SIP Project Report by Vivek Goyal

1
Summer Internship Project Report
On
“A Study of Bajaj Finserv
Consumer Durable Loan Procedure”
A report submitted to
Asian Business School, Noida
As a partial fulfillment of Full time
Post Graduate Diploma in Management (PGDM)
(Approved by AICTE, Ministry of HRD)
Submitted to: Submitted by:
Mrs. Kavita Khurana Vivek Goyal
Asian Business School ABS/PGDM/JULY16/161
Noida Batch: 2016-2018
Asian Business School (ABS)
A2, Sector – 125, Noida
Website: www.abs.edu.in

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CERTIFICATE
(To be issued on letter head of organization provided training)
This is to certify that Vivek Goyal student of Asian Business School (ABS), Noida has
undergone Summer Internship in our company on “A Study of Bajaj Finserv Consumer
Durable Loan Procedure’’
The project work done by the candidate is original and has worked under my guidance. The
candidate has undergone training from 30th
April 2017 to 15th
June 2017 at our Bajaj
Finserv Office, Janakpuri East.
Stamp of the Organization Name of the guide Address
Date : Mr. Kunal Sahni
Sales Manager
Bajaj Finance Ltd.

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PROJECT GUIDE CERTIFICATE
GuideName: Asian Business School
Mrs. Kavita Khurana Plot A2,Sec-125,
Assistant Professor- Marketing Noida 201301
CERTIFICATE
This is to certify that the dissertation entitled is submitted to Asian Business School
by Vivek Goyal Reg. No. ABS/PGDM/JULY16/161.
The project has been done under my Supervision & guidance and the project
“A Study of Bajaj Finserv Consumer Durable Loan Procedure”
has not formed the basis for the award of any Degree or other similar title to any
candidate.
SIGNATURE
(Internal Examiner)

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ACKNOWLEDGEMENT
No task is a single a single man’s effort. Cooperation and coordination of various people at
various places go into the successful implementation. It is a great pleasure to have the
opportunity to extend my heart-felt thanks to everybody who helped me through the
successful completion of this project.
My first and foremost note of thanks to Mr. Ravee Sharma(Head of department Corporate
Resource Cell) for giving me the opportunities in the esteemed organization to undertake
such type of valuable project.
I would like to thank Mr. Kunal Sahni (Sales Manager) along with all members of Bajaj
Finance Ltd. For the valuable support give to me during the entire phase of the project.
I would also like to thank all the employees of Bajaj Finance Ltd. for their valuable support
given to me whenever I have needed.
I would like to express my gratitude to Mrs. Kavita Khurana (Assistant Professor,
Marketing) for providing me regular guidance, full cooperation, support and encouragement
throughout the Summer Internship Project.

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DECLARATION
This is the report of the project work entitled “A Study of Bajaj Finserv Consumer
Durable Loan Procedure” undertaken during 30th
April 2017 to 15th
June 2017, 1.5
months internship at Bajaj Finance Ltd. Vijay Sales, Janakpuri East
I hereby declare that this project report is being submitted by me to the ASIAN BUSINESS
SCHOOL know in partial fulfillment of the award of the diploma of Post Graduate Diploma
in Management. This Project is not submitted to any other organization/University/college
and is the outcome of my own work.
I was in regular contact with my faculty mentor (guide) and contacted several times for
discussing the project.
Date of project submission:
Student signature
Faculty Mentor’s comments
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………
Signature of faculty mentor
Name: Mrs. Kavita Khurana

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TableofContents
Chapter No. Title Page No.
Certificate from
Company/Organization
2
Certificate from Guide 3
Acknowledgement 4
Declaration from student 5
List oftable 8
List of chart 8
Executive Summary 9
I Introduction 10
1.1 Background OfThe Study 11
1.2 Organization Structure 11
1.3 Product Profile Of The
Company
12
1.4 Current Financial
Statements
12-13
1.5 Vision And Mission
Of The Organization
13-14
1.6 Future Plan Of The
Organization
14
1.7 Board Of Directors 15
1.8 Products Covered 16
1.9 Background OfThe Topic 16
1.10 What Is finance? 16-17
1.11 Who is consumer? 17
1.12 Consumer Finance 17-18

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1.13 Consumer Durable Finance 18
1.14 Need Of The Study 22
1.14 Scope OfThe Study 23
1.15 Objectives Of The Study 23
II Research Methodology 24
2.1 Research design 25
2.2 Sources ofdata 25
2.3 Questionnaire 26
2.4 limitation 27
2.5 Keyconcept 28
III Data Processing and
Analysis
29
Analysis and interpretation 30-40
Customer feedback
Deployment and
41-42
Deployment and trend
performance explanation
43-46
Loan procedure and related case
study
47-59
Diversified business model 63-67
IV Findings 68
V Conclusions 69
VI Recommendations 70
Bibliography 71
Appendices /Annexure 72-73

