INTERNATIONAL SCHOOL OF BUSINESS AND MEDIAPOST GRADUATE DIPLOMA IN MANAGEMENT (PGDM)

SUMMER INTERNSHIP - REPORT

2012

ANIRUDDH KESWANI

ROLL NO. 12309

INTERNATIONAL SCHOOL OF BUSINESS & MEDIA, PUNE

POST GRADUATE DIPLOMA IN MANAGEMENT

(PGDM)

SUMMER INTERNSHIP

REPORT

FINANCE PENETRATION AT CPR DISTRIBUTORS.

FOR

Submitted by: Aniruddh Keswani

ROLL NO. 12309

DECLARATION

I hereby declare that the Project Report “FINANCE PENETRATION AT CPR DISTRIBUTORS” for BAJAJ FINSERV LENDING Submitted for the PGDM at International School of Business and Media, Pune - Nande is my original work and the dissertation has not formed the basis for the award of any degree, associate ship, fellowship or any other similar titles.

Place: Pune

Date:

(Aniruddh Keswani)

CERTIFICATE

This is to certify that Mr. Aniruddh Keswani a student of BBA in Prestige Institute Of Management

and Research, Indore Under Graduate Programme has received Summer Training in our

organization from 01/06/10 to 19/07/10 for a period of 07 weeks.

It is further certified that Summer Training period, the candidate attended the factory/office

regularly and punctually and he has received training in following departments/sections of our

organization:

1. Marketing and Sales.

During training period he/she was absent on following working days –

29/06/10 (1 Day).

During training period his behavior and conduct were good.

Place: Bhopa

Dated: 19/07/10 Mr.Sourabh Jain

Account Manager

Bhopal-M.P.

ACKNOWLEDGEMENT

“Acknowledgement is an art, one can write glib stanzas without meaning a word, on the other hand one

can make a simple expression of gratitude.”

Summer Inrernship is an integral part of any Business Administration program and for that purposes I had joined a company what else can be as good as Bajaj Finserv Lending, India's premier finance company.

I take the opportunity to express my gratitude to all of them who in some or other way helped me to accomplish this challenging project in Bajaj Finserv

Lending, No amount of written expression is sufficient to show my deepest sense of gratitude to them.

I am very thankful to Mr. Devendra (Regional Sales Manager), Mr. Ajay Sharma (Area Sales Manager), Mr. Pranab Roy (Manager) Bhopal and very grateful to all my faculties at ISB&M Pune Nande for their everlasting support and guidance on the ground of which I have acquired a new field of knowledge. The course structure created for this curriculum has benefited with the inclusion of recent development in the organizational and managerial aspects.

Lastly, I am thankful to all the member of Bajaj Finserv Lending, Bhopal, which has given me valuable information in the part of my project.

ANIRUDDH KESWANI

ROLL NO. 12309

TABLE OF CONTENTS

Title Pg. No.

EXECUTIVE SUMMARY

BAJAJ GROUP STRUCTURE

KEY BUSINESS LINES

WHAT DIFFERENTIATES BAJAJ FINANCE

BUSINESS MODEL AND DISTRIBUTION RESEARCH

TECHNOLOGY AND RISK MANAGEMENT

MANAGEMENT STRUCTURE

PRODUCT LINE STRATEGY

FINANCIAL PERFORMANCE AND STATEMENT

BAJAJ FINANCE HISTORY

INTRODUCTION TO BAJAJ FINSERV LENDING

CONSUMER DURABLE LOANS

IT PRODUCT LOANS

INSURANCE SERVICES

PRODUCT CATEGORIES AND DEALINGS

ACHIEVEMENTS AND MILESTONES

TOTAL SALE TO FINANCE CASES AT CPR DISTRIBUTORS – KOH E FIZA

FINDINGS AND LIMITATIONS

SWOT ANALYSIS

SUGGESTIONS & RECOMMENDATIONS

CONCLUSION

BIBLIOGRAPHY

Executive Summary

• Promoted by the Bajaj Auto group in 1987

• Demonstrated consistent profitability track record in lending space for the last 24 years.

