EXECUTIVE SUMMARY

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

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

Finance is the management of money, assets and other valuable items , which can be easily converted
into cash.

A category of stock at firm that provide financial services to consumers and retail customers. The sector
includes Banks, investment fund, insurance company , real estate and other financing bodies. The
financial service performs best in low interest rates under developing environment. A large portion of
financial sector generates revenue from mortgages and loans, which gains values as interest rates drop.

“finance” is often defined simply as the management of cash and money or fund management. Modern
finance is basically considers as a family of business activity that include the organization, marketing
and management of money surrogates through a variety of capital instruments and market created for
transaction and trading of assets and liabilities or risks. Finance is conceptualized, structure and
regulated by a emerging system of power related with political economies across state and global
market.

1.2: WHO IS CONSUMER?

An individual who buys product, goods or any services for personal purpose use and not for
manufacturing or resale. A consumer is a person who can make the decision either or not purchase an
item from the store, or someone who can get influenced by advertisement or words of shopkeeper.
Every time someone goes to a store and purchase any toy, shirt, beverage or snacks or else they are
making that decision as the consumer of that particular item.

Umder the consumer protection act 1985 any person or consumer any goods for themselves which
includes a person to obtain such goods for resale or for any commercial purpose.

1.3:- CONSUMER DURABLE FINANCE:

1.5: EMI Card:

 Bajaj Finserv Lending launched an innovative product for its existing Consumer
Durables Finance customers.
 Through the EMI card, an existing customer can buy any consumer durable by simply
swiping the EMI card across our dealer partner outlets, without the need for any repeated
documentation.
 This is another industry first, leveraging the technology investments the company has
made and is a proof point of our commitment to investing in growing our relationship
with our existing customers.

1.6: Advantages of Project:

 Schemes related to the consumer durable finance is always welcome by the customers.
 Tracking methodology of customer is very smoothly (by using EMI card).
 Provision of easy, simple and adequate credit.
2.1: Historical Background of the Organization:
Bajaj Finserv was formed in April 2007 which is situated in 4TH Floor, Bajaj Finserv Corporate
Office, Pune-Ahemednager Road Viman Nagar, Pune 411014, Maharashtra. As a result of its
demerger from Bajaj Auto Limited to act as a pure play financial services business. The process
of demerger was completed in Feb 2008. This demerger was not only to unlock values in the
high growth business areas of Auto, Insurance, Finance sectors and Wind Power but also to run
independently these core businesses and to strengthen the competencies. The wind power
project, the stakes in the life and general insurance companies and consumer finance along with
their respective assets and liabilities got vested in Bajaj Finserv Limited.
In addition to that cash and cash equivalent of INR 8,000 million (then market value) was also
transferred to the company. The demerger has enabled investors to hold separate focused stocks
and also facilitate transparent benchmarking of the companies to their peers in their respective
industries. The constantly changing demographics and dynamics of the Indian economy, has led
to creation of various needs of the average Indian customer. The Indian customer now demands
proper avenues of channelizing their savings, financial protection and is also desirous of
spending more on valuable goods and services. All these wants need to be met by dynamic
players in the financial services space. Bajaj Finserv was formed specifically to cater to these
needs. The company was also formed to touch and improve the lives of a growing number of
people in the country, and in doing so, deliver superior corporate values to its shareholders. The
operating companies carry with them the Bajaj brand, which carries with it decades of
commitment to business ethics, integrity and highest standards of fiduciary responsibility.

2.1.1: Area of operation:

 Consumer Durable Finance
 Two and Three Wheeler Finance
 Lifestyle product finance
 Vendor finance
 Construction Equipment Finance
2.1.2: Vision and Mission of the Organization:

Vision:

Bajaj Finserv has a vision to become a full-fledged financial services company and be the
financial partner to the Indian consumer and help him across his financial needs, whether for
finance, for investment management, for protection or for post-retirement support, throughout his
lifecycle.

Mission:
Bajaj Finserv aims to be the most useful, reliable and efficient provider of Financial Services. It
is our continuous endeavor to be a trustworthy advisor to our clients, helping them achieve their
financial goals.