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List of tables
Chapt
er No
Title Page No.
1 Financial Statements 12-13
2 Scheme Chart 28
3 Performance Trend 45
3 Distribution Performance
Geographic
Wise
65
List of Charts
Chapt
er No
Title Page No.
1 Organization structure 11
3 Questionnaire 30-40
3 Deployment chart 42
3 Illustration chart 60
3 Business model 63-64
3 Distribution map 65-66

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EXECUTIVE SUMMARY
I have taken marketing as a specialization with the title of “A STUDY OF
BAJAJ FINSERV CONSUMER DURABLE LOAN PROCEDURE” The
objective behind this project was to primarily focus on Modus Operandi of
Bajaj Finance for Finance of Consumer Durable products. This required a
firsthand experience in understanding end to end process flow for loans
processing to payment disbursement. I was working in Vijay Sales located in
Janakpuri East, Delhi. I have collected the first hand data as well as
secondary data from Books, Company Annual Report & internet Articles etc.
Bajaj Finserv was the first company who started purely consumer durable
loan segment.
I also focused on the surrogates required for loan approval, documents
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 now days what are
the approach and preferences of the customer towards consumer durable loan
product and how to solve customer difficulties regarding 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.

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1.1 Background of the study
Bajaj Finserv was formed in April 2007 which is situated in 4TH Floor, Bajaj
Finserv Corporate Office, Pune-Ahmednager Road Viman Nagar, Pune
411014, and 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. 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
1.2 ORGANIZATION STRUCTURE
Figure no 1.1 organization structure

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1.3 PRODUCT PROFILE OF THE COMPANY
Figure no 1.2 company profile
1.4 CURRENT FINANCIAL STATEMENTS
Particular FY2017 FY2016 CHANGE
in(%)
Total
income
7384 5418 36
Interest and
finance
2927 2248 30

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charges
Net interest
income
4457 3170 41
Salary cost 630 451 40
Marketing
commission
96 61 57
Dealer
incentives
290 208 39
Recovery
cost
233 204 14
Loan loss
and
provision
543 385 41
Depreciation 56 36 56
Other
expenses
644 468 38
Profit before
tax
1965 1357 45
Profit after
tax
1279 898 42
Earnings Per
Share (EPS)
Basic, In
rupees
242.30 179.94 35
Book Value
Per Share,
In rupees
1386.87 959.93 45
Figure no 1.3 financial statements
3
1.5 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.

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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.
1.6 Future Plan of the Organization
Application for Banking License:
Bajaj Finance may have failed to get a banking license in the first round last
year. The company has not given up its hope of becoming a bank. Jain says
whenever the Reserve Bank of India invites applications for new licenses, Bajaj
Finance would be interested. For that Rajiv Jain has made 5 years road map

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1.7 BOARD OF DIRECTORS
Rahul Bajaj
Chairman
Nanoo Pamnani Sanjiv Jain
Vice Chairman Managing Director
Rajeev Jain
Chief Executive Officer
Managing Director and CEO

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1.8 PRODUCTS COVERED
Almost all brands of Consumer Durable products like TV, refrigerator so on.
All lifestyle products
IT products
CROSS SELL:
Insurance,
extended warranty
5
LATEST Other products covered under EMI option
Apparels
Watches
Dentist
Food category
Big bazar
1.9 BACKGROUND OF THE TOPIC
1.10 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

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benefits from additional investment improved economic condition usually
lead to more capital projects and increased personal investing.
New projects require financing, which usually leads to a large number of
loans. “Finance” is often defined simply as the management of money or
“funds” management. Modern finance, however, is a family of business
activity that include the origination, marketing, and management of cash and
money surrogates through a variety of capital accounts, instruments, and
markets created for transaction and trading assets, liabilities, and risks.
Finance is conceptualized, structured, and regulated by a complex system of
power relation within political economies across state and global market.
1.11 Who is consumer?
An individual who buys products or services for personal use and not for
manufacture or resale. A consumer is someone who can make the decision
whether or not to purchase an item at the store, and someone who can be
influenced by marketing and advertisements. Any time someone goes to a
store and purchases a toy, shirt, beverage, or anything else, they are making
that decision as a consumer.
Under the consumer protection act 1985 ‘‘any person who buy any goods for
consideration, who include a person who obtain such goods for resale or for
any commercial purpose”.
1.12 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

