INTRODUCTION OF MAHINDRA FINANCE

Empowering potential. Transforming lives. Two decades ago, Mahindra and Mahindra Financial Services Limited (MMFSL) commenced its journey in the rural non-banking finance industry. And with that was born a vision to transform rural and semi-urban India into a self-reliant, flourishing landscape. Since then, we have come a long way, empowering millions of ambitious individuals with personalised finance for a wide range of vehicles, home development requirements and many other diverse endeavours all to help them live their dreams and Rise in life. At Mahindra Finance, we are guided by a firm belief in people, their dreams, and their potential to achieve those dreams. Hence, our socially inclusive business model facilitates loans to customers based not on their current financial status, but their future earning capacity. This philosophy has instilled a sense of confidence in the minds of rural and semi-urban India a confidence that allows them to believe that no dream is too big. Today, as one of the leading non-banking finance companies, we are proud to have touched over 2.5 million such lives. During the course of our journey, apart from emerging as the top tractor financer in India, we have constantly strived towards developing skill sets of the local population. Which is why, we provide employment to over 13,000 people in over 650 branches across India. This not only ensures equal growth opportunity for all, but also enables us to serve our customers better through local understanding and expertise.

So be it a humble farmer or a budding entrepreneur we are committed to empower every individual with resources to help their dreams see the light of day. The Mahindra Group focuses on enabling people to rise through solutions that power mobility, drive rural prosperity, enhance urban lifestyles and increase business efficiency. A USD 16.2 billion multinational group based in Mumbai, India, Mahindra employs more than 180,000 people in over 100 countries. Mahindra operates in the key industries that drive economic growth, enjoying a leadership position in tractors, utility vehicles, after-

market, information technology and vacation ownership. In addition, Mahindra enjoys a strong presence in the agribusiness, aerospace, components, consulting services, defence,

energy, financial services, industrial equipment, logistics, real estate, retail, steel,commercial vehicles and two wheeler industries. In 2012, Mahindra featured on the Forbes Global 2000 list, a listing of the biggest and most powerful listed companies in the world. In 2013, the Mahindra Group received the Financial Times 'Boldness in Business' Award in the 'Emerging Markets' category.

VISION AND MISSION

Our Vision To be a leading financial services provider in semi-urban and rural India. Our Mission To transform rural lives and drive positive change in the communities. Our Vision: "To be India's no.1 Insurance Broker in revenue by 2015." Strategic Partnership During the year under review, Mahindra Insurance Brokers Limited (MIBL) has entered into Definitive Agreements with Inclusion Resources Private Limited (IRPL), a subsidiary of LeapFrog Inclusion Fund (LFIF), incorporated in Singapore and Mahindra & Mahindra Financial Services Limited (MMFSL), its parent company to expand the Company's services to consumers in rural and semi-urban areas of India, by bringing in IRPL's international knowledge and experience, especially in using low cost technology solutions to provide insurance in mass markets. In addition, given IRPL's expertise and association in reinsurance globally, IRPL would help the Company to connect with various global reinsurers to assist in the Company's reinsurance broking business.

HISTORY
The history of Mahindra Finance has been one of continuous ascent where our effort to empower our customers has been a constant element. A strong set of values, an evolved lineage and a group of highly motivated individuals is what we started with. What followed was a series of events that helped us grow from strength to strength. And two decades that witnessed many dreams across the nation see the light of day. Come, walk with us through the journey of time and take a glimpse of how Mahindra Finance grew with all those who believed in it. We were incorporated on January 1, 1991 as Maxi Motors Financial Services Limited and received certificate of commencement of business on February 19, 1991. The name was changed to Mahindra & Mahindra Financial Services Limited on November 3, 1992. We are registered with the RBI as an NBFC with effect from September 4, 1998 under Section 45IA of the Reserve Bank of India Act 1934.