• AUM of ` 75.71 billion, with a history of disbursing over 6.00 million loans, as of FY11.Disbursed 1.57 million loans in FY11

• A diversified lending business with 9 product lines focusing on consumer finance & SMEbusiness

• Strong distribution reach with more than 225 points of presence and more than 4,000 distribution partners and dealers across India

• Strategy is to focus on mass affluent customers in consumer businesses and affluent and HNIcustomers in small businesses, through a judicious mix of:

– Lower risk and lower returns products, for building scale and stability

– Moderate risk and higher return products, for profit maximization

• Stable and deep management structure with top 100 management team members having experience from leading Multi National Companies and Transnational companies.

Bajaj Group structure

Bajaj Holdings and Investment Limited

31.49% 38.69%

Bajaj AutoLimited

Bajaj FinservLimited

Auto Business Arm Financial Services Arm

74% 74% 100% 55.98%

Bajaj Allianz Life Insurance

Company Limited

Bajaj Allianz General Insurance Company Limited

Bajaj FinancialSolutions Limited

Bajaj FinanceLimited

Protection and RetiralsWealth Management

& AdvisoryLending

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finan

ceKey Business LinesProduct

Indicative Terms, as of June 2011

Key Features Target Customer Base

• 12% of the portfolio as of FY11

Consumer durable financing• Maturity : 8 – 12 months• Repayment : EMI

• One of the few organized players with cutting edge technology architecture & robust risk management framework.

• Mass Affluent and• Affluent

Personal Loans Cross sell• Maturity : 12-36 months• Repayment : EMI

• 6% of the portfolio as of FY11• Loans to existing customer with very

good credit performance track record.

• Mass Affluent and• Affluent

2 Wheeler & 3 WheelerFinance

• Maturity : 12 – 24 months• Repayment : EMI

• 26% of the portfolio as of FY11• Captive financing.• Financing only Bajaj auto vehicles.

• Mass customers

Mortgage• Maturity :60 – 180 months• Repayment : EMI

• 30% of the portfolio as of FY11• Includes loan against property

• Affluent and• HNIs

Small Business Loan (“SBL”) & secured vendor financing (“VF”)

Loan against securities

• Maturity :12 - 36 months (SBL)• Maturity : 1 - 24 months (VF)• Repayment : EMI (SBL & VF)

• Maturity : 10 – 12 months• Repayment : Bullet

• 10% of the portfolio as of FY11 (SBL)• 4% of the portfolio as of FY11 (VF)• SBL to affluent small businessmen.• VF to vendors of large auto manufacturer

• 4% of the portfolio as of FY11• Launched retail loans to HNI customers in

FY11.

• Affluent and• HNIs

• HNIs

Construction EquipmentFinance

• Maturity : 12-42 months• Repayment : EMI

• 8% of the portfolio as of FY11• Launched in FY11.• Assets backed funding to Small, Mid &

strategic contractors.

• HNIs and• Affluent

Infrastructure financing• Maturity : NA• Repayment : Moratorium

period followed by EMI• Launched in FY12.

• Medium / large infrastructure companies

What differentiates Bajaj Finance

Strong promoters

• Promoted by erstwhile Bajaj Auto Ltd. Post the de-merger of Bajaj Auto, the shareholding in the Company was vested with Bajaj Finserv

• Debt free balance sheets of the promoter, Bajaj Finserv and of the primary holding company, Bajaj Holdings & Investments Limited

• 56.07% holding with promoter and promoter group.

Diversified lending business model• 8 product line company focused on homogenous segments• Profitable mix of consumer & SME business• Balanced mix of secured and unsecured assets

Affluent & HNI customer focused business model

• Focus on acquiring & servicing affluent & HNI clients (with the exception of captive2Wheeler financing business)

• Integral to risk management strategy• Large wallet size allows deep cross sell framework

Strong Distribution Reach• More than 225 points of presence across India• More than 4,000 distribution partners and dealers

High technology orientation and robust risk management

• 100% dealer “Point of Sale” terminalisation and E2E enterprise data warehouse for risk management and data mining capabilities

• Distinct business, underwriting & risk management structure for robust risk management.

