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1
Summer Internship Project Report
On
“A Study of Bajaj Finserv
Consumer Durable Loan Procedure”
A report submitted to
Asi...
2
CERTIFICATE
(To be issued on letter head of organization provided training)
This is to certify that Vivek Goyal student ...
3
PROJECT GUIDE CERTIFICATE
GuideName: Asian Business School
Mrs. Kavita Khurana Plot A2,Sec-125,
Assistant Professor- Mar...
4
ACKNOWLEDGEMENT
No task is a single a single man’s effort. Cooperation and coordination of various people at
various pla...
5
DECLARATION
This is the report of the project work entitled “A Study of Bajaj Finserv Consumer
Durable Loan Procedure” u...
6
TableofContents
Chapter No. Title Page No.
Certificate from
Company/Organization
2
Certificate from Guide 3
Acknowledgem...
7
1.13 Consumer Durable Finance 18
1.14 Need Of The Study 22
1.14 Scope OfThe Study 23
1.15 Objectives Of The Study 23
II ...
8
List of tables
Chapt
er No
Title Page No.
1 Financial Statements 12-13
2 Scheme Chart 28
3 Performance Trend 45
3 Distri...
9
EXECUTIVE SUMMARY
I have taken marketing as a specialization with the title of “A STUDY OF
BAJAJ FINSERV CONSUMER DURABL...
10
Chapter – I
Introduction
11
1.1 Background of the study
Bajaj Finserv was formed in April 2007 which is situated in 4TH Floor, Bajaj
Finserv Corpor...
12
1.3 PRODUCT PROFILE OF THE COMPANY
Figure no 1.2 company profile
1.4 CURRENT FINANCIAL STATEMENTS
Particular FY2017 FY2...
13
charges
Net interest
income
4457 3170 41
Salary cost 630 451 40
Marketing
commission
96 61 57
Dealer
incentives
290 208...
14
Mission:
Bajaj Finserv aims to be the most useful, reliable and efficient provider of
Financial Services. It is our con...
15
1.7 BOARD OF DIRECTORS
Rahul Bajaj
Chairman
Nanoo Pamnani Sanjiv Jain
Vice Chairman Managing Director
Rajeev Jain
Chief...
16
1.8 PRODUCTS COVERED
Almost all brands of Consumer Durable products like TV, refrigerator so on.
All lifestyle products...
17
benefits from additional investment improved economic condition usually
lead to more capital projects and increased per...
18
instead of waiting for years of savings to accumulate. For manufacturer,
consumer finance stimulates demand and brings ...
19
paid upfront by the manufacturer to the financier. Consumer durables
financing appears robust, continued support from m...
20
Advantages of EMI card
 The Bajaj finance providing good opportunity to customers by offering EMI card
to the customer...
21
 The customer can get approval for a loan anywhere between 3 to 15
minutes.
 Tracking methodology of customer is very...
22
How to Apply EMI card
 We can apply for our EMI card at the time of the purchase (or through your
Customer Portal logi...
23
1.14 Need for study
 In the urban areas 50% of people are taking the loan from Bajaj
finance and other finance when th...
24
CHAPTER – II
RESEARCH
METHODOLOGY
25
2.1 Research Design
Research design is a plan of action, a plan for collecting and analyzing data in
an economic, effic...
26
Articles, Magazines, Company website, Research papers, MBA projects,
Internet.
2.3 QUESTIONNAIRE DESIGN FORMULATION
Und...
27
RATING SCALE
A scale that rates some attribute from “highly satisfied ” to “highly
unsatisfied “ and “very inefficient”...
28
A person or organization that makes a loan That is, a lender gives money to a
borrower with the expectation of repaymen...
29
CHAPTER – III
DATA PROCESSING AND
ANALYSIS
30
1. Are you Aware About Consumer Durable Loan
Availability?
Interpretation
Above figure clearly shows that how Bajaj com...
31
2. Have you ever taken conumer durable loan?
Interpretation
Because of Consumer Durable loan facility customer can thin...
32
3. Do you own EMI card of Bajaj Finserv?
Interpretation
There are many reason that why Bajaj Finserv is most succesful ...
33
4. Which Payment Mode You Feel Is Convenient To Buy
Consumer Durable Products?
Interpretation
By seeing above figure it...
34
5. Scale Effectiveness Of Bajaj EMI Card
Interpretation
Response from customer for utility of EMI card says its play vi...
35
6. Which Finance Company You Will Prefer For Consumer
Durable Loan?
Interpretations
Bajaj Finserv has fast process comp...
36
7. Which Section Of Consumer Taking Loan?
Interpretations
Above figure is showing that still Bajaj Finserv is growing m...
37
8. Most Preferable Scheme Opted By Consumer?
Interpretations
12/4 is the most desirable scheme which most of the custom...
38
9. Who are competitors of Bajaj Finance?
A) Reliance B) Tata capital C) Bajaj finance D) capital first
 I observed tha...
39
10. Customer opinion about the Bajaj finance
A) Good B) Average C) Bad D) Below average
 I observed the customer was f...
40
11. Customers are satisfied with Bajaj schemes
A) Yes B) No
 The customers are fully satisfied with the Bajaj schemes
...
41
Customer feedback
Here is the feedback of customer from different bank account holders and
their opinion about Bajaj Fi...
42
3.1 Gross Loan Deployment of Bajaj Finserv
43
Figure no 3.1 deployment chart
44
Figure no 3.2 business performance year by year
45
Figure no 3.3 performance trend
Explanation:
Consumer Durable business:
Continued its strong momentum and disbursed 667...
46
Cross sell:
Momentum across Lending and Fee products remained strong.
Salaried personal loans business:
Continued to gr...
47
Interpretation:
The above graph shows loan deployment of the year, as per the sectors, the
growth of the consumer finan...
48
o If you are Self Employed your age should be between 23 years to 65
years.
All above documentation doesn’t mean custom...
49
Document Required for Loan
I.Address Proof:-Bank Statement
II.ID Proof: - Pan Card or Voting Card or Driving License.
I...
50
Solution:-
a. Calculation of EMI and Down payment:
Scheme-: 12/4 (Ref.Table No.3.1)
Cost of Product-: Rs.75, 000
Down p...
51
II.As an address proof for taken a loan it is must to Mr.Ranjeet Kumar to submit
either Rent agreement or credit card s...
52
And marriage Certificate.
III.Income Proof:-3 Month Bank Statement.
Problem ID Proof
As per the documents require for t...
53
Solution:
a. Calculation of EMI and Down payment:
Scheme-: 12/4(Ref.Table No.3.1)
Cost of product-: Rs.36, 000
Down pay...
54
Salary: 50,000/-PM
Purchase of Products I Sony LED TV
Cost of Products I Rs.52, 000
Document Required for Loan
I.Addres...
55
Salary Rs.6,00,000 PA 
House Own 
Place Aundh 
Document
Required
Address Proof Passport 
ID Proof Passport 
Credit...
