Mohit Project - Copy

7/30/2019 Mohit Project - Copy

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[TYPE THE COMPANY NAME]

PROJECT REPORT 0N

SCOPE OF REFINANCE

AND NON-MAHINDRA

BUSINESS AT VARANASI

SUBMITTED TO :- SUBMITTED BY:-

SONALI DIXIT MOHIT NARAYAN SINGHM.B.A.-3rd SEMESTER


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DECLARATION

I am thankful to Mr. Manoj Mishra (Territory Manager)

of Mahindra and Mahindra financial services limited

Varanasi branch considering me for such valuable

project. This project is on the topic scope of Refinance

and Non Mahindra business at Varanasi.

I Mohit Narayan Singh of M.B.A. 3rd semester student ofRadha Govind Engineering College Meerut, U.P. hereby

declare that all information fact and figure produced in

this report based on own experience and study during

my internship over analysis of Mahindra Finance.

Mohit Narayan Singh

M.B.A.


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ACKNOWLEDGEMENT

Behind every successful venture there is some hand.I pay my

all regards to those who are directly or indirectly with me for

encouragement and because of there immense help and I could

complete my project successfully.

In my prior list, I would like to express my profound sense of

gratitude to the authorities of Mahindra and Mahindra

Financial Services limited, especially Mr. Manoj Mishra

(Territory Manager), Mr. Rachit Chaturvedi (Branch Manager

Varanasi), Mr. Trivesh Tripathi (Assistant Manager Varanasi)

for providing me the platform and tracks for the purpose and

under whose guidance I was able to complete my project and

got the help for the same at each and every step.

Last but not the least my special thanks to employees ofMahindra and Mahindra Financial Services limited, who helped

me towards completion of this project.


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PREFACE

Any kind of learning is incomplete till it is practically applied in

the concerned field. Only then does a person understand and

get hold of even the minutest details of what He/she has learnt

in their stay at the institute doing his or her M.B.A..So to

practically applied what I had gained in the past one year in the

M.B.A. program, I underwent summer training at Mahindra

and Mahindra Financial Services Limited, Varanasi. It has been a

wonderful learning experience, which has given me an insightinto management of modern business which requires an

appreciation of multi disciplinary concept and in depth

knowledge of specific analytical tools, geared to the solution of

real life problems. No doubt every real situation is unique but a

set of theoretical tools of knowledge, itself based on empirical

foundation can help in developing the mechanism for handlingsuch situation. So the M.B.A. curriculum has been desired to

provide to the future managers ample practical exposure to

the business world. The summer training is essential for the

fulfillment of M.B.A. curriculum it provides an opportunities to

the student to understand the industry with special emphasis

on the development skills analyzing interpreting practicalproblems through application of management.


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CONTENT


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INTRODUCTION

Practical knowledge is an important suffix to theoretical

knowledge. One cannot merely depend on theoretical

the knowledge. Classroom lecture makes the

fundamental concept of management clear. They also

facilitate the learning of practical things. However

classroom lectures must be correlated with the practical

training situations. It is in the sense that practical trainingin a company has a significant role to play in the subject

of business management. Market research is indeed an

ancient art, it has been practiced in one form of the

other since the day of Adam and Eve. Its emergence is of

relatively recent origin for success of any business and

within this relatively short period it has joined and carry a

great deal of importance.

Management in India is heading towards a better

profession as compared to other professions. The

demand for professional managers is increasing day by

day. To achieve profession competence manager ought

to be fully occupied with theory and practical exposure

of management. A comprehensive study of the principles


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will increase their decision making ability and sharpens

their tools for this purpose.

As an essential part of our course, I got the privilege totraining in Mahindra and Mahindra Financial Services

Limited, the work has carried over a span of 45 days.

My job profile includes generating business in Varanasi

from three dealer points namely Maruti AGR, Suyash

Tata Motors where my work is to aware customer aboutMahindra Finance for providing them loans with fast

service and easy documentation. We provide loan on flat

rate with minimum low rate of interest as much as

possible. We often focus on rural people and semi urban

people who may not be able to fulfill the criteria of

documentation needed with the nationalized bank.

