PROJECT ON CONSUMER DURABLE LOANS IN BAJAJ FINANCE

kiranmadamshetty@gmail.com Page 1
“A PROJECT REPORT ON CONSUMER DUREBLE LOANS”
IN
“BAJAJ FINSERV”
A PROJECT REPORT
Submitted by
M.Kiran Kumar
Roll No: 6071-13-684-014
SUMMER INTERNSHIP PROJECT
Bachelor of Business Administration
RATAN GLOBAL BUSINESS SCHOOL
Approved by AICTE, Ministry of HRD, Govt. of INDIA
Campus: Pattabhi nagar, Ravelly.NH-44, Toopran
Hyderabad. A.P. Ph: 08454-236100, 9849685350

Acknowledgement:
While submitting the project on “CONSUMER DOURABLE LOAN” I avail this opportunity
to express our gratitude towards all those all those who guided and helped to finish this project
successfully.
I am grateful to Mr. Murthi(Team leader), project guide, BAJAJ FINSERV, Hyderabad
for his inspiring guidance and kind encouragement.
I express my deep sense of gratitude and heart full thanks to my executive Mr.sampath
and Ravi kumar those valuable guidance and encouragement, which has played a major role in
completion of this Project work. His esteem suggestion and encouragement from time to time
has always Helped in the completion of this project.
I express my since thanks to Dr.B.Ratan Reddy Sir, President, RGBS for
Providing necessary facilities in college for this project.
I am thankful to my teaching staff for their valuable guidance and encouragement in
The completion of this project.
I am grateful to my non teaching staff for their moral support and co-operation.
I am thankful to my parents for their inspiring guidance and kind encouragement.
(M.Kiran kumar)

DECLARATION
I M.Kiran Kumar student of BBA, RATAN GLOBAL BUSINESS SCHOOL,HYDERBAD
Hereby declare that this project report entitled “CONSUMER DURABLE LOAN”
At BAJAJ FINANCE submitted is my original work.
The finding of the report are based on the information collected by me during the study
And the result embodied in this study has not been submitted to any other university for
The award of degree.
M.Kiran kumar
PLACE:
DATE:

CONTENTS.
Name of the content
Introduction
Need for the study
Scope for the study
Objective of the study
Consumer durable loans Benefits &features
The loan process
How many new and existing customers are taking loans
What is an EMI card and Advantages of EMI card
How to apply EMI card
Difference between Bajaj finance and other finances
Finance analysis of Bajaj finance
Bajaj finance store sale report(malakpet)
Who is the competitor for Bajaj finance
Suggestions
Conclusion
Bibliography

INTRODUCTION
About Bajaj Fiserv
Bajaj Fiserv Limited is the holding company for the financial services businesses of the Bajaj
Group. Its insurance joint ventures with Allianz SE, Germany namely Bajaj Allianz Life
Insurance Company Limited and Bajaj Allianz General Insurance Company Limited are
engaged in life and general insurance business respectively. Its subsidiary Bajaj Finance
Limited is a Non Banking Finance Company engaged in consumer finance, SME finance and
commercial lending. Bajaj Financial Solutions Limited, a wholly owned subsidiary of Bajaj
Fiserv Limited is engaged in wealth advisory business
HISTORY OF BAJAJ FINSERV LENDING
Bajaj finserv was formed in April 2007 as result of its demerger from Bajaj auto limited To act
as a pure play financial services business. The process of demerger was completed in Feb
2008.this demerger was not only to unlock values in the high growth business areas of Auto,
Insurance, Finance sectors and wind power but also to run independently these core Business
and to strengthen the competencies.
The wind power project, the stakes in the life and general insurance companies and Consumer
finance along with their respective assets and liabilities got vested in Bajaj finserv Limited. In
addition to that cash and cash equivalent of INR 8,000 million (then market value) Was also
transferred to the company. The demerger has enabled investors to hold separate Focused stock
and also facilitate transparent benchmarking of the companies to their peer in their respective
industries.
The constantly changing demographics and dynamics of the Indian economy, has led to creation
of various needs of the average Indian customer now demands proper avenues of channelizing

