ANALYSIS OF CONSUMER’S PERCEPTION

TOWARDS BAJAJ FINSERV

EMI CARD

Submitted In Fulfillment of

MASTER of BUSINESS ADMINISTRATION

In the

University School of Business

CHANDIGARH UNIVERSITY, GHARUAN

(2017-2019)

Submitted By: Supervised By:

SANDEEP NAGILA Dr. ANUPAL MONGIA
17MBA1513
MBA IV SEM.

1
 DECLARATION
PROJECT IS ORIGINAL WORK

I declare that this project titled “Analysis of consumer’s perception towards Bajaj Finserv EMI card” has
been worked on, drafted and finalised by me – Sandeep Nagila, 17MBA1513 student of MBA 4th semester
of the batch 2017-2019. This project is an original piece of work and not copied or plagiarised from any
other source of literature, review article or published article in this regard. This Final Year Project Report is
being submitted in partial fulfilment of the degree of Master in Business Administration from University
School of Business, Chandigarh University and has not been submitted for the reward of any certificate,
diploma, degree, fellowship with any other college / university nor educational institute before this.

In case any part of this work is reported as copied from any another source, I shall be solely responsible
for the same and will be answerable for any action taken in this regard.

Students’ Signature :
Name: SANDEEP NAGILA
UID No: 17MBA1513
Date:

2
 CERTIFICATE

This is to certify that, Mr. SANDEEP NAGILA, UID No.17MBA1513, a student of MBA 4 th
SEMESTER, with University School of Business, Chandigarh University, Gharuan, Punjab, has
successfully completed his Final Research Project from _FEB2019 to APRIL2019 and his/ her
report is titled “ANALYSIS OF CONSUMER’S PERCEPTION TOWARDS BAJAJ FINSERV EMI
CARD”. The student has carried out the work satisfactorily under my supervision.
According to the declaration submitted by the student, the report is an authentic work and may be
considered for partial fulfilment towards course credits
.

I wish him success in life.

Sign of Faculty Supervisor
(Name of Supervisor)
Designation
Date

3
 ACKNOWLEDGEMENT

Most importantly I might want to thank the God for giving me wellbeing and vitality and for
helping me to finish this study.

I am exceptionally appreciative to my guide, Dr ANUPAL, for her nonstop

direction and priceless counsel all through my research period.

I stretch out my appreciation to my instructors who trained me in the MBA

program in this manner advancing my examination with information.

Yours Sincerely

SANDEEP NAGILA

4
 INDEX

S. CONTENTS PAGE NO.

No.

1 Company Profile 7-14

2 Introduction to the topic 15

3 Review Of Literature 16-21

4 Objective of the study 22

5 Research Methodology 23-26

6 Data Analysis 27-42

7 Findings & Suggestions 43-44

8 Conclusion ,Bibliography and Annexure 45-50

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 COMPANY PROFILE

History Overview :

FATHER Shri Jamnalal Bajaj (4 November 1889 – 11 February 1942) was an industrialist, a
philanthropist, and freedom fighter. He was a close associate and follower of Mahatma Gandhi
who is known to have adopted him as his fifth son. He founded the Bajaj Group of companies in
1926 which now has 24 companies, including 6 listed ones. Shri Jamnalal Bajaj was born into a
poor Marwari family, the third son of Kaniram and Birdibai, and was later adopted as a grandson
by Seth Bachhraj andhis wife Sadibai Bachhraj, a rich Rajasthani merchant couple of Wardha.
Under the guidance of Seth Bachhraj, Jamnalalji got involved in the family and acquired the
know-how of being a tradesman -keeping strict accounts and buying and selling commodities -
excelling in his work by the time Seth Bachhraj expired. In 1926 he founded what would become
the Bajaj group of industries. During the First World War, the British government appointed
Jamnalal an honorary magistrate. When he provided money for the war fund, they conferred on
him the title of Rai Bahadur, a title he later surrendered
during the non-co-operation movement of 1921. Upon Gandhiji's return from South Africa,
Jamnalalji took an interest in Gandhiji's way of life, his principles, such as Ahimsa (non-
violence), and his dedication to the poor. He could understand Gandhi's vision that home-made
goods were the answer to India's poverty and strongly advocated that cause while touring the
length and breadth of India promoting Khadi. In 1920, Jamnalalji was elected chairman of the
reception committee for the Nagpur session of the Indian National Congress. He gave up the title
of Rai Bahadur conferred on him by the British government, and joined the non-co-operation
movement in 1921. Later, in 1923, he participated in the flag Satyagraha, defying a ban on flying
the national flag in Nagpur, and was detained by British forces. This earned him national
admiration. He was later elected a member of the Congress Working Committee and as the
treasurer of Congress in 1933.With the intent of eradicating untouchability, he fought the non-
admission of Harijans into Hindu temples in his home town of Wardha. Amidst strong
objections, he opened his own family temple, the Laxmi Narayan Mandir, in Wardha, for the
Harijans in 1928. This was the first temple in India to do so. Jamnalalji dedicated much of his
wealth to the poor. He felt this inherited wealth was a sacred trust to be used for the benefit of
the people. This was in line with the trusteeship concept proposed by Gandhi.