Key Events in our business history

Calendar Year Event 1993 Commenced financing of M&M UVs 1995 First branch opened outside Mumbai, at Jaipur 1996 Commenced financing M&M dealers for purchase of tractors 1998 Launched pilot project for retail tractor financing 1999 Commenced tractor retail financing in rural and semi-urban areas 2001 Total Assets crossed Rs. 10 billion 2002 Commenced financing of non-M&M vehicles Received Tier II debt from International Finance Corporation Our first securitisation transaction of Rs. 434.8 million 2004 Long term credit rating of AA+/Stable Branch opened in Port Blair Listing of non convertible debentures on BSE on the wholesale debt market segment Securitisation of tractor assets of Rs. 256.6 million 2005 Tie-up with HPCL MIBL became our wholly owned subsidiary Commenced distribution of third party mutual funds

2006 Following a successful IPO, subscribed nearly 27 times more, Mahindra & Mahindra Financial Services Ltd (MMFSL) priced its shares at Rs 200 each. The original price band for the issue of
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two crore shares of Rs 10 each, for cash at a premium decided through the book-built process, had been fixed at Rs 170-200 a share.

-Mahindra & Mahindra Financial Services Limited has informed that Mr. Narayan Shankar has ceased to be the Company Secretary of the company with effect from October 26,2006. Ms. Angarika Baviskar would continue to hold the post of Deputy Company Secretary and Compliance Officer of the company.

-Tied up with Maruti Udyog Limited. -Reached a new benchmark with 400 branches.

2007 -Commenced Home Loans Business through our subsidiary Mahindra Rural Housing Finance Limited.

2008 -Received 12.5% equity participation from NHB for our Subsidiary Mahindra Rural Housing Finance Ltd. -Preferential allotement of shares to Standard Chartered Private Equity Ltd. & TPG Axon Private Equity Ltd.

2009 Commenced Fixed Deposits Program. 2010 More than 2 lakh new customer contracts in a financial year for the first time. Branch network crosses 550 branches.

2011 Maiden QIP Issue. Joint Venture with Rabobank subsidiary for tractor financing in USA. 2012 Mahindra Finance wins the inaugural Porter Prize in the category of Creating Distinctive Value. Mahindra Finance are first runners up at CNBC TV18 Best Bank & Financial Institution awards. Ranked 9th in the prestigious Dun & Bradstreet's India's Top 500 Companies 2011(released on 1st June, 2012), based on the total income in the FIs/ NBFCs/ Financial Services Sector.

2013 Company has splits its Face value of Shares from Rs 10 to Rs 2

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BOARD OF DIRECTORS
Mahindra Finance is led by an ensemble of highly motivated visionaries who bring years of experience and expertise to the table. They guide, inspire and propel us to push the boundaries and move towards our collective vision of empowering every life with resources to put their ambitions on the map. The board consists of eight noted directors vested with the charge of general supervision, direction and management of the operations of our company. The primary responsibilities of the Board of Directors include:

Overseeing high standards of corporate governance and compliance with various laws Overseeing our financial management and approving various lines of business Shaping our policies and procedures Monitoring our performance and evolving the growth strategy Setting up counter-party and other prudential risk management limits

Mr. Bharat N. Doshi Director

Mr.UdayY.Phadke Chairman

Dr. Pawan Kumar Goenka Managing Director

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Mr.RameshIyer Director

At Mahindra Finance, our vision has always been to make a positive difference to as many lives as possible. It is what inspires us to expand our family and deliver more value to our customers through superior services and expertise. Here's a bit about two such successful ventures Mahindra Insurance Brokers Ltd. and Mahindra Rural Housing Finance Ltd., whom we are proud to have as a part of our ever-growing family. We live in a day and age where staying protected against the uncertainties of tomorrow is of paramount importance. Understanding this very requirement, Mahindra Insurance Brokers Ltd. (MIBL), our subsidiary, provides 360o insurance solutions, tailor-made for the diverse needs and risk profiles of our varied consumer base. While providing direct insurance broking for the retail customer base of around 1.3 million and catering to a large number of corporate customers, the company also offers a range of plans for the Life as well as Non-life insurance segments. MIBL is committed to provide value to its customers by understanding their insurance needs and risk profile in a highly detailed and systematic manner. This helps in chalking out more innovative, cost-effective and customised insurance solutions. And its uncompromising adherence to the highest standards of quality is evident from the fact that it is one of the few insurance broking companies in India to have been awarded the prestigious ISO 9001:2008 Certification for Quality Management Systems. MIBL was granted a Direct Broker's Licence by the Insurance Regulatory and Development Authority (IRDA) in May 2004, enabling it to undertake direct insurance broking in Life and Non-life businesses. In addition, MIBL has empanelled itself with various public and private insurance companies to fulfil its promise of delivering customised solutions to customers. In September 2011, MIBL was granted a Composite Broker licence by the IRDA, thus foraying into the Reinsurance Broking business along with Direct Broking. As a Total Insurance Risk Solutions provider, MIBL also plays an integral role in the Risk Management portfolio of customers.