56
II.Due to the system Error the loan has been rejected, When the Mr.Kasat has
produced the copy of NOC to the Bajaj Fins...
57
Name of Mr.Akshay kadam on the credit card and Pan Card is mismatch
i.e.Akshay Kadam on credit card and Akaash Kadam on...
58
Solution:
How to approve the Loan:
I.Mr. Akshay Kadam has the entire document i.e. Address Proof, ID Proof, and
Income ...
59
Cost of Products
I.Rs.52,000
II.Rs.35,000
Document Required for Loan
I.Address Proof:-Electricity Bill, Index-II, Telep...
60
 Once all this loan process is done, the unique case ID will be
generates. Then all the control goes in to the hand of...
61
Figure no 3.9 whole processes
62
Surrogates Required for Loan Approval:
There are three types policy are as below:
A. WOW Policy
B. WOW Lite Policy
C. W...
63
3.5 Existing Customer (Max LTV 83%)
3.6 CIBIL Score (Max LTV 83%)
3.7 Salaried (Max LTV 90% Min net salary 7500)
Figure...
64
Diversified lending business model
2014-15
2013-14
2012-13
2011-12
2010-11
2009-10
2008–09
Figure no 3.11 diversificati...
65
Interpretation (figure 3.11)
Bajaj Finserv took gutsystep in 2008-09 to invest in consumer loan business where many
gia...
66
Strong Distribution Reach
F
i
g
u
r
e
n
o
3
.
1
2
g
e
o
g
r
a
p
h
i
c
m
67
Figure no 3.12 performance
Interpretation (figure 3.12)
Distribution is also one of the important factors that’s playin...
68
Chapter - IV
FINDINGS
 Bajaj Finserv became necessary for almost every consumer who wants
to purchase product on credi...
69
Chapter– V
CONCLUSION
 Bajaj Finserv has very strong sales team in loan sector because it’s very
challenging task to s...
70
Chapter-VI
RECOMMENDATION
 Bajaj should revise their policy regarding cibil score.
 Bajaj should provide loan to EMI ...
71
BIBLIOGRAPHY
WEBLIOGRAPHY
 https://www.bajajfinserv.in/default.aspx
 https://www.bankbazaar.com/reviews/bajaj-finserv...
72
ANNEXURE
1. Are You Aware About Consumer Durable Loan Availability?
a) Yes
b) No
2.Have You Ever Taken CD Loan?
a) Yes
...
73
5.Scale Effectiveness Of Bajaj EMI Card
low
1
2
3
4
5
high
6.Which Finance Company You Will Prefer For Consumer Durable...
74
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SIP Project Report by Vivek Goyal

All about the Bajaj Finserv, BOD's, Loan Procedure, scope Of study, Need of study, Vision and Mission, Organisational structure, product, all about EMI card of Bajaj finserv, CBC

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SIP Project Report by Vivek Goyal

  1. 1. 1 Summer Internship Project Report On “A Study of Bajaj Finserv Consumer Durable Loan Procedure” A report submitted to Asian Business School, Noida As a partial fulfillment of Full time Post Graduate Diploma in Management (PGDM) (Approved by AICTE, Ministry of HRD) Submitted to: Submitted by: Mrs. Kavita Khurana Vivek Goyal Asian Business School ABS/PGDM/JULY16/161 Noida Batch: 2016-2018 Asian Business School (ABS) A2, Sector – 125, Noida Website: www.abs.edu.in
  2. 2. 2 CERTIFICATE (To be issued on letter head of organization provided training) This is to certify that Vivek Goyal student of Asian Business School (ABS), Noida has undergone Summer Internship in our company on “A Study of Bajaj Finserv Consumer Durable Loan Procedure’’ The project work done by the candidate is original and has worked under my guidance. The candidate has undergone training from 30th April 2017 to 15th June 2017 at our Bajaj Finserv Office, Janakpuri East. Stamp of the Organization Name of the guide Address Date : Mr. Kunal Sahni Sales Manager Bajaj Finance Ltd.
  3. 3. 3 PROJECT GUIDE CERTIFICATE GuideName: Asian Business School Mrs. Kavita Khurana Plot A2,Sec-125, Assistant Professor- Marketing Noida 201301 CERTIFICATE This is to certify that the dissertation entitled is submitted to Asian Business School by Vivek Goyal Reg. No. ABS/PGDM/JULY16/161. The project has been done under my Supervision & guidance and the project “A Study of Bajaj Finserv Consumer Durable Loan Procedure” has not formed the basis for the award of any Degree or other similar title to any candidate. SIGNATURE (Internal Examiner)
  4. 4. 4 ACKNOWLEDGEMENT No task is a single a single man’s effort. Cooperation and coordination of various people at various places go into the successful implementation. It is a great pleasure to have the opportunity to extend my heart-felt thanks to everybody who helped me through the successful completion of this project. My first and foremost note of thanks to Mr. Ravee Sharma(Head of department Corporate Resource Cell) for giving me the opportunities in the esteemed organization to undertake such type of valuable project. I would like to thank Mr. Kunal Sahni (Sales Manager) along with all members of Bajaj Finance Ltd. For the valuable support give to me during the entire phase of the project. I would also like to thank all the employees of Bajaj Finance Ltd. for their valuable support given to me whenever I have needed. I would like to express my gratitude to Mrs. Kavita Khurana (Assistant Professor, Marketing) for providing me regular guidance, full cooperation, support and encouragement throughout the Summer Internship Project.
