A TRAINING REPORT TITLED Study of Educational Loan

Prepared for training undergone at

ORIENTAL BANK OF COMMERCE

Master of business administration

Submitted To:IMS (Institute of Management studies)

Submitted by:NAVEEN KHATAK ROLL NO. -23 3rd Semester MBA- 5year

INSTITUTE OF MANAGEMENT STUDIES KURUKSHETRA UNIVERSITY, KURUKSHETRA

DECLARATION

I , NAVEEN KHATAK ,student of Institute of Management Studies ,Kurukshetra University Kurukshetra, hereby declare that project report entitled study of Educational loan is my original work. This has not been previously submitted for the award of any other diploma, degree or other similar title.

Signature of candidate

ACKNOWLEDGEMENT

I would like to express my sincere thanks to Mr. BAKHTAWAR SINGH for providing me the opportunity to work in their esteemed organization as trainee.

I take this opportunity to express my deep gratitude to my project guide without his help and guidance it would not have been possible for me to complete this project as successfully as I did.

Finally, I would like to thanks all others who have contributed to this effort whom I may have missed out.

NAVEEN KHATAK Roll no. 23 3rd sem. MBA 5 year Kurukshetra University Kurukshetra.

COMPANY PROFILE

Company Profile
Oriental Bank of Commerce
Established on 19th Feb' 1943 in Lahore, Oriental Bank of Commerce (OBC) is one of the public sector banks in India. Its modest beginning is creditable to its founder Late RaiBahadurLalaSohanLal, the first Chairman of the OBC. Within four years of coming into existence, the country partitioned, the Bank shifted its Registered Office from Lahore to Amritsar. The Oriental Bank of Commerce was nationalized on 15th April 1980, and paved its way to count amongst the strongest banks in India. OBC has a network of 530 branches and 505 ATM's spread throughout India, out of which 490 branches offer centralized banking solutions. With High Capital Adequacy Ratio, Oriental Bank of Commerce is known be a consistent profit-making bank. It offers various services and products, like current/ savings account, general loans, educational loans, agricultural loans, etc., for the benefit of customers. For its effective services, the National

Institute of Bank Management (NIBM) rated OBC Bank as "Customer Friendly" Bank.

Head office
HarshaBhawan e block Connaught place New Delhi -110001

History
1994: public market with Public issue of 60 million equity shares, aggregating Rs. 360 Core. First Nationalised bank to tap capital market with

1997:
limited

Punjab co-operative bank limited and BariDoab bank

amalgamatedwith the bank.

2001:

A Strong advocate of providing banking of

international standards,

Oriental banks performance proved its worth even when evaluated as per The stringent US GAAP Standards.

2003: level,

OBC becomes the first bank to have declared Zero% net

With the bank.

2005;

Bank enters the capital market for the second time

with successful Public issue aggregating Rs.1450 core.

2006:

1000 branches covered under core banking system

(CBS) internet Banking facility introduced.

2007:

Oriental Bank of Commerce has raised its Benchmark

Prime Lending Rate (BPLR) by 75 basis points to 12.50 per cent with effect from February 23. - Oriental Bank of Commerce (OBC) has joined hands with Escorts Ltd, a tractor manufacturer, for providing retail tractor finance to farmers.

-OBC - Signing of non-binding MOU to set up a Joint Venture Company for Life Insurance Business in India -OBC signs MOU with IDBI Capital Market Services

2008:

Oriental Bank of Commerce (OBC) has appointed Sheri. H

Rathnakar Hegde, presently General Manager, Vijaya Bank as Executive Directorof Oriental Bank Of Commerce. -Oriental Bank of Commerce has announced that the Central Government vide notification dated 10 June 2008 has appointed SumitaDawra as its nominee director on the board of the bank in place of P Bolina.

- Oriental Bank of Commerce (OBC) has inducted Sh. Bharat BhushanBatra as part-time non-official Director on the board of the Bank.

- Oriental Bank of Commerce (OBC) has appointed Shri. S C Sinha, General

Manager, Union Bank of India as Executive Director ofOriental Bank of Commerce. Sh. Sinha took over the charge as executive director of the bank on oct. 08, 2008.

2009:

Oriental Bank of Commerce (OBC) has set up a new

branch with core banking facility at Bantala Leather Complex here. - Oriental Bank Of Commerce has informed that the Central Government vide notification no. F.No. 9/19/2007-BO-I dated 20.02.2009 has appointed Shri K.B.R Naidu as part-time non-official Director on theBoard of the Bank. - Oriental Bank of Commerce started a new branch at East Marredpally Secunderabad.

2010:

- Oriental Bank of Commerce has appointedShri K. H.

Pandey, as Workmen Employee Director of Oriental Bank of Commerce. - Oriental Bank of Commerce has informed that the Central Governmentvide

notification dated July 21, 2010 has appointed Shri S. S.Shishodia, as Officer Employee Director of Oriental Bank of Commerce.

- Oriental Bank Of Commerce has informed that The Ministry Of Finance, Government Of India vide notification no. F.No.9/2/2007BO.Idated July 30, 2010 has appointed ShriB.Sriniwas, as RBI Nominee Director (in place of Sh. S K Newlay) of Oriental Bank of Commerce.

- Oriental Bank of Commerce has appointed Shri B. Sriniwas, as RBI Nominee Director (in place of Sh. S. K. Newlay) of Oriental Bank of Commerce.

