project on consumer durable loans in bajaj finance

“A PROJECT REPORT ON CONSUMER DUREBLE LOANS”

“BAJAJ FINSERV”

A PROJECT REPORT Submitted by

M.Kiran Kumar Roll No: 6071-13-684-014

SUMMER INTERNSHIP PROJECT Bachelor of Business Administration

RATAN GLOBAL BUSINESS SCHOOL Approved by AICTE, Ministry of HRD, Govt. of INDIA Campus: Pattabhi nagar, Ravelly.NH-44, Toopran Hyderabad. A.P. Ph: 08454-236100, 9849685350

kiranmadamshetty@gmail.com Page 1

Acknowledgement:While submitting the project on “CONSUMER DOURABLE LOAN” I avail this opportunity to express our gratitude towards all those all those who guided and helped to finish this project successfully.

I am grateful to Mr. Murthi(Team leader), project guide, BAJAJ FINSERV, Hyderabad for his inspiring guidance and kind encouragement.

I express my deep sense of gratitude and heart full thanks to my executive Mr.sampath and Ravi kumar those valuable guidance and encouragement, which has played a major role in completion of this Project work. His esteem suggestion and encouragement from time to time has always Helped in the completion of this project.

I express my since thanks to Dr.B.Ratan Reddy Sir, President, RGBS for

Providing necessary facilities in college for this project.

I am thankful to my teaching staff for their valuable guidance and encouragement in

The completion of this project.

I am grateful to my non teaching staff for their moral support and co-operation.

I am thankful to my parents for their inspiring guidance and kind encouragement.

(M.Kiran kumar)

DECLARATION

I M.Kiran Kumar student of BBA, RATAN GLOBAL BUSINESS SCHOOL,HYDERBAD

Hereby declare that this project report entitled “CONSUMER DURABLE LOAN”

At BAJAJ FINANCE submitted is my original work.

The finding of the report are based on the information collected by me during the study

And the result embodied in this study has not been submitted to any other university for

The award of degree.

M.Kiran kumar

PLACE:

CONTENTS. Name of the content

Introduction

Need for the study

Scope for the study

Objective of the study

Consumer durable loans Benefits &features

The loan process

How many new and existing customers are taking loans

What is an EMI card and Advantages of EMI card

How to apply EMI card

Difference between Bajaj finance and other finances

Finance analysis of Bajaj finance

Bajaj finance store sale report(malakpet)

Who is the competitor for Bajaj finance

Suggestions

Conclusion

Bibliography

INTRODUCTION About Bajaj Fiserv

Bajaj Fiserv Limited is the holding company for the financial services businesses of the Bajaj Group. Its insurance joint ventures with Allianz SE, Germany namely Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited are engaged in life and general insurance business respectively. Its subsidiary Bajaj Finance Limited is a Non Banking Finance Company engaged in consumer finance, SME finance and commercial lending. Bajaj Financial Solutions Limited, a wholly owned subsidiary of Bajaj Fiserv Limited is engaged in wealth advisory business

HISTORY OF BAJAJ FINSERV LENDING

Bajaj finserv was formed in April 2007 as 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 Business and to strengthen the competencies.

The wind power project, the stakes in the life and general insurance companies and Consumer finance along with their respective 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 stock and also facilitate transparent benchmarking of the companies to their peer 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 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.

NAME DESIGNATION

Rahul Bajaj Chairman

Sanjiv Bajaj Managing Director

Rajiv Bajaj Director

S H Khan Director

Nanno Pammani Vice chairman

Madhur Bajaj Director

D J Balaji Rao Director

Naresh Chandra Director

Rajeev Jain Chief Executive Officer

Annant Damie Company Secretary

Vision of Bajaj finserv

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. Bajaj Finserv is a consumer focused company with emphasis on profitable growth and operational efficiency to deliver best results to all its stakeholders

Awards

Top 3 Financial Services Company

We're proud to be ranked amongst the Top 3 Financial Services Companies to work for in India. The ranking was conferred on us by Great Places To Work (GPTW), the gold standard in ranking the world’s best workplaces, at a special event hosted in Mumbai on 21 June, 2013. GPTW conducts this survey every year amongst more than 500 companies across India. This year more than 530 companies participated in the survey.