Stable & deep management structure.• Top 100 management team members from leading MNCs.• SBU business structure allows scalability.• Top management vintage of 3 years.

cross sell. & Mortgages in

+ + + +

Diversified lending business modelConsumer finance Small business

2008-09

2007–08 100% POSlink up.3 Min-TAT

2009-10

LaunchedPOS ins.

2010-11

Launched project3sec-TAT. Launched post sale insurancecross sell.

2011-12

Launch EMI card – 3 second TAT Launch co- brandcredit card.

2008-09

Launched PSBL

2009-10

Launched “ no insurance no loan”. Launched

2010-11

Expanded to23 cities. Portfolio seasoning for PSBL & Mort. Launched CE & HL.Launched

2011-12

Launch SBS cross sell to cross collateralize portfolios and deepen wallet size.

Historical business model.3 day TAT. No cross sell.

ConsumerDurables &2-wheelers

Started PL cross sell to existing good customers

Personal Loans

Cross-sell

16 cities. Unique sales & collect model.

Insurance EMI Credit Card –services card Partnership

cutting edgeunderwriting platform.

partnership model

Acquisition Cross-sell Acquisition Cross sell Rel. model– S,C & C

Competitive Advantage• Data Mart and Cross sell capabilities• Customer Lifecycle Management• Low ticket - high volume transaction domain

specialization

Competitive Advantage• Relationship model– Sales & Collect• Premium customer experience model• Cross sell to Small Business segment

Deep distribution, sizeable acquisition engine and growing balance sheet

# of New Loans Disbursed (‘000s)

Business Line FY08 FY09 FY10 FY11

Sales Finance 621 352 515 1,038

2W 397 219 378 522

Small Businesses 0 3.5 5 9

Total 1,018 574 897 15,60

Assets under management (` billion)

FY08 FY09 FY10 FY11

AUM 24.78 25.39 40.32 75.71

Strong Distribution ReachGeographic presence

Business Line FY08 FY09 FY10 FY11

Sales Finance 116 87 79 79

2W - Hubs 116 55 54 54

2W - Spokes 300 200 150 150

Small Businesses 0 15 15 23

Distribution

Business Line FY08 FY09 FY10 FY11

Sales Finance – Dealer

19,000+ 4,500+ 2,000+ 2,500+

2W– Dealer/ASCs 1,400+ 1,400+ 1,275+ 1,400+

Small Businesses – Partner

- 175+ 225+ 250+

Small Businesses – Support

- 175+ 225+ 275+

Map not to scale

Deep distribution, sizeable acquisition engine and growing balance sheet

7

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High technology orientation and robust risk

management – An illustration

13

Customer gets Username& Password for online

access

14Cross Sell offers to

customers @ 4Month

DataEntry

2- Call- Fax- Data SSP

a b c

12

Data moves to Data- mart and B2B / B2C

1

Dealer

Credit bureau

De-dupeEngine

ApplicationScore

11Disbursal

10Central /national

operation centre

Customer

3

4

TVR

Fraud early warning

score card

Re-verification of application details by

call centre15 minutes TAT

9Files

i t Branch

InwardI 3 -4 days

8

Product Delivered at Home By Dealer for address Verification

5 Confirmation & Verification SMS /Email to Customer

6 Provide KYC Documents

Pro

cess

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Shop

5m

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Deepak Redd

Stable & deep management structure

Rajeev Jain Chief Executive Officer

Amit Gainda Business Head Mortgages

Ashish Panchal Business Head Credit Cards

• Rajeev brings with him more than 18 years of experience in the consumer & Small Business Segment lending industry.

• He has been with the Company for 4 years and has worked towards steering the organization onto a path of fast-paced growth and defined an ambitious trajectory of building a diversified lending institution.

• He has earlier worked with AIG, GE money andAmerican Express.

• A Management graduate with 15 years of varied experience across Strategic Planning, Sales & Marketing, Product Design & Development, to Six Sigma, Collections, and Analytics.