  5. 5. 5 DECLARATION This is the report of the project work entitled “A Study of Bajaj Finserv Consumer Durable Loan Procedure” undertaken during 30th April 2017 to 15th June 2017, 1.5 months internship at Bajaj Finance Ltd. Vijay Sales, Janakpuri East I hereby declare that this project report is being submitted by me to the ASIAN BUSINESS SCHOOL know in partial fulfillment of the award of the diploma of Post Graduate Diploma in Management. This Project is not submitted to any other organization/University/college and is the outcome of my own work. I was in regular contact with my faculty mentor (guide) and contacted several times for discussing the project. Date of project submission: Student signature Faculty Mentor’s comments ……………………………………………………………………………………………… ……………………………………………………………………………………………… ……………………………………………………………………………………………… ……………………………………………………………………………………………… ……………………………………………………………………………………………… ……………………………………… Signature of faculty mentor Name: Mrs. Kavita Khurana
  6. 6. 6 TableofContents Chapter No. Title Page No. Certificate from Company/Organization 2 Certificate from Guide 3 Acknowledgement 4 Declaration from student 5 List oftable 8 List of chart 8 Executive Summary 9 I Introduction 10 1.1 Background OfThe Study 11 1.2 Organization Structure 11 1.3 Product Profile Of The Company 12 1.4 Current Financial Statements 12-13 1.5 Vision And Mission Of The Organization 13-14 1.6 Future Plan Of The Organization 14 1.7 Board Of Directors 15 1.8 Products Covered 16 1.9 Background OfThe Topic 16 1.10 What Is finance? 16-17 1.11 Who is consumer? 17 1.12 Consumer Finance 17-18
  7. 7. 7 1.13 Consumer Durable Finance 18 1.14 Need Of The Study 22 1.14 Scope OfThe Study 23 1.15 Objectives Of The Study 23 II Research Methodology 24 2.1 Research design 25 2.2 Sources ofdata 25 2.3 Questionnaire 26 2.4 limitation 27 2.5 Keyconcept 28 III Data Processing and Analysis 29 Analysis and interpretation 30-40 Customer feedback Deployment and 41-42 Deployment and trend performance explanation 43-46 Loan procedure and related case study 47-59 Diversified business model 63-67 IV Findings 68 V Conclusions 69 VI Recommendations 70 Bibliography 71 Appendices /Annexure 72-73
  8. 8. 8 List of tables Chapt er No Title Page No. 1 Financial Statements 12-13 2 Scheme Chart 28 3 Performance Trend 45 3 Distribution Performance Geographic Wise 65 List of Charts Chapt er No Title Page No. 1 Organization structure 11 3 Questionnaire 30-40 3 Deployment chart 42 3 Illustration chart 60 3 Business model 63-64 3 Distribution map 65-66
  9. 9. 9 EXECUTIVE SUMMARY I have taken marketing as a specialization with the title of “A STUDY OF BAJAJ FINSERV CONSUMER DURABLE LOAN PROCEDURE” The objective behind this project was to primarily focus on Modus Operandi of Bajaj Finance for Finance of Consumer Durable products. This required a firsthand experience in understanding end to end process flow for loans processing to payment disbursement. I was working in Vijay Sales located in Janakpuri East, Delhi. I have collected the first hand data as well as secondary data from Books, Company Annual Report & internet Articles etc. Bajaj Finserv was the first company who started purely consumer durable loan segment. I also focused on the surrogates required for loan approval, documents necessary for approval of loan and also to show the SWOT analysis of Company. I have also tried to explain the loan procedure and its approval by enclosing some case studies. Through this project, I learn now days what are the approach and preferences of the customer towards consumer durable loan product and how to solve customer difficulties regarding the documentation. I was dealing with proper customer, provided them loans by completing their files and getting the approval online form Bajaj Server called as “Galaxies” Portal. This process helped me to better understand the Loan procedure of Consumer durable product at Bajaj Finserv Lending.
  10. 10. 10 Chapter – I Introduction
  11. 11. 11 1.1 Background of the study Bajaj Finserv was formed in April 2007 which is situated in 4TH Floor, Bajaj Finserv Corporate Office, Pune-Ahmednager Road Viman Nagar, Pune 411014, and Maharashtra. As a result of its demerger from Bajaj Auto Limited to act as a pure play financial services business. The process of demerger was completed in Feb 2008. This demerger was not only to unlock values in the high growth business areas of Auto, Insurance, Finance sectors and Wind Power but also to run independently these core businesses and to strengthen the competencies. In addition to that cash and cash equivalent of INR 8,000 million (then market value) was also transferred to the company. The demerger has enabled investors to hold separate focused stocks and also facilitate transparent benchmarking of the companies To their peers in their respective 1.2 ORGANIZATION STRUCTURE Figure no 1.1 organization structure
  12. 12. 12 1.3 PRODUCT PROFILE OF THE COMPANY Figure no 1.2 company profile 1.4 CURRENT FINANCIAL STATEMENTS Particular FY2017 FY2016 CHANGE in(%) Total income 7384 5418 36 Interest and finance 2927 2248 30
  13. 13. 13 charges Net interest income 4457 3170 41 Salary cost 630 451 40 Marketing commission 96 61 57 Dealer incentives 290 208 39 Recovery cost 233 204 14 Loan loss and provision 543 385 41 Depreciation 56 36 56 Other expenses 644 468 38 Profit before tax 1965 1357 45 Profit after tax 1279 898 42 Earnings Per Share (EPS) Basic, In rupees 242.30 179.94 35 Book Value Per Share, In rupees 1386.87 959.93 45 Figure no 1.3 financial statements 3 1.5 Vision and Mission of the Organization: Vision: Bajaj Finserv has a vision to become a full-fledged financial services company and be the financial partner to the Indian consumer and help him across his financial needs, whether for finance, for investment management, for protection or for post-retirement support, throughout his lifecycle.
  14. 14. 14 Mission: Bajaj Finserv aims to be the most useful, reliable and efficient provider of Financial Services. It is our continuous endeavor to be a trustworthy advisor to our clients, helping them achieve their financial goals. 1.6 Future Plan of the Organization Application for Banking License: Bajaj Finance may have failed to get a banking license in the first round last year. The company has not given up its hope of becoming a bank. Jain says whenever the Reserve Bank of India invites applications for new licenses, Bajaj Finance would be interested. For that Rajiv Jain has made 5 years road map
  15. 15. 15 1.7 BOARD OF DIRECTORS Rahul Bajaj Chairman Nanoo Pamnani Sanjiv Jain Vice Chairman Managing Director Rajeev Jain Chief Executive Officer Managing Director and CEO
  16. 16. 16 1.8 PRODUCTS COVERED Almost all brands of Consumer Durable products like TV, refrigerator so on. All lifestyle products IT products CROSS SELL: Insurance, extended warranty 5 LATEST Other products covered under EMI option Apparels Watches Dentist Food category Big bazar 1.9 BACKGROUND OF THE TOPIC 1.10 What is Finance? "Finance is the management of money and other valuables, which can be easily converted into cash." A category of stocks containing firms that provides financial services to commercial and retail customer. This sector includes banks, investment funds, insurance companies and real estate. Financial services perform best in low interest rate environments. A large portion of this sector generates revenue from mortgages and loans, which gain value as interest rates drop. Furthermore, when the business cycle is in an upswing, the financial sector