Aon Hewitt Best Employer 2.0 India

We are proud to be ranked amongst the Top 17 Best Employers in India, by Aon Hewitt, in association with the Times Group. Notably we are also the only Financial Services Company to feature in the list. This prestigious award was conferred to us at an awards ceremony in Delhi on the 15th of Jan 2014. Aon Hewitt is a highly respected authority on measuring and improving engagement to drive workforce performance. The company began the Best Employers research in Asia in 2001 to explore what makes a workplace of choice and thus identify a list of best employers in Asia and identify their innovative people practices. This year more than 120 companies participated in the survey.

Types of finances Bajaj Finance

The Bajaj finserv is the most diversified non-bank finance company in the country, the Bajaj finance largest financier of consumer durables in India and one of the most profitable firms in the category. Hereunder are summary details of our portfolio of businesses, with a brief description on each.

Consumer Finance

Consumer Durables Finance

Lifestyle Finance

EMI Card

Personal Loans Cross Sell

Co-branded Credit Cards

Two and three wheeler Finance

Salaried Personal Loans

SME FinanceMortgage

Business Loans

Commercial Lending

Construction Equipment Finance

Infrastructure Finance

Vendor Financing

Note: we focused on consumer durable finance

Need for study

In the urban areas 50% of people are taking the loan from Bajaj finance. and other finance Because there are parching the consumer Durable durable product in EMIs facility.

The customers are spending their money for consumer durable products like TVs, Smart phones

Daily around the city the people are spending amount is Rs:50,00,000 to purchase the consumer product

The customer was not pay the total amount at the time

This point is play the key role on Bajaj consumer durable loans. The Bajaj finance was observed the point they are providing good financial facility to the customers.

Scope for study

The Scope of the study is if we see the current position in finance market

The number of financial companies are entering in to the market. the competition

Was so high in the finance market. How the Bajaj will stand in the present market

To giving the new offers to the customers to stand in the market.

Objectives of the study

1) The loan process2) How many new and existing customers are taking

loan?3) What is an EMI card and advantage of EMI card4) Features and benefits of EMI card.5) difference between Bajaj finance and other finance 6) Who are the competitor for Bajaj finance

Consumer Durable Loanskiranmadamshetty@gmail.com Page 13

The customer was asked question to me

What is a Consumer Durable loan?The Consumer Durable loan is a loan for purchase of household items like Washing Machines, Refrigerators, AC's, Color TV's, LCD, Microwaves etc.

The Present in the top 79 cities of the country, the Bajaj finance the largest Consumer Durables Financier in India. They financed over 10% of all consumer electronics sold in the country in the last year. The Bajaj finance one out of every four LCD and Plasma televisions sold in the country. Last year, they acquired more than 1.45 million new customers, through our over 2,500 points of sale across the country.

The Bajaj existing customers can enjoy special benefits of their relationship with the EMI card. With EMI card, any of Bajaj existing customers can go and buy their next consumer durable from Bajaj partner outlets with the simple swipe of the EMI card. There is no need for any additional documents. they have recently introduced Extended Warranty on all purchases made through their Consumer Durables Finance. With Extended Warranty, you get an additional one-year warranty, over and above the manufacturer's warranty on your consumer durable.For more details on the EMI Card and Extended Warranty, click on the 'What We Do' button on the top of your screen and make a selection from the drop-down menu.

Benefits & Features of Consumer Durable Loans in Bajaj Fiserv Lending

In my point of you the Bajaj finance providing good features to the customers. The customers are fully satisfied with Bajaj features.

Features

o The Bajaj finance was offering loans on EMI for consumer durable goods no other finance can match this features & benefits the Bajaj Finserv Lending has to offer. From schemes to quick approvals to minimal documentation, they do everything to make it easy for you.

o Whether it’s an LCD TV or a split AC, Smart phones, laptops you can get loans for consumer durable loans ranging from Rs 7,500 to Rs 500,000.

o The customer can get approval for a loan in anywhere between 3 to 15 minutes.

Benefits

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 prepay 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.

The Bajaj finance providing 0% finance options only with Bajaj Finserv Lending. (select schemes are interest bearing)

The Bajaj finance also offer you special flexible repayment options

The loan process

How to participate?The loan process is simple in Bajaj finance the few steps are to participative by both customer and Executive.

First step :The Bajaj executive asks that the customer has any previous loans in the Bajaj finance or in else any financial companies or the customer is credit card user.

Second step: The response from the customer with respective to previous loans is gained by the executive.

Third step: The executive asks about the necessary documents require in the loan process.Then the executive explains about their schemes with respective to the products purchasing by the customer.