their savings. Financial protection and is also desirous of spending more on valuable goods and
services.
All these wants need to be met by dynamic players in the financial services space. Bajaj finserv
was formed specifically to cater to these needs. The company was also formed to touch and
improve the lives of a growing number of people in the country. And in doing so, deliver
superior corporate values to its shareholders. The operating companies carry with them the
Bajaj brand, which carries with it decades of commitment to business ethics, integrity and
highest standards of fiduciary responsibility.
NAME DESIGNATION
Rahul Bajaj Chairman
Sanjiv Bajaj Managing Director
Rajiv Bajaj Director
S H Khan Director
Nanno Pammani Vice chairman
Madhur Bajaj Director
D J Balaji Rao Director
Naresh Chandra Director
Rajeev Jain Chief Executive Officer
Annant Damie Company Secretary

Vision of Bajaj finserv
Bajaj Finserv has a vision to become a full fledged financial services company and be the
financial partner to the Indian consumer and help him across his financial needs, whether for
finance, for investment management, for protection or for post retirement support, throughout
his lifecycle. Bajaj Finserv is a consumer focused company with emphasis on profitable growth
and operational efficiency to deliver best results to all its stakeholders
Awards
 Top 3 Financial Services Company
We're proud to be ranked amongst the Top 3 Financial Services Companies to work for in India.
The ranking was conferred on us by Great Places To Work (GPTW), the gold standard in
ranking the world’s best workplaces, at a special event hosted in Mumbai on 21 June, 2013.
GPTW conducts this survey every year amongst more than 500 companies across India. This
year more than 530 companies participated in the survey.
 Aon Hewitt Best Employer 2.0 India
We are proud to be ranked amongst the Top 17 Best Employers in India, by Aon Hewitt, in
association with the Times Group. Notably we are also the only Financial Services Company to
feature in the list. This prestigious award was conferred to us at an awards ceremony in Delhi
on the 15th of Jan 2014. Aon Hewitt is a highly respected authority on measuring and
improving engagement to drive workforce performance. The company began the Best
Employers research in Asia in 2001 to explore what makes a workplace of choice and thus
identify a list of best employers in Asia and identify their innovative people practices. This year
more than 120 companies participated in the survey.

Types of finances Bajaj Finance
The Bajaj finserv is the most diversified non-bank finance company in the country, the Bajaj
finance largest financier of consumer durables in India and one of the most profitable firms in
the category. Hereunder are summary details of our portfolio of businesses, with a brief
description on each.
Consumer Finance
Consumer Durables Finance
Lifestyle Finance
EMI Card
Personal Loans Cross Sell
Co-branded Credit Cards
Two and three wheeler Finance
Salaried Personal Loans
SME Finance
Mortgage
Business Loans
Commercial Lending
Construction Equipment Finance
Infrastructure Finance
Vendor Financing
Note: we focused on consumer durable finance

Need for study

Need for study
In the urban areas 50% of people are taking the loan from Bajaj finance. and other finance
Because there are parching the consumer Durable durable product in EMIs facility.
The customers are spending their money for consumer durable products like TVs, Smart phones
Daily around the city the people are spending amount is Rs:50,00,000 to purchase the
consumer product
The customer was not pay the total amount at the time
This point is play the key role on Bajaj consumer durable loans. The Bajaj finance was
observed the point they are providing good financial facility to the customers.

Scope for study

Scope for study
The Scope of the study is if we see the current position in finance market
The number of financial companies are entering in to the market. the competition
Was so high in the finance market. How the Bajaj will stand in the present market
To giving the new offers to the customers to stand in the market.

Objectives of the study
1) The loan process
2) How many new and existing customers are taking
loan?
3) What is an EMI card and advantage of EMI card
4) Features and benefits of EMI card.
5) difference between Bajaj finance and other finance
6) Who are the competitor for Bajaj finance