• He has worked for GE & Citi.

• Amit manages the high growth Mortgages business for Bajaj Finserv lending.

• Ashish has 13 years of rich and varied work experience across manufacturing, FMCG and Retail Banking in large multi-national organizations across credit cards, secured and unsecured assets as well as liabilities.

• He join the Company from Barclays & would be responsible for launching credit card business.

Deepak Gupta Chief Human Resources

y Business Head Personal & Small Business Loans

Devang Mody Business Head Sales Finance

• Deepak has an experience of 20 years in Financial Services, ITES, and Manufacturing industry.

• Deepak is responsible for driving people strategy for the organization and making Bajaj Finserv Lending the Employer of Choice.

• He earlier worked with Reliance, CRISIL andSREI.

• Deepak has over 20 years of experience in distributing Financial Services & Consumer Durables.

• He joined us from American Express, where he held various positions in their Personal Loans & Consumer Card businesses for over 9 years.

• Deepak manages our unsecured business &personal loans.

• A chartered accountant by profession, Devang brings with him 15 years of experience in consulting and financial services.

• Joining us from AIG, where he worked as Vice President – Business Development & CRM for the consumer finance business.

• Earlier he worked with GE money for 8 years.

Sanjeev Vij

Vivek

Stable & deep management structure (cont’d)

Diwakar Pundir Chief Credit Officer

Pankaj Thadani Chief Financial Officer

Rajesh K Chief Risk Officer

• Diwakar has nearly 12 years of varied and rich work experience, with the last ten years in Risk Management.

• He joins us from Citigroup, where his last assignment was managing risk and credit for West & South India regions for the Small & Medium Enterprises (SME) business.

• He would be managing the commercial credit.

• Pankaj joined Bajaj Finserv Lending in 2006, bringing with him a rich experience of 28 years in financing, financial accounting, cost accounting, tax, and systems

• He is a Mathematics Graduate and a CharteredAccountant

• Pankaj has provided invaluable advice and direction that has helped the Company grow from a single business company to a diversified NBFC.

• Rajesh is a management graduate with over 14 years of experience in financial services across consumer and commercial lending.

• Rajesh joins us from HSBC where he was handling the portfolio risk management unit for HSBC’s consumer credit risk function.

• Rajesh is responsible for maintaining portfolio quality. He earlier worked with GE money and Standard Chartered.

Rakesh Bhatt Chief Information Officer

Business Head Construction Equipment Finance

Corporate AuditServices

• Rakesh has an overall experience of 18 years in finance & technology industry.

• He has played several leadership roles encompassing CIO responsibilities, IT Product Mgmt., and Delivery.

• Currently, as the chief architect of our technology initiatives, he has successfully harnessed technology to introduce many innovations

• Has earlier worked with GE money, Reliance and AIG.

• Sanjeev is a chartered accountant by profession

• 19 years of experience in Retail Consumer Finance, SME mid-markets, and Corporate Finance for sectors such as Infrastructure, Industrial, Healthcare, Transportation, Auto, and Securitization of Receivables

• Sanjeev manages construction equipment business in strategic & retail space

• He earlier worked with RBS and Citi.

• Vivek joined Bajaj Finserv Lending in 2007.

• He is a Chartered Financial Analyst and holds aCost Accountant degree from ICWAI.

• He has an experience of 22 years in strategic planning, process and operations management, accounts, funds management, budgeting, and MIS

• He worked across operations, LAS business & is currently responsible for setting up corporate audit services.

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Mort

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Product line strategy

Profit Maximisers• Relatively higher RoA• Lower asset base and lower capital

requirements• High risk and return

Relatively higher RoANot a bank’s businessLarge cross sell opportunity

Scale Builders• Relatively lower RoA• Higher asset base and higher capital

requirements• Lower risk & return

Relatively low RoA Captive financing E2E Integration playleading to higher ROA

Non qualifiers• Low ROE – Lack of competitive

advantage• Customer segmentation

Car loans

Captive play

Credit Card partnership (WIP)

Relatively high RoACritical to full scale SF business

Relatively higher RoAMeet working capital needs ofMSME & SME clients

Relatively low RoAUn-penetrated spaceMeet working capital needs ofMSME & SME clients

Gold loans & Micro finance

Customer segmentation issues

Commercial vehicle

Specialized business

Relatively higher RoARegulatory advantage.Meet working capital needs ofMSME & SME clients

Relatively low RoA Dominated by non banks. Large upstream opp.

