is prepared by the Operations
Manager and it is handed over to the
applicant.

10.  Purpose:-To buy built up (new or second
hand) / semi built up house or flat.
 Amount Required:- Rs15,50,000/-
 Customer Information:-
Mr. Pradeep Singha
Giridhari Colony
Parsudih Jamshedpur
Jharkhand. 831001

11.  Applied for an amount of Rs.:-Housing loans
of Rs. 15,50,000/-
Amount Approved:-
Rs 15,50,000/- as maximum limit.
Interest rate:-
BR + 0.50 % = 10.90 %
Repayment Period:-
20years (240 month)

12. Documents
 Last 4 month payslip.
 Last 6 months bank statements.
 Identity proof copy of valid passport / driving
license / pan card/ voter ID card.
 2 Passport size photograph of applicant.
 Loan application Form-cum-process note.

13.  Loan Amount:- Rs15,50,000
 Loan Tenure :- 240 month
 Interest Rate:- 10.90 %
 Calculated monthly Emi:- Rs 15,893.57
 Yearly Interest amount:- Rs 1,13,222.84
 Total interest amount:- Rs 22,64,456.8
 Total Amount with Interest:- Rs 38,14,456.8

14. Calculation of EMI
(L X i) X (1+i)^N
 EMI = -----------------------------
{ (1+i)^N } – 1
L = Loan Amount
i = Interest Rate
N = loan period in months

15. (1550000X0.0090833)X(1+0.0090833)^240
 EMI = ---------------------------------
{ (1+0.0090833)^240 } – 1
14079.115 X 8.75960
= ----------------------
7.75960
= Rs 15,893.57/-