2.1.3: Objective of the Organization:

Our main objects as contained in our Memorandum of Association include:
1. To Finance industrial by way advance ,deposit or lend money, securities and propertied
or with any Company, Body corporate, trust, firm, person or association whether falling
under the same management or otherwise, with or without security and on such terms as
may be determined from time to time, and to carry on and undertake the business of
finance and investment and to provide venture capital, seed capital, loan capital and to
participate in equity preference share capital or to give guarantees on behalf of the
company in the matter and to promote companies engaged in industrial and trading
business and to act as Financial Consultants, Management Consultants, Brokers, Dealers,
Agents and to carry on the business of share broking, money broking ,exchange broking,
bill broking and general brokers for shares ,debentures, debenture-stock, bonds, units,
obligations, securities ,commodities, bullion currencies and to manage the funds of any
person, firm, body corporate or trust by investment in various avenues like Growth Fund,
income fund, risk fund, tax exempt funds, pension /superannuation funds and to pass on
the benefits of portfolio investments to the investor as dividends, bonus, interest, etc.
 2. To carry on the business as an investment company and to underwrite, sub-underwrite, to
investigating , and acquire by gift or otherwise and hold, sell, buy or otherwise deal in
shares debentures, debentures-stocks, bond, units, obligations and securities issued or
guaranteed by Indian or Foreign Governments, States, Dominions, Sovereigns,
Municipalities.

DEPARTMENTS

Administration Collections Marketing Product

Credit Team Human Resources Operations Sales

Figure No. 2.1: Different Departments

2.1.4: Organization Hierarchy:
A key issue in accomplishing the goals identified in the planning process is structuring the work
of organization. Organizations are group of people, with ideas and resources working toward
common goals. The purpose of the organizing function is to make the best use of the
organizations resources to achieve organizational goals. Organizational Structure is the formal
decisions making framework by which job tasks are divided, grouped and coordinated.
Formalization is an important aspect of structure. It is the extent to which the unit of organization
is explicitly defined and its policies, procedures and goals are clearly stated. It is the official
organizational structure conceived and built by top management. The formal organization can be
seen and represented in chart form. An organization chart displays the organizational structure
and shows job titles, lines of authority and relationship between departments. Organizational
Structure allows the expressed allocation of responsibilities for different functions and processes
to different entities. Ordinary description of such entities is as branch site, department, work
group and single group of people.

Rahul Bajaj
[Chairman]

[CHAIRMAN]
Nanoo Pamnani
RAHUL BAJAJ
[Vice-Chairman]
[CHAIRMAN]

[CHAIRMAN]
Rajeev Jain
RAHUL
[Ceo]BAJAJ

[CHAIRMAN]

[CHAIRMAN]
Rakesh Bhatt
[Coo]BAJAJ
RAHUL

[CHAIRMAN]

[CHAIRMAN]

RAHUL BAJAJ

[CHAIRMAN]
 Devang Mody
[President Consumer Business]

[CHAIRMAN]
Deepak Reddy
[Chief
RAHULHuman
BAJAJResources]

[CHAIRMAN]

[CHAIRMAN]
Manev Mianwal
[Group
RAHUL BAJAJ
Marketing Head]

[CHAIRMAN]

[CHAIRMAN]

RAHUL BAJAJ

[CHAIRMAN]

Pankaj Thadan
[Chief Compliance Officer]

[CHAIRMAN]
Amit Gainda
Business
RAHULHead
BAJAJ- Mortgages

[CHAIRMAN]

[CHAIRMAN]
Rajesh K
[Chief
RAHUL Risk
BAJAJOfficer]

[CHAIRMAN]

[CHAIRMAN]
Ashish Panchal
[Business Head - Credit
RAHUL BAJAJ Cards & Loan]

[CHAIRMAN]

[CHAIRMAN]
Diwakar Pundir
RAHUL BAJAJ
[Chief Credit Officer]

[CHAIRMAN]

[CHAIRMAN]

RAHUL BAJAJ
 Ashish Sapra
[Business Head - Cross Sell]

[CHAIRMAN]
Amit Raghuvanshi
[Business Head
RAHUL - Sales Finance]
BAJAJ

[CHAIRMAN]

[CHAIRMAN]
Atul Jain
[Chief Collections
RAHUL BAJAJ Officer]

[CHAIRMAN]

[CHAIRMAN]

RAHUL BAJAJ

[CHAIRMAN]

Samir Mehta
[Business Head Commercial
Lending]

B. Sreenivas
[CHAIRMAN]
[Business Head - Insurance
RAHULServices]
BAJAJ

[CHAIRMAN]