Required documents:

Fourth step: the loan process takes place by the preparation of delivery order by the Bajaj executive to the customer then the customer receives the product the loan process is finishes. The charges collected for the loan process

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

Note: The loan Eligibility

The following are the eligibility criteria to apply for a loan:

o If you are a salaried person your age should be between 23 years to 60 years.

o If you are Self Employed your age should be between 23 years to 65 years.

Amount Financed Slab Processing Fees

Up to 15000/- Rs.499/- to Rs.599/-*

Between Rs.15001/- & up to Rs.30,000/-* Rs.599/- to Rs.699/-

Rs.30,001/- & above Rs.699/- to Rs.799/-*

Other Charges Amount

Foreclosure Charges ** NIL

PDC Swapping Rs. 500

Bounce ChargesCheque Bounce - Rs. 350 per chequeLate payment penalty - Rs. 150

How many new and existing customers are taking loan?

No.of customers

ExistingNew

I observed in the Bajaj finance the existing are preferring for Bajaj finance because due To the good service.

The Bajaj offering flexible EMIs to customer so there are preferring to the Bajaj finance than other finance company in the market.

What is an EMI card and Advantages of EMI card

What is an EMI card? Advantages of EMI card

What is an EMI card?

Bajaj Fiserv Lending EMI card is a pre-loaded card with a pre-approved * Consumer Durable & Lifestyle Product Loan. We can use this card to buy our favorite consumer durable (or lifestyle products) at * by simply swiping your card at our partner retail outlet

Advantages of EMI card

The Bajaj finance providing good opportunity to customers buy offering EMI card to the customers their benefiting they Are getting very good services and it is very useful to use and it also avoid the ford cases.

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 thy 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.

Features and Benefits of EMI card

Features and Benefits

The Bajaj finance EMI card is the innovation to the bring new technology to consumer durable loansIt 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.

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.249 (to enjoy lifetime membership of EMI card).

Note: some customers are existing and new for Bajaj but they don’t have the EMI card because EMI limit not there. The EMI limit is there for new and existing they are Eligible for the EMI card

Difference between Bajaj finance and other finance

Bajaj finance:

It is very friendly to customers. It providing good financial services to the customers. And the Bajaj providing 0% interest to the customers. And the Bajaj finance providing EMI facility for existing

customers. Simple steps for taking the consumer durable loans Spot approval without any delay and verification Flexible EMIS are offered to the customers They are offering low down payment Bajaj finance is now available any shopping malls in the 62 cities

with best performance. In Bajaj finance we require CIBIL score minimum 750 by this we

can come to know that he is regular customer.

In any other financekiranmadamshetty@gmail.com Page 31

In any other finance we can apply for the loan with CIBIL score less than 750 by this they may face the fraud customers.

They also go for the verification process and approval may be delayed.

Approval process is very long.

They will take the processing fee from the customer.

The approval time is may be too high

FINANCE ANALYSIS OF BAJAJ FINSERV

Financial year 2013 compare to financial 2012

Consumer finance

S M E FINANCE Commercial lending

Total0

10,000

15,000

20,000

25,000

FY 2013FY 2012%change

The consumer finance was in FY 2013 PROFITABLE compare to FY 2012.

Bajaj financial performance for FY 2013 and

the previous year

(In crores)

In crores

Deployment FY2013 FY2012 %change

Consumer finance 9,783 7,040 39%

SME finance 6,573 4,411 49%

Commercial lending 3,011 4,346 (31%)Total 19,367 15,797 23%

FY 2013 FY 2012 %CHANGETotal income 3,111 2,172 43%Interest and finance charges 1,205 746 62%Net interest income 1,906 1,426 34%Salary cost 245 190 29%Marketing and other commissions 83 97 14%Dealer incentives 100 64 56%Recovery costs 120 89 35%Loan loss and provision 182 154 18%Depreciation 15 12 25%Other expanse 289 218 33%Profit before Tax 872 602 45%Profit after Tax 591 406 46%Earnings per share(basic) 135.69 107.72 26%Earnings per share(diluted) 134.74 107.20 26%Book value per share 676.41 492.16 37%

Profit after Tax0

FY 2013FY 2012

Bajaj finance store finance sale Report

ASR nag

Attapur

Banjar

ahills

Inorbit m

Kachigu

Vikram

kompally

Malakp

Column4

Column2

Column4Column1Column2

Finance slae report

DateStore Name

Total cash sale Tickets

finance sale

Logins(Finance)

