CHAPTER – I

INTRODUCTION

1
1.1: 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 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.

1.2 : 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.”

1.3 : 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.”

2
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 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.

1.4: Consumer Durable Finance:

“Consumer durable finance means to provide the finance on the consumer durable product like,
washing machinist, 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 15/4 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 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.

3
1.5: EMI Card:

 Bajaj Finserv Lending launched an innovative product 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.

1.6: Advantages of Project:

 Schemes related to the consumer durable finance is always welcome by the customers.
 Tracking methodology of customer is very smoothly (by using EMI card).
 Provision of easy, simple and adequate credit.

1.7: Meaning of Banking:

Transacting business with a bank; depositing or withdrawing funds or requesting a loan etc. or
engaging in the business of banking; maintaining savings and checking accounts and issuing
loans and credit etc

1.7.1: Definition of Bank:

“An establishment for custody of money, which it pays out on customer's order."

1.8: Meaning of NBFC:

NBFC means Non-banking financial company. A non-banking financial company (NBFC) is a
company registered under the Companies Act, 1956 of India and is engaged in the business of
loans and advances, acquisition of shares/stock/bonds/debentures/securities issued by
government or local authority or other securities of like marketable nature, leasing, hire-
purchase, insurance business, chit business, but does not include any institution whose principal
business is that of agriculture activity, industrial activity, sale/purchase/construction of
immovable property.

4
  Classification:
1. Developing finance institutions
2. Leasing companies
3. Investment companies
4. House finance companies
5. Venture capital management

1.8.1: Definition of NBFCs:

Non-banking financial companies, or NBFCs, are financial institutions that provide banking
services, but do not hold a banking license. These institutions are not allowed to take deposits
from the public. Nonetheless, all operations of these institutions are still covered under banking

Table No.1.1: Difference between NBFC and Commercial Bank:

Sr no. NBFC Commercial Bank
1 It is no facility to issue cheque against The cheque can be issued against bank
bank deposits. deposits.
2 Higher Rate of interest on loan Lesser rate of interest on loan

3 It is specialized in one type of assets It hold variety of assets in form of loan, cash
etc

1.10: Leasing Companies:

Financial leasing companies engage in financing the purchase of tangible assets. The leasing
company is the legal owner of the goods, but ownership is effectively conveyed to the lessee,
who incurs all benefits, costs, and risks associated with ownership of the assets. In leasing
finance, the borrower of the capital equipment is allowed to use it, as a hire, against the payment
of a monthly rent. The borrower need not purchase the capital equipment but he buys right to use
it.

5
 CHAPTER – II

PROFILE OF THE ORGANISATION

6
2.1: Historical Background of the Organization:
Bajaj Finserv was formed in April 2007 which is situated in 4TH Floor, Bajaj Finserv Corporate
Office, Hyderabad-Ahemednager Road Viman Nagar, Hyderabad 414017, 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. 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 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.

2.1.1: Area of operation:

 Consumer Durable Finance
 Two and Three Wheeler Finance
 Lifestyle product finance
 Vendor finance
 Construction Equipment Finance

7
2.1.2: 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.

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.

2.1.3: Objective of the Organization:

Our main objects as contained in our Memorandum of Association include:
1. To Finance industrial by way advance ,deposit or lend money, securities and propertied
or with any Company, Body corporate, trust, firm, person or association whether falling
under the same management or otherwise, with or without security and on such terms as
may be determined from time to time, and to carry on and undertake the business of
finance and investment and to provide venture capital, seed capital, loan capital and to
participate in equity preference share capital or to give guarantees on behalf of the
company in the matter and to promote companies engaged in industrial and trading
business and to act as Financial Consultants, Management Consultants, Brokers, Dealers,
Agents and to carry on the business of share broking, money broking ,exchange broking,
bill broking and general brokers for shares ,debentures, debenture-stock, bonds, units,
obligations, securities ,commodities, bullion currencies and to manage the funds of any
person, firm, body corporate or trust by investment in various avenues like Growth Fund,
income fund, risk fund, tax exempt funds, pension /superannuation funds and to pass on
the benefits of portfolio investments to the investor as dividends, bonus, interest, etc.
2. To carry on the business as an investment company and to underwrite, sub-underwrite, to
investigating , and acquire by gift or otherwise and hold, sell, buy or otherwise deal in
shares debentures, debentures-stocks, bond, units, obligations and securities issued or

8
 guaranteed by Indian or Foreign Governments, States, Dominions, Sovereigns,
Municipalities.