Vivek r. Likhite
[CHAIRMAN]
[group corporate audit head]
RAHUL BAJAJ

[CHAIRMAN]
[CHAIRMAN]
M M Muralidharan
[Treasurer]
RAHUL BAJAJ

[CHAIRMAN]

[CHAIRMAN]
Deepak Bagati
[Business Head
RAHUL - Business Loans]
BAJAJ

[CHAIRMAN]

[chairman]
 Samir Satyam
[BH - Loan Against Securities]

[CHAIRMAN]
Sanjeevvij
RAHUL BAJAJEquipment]
[BH - Construction

[CHAIRMAN]

[CHAIRMAN]
Figure No.2.2: Organizional Hierarchy
RAHUL BAJAJ

[CHAIRMAN]

Table No.2.1: Organization Chart of Bajaj Finserv:

Name Designation

Rahul Bajaj Chairman

Nanoo Pamnani Vice-chairman

Madhur Bajaj Major director

Rajiv Bajaj Director

Sanjiv Bajaj Non executive director

D.S.Mehta Major director

D.J.Balajirao Director
Dipak Poddar Director

Ranjan Sanghi Director

Rajendra Lakhotia Director

Omkar Goswami Director

2.1.5: Product Profile of the Organization:

Bajaj Finserv Lending offers loans for various needs. We offer loans for Bajaj Auto Two
Wheelers under the name of Bajaj Auto Finance Ltd. We offer Consumer Durable Loans,
Personal Loans, Loan against Property, Small Business Loans, Construction Equipment Loans,
Loan against Securities and Insurance Services under the name of Bajaj Finserv Lending. Bajaj
Finserv Lending is one of the most diversified NBFCs in the market catering to more than 5
million customers across the country. Apart from being a well-recognized organization, they
pride us for holding the highest credit rating of FAAA/Stable for any NBFC in the country today.
The product offerings include Consumer Durable Loans, Personal Loans, Loan against Property,
Small Business Loans, Two-wheeler and Three – Wheeler Loans, Construction Equipment
Loans, Loans against Securities and Insurance Services.

Home Loan

Construction Consumer
Equipment Loan Durable Loan
 Product

Portfolio

Three/Two
Wheeler Loan
Mortgage Loan

Personal and Small

Business Loan

Figure No.2.3: Product Profile of the Organization

 Products Covered:
0% interest Consumer Durables Finance is available on a wide range of products and in over 101
cities across India. Hereunder is an indicative list of products covered?
 LED/LCD/CTV
 Washing Machines
 Microwave Ovens
 Refrigerators,
 Cameras/Camcorders
 Dishwashers
 Generators
 Cooking Range products
 Dryers
 Laptops / Desktops (Select)
 Smart phones (Select)
 Air purifiers / Water Purifiers / R.O.
 Music Systems
  Inverters
 Air conditioners
 2.3: Current Picture Of The Company:
 Bajaj Finance reports AUM of RS.19229 crores and highest ever quatarly profit after tax
of RS,176 crores-A growth of 27% over corresponding quarter of previous year.
 The Board of Director of Bajaj Finance Limited in their meeting held today took on
record the unaudited Financial Result of the company for 1st quarter ended 30 June 2013.
 Table No.2.2: Performance Highlights:

Sr.No. Particular Financial Financial Performance

Year 2013 Year 2014 Increasesed
1 Total Income (Cr.) 703 932 33%
2 Profit After Tax (Cr.) 139 176 27%
3 Customer Acquired (No.) 7,52,231 9,69,447 29%
4 Deployments (Cr.) 6250 8250 32%
5 Loan losses and provisions (Cr.) 41 60 46%

 Launch of Digital Product Financing:
The company added digital product financing as an extension to its consumer electronics
financing business.
 Launch of Rural Lending:
The company launched its rural financing business in 7 branches and 30 spokes across
Maharashtra.The full product suite consisting of consumer electronics financing,gold loans and
refinancing loans have been launched in these markets.

 Among the top 3 BFSI companies to work for in India:

The company has been ranked as the 3rd Best Financial Service Company to Work For in India
by ‘Great Place to Work Institute’-Amongst the most prestigious employer award in India.