EDUCATIONAL LOAN

Educational loan
Eligibility:
Indian nationals not above 45 years of age those who secured admission in a recognized course of an approved university or

institute recognized by a statutory body.

ELIGIBLE COURCES
A. Studies in India Courses leading to diploma / degree conducted by collages / universities approved or accredited by UGC/GOVT./AICTE or any other statutory council of India. B. Studies abroad Course like MCA, MBA, MS e.t.c Courses conducted by CIMA London, CPA in USA e.t.c For job oriented professional/ technical courses offered by reputed Universities

Amount of loan:
Education in India:-Max. Rs. 10.00 lacs. Education Abroad:- max Rs. 20.00 lacs

Components of finance:1. Admission fee/monthly fee/ examination/ library /laboratory fee 2. Books stationary and equipments 3. Caution Deposit/building fund /refundable deposit supported by institution Bills /receipts 4. Air fare for joining the course abroad 5. Cost of instruments /computer e.t.c required for the course

Rate of interest
For Loan up toRs. 4.00 Lacs BR + 2.75% = 11.25 % per annum BR + 3.50% = 12.00 % per annum BR + 5.25% 13.75% BR + 4.75% 13.25% = =

For Loan above Rs. 4.00 Lacs Education Loan to Serving Professionals / Executives and Defense Personnel for Part-time courses Education Loan Scheme for Rural / Semiurban Populace

Concession in rate of interest of 1% for loans to student of IITs and IIM,s can be permitted for loans up to 4.00 lacs. Concession in rate of interest of 0.50% for women beneficiaries /SC/set/physically challenged students can be permitted over the normal rate. Concession of 1% in rate of interest is to be allowed during the study / moratorium only if the interest is served during the regularly. After the completion of the study expiring of moratorium period , normal rate of interest shall be applied on compounding basis till the total repayment of loan Total concessions in rate of interest are subject to floor rate of 10.50% or boys. However, the girl students can be permitted concession below the floor rate but not below base rate. Simple rate of interest shall be charged on monthly basis during moratorium period

Concession on rate of interest :

rate is serviced regularly during the study and moratorium period. This concession shall be allowed after expiry of moratorium.

Special rate:
0.50% concession to women beneficiaries, SC/STs and disabled students.

Process fee:
Upton 4 lacs Rs. 100/Above 4 lacs for education in India -Rs. 500/Education Abroad Rs. 1000/-

Security:For loans up toRs. 4.00 lac No collateral security Co-obligation of parent/ guardian is must For loan above 4 lacs and up toRs. 7.50 lacs No collateral security required Co-obligation of parent/ guardian is must

 One satisfactory third party guarantee Above Rs. 7.550 lacs Co-obligation of parent/ guardian is obligatory Mortgage of immovable property or any other tangible security like pledge of NSC/UTI/LIC(Surrender

value)/bonds/Banks deposits (Except under tax saving Scheme) e.t.c having value at least equal 100%Of loan. Extension of change on property already mortgaged with our Bank, subject to adequate residual value of security.

Repayment :Within 84 EMIs the job , commencing 12 months after course or 6 months after getting witch ever is earlier.

A1. Applicant's Details Full Name Date of Birth * Nationality

Marital Status Unmarried Married

No. Of Dependents*

Employment Status Unemployed Employed

Information for the selection of Branch nearest to your permanent address State Name * City Name * Branch Office * Regional Office
--Select Regional Office---Select Branch---Select City-----Select----

Current Address *

City *

Pin *

State *
----Select----

Permanent Address *

City *

Pin *

State *

----Select----

Phone (with STD Code)

Mobile No

Email

Distance from the Oriental Bank's nearest Branch from your Permanent Address * Km

A2. Parent/Guardian Details Name of Parent/Guardian *

Relationship with Applicant *

Occupation of Parent/Guardian *

Annual Income of Parent/Guardian Rs.

Parent/Guardian's Address *

City *

Pin *

State

----Select----

B. Previous Qualifying Examination Details Examination Passed * Year of Passing

Name of Institution * % of Marks *

C. Course Details Course Applied * Name of Institution *

Approved by *
--Please Select--

Address of Institution *

(Specify If Others *)

Whether admission to College Secured?

Course/Institution Approved? *

Yes

No

Yes

No

Mode of Securing Admission *

No. of Attempts

Is Institution at the Nature of Course place of Permanent Address? Full Time Evening Yes No

(Part Time &Correspondence Courses will not be considered) Study in [India/ Abroad] India Abroad

Duration of Course * (Months) No Yes

Is the course of Commercial Pilot License ?

Is the course conducted by a study center affiliated to a University/College ? No D. Course Expenses Total Course Expenses (Fee + Hostel Charges etc)(without comma) Yes

Loan Amount Required * Own Contribution * For loan amount exceeding Rs 7.50 lakh furnish details of security offered: Are you willing to offer tangible security in shape of immovable property/NSCs/LIC Policy/PSU Bonds etc. of at least equivalent to loan amount ? Yes Nature of Security Present Value (Rs.) Earlier Applied Yes No Location Original Value (Rs.) Earlier Ref. No No

For loan amount above 4.00 lac and up to Rs 7.50 lakh Are you willing to offer one third party guarantee? Yes No

BIBLIGROPHY

BIBLIOGRAPHY
www.obcindia.co.in From staff concerned