DEPARTMENTS

Administration Collections Marketing Product

Credit Team Human Resources Operations Sales

Figure No. 2.1: Different Departments

2.1.4: Organization Hierarchy:

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

9
to different entities. Ordinary description of such entities is as branch site, department, work
group and single group of people.

Rahul Bajaj
[Chairman]

[CHAIRMAN]
Nanoo Pamnani
RAHUL BAJAJ
[Vice-Chairman]
[CHAIRMAN]

[CHAIRMAN]
Rajeev Jain
RAHUL
[Ceo]BAJAJ

[CHAIRMAN]

[CHAIRMAN]
Rakesh Bhatt
[Coo]BAJAJ
RAHUL

[CHAIRMAN]

[CHAIRMAN]
Devang Mody
[PresidentRAHUL
Consumer
BAJAJBusiness]

[CHAIRMAN]

[CHAIRMAN]
Deepak Reddy
RAHUL
[Chief BAJAJResources]
Human

[CHAIRMAN]

[CHAIRMAN]
Manev Mianwal
[Group
RAHUL BAJAJ
Marketing Head]

[CHAIRMAN]

[CHAIRMAN]

RAHUL BAJAJ
10
[CHAIRMAN]
 Pankaj Thadan
[Chief Compliance Officer]

[CHAIRMAN]
Amit Gainda
Business
RAHULHead
BAJAJ- Mortgages

[CHAIRMAN]

[CHAIRMAN]
Rajesh K
[Chief
RAHUL Risk
BAJAJOfficer]

[CHAIRMAN]

[CHAIRMAN]
Ashish Panchal
[Business Head - Credit
RAHUL BAJAJ Cards & Loan]

[CHAIRMAN]

[CHAIRMAN]
Diwakar Pundir
RAHUL BAJAJ
[Chief Credit Officer]

[CHAIRMAN]

[CHAIRMAN]
Ashish Sapra
[Business
RAHULHead
BAJAJ- Cross Sell]

[CHAIRMAN]

[CHAIRMAN]
Amit Raghuvanshi
[Business Head
RAHUL - Sales Finance]
BAJAJ

[CHAIRMAN]

[CHAIRMAN]
Atul Jain
[Chief Collections
RAHUL BAJAJ Officer]

[CHAIRMAN]

[CHAIRMAN]

RAHUL BAJAJ 11

[CHAIRMAN]
 Samir Mehta
[Business Head Commercial
Lending]

B. Sreenivas
[CHAIRMAN]
[Business Head - Insurance
RAHULServices]
BAJAJ

[CHAIRMAN]

Vivek r. Likhite
[CHAIRMAN]
[group corporate audit head]
RAHUL BAJAJ

[CHAIRMAN]
[CHAIRMAN]
M M Muralidharan
[Treasurer]
RAHUL BAJAJ

[CHAIRMAN]

[CHAIRMAN]
Deepak Bagati
[Business Head
RAHUL - Business Loans]
BAJAJ

[CHAIRMAN]

[chairman]
Samir Satyam
[BH -Rahul
Loanbajaj
Against Securities]

[chairman]

[CHAIRMAN]
Sanjeevvij
RAHUL BAJAJEquipment]
[BH - Construction

[CHAIRMAN]

[CHAIRMAN]
Figure No.2.2: Organizional Hierarchy
RAHUL BAJAJ

[CHAIRMAN]

12
Table No.2.1: Organization Chart of Bajaj Finserv:

Name Designation

Rahul Bajaj Chairman

Nanoo Pamnani Vice-chairman

Madhur Bajaj Major director

Rajiv Bajaj Director

Sanjiv Bajaj Non executive director

D.S.Mehta Major director

D.J.Balajirao Director

Dipak Poddar Director

Ranjan Sanghi Director

Rajendra Lakhotia Director

Omkar Goswami Director

2.1.5: Product Profile of the Organization:

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

13
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.