  17. 17. 17 benefits from additional investment improved economic condition usually lead to more capital projects and increased personal investing. New projects require financing, which usually leads to a large number of loans. “Finance” is often defined simply as the management of money or “funds” management. Modern finance, however, is a family of business activity that include the origination, marketing, and management of cash and money surrogates through a variety of capital accounts, instruments, and markets created for transaction and trading assets, liabilities, and risks. Finance is conceptualized, structured, and regulated by a complex system of power relation within political economies across state and global market. 1.11 Who is consumer? An individual who buys products or services for personal use and not for manufacture or resale. A consumer is someone who can make the decision whether or not to purchase an item at the store, and someone who can be influenced by marketing and advertisements. Any time someone goes to a store and purchases a toy, shirt, beverage, or anything else, they are making that decision as a consumer. Under the consumer protection act 1985 ‘‘any person who buy any goods for consideration, who include a person who obtain such goods for resale or for any commercial purpose”. 1.12 Consumer Finance “The division of retail banking that deals with lending money to consumers. This includes a wide variety of loans, including credit cards, mortgage loans, and auto loans, and can also be used to refer to loans taken out at either the prime rate or the subprime rate.” The consumer finance is a win-win system in which everyone wins. For the consumers it is an opportunity to upgrade standard of living here and now
  18. 18. 18 instead of waiting for years of savings to accumulate. For manufacturer, consumer finance stimulates demand and brings down inventories. For dealers it is one type of sales booting. For finance company it is profit generation. Consumer finance has to do with the lending process that occurs between the consumer and a lender. In some instances, the lender may be a bank or financial institution. At other times, the lender may be a business that offers in house credit in exchange for the business of the consumer. Consumer finance can include just about any type of lending activity that result in the extension of credit to a consumer. 1.13 Consumer Durable Finance “Consumer durable finance means to provide the finance on the consumer durable product like, washing machine, TV etc. it is known as consumer durable finance” The consumer durable finance provide the 0% interest on durable product to the consumer, This gives customers another compelling reason to opt for 0% interest Consumer Durables Finance for their durables purchases. Consumer durables finance schemes are generally available at the dealer location (point of sale) or the showroom. The beneficiaries are not just customers – lenders, manufacturers, and retailers too benefit. Manufacturers gain from the resultant boost to sales and increased consumer preference towards high- margin products. Financing schemes enable customers, especially those with lower income levels, to use future income streams to buy consumer products upfront and pay in installments over a period. The most popular finance scheme prevalent in the market currently is the 12/4 scheme, where the financier collects the amount for the first four months as initial down payment from the buyer and then disburses the full amount to the dealer. The financier then recovers the balance amount in 8 monthly installments from the buyer. The interest and processing charges are generally
  19. 19. 19 paid upfront by the manufacturer to the financier. Consumer durables financing appears robust, continued support from manufacturers (who are effectively bearing the interest costs currently) would be critical to sustain high growth. EMI Card (Easy Monthly Installments)  Bajaj Finserv Lending launched an innovative product in 2011-12 for its existing Consumer Durables Finance customers.  Through the EMI card, an existing customer can buy any consumer durable by simply swiping the EMI card across our dealer partner outlets, without the need for any repeated documentation.  This is another industry first, leveraging the technology investments the company has made and is a proof point of our commitment to investing in growing our relationship with our existing customers.  Tracking methodology of customer is very smooth (by using EMI card
  20. 20. 20 Advantages of EMI card  The Bajaj finance providing good opportunity to customers by offering EMI card to the customers. Card holders customers are not requiring to bring the all documents also get the best scheme provided by the Bajaj.  With this card we can come to know that the customer is existing customer for more than three month.  For their next purpose of buying products they do not need to bring all the documents which was given before  Now simply Swipe, Sign and Buy any consumer durable or life style product of your choice with your EMI (Existing Member Identification Card), only from Bajaj Finserv Lending. No need to gather another set of documents or go through the process of applying for a loan.  The pre-approved loan amount on our EMI card depends on the loan amount assigned to BFL at the time of we are taking a Consumer Durable or Lifestyle product loan. This loan amount varies from Rs. 30,000 to Rs. 1,25,000/-  We can use the EMI card at any of our partner retail outlets across 65 cities in India. Advantages of consumer durable loan  The Bajaj Fiserv Lending providing pre payment facility to the customers they can reduce their EMI or tenor or both by repaying their loan on time. Customer can repay up to 6 times in a calendar year at any interval with the minimum amount per prepay transaction being not less than 3 EMI’s. Also there is no limit on the maximum amount (subject to his credit performance).  The Bajaj finance started providing 0% finance options only with Bajaj Finserv Lending. (select schemes are interest bearing)  The Bajaj finance also offers you special flexible repayment options.
  21. 21. 21  The customer can get approval for a loan anywhere between 3 to 15 minutes.  Tracking methodology of customer is very smooth (by using EMI card).  Customer can take Extended Warranty from Bajaj which can be convert into EMI’s and secure his product. Features and Benefits The Bajaj finance EMI card is the innovation to bring new technology to consumer durable loans. It is very easy to communicate with customer.  Pre-Approved eligibility: The EMI card carries a pre-approved loan in our wallet. We can avail of our loan facility to purchase any consumer durable & lifestyle product of our choice.  Instant approval: Simply Swipe, Sign and Buy with our EMI card. The moment we swipe our card, we can get instant approval, subject to the amount pre-approved for you.  Minimum documentation: For using your EMI card, we don't want to give any documents. Our EMI card carries all the necessary information required.  Preapproved Offers: As an existing customer, we can get exclusive preapproved offers from time to time across a host of your partner retailers and manufacturers.  Online Account Access: Get all information about our loan like repayment track, interest certificate, payment schedule etc through your digital customer portal. Just log in with our loan account number and access whatever information you want about our loan.
  22. 22. 22 How to Apply EMI card  We can apply for our EMI card at the time of the purchase (or through your Customer Portal login on Bajaj finance website, if we are an existing customer of consumer durable loan or lifestyle finance). Our EMI card will come after the completion of three EMIs.   Buying your consumer durable / life style product: We can sign up for our EMI card when we buy your consumer durable through any of your retail partners. Our EMI card will be sent to you after 4 months of loan repayment, subject to timely repayments of our loan installments.  Online through Digital Customer Portal: we can apply online anytime through your customer portal. Make an online payment of Rs.249 and our EMI card will come with in 3 month Eligibility and Documents for EMI card EMI Card is issued only to our existing customers Only the following documents are required for getting your EMI card:  Open ECS mandate duly signed (Open ECS is same as other ECS with an extended period so that we don’t have to give fresh ECS for your purchases in future.)  One cancelled cheque  KYC formalities (valid photo id proof and address proof) Fees and Charges: All the customers have to pay is a onetime charge of Rs.349 (to enjoy lifetime membership of EMI card).
