Winter Internship

Report

A
PROJECT REPOPRT ON
“A Study of Loan procedure of Consumer Durable

Product on EMI Card”

done at

BAJAJ FINSERV, Pune.

Location – BIG BAZAAR, Kothrud.

by

Abhishek Verma

MBA19B12

under the guidance of

Mr. Sagar Gurv

Sales Manager in Bajaj Finserv

 DECLARATION

I, Abhishek Verma, hereby declare that, the project entitled “A

Study of Loan Procedure of Consumer Durable Product on
EMI Card” is submitted by me to Bajaj Finserv Ltd., based on a
research study conducted and presented towards the partial
fulfillment for the Award of the degree - ‘Master of Business
Administration’.
The report is based on my own work experience during the 45 days
with the organization.

Place:
Date: signature
Company Certificate
 ACKNOWLEDGMENT

I consider it a privilege to express a few words of gratitude and respect to all who guided
and inspired me in successful completion of this project.

I am overwhelmed with pleasure to express my gratitude towards Mr. Sagar Gurv (Sales
Manager) BAJAJ FINSERV LTD. For granting this project to me and giving me an opportunity
to work with such an esteemed organization.

It is my sincere duty to do my best, so as to recognize as one amongst the most successful

professional, which I always strive to be. This bring along and frame to my beloved
institution, the PUNE INSTUTUTE OF BUSINESS AND MANAGEMENT.

I owe my deep gratitude to Chairman Mr. Raman Preet, to Director Mr. Bibhas Basumurty
and project guide Dr. Vinay Nandre, who took keen interest on my project work and guided
us all along, till the completion of our project work by providing all the necessary
information for developing a good system.

ABHISHEK VERMA
Contents
INTRODUCTION............................................................................................................................................ 2

BASIC THEORETICAL..................................................................................................................................................2
What is Finance?.............................................................................................................................................2
Who is consumer?...........................................................................................................................................3
Consumer Finance:..........................................................................................................................................3
Consumer Durable Finance:............................................................................................................................4
EMI Card:.........................................................................................................................................................4
Advantages of Project:....................................................................................................................................5
MEANING OF BANKING:............................................................................................................................................5
Definition of Bank:...........................................................................................................................................5
Meaning of NBFC:...........................................................................................................................................5
Definition of NBFCs:........................................................................................................................................6
DIFFERENCE BETWEEN NBFC AND COMMERCIAL BANK:.................................................................................................6
Leasing Companies:.........................................................................................................................................6

PROFILE OF THE ORGANIZATION................................................................................................................... 6

HISTORICAL BACKGROUND OF THE ORGANIZATION:........................................................................................................6

AREA OF OPERATION:................................................................................................................................................7
VISION AND MISSION OF THE ORGANIZATION:..............................................................................................................7
OBJECTIVE OF THE ORGANIZATION:.............................................................................................................................8
ORGANIZATION HIERARCHY:.......................................................................................................................................9

ORGANIZIONAL HIERARCHY............................................................................................................. 12

PRODUCT PROFILE OF THE ORGANIZATION:.................................................................................................................13

Product Profile of the Organization............................................................................................................14
Products Covered:.........................................................................................................................................14

SWOT ANALYSIS OF THE ORGANIZATION:.....................................................................................14

Strenths:.......................................................................................................................................................15
Strenths of the Organization.........................................................................................................................15
Weakness :....................................................................................................................................................15
Weakness of the Organization......................................................................................................................15
Opportunities : .............................................................................................................................................15
Opportunitiesof the Organization.................................................................................................................15
Threats :........................................................................................................................................................16
Threats of the Organization..........................................................................................................................16

RESEARCH DESIGN AND METHODOLOGY..................................................................................................... 16

INTRODUCTION:......................................................................................................................................................16
MEANING OF RESEARCH:.........................................................................................................................................17
DEFINITIONS:.........................................................................................................................................................17
Characteristics of Research:..........................................................................................................................17
Types of Research:........................................................................................................................................18
Other types of Research:...............................................................................................................................18
RESEARCH DESIGN:.................................................................................................................................................18

OBJECTIVE OF PROJECT:.............................................................................................................................. 19
SCOPE OF THE PROJECT:.............................................................................................................................. 20

RESEARCH METHODOLOGY:......................................................................................................................................20
KEY CONCEPTS:......................................................................................................................................................20
Internship Summary

I have taken Finance as a specialization with the title of “A STUDY OF LOAN

PROCEDURE OF CONSUMER DURABLE PRODUCT AT BAJAJ FINSERV
LENDING “The objective behind this project was to primarily focus on Modus Operandi of
Bajaj Finance for Finance of Consumer Durable products. This required a fist hand
experience in understanding end to end process flow for loans processing to payment
disbursement. Also I discuss about the Bajaj EMI Card, the Bajaj Finserv Lending Company
which is one of the lending company they also make available EMI Card option for the loan.
I have collected the Secondary data from Books, Company Annual Report & internet
Articles etc. Bajaj Finance Ltd has only one market sales of Consumer Durable Loan product
provided in EMI based loan.