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instead of waiting for years of savings to accumulate. For manufacturer,
consumer finance stimulates demand and brings down inventories. For
dealers it is one type of sales booting. For finance company it is profit
generation.
Consumer finance has to do with the lending process that occurs between the
consumer and a lender. In some instances, the lender may be a bank or
financial institution. At other times, the lender may be a business that offers
in house credit in exchange for the business of the consumer. Consumer
finance can include just about any type of lending activity that result in the
extension of credit to a consumer.
1.13 Consumer Durable Finance
“Consumer durable finance means to provide the finance on the consumer
durable product like, washing machine, TV etc. it is known as consumer
durable finance”
The consumer durable finance provide the 0% interest on durable product to
the consumer, This gives customers another compelling reason to opt for 0%
interest Consumer Durables Finance for their durables purchases. Consumer
durables finance schemes are generally available at the dealer location (point
of sale) or the showroom. The beneficiaries are not just customers – lenders,
manufacturers, and retailers too benefit. Manufacturers gain from the
resultant boost to sales and increased consumer preference towards high-
margin products. Financing schemes enable customers, especially those with
lower income levels, to use future income streams to buy consumer products
upfront and pay in installments over a period.
The most popular finance scheme prevalent in the market currently is the
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

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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 (Easy Monthly Installments)
 Bajaj Finserv Lending launched an innovative product in 2011-12 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.
 Tracking methodology of customer is very smooth (by using EMI
card

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Advantages of EMI card
 The Bajaj finance providing good opportunity to customers by offering EMI card
to the customers. Card holders customers are not requiring to bring the all
documents also get the best scheme provided by the Bajaj.
 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 they 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.
Advantages of consumer durable loan
 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 repay 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 (subject to his credit
performance).
 The Bajaj finance started providing 0% finance options only with
Bajaj Finserv Lending. (select schemes are interest bearing)
 The Bajaj finance also offers you special flexible repayment options.

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 The customer can get approval for a loan anywhere between 3 to 15
minutes.
 Tracking methodology of customer is very smooth (by using EMI
card).
 Customer can take Extended Warranty from Bajaj which can be
convert into EMI’s and secure his product.
Features and Benefits
The Bajaj finance EMI card is the innovation to bring new technology to consumer
durable loans. It 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.

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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.349 (to enjoy lifetime
membership of EMI card).

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1.14 Need for study
 In the urban areas 50% of people are taking the loan from Bajaj
finance and other finance when they purchase consumer Durable product due
to EMIs facility.
 The customers are spending more for consumer durable products
compare to before when EMI was not in market.
 CD loan also create business opportunity to its other business model.
 The customers who are not able to pay the total amount of the product
at the time of purchase but dealer gets paid for his product within 5-7 days
whereas consumer pay money in average 8 month without paying anything
extra.
Bajaj is playing the key role on consumer durable loans. The Bajaj finance
was observed that they are providing good financial facility to the customers.
1.15 Scope for study
Current position is dominant by Bajaj Finserv in consumer loan but now
many competitors entering in the market which reducing new customer
penetration of Bajaj. So how Bajaj diversified its business model in consumer
loan with new products/services and offer. Specially HDFC bank who
provide the benefit of credit card to the customers.
1.16 Objectives of the Study
 To know awareness of CD loan among consumers
 To find benefits of EMI card for customers
 To find reason behind customer preferences toward Bajaj Finance
 To know how the new competitors are performing compared to Bajaj

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CHAPTER – II
RESEARCH
METHODOLOGY

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2.1 Research Design
Research design is a plan of action, a plan for collecting and analyzing data in
an economic, efficient and relevant manner
Type of Research
Descriptive Research:
Descriptive research can be used to accomplish a wide variety of research
objectives. Descriptive research includes Surveys and fact-finding enquiries
of different kinds. The main characteristic of this method is that the
researcher has no control over the variables; he can only report what has
happened or what is happening.
2.2 Sources of Data
The study is descriptive in nature, makes use of both type of data i.e. Primary
and Secondary.
Primary data:
The data that is collected first hand by someone specifically for the purpose
of facilitating the study is known as primary data. So in this research the data
is collected from respondents through questionnaire.
Secondary data:
I had used secondary data like the annual reports of the company, working
experience, Books

26
Articles, Magazines, Company website, Research papers, MBA projects,
Internet.
2.3 QUESTIONNAIRE DESIGN FORMULATION
Under this method, list of questions pertaining to the survey are prepared for
consumers of Bajaj Finserv in Vijay Sales at Janakpuri East, Delhi.
Questionnaire has structured type questions as well as unstructured type
questions. Structured objective type questions are prepared for the
respondents with fixed response categories. Some of the questions are of
multiple-choice type. The questions have more than one alternative.
Questionnaire: A questionnaire consists of a set of questions presented to
respondent for their answers. It can be Closed Ended or Open Ended
Open Ended: Allows respondents to answer in their own words & are
difficult to Interpret and Tabulate.
Close Ended: Pre-specify all the possible answers & are easy to Interpret
and Tabulate.
TYPES OF QUESTION INCLUDED:
DICHOTOMOUS QUESTIONS
which has only two answers “Yes” or “No”?
MULTIPLE CHOICE QUESTIONS
where respondent is offered more than two choices.
IMPORTANCE SCALES
A scale that rates the importance of some attribute.