Nationalized and private banks provide loans on reducing

balance for a tenure of more than five years and in which

they are unable to tell customer about how much

interest they are charging on them but we at Mahindra

Finance assures customer about how much interest wecharge on them for a maximum tenure of four years with

a fixed equated monthly installments i.e. E.M.I..We at

Mahindra Finance fixes a loan tenure for four years so


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that the customer should free himself from the burden of

loan as soon as possible and there is also a believe of

when you purchase a car by financing it from financial

institutions for a particular period of time say five to six

years that means you are paying the loan for an old car

as the value of newly car purchased by the customer will

be assessed by him after four to five years that means

still paying loans for an old car which will be ready for

resell second hand in market.

My work is also to look for the Refinance segment at

dealer point like Maruti True Value, Tata Assured where

Mahindra also finance on a purchase of second hand cars

from dealer point. The amount of funding depends upon

how much old the assest is and funding for a maximumperiod of not more than four years. In the process of

refinance we provide loan on those amount whichever is

less, on the valuation of vehicle done by these organized

sectors or by the insuarance company.

HISTORY


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The history of Mahindra Finance has been a history of

continuous ascent. Listed below are the important eventsand milestones in the story of Mahindra Finance.

We were incorporated on January 1, 1991 as Maxi Motors

Financial Services Limited and received certificate of

commencement of business on February 19, 1991. Our

name was changed to Mahindra & Mahindra Financial

Services Limited on November 3, 1992. We are registeredwith the Reserve Bank of India as an NBFC. The

Company is having a valid Certificate of Registration No.

13.00996 issued by the Reserve Bank of India under

section 45-IA of the Reserve Bank of India Act, 1934

classifying it as an Asset Finance Company Deposit

Taking.

Our Milestones:

1993

Commenced financing of Mahindra and MahindraUtility Vehicles.

1995

Opened our first branch outside Mumbai, at Jaipur.

1996


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Commenced financing M&M dealers for purchase oftractors.

1998 Launched a pilot project for retail tractor financing.

1999

Commenced tractor retail financing in rural and semi-urban areas

2001

Total Assets crossed the 10 billion mark.

2002

Commenced financing of non-Mahindra & Mahindra

vehicles. Received Tier II debt from International Finance

Corporation.

Made our first securitisation transaction of Rs438.8Million.

2004

Opened a branch in Port Blair. Received a long-term credit rating of AA+/Stable. Commenced Insurance Broking through our

subsidiary MIBL.

Securtisation of tractor assets of Rs.256.6 million.


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Listing of non convertible debentures on BSE on thewholesale

debt market segment.

2005

Tied up with HPCL Made Mahindra InsuranceBrokers Ltd our wholly owned subsidiary.

2006

Issued our IPO. Tied up with Maruti Udyog Limited.

2007

Reach extended to over 400 branches.

2008

Commenced the home loan business through oursubsidiary, Mahindra Rural Housing Finance Limited

(MRHFL)

2009

Recommenced Fixed Deposit programme. Received 12.5% equity participation from NHB for

our Subsidiary Mahindra Rural Housing Finance Ltd.

2010


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Loan against Gold launched in Kerala. Assets Under Management crosses Rs. 10000 crores. PBT crosses Rs. 500 crores. Branch network crosses 550 branches. More than 2 lakh new customer contracts in a

financial year for the first time.

2011

Crossed the benchmark of Rs. 100 billion in Total

Assets Maiden QIP Issue Joint Venture with Rabobank subsidiary for tractor

financing in USA and ventured into SME financing

2012

Crossed the benchmark of financing more than 2million customers

Consolidated the product portfolio by introducingSmall and Medium Enterprises (SME) instruments

and bank facilities

financing Maintained an 18% Capital Adequacy, complying

with the minimum requirement of 15% set by the

RBI


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CRISIL reaffirmed 'CRISIL AA+/ Stable' rating to the

Companys long-term debt.

DETAIL OF MAHINDRA FINANCE


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DOCUMENTATION REQUIRED

Car loans available for wide range of cars across several

Indian and international brands MARUTI, TATA,

HYUNDAI, HONDA etc. Mahindra Finance provides

Personalized service throughout the tenure of theloan.

Widespread network of branches ensuring promptservice.