Home Loan

Construction Consumer
Equipment Loan Durable Loan

Product

Portfolio

Three/Two
Wheeler Loan
Mortgage Loan

Personal and Small

Business Loan

Figure No.2.3: Product Profile of the Organization

14
  Products Covered:
0% interest Consumer Durables Finance is available on a wide range of products and in over 101
cities across India. Hereunder is an indicative list of 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

2.2: Total Use of Sales Force Software:

"Sales force CRM is nothing short of a revolution for our sales fiancé business!”
Rise in transactions from 1500 per day during holiday season to a record 8500 in a single day,
processing one transaction every 4 sacs during peak hour with sales force CRM.
 Challenge
 Needed solution with unlimited scalability for end to end new loan underwriting and to
cross sell multiple products on existing customer database
 Specifically sought ‘best in the business’ to minimize time and resource investment in IT
and allow focus to remain on serving customers
 Wanted high degree of flexibility to accommodate dynamic changes in market place

15
  Solution
 Salesforce.com implementation partner Wipro implemented Sales Force CRM for 300
users in April’09
 Deployed across Call Centre, Sales, Credit and Operations teams
 Implementation cycle, from concept to solution build, of just 3 months
 Integration with Dialer, Dedupe system, Credit Bureau, SMS, and more recently Google
Maps (to access customer locations from within salesforce.com)

2.3: Current Picture Of The Company:

Bajaj Finance reports AUM of RS.19229 crores and highest ever quatarly profit after tax of
RS,176 crores-A growth of 27% over corresponding quarter of previous year.
The Board of Director of Bajaj Finance Limited in their meeting held today took on record the
unaudited Financial Result of the company for 1st quarter ended 30 June 2016.

Table No.2.2: Performance Highlights:

Sr.No. Particular Financial Financial Performance

Year 2016 Year 2017 Increasesed
1 Total Income (Cr.) 703 932 33%
2 Profit After Tax (Cr.) 169 176 27%
3 Customer Acquired (No.) 7,52,231 9,69,447 29%
4 Deployments (Cr.) 6250 8250 32%
5 Loan losses and provisions (Cr.) 41 60 46%

 Launch of Digital Product Financing:

The company added digital product financing as an extension to its consumer electronics
financing business.
 Launch of Rural Lending:
The company launched its rural financing business in 7 branches and 30 spokes across
Maharashtra.The full product suite consisting of consumer electronics financing,gold loans and
refinancing loans have been launched in these markets.

16
  Among the top 3 BFSI companies to work for in India:
The company has been ranked as the 3rd Best Financial Service Company to Work For in India
by ‘Great Place to Work Institute’-Amongst the most prestigious employer award in India.

2.4: Future Plan of the Organization:

 Application for Banking License:
Bajaj Finserv Limited, the holding company of Bajaj Finance Limited, has submitted its
application to Reserve Bank of India on June 26, 2016 for a license to commence banking
business in terms of section 22 of the Banking Companies Act, 1949.It is proposed to do this by
converting its subsidiary Bajaj Finance Ltd.into a Bank in terms of RBI Guidelines for Licensing
of New Bank in the Private Sector dated February 22, 2016.

2.5: Other Relavant Information About The Organization:

SWOT Analysis Of The Organization:

Strenths:

Proper setup for Widespread distribution High performance

customer handling with network across categories
less work disruption

Good team back up Great financial support More schemes than

support network competitors

Figure No.2.4:Strenths of the Organization

17
 Weakness :

Uneven schemes to One sales executive fails

customer Weakness to entertain the customer

More strict policy than

competitors

Figure No.2.5: Weakness of the Organization

Opportunities :

Untapped market The growing and improved

above other lending schemes in the market
companies

Opportunities

Proposing to launch more

Growing demand for 0%
other financial schemes
financial schemes especially
more product introduction
in emerging market

Figure No.2.6: Opportunitiesof the Organization

18
Threats :

The competitions Margins getting squeezed

catches-up any new Threats from both the directions
innovation in no time (price as well as cost)

Threat of other financial

lenders like future finance etc
offering the same benefits

Figure No.2.7: Threats of the Organization

2.6: 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, 2016. GPTW
conducts this survey every year amongst more than 500 companies across India. This year more
than 530 companies participated in the survey.

 CIO 100:
Recently, we also won the CIO 100 Innovation award for two of our innovations - EMI Card and
Flexi saver.CIO 100 is an annual award program that recognizes organizations that exemplify the
highest level of operational and strategic excellence in information technology
(IT). CIO magazine has a long and proud tradition of honoring leading companies for business
and technology leadership and innovations through its premiere award program – CIO100. Now
in its 25th year in the USA, it is an acknowledged mark of enterprise IT excellence.