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RATING SCALE
A scale that rates some attribute from “highly satisfied ” to “highly
unsatisfied “ and “very inefficient” to “very efficient” Analysis of Data:
The researcher analyses the data with the help of Case Studies, Percentage,
Tables, and Graphs.
SAMPLE SIZE
Sample size of respondent 200.
2.4 Limitation of the Project:
The geographical area was very limited so the results are not precise
reflection of the aggregate behavior.
1. The study is restricted to consumer durable loan in Vijay Sales only.
2. Sometimes customer may be biased / dissatisfied because of restricted
policies of EMI procedure.
3. Loan procedure of other retail outlet can be different, which is not
taken into consideration.
4. As the market is very huge, it was not possible to cover all area.
5. The data collected may not be representation of entire population.
2.5 Key Concepts:
 Lending:

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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:
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
in 8 months.
in 12 months. And it is long term scheme.
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.
Figure no 2.1 scheme chart

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CHAPTER – III
DATA PROCESSING AND
ANALYSIS

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1. Are you Aware About Consumer Durable Loan
Availability?
Interpretation
Above figure clearly shows that how Bajaj company succesfully urges the
cosumers about Consumer durable loan. It is considered important because
company started this business when many big loan firm closed down its
business for consumer loan because of recession in 2008-09 whereas Bajaj
were able to assess the future demand and now you can see how in above
chart that how this industry is booming.
yes
92%
no
8%

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2. Have you ever taken conumer durable loan?
Interpretation
Because of Consumer Durable loan facility customer can think to buy any
durable product with latest technology easily. Which wasn’t the case earlier
when they have to think twice before buying tv, fridge etc. end of 20th
century
only higher middle class and above people had all that CR Tv, refridgerator,
air condtioner etc. but above data shows Consumer Durable loan created not
only desire but also created willingness among the consumer to purchase
products.
yes
70%
no
20%
not sure
10%

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3. Do you own EMI card of Bajaj Finserv?
Interpretation
There are many reason that why Bajaj Finserv is most succesful in lending
industry. One of the most important part is its vastly higher technology and
EMI card idea was one of them. which helping them to retain their 80-90%
customer. also almost 60% Bajaj customer has EMI card. other those are not
sure most of them might have card but because of they don’t often buy
products they dont carry or misplaced it.
yes
58%
no
28%
not sure
14%

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4. Which Payment Mode You Feel Is Convenient To Buy
Consumer Durable Products?
Interpretation
By seeing above figure its seems customer more prefer to buy products on
cash but its only in numbers. It was found that 30% customer willing to buy
product throgh Bajaj Finserv While asking to another set of consumers who
were quite educated in terms of value for money by considering all the points
they highly recomanded in favour for Emi facility.
bajaj emi
30%
cash
45%
credit crad
20%
all of above
5%

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5. Scale Effectiveness Of Bajaj EMI Card
Interpretation
Response from customer for utility of EMI card says its play vital role while
taking Consumer Durable loan. More people are stuck to 4 rating because of
it certain condition are attach to it. Otherwise it is very much accepted and
effective by cosnumers.
1
2
3
4
5
10 15 40
105
30

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6. Which Finance Company You Will Prefer For Consumer
Durable Loan?
Interpretations
Bajaj Finserv has fast process compare to competitors and also providing
good after sale service throgh Bajaj App.which conumer can access anwhere
and do all the transaction like Loan Account Access, Change Address, Pre-
Closer Of Loan, Complaint Logs etc.
bajaj
62%
capital first
23%
Hdfc
10%
other
5%

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7. Which Section Of Consumer Taking Loan?
Interpretations
Above figure is showing that still Bajaj Finserv is growing more than
50%.which indiactes there are many oppourtunity coming up for Bajaj as in
today time.consumers with High Per Capita Income has more awareness
about Consumer Durable loan.
EXISTING
45%
NEW
55%

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8. Most Preferable Scheme Opted By Consumer?
Interpretations
12/4 is the most desirable scheme which most of the customer like to take.
This scheme doesn’t carry any processing fee. Promotional scheme often
carry processing fee as resulting to least prefer by cutomer And more
awareness about consumer durable loan.
124
62%
102
23%
184
10%
promotional
5%

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9. 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

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10. 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 very good.
Because Bajaj is providing goods & services 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

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11. 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

41
Customer feedback
Here is the feedback of customer from different bank account holders and
their opinion about Bajaj Finserv service after and before.

