SYNOPSIS

PRE-OWNED CAR FINANCE

Introduction

Mahindra Finance began as a captive financier of Mahindra Utility

Vehicles in the early 90s. From Mahindra UVs to tractors to non-
Mahindra products, the company has diversified into a financial services
provider with a whole suite of financial solutions tailored to the under-
served customer in under-penetrated rural markets.
Our product portfolio consists of vehicle finance, which includes
financing of passenger vehicles, utility vehicles, tractors, commercial
vehicles, construction equipment; and pre-owned vehicles and SME
finance, which includes project finance, equipment finance, working
capital finance and bill discounting services to SMEs. The company also
undertakes mutual fund distribution, fixed deposits and personal loans
tailor-made to suit its unique customer set.
Our endeavour to stay deeply connected with the customer begins with
our recruitment strategy. We consciously recruit employees at the local
level, rather than appoint them from cities and depute them to rural
branches.
Mahindra Finance is the only Non-Banking Financial Company from
India to be listed on Dow Jones Sustainability Index in Emerging Market
Category. Mahindra Finance has been ranked in Top 15 India's Best
Workplaces to Work in BFSI, 2018 by Great Place to Work® Institute
India. We have also been recognized as Aon Best Employer 2017 and
Best BFSI Brands 2018 by The Economic Times.
Vision
To be a leading financial services provider in semi-urban and rural India.
Mission
To transform rural lives and drive positive change in the communities.

USED CAR LOANS

Used car loans are installment loans for the purchase of used vehicle to be used
for personal, business or commercial purposes. The used car loan Programmes is
a retail asset product & can be availed by the Individuals, Sole Proprietor,
Partnership Firms, Pensioner, Farmers, Public & Private companies who satisfy
the credit parameters set out in this manual. The bank would assess the credit
worthiness of the applicant, approve and disburse the loan and also mark a lien
on the vehicle as a security. The lien on the vehicle has to be a first lien.

REVIEW OF LITERATURE

For any research work, it is necessary to take the review of the literature pertaining to the research
subject, because the review of the literature helps the researcher to determine the precise subject area
and to arrange research work in proper way.

Aditya Puri (2005), in his article “A Booming Segment”, quotes that leading institutions and banks have
evolved their offerings to make the products more attractive for the customers and process from
application to disbursement more streamlined. He expresses that this is the fastest growing segment in
financial sector. The leading institutions are more shifted from unorganized to organized lending. The
organized leading means greater transparency, better documentation, easier and speedier application
and disbursement process, attractive offers and interest rates.

V.Sumantaran (2005) in his article entitled “Player Plan Expansion,” stated that, expounds the major role
played by the automobile industry in the Indian economy. He points out that the automobile is one of
the largest industrial sectors with a spectacular turnover, which amounts roughly to 5% of the GDP. It
also plays a significant role in creating employment. It employs 2 million persons directly and 10 million
indirectly.

Pankaj Deval (2007) in his article, “Auto Majors Cut Production,” pointed out that auto companies, both
of 3-wheelers and 4-wheelers have been cutting their production. Almost all the major companies from
Tata Motors, Bajaj, and Hyundai to Toyota have cut their productions in May 2007 as demand shrank
due to a variety of factors, led by rising interest that pushed up 22 the cost of production. According to
him, it is a worrying trend and things are likely to worsen in the coming months. The demand has hit
even this critical segment due to the rising interest rates.

Dr Ajoy S Joseph (2011) One of the most important factors that influence purchase of passenger
cars in India is the availability of auto finance or consumer credit. This empirical study analyses
the behavioural pattern exhibited by passenger car customers towards auto loan schemes and
Financiers when they purchase their cars. The study was based on the data collected from five
hundred and twenty five passenger car owners consisting of professionals, employees of public
and private sector, businessmen and agriculturist in Dakshina Kannada district of Karnataka
State. The respondents have been broadly categorised into three groups on the basis of original
price range of their cars viz. cars in the price range of Rs. 2 – 4 lakhs, Rs. 4 – 6 lakhs and Rs. 6 –
9 lakhs. The study finding indicates that the most important three factors considered by car
purchasers while deciding auto finance company were less processing time, easy documentation
and explanation of the financing scheme by the staff.

OBJECTIVE OF THE STUDY

 TO STUDY THE CAR LOAN PROVIDED BY BANK OF INDIA TO THEIR
CUSTOMERS.
 TO STUDY THE DETAILED PROCEDURE INVOLVED IN THE
SANCTIONING OF CAR LOAN.
 TO STUDY THE AWARENESS OF THE CAR LOAN AMONG THE
CUSTOMER
 MAKE A COMPARATIVE STUDY OF BANK OF INDIA CAR LOAN
WITH OTHER COMPETITIVE BANKS
 TO STUDY THE RULES AND DOCUMENTS REQUIRED BY BANK OF
INDIA

FOR CAR LOAN