2.4: Future Plan of the Organization:

 Application for Banking License:
Bajaj Finserv Limited, the holding company of Bajaj Finance Limited, has submitted its
application to Reserve Bank of India on June 26, 2013 for a license to commence banking
business in terms of section 22 of the Banking Companies Act, 1949.It is proposed to do this by
converting its subsidiary Bajaj Finance Ltd.into a Bank in terms of RBI Guidelines for Licensing
of New Bank in the Private Sector dated February 22, 2013.

2.5: Other Relavant Information About The Organization:

SWOT Analysis Of The Organization:

Strenths:

Proper setup for Widespread distribution High performance

customer handling with network across categories
less work disruption

Good team back up Great financial support More schemes than

support network competitors

Figure No.2.4:Strenths of the Organization

Weakness :

Uneven schemes to One sales executive fails

customer Weakness to entertain the customer

More strict policy than

competitors
 Figure No.2.5: Weakness of the Organization

Opportunities :

Untapped market The growing and improved

above other lending schemes in the market
companies

Opportunities

Proposing to launch more

Growing demand for 0%
other financial schemes
financial schemes especially
more product introduction
in emerging market

Figure No.2.6: Opportunitiesof the Organization

Threats :

The competitions Margins getting squeezed

catches-up any new Threats from both the directions
innovation in no time (price as well as cost)

Threat of other financial

lenders like future finance etc
offering the same benefits

Figure No.2.7: Threats of the Organization

 RESEARCH DESIGN AND METHODOLOGY

3.1: Introduction:
Research is common parlance refers to a search for knowledge. One cans also define research
“As scientific and systematic search pertinent information on a specify topic”. In fact research is
an art of scientific investigation. Another meaning of research as “A careful investigation or
inquiry especially through for new facts in any branch of knowledge.”The system of collecting
and processing of data for research project is known as research methodology. Some important
factors in research methodology include validity of research data, ethics, reliability of measures
and logical sequence.
“Research is an organized systematic data based scientific inquiry or investigation into a specific
problem under taken with the purpose of finding answer or solution to it”
Research is basically a human activity engaged in intellectual pursuit of discovering something
new. It could be a product, a method, a service, a system etc. It could also be in abstract forms
like idea, thinking process, strategy etc.

3.2: Meaning of Research:

 Research is discovery of facts, development of facts and verification of facts.
 Research is an endeavor to discover intellectual and practical solutions to the problems
through the applications of scientific methods to the knowledge universe.
 Research is the last resort when individuals, organizations and societies face some
problems for which there are no answers or when there is inconsistence among answers.
 Research is carried out to settle controversies, contradictions, misunderstandings and
disputes about the nature of some aspects of the universe.
 Research is the systematic approach concerning generalization and formulation of a
theory.
3.3: Definitions:
Advanced Learner’s Dictionary of Current English (OXFORD):
“Research defined as a careful investigation or inquiry specially though search for new facts in
any branch of knowledge.”
Types of Research:

1. Pure or Basic or Fundamental Research.

2. Applied Research.

3. Formulative or Exploratory Research.

4. Descriptive Research or Diagnostic Research.

5. Historical Research.

6. Quantitative or Qualitative Research.

7. Conceptual Research.

8. Empirical or Experimental Research.

Other types of Research:

1. One Time Research or Longitudinal Research.

2. Field setting Research or Laboratory Research or situational research.

3. Conclusion oriented or decision oriented Research.

3.6: Research Design:

Research design is a plan of action, a plan for collecting and analyzing data in an economic,
efficient and relevant manner.

Types of Research Design

1. Exploratory Research Design.

2. Descriptive Research Design.

3. Experimental Research Design

 Exploratory Research:
Exploratory research is conducted to provide a better understanding of a situation. It isn’t
designed to come up with final answers or decisions. Through exploratory research,
researchers hope to produce hypotheses about what is going on in a situation.
  Descriptive Research :
Descriptive research can be used to accomplish a wide variety of research objectives.
However, descriptive data become useful for solving problems only when the process is
guided by one or more specific research problems, much thought and effort, and quite
often exploratory research to clarify the problem and develop hypotheses.

 Experimental Research:
The experiment is a situation in which a researcher attempts to objectively observe
phenomena which are made to occur in a strictly controlled situation where one or more
variables are varied and the others are held constant.

3.7: Sources of Data:

The study is exploratory in nature, makes use of mainly secondary data. The data been collected
from
 The annual reports of the company
 Books
 Articles
 Magazines
 Company website
 Research papers
 MBA projects
 Internet