Relatively low RoAHigh growth rates and high demand potential

Summary financial statement

` in billi

Financials snapshot FY08 FY09FY11 CAGR

Deployments 30.36 24.51 45.8594.35 46%

Assets under finance 24.78 25.39 40.3272.70 43%

Assets under management (AUM)

24.78 25.39 40.3275.71 45%

Income from operations 5.03 5.99 9.1614.06 41%

Interest expenses 1.70 1.64 2.023.78 30%

Net Interest Income (NII) 3.32 4.35 7.1510.28 46%

Operating Expenses 1.93 2.20 3.204.54 33%

Loan Losses & Provision 1.09 1.64 2.612.05 23%

Profit before tax 0.30 0.51 1.343.70 131%

Income tax 0.09 0.17 0.451.23 136%

Profit after tax 0.21 0.34 0.892.47 129%

Ratios FY08 FY09FY11

Total Opex to NII 58.1% 50.7% 44.7%44.1%

Loan loss to Assets under finance

4.4% 6.4% 6.5%2.8%

Return on Average Asset under finance

0.9% 1.3% 2.8%4.3%

Earning per share (Rs.) 5.68 9.27 24.4367.47

Return on Average Equity 2.0% 3.2% 8.0%19.7%

Financial performance trends FY-11# of Loans Disbursed (‘000) Disbursements (` billion)

1,018

621594

355

1,123

681

40% 1,570

1,04830.36

15.52

24.51

45.85

32.21

106% 94.35

74.01

397 239442 522

14.8416.687.83 13.64 20.34

FY-08 FY-09 FY-10 FY-11 FY-08 FY-09 FY-10 FY-11

2 Wheelers Others Total 2 W heelers Others Total

AUM (` billion) Revenue (` billion)

24.78 25.39

8.31 13.64

40.32

26.39

88% 75.71

56.18

5.03 5.99

9.16

53% 14.06

16.47 11.75 13.93 19.53

FY-08 FY-09 FY-10 FY-11

2 W heelers Others Total FY-08 FY-09 FY-10 FY-11

CAGR 12.6% 58.752.3

45.437.8

28.832.8

FY-05 FY-06 FY-07 FY-08 FY-09 FY-10

Strong growth momentum with under-penetration

Nominal GDP Movement (` Trillion)

Loan Against Property in India (` Billion)

FY05-11 CAGR 17%73.1

Disbursement Market Share

28.832.8

37.845.4

52.861.3 FY 10–14P CAGR : 28%

85 120

325

5%

19%33%

43%

FY-05 FY-06 FY-07 FY-08 FY-09 FY-10 FY-11 FY-09E FY-10E FY-14PHousing Finance Co. NBFCs

Pvt. & For eign Banks PSU Banks

Source: Central Statistical Organisation (CSO) Source: CRISIL Research (Loan Against Property , December 2010)

Housing loans outstanding and % of GDP (` Billion, %)

Two wheeler finance disbursements and finance penetration (` Billion, %)

FY 11-15P CAGR : 17% FY 11-15P CAGR : 11%

9.1%9.1%

12,363800

600

37% 33% 30% 33%

478 6573804,765

9.0%

5,5886,640

400

200

0

295

72 84 99 150

FY09 FY10 FY11-P FY15-P

Hous ing Loans Hous ing loans as % of GDP

Source: CRISIL Research (Update Retail Finance Housing, Feb. 2011) and CSO

FY- 09E FY- 10E FY- 11P FY- 15P

New 2W Sales New 2W Finance Finance Penetration

Source: CRISIL Research (Update Retail Finance Auto, May 2011)

