A Project Report on

A Study on loan procedure of customer durable products

and market analysis of store
A Summer Internship Project report
Submitted to

AURORAS BUSINESS SCHOOL

In Partial Fulfilment of the summer internship programme of
Post Graduate Diploma in Management (PGDM)
By

B.SEKHARA

DM-11-033

Auroras Business School,

Near NIMS, Punjagutta, Hyderabad. - 500 482
Tel: 040 2335 1891/92, 2335 0061/692 URL: www.absi.edu.in e-mail us: info@absi.edu.in

Certissficate
This is to certify that the project work entitled

A Study on loan procedure of customer durable products and

market analysis of store
is the bona-fide work done by

B.SEKHARA

DM-11-006
As a part of their curriculum of
Post Graduate Diploma in Management (PGDM),
Auroras Business School, Hyderabad

Internal Guide

SIP Co-ordinator

Director

Auroras Business School, Near NIMS, Punjagutta, Hyderabad. - 500 482

Tel: 040 2335 1891/92, 2335 0062/692 URL: www.absi.edu.in e-mail us: info@absi.edu.in

DECLARATION
This is to inform that I, have completed a project work on A Study on loan
procedure of customer durable products and market analysis of storewhile pursuing
PGDM in Auroras Business School.

I hereby declare that this project report is the original work carried out by me as part of
my academic course and has not been submitted to any other University or Institution for the
award of any degree or diploma.

Name

B.SEKHARA

Roll No.

DM-11-033

Signature

ACKNOWLEDGEMENT

I would like to thank everyone who is involved in assisting me in producing this project report
by bringing out creativeness in this project.

I would like to take this opportunity to thank my company guide Mr.RAVI TEJA,Sales manager
BAJAJ FINSERV, Project guide Mr.G.SRINIVAS Director and Mr.Sunil Zephaniah faculty,
Auroras Business school, for their undeterred guidance for the completion of the report.

I would also like to thank all the staff of ITC, who inspite of their busy schedule has co-operated
with me continuously and indeed, their valuable contribution and guidance have been certainly
indispensable for my project work
My parents need special mention here for their constant support and love in my life. I also thank
my friends and well-wishers who have provided their whole hearted support to me in this
exercise. I believe that this effort has prepared me for taking up new challenging opportunities in
future.

I hope that I can build upon the experience and knowledge that I have gained and make a
valuable contribution towards this industry.

With Regards and Gratitude

B.SEKHARA

COMPANY PROFILE
Introduction:
What started off as a sugar manufacturing factory in 1931 has grown to become one of the countrys
largest business houses? With activities that encompass a whole range of industries, spanning automobiles
(two-wheelers and three-wheelers), home appliances, lighting, iron and steel, insurance, travel and
finance.
Bajaj Finserv values:
We respect the opinions and decisions of others
. We encourage and back people to do their best. Empowerment
We are willing to learn and adapt to the environment, our partners and customers evolving needs.
Flexibility
We always strive to change the status quo.
We innovate with new ideas and energies with a strong passion and entrepreneurial skills.
Entrepreneurship
We believe we must work with honesty, truth and the inmate desire to do well. Transparency
We are driven by the desire to create a meaningful difference in society. Impact

PRODUCT PROFILE
Bajaj Finserv Lending offers loans for various needs. We offer loans for Bajaj Auto Two
Wheelers under the name of Bajaj Auto Finance Ltd. We offer Consumer Durable Loans, Personal Loans,
Loan against Property, Small Business Loans, Construction Equipment Loans, Loan against Securities
and Insurance Services under the name of Bajaj Finserv Lending.
Bajaj Finserv Lending is one of the most diversified NBFCs in the market catering to more than 5 million
customers across the country.
Apart from being a well-recognized organization, they pride us for holding the highest credit rating of
FAAA/Stable for any NBFC in the country today. The product offerings include Consumer Durable
Loans, Personal Loans, Loan against Property, Small Business Loans, Two-wheeler and Three Wheeler
Loans, Construction Equipment Loans, Loans against Securities and Insurance Services.