OBJECTIVE
PRIMARY OBJECTIVES To know about Promotional policies of Mahindra Finance. SECONDARY OBJECTIVES The main objectives of this project is to find, what steps Mahindra Finance is adapting to be market leader and to differentiate itself from its competitors. The basic objective of this project is as mentioned above to find ways so that Mahindra Finance remain market leader by considering all the needs &wants and fulfilling their demand. To find out the Strategy of Mahindra Finance to remain market leader in future. It should do something to give after sales service and collect feedback from the customers.

SERVICES OF MAHINDRA FINANCE

1. VEHICLE LOANS a. Tractor Loans

I have availed of four new tractor loans and my experience has always been positive. I have been a Mahindra Finance customer for the last six years and I am very happy with their service. I first went to them in 2004 when I wanted to buy a Mahindra tractor... - Mr. S. Subhash, Nagercoil *Images are for reference only. Actual customer images may vary.

Features & Benefits Eligibility & Documentation Repayment based on cash flows i.e. monthly/quarterly and half yearly (asset becomes loan free in five years)

Quick disbursal within two days after loan approval Available for a wide range of tractors Stress-free loan sanction without mortgaging of land Easy and flexible documentation
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.b. UTILITY VEHICLES LOANS

My life has changed completely. I have a small business dealing in cattle feed. Before I approached Mahindra Finance, I used to purchase cattle feed from farmers and transport it via a three wheeler to a cattle camp, where I would sell the entire stock. It would earn me around Rs 7,000 Rs 8,000/- at that time... - Mr. Salemamad Ibrahim Node, Bhuj *Images are for reference only. Actual customer images may vary.

I thank Mahindra Finance for helping me achieve success and stability in life.

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My job is to pick up and drop kids to school in my vehicle. Earlier, I owned an auto, but it proved insufficient in handling the increasing number of students.At that point of time, I began hunting for used cars and luckily... - Mr. Hitendra Bhagwati Lal Shah, Vadodara *Images are for reference only. Actual customer images may vary.

Features & Benefits Eligibility & Documentation Flexible repayment options ranging from 12 to 60 months Fast loan disbursement within 48 hours Competitive rates of interest Hassle-free documentation Pay online and through direct debit Enjoy a repayment period of up to 5 years

c. CAR LOAN

Mahindra Finance fueled my dream of driving my own car.

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I live in the slum area of Surat and have my own scrap business. I have been associated with Mahindra Finance since the last nine years. In 2004, when I needed a loan I approached many banks and financiers but no one was ready to provide me a loan due to lack of documents.... -

Now I take my family out in my own car, thanks to Mahindra Finance. My wife and kids always used to complain to me that other relatives have a car, and we dont. However, being an ordinary petrol attendant with a modest income, I had to admit that buying a car was next to impossible - Mr. Ram Prajapat, Sangane *Images are for reference only. Actual customer images may vary.

Features & Benefits Eligibility & Documentation Minimum documentation to ensure a hassle-free process Quick car loan approval Up to 100% ex-showroom funding Multiple repayment options
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d. THREE WHEELER LOAN

Today, I've regained my confidence and happy about doing well in my motherland. I used to be a taxi driver in Mumbai for six years. But a dire need of money forced me to leave my motherland and migrate to Saudi Arabia to earn a living... - Mr. S.K. Rabbani, Hyderabad *Images are for reference only. Actual customer images may vary.

From repairing vehicles to owning one!

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I started working at the age of 10 at a garage and grew up working there as a mechanic. Then one day, a Bajaj 3-Wheeler came in for repair. I decided to buy it. So I arranged for the money from my relatives and the savings I already had. I used the vehicle for around six to seven years... - Mr. Mohammad Basheer, Hyderabad *Images are for reference only. Actual customer images may vary.