6
 Industry Profile

Bajaj Finserv Limited (BFL) enjoyed yet another strong year of performance aided by a
diversified product mix, robust volume growth, prudent operating costs and effective risk
management. With assets under management (AUM) of H 80,444 crore on standalone basis and
H 84,033 on consolidated basis, BFL has emerged as one of the leading diversified NBFCs in the
country today. Highlights of the FY2018 results are given below.
BFL focuses on six broad categories:
(i) Consumer Lending,
(ii) SME Lending,
(iii) Commercial Lending,
(iv) Rural Lending,
(v) Deposits,and
(vi) Partnerships and Services.

The Company is present in 1,332 locations across the country, including 602 rural locations.
During FY2018, the Company raised approximately 4,500 crore through the Qualified
Institutions Placement (QIP) route by issuing 26,627,218 equity shares of face value of H 2 at a
premium of H 1,688 per share. This was the largest QIP of equity shares by any NBFC in India.
BFL’s loan book continued to remain strong due its robust risk management practices. The
Company’s net NPA at 0.38% is amongst the lowest in the NBFC industry. This was despite the
fact that the portfolio quality of BFL’s mortgage businesses was under pressure owing to the
stressed real estate market and elevated competition in the segment. Moreover, the SME
businesses had shown increased delinquencies immediately after the GST roll out. Thankfully,
this has now estabilised.
Prudent asset liability management (ALM) with continued focus on raising long term debts and a
judicious mix of borrowings between banks, money markets and deposits have helped BFL drop
its cost of borrowings by around 75 bps in FY2018. As of 31 March 2018, BFL’s total
borrowings stood at 61,567 crore.
India is undergoing rapid development. This means that there are millions of people who dream
of better home, better infrastructure and a better life. This opens several avenues of potentially
limitless growth in the banking and finance sector. Bajaj Finserv Lending will help grab this
opportunity to grow your business, through lending loans, financing, etc. An innovative,
competitive and thriving financial services industry in any country plays a vital role in its smooth
7
functioning and development. India's financial services sector has posited a stable growth of the
years driven by sound fundamentals, rising personal incomes corporate restructuring, financial
sector liberalization and the growth of a consumer-oriented, credit-oriented culture. This has led
to the increasing demand for financial products, including consumer loans (especially for cars
and homes), as well as for insurance and pension products. The soaring demand for financial
services offers promising investment prospects. According to the Central Statistical Organization
(CSO) data, released early this year, financial services, banking, insurance and real estate sectors
rose by 7.4 per cent in 2013-which supports a higher retail off take - 54% of the population is in
the 15-35 years age group. India consists of a dynamic and a growing middle-class class which
on a purchasing power parity basis is much larger than the entire population of the US and a
consumer credit market that is growing by more than 40% per annum. Continuous increasing in
capital expenditure by the government and private industry. Significant opportunities in the
largely untapped SME segment- which accounts for 40% of the industrial output and 35% of
India's direct exports. India's increasing and consistent growth. As per the CSO, the Indian
economy grew by an estimate of 7.4 per cent in the year 2013-14 and is expected togrow over 8
percent in the comingmonths.
Growing investment revenues across all segments in the banking and financial services sector.
Demand for banking services is growing significantly, albeit in a country where less than half of
households have a bank account. It is in the retail sector that the surge in demand is most
marked. Housing loans grew by more than 50% and loans to the retail commercial sector rose by
more than 100%. According to the weekly statistical supplement (WSS) of the Reserve Bank of
India (RBI), Indian bank loans represented a rise of 19.1 per cent as of June, 2014 while deposits
were up 14.3 per cent from the previous year. Further more , outstanding loans showed an
increase from US$ 12.39 billion to US$ 703.5 billion in the two weeks to June, 2014. The WSS
reflected that bank deposits rose by US$ 3.24 billion to US$ 975billion in the two week to June.
In 2009, there were 21 IPOs that raised US$ 4.18 billion as compared to36 IPOs in 2008 that
raised US$ 3.62 billion. As per the statistics of RBI, aggregate deposits grew by3.3% on q-o-q