19
 CHAPTER- III

RESEARCH DESIGN AND METHODOLOGY

20
3.1: Introduction:
Research is common parlance refers to a search for knowledge. One cans also define research
“As scientific and systematic search pertinent information on a specify topic”. In fact research is
an art of scientific investigation. Another meaning of research as “A careful investigation or
inquiry especially through for new facts in any branch of knowledge.”The system of collecting
and processing of data for research project is known as research methodology. Some important
factors in research methodology include validity of research data, ethics, reliability of measures
and logical sequence.
“Research is an organized systematic data based scientific inquiry or investigation into a specific
problem under taken with the purpose of finding answer or solution to it”
Research is basically a human activity engaged in intellectual pursuit of discovering something
new. It could be a product, a method, a service, a system etc. It could also be in abstract forms
like idea, thinking process, strategy etc.

3.2: Meaning of Research:

 Research is discovery of facts, development of facts and verification of facts.
 Research is an endeavor to discover intellectual and practical solutions to the problems
through the applications of scientific methods to the knowledge universe.
 Research is the last resort when individuals, organizations and societies face some
problems for which there are no answers or when there is inconsistence among answers.
 Research is carried out to settle controversies, contradictions, misunderstandings and
disputes about the nature of some aspects of the universe.
 Research is the systematic approach concerning generalization and formulation of a
theory.

3.3: Definitions:
Advanced Learner’s Dictionary of Current English (OXFORD):
“Research defined as a careful investigation or inquiry specially though search for new facts in
any branch of knowledge.”

21
Clifford Woody:

“Research is defined as the process which includes defining and redefining problems,
formulating hypothesis or suggested solutions, collecting, organizing and evaluating data,
reaching conclusions and at last careful testing the conclusions to determine whether they fit for
the formulating hypothesis”

Kerlinger:

“Research is systematic, controlled, commercial and critical investigation of hypothetical

propositions about the presumed relations among natural phenomenon”

P. V. Young:

“Research may be defined as a method of studying , analyzing and conceptualizing social life in
order to extent modify, correct or verify knowledge whether that knowledge aids is construction
of theory or in practice of an arts.”

Black and Champion:

“Scientific research concerns itself with obtaining information through empirical observation that
can be used to systematically develop logically relate propositions so as to attempt to establish
casual relationships among variables”

3.4: Characteristics of Research:

1. Predictions of future occurrences.

2. Directions towards to solution.

3. Accuracy in observation and description.

4. Basis of research is experience.

5. Gathering of new data.

6. Research is scientific programme.

7. Generalizations of principles of theories.

8. Quest for answer.

9. Patient activity.

10. Social relevance.

11. Objective and logical

22
 12. Careful designed procedure.

13. Needs expertise.

14. Task to discover, develop and verify knowledge

15. Careful critical inquiry.

3.5: Types of Research:

1. Pure or Basic or Fundamental Research.

2. Applied Research.

3. Formulative or Exploratory Research.

4. Descriptive Research or Diagnostic Research.

5. Historical Research.

6. Quantitative or Qualitative Research.

7. Conceptual Research.

8. Empirical or Experimental Research.

Other types of Research:

1. One Time Research or Longitudinal Research.

2. Field setting Research or Laboratory Research or situational research.

3. Conclusion oriented or decision oriented Research.

3.6: Research Design:

Research design is a plan of action, a plan for collecting and analyzing data in an economic,
efficient and relevant manner.

Types of Research Design

1. Exploratory Research Design.

2. Descriptive Research Design.

3. Experimental Research Design

23
  Exploratory Research:
Exploratory research is conducted to provide a better understanding of a situation. It isn’t
designed to come up with final answers or decisions. Through exploratory research,
researchers hope to produce hypotheses about what is going on in a situation.

 Descriptive Research :
Descriptive research can be used to accomplish a wide variety of research objectives.
However, descriptive data become useful for solving problems only when the process is
guided by one or more specific research problems, much thought and effort, and quite
often exploratory research to clarify the problem and develop hypotheses.

 Experimental Research:
The experiment is a situation in which a researcher attempts to objectively observe
phenomena which are made to occur in a strictly controlled situation where one or more
variables are varied and the others are held constant.

3.7: Sources of Data:

The study is exploratory in nature, makes use of mainly secondary data. The data been collected
from
 The annual reports of the company
 Books
 Articles
 Magazines
 Company website
 Research papers
 MBA projects
 Internet

24
3.8: Objective of Project:
1. To study the different financial schemes of Bajaj Finserv.
2. To study the loan procedure for durable product at Bajaj Finserv with the help of case
studies
3. To study the surrogate of the Bajaj Finserv.

3.9: Scope of the Project:

This project is limited to Bajaj Finserv Lending of Hyderabad. And the researcher analyses only
consumer finance.