  23. 23. 23 1.14 Need for study  In the urban areas 50% of people are taking the loan from Bajaj finance and other finance when they purchase consumer Durable product due to EMIs facility.  The customers are spending more for consumer durable products compare to before when EMI was not in market.  CD loan also create business opportunity to its other business model.  The customers who are not able to pay the total amount of the product at the time of purchase but dealer gets paid for his product within 5-7 days whereas consumer pay money in average 8 month without paying anything extra. Bajaj is playing the key role on consumer durable loans. The Bajaj finance was observed that they are providing good financial facility to the customers. 1.15 Scope for study Current position is dominant by Bajaj Finserv in consumer loan but now many competitors entering in the market which reducing new customer penetration of Bajaj. So how Bajaj diversified its business model in consumer loan with new products/services and offer. Specially HDFC bank who provide the benefit of credit card to the customers. 1.16 Objectives of the Study  To know awareness of CD loan among consumers  To find benefits of EMI card for customers  To find reason behind customer preferences toward Bajaj Finance  To know how the new competitors are performing compared to Bajaj
  24. 24. 24 CHAPTER – II RESEARCH METHODOLOGY
  25. 25. 25 2.1 Research Design Research design is a plan of action, a plan for collecting and analyzing data in an economic, efficient and relevant manner Type of Research Descriptive Research: Descriptive research can be used to accomplish a wide variety of research objectives. Descriptive research includes Surveys and fact-finding enquiries of different kinds. The main characteristic of this method is that the researcher has no control over the variables; he can only report what has happened or what is happening. 2.2 Sources of Data The study is descriptive in nature, makes use of both type of data i.e. Primary and Secondary. Primary data: The data that is collected first hand by someone specifically for the purpose of facilitating the study is known as primary data. So in this research the data is collected from respondents through questionnaire. Secondary data: I had used secondary data like the annual reports of the company, working experience, Books
  26. 26. 26 Articles, Magazines, Company website, Research papers, MBA projects, Internet. 2.3 QUESTIONNAIRE DESIGN FORMULATION Under this method, list of questions pertaining to the survey are prepared for consumers of Bajaj Finserv in Vijay Sales at Janakpuri East, Delhi. Questionnaire has structured type questions as well as unstructured type questions. Structured objective type questions are prepared for the respondents with fixed response categories. Some of the questions are of multiple-choice type. The questions have more than one alternative. Questionnaire: A questionnaire consists of a set of questions presented to respondent for their answers. It can be Closed Ended or Open Ended Open Ended: Allows respondents to answer in their own words & are difficult to Interpret and Tabulate. Close Ended: Pre-specify all the possible answers & are easy to Interpret and Tabulate. TYPES OF QUESTION INCLUDED: DICHOTOMOUS QUESTIONS which has only two answers “Yes” or “No”? MULTIPLE CHOICE QUESTIONS where respondent is offered more than two choices. IMPORTANCE SCALES A scale that rates the importance of some attribute.
  27. 27. 27 RATING SCALE A scale that rates some attribute from “highly satisfied ” to “highly unsatisfied “ and “very inefficient” to “very efficient” Analysis of Data: The researcher analyses the data with the help of Case Studies, Percentage, Tables, and Graphs. SAMPLE SIZE Sample size of respondent 200. 2.4 Limitation of the Project: The geographical area was very limited so the results are not precise reflection of the aggregate behavior. 1. The study is restricted to consumer durable loan in Vijay Sales only. 2. Sometimes customer may be biased / dissatisfied because of restricted policies of EMI procedure. 3. Loan procedure of other retail outlet can be different, which is not taken into consideration. 4. As the market is very huge, it was not possible to cover all area. 5. The data collected may not be representation of entire population. 2.5 Key Concepts:  Lending:
  28. 28. 28 A person or organization that makes a loan That is, a lender gives money to a borrower with the expectation of repayment in a timely manner, almost always with interest.  Surrogates: A surrogate means document requirement criteria for loan approval process.  Bajaj Dedupe: Bajaj Dedupe means there is problem occurred in the previous Bajaj loan.  Scheme Chart: Various types of schemes are given below: Schemes Description 12/4 It means the 4months payment will be taken as an advance and remaining payment will be distributed in 8 months. 10/2 It means the 2 months payment will be taken as an advance and remaining payment will be distributed in 8 months. 18/6 It means the 6 months payment will be taken as an advance and remaining payment will be distributed in 12 months. And it is long term scheme. 24/6 It means the 6 months payment will be taken as an advance and remaining payment will be distributed in 18 months. And it also long term scheme. 10/0 It means there is no any advance payment will be taken, all payment will be distributed in 10 months. Figure no 2.1 scheme chart
  29. 29. 29 CHAPTER – III DATA PROCESSING AND ANALYSIS
  30. 30. 30 1. Are you Aware About Consumer Durable Loan Availability? Interpretation Above figure clearly shows that how Bajaj company succesfully urges the cosumers about Consumer durable loan. It is considered important because company started this business when many big loan firm closed down its business for consumer loan because of recession in 2008-09 whereas Bajaj were able to assess the future demand and now you can see how in above chart that how this industry is booming. yes 92% no 8%
  31. 31. 31 2. Have you ever taken conumer durable loan? Interpretation Because of Consumer Durable loan facility customer can think to buy any durable product with latest technology easily. Which wasn’t the case earlier when they have to think twice before buying tv, fridge etc. end of 20th century only higher middle class and above people had all that CR Tv, refridgerator, air condtioner etc. but above data shows Consumer Durable loan created not only desire but also created willingness among the consumer to purchase products. yes 70% no 20% not sure 10%
  32. 32. 32 3. Do you own EMI card of Bajaj Finserv? Interpretation There are many reason that why Bajaj Finserv is most succesful in lending industry. One of the most important part is its vastly higher technology and EMI card idea was one of them. which helping them to retain their 80-90% customer. also almost 60% Bajaj customer has EMI card. other those are not sure most of them might have card but because of they don’t often buy products they dont carry or misplaced it. yes 58% no 28% not sure 14%
  33. 33. 33 4. Which Payment Mode You Feel Is Convenient To Buy Consumer Durable Products? Interpretation By seeing above figure its seems customer more prefer to buy products on cash but its only in numbers. It was found that 30% customer willing to buy product throgh Bajaj Finserv While asking to another set of consumers who were quite educated in terms of value for money by considering all the points they highly recomanded in favour for Emi facility. bajaj emi 30% cash 45% credit crad 20% all of above 5%
  34. 34. 34 5. Scale Effectiveness Of Bajaj EMI Card Interpretation Response from customer for utility of EMI card says its play vital role while taking Consumer Durable loan. More people are stuck to 4 rating because of it certain condition are attach to it. Otherwise it is very much accepted and effective by cosnumers. 1 2 3 4 5 10 15 40 105 30
  35. 35. 35 6. Which Finance Company You Will Prefer For Consumer Durable Loan? Interpretations Bajaj Finserv has fast process compare to competitors and also providing good after sale service throgh Bajaj App.which conumer can access anwhere and do all the transaction like Loan Account Access, Change Address, Pre- Closer Of Loan, Complaint Logs etc. bajaj 62% capital first 23% Hdfc 10% other 5%
  36. 36. 36 7. Which Section Of Consumer Taking Loan? Interpretations Above figure is showing that still Bajaj Finserv is growing more than 50%.which indiactes there are many oppourtunity coming up for Bajaj as in today time.consumers with High Per Capita Income has more awareness about Consumer Durable loan. EXISTING 45% NEW 55%
  37. 37. 37 8. Most Preferable Scheme Opted By Consumer? Interpretations 12/4 is the most desirable scheme which most of the customer like to take. This scheme doesn’t carry any processing fee. Promotional scheme often carry processing fee as resulting to least prefer by cutomer And more awareness about consumer durable loan. 124 62% 102 23% 184 10% promotional 5%
  38. 38. 38 9. Who are competitors of Bajaj Finance? A) Reliance B) Tata capital C) Bajaj finance D) capital first  I observed that so many customer says Reliance capital is Bajaj competitor 0 5 10 15 20 25 30 35 40 Realiance captial Tata captial Bajaj finance capital first
  39. 39. 39 10. Customer opinion about the Bajaj finance A) Good B) Average C) Bad D) Below average  I observed the customer was fully satisfied with the Bajaj finance. When customer was taking loan from the Bajaj he was feeling very good. Because Bajaj is providing goods & services to the customers that’s why the customer was given good marks to the Bajaj finance. 0 10 20 30 40 50 60 70 good average below average bad opinion about the Bajaj finance
  40. 40. 40 11. Customers are satisfied with Bajaj schemes A) Yes B) No  The customers are fully satisfied with the Bajaj schemes 0 20 40 60 80 Yes No Column2
  41. 41. 41 Customer feedback Here is the feedback of customer from different bank account holders and their opinion about Bajaj Finserv service after and before.