I also focus on the surrogates required for loan approval, which documents are necessary for
approval of loan. And also to show the SWOT analysis of Company. I have also tried to
explain the loan procedure and its approval by enclosing some case studies. Through this
project, I learn how to given a loan on consumer durable product and how to solve customer
difficulties about the documentation. I was dealing with proper customer, provided them
loans by completing their files and getting the approval online form Bajaj Server called as
“Galaxies” Portal. This process helped me to better understand the Loan procedure of
Consumer durable product at Bajaj Finserv Lending.
Introduction

Basic Theoretical

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.

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.”

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.”
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.

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 provides 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 12/4 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.

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.

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.

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

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

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.

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

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

Difference between NBFC and Commercial Bank:

Sr no. NBFC Commercial Bank
1 It is no facility to issue cheque The cheque can be issued against bank
against 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 holds variety of assets in form of loan,

cash etc.

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.
Profile of the organization

Historical Background of the Organization:

Bajaj Finserv was formed in April 2007 which is situated in 4TH Floor, Bajaj Finserv
Corporate Office, Pune-Ahemednager Road Viman Nagar, Pune 411014, 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.

Area of operation:
 Consumer Durable Finance
 Two and Three Wheeler Finance
 Lifestyle product finance
 Vendor finance
  Construction Equipment Finance

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.

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

DEPARTMENTS

Administration Collections Marketing Product

Credit Team Human Resources Operations Sales

Different Departments

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

Rahul Bajaj
[Chairman]

Nanoo Pamnani
[Vice-Chairman]

Rajeev Jain
[Ceo]

Rakesh Bhatt
[Coo]

Devang Mody
[President Consumer Business]

Deepak Reddy
[Chief Human Resources]

Manev Mianwal
[Group Marketing Head]

Pankaj Thadan
[Chief Compliance Officer]
 Amit Gainda
Business Head - Mortgages

Rajesh K
[Chief Risk Officer]

Ashish Panchal
[Business Head - Credit Cards & Loan]

Diwakar Pundir
[Chief Credit Officer]

Ashish Sapra
[Business Head - Cross Sell]

Amit Raghuvanshi
[Business Head - Sales Finance]

Atul Jain
[Chief Collections Officer]

Samir Mehta
[Business Head Commercial
Lending]

B. Sreenivas
[Business Head - Insurance
Services]
 Vivek r. Likhite
[group corporate audit head]

M M Muralidharan
[Treasurer]

Deepak Bagati
[Business Head - Business Loans]

Samir Satyam
[BH - Loan Against Securities]

Sanjeevvij
[BH - Construction Equipment]

Organizional Hierarchy

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

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 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

Product Profile of the Organization

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

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
 Strenths of the Organization
Weakness :

Uneven schemes to One sales executive fails

customer Weakness to entertain the customer

More strict policy than

competitors

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

Opportunitiesof the Organization

Threats :

The competitions Threats Margins getting squeezed

catches-up any new 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

Threats of the Organization

RESEARCH DESIGN AND METHODOLOGY

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.
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.

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.”

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

12. Careful designed procedure.

13. Needs expertise.

14. Task to discover, develop and verify knowledge

15. Careful critical inquiry.

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.

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

  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.

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
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.

Scope of the Project:

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

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.

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.

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

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.

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.

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

Scheme Chart for loan approval :

Schemes Description

12/4 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 12 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.
Customer apply for loan on Consumer Product?

Name of the Applicant Mr. Avinash Thite

Age 50 years
Permanent Address Karve Road, near
Dashabhuja Ganesh Temple,
Kothrud Pune-411004
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

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.

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)

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.
 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 , Pune 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.
 Flow chart of the application process for loan approval

Surrogates Required for Loan Approval:

There are three types policy are as below:

A.WOW Policy

B.WOW Lite Policy

C.WOW Extension Policy

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.sss

Following are the Surrogates included in that Policy:

 Credit Card (Max LTV 83% up to 125000)

 Listed Companies (Max LTV 90% up to 100000)
 RC of Vehicle (Max LTV 83%)
 Existing Customer (Max LTV 90% up to 50000)
 CIBIL Score (Max LTV 90% up to 125000)
 Salaried (Max LTV 90% up to 125000)
 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:

 Credit Card (Max LTV 83% up to 35000)

 Listed Companies (Max LTV 83% min salary 7500)
 RC of Vehicle (Max LTV 83% up to 25000)
 Existing Customer (Max LTV 83%)
 CIBIL Score (Max LTV 83%)
 Salaried (Max LTV 90% Min net salary 7500)
 BIBLIOGRAPHY

Performa of Bibliography:

 Book:
 Kulkarni M.V., (2010), Research methodology, Everest publishing house.
 Srivastava T.N., (2011), Business research methodology, Tata McGraw - Hill
Education private limited.
ssss
 Online References:
 WWW.Bajajfinservlending.in
 WWW.Slideshare.com
 WWW.Salesforce.com

 News Paper:
 Economic Times
 Times of India
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

Loan Term Sheet
Application Form for Consumer Finance
Electronic Clearing Form (ECS)