Credit Quality of Bajaj Finance customers across products

Consumer Durable Loans – 90+ DPD Personal Loans – 90+ DPD

0.23%

0.84%

0.40%

1.30% 0.28%0.41% 0.58%

0.49%

0.31% 0.54%

0.83% 0.69% 1.60%

1.00%

4.00%

Auto Loans Bus iness

Loans

Consumer

Durables

Loans

Credit

Cards

Home

Loans

Personal

Loans

Bajaj Finance Banks NBFCNBFCs Banks Bajaj Finance

Small Business Loans – 90+ DPD Mortgage and Loan Against Property – 90+ DPD

1.87%

0.75%0.93%

0.42%0.71%

0.08%

Bajaj Finance Banks NBFC Bajaj Finance Banks NBFC

BAJAJ FINANCE HISRORY

Bajaj Auto Finance Ltd. (BAFL) was incorporated as a Private Limited Company on 25th March, 1987. It became a deemed Public Limited Company by virtue of Section 43(A) of the Companies Act, 1956 w.e.f., 20th October, 1987.

Initially BAFL was promoted by erstwhile Bajaj Auto Limited and Bajaj Auto Holdings Limited. Bajaj Auto Limited is the largest manufacturer of two and three wheelers in the country and Bajaj Auto Holdings Limited is an investment company and is a wholly owned subsidiary company of Bajaj Holdings & Investment Limited. As per the Scheme of Demerger of erstwhile Bajaj Auto Limited, the shareholding of Bajaj Auto Limited in BAFL has been vested with Bajaj Finserv Limited.

BAFL is an NBFC registered with RBI and authorized to accept public deposits. Consequent to the re-classification of NBFCs by RBI, BAFL has been re-classified as an Asset Finance Company (Deposit Taking) ´.

BAFL is engaged primarily in the business of financing of two wheelers, consumer durables, personal computers, personal loans etc.

BAFL made a Public Issue of Equity Shares in 1994 and its Equity Shares are listed on Bombay Stock Exchange Limited and National Stock Exchange of India Limited.

BAFL made Preferential Issue of Equity Shares to the Promoters and a few foreign corporate bodies and also warrants to the Promoters in 2006.

BAFL made a Rights Issue of Equity Shares and Non-Convertible Debentures with detachable warrants to the existing shareholders in 2006-07.

BAFL has its headquarters at Pune and has more than 50 branches spread across the country.

Int ro du ct io n

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, we pride ourselves for holding the highest credit rating of FAAA/Stable for any NBFC in the country today. Our product offerings include Consumer Durable Loans, Personal Loans, Loan against Property, Small Business Loans, Two-wheeler and Three-wheeler Loans, Construction Equipment Loans, Loan against Securities and Insurance Services.

Our unique products feature across all categories and offer a compelling value proposition to our customers. Our strong presence in the Indian market for over 23 years has enabled us to establish a strong foothold here and we aim to continuously provide our customers with premium service and exclusive benefits.

C O N S U M E R D U R A B L E L O A N S

Bajaj Finserv Lending is one of the leading financiers in the market offering consumer durable loans on EMI.

Now you can easily avail a loan for products like LCD, LED, Color TV, Refrigerator, Washing Machine, Air Conditioner, Music System, Microwave etc amongst a host of other products.

Bajaj Finserv Lending consumer durable loan comes with 0% financing and with a small fee. You can apply online on our website and get an instant approval or v i s i t a dea l er s h i p t o easily avail a loan. We provide on the spot approval with minimum documentation & fast processing.

FEATURES & BENEFITS

F e atu r e s

Bajaj Finance, the sole organized financier in the market offering Consumer Durable loans offers you Dreams on EMI, with 0% finance options also available. CD loans are EMI loans for Consumer Durable items like Washing Machines, Refrigerators, Color TV's, LCD's etc. These CD loans come at a very reasonable pr ice, with a very simple process. You can just walk into one of our Dealer partner showrooms and avail of this facility for the item of your choice. Loans are available for amounts more than Rs.7000. Multiple Credit programs are also available to suit your fitment.