Features & Benefits Eligibility & Documentation We cover the widest range of three-wheelers in India Flexible repayment options, ranging from 12 to 36 months Loan sanctioned within 48 hours Enjoy hassle-free documentation Multiple plans customised to match your needs Competitive rates of interest

E. COMMERCIAL VEHICLE LOAN

From an employee to an entrepreneur - it has been a magical journey!

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I was with a construction company for eight years. In 2004, I left my job and started subcontracting with a few friends. Three years later, I decided to expand. So I took up a commercial vehicle loan from... - Mr. Surya Narayan, Hyderabad *Images are for reference only. Actual customer images may vary.

After I got a loan, my business just took off and grew by five times! Needless to say, Mahindra Finance will always be my first choice. Ive been into the dairy business for the last 15 years. I earn around Rs. 30,000 every month and at present, have a loan for two Mahindra... - Mr. Ratnabhai Bharvad, Vododara *Images are for reference only. Actual customer images may vary.

Features & Benefits Eligibility & Documentation

The rate of interest for the loan depends on various factors like customer profiles and location. A commercial vehicle loan can be taken for a variety of commercial vehicles, which may be used at different locations. The loan is applicable to customers with diverse profiles.

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For new CVs

Fast processing Greater flexibility Maximum tenure of 60 months Competitive rates Customised financing

For old CVs

Finance against vehicles that are up to 15 years old Maximum tenure of up to 3 years Maximum finance flexibility

F. TWO WHEELER LOAN

Mahindra Finance offers exactly what you need. I choose Mahindra Finance because I was attracted by the interest rates they were providing. I have compared Mahindra Finance to other finance companies, and found the staff completely professional...

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Read More - Ms. Rekha Arjun Wagh, Nashik *Images are for reference only. Actual customer images may vary.

Features & Benefits Eligibility & Documentation Quick and efficient loan approval Special 0.5% rebate for women customers Maximum funding of up to 80% on LTV Flexible repayment option, ranging from 12 to 36 months Loan insurance available

F. USED VEHICLE LOAN

Mahindra Finance has been a source of great support. Mahindra Finance is not just a financer, but has emerged as a support system for me. I have refinanced three vehicles with the help of Mahindra Finance and expanded my business as well. Today, I am considered as an opinion leader amongst my friends...

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Read More - Mr. Jaswant Singh, Lucknow *Images are for reference only. Actual customer images may vary.

Features & Benefits Eligibility & Documentation Used vehicle loans available for vehicles up to 10 years old Lower rates of interest as compared to other unsecured loans Maximum flexibility Speedy loan disbursements

2. PERSONNEL LOANS a. Personnel loan

New look to my old house - without any difficulty! I took a personal loan from Mahindra Finance as I wanted to renovate my house. The rate of interest being offered to me was very low. So I took it, and I found the loan process to be smooth and quick. The entire house renovation process... Read More - Mr. Sharad Patel, Nashik *Images are for reference only. Actual customer images may vary.
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Features & Benefits Eligibility & Documentation FAQs Instant personal loan approval and disbursement in 2 days Loans of up to Rs. 3 lakh Hassle-free documentation with maximum flexibility Maximum loan tenure of up to 3 years* Easy EMI payment option through cheque, ECS, mobile transfer or cash at the branch *Conditions Apply

b. GOLD LOAN

Mahindra Finance has made my life much easier. I needed funds for my construction business. So I approached Mahindra Finance as they had attractive interest rates on gold loans. I found them highly professional and more cooperative than most other financial service providers. They customised the loan as per my needs with... Read More - Mr. Jiji K. P., Kerala *Images are for reference only. Actual customer images may vary.

Features & Benefits Eligibility & Documentation Get a gold loan of up to Rs. 10,00,000/19

Repay only by servicing regular interest on the loan/EMI repayment option available on request

Enjoy assured security of your gold jewellery Loan tenure is of 1 week to 3 years

3. HOME LOAN

From an empty plot of land to a blissful home - thank you Mahindra Finance. I used to stay in a rented house but had a great piece of land where I always dreamt of building a nice little house. But I had no money. So I approached MRHFL... - Mr. Yogesh Kaushal, Dewas *Images are for reference only. Actual customer images may vary.