ORGANIZATIONAL HIERARCHY
Introduction:
A key issue in accomplishing the goals identified in the planning process is structuring the work
of organization. Organizations are group of people, with ideas and resources working toward common
goals. The purpose of the organizing function is to make the best use of the organizations resources to
achieve organizational goals. Organizational Structure is the formal decisions making framework by
which job tasks are divided, grouped and coordinated. Formalization is an important aspect of structure. It
is the extent to which the unit of organization is explicitly defined and its policies, procedures and goals
are clearly stated. It is the official organizational structure conceived and built by top management. The
formal organization can be seen and represented in chart form. An organization chart displays the
organizational structure and shows job titles, lines of authority and relationship between departments.
Organizational Structure allows the expressed allocation of responsibilities for different functions and
processes to different entities. Ordinary description of such entities is as branch site, department, work
group and single group of people.

HISTORY OF BAJAJ FINSERV LENDING

Bajaj Finserv was formed in April 2007 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.
The wind power project, the stakes in the life and general insurance companies and
consumer finance along with their respect tive assets and liabilities got vested in Bajaj Finserv
Limited. 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 industries. The constantly changing demographics and dynamics of the Indian
economy, has led to creation of various needs of the average Indian customer. The Indian
customer now demands proper avenues of channelizing their savings, financial protection and is
also desirous of spending more on valuable goods and services. All these wants need to be met
by dynamic players in the financial services space.
Bajaj Finserv was formed specifically to cater to these needs. The company was also
formed to touch and improve the lives of a growing number of people in the country, and in
doing so, deliver superior corporate values to its shareholders. The operating companies carry
with them the Bajaj brand, which carries with it decades of commitment to business ethics,
integrity and highest standards of fiduciary responsibility.

CORPORATE HIERARCHY

Bajaj Finserv Group Summary

BAJAJ FINSERV|LENDING

A 25 year old non bank finance

company
Diversified consumer, SME &
commercial lender in india
82 cities presence with over 4,200
distribution franchise
BAJAJ|ALLIANZ
2nd largest private general insurer in
India
Offer wide range of general insurance
viz. Motor, Health & Corporate in India
Strong franchise built on fast &
efficient customer services
BAJAJ FINSERV
Bajaj finserv is the financial services
arm of the Bajaj group with business
interest in "Lending", "Protection" and
"Wealth management" through its
various subsidiaries
BAJAJ|ALLIANZ
2nd largest policy acquire amongst
private insurers.10.5 lac policies in
FY12
2nd largest profitable life insurer in
private sector in FY12
1,044 Branches with over 173K agents
BAJAJ FINSERV|WEALTH MANAGEMENT A new business diversification for BFS
Launched retail financial advisory
business in 04 cities in FY11
Recieved SEBI approval to launch
mutual fund business. proposed JV with
Aaalianz

EXECUTIVE SUMMARY

The project allotted to me with the title was Role of Bajaj Finance in Consumer Durable
Sales. The objective behind this project was to primarily focus on Modus Operandi of Bajaj Finance
for Finance of Consumer Durable products. This required a fist hand experience in understanding end
to end process flow for loans processing to payment disbursement and coming with Suggestions to
make experience more Delightful for customers and channel partners.
I was also focusing on way of operations at 2 types of Outlets: Owner Driven and LFRs and
Bajaj Finances SWOT analysis at both these outlets. Competitors working (CC or Capital First)
Reliance Capital Ltd viz a viz BFL and stress areas will have to focused along with.
During the project I have analyzed major financial areas of Bajaj with its peer group and
observed their trend with respect to the Industry trend which helped me to gain better insight of
market condition of these companies. My sip started with placing me at Croma Store, South Ex,
where I have learned basic things about consumer durable goods and how it is offered to customers. ,
I had to go daily from morning 11:00 am to evening 8:00 pm. Where I have to deal with the customer
and tell them about 0% finance plan which is available easily on almost all brands of consumer
durable goods. Time to Time I have asked the customers for their suggestions and feedback to
improve this service in better way.
This process helped me to understand customer behavior and a way to approach them. As
customers are of different types with different attitude, so overall this experience was good for me. In
third phase of project I was working as an Employee of Bajaj Finserv Lending. I was dealing with
proper customer, provided them loans by completing their files and getting the approval online form
Bajaj Server called as Galaxie Portal. This process helped me to better understand the service
procedure of Bajaj Finserv Lending.