Avail loans ranging from Rs. 7,000 to Rs. 5,00,000 for Washing Machines, Refrigerators, Color TVs, LCDs and other consumer durables.

Apply Online or walk in to one of our Dealer Partner showrooms and get your loan approved in 15 minutes.

B e n e f i t s

0% finance options available (for select schemes).

Simple process with minimum documentation.

On the spot approvals with fastest processing.

Flexible repayment options. ECS clearing, reducing hassle of arranging cheques. Extended Warranty available.

Pre-approved personal loan offers for existing customers*

E l i g i b i l i t y & D o c u m e n t s

E l i g ibil i t y

If you are a salaried person your age should be between 21 years to 60 years. If you are Self Employed your age should be between 21 years to 65 years.

D o c u m e n t s

Documents required Salaried Self Employed

Photo Id Proof yes Yes

Residence proof Yes Yes

One Cheque in case of ECS Yes Yes

Credit program specific documents ( Any one of the following)

Credit Card front side photocopy Yes Yes

Visiting Card & Employee Id proof Yes No

Photocopy of RC book (Not applicable for vehicles registered after 2004 & commercial cars)

Yes Yes

Bajaj Finserv Lending existing loan Repayment LoanAccount Number / Schedule (subject to not later than 18 months old)

Yes Yes

Any other Bank/NBFC Repayment Schedule Yes Yes

Salary Slip Yes No

Banking Details (latest 6 months) Account Type- OD/ CC Yes Yes

F e e s & C h a r g e s

Amount Financed Slab Processing Fees

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

Between Rs.15001/- & upto 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

IT Product Loans

Features –

Bajaj Finance, the sole organized financier in the market offering IT Product loans, offer s you Dream Desktop/Laptop on EMI, with 0% options also available. These IT Product loans come at a very reasonable price, with a very simple process. You can just walk into one of our Dealer partner showrooms and avail of this facility for the item of your choice. PC loans are available up to 100% of the product price. Loans are available for amounts above Rs. 20000.

Benefits –

0% finance options available (for select schemes).

Simple process with minimum documentation.

On the spot approvals with fastest processing.

Flexible repayment options.

ECS clearing, reducing hassle of arranging cheques.

Extended Warranty available.

Eligibility & Documents

Eligibility –

If you are a salaried person your age should be between 21 years to 60 years.If you are Self Employed your age should be between 21 years to 65 years.

Documents -

Documents required Salaried Self Employed

Photo Id Proof Yes Yes

Residence proof Yes Yes

3 Cheques Yes Yes

Credit program specific documents ( Any one of the following)

Credit Card front side photocopy Yes Yes

Visiting Card & Employee Id proof Yes No

Photocopy of RC book (Not applicable for vehicles registered after 2004 & commercial cars)

Yes Yes

Bajaj Finserv Lending existing loan Repayment LoanAccount Number / Schedule (subject to not later than 18 months old)

Yes Yes

Any other Bank/NBFC Repayment Schedule Yes Yes

Salary Slip Yes No

Insurance Services

Bajaj Auto Finance Limited (BAFL) has tied up with Bajaj Allianz Life (part of Bajaj Group), to offer a rich bouquet of world class life insurance products to suit the financial needs of all segments of buyers through different stages of their lives. With its successful track record and its highly acclaimed standing, Bajaj Allianz Life Insurance Company (BALI C) prides on serving over 8 million Indian customers. BAFL shares BALIC's philosophy of providing insurance solutions relevant to the customer's needs.

P r o d u c t C a t e g o r i e s

From luxury to comfort, from indulgence to practical, from difficult to easy - we have simplified the many little joys you wish to buy for your family. Be it the top-end LCD to bring a smile on your loved one’s face or that high-end home theatre for your cricket match party or even that AC you want for your little one's room - our comprehensive loans make everything easy.

T V / C T V Washing M achine Ref r i g e r at o r / F r idge M ic r owave Oven Ho m e T he a ter S yste m s

P r oduct C a tego r i es LCD / L E D / P las m a T V A ir Conditio n er

Etc……..