  42. 42. 42 3.1 Gross Loan Deployment of Bajaj Finserv
  43. 43. 43 Figure no 3.1 deployment chart
  44. 44. 44 Figure no 3.2 business performance year by year
  45. 45. 45 Figure no 3.3 performance trend Explanation: Consumer Durable business: Continued its strong momentum and disbursed 667K cases in Q2 (YOY growth of 37%). Extended summer and delayed monsoon with proactive capability builds, geo expansion and category extensions have helped deliver solid growth momentum in first half. Lifestyle Finance business: Disbursed 82 K accounts (241 % growth) which was highest for any quarter driven by Digital products. The tie-ups with leading manufacturers like Samsung, Apple, Sony and leading national & regional wireless chains enabled the business register this growth. However furniture financing business grew only by 25% YOY due to de-growth in the furniture industry. Making structural changes to bring in dedicated focus.
  46. 46. 46 Cross sell: Momentum across Lending and Fee products remained strong. Salaried personal loans business: Continued to grow well with healthy credit performance. Digital channels now contribute 16% of new originations. Rural Lending business: Is tracking ahead of plan and the business has started to be profitable. Company continues to increase its footprint in a measured manner. MSME rural lending launch planning has been initiated and is expected to go live by April 15. Business loans business: continued to grow very well with strong credit performance. Professional business loans now contribute to 15% of Business loans origination. Mortgage business: Remained in a consolidation mode post May 2014 incident. Specific set of initiatives are in progress to re-energize the business. LAS business: Had an excellent quarter supported by new product & renewed channels strategy. Construction Equipment business: is now down to 320 Crs and is in remedial mode. The portfolio is reducing by 25 crs a month and will fully run off by September 2015.
  47. 47. 47 Interpretation: The above graph shows loan deployment of the year, as per the sectors, the growth of the consumer finance sector is more rapidly as compared to the other SME finance and commercial lending sector. Cross selling also boost because of business expansion of consumer durable including lifestyle product. The loan process for CD loan (including life style product) Required documents: The following are the eligibility criteria to apply for a loan: o If you are a salaried person your age should be between 21 years to 60 years. Photo Id Proof Residence proof One cancelled cheque in case of ECS Credit program specific documents ( Any one of the following) Credit Card front side photocopy Visiting Card & Employee Id proof Photocopy of RC book (Not applicable for vehicles registered after 2004 & commercial cars) Bajaj Finserv Lending existing loan Repayment Loan Account Number / Schedule (subject to not later than 18 months old) Any other Bank/NBFC Repayment Schedule Salary Slip Banking Details (latest 6 months) Account Type- OD/ CC
  48. 48. 48 o If you are Self Employed your age should be between 23 years to 65 years. All above documentation doesn’t mean customer would get loan 100%. Case study will clear all these possibilities. CASE STUDY Case No.1 Name of the Applicant: Mr. Ranjeet Kumar Age : 35 year Permanent Address: Mahatma Gandhi Road Nehru Nagar, Near Rajouri Garden New Delhi-110021 Residential Address: Gulmohar Park, ITI Road near ICICI Bank, Aundh Pune -411007 Occupation: Service Company Name: SunGard, pune Salary: 1, 00,000/-PM Purchase of Products I.Samsung LED TV II.Samsung Washing Machine Cost of Products I.Rs.40,000 II.Rs.35,000
  49. 49. 49 Document Required for Loan I.Address Proof:-Bank Statement II.ID Proof: - Pan Card or Voting Card or Driving License. III.Income Proof:-SBI Credit Card (Platinum) Problem Address Proof Mr.Ranjeet Kumar has the address proof but this Address Proof of other city, so as per loan requirement address proof should be of current city Table No.3.4 Case Study 1 Particular Eligibility criteria for loan approval Applicable for Loan Occupation Service  Company Name SunGard  Salary Rs.9,60,000 PA  House Rented  Place(Stay) Aundh  Document Required Address Bank Statement 
  50. 50. 50 Solution:- a. Calculation of EMI and Down payment: Scheme-: 12/4 (Ref.Table No.3.1) Cost of Product-: Rs.75, 000 Down payment -: Rs.25, 000 (Rs.75, 000/12*4) EMI-: Rs.6250*8 Month= Rs.50, 000 b. How to Approve the Loan: I.Minimum Required Salary for taken a loan –Rs.8000/-and Above, So Mr.Ranjeet Kumar has Rs.80000/-PM Salary so he is applicable for loan. Proof ID Proof PAN Card ,Voting Card  Credit Card SBI Credit Card (Platinum)  Products Samsung 40’ LED TV Rs.40,000  Samsung Washing Machine Rs.35,000 
  51. 51. 51 II.As an address proof for taken a loan it is must to Mr.Ranjeet Kumar to submit either Rent agreement or credit card statement which is on current city address. III.As an ID proof requirement he should be provide voting card or PAN Card or Passport. Case No.2 Name of the Applicant: Ms.Smita Badiyani Age: 26 year Residential Address : Bramha Village, Behind Jyoti Restaurant, near Bharat Petrol pump, Kondhwa Pune -411048 Occupation: Service Company Name: Infosys, Pune Salary: 50,000/-PM Purchase of Products I.LG Refrigerator Cost of Products I.Rs.36,000 Document Required for Loan I.Address Proof:-Rent Agreements II.ID Proof: - Pan Card or Voting Card or Driving License.