Any one document of proof from each of the given

categories will be required.

5 photos of borrower. Proof of identity:

Pan card, Voter ID card, Driving License,

Passport, Pass Book, Local Panchayat ID card.

Proof of address:Ration card, Electricity bill, Yellow card,

Driving License, Voter ID card.


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Bank Passbook with six months latest statement. Bank Cheques if needed. Proof of income:

Latest income tax returned filed, Details of

documents certifying land owned by customers

(khatauni), Salary slip, etc.

Proof of property.

3 stamps of Rs. 100 needed.One each in the name of borrower, Mahindra

& Mahindra Financial Services Limited, guarantor.


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PRODUCT WISE DEALER WISE

INFORMATION


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MARKET SHARE OF MAHINDRA FINANCE

AT EACH NON MAHINDRA AND

MAHINDRA COUNTER


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AGR MARUTI SUZUKI


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ELDEE MOTORS CHEVROLET


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SUYASH TATA MOTORS


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AREA OF IMPROVEMENT TO

INCREASE MARKET SHARE


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Scope Of Non Mahindra Cars

We can increase our business by converting cash

customers into finance customers as such customers do

not have financial problems so we should need toconvince them for purchasing a new car by paying half

down payment and increase the number of business.

Thus we can see from below our new market share as it

increases at each and every dealer point as we convinced

only 10 customers to purchase in finance instead of cash.


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MARKET SHARE

CASH(36.36%)

MMFSL(17.48%)

OTHER

FINANCERS(46.15%)

AGR MARUTI SUZUKI


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SUYASH TATA MOTORS

MARKET SHARE

CASH(34.37%)

MMFSL(34.37%)

OTHERFINANCERS(31.25%)


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REFINANCE

We provide fast and easy loan for the purchase of used

cars, utility vehicles, and commercial vehicles and used

tractors. Thus providing liquid cash to the family for the

need/emergency.

Refinance is divided into two sectors namely

Non organized groups. Organized groups. groups includes those customers for refinance

who have excellent track records with Mahindra

Finance and they be existing tractor customer

or commercial vehicles customer. Here,excellent track records refers to those

customers who had timely paid their dues

installments.

Organized groups includes Maruti True Value,Tata Assured, Chevrolet Eldee second hand alldealing with purchase of second hand cars. In

the process of refinance, Mahindra provides

loans on those amounts whichever is less on the


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valuation of vehicles either done by these

organized groups or by the insurance company.


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AREA OF IMPROVEMENT TO INCREASE

MARKET SHARE OF REFINANCE


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1.Improved data base:The information of customers should be well

in data bases so that the existing customers of

Mahindra should be easily tracked.

2.Telecalling:With the help of telecalling we can create a

new customer from the existing customers by

making them aware about our funding schemes and

low interest rates as compared to other unsecured

loans.

3.Awareness:It is one of the activity in which we can

spread the name of Mahindra Finance as much as

possible.


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4.Direct Marketing:It is also an activity like loan mela that we

perform with dealers to aware customers in ruraland urban sectors.

5.Advertisement:To provide information and to aware the

customers through print media.

6.Channel partner development:To grab more customers and

increase business it is necessary to take care of

channel partners like broker direct sales executives,

insurance agent etc. by providing them good amountof commission on time. As they are those people

who may increases the business.

7.Repeat existing customer:Those customer whose N.O.C. is cleared

and there are no dues to pay we can provide morefinance to those existing customers for purchase and

increase our business.


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DIFFERENCE/COMPARATIVE ANALYSIS

BETWEEN MAHINDRA FINANCE AND

OTHER FINANCERS


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COMPARATIVE ANALYSIS

MAHINDRA FINANCE

1. To increase business we focuson those customers who areavoided by other financersdue to there paper work esp.

rural people.2. Provides flexibility indocumentationrequirement.

3. Speedy loan disbursementprocess.

4. Low rate of interest ascompared to others.

5. Maximum flexibility inschemes as per requirementof customers.

OTHER FINANCERS

1. Generally they do not care

about the rural people.

2. Very often they provide

non-flexibility indocumentation

requirement.

3. Slow loan disbursement

process.

4. High rate of interest.

5. Minimum flexibility in

schemes.

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