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JAIKA MOTORS LTD.

ON THE TOPIC

SUMMER INTERNSHIP PROJECT AT

“STUDY OF VEHICLE FINANCING PROCESS’’

Faculty Guide: RAKHI SHRIVSTAVA Faculty: Finance

Presented By: NITESH VAZEKAR ROLL NO. B-71 FINANCE

STERLING INSTITUTE OF MANAGEMENT STUDIES

JAIKA MOTORS LTD

The Jaika Group began its journey on 2 November, 1954, with the founding of Jaika Motors Ltd., in association with Tata Motors Today, the Group has completed over 5 decades of mutual trust with Tata Motors. It has diversified and grown into a conglomerate of 10 companies with a combined annual turnover of over Rs.750 cr In the process, the group has also established tie-ups with a number of world class companies such as Hyundai, TVS, Bharat Petroleum, Whirlpool, TCL, ILFS etc

TATA MOTORS FINANCE LTD.
Tata Motors Ltd pioneered commercial vehicle financing in 1957 in the name of BHPC (Bureau for Hire Purchase and Credit)
Tata Motors Finance Ltd (TMFL), came into existence in June 2003 This was a common front-end, jointly formed by BHPC of Tata Motors and the asset financing arm of erstwhile Tata Finance Ltd Subsequently Tata Finance was merged with Tata Motors and in April 2005 TMF became a division of Tata Motors

STEPS FOR FINANCING THE VEHICLE
Jaika Motors Sales Team
Jaika Motors Finance Department TATA Motors Finance
Jaika Motors  File disbursement (TATA Invoice + Jaika Invoice + Insurance)

Format of Rate of Interest of Finance
Minimum Rates for BHPC March 2012

Sr.No.

Vehicle Model

IRR%

1

2

3

4

5

CARS

ADV

NIL

ADV

NIL

ADV

NIL

ADV

NIL

ADV

NIL

1

INDICA DLS

16

6.76

8.18

7.63

8.38

8.05

8.6

8.05

8.06

8.64

9.02

2

INDICA XETA

16

6.76

8.18

7.63

8.38

8.05

8.6

8.37

8.82

8.64

9.02

3

INDICA VISTA

14

5.91

7.14

6.64

7.30

7

7.48

7.24

7.63

7.46

7.78

4

INDIGO CS

14

5.91

7.14

6.64

7.3

7

7.48

7.24

7.63

7.46

7.78

5

TATA SAFARI

16

6.76

8.18

7.63

7.63

8.05

8.6

8.37

8.82

8.64

9.02

CIBIL
CIBIL – Credit Information Bureau (India) Limited
India's first credit information bureau- which contains the credit history of commercial and consumer borrowers. CIBIL provides this information to its Members in the form of credit information reports Banks, Financial Institutions, State Financial Corporations, NonBanking Financial Companies, Housing Finance Companies and Credit Card Companies are Members of CIBIL

TATA DEDUPE

Dedupe is a database created of all the customers of TATA group It contains the financial data of individuals as well as corporate customers of TATA Group for all products

FIELD INVESTIGATION
Field Investigation is done to get following details:
    

Applicant’s personal information Residence verification (RVR) Work place details (OVR) Finance requirement Guarantor details (if there is Guarantor in the case)

CALCULATION OF DOWN PAYMENT AND EMI
The Jaika Motors Finance department calculates the expected amount that can be finance and the EMI

RISK SCORING PRICING MODULE

This is a questionnaire designed such that it helps the company to know their customers financial condition to avail the finance Total Income and assets held by customer RSPM gives 3 decisions for forward processing
Yes – Approval for finance (Telephone bill is necessary or its waiver) Refer to credit – the case is refer to the Credit Processing Agency to clarifies the deviations and reduce the risk  No – Mandatory rejection
 

RISK CONTAINMENT UNIT
It sample the doubtful documents and verify with original
It minimize the risk of financing by carefully observing the documents of customers If any report found negative , it return the case to Jaika for clarification

RELEASE ORDER

After getting the approval from all the departments, a Releasing Order is passed for final processing to Sales Team of Jaika Motors Sales Team prepares the following documents:

 

TATA Invoice Jaika Invoice Insurance

The customer is handed over the Vehicle and photocopies of above three documents

Conclusion