Features & Benefits Eligibility & Documentation Wide network across the country to ensure you have no trouble reaching us Personalised documentation assistance for smooth processing Flexible repayment options Door-to-door servicing to ensure maximum convenience
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Loan available for various purposes construction, renovation, improvement and purchase

Fixed and variable rates of interest subject to conditions

4. FIXED DEPOSITS

In these uncertain times, get the most of your hard-earned money without the risk of losing it. Invest your money in our Fixed Deposit schemes that offer you highly competitive interest rates and help it grow consistently over a period of time.

Features & Benefits Eligibility & Documentation Rate of Interest The MMFSL Fixed Deposit has a Crisil rating of 'FAAA', which indicates a high level of safety

Cumulative as well as non-cumulative options available 0.25% additional rate for senior citizens 0.35% additional interest for all Mahindra group company employees

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5. MUTUAL FUNDS

In today's time, we all realise the need to move from just 'saving' to 'investing' our money in the right areas. It's only then that we help our money to achieve its potential for growth. And mutual funds are where your money can really flourish and easily beat the inflation. At Mahindra Finance, we recognise this opportunity and have designed various schemes to help you invest your money and gain the most from it.

Overview Features & Benefits Eligibility & Documentation

Fund Distribution (FINSMART) Our Mutual Fund Distribution team started its operation in September 2005, and since then, has spread widely across the Southern, Western and Northern states of India. The entire effort here is to provide you with end-to-end solutions to help you achieve your financial objectives in a hassle-free manner. When it comes to investing, we understand that everyone has unique needs based on their own financial objectives and risk profiles. And while many investment avenues are open to investors, it is usually seen that in the longer run, equities typically outperform the others.

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PROMOTIONAL POLICIES OF MAHINDRA FINANCE

We at Mahindra Finance are one dynamic lot always bustling with something fresh, working towards successful developments and creating positive ripples in the industry. So be it corporate events, latest launches, CSR initiatives or any other celebration drop in here to get your fill of the latest happenings and events associated with Mahindra Finance.

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Our advertising campaigns are yet another medium for us to express our commitment to the values and beliefs we hold fast. Take a look at some pieces of communication we've featured in the media, with a small hope to reach out to all those who can benefit from our offerings.

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RESEARCH METHODOLOGY
Meaning of research Research in common parlance refers to a search for knowledge. Once can also define search as a scientific and systematic search for pertinent information on a specific topic. Infect research is an art of scientific investigation. The advanced learners dictionary of current English lay down the meaning of research as A careful investigation or inquiry specially through search for new facts in any branch of knowledge. This inquisitiveness is the mother of all knowledge and the method which man employs for obtaining the knowledge of whatever the unknown can be termed and research. What is research methodology? It is the science that tells the method of doing research.it mainly consist of following steps; Developing research design. Determining the data collection. Developing sampling plan. Conducting field work. Research in comman parlance refers to a search for knowledge .One can also define research as a scientific and systematic search for pertinent information on a specific topic. The word research has been derived from French word research means to search. Definition of research methodology: Research may be defined as a careful investigation or enquiry specially through search for new facts in any branch of knowledge in a technical sense research comprise defining& redefining problems, formulated making deduction & researching conclusion & at least carefully testing the conclusion to determine weather they fit the formulating hypothesis. RESEARCH DESIGN: Research design is the conceptual structure within which research is conducted. It constitutes the blueprint for collection, measurement and analysis of data. The design used for carrying out this research is descriptive.

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Research design used in the survey: Considering the objectives of the study and also the importance of the decision it was decided to undertake an exploratory survey. Data collection: 1. primary data-primary data are those which are fresh and collect for the first time and thus happen to be original character. 2. Secondary data-It is the data that is already been collected by someone else. In this survey I used both primary and secondary data. All information collected through questionnaire. Data sources: The sources of collection of primary data are: Questionnaire The sources of collection of secondary data are: Books Websites Magazine Brochure Analysis and interpretation: Data collection through questionnaire and personnel interview resulted in availability of the desired information but these were useless until there were analyzed. Various steps required for this purpose were editing, coding and tabulating. Tabulating refers to bringing together similar data and compiling them in an accurate and meaningful manner. The data collected by questionnaire was analyzed, interpreted with the help of table, bar chart and pie chart.