42
3.1 Gross Loan Deployment of Bajaj Finserv

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Figure no 3.1 deployment chart

44
Figure no 3.2 business performance year by year

45
Figure no 3.3 performance trend
Explanation:
Consumer Durable business:
Continued its strong momentum and disbursed 667K cases in Q2 (YOY
growth of 37%). Extended summer and delayed monsoon with proactive
capability builds, geo expansion and category extensions have helped deliver
solid growth momentum in first half.
Lifestyle Finance business:
Disbursed 82 K accounts (241 % growth) which was highest for any quarter
driven by Digital products. The tie-ups with leading manufacturers like
Samsung, Apple, Sony and leading national & regional wireless chains
enabled the business register this growth. However furniture financing
business grew only by 25% YOY due to de-growth in the furniture industry.
Making structural changes to bring in dedicated focus.

46
Cross sell:
Momentum across Lending and Fee products remained strong.
Salaried personal loans business:
Continued to grow well with healthy credit performance. Digital channels
now contribute 16% of new originations.
Rural Lending business:
Is tracking ahead of plan and the business has started to be profitable.
Company continues to increase its footprint in a measured manner. MSME
rural lending launch planning has been initiated and is expected to go live by
April 15.
Business loans business:
continued to grow very well with strong credit performance. Professional
business loans now contribute to 15% of Business loans origination.
Mortgage business:
Remained in a consolidation mode post May 2014 incident. Specific set of
initiatives are in progress to re-energize the business.
LAS business:
Had an excellent quarter supported by new product & renewed channels
strategy.
Construction Equipment business:
is now down to 320 Crs and is in remedial mode. The portfolio is reducing by
25 crs a month and will fully run off by September 2015.

47
Interpretation:
The above graph shows loan deployment of the year, as per the sectors, the
growth of the consumer finance sector is more rapidly as compared to the
other SME finance and commercial lending sector.
Cross selling also boost because of business expansion of consumer durable
including lifestyle product.
The loan process for CD loan (including life style product)
Required documents:
The following are the eligibility criteria to apply for a loan:
o If you are a salaried person your age should be between 21 years to 60
years.
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

48
o If you are Self Employed your age should be between 23 years to 65
years.
All above documentation doesn’t mean customer would get loan 100%. Case
study will clear all these possibilities.
CASE STUDY
Case No.1
Name of the Applicant: Mr. Ranjeet Kumar
Age : 35 year
Permanent Address: Mahatma Gandhi Road
Nehru Nagar, Near Rajouri Garden
New Delhi-110021
Residential Address: Gulmohar Park, ITI Road
near ICICI Bank, Aundh
Pune -411007
Occupation: Service
Company Name: SunGard, pune
Salary: 1, 00,000/-PM
Purchase of Products
I.Samsung LED TV
II.Samsung Washing Machine
Cost of Products
I.Rs.40,000
II.Rs.35,000

49
Document Required for Loan
I.Address Proof:-Bank Statement
II.ID Proof: - Pan Card or Voting Card or Driving License.
III.Income Proof:-SBI Credit Card (Platinum)
Problem Address Proof
Mr.Ranjeet Kumar has the address proof but this Address Proof of other city,
so as per loan requirement address proof should be of current city
Table No.3.4 Case Study 1
Particular Eligibility criteria
for loan approval
Applicable
for Loan
Occupation Service 
Company
Name
SunGard 
Salary Rs.9,60,000 PA 
House Rented 
Place(Stay) Aundh 
Document
Required
Address Bank Statement 

50
Solution:-
a. Calculation of EMI and Down payment:
Scheme-: 12/4 (Ref.Table No.3.1)
Cost of Product-: Rs.75, 000
Down payment -: Rs.25, 000 (Rs.75, 000/12*4)
EMI-: Rs.6250*8 Month= Rs.50, 000
b. How to Approve the Loan:
I.Minimum Required Salary for taken a loan –Rs.8000/-and Above, So
Mr.Ranjeet Kumar has Rs.80000/-PM Salary so he is applicable for loan.
Proof
ID Proof PAN Card ,Voting
Card

Credit Card SBI Credit Card
(Platinum)

Products
Samsung 40’
LED TV
Rs.40,000 
Samsung
Washing
Machine
Rs.35,000 

51
II.As an address proof for taken a loan it is must to Mr.Ranjeet Kumar to submit
either Rent agreement or credit card statement which is on current city
address.
III.As an ID proof requirement he should be provide voting card or PAN Card or
Passport.
Case No.2
Name of the Applicant: Ms.Smita Badiyani
Age: 26 year
Residential Address : Bramha Village, Behind Jyoti Restaurant,
near Bharat Petrol pump, Kondhwa
Pune -411048
Occupation: Service
Company Name: Infosys, Pune
Salary: 50,000/-PM
I.LG Refrigerator
Cost of Products
I.Rs.36,000
I.Address Proof:-Rent Agreements
II.ID Proof: - Pan Card or Voting Card or Driving License.