basis in quarter ended June 10 as against 5.1% during the same period last year; reflecting the
relatively lower rates in term deposits Non-banking financial companies (NBFCs) are fast
emerging as an important segment of the Indian financial system. It is an heterogeneous group of
institutions(other than commercial and co-operative banks) performing financial intermediation
in a variety of ways, like accepting deposits, making loans and advances, leasing, hire purchase,
etc. They raise funds from the public, directly or indirectly, and lend them to ultimate spenders.
They advance loans to the various wholesale and retail traders, small-scale industries and self-
employedpersons.
8
NBFC are present in all competitive fields such as, vehicle financing, housing loans, leasing, hire
purchase and personal loans financing etc. NBFC's are not required to maintain cash reserve ratio
(CRR) and statutory liquid ratio (SLR). Priority sector lending norm of 40% (of total advances)
is not applicable to them. While this is at their advantage, they do not have access to low cost
demand deposits. As a result their cost of funds is always high, resulting in thinner interest
spread. But currently with surplus liquidity in the system, the cost of funds for NBFC's has
substantially eased thus improving their margins. Gradually, they are being recognized as
complementary to the banking sector due to their customer-oriented services; simplified
procedures; attractive rates of return on deposits; flexibility and timeliness in meeting the credit
needs of specified sectors; etc. On regulatory front, NBFCs have been investments in the
securities of their group/ holding/subsidiary companies. The focus of regulatory attention is on
NBFCs accepting public deposits. Banking Services According to the world's large strating
agency, Standard & Poor (S&P)'s Ratings Services, India's banking system has a high level of
stable, core customer deposits supported by the system's good franchise, extensive branch
networks, and large, yet growing, domestic savings. According to the Reserve Bank of India
(RBI)'s 'Quarterly Statistics on Deposits and Credit of Scheduled Commercial Banks', September
2011, Nationalized Banks, as a group, accounted for 52.2 per cent of the aggregate deposits,
while State Bank of India (SBI) and its associates accounted for 21.8 per cent. The share of new
private sector banks, Old private sector banks, foreign banks and Regional Rural banks in
aggregate deposits was 13.7 per cent, 4.8 per cent, 4.6per cent and 2.9 per cent, respectively.
With respect to gross bank credit also, nationalized banks hold the highest share of 51.6 per cent
in the total bank credit, with SBI and its associates at 22.1 percent and New Private sector banks
at 13.8 per cent. Foreign banks, Old private sector banks and Regional Rural banks held
relatively lower shares in the total bank credit with 5.2 per cent, 4.8 per cent and 2.5 per cent,
respectively. Another statement released by the RBI stated that bank deposits grew 13.4 per cent
to Rs60.72 trillion (US$ 1.18 trillion) in the fiscal 2011-12 (the year to March 23, 2011) while
loans and advances grew 17.08 percent to Rs 47.54 trillion (US$ 927.16 billion). Foreign
Institutional Investors in investment in equities made by foreign institutional investors (FIIs)
stood at Rs 47,935 crores (US$ 9.34billion) during the financial year ended March 31, 2012.
During the reported fiscal, foreign fund houses injected Rs 49,053 crores (US$ 9.56 billion) in
the debt market taking the collective net investments by FIIs in stocks for 2013-14, the
Government has earmarked a capital of Rs 15,888 crore (US$ 3.11 billion) to be in fused in
public sector banks, regional rural banks and other financial institutions. Apart from this, the
Government is also planning to set up a financial holding company that will raise funds for
public sector banks. Furthermore, the RBI has liberalized regulations pertaining to FCAsto
9
provide operational flexibility to Indian entities making overseas direct investments. After
satisfying stipulated requirements and conditions. According to a report by the Boston
Consulting Group (BCG) India, prepared in association with a leading industry organization and
Indian Banks Associations (IBA), Indian banking industry would be the world's third largest in
asset size by 2025 and mobile banking would become the second largest banking mode after
ATMs. Furthermore, owing to the positive eco-system of the industry and regulatory and
Government initiatives, mobile banking is anticipated to enhance from 0.1 per cent of
transactions in a 45 per cent financial inclusion base in 2010 to 34 per cent of the transactions
with 80 per cent ruralinclusion base by 2020, as per thereport.