INTRODUCTION
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.

Products Covered
0% interest Consumer Durables Finance is available on a wide range of products and in
over 101cities across India. Here Mentioned below the products covered

LED/LCD/CTV

Washing Machines
Microwave Ovens
Refrigerators,
Cameras/Camcorders
Dishwashers
Generators
Cooking Range products
Dryers
Laptops / Desktops (Select)
Smart phones (Select)
Air purifiers/Water Purifiers/R.O.
Music Systems
Inverters
Air conditioners

Document Required for Loan

I. Address Proof :- Electricity Bill

Telephone Bill.
II. ID Proof

: - Pan Card, Voter Card,

Driving License. and Passport.

III. Income Proof

: - Credit Card and Any Bank Loan.

iv. Other documents : cancel cheque , photo

CIBIL Scores Required Criteria:Minimum CIBIL Score required for loan approval is 750 or more.
Ex:- Mr.Shiva prasad has 710 CIBIL Score, His score below the criteria so loan has been
rejected.

Scheme chart for loan approval

EMI card

RECOMMENDATIONS PROPOSED FOR EACH STAGE:

There are several recommendations:
1. Bajaj Finserv will give some more emphasis on advertising so that more number of peoples
will attract. As many of them dont know about it so they are a bit conscious when our executives
told them about the plan. If they know well in advance, then obviously they will come prepared
to take the financial help from Bajaj Finserv.
2. Every mega store required minimum of 3 executives, with 3 separate systems so that
customer dont have to wait for some other customer to finish their procedure.
3. Some customers were facing problem that they are not getting EMI card even after 3
installments, I think that should be checked because it will tamper the goodwill of the company.
4. Also one more thing can be changed is that women can be given some more emphasis as an
executive as customers will have more belief in them.

SURROGATES REQUIREMENTS FOR LOAN APPROVAL:

a. WOW
2.1 Credit Card
Silver 25k
Gold 50k
Platinum, Titanium, Visa Signature, Diner, American Express 100k-125k
2.2 Listed Company (Government employee and listed company)
Junior level 25k
Middle level 50k
Senior level 100k
2.5 Existing Customer 50k
2.6 CIBIL Score
< 700 Rejected
>700 but < 800 50k
> 800 100k
2.7 Salaried
15, 000 to 24, 999 25k
25, 000 to 49, 999 50k
Above 50, 000 50k
2.11 Instant 35k
2.21 Debit Card Normal 15k
Salaried 35k
2.22 EMI Card Upto 1 lakhs
b. B. WOW Lite
3.1 35k
3.2 35k
3.3 35k
3.5 35k
3.6 35k
3.7 35k
3.11 35k
3.14 35k
3.21 15k
3.22 35k
c. C. WOW Extension
5.1 75k
5.2 75k
5.3 35k
5.5 50k
5.7 75k
5.11 35k
5.14 75k
5.21 15k
5.22 75k

Benefits of extended warranty

We deploy technology and apply innovation to create unique and compelling
propositions that help you do what you always wanted to do. And you will satisfy with Extended
Warranty .
Upto 3 years additional warranty
And above the standard manufacture warranty offered on your consumer durable.
IRDA(Insurance Regularity and Development Authority) approved.
Extended Warranty from Bajaj Finserv is an IRDA approved. While there may be other warranty
programs offered in the market.