52
And marriage Certificate.
III.Income Proof:-3 Month Bank Statement.
Problem ID Proof
As per the documents require for the approval of loan, Ms.Smita
Badiyani should submit the ID Proof of she’s current name.
Table No.3.5: Case Study 2
Particular Eligibility
criteria for
loan approval
Applicable
for Loan
Company Name Infosys 
House Rented 
Place Kondhwa 
Document
Required
Address Proof Rent Agreement 
ID Proof Marriage
Certificate

Bank Statement 3 Month bank
statement

Product
LG Refrigerator Rs.36,000 

53
Solution:
Scheme-: 12/4(Ref.Table No.3.1)
Cost of product-: Rs.36, 000
Down payment-: Rs.12, 000 (Rs.36, 000/12*4)
EMI-: Rs.3000*8 Month = Rs.24, 000
b. How to approve the Loan:
I.She has the 50,000 PM salary; the minimum salary should be 8000 PM, so
she is applicable for the loan.
II.As per the requirement of loan approval document, if lender leaves on the
Rent bases then he or she should submit the Rent agreement which would be
on Rs.1000/- stamp paper. This document criteria fulfilled by Ms.Smita
Badiyani.
III.For the ID Proof required the PAN Card, Voting Card and Driving Licenses.
Ms. Badiyani has the PAN Card but problem is that she’s is not having the
current name i.e. after marriage on the PAN Card. For solving this problem,
we have taken the Marriage Certificate along with PAN Card Copy.
IV. For the Income Proof required Credit Card, or Existing Customer or any
bank loan as well as 3 Month Bank Statement, So she have the 3 Month Bank
Statement from Feb to May, and also her 780 score in CIBIL records.
Case No.3
Name of the Applicant: Mr.Anurag Kasat
Age: 45year
Residential Address: Shree Niwas, ITI Road,
near Croma Showroom,aundh
Pune -411007
Occupation: Service
Company Name: Mahindra and Mahindra

54
Salary: 50,000/-PM
Purchase of Products I Sony LED TV
Cost of Products I Rs.52, 000
I.Address Proof:-Electricity Bill, Telephone Bill, Passport
II.ID Proof: - Pan Card or Voting Card or Driving License or Passport
III.Income Proof:-HDFC Credit
Problem System Error
Mr. Anurag Kasat has all the required documents but the actual problem in
system, the system shows the Bajaj Dedupe Error it means there is problem in
the loan database of Bajaj Finserv lending.
Name of the applicant:-Mr.Anurag Kasat (Existing Customer)
criteria for
loan approval
Applicable
for Loan
Company Name Mahindra and
Mahindra


55
House Own 
Place Aundh 
Document
Required
Address Proof Passport 
ID Proof Passport 
Credit Card HDFC Bank 
Product
Sony LED Rs.52,000 
Solution:-
Scheme: 10/0 (Ref.Table No.3.1)
Cost of product: Rs.52, 000
Down Payment: Rs.250 (Processing Fess)
EMI: Rs.5200*10 Month=Rs.52, 000
b. How to approve the loan:
I.Mr.Anurag Kasat has the Existing Customer of Bajaj Finserv Lending, for the
Existing Customer can pay the down payment through cash as well as credit
or Debit Card. So Mr.Kasat pays the down payment by cash

56
II.Due to the system Error the loan has been rejected, When the Mr.Kasat has
produced the copy of NOC to the Bajaj Finserv Lending. Then the Company
sorts out his problem by updating the previous loan history of Mr.Kasat.
III.For reflecting the database changes system required the duration of one
month so after reflecting the changes his loan get approve
Case No.4
Name of the Applicant: Mr.Akshay Kadam
Age: 27 year
Residential Address: Swapnagari society, ajmera
Near H.A.Ground Pimpri,
Pune -411018
Occupation: Service
Company Name: Alfa Laval
Salary: 30,000/-PM
I.Sony LED TV
I.Samsung Washing Machine
Cost of Products
I.Rs.42,000
II.Rs.30,000
I.Address Proof:-Electricity Bill, Telephone Bill, Passport
II.ID Proof: - Pan Card or Voting Card or Driving License or Passport
III.Income Proof:-ICICI Bank Credit Card
Problem ID Proof Name

57
Name of Mr.Akshay kadam on the credit card and Pan Card is mismatch
i.e.Akshay Kadam on credit card and Akaash Kadam on PAN Card.
Name of the applicant:-Mr. Akshay Kadam
criteria for
loan approval
Applicable
for Loan
Company Name Alfa Laval 
House Own 
Place Pimpri 
Document
Required
Address Proof Electricity Bill 
ID Proof Pan Card 
Product
Sony LED Rs.42,000 
Samsung
washing
Machine
Rs.30,000 
Particular Sony Samsung