Billings(finance)

Percentage

20/05/14 ASR nagar 17.58 118 7.89 23 22 45%20/05/14 Amsri 6 5 1.5 7 6 25%20/05/14 Attapur 3 39 1.35 5 5 45%20/05/14 Banjarahills 10.19 47 4.79 12 9 47%20/05/14 Inorbit mall 11 89 1.69 7 5 15%20/05/14 Kachiguda 3.8 55 1.5 4 3 39%20/05/14 Vikrampuri 2.11 22 1.07 3 2 51%20/05/14 kompally 6 52 2 8 10 33%20/05/14 Kukatpally 10.13 83 2.7 7 6 27%20/05/14 Malakpet 6.8 55 2.1 7 6 31%20/05/14 Shivam 11.15 86 3.1 11 9 28% TOTAL 87.76 702 29.69 94 83 34%

1) Who are competitors of Bajaj Finance?

A) Reliance b) Tata capital C) Bajaj finance d) capital first

Realiance captialTata captial

Bajaj financecapital first

Series1

Series2

Series3

Series1Series2Series3

I observed that so many customer says Reliance capital is Bajaj competitor

Customer opinion about the Bajaj finance

A) Good b) average c) bad d) below average

good average below average bad0

opinion about the Ba-jaj financeSeries2

I observed the customer was fully satisfied with the Bajaj finance. When customer was taking loan from the Bajaj he was feeling was very good.Because the Bajaj providing good service to the customers that’s why the customer was given good marks to the Bajaj finance.

Customers are satisfied with Bajaj schemes

A) Yes B)No

Column2

The customers are fully satisfied with the Bajaj schemes

Limitations

The Bajaj finance will not give the Finance to city outside customers. And another problem is CIBIL score. To take the loan from the Bajaj finance the CIBIL

score must be 750 above not below. Comparing to other finance their CIBIL score was 650 above. I observed so many customers Their CIBIL score was 735, and some customers 745 but there are not eligible for the loan due to the CIBIL score.

Sometime online EMIs transactions are getting problems for the customers.BecauseSome technical problems EMI transactions will not happen. This problem effect for customers. Like cheque Bounces, I observed so many cases are happening on Bajaj finance.

SUGGESTIONS

My suggestion is please decrease the CIBIL score 750 to 700. Give the loan to the city outside customers Please do the Marketing. Provide more schemes for customers

CONCLUSION

The study concludes that the Bajaj finance the strongest finance for the consumer durable products. and the Bajaj was providing very good schemes for the customers .the customers are very happy with the Bajaj EMI card. Bajaj was giving the good service to the customers Bajaj was very close with the customers. I learned lot of things in this project. Thanks you for giving this project to me.

BIBLIOGRAPHY

BibliographyWWW.BAJAJFINSERVLENDING.IN

WWW.WIKIPEDIA.COM

ANNUAL REPORT 2012-2013

WWW.CONSUMERDURABLESECTORREPORT.COM

project on consumer durable loans in bajaj finance

Business

investor - hdfcbank.com · 2-wheeler /consumer durable...

bajaj capital423 · 2013-10-18 · bajaj capital. 423. a...

· 2017-07-27 · rahul bajaj chairman nanoo pamnani...

since 1945 - bajaj...bajaj auto limited akurdi pune 411 035...

bajaj auto limited is an indian motorised vehicle- bajaj...

board of directors - bajaj allianz general insurance ·...

bajaj · pdf file4th floor, bajaj finserv corporate office,...

bajaj holdings & investment limited€¦ · bajaj holdings...

apply for loans, emi finance, credit card and insurance...

rahul bajaj, chairman; sanjiv bajaj, managing … · bajaj...

board of directors - bajaj · pdf fileboard of directors...

rahul bajaj, chairman; sanjiv bajaj, managing director ·...

\\p6\c\bajaj alliance\bajaj alliance\annual...

bajaj corp. ltd. -...

board of directors - bajaj auto · pdf fileboard of...

bajaj allianz life insurance company ltd. i irda .... niraj...

kushagra bajaj vice chairman of bajaj corp ltd

bajaj auto limited is an indian motorised vehicle- bajaj...

havells india limited€¢ product mix to further gravitate...

bajaj...bajaj bajaj holdings & investment limited (formerly...