Consumer Durable Loans
The customer was asked question to me
 What is a Consumer Durable loan?
The Consumer Durable loan is a loan for purchase of household items like Washing
Machines, Refrigerators, AC's, Color TV's, LCD, Microwaves etc.
The Present in the top 79 cities of the country, the Bajaj finance the largest Consumer
Durables Financier in India. They financed over 10% of all consumer electronics sold in the
country in the last year. The Bajaj finance one out of every four LCD and Plasma televisions
sold in the country. Last year, they acquired more than 1.45 million new customers, through our
over 2,500 points of sale across the country.
The Bajaj existing customers can enjoy special benefits of their relationship with the EMI card.
With EMI card, any of Bajaj existing customers can go and buy their next consumer durable
from Bajaj partner outlets with the simple swipe of the EMI card. There is no need for any
additional documents.
they have recently introduced Extended Warranty on all purchases made through their
Consumer Durables Finance. With Extended Warranty, you get an additional one-year
warranty, over and above the manufacturer's warranty on your consumer durable.
For more details on the EMI Card and Extended Warranty, click on the 'What We Do' button on
the top of your screen and make a selection from the drop-down menu.

Benefits & Features of Consumer Durable
Loans in Bajaj Fiserv Lending
In my point of you the Bajaj finance providing good features to the customers. The customers
are fully satisfied with Bajaj features.
Features
o The Bajaj finance was offering loans on EMI for consumer durable goods no other
finance can match this features & benefits the Bajaj Finserv Lending has to offer. From
schemes to quick approvals to minimal documentation, they do everything to make it
easy for you.
o Whether it’s an LCD TV or a split AC, Smart phones, laptops you can get loans for
consumer durable loans ranging from Rs 7,500 to Rs 500,000.
o The customer can get approval for a loan in anywhere between 3 to 15 minutes.

Benefits
 The Bajaj Fiserv Lending providing pre payment facility to the customers they can
reduce their EMI or tenor or both by repaying their loan on time. customer can prepay up
to 6 times in a calendar year at any interval with the minimum amount per prepay
transaction being not less than 3 EMI’s. Also there is no limit on the maximum amount.
 The Bajaj finance providing 0% finance options only with Bajaj Finserv Lending. (select
schemes are interest bearing)
 The Bajaj finance also offer you special flexible repayment options

The loan process

The loan process
How to participate?
The loan process is simple in Bajaj finance the few steps are to participative by both customer
and Executive.
 First step :The Bajaj executive asks that the customer has any previous loans in the Bajaj
finance or in else any financial companies or the customer is credit card user.
 Second step: The response from the customer with respective to previous loans is gained
by the executive.
 Third step: The executive asks about the necessary documents require in the loan process.
Then the executive explains about their schemes with respective to the products
purchasing by the customer.

Required documents:
Photo Id Proof
Residence proof
One cancelled cheque in case of ECS
Credit program specific documents ( Any one of the following)
Credit Card front side photocopy
Visiting Card & Employee Id proof
Photocopy of RC book (Not applicable for
vehicles registered after 2004 & commercial cars)
Bajaj Finserv Lending existing loan Repayment Loan
Account Number / Schedule (subject to not later
than 18 months old)
Any other Bank/NBFC Repayment Schedule
Salary Slip
Banking Details (latest 6 months) Account Type- OD/ CC

 Fourth step: the loan process takes place by the preparation of delivery order by the Bajaj
executive to the customer then the customer receives the product the loan process is
finishes. The charges collected for the loan process
Note: The loan Eligibility
The following are the eligibility criteria to apply for a loan:
o If you are a salaried person your age should be between 23 years to 60 years.
o If you are Self Employed your age should be between 23 years to 65 years.
Amount Financed Slab Processing Fees
Up to 15000/- Rs.499/- to Rs.599/-*
Between Rs.15001/- & up to Rs.30,000/-* Rs.599/- to Rs.699/-
Rs.30,001/- & above Rs.699/- to Rs.799/-*
Other Charges Amount
Foreclosure Charges ** NIL
PDC Swapping Rs. 500
Bounce Charges
Cheque Bounce - Rs. 350 per cheque
Late payment penalty - Rs. 150

How many new and existing customers are
taking loan?