Customer Services

Bajaj Finserv Limited (BFL) places the customer at the centre of its products, policies and
processes. The Company monitors customer interactions and provides mechanisms to its
customers to have a superior experience through the design of its product, process and service
mechanisms. It follows a customer lifecycle mapping to drive engagements and provide superior
experiences. It provides customers multi-channel engagement options across call centres, IVR,
bi-directional SMS, email, online portal, mobile applications and branches. The Company has
further enhanced its self-service mechanisms by investing in an intelligent natural-language
processing based BOT solution, which provides customers self-servicing options. It has also
strengthened its customer loyalty process through a tool called the Net Promoter Score, which
measures outcomes at different life stages of customers, thus enabling it to objectively address
areas of improvement.

Partnerships and Services

In partnership with various financial service providers, the Company offers the following
products to its customers: Life Insurance, Health Insurance, Extended Warranty, Comprehensive
Asset Care, Co-branded Credit Card, Co-branded Wallets and Financial Fitness Reports. BFL
continued to grow its Co-branded Credit Cards business with RBL Bank. The number of cards-
in-force stood at over 380,000 as on 31 March 2018. BFL entered into an strategic partnership
10
with One MobiKwik Systems Pvt. Ltd. (‘MobiKwik’) on 8 August 2017, and invested
approximately H 225 crore in the equity shares and cumulative compulsorily convertible
preference shares (CCCPS) of MobiKwik. Based on the capital structure of Mobikwik as on the
date of investment, the Company will hold approximately 12.38% of equity in Mobikwik on a
fully diluted basis post conversion of CCCPS. This partnership should enable BFL to provide
both debit and credit engagement tools for its existing customers. As a first step, the Company
has launched a digitised EMI card for its existing and new customers in October 2017.

Future Group

It’s a matter of great pride when two big names come together, to empower their consumers to
make smart choices. BFL alliance with India’s leading retail group - Future Group, to enable
customers to convert all their purchases from any of the Future Group formats into no cost EMIs,
thus ushering in a digital era of intelligent buying. Both companies worked towards enabling
every Bajaj Finserv EMI Card Holder with the ability to convert their purchases into no cost
EMIs, in real time, at the point of sale, by swiping their EMI Card at the POS machine.

Brands and Their Categories of Stores at Which EMI Card Can Be Used

Customers across 98 cities can now avail no cost EMIs on products available under Future
Group formats such as Big Bazaar, FBB, Central, Brand Factory, Home Town and Ezone from
more than 400 stores. Soon, EMI financing will be available on other Future Group brands such
as Foodhall, Easyday, as well as the online platform FabFurnish.com With this tie-up, easy EMI
financing now covers the complete spectrum of customers’ lives – from grocery and household
essentials, to fashion and accessories, from small appliances to consumer durables, and from
furniture to furnishing. This partnership has the breadth to fulfil the needs of all our customers.

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Financing Groceries

Big Bazaar is not just another hypermarket; it caters to every need of your family. For the very first
time, Bajaj Finserv EMI card customers can shop at Big Bazaar for groceries, clothes and much
more, at no cost EMIs. Customers can now divide their spends, starting from Rs. 5,000, into no cost
EMIs of up to 5 months. Big Bazaar is fast growing with 220 stores offering EMIs PAN India.
What’s more you can even buy the Big Bazaar Profit Club (BBPC) card on no cost EMIs on the
Bajaj Finserv EMI card.

Financing Clothes and Accessories

Fashion at Big Bazaar (FBB), India’s style hub is redefining affordable fashion since 2008. At FBB,
Bajaj Finserv EMI card customers can divide all they buy into no cost EMIs. Bill amounts of Rs.
5,000 and above can be divided into EMIs of up to 5 months. Currently, 50 FBB stores, PAN India,
are offering purchases on no cost EMIs.

Financing Clothes and Accessories

Central offers everything to the urban aspirational shopper and houses over 300 brands. Customers
can now shop for apparel and accessories with their Bajaj Finserv EMI card on no cost EMIs of up to
5 months. The bill must amount to Rs. 5,000 or more. Currently, EMIs are available in 31 stores
PAN India.

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Financing Clothes

Brand Factory, India's largest discount retail chain, gives Indian consumers the promise of
revolutionizing discount shopping by offering the best Indian and International brands. Customers
can now swipe their Bajaj Finserv EMI card and buy clothes on no cost EMIs over 5 months when
they shop for Rs. 5,000 and above at Brand Factory. Currently 38 stores PAN India offer EMIs.

Financing Furniture and Furnishing

HomeTown offers customers a unique, personalised shopping experience, and has grown to be
India’s biggest store in homemaking, renovation and décor. Furniture, furnishings and small
appliances are now available on easy EMIs at Home Town with Bajaj Finserv EMI card. Currently,
35 stores, PAN India, offer EMIs.