OBJECTIVES OF THE STUDY

1. This project will primarily focus on Bajaj Finance for Finance of Consumer Durable products.
This will require a fist hand experience in understanding end to end process flow for loans processing to
payment disbursement and coming with Suggestions to make experience more Delightful for customers
and channel partners.
2. Focus on Bajaj Finances SWOT analysis
3. Competitors Capital First, Reliance Capital Ltd, Tata capital

Scope of the study

METHODOLOGY
The study is made on the basis of secondary data and primary data. The annual report of
the firms was a great help in collection of necessary information. Methodology is a systematic
procedure of collecting information in order to analyze and verify a phenomenon. The collection
of information is done through two principal sources.
Primary Data:
It is the information collected directly from sales finance department for further studies, it was
mainly through interviews with concerned officers and staff, either individually or collectively, sum of the
information has been verified or supplemented with personal observation and real timework experience.
Secondary Data:
Secondary data is the published data. It is already available for using and its saves time. The mail
source of secondary data are published market surveys, government publications advertising research
report and internal source such as sales, sales records orders, customers complaints and other business
record etc. the study has also depended on secondary data to little extent, which is collected through
internal source.

RESEARCH DESIGN:
A research design is the arrangement of conditions for collection and analysis of data in a manner
that aims to combine relevance to the research purpose with economy in procedure Research Design is
the conceptual structure within which research is conducted. It is the overall operational pattern or
framework of the project that stipulates what information is to be collected from which sources by which
procedure.

Categories of Research Design

Exploratory Research:
To gain familiarity with a phenomenon or to achieve new insight into it. Studies with this object
in view are termed as exploratory or formularize research studies.

Descriptive Research:
To portray accurately the characteristics of particular individual, situation of a group.
Studies with this object are view is known as descriptive research studies.

Empirical Research:
To gain knowledge by means of direct and indirect observation or experience. Empirical
evidence can be analyzed quantitatively or qualitatively.

Considering the importance of decision areas, it was decided to undertake an exploratory

survey. Exploratory research is concerned with discovering the general nature of the problem and
the variables that relates to it.
When I was making this project the prime thing was to study Balance sheet and P & L
accounts of different firms. I have done that by collecting the required information through firms
manual and data available on internet. During the SIP, the Research Method which I applied was
Exploratory and Descriptive research which help me to gain more insight of the operation which
is done during the Consumer Durable goods financing. During the project I got to know how
Bajaj Finserv Lending approves a Loan to various Customers on the basis of different Document
available with them. I explored different tools and techniques to convert a Credit Card & Cash
buyer into Finance buyer, and also how to build a good relationship with the sales person as they
are main key to get customer and not to let the competitors win. In Finance sector there is always
a win-lose situation exist but during the peak season I observed that win-win situation comes into
picture but only for a short duration.
I also learned how the sales executive use their instinct to judge a customer is genuine or
not but this not always help, sometime a genuine customer becomes a fraud customer which
directly harm the Sales Executive incentive status as there is company policy to stop the
incentive whenever there is fraud case pop up from the concern SE.

FINDINGS
Advantages of BFL scheme over its competitors:
As there are some disadvantages in going through BFL, but there are some advantages as well over its
competitors.
1. BFL provides loan on consumer durable products at 0%, only a nominal amount of file charge is taken
from the customers. So any customer can take this scheme, therefore they dont have to pay the complete
amount and also they can enjoy interest on that amount.
2. While paying through credit card, that much amount is blocked from the card. As there is monthly limit
in each card, so it is wise to go for BFL
3. If a customer uses credit card on payment, and doesnt able to maintain the minimum balance on the
next month, them he has to pay fine on the complete amount, whereas BFL customers dont have to pay
fine on the whole amount if they unable to pay next time. Fine is being charged on the next month
installment only.
4. Credit card is not given to every customer, so those customers who cant afford credit card can
definitely go for BFL.
5. BFL provided loan on many type of surrogates, not all company provides loan on these many
surrogates.
6. If a company is taking finance from BFL then he will get easily insurance policy from Bajaj Alliance
without any verification on insurance part.
7. Flexible EMI scheme in many products are available. BFL provides many schemes such as 12/4, 10/2,
18/6, 24/6 etc. Customer can choose any EMI option according to their paying capability
8. From the above ratios we can find that instead of not performing in several areas Bajaj still got a good
market price, this can be because of being an old player in the market with huge brand loyalty.
9. It has also been observed that Bajaj is showing more conservative behavior by not taking loan instead
cheaper interest rate and still going for owner funds, this will not help them in tapping new markets.
BFL regularly provides offers to its customers in festive season. Some offer even consist schemes such
as 10/0; in which customer doesnt have to pay anything as the down payment.