3.10: Research Methodology:

The study is exploratory in nature, makes use of mainly secondary data. The data has been
collected from the annual reports of the company, Books, Articles, Magazines, Company
website, Research papers, MBA projects, Internet etc.

3.10.1: Time Frame:

Due to restricted period of time i.e.3 month, I have collected 5 case studies in which 4 are
success and 1 is rejected.

3.10.2: Analysis of Data:

The researcher analyses the data with the help of Case Studies, Percentage, Tables, and Graphs.

3.14: Limitation of the project:

1. The study is restricted to the consumer durable loan only.
2. Sometimes customer gets dissatisfied due to the restricted policies of EMI procedure.

3.15: Key concepts:

 Lending:
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.

25
  Bajaj Dedupe:
Bajaj Dedupe means there is problem occurred in the previous Bajaj loan.
 Scheme Chart:
Various types of schemes are given below:

Table No.3.1: Scheme Chart for loan approval :

Schemes Description

15/4 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 15 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.

26
 CHAPTER- IV

ANALYSIS AND INTERPRETATION DATA

27
Table: 4.1: Gross Loan Deployment of Bajaj Finserv:

(In crores)

Deployment FY FY FY FY
2009-10 2010-14 2014-15 2015-16
Consumer Finance
Consumer durable 1037 2262 3576 4971
Two and Three wheelers 1664 2034 2671 3716
Total-1 2401 4296 6247 8684
SME Finance
Mortgage 1067 1672 2985 4447
Small Business Loans 803 803 899 1035
Other assets 165 389 527 785
Total-2 1870 2864 4414 6267
Commercial Lending
Vendor Financing 179 1646 2480 3249
Construction Equipment - 694 891 1467
Total-3 179 2040 3371 4416
Grand Total (1+2+3) 4420 9200 17029 19367

28
 Gross Loan Deployment

5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
FY 2009-10 FY 2010-11 FY 2011-12 FY 2012-13

Consumer Finance SME Finance Commercial Lending

Figure No.4.1. Gross Loan Deployment of Bajaj Finserv

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.

4.1 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-140021
Residential Address Gulmohar Park, ITI Road
near ICICI Bank, Aundh
Hyderabad -414007
Occupation Service

29
Company Name SunGard, Hyderabad
Salary 80,000/-PM
Purchase of Products

I. Samsung LED TV
II. Samsung Washing Machine

Cost of Products

I. Rs.40,000
II. Rs.35,000

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

Name of the Applicant - Mr.Ranjeet Kumar

Table No.4.2 Case Study 1

Particular Eligibility criteria for loan Applicable for Loan

approval
Occupation Service 
Company Name SunGard 
Salary Rs.9,60,000 PA 

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House Rented 
Place(Stay) Aundh 
Document Required
Address Proof Bank Statement 
ID Proof PAN Card ,Voting Card 
Credit Card SBI Credit Card (Platinum) 

Products
Samsung 40’ LED TV Rs.40,000 
Samsung Washing Rs.35,000 
Machine

Solution:-

a. Calculation of EMI and Down payment:

Scheme-:15/4 (Ref.Table No.3.1)
Cost of Product-: Rs.75, 000
Down payment -:Rs.25, 000 (Rs.75, 000/15*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.
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.

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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
Hyderabad -414048
Occupation Service
Company Name Infosys, Hyderabad
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.
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.

Name of the applicant - Ms.Smita Badiyani

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 Table No.4.3: Case Study 2
Particular Eligibility criteria for loan Applicable for Loan
approval
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 

Solution:
a. Calculation of EMI and Down payment:
Scheme-:15/4(Ref.Table No.3.1)
Cost of product-:Rs.36, 000
Down payment-: Rs.15, 000 (Rs.36, 000/15*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.

33
 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
Hyderabad -414007
Occupation Service
Company Name Mahindra and Mahindra
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

34
 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.4.4: Case Study 3

Particular Eligibility criteria for loan Applicable for Loan

approval
Occupation Service 
Company Name Mahindra and Mahindra 
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

35
 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.
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 approved.

Case No.4

Name of the Applicant Mr.Akshay Kadam

Age 27 year
Residential Address Swapnagari society, ajmera
Near H.A.Ground Pimpri,
Hyderabad -414018
Occupation Service
Company Name Alfa Laval
Salary 30,000/-PM
Purchase of Products
I. Sony LED TV
II. Samsung Washing Machine

Cost of Products

I. Rs.42,000
II. Rs.30,000

36
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

Name of Mr.Akshay kadam on the credit card and Pan Card is mismatch i.e.Akshay
Kadam on credit card and AAkaash KKadam on PAN Card.