How many new and existing customers are
taking loan?
 I observed in the Bajaj finance the existing are preferring for Bajaj finance because due
To the good service.
 The Bajaj offering flexible EMIs to customer so there are preferring to the Bajaj finance
than other finance company in the market.
No.of customers
Existing
New

What is an EMI card and Advantages of EMI card

What is an EMI card? Advantages of EMI card
What is an EMI card?
Bajaj Fiserv Lending EMI card is a pre-loaded card with a pre-approved * Consumer Durable
& Lifestyle Product Loan. We can use this card to buy our favorite consumer durable (or
lifestyle products) at * by simply swiping your card at our partner retail outlet
Advantages of EMI card
 The Bajaj finance providing good opportunity to customers buy offering EMI card to the
customers their benefiting they Are getting very good services and it is very useful to use
and it also avoid the ford cases.
 With this card we can come to know that the customer is existing customer for more than
three month.
 For their next purpose of buying products thy do not need to bring all the documents
which was given before
 Now simply Swipe, Sign and Buy any consumer durable or life style product of your
choice with your EMI (Existing Member Identification Card), only from Bajaj Finserv
Lending. No need to gather another set of documents or go through the process of
applying for a loan.
 The pre-approved loan amount on our EMI card depends on the loan amount assigned to
BFL at the time of we are taking a Consumer Durable or Lifestyle product loan. This loan
amount varies from Rs. 30,000 to Rs. 1,25,000/-
 We can use the EMI card at any of our partner retail outlets across 65 cities in India.

Features and Benefits of EMI card

Features and Benefits
The Bajaj finance EMI card is the innovation to the bring new technology to consumer durable
loansIt is very easy to communicate with customer.
 Pre-Approved eligibility:
The EMI card carries a pre-approved loan in our wallet. we can avail of our loan facility
to purchase any consumer durable & lifestyle product of our choice.
 Instant approval:
Simply Swipe, Sign and Buy with our EMI card. The moment we swipe our card, we can
get instant approval, subject to the amount pre-approved for you.
 Minimum documentation:
For using your EMI card, we don't want to give any documents. Our EMI card carries all
the necessary information required.
 Preapproved Offers:
As an existing customer, we can get exclusive preapproved offers from time to time
across a host of your partner retailers and manufacturers.
 Online Account Access:
Get all information about our loan like repayment track, interest certificate, payment
schedule etc through your digital customer portal. Just log in with our loan account
number and access whatever information you want about our loan.

How to Apply EMI card

How to Apply EMI card
 We can apply for our EMI card at the time of the purchase (or through your Customer
Portal login on Bajaj finance website, if we are an existing customer of consumer
durable loan or lifestyle finance). Our EMI card will come after the completion of three
EMIs.
 Buying your consumer durable / life style product:
We can sign up for our EMI card when we buy your consumer durable through any of
your retail partners. Our EMI card will be sent to you after 4 months of loan repayment,
subject to timely repayments of our loan installments.
 Online through Digital Customer Portal:
we can apply online anytime through your customer portal. Make an online payment of
Rs.249 and our EMI card will come with in 3 month

Eligibility and Documents for EMI card
EMI Card is issued only to our existing customers
Only the following documents are required for getting your EMI card:
 Open ECS mandate duly signed (Open ECS is same as other ECS with an extended
period so that we don’t have to give fresh ECS for your purchases in future.)
 One cancelled cheque
 KYC formalities (valid photo id proof and address proof)
Fees and Charges
All the customers have to pay is a onetime charge of Rs.249 (to enjoy lifetime membership of
EMI card).
Note: some customers are existing and new for Bajaj but they don’t
have the EMI card because EMI limit not there. The EMI limit is there for
new and existing they are Eligible for the EMI card

Difference between Bajaj finance and other
finance

Difference between Bajaj finance and other
finance
Bajaj finance:
 It is very friendly to customers.
 It providing good financial services to the customers.
 And the Bajaj providing 0% interest to the customers.
 And the Bajaj finance providing EMI facility for existing
customers.
 Simple steps for taking the consumer durable loans
 Spot approval without any delay and verification
 Flexible EMIS are offered to the customers
 They are offering low down payment
 Bajaj finance is now available any shopping malls in the 62 cities
with best performance.
 In Bajaj finance we require CIBIL score minimum 750 by this we
can come to know that he is regular customer.