58
Solution:
How to approve the Loan:
I.Mr. Akshay Kadam has the entire document i.e. Address Proof, ID Proof, and
Income Proof, but he is only having the problem with ID Proof.
II.For solving the ID Proof problem we have taken the Govt. Gadget Letter
from him.
Case No.5
Name of the Applicant: Mr. Avinash Thite
Age: 50 years
Permanent Address: Karve Road, near
Dashabhuja Ganesh Temple,
Kothrud Pune-411004
Occupation: Own Business
Company Name: Omkar Trading
I.Sony LED TV
II.Sony Home Theater
Scheme 18/4 12/4
Cost of
product
Rs.42,000 Rs.30,000
Down
Payment
Rs.9,336
(Rs.42,000/18*4)
Rs.10,000(Rs.30,000/12*4)
EMI Rs.2,334*14
Month=Rs.32,676
Rs.2,500*8
Month=Rs.20,000

59
Cost of Products
I.Rs.52,000
II.Rs.35,000
I.Address Proof:-Electricity Bill, Index-II, Telephone Bill.
II.ID Proof: - Pan Card, Voting Card, Driving License. And Passport.
III.Income Proof: - Credit Card, Any Bank Loan.
Problem Case rejected due to less CIBIL Score
CIBIL Scores Required Criteria:-
Minimum CIBIL Score required for loan approval is 750 or more; Mr.
Avinash Thite has 710 CIBIL Score, His score below the criteria so loan has
been rejected.
4.2.1: Application Process for Loan Approval:
 First pitch the customer,after pitching the customer the next process is
to explore them overall loan process of 0% interest sceheme .Once the
customer is agreed, then ask the customer for the required documents like ID-
proof, Address proof i.e voter ID,driving licence,aadhar card and cancelled
cheque etc to approve the loan.After compliting the submition procedure of
documentation,the next step is to decide the surrogate of the customer.
 Customer should be fill up the application form,then the details of
customer get stored by the executives in to the sales force softwear.

60
 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.

61
Figure no 3.9 whole processes

62
Surrogates Required for Loan Approval:
There are three types policy are as below:
A. WOW Policy
B. WOW Lite Policy
C. WOW Extension Policy
WOW Policy:
WOW Policy mostly used for those customer who are in the listed
companies, have the credit card, as per the rule of company the maximum
Loan to Value(LTV) 83% to 90% it depend on the customer document.
Following are the Surrogates included in that Policy:
2.1 Credit Card (Max LTV 83% up to 125000)
2.2 Listed Companies (Max LTV 90% up to 100000)
2.3 RC of Vehicle (Max LTV 83%)
2.5 Existing Customer (Max LTV 90% up to 50000)
2.6 CIBIL Score (Max LTV 90% up to 125000)
2.7 Salaried (Max LTV 90% up to 125000)
2.11 Instant
WOW Lite Policy:
WOW Lite Policy used for those customers whose net exposure is up
to25000 to 35000.and as per the company rules the maximum Loan to Value
(LTV) is 83% for all surrogates.
Following are the Surrogates included in that Policy:
3.1 Credit Card (Max LTV 83% up to 35000)
3.2 Listed Companies (Max LTV 83% min salary 7500)
3.3 RC of Vehicle (Max LTV 83% up to 25000)

63
3.5 Existing Customer (Max LTV 83%)
3.6 CIBIL Score (Max LTV 83%)
3.7 Salaried (Max LTV 90% Min net salary 7500)
Figure no 3.10 amount limit

64
Diversified lending business model
2014-15
2013-14
2012-13
2011-12
2010-11
2009-10
2008–09
Figure no 3.11 diversification
Consumer Personal loan Insurance EMI Credit Card small product without EMI
Loans + Cross-sell + services + card + Partnership + IT product + card
Durables &
2-wheelers
+
Historical
business
model 3
data TAT.
No cross sell
100%POS
Link up.3
Min-TAT
Started
PL.
cross sell
to
existing
Good
customer
s
Launched
POS ins.
cross
sell.
Launched
project
3sec-TA.
Launched
post sale
insurance
cross sell.
Launch
EMI card
– 3
2nd
TAT
Launch
co brand
Credit
card.
Lifestyle Launched
virtual
card
Consumer finance
Cross-sellAcquisition
Competitive Advantage
• Data Mart and Cross sell capabilities
• Customer Lifecycle Management
• Low ticket - high volume transaction domain
Specialization