ANALYSIS
Competitors Overview:
Capital First
Capital First was formed in 2012 as a result of a Management Buyout of an existing
NBFC. The promoter of the company is the highly reputed Global Private Equity Fund, Warburg
Pincus, United States of America, with Capital of USD 45 billion (Rs. 2,49,819 Crores). Capital
First is listed on NSE and BSE, and has a record of consistent growth & profitability.
In September 2012, Warburg Pincus acquired 70% stake in the company for Rs. 810 Crores,
including fresh investment of Rs. 100 Crores into the company which was the largest FDI in
India in financial services in 2012-13. Warburg Pincus is a leading and highly reputed global
private equity firm. Founded in 1966, Warburg Pincus is among the largest Private Equity firms
in the world, and highly renowned for corporate governance. In India, Warburg Pincus has
supported and built large and reputed corporations like HDFC Limited, Kotak Mahindra Bank
Limited, Bharti Tele-ventures Limited and Ambuja Cements Ltd.
In November 2012, the long term credit rating of the Company changed to AA+ from the
existing AA- by leading credit rating agencies which recognize the experienced management
team, strong business model, strong controls and processes, high credit quality, conservative
asset liability management with no tenor mismatches and strong promoters in the Company.

During May 2013, Capital First Home Finance Pvt. Limited (CFHFPL), a wholly owned
subsidiary of Capital First Limited (CFL), received the Housing Finance Company (HFC)
License from National Housing Bank (NHB). CFHFPL is now operating as an HFC and
growing its housing finance assets gradually.
In September 2013, CFL decided to close its broking business including securities broking,
commodities broking and property services to focus on the core lending business focusing on the
retail finance. The Company has completed the winding up of the operations related to the
broking business and is in the process of surrendering its broking licenses.
Following the first round of investment, Warburg Pincus further infused an additional
equity of Rs. 128 Crores of Tier I capital in March 2014 to further the growth plans of the
company. Additionally, in March 2014, another marquee and highly reputed name of the
Financial Services world, HDFC Standard Life Insurance Company Limited from the HDFC
group, have infused Rs. 50 Crores which again contribute to the Tier-I capital. HDFC Life is a
leading life insurance company in India, having its registered office at Mumbai 400 011. HDFC
Limited, which owns 72.37% of HDFC Standard Life Insurance Company Ltd, is a leading and

reputed Housing finance institution in India.During FY13 and FY14, the Company scaled up all
the MSME and retail finance businesses and the Asset Under Management (AUM) cross Rs.
10,000 Cr in the first quarter of FY15. The no of customers financed since inception also crossed
the figure of 1.0 million during this time.
-The Company has changed its name from Future Capital Holdings Ltd to Capital First Ltd.
2013
- The Company has appointed Mr. M S Sundara Rajan and Mr. Hemang Raja as Additional
Directors of the Company
- Capital First Ltd announced that rating agency, Credit Analysis & Research Ltd (CARE) has
assigned CARE AA+ rating to the company.
- The Company has paid Dividend of Rs. 1.80/- per equity share of Rs. 10/- each (18%).
2014
- The Company has paid Dividend of Rs. 2/- per equity share of Rs. 10/- each (20%).
- Credit Analysis & Research Limited ("CARE") has assigned 'CARE AA' (Double A) rating for
fresh limit of Rs. 50 Crore to the Company's Perpetual Debt Issue.