  52. 52. 52 And marriage Certificate. III.Income Proof:-3 Month Bank Statement. Problem ID Proof As per the documents require for the approval of loan, Ms.Smita Badiyani should submit the ID Proof of she’s current name. Table No.3.5: Case Study 2 Particular Eligibility criteria for loan approval Applicable for Loan Occupation Service  Company Name Infosys  Salary Rs.6,00,000 PA  House Rented  Place Kondhwa  Document Required Address Proof Rent Agreement  ID Proof Marriage Certificate  Bank Statement 3 Month bank statement  Product LG Refrigerator Rs.36,000 
  53. 53. 53 Solution: a. Calculation of EMI and Down payment: Scheme-: 12/4(Ref.Table No.3.1) Cost of product-: Rs.36, 000 Down payment-: Rs.12, 000 (Rs.36, 000/12*4) EMI-: Rs.3000*8 Month = Rs.24, 000 b. How to approve the Loan: I.She has the 50,000 PM salary; the minimum salary should be 8000 PM, so she is applicable for the loan. II.As per the requirement of loan approval document, if lender leaves on the Rent bases then he or she should submit the Rent agreement which would be on Rs.1000/- stamp paper. This document criteria fulfilled by Ms.Smita Badiyani. III.For the ID Proof required the PAN Card, Voting Card and Driving Licenses. Ms. Badiyani has the PAN Card but problem is that she’s is not having the current name i.e. after marriage on the PAN Card. For solving this problem, we have taken the Marriage Certificate along with PAN Card Copy. IV. For the Income Proof required Credit Card, or Existing Customer or any bank loan as well as 3 Month Bank Statement, So she have the 3 Month Bank Statement from Feb to May, and also her 780 score in CIBIL records. Case No.3 Name of the Applicant: Mr.Anurag Kasat Age: 45year Residential Address: Shree Niwas, ITI Road, near Croma Showroom,aundh Pune -411007 Occupation: Service Company Name: Mahindra and Mahindra
  54. 54. 54 Salary: 50,000/-PM Purchase of Products I Sony LED TV Cost of Products I Rs.52, 000 Document Required for Loan I.Address Proof:-Electricity Bill, Telephone Bill, Passport II.ID Proof: - Pan Card or Voting Card or Driving License or Passport III.Income Proof:-HDFC Credit Problem System Error Mr. Anurag Kasat has all the required documents but the actual problem in system, the system shows the Bajaj Dedupe Error it means there is problem in the loan database of Bajaj Finserv lending. Name of the applicant:-Mr.Anurag Kasat (Existing Customer) Table No.3.6: Case Study 3 Particular Eligibility criteria for loan approval Applicable for Loan Occupation Service  Company Name Mahindra and Mahindra 
  55. 55. 55 Salary Rs.6,00,000 PA  House Own  Place Aundh  Document Required Address Proof Passport  ID Proof Passport  Credit Card HDFC Bank  Product Sony LED Rs.52,000  Solution:- a. Calculation of EMI and Down payment: Scheme: 10/0 (Ref.Table No.3.1) Cost of product: Rs.52, 000 Down Payment: Rs.250 (Processing Fess) EMI: Rs.5200*10 Month=Rs.52, 000 b. How to approve the loan: I.Mr.Anurag Kasat has the Existing Customer of Bajaj Finserv Lending, for the Existing Customer can pay the down payment through cash as well as credit or Debit Card. So Mr.Kasat pays the down payment by cash
  56. 56. 56 II.Due to the system Error the loan has been rejected, When the Mr.Kasat has produced the copy of NOC to the Bajaj Finserv Lending. Then the Company sorts out his problem by updating the previous loan history of Mr.Kasat. III.For reflecting the database changes system required the duration of one month so after reflecting the changes his loan get approve Case No.4 Name of the Applicant: Mr.Akshay Kadam Age: 27 year Residential Address: Swapnagari society, ajmera Near H.A.Ground Pimpri, Pune -411018 Occupation: Service Company Name: Alfa Laval Salary: 30,000/-PM Purchase of Products I.Sony LED TV I.Samsung Washing Machine Cost of Products I.Rs.42,000 II.Rs.30,000 Document Required for Loan I.Address Proof:-Electricity Bill, Telephone Bill, Passport II.ID Proof: - Pan Card or Voting Card or Driving License or Passport III.Income Proof:-ICICI Bank Credit Card Problem ID Proof Name
  57. 57. 57 Name of Mr.Akshay kadam on the credit card and Pan Card is mismatch i.e.Akshay Kadam on credit card and Akaash Kadam on PAN Card. Name of the applicant:-Mr. Akshay Kadam Table No.3.7: Case Study 4 Particular Eligibility criteria for loan approval Applicable for Loan Occupation Service  Company Name Alfa Laval  Salary Rs.3,60,000 PA  House Own  Place Pimpri  Document Required Address Proof Electricity Bill  ID Proof Pan Card  Product Sony LED Rs.42,000  Samsung washing Machine Rs.30,000  Particular Sony Samsung
  58. 58. 58 Solution: How to approve the Loan: I.Mr. Akshay Kadam has the entire document i.e. Address Proof, ID Proof, and Income Proof, but he is only having the problem with ID Proof. II.For solving the ID Proof problem we have taken the Govt. Gadget Letter from him. Case No.5 Name of the Applicant: Mr. Avinash Thite Age: 50 years Permanent Address: Karve Road, near Dashabhuja Ganesh Temple, Kothrud Pune-411004 Occupation: Own Business Company Name: Omkar Trading Purchase of Products I.Sony LED TV II.Sony Home Theater Scheme 18/4 12/4 Cost of product Rs.42,000 Rs.30,000 Down Payment Rs.9,336 (Rs.42,000/18*4) Rs.10,000(Rs.30,000/12*4) EMI Rs.2,334*14 Month=Rs.32,676 Rs.2,500*8 Month=Rs.20,000
  59. 59. 59 Cost of Products I.Rs.52,000 II.Rs.35,000 Document Required for Loan I.Address Proof:-Electricity Bill, Index-II, Telephone Bill. II.ID Proof: - Pan Card, Voting Card, Driving License. And Passport. III.Income Proof: - Credit Card, Any Bank Loan. Problem Case rejected due to less CIBIL Score CIBIL Scores Required Criteria:- Minimum CIBIL Score required for loan approval is 750 or more; Mr. Avinash Thite has 710 CIBIL Score, His score below the criteria so loan has been rejected. 4.2.1: Application Process for Loan Approval:  First pitch the customer,after pitching the customer the next process is to explore them overall loan process of 0% interest sceheme .Once the customer is agreed, then ask the customer for the required documents like ID- proof, Address proof i.e voter ID,driving licence,aadhar card and cancelled cheque etc to approve the loan.After compliting the submition procedure of documentation,the next step is to decide the surrogate of the customer.  Customer should be fill up the application form,then the details of customer get stored by the executives in to the sales force softwear.
  60. 60. 60  Once all this loan process is done, the unique case ID will be generates. Then all the control goes in to the hand of company approval department.  After approval of loan , customer should sign the agreement document (which includes the terms and conditions), then next process is to generate the invoice of loan and product amount.  On the basis of invoice,memo of disbursement is gets generate.  Along with the loan procedure documents, disbursment memo will get forward to the bajaj finserv , Pune branch office premises. Then all the attached documents are scrutinze by the operational department of bajaj finserv’s.  Once the loan procedure of the company is satisfied then this douments get sealed by the approval stamp.