65
Interpretation (figure 3.11)
Bajaj Finserv took gutsystep in 2008-09 to invest in consumer loan business where many
giants credit organization was withdrawn from consumer loan business as a consequence
ofaffectedbycrisisdueto poorcredit recordin2008-09.
Then every year they launched unique and effective ideas products services and highly
sophisticated technology to increase sales. The key thing was Bajaj integrated its business
verynicelyso risk factoralwaysdividedamong businessunits.
In2102-13 they made customer friendly systemwhere customer canuse his emi card and
gets approved loan in few minutes which was highly successfully model for them. Now
EMIcardisthe mainfactorincustomerretentionaswellas theirservices.
Bajaj Finserv disburse files gets double when they started providing loan on lifestyle
productslike(smallapplianceswaterpurifier,allit products)

66
Strong Distribution Reach
F
i
g
u
r
e
n
o
3
.
1
2
g
e
o
g
r
a
p
h
i
c
m

67
Figure no 3.12 performance
Interpretation (figure 3.12)
Distribution is also one of the important factors that’s playing key role in Bajaj finserv
success. They quickly realize the value of placing the product. In 2010 to 2015 era where
CD loan demand was increasing that time Bajaj had executive in each and every store,
merchant,shopswho aredealing indurableproducts.
You can see that how the distribution were increase in between 2010 to 2015 all just
becauseofperfect staffingandreaching byterritory.

68
Chapter - IV
FINDINGS
 Bajaj Finserv became necessary for almost every consumer who wants
to purchase product on credit.
 Other competitors are also slowly developing and creating business for
them. Which has been hurting Bajaj Finserv cross selling opportunity.
 Bajaj Finserv has been rapidly growing in integrated technology. Virtual
card, Retail Finance is result of that.
 some potential customers are diverting to competitors due to low cibil
score although they had good current record
 Some EMI card holder get frustrated when they unable to get same
process outside of city.
 Some customers are complaining that in some of retail outlet Bajaj
Finserv is taking processing fee like kings electronics, Sargam,
Snehanjali Vijay Sales.

69
Chapter– V
CONCLUSION
 Bajaj Finserv has very strong sales team in loan sector because it’s very
challenging task to satisfy educated customer.
 The project gives an insight to the awareness rate in the population of
thane city.
 Due to Bajaj Finserv lending, credit card sector get booster people
started to show willingness to disposal of their income
 Bajaj Finserv now felling a pinch from their competitor specially by
capital first,
HDFC

70
Chapter-VI
RECOMMENDATION
 Bajaj should revise their policy regarding cibil score.
 Bajaj should provide loan to EMI card holder from outside the city at
minimal document i.e. as per available document with consumer.
 They must increase their sales force on Festivals like diwali,
gudipadwa, independence etc which can be give them 20-25% growth in sale
at store. Because insufficient manpower at many stores leading to other
finance company taking advantage or consumer moving to other finance.
 Educate the customer that everywhere Bajaj Finserv process is
standardized. some dealer has own policy so they charge processing.
 Educate the customer about Bajaj technology like Bajaj app, online
approval which are USP of Bajaj product and by all these customer has no
need to go anywhere for his problem it could be resolved by sitting at home
only.

71
BIBLIOGRAPHY
WEBLIOGRAPHY
 https://www.bajajfinserv.in/default.aspx
 https://www.bankbazaar.com/reviews/bajaj-finserv/consumer-
durable-loan.html?reviewPageNumber=5
 http://www.managementparadise.com/sushildesai/documents/14470/a
-project-report-on-loan-procedure-of-consumer-durable-product-at-bajaj-
finserv-lending/
 http://www.managementparadise.com/Ahanablueeye/documents/2095
7/report-on-consumer-durable-loans/
BIBLIOGRAPHY
 Sushil mahadev desai, A Project Report on Loan Procedure of
Consumer Durable Product At Bajaj Finserv Lending, Oct 16, 2013
 Ahana pal, Report on Consumer Durable Loans, Sep 6 2014

72
ANNEXURE
1. Are You Aware About Consumer Durable Loan Availability?
a) Yes
b) No
2.Have You Ever Taken CD Loan?
a) Yes
b) No
c) Not sure
3.Do You Own EMI Card Of Bajaj Finserv?
a) Yes
b) No
c) Not sure
4. Which Payment Mode You Feel Is Convenient To Buy Consumer
Durable Products?
a) Bajaj
b) cash
c) credit card
d) any of above

73
5.Scale Effectiveness Of Bajaj EMI Card
low
1
2
3
4
5
high
6.Which Finance Company You Will Prefer For Consumer Durable
Loan?
a) Bajaj
b) Capital first
c) HDFC
d) other
7.Which Consumer Are Taking Loan?
a) existing
b) new
8.Most Preferable Scheme By Consumer?
a) 12/4
b) 10/2
c) 18/4
d) Promotional

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