COMPANY IS DEALING WITH FOLLOWING PRODUCTS –

C o nsu m e r D u r a b l e L o a n

H ome L o a n

I n f r a s t r u c t u r e E q u i p m e n t F i n a n c e

L o a n A g a i n s t P r o p e rt y

L o a n A g a i n s t S e c u r i t i e s

P e r s o n a l L o a n

S m a l l B u s i n e s s L o a n

T wo W h ee l e r L o a n

ACHIEVEMENTS AND MILESTONES

CERDIT RATINGS:

Highest Credit Rating of FAAA/Stable from CRISIL for Fixed Deposits.

P1+ rating from CRISIL for Short-Term Debt Programme.

AA+/Stable from CRI SIL and LAA+ from ICRA f or Long-Term Debt Programme.

We have a network of over 2,500 Bajaj Auto and consumer durable dealerships and over 63 branch offices throughout the country to cater to all the requirements of our customers. We have earned the trust and loyalty of over 50 lacs satisfied customers across the country.

Total Sale to Finance Cases atCPR Distributors, Koh E Fiza

Findings and Limitations

Findings -

Majority of cases happen in the evening time between 6 PM to 10 PM.

Number of cases on weekends is higher than other days of the week.

Most cases are for the products ranging more thanRs. 10,000.

The client base at CPR distributors Koh E Fiza is mostly of Business Profession.

Repeat sale for existing customers is increasing day by day hence this holds a great scope in future.

Finance demand for products at their peak sale season is very high urging for special schemes for those categories at that time. Example – Air Coolers & AC’s in summers and Washing Machines in Rainy Season.

Customers are unclear about the documentation requirement which creates frustration among them leading to loss of sales.

Incentives to the Sales Force at CPR dist. for their Finance conversions is not provided timely which is creating disinterest in them for finance.

Limitations -

Verification process in case of IT products gets delayed very often.

Potential customers unaware of the the various schemes provided by Bajaj Finserv Lending.

CPR Dist. Sales Executive support is low in some sections like Microvave and Air Conditioners.

Initiative taken for the sale of Insurance Product (Group Suraksha Plan) is low among the Bajaj Executives.

Negative Area list needs modification.

SWOT ANALYSIS

Strengths -

Monopoly player in the Consumer durable finance market.

Insurance Product (Group Suraksha Plan) is an incredible product also providing cross sale.

0% finance facility.

EMI Card provided for existing customer is one of a kind service.

BFL has presence at all the major retail counters throughout the country.

Strong network of executives with a responsible managerial hierarchy.

Weakness -

Low Control on the Payment Default by customers.

Concentration needed on cross selling.

Lot of dependence on the Online Support System.

Customer Service and handling needs improvement.

Opportunities -

Market has a lot of growth opportunities.Consumer Finance being an untapped market holds great scope.

Use the market as a good platform for cross selling.

Create a brand identity of its own, strengthening the brand Bajaj.

Opportunities in Rural market.

Opportunities available to reach the top position amongst the Finance Companies and establish itself internationally.

Threats -

New competitors entering the market with similar offerings. (HDFC, Shriram).

There is always a threat of Losses due to payment defaults in such business.

Suggestions & Recommendations

Management must encourage Executives to concentrate more on Cross Selling.

Finance schemes for strong seasonal sale products should be introduced.

A promotional campaign must be run clarifying the benefits and offerings of BFL which would vanish the doubts about 0 % finance & 0 processing fees.

Processing fees should not be charged from the EMI card holders in the case of Consumer Durables as it will create loyalty among customers and will help build a strong customer base even before the competitors entering the market.

A single agency must be hired for the verification purpose for the entire BFL to improve the uniformity of the process. Also, there is a great need of proper control over the verification process to reduce the lag time in verification.

Conclusion

Bajaj Finserv Lending provides 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 and 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.

Consumer Finance market being an untapped one in India holds a great scope for progress and market capture and BFL has been exceptional in that till date.

Bibliography

Annual Report – Bajaj Finserv Lending.

FICCI Research on Consumer Finance.

Websites -

http://www.bajajfinservlending.in

http://www.managementparadise.com