SBI loans offer affordable interest rates The State Bank of India (SBI) has been in the business for a long time now. In February this year, it came up with a bumper offer for car loan seekers. SBI loan interest rate was slashed from 11.5 per cent to 10 per cent and lenders were also freed from paying the car loan processing fee for an entire year. Personal loan interest rates at SBI are highly versatile. They let the borrower choose between a fixed interest rate and a floating one. In the former case, the interest rate on the loan remains fixed throughout the tenure. But in the case of a floating rate loan, the interest rate need not remain constant. It could decline or rise, depending upon the changes that the Bank's Medium Term Lending Rate (SBMTLR) goes through. A striking feature of SBI that makes it stand out among several others is the fact that the interest is levied based on the daily/monthly reducing balance. While others use the annual reducing balance method, SBI offers an advantage to the customer. He does not have to pay interest on the amounts he keeps repaying. The interest is computed only on the loan amount that is presently outstanding. Since, this figure goes down with every EMI, the effective rate of interest is considerably reduced.Getting the ICICI AdvantageICICI Bank is one of the top most approached banks, easily India's second largest lender. ICICI bank loan interest rates have also been significantly lowered keeping in mind the need of the hour. A 50 basis point reduction in the benchmark lending rates is evident from the fall to 15.75 per cent. The floating reference rate, which applies to floating rate retail loans, has dropped to 12.75 per cent. Though the bank owes the reduction to a decrease in the cost of funds, the borrower's convenience has enhanced manifold. Loans are now available from ICICI bank at an increased comfort level. This includes personal loans of all types, including for home, car, education or any other. There are also plans that offer a fixed rate of interest for a period of the loan tenure and then switch to the floating rate. Similarly, ICICI bank loan interest rates for cars are not ruled by a uniform, absurd guideline. They vary according to the car model and the tenure of the loan, which is also dependent on the customer and his location.Sky rocketing interest rates are no longer the obstacle they used to be. There are people who shy away from a loan even when they have the urgent requirement of one, only because they fear the impossible rate of interest. Gone are the days when wicked money lenders in villages would amass land and wealth by trickery and exorbitance. With reliable and helpful banks like ICICI, SBI and many more, getting a personal loan at a reasonable rate of interest is simple for one and all.
The continuous process of measuring our products, service and business practices against the toughest competitors and those companies recognized as industry leaders.(Xerox definition of benchmarking)The process known as benchmarking is quite straightforward to explain but is extraordinarily difficult to conduct successfully in practice. The reason for including this chapter is that benchmarking or comparison lies at the heart of performance measurement.As with many approaches to improving performance, benchmarking has its enthusiasts and its detractors. There is no doubt that, conducted sensibly, a benchmarking project can be benefit to an organization, not least because it forces the participants to look closely at their own organization's processes and question them.It is worth sounding a note of caution at this stage. I benchmarking partners need to be chosen carefully because no two organizations are exactly alike. This may sound obvious but it is remarkable just how different organizations are even when they are engaged in the same business, never mind a completely different industry. This lends to lead to the participants having to examine generic areas of operations, which can dilute the power of the exercise.Another point to note is that benchmarking partners may, for their own reasons, not be strictly open and honest with others involved in the exercise. For example, competitors would fit into this category. All information derived from the process should be carefully weighed and considered in the light of corroborative evidence. Do not take everything as the absolute truth as it could send your organization off on a path that is not fruitful.It is worth pointing out that some detractors suggest that benchmarking only serves to make the organization aspire to be average rather than to lead the field. This may be true in certain areas of the business but it is also the case that organizations can learn from one another, and benchmarking is one way of facilitating this learning process.Benchmarking by definition forces an organization to change its focus from the internal to the external environment by attempting to compare its performance with that of the best — in — class companies.Why should an organization engage in benchmarking?The simple answer is to remain competitive. Institutionalized benchmarking leads to the organization having a better understanding of its competitive environment and its customers' needs. Table 25. 1 neatly sums up the main reasons for benchmarking.