Reliance Capital:
Reliance Capital Limited (RCL) was incorporated in year 1986 at Ahmedabad in Gujarat
as Reliance Capital & Finance Trust Limited. The name RCL came into effect from January 5,
1995. In 2002, RCL shifted its registered office to Jamnagar in Gujarat before it finally moved to
Mumbai in Maharashtra, in 2006.
In 2006, Reliance Capital Ventures Limited merged with RCL and with this merger the
shareholder base of RCL rose from 0.15 million shareholders to 1.3 million. RCL entered the
Capital Market with a maiden public issue in 1990 and in subsequent years further tapped the
capital market through rights issue and public issues. The equity shares were initially listed on
the Ahmedabad Stock Exchange and The Stock Exchange Mumbai. Presently the shares are
listed on The Stock Exchange Mumbai and the National Stock Exchange of India.
RCL in the initial years engaged itself in steady annuity yielding businesses such as
leasing, bill discounting, and inter-corporate deposits. Later, in 1993 diversified its business in
the areas of portfolio investment, lending against securities, custodial services, money market
operations, project finance advisory services, and investment banking. RCL was accredited a
Category 1 Merchant banker by the Securities Exchange Board of India (SEBI). It had lead

managed/co-managed 15 issues of an aggregate value of Rs. 400 crores and had underwritten 33
issues for an aggregate value of Rs. 550 crore. All these companies were listed on various
exchanges.
RCL obtained its registration as a Non-banking Finance Company (NBFC) in December
1998. In view of the regulatory requirements RCL surrendered its Merchant Banking License.
RCL has since diversified its activities in the areas of asset management and mutual fund; life
and general insurance; consumer finance and industrial finance; stock broking; depository
services; private equity and proprietary investments; exchanges, asset reconstruction; distribution
of financial products and other activities in financial services.

Tata capital
Tata Capital Limited was established in 2007 with the sole aim of providing focused and
transparent financial solutions to help people realize their dreams. Being a subsidiary of the
legendary Tata Sons Limited, we strive hard to make this happen.
Our pursuit gave birth to Tata Capital Financial Services Limited, a one-stop financial service
provider that caters to the diverse needs of retail, corporate and institutional customers across
businesses.
Registered with the Reserve Bank of India as a Systemically Important Non Deposit Accepting
Non Banking Financial Company (NBFC), the company operates across various areas of
business namely the Commercial Finance, Infrastructure Finance, Wealth Management,
Consumer Loans and distribution and marketing of Tata Cards.
Today, Tata Capital Financial Services Limited is 100 branches old and counting.

SWOT ANALYSIS OF BAJAJ FINSERV LIMITED

CONCLUSION

SUJJESTIONS
1) Customer thinking that Bajaj will take some hidden charges from them, if they take loan
at 0% from Bajaj. This can be possible by removing wrong myth in the minds of the
customers. Therefore, Bajaj should promote them as a good brand.
2) Company should provide gifts to EMI card holders on every purchase through card
3) On festival occasions offers should be entertained for new customers
4) Customer executives have to sell Bajaj Allianz insurance along with the finance scheme.
So they focus mainly on those customers who are interested in taking insurance plan.
5) PANCARD mandatory should not entertained in consumer loans which effects the sales

RECOMMENDATIONS
1. Unawareness of customer about 0% finance scheme. Therefore, Bajaj should make its customers aware
about the new schemes.
.
2. Customers dont carry all the required documents all the time and some of them dont want to come again.
This happens mainly due to lack of proper information.

3. Bajaj should work on its HR part as I found it bit demotivating for the employees when they dont receive
their incentive when any file get blocked, they have to work out any other way to deal with these situations.
4. The quality of hiring of support staff is not up to the mark as they fail to serve the customer in absence of
SE.
5. More scheme plan should be incorporated for non-Credit card user as they are more in number and are more
prospecting customer.

APPENDIX

BIBLIOGRAPHY
https://loancustomers.bajajfinance.com/_layouts/Images/Experia/FAQPDFs/BOOK/files/basic-html/page4.html
https://www.bajajfinserv.in/about-us/about-bajaj-finserv.aspx
http://economictimes.indiatimes.com/topic/Tata-Capital
http://www.tatacapital.com/overview.htm
http://www.capitalfirst.com/
http://www.capitalfirst.com/pdfs/investor-relations/Capital-FirstCorporate-Presentation-Q4FY16.pdf