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Sampling plan It is very difficult to collect information from every members of population as time and cost are the major limitation that the researcher faces a sample 30 was taken the sample size of 30 individual where selected on the basis of convenient sampling techniques. The individuals were selected in the random manner form sample and data were collected from research study. Need for sampling Sampling can save time and money. a sample study usually less expensive than a sensus study and produces result at a relatively faster speed. Sampling remains the only way when population contain infinitely may members. Sampling remains the only choice when a test involves the destruction of the items under study.

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DATA ANALAYSIS AND INTERPRETATION

Q1. Are you aware about Mahindra Finance? YES 85% NO 15%

15%

YES NO

85%

According to survey we find that 85% of customers are aware about Mahindra Finance while 15% are not.

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Q2. Have you owned any Services of Mahindra Finance? YES 40% NO 60%

40% YES NO

60%

According to survey we find that 40% of customers are owned a services of Mahindra Finance while 60% are not.

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Q3. Which type of Service do you owned? Two wheeler loan Car Loan Commercial Loan Personnel loan Home Loan 28% 35% 5% 15% 17%

17%

28% Two wheeler loan Car Loan Commercial Loan Personnel loan 35% Home Loan

15%

5%

According to survey we find that 28% of customers are owned Two wheeler loan, 35% customers have Car Loan, 5% customers have Commercial loan, 15% customers owned Personnel loan while 17% customers are have Home Loans from Mahindra Finance.

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Q4. Are you satisfy with the interest rates and services provided by Mahindra Finance? YES 65% NO 35%

35%

YES 65% NO

According to survey we find that 65% of customers are satisfy with Mahindra Finance while 35% are not.

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Q5. Rate the product about your satisfaction? GOOD VERY GOOD EXCELLENT POOR 52% 20% 18% 10%

10%

18%

GOOD VERY GOOD 52% EXCELLENT POOR 20%

According to survey we find that 52% of customers are likely to says that its Good, 20% customers says its Very Good, 18% customers says its excellent while 10% says its Poor.

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Q6. By which source you come to know about Mahindra Finance? T.V NEWSPAPER HOARDINGS MOUTH OF TONGUE 58% 15% 10% 17%

17% 10% 58% 15%

T.V NEWSPAPER HOARDINGS MOUTH OF TONGUE

According to survey we find that 58% of customers are come to know by T.V, 20% customers says by Newspaper, 10% customers says by Hoardings while 17% says by Mouth of tongue.

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Q7. Did you aware about Promotional policies of Mahindra Finance? YES 65% NO 35%

35%

YES 65% NO

According to survey we find that 65% of customers are aware about promotional policies while 35% are not.

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Q8. Are the employees of Mahindra Finance cooperative with you when you visit? YES NO 55% 45%

45% 55% YES NO

According to survey we find that 55% customers are satisfied with the workers of Mahindra Finance while 45% customers are not satisfied.

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LIMITATIONS
Non Cooperations of Respondents : The respondent was not cooperative at the time of survey. They were hesitating to talk with the strangers. Language Problem: The problem of English was occurring. Shortage of time The time period was not fulfilled. The requirement of more time was there.

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SUGGESTION
1. Should give their product at affordable interest rates. 2. More and more promotion techniques should be there to promote it 3. Make more offices in every place. 4. Should be available in every place. In small town there is a problem of office or franchise. 5. Generally people are not aware. make them aware

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FINDINGS
Major competitors of Mahindra Finance are Sundaram Finance L&T and many more. Peoples who are in profession line preferred Mahindra Finance due to its interest rates. Interest rates applied are affordable by the customers.

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CONCLUSION
The overall disbursement registered a growth of 35.3 per cent at Rs.19,504.3 Crores as compared to Rs. 14,419.9 Crores in the previous year. Your Company during the year under review, continued to provide a wide range of financial products and services to its customers through diversification of its product portfolio within its vehicle financing business as well as through the introduction and growth of other financial products and maintained its market leadership position in rural and semi-urban markets. Your Company has increased its presence in financing of commercial vehicle, construction equipment, as well as, pre-owned vehicle while maintaining aggressive growth in car financing, retaining its leadership position in financing Mahindra range of vehicles and tractors in addition to extending its lending to vehicles of other Original Equipment Manufacturers (OEMs).

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