In any other finance
 In any other finance we can apply for the loan with CIBIL score
less than 750 by this they may face the fraud customers.
 They also go for the verification process and approval may be
delayed.
 Approval process is very long.
 They will take the processing fee from the customer.
 The approval time is may be too high

FINANCE ANALYSIS OF BAJAJ FINSERV

Financial year 2013 compare to financial 2012
 The consumer finance was in FY 2013 PROFITABLE compare to FY 2012.
0
5,000
10,000
15,000
20,000
25,000
Consumer
finance
S M E FINANCE Commercial
lending
Total
FY 2013
FY 2012
%change
Deployment FY2013 FY2012 %change
Consumer finance 9,783 7,040 39%
SME finance 6,573 4,411 49%
Commercial lending 3,011 4,346 (31%)
Total 19,367 15,797 23%
(In crores)

Bajaj financial performance for FY 2013 and
the previous year
FY 2013 FY 2012 %CHANGE
Total income 3,111 2,172 43%
Interest and finance charges 1,205 746 62%
Net interest income 1,906 1,426 34%
Salary cost 245 190 29%
Marketing and other commissions 83 97 14%
Dealer incentives 100 64 56%
Recovery costs 120 89 35%
Loan loss and provision 182 154 18%
Depreciation 15 12 25%
Other expanse 289 218 33%
Profit before Tax 872 602 45%
Profit after Tax 591 406 46%
Earnings per share(basic) 135.69 107.72 26%
Earnings per share(diluted) 134.74 107.20 26%
Book value per share 676.41 492.16 37%
0
100
200
300
400
500
600
700
Profit after Tax
FY 2013
FY 2012
In crores

Bajaj finance store finance sale Report

Bajaj finance store finance sale Report
Column4
0
5
10
15
20
25
30
Column4
Column1
Column2
Date
Store
Name
Total
cash
sale Tickets
finance
sale
Logins
(Finance)
Billings
(finance) Percentage
20/05/14 ASR nagar 17.58 118 7.89 23 22 45%
20/05/14 Amsri 6 5 1.5 7 6 25%
20/05/14 Attapur 3 39 1.35 5 5 45%
20/05/14 Banjarahills 10.19 47 4.79 12 9 47%
20/05/14 Inorbit mall 11 89 1.69 7 5 15%
20/05/14 Kachiguda 3.8 55 1.5 4 3 39%
20/05/14 Vikrampuri 2.11 22 1.07 3 2 51%
20/05/14 kompally 6 52 2 8 10 33%
20/05/14 Kukatpally 10.13 83 2.7 7 6 27%
20/05/14 Malakpet 6.8 55 2.1 7 6 31%
20/05/14 Shivam 11.15 86 3.1 11 9 28%
TOTAL 87.76 702 29.69 94 83 34%
Finance slae report

1) Who are competitors of Bajaj Finance?
A) Reliance b) Tata capital C) Bajaj finance d) capital first
 I observed that so many customer says Reliance capital is Bajaj
competitor
0
5
10
15
20
25
30
35
40
Realiance captial
Tata captial
Bajaj finance
capital first

Customer opinion about the Bajaj finance
A) Good b) average c) bad d) below average
 I observed the customer was fully satisfied with the Bajaj finance. When customer was
taking loan from the Bajaj he was feeling was very good.
Because the Bajaj providing good service to the customers that’s why the customer was
given good marks to the Bajaj finance.
0
10
20
30
40
50
60
70
good average below
average
bad
opinion about the
Bajaj finance

Customers are satisfied with Bajaj schemes
A) Yes B)No
 The customers are fully satisfied with the Bajaj schemes
0
20
40
60
80
Yes
No
Column2

Limitations

Limitations
 The Bajaj finance will not give the Finance to city outside customers.
 And another problem is CIBIL score. To take the loan from the Bajaj finance the CIBIL
score must be 750 above not below. Comparing to other finance their CIBIL score was
650 above. I observed so many customers Their CIBIL score was 735, and some
customers 745 but there are not eligible for the loan due to the CIBIL score.
 Sometime online EMIs transactions are getting problems for the customers.BecauseSome
technical problems EMI transactions will not happen. This problem effect for customers.
Like cheque Bounces, I observed so many cases are happening on Bajaj finance.

SUGGESTIONS

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

CONCLUSION

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

BIBLIOGRAPHY

Bibliography
WWW.BAJAJFINSERVLENDING.IN
WWW.WIKIPEDIA.COM
ANNUAL REPORT 2012-2013
WWW.CONSUMERDURABLESECTORREPORT.COM

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