Name of the applicant:-Mr.Akshay Kadam

Table No.4.5: Case Study 4

Particular Eligibility criteria for loan Applicable for Loan

approval
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 
Credit Card ICICI Bank 
Product
Sony LED Rs.42,000 
Samsung washing Machine Rs.30,000 

37
 Solution:-
a) Calculation of EMI and Down payment:

Particular Sony Samsung

Scheme 18/4 15/4
Cost of product Rs.42,000 Rs.30,000
Down Payment Rs.9,336 (Rs.42,000/18*4) Rs.10,000(Rs.30,000/15*4)
EMI Rs.2,334*17 Month=Rs.32,676 Rs.2,500*8 Month=Rs.20,000

b) 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 Hyderabad-414004
Occupation Own Business
Company Name Omkar Trading
Purchase of Products

I. Sony LED TV
II. Sony Home Theater

Cost of Products

I. Rs.52,000
II. Rs.35,000

38
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: PROCESS ADOPTED:

Documentation:
1. Residential proof

2. ID Proof

3. Cancelled Cheque

4. Credit Card

5. Salary Slip Latest (For Govt. Employee and salaried)

6. Last 3 months Bank Statement (Salaried)

7. Phone Bill, latest, original and delivered by courier (Instant)

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.

39
 Customer should be fill up the application form,then the details of customer get stored by
the executives in to the sales force softwear.
 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 , Hyderabad 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.

40
41
 Figure No. 4.2 Flow chart of the application process for loan approval

4.2.2: Surrogates Required for Loan Approval:

There are three types policy are as below:

A.WOW Policy

B.WOW Lite Policy

C.WOW Extension Policy

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A.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 155000)

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 155000)

2.7 Salaried (Max LTV 90% up to 155000)

2.14 Instant

B.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)

3.5 Existing Customer (Max LTV 83%)

3.6 CIBIL Score (Max LTV 83%)

3.7 Salaried (Max LTV 90% Min net salary 7500)

43
Figure No. 4.3 Surrogates Required for Loan Approval

44
CHAPTER-V

FINDINGS

45
 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 Bajaj Finserv Lending.
 Bajaj Finserv Lending provided loan on consumer durable product to the customer as per
the surrogates.
 Flexible EMI scheme in many products are available. Bajaj Finserv Lending provides
many schemes such as 15/4, 10/2, 18/6, 24/6 etc. Customer can choose any EMI Scheme
option according to their paying capability.
 As per the requirement of finance company for address proof would be required current
place proof, and for ID proof required the valid name of person it shows with the help of
case studies.

46
 Suggestions:
 There is no awareness about 0% finance scheme to customers. So, Therefore, Bajaj
Finserv should make its customers aware about the 0% finance schemes.
 Customers think that Bajaj Finserv will take some hidden charges from them, if they take
durable loan at 0% from Bajaj Finserv. So the Bajaj Finserv removes the wrong thinking
of customer and to explain in detail loan procedure.
 Bajaj Finserv initially have the system of swiping of EMI card but due to some difficulty
they stopped it, I think Bajaj should work upon this as this can save more time for
customer as well as for Sale Executive and he can serve more non-EMI card user and
convert them into EMI card holder.

47
Conclusion:
There are many organizations in the world which are providing consumer credit services which
are helpful for the financial stability. Financial stability is very important not only for the
businesses but also for the consumers. The businesses as well as the consumers need the stability
regarding the financial matters because without the stability no one could be very innovative in
the longer run.

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Performa of Bibliography:

 Book:
 Kulkarni M.V., (2010), Research methodology, Everest publishing house.
 Srivastava T.N., (2014), Business research methodology, Tata McGraw - Hill Education
private limited.

 Online References:
 WWW.Bajajfinservlending.in
 WWW.Slideshare.com
 WWW.Salesforce.com

 News Paper:
 Economic Times
 Times of India

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ANNEXURE:
 Process of Granting Loan:
1. Documentation- Documentation like Credit card, driving license, PAN card, etc. is required to
provide loan to the customers.

2.. Various requirements- As mentioned in surrogates various slabs are there according to which
customers are provided loan.

Application Form for EMI Card

50
Loan Term Sheet

51
Application Form for Consumer Finance

52
Electronic Clearing Form (ECS)

53