  61. 61. 61 Figure no 3.9 whole processes
  62. 62. 62 Surrogates Required for Loan Approval: There are three types policy are as below: A. WOW Policy B. WOW Lite Policy C. WOW Extension Policy WOW Policy: WOW Policy mostly used for those customer who are in the listed companies, have the credit card, as per the rule of company the maximum Loan to Value(LTV) 83% to 90% it depend on the customer document. Following are the Surrogates included in that Policy: 2.1 Credit Card (Max LTV 83% up to 125000) 2.2 Listed Companies (Max LTV 90% up to 100000) 2.3 RC of Vehicle (Max LTV 83%) 2.5 Existing Customer (Max LTV 90% up to 50000) 2.6 CIBIL Score (Max LTV 90% up to 125000) 2.7 Salaried (Max LTV 90% up to 125000) 2.11 Instant WOW Lite Policy: WOW Lite Policy used for those customers whose net exposure is up to25000 to 35000.and as per the company rules the maximum Loan to Value (LTV) is 83% for all surrogates. Following are the Surrogates included in that Policy: 3.1 Credit Card (Max LTV 83% up to 35000) 3.2 Listed Companies (Max LTV 83% min salary 7500) 3.3 RC of Vehicle (Max LTV 83% up to 25000)
  63. 63. 63 3.5 Existing Customer (Max LTV 83%) 3.6 CIBIL Score (Max LTV 83%) 3.7 Salaried (Max LTV 90% Min net salary 7500) Figure no 3.10 amount limit
  64. 64. 64 Diversified lending business model 2014-15 2013-14 2012-13 2011-12 2010-11 2009-10 2008–09 Figure no 3.11 diversification Consumer Personal loan Insurance EMI Credit Card small product without EMI Loans + Cross-sell + services + card + Partnership + IT product + card Durables & 2-wheelers + Historical business model 3 data TAT. No cross sell 100%POS Link up.3 Min-TAT Started PL. cross sell to existing Good customer s Launched POS ins. cross sell. Launched project 3sec-TA. Launched post sale insurance cross sell. Launch EMI card – 3 2nd TAT Launch co brand Credit card. Lifestyle Launched virtual card Consumer finance Cross-sellAcquisition Competitive Advantage • Data Mart and Cross sell capabilities • Customer Lifecycle Management • Low ticket - high volume transaction domain Specialization
  65. 65. 65 Interpretation (figure 3.11) Bajaj Finserv took gutsystep in 2008-09 to invest in consumer loan business where many giants credit organization was withdrawn from consumer loan business as a consequence ofaffectedbycrisisdueto poorcredit recordin2008-09. Then every year they launched unique and effective ideas products services and highly sophisticated technology to increase sales. The key thing was Bajaj integrated its business verynicelyso risk factoralwaysdividedamong businessunits. In2102-13 they made customer friendly systemwhere customer canuse his emi card and gets approved loan in few minutes which was highly successfully model for them. Now EMIcardisthe mainfactorincustomerretentionaswellas theirservices. Bajaj Finserv disburse files gets double when they started providing loan on lifestyle productslike(smallapplianceswaterpurifier,allit products)
  66. 66. 66 Strong Distribution Reach F i g u r e n o 3 . 1 2 g e o g r a p h i c m
  67. 67. 67 Figure no 3.12 performance Interpretation (figure 3.12) Distribution is also one of the important factors that’s playing key role in Bajaj finserv success. They quickly realize the value of placing the product. In 2010 to 2015 era where CD loan demand was increasing that time Bajaj had executive in each and every store, merchant,shopswho aredealing indurableproducts. You can see that how the distribution were increase in between 2010 to 2015 all just becauseofperfect staffingandreaching byterritory.
  68. 68. 68 Chapter - IV FINDINGS  Bajaj Finserv became necessary for almost every consumer who wants to purchase product on credit.  Other competitors are also slowly developing and creating business for them. Which has been hurting Bajaj Finserv cross selling opportunity.  Bajaj Finserv has been rapidly growing in integrated technology. Virtual card, Retail Finance is result of that.  some potential customers are diverting to competitors due to low cibil score although they had good current record  Some EMI card holder get frustrated when they unable to get same process outside of city.  Some customers are complaining that in some of retail outlet Bajaj Finserv is taking processing fee like kings electronics, Sargam, Snehanjali Vijay Sales.
  69. 69. 69 Chapter– V CONCLUSION  Bajaj Finserv has very strong sales team in loan sector because it’s very challenging task to satisfy educated customer.  The project gives an insight to the awareness rate in the population of thane city.  Due to Bajaj Finserv lending, credit card sector get booster people started to show willingness to disposal of their income  Bajaj Finserv now felling a pinch from their competitor specially by capital first, HDFC
  70. 70. 70 Chapter-VI RECOMMENDATION  Bajaj should revise their policy regarding cibil score.  Bajaj should provide loan to EMI card holder from outside the city at minimal document i.e. as per available document with consumer.  They must increase their sales force on Festivals like diwali, gudipadwa, independence etc which can be give them 20-25% growth in sale at store. Because insufficient manpower at many stores leading to other finance company taking advantage or consumer moving to other finance.  Educate the customer that everywhere Bajaj Finserv process is standardized. some dealer has own policy so they charge processing.  Educate the customer about Bajaj technology like Bajaj app, online approval which are USP of Bajaj product and by all these customer has no need to go anywhere for his problem it could be resolved by sitting at home only.
  71. 71. 71 BIBLIOGRAPHY WEBLIOGRAPHY  https://www.bajajfinserv.in/default.aspx  https://www.bankbazaar.com/reviews/bajaj-finserv/consumer- durable-loan.html?reviewPageNumber=5  http://www.managementparadise.com/sushildesai/documents/14470/a -project-report-on-loan-procedure-of-consumer-durable-product-at-bajaj- finserv-lending/  http://www.managementparadise.com/Ahanablueeye/documents/2095 7/report-on-consumer-durable-loans/ BIBLIOGRAPHY  Sushil mahadev desai, A Project Report on Loan Procedure of Consumer Durable Product At Bajaj Finserv Lending, Oct 16, 2013  Ahana pal, Report on Consumer Durable Loans, Sep 6 2014
  72. 72. 72 ANNEXURE 1. Are You Aware About Consumer Durable Loan Availability? a) Yes b) No 2.Have You Ever Taken CD Loan? a) Yes b) No c) Not sure 3.Do You Own EMI Card Of Bajaj Finserv? a) Yes b) No c) Not sure 4. Which Payment Mode You Feel Is Convenient To Buy Consumer Durable Products? a) Bajaj b) cash c) credit card d) any of above
  73. 73. 73 5.Scale Effectiveness Of Bajaj EMI Card low 1 2 3 4 5 high 6.Which Finance Company You Will Prefer For Consumer Durable Loan? a) Bajaj b) Capital first c) HDFC d) other 7.Which Consumer Are Taking Loan? a) existing b) new 8.Most Preferable Scheme By Consumer? a) 12/4 b) 10/2 c) 18/4 d) Promotional
  74. 74. 74

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