Financing Electronics

EZone houses the best of national and international electronics brands and Bajaj Finserv EMI card
customers can now buy their favourite gadgets on easy EMIs from Ezone. Currently, 42 Ezone stores
offer no cost EMIs. Every customer’s needs, made affordable.

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 INTRODUCTION ABOUT THE TOPIC

Bajaj Fiserv Limited is the holding company for the financial services businesses of the Bajaj
Group. Its insurance joint ventures with Allianz SE, Germany namely Bajaj Allianz Life
Insurance Company Limited and Bajaj Allianz General Insurance Company Limited are engaged
in life and general insurance business respectively. Its subsidiary Bajaj Finance Limited is a Non
Banking Finance Company engaged in consumer finance, SME finance and commercial lending.
Bajaj Financial Solutions Limited, a wholly owned subsidiary of Bajaj Fiserv Limited is engaged
in wealth advisory business.
In the urban areas 50% of people are taking the loan from Bajaj finance. and other finance
Because there are getting the consumer goods in EMIs facility. The customers are spending their
money for consumer durable products like TVs, Smart phones. Around the city the people are
spending amount is Rs: 50 Lacs to purchase the consumer product (varies to population in cities).

The customer was not able pay thetotal amount at the time So here, the benefit of Zero finance generates.
In this competitive era, many finance companies doing great to be superior in terms of customer service.

Banks and other NBFCs are providing easy finance to their customers but the matter arises is to
provide easy EMI ( equated monthly installment ) at zero % interest that make customer’s to
make shopping easier at no hidden cost.
If companies are charging hidden amount for their services, the customer’s will hardly purchase
with them otherwise they use other credit cards, where they seek more benefits.

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 REVIEW OF LITERATURE

1. N. Janaradhan Rao (2005), in his articles entitled, “Indian Financial

Markets”, has thrown light on the new growth drivers of retail banking. He
has accounted for the loan portfolio of the banking companies consisting
industrial loans, retail loans and other purpose loans. In the financial year
2003, the share of retail loans was 51% of the total loan disbursement,
whereas the shares of industrial loan and other loans were 13.6% and
24.4%, respectively. The industrial and retail loan segments amounted
almost to 61% of the total bank loans. The retail loans include a wide range
of financial products, such as deposit products, residential mortgage loans,
consumer durable loans, credit cards, auto finance, personal loans, loans
against equity shares, loans for IPOs (Initial Public Offerings), debit cards,
bill payment, mutual fund investment advisory services, etc. The size of the
retail market is Rs.50,000 crores (including credit cards spending of
Rs.10,000 crores). The markets for the rest of the sectors are while goods
Rs.4,000 crores (10% CAGR), auto loans Rs.75,000 crores (5% CAGR),
home loans Rs.25,000 crores (30% CAGR), personal loans Rs.4,000 corers
(10-15% CAGR). The author further states that auto finance is on the rise,
because of the low interest rates, poor urban transport in many areas and the
availability of finance for secondhand cars. In fact, on account of liberal
financing by banks, the production of passenger cars, motorbike and
scooters have a regained positive growth.

2. A.Ninan(2006), in his article “Keeping Pace with Demand”, observes

that the retail banking in India has witnessed a fast growth due to the
introduction of financial reforms. According to him, it has become broad-
based towards auto loans, housing loans and personal loans.

15
He states that NPF in respect of retail loan segment is currently at a low level of just 2%. In
2004-05, the strong growth in retail advances increased by 41.2% (Rs.77.947 corer) against the
growth of 27.9% in overall loans and advances of scheduled commercial banks. He further
points out that though there is such a heavy growth seen in retail banking, the performance of
these banks has been the worst in comparison to that of foreign banks. The scheduled
commercial banks have yielded the loans efficiency of productivity of personal loans, whereas
the foreign banks have had their turnover per employee about five times more. In case of
liquidity, the credit: deposit ratio of banks has gone up from a low 50% till years ago to about
70%. Given that about 30% of banking funds are pre- emptied as reserve requirements, the
banking system is almost on the limit of its credit generation ability, Moreover, high
government borrowing will continue to the crediting out effect. While liquidity continues to be
good, the system will have to ensure that the banking system is not lacking in funds for the
medium term. As there has been an increasing globalization marking on Indian corporate and
global financial innovations have been affecting the economy, regulation needs to be
recognized and kept pace with. This means that guidelines are to be prepared to enable banks
to vitalize some of these globally accepted, sophisticated instruments.

3. P.S.Balsubramainyam (2006), in his article “Awaiting Due Recognition”,

emphasizes on the problems of non-banking finance companies (NBFCs). He
opines that though at present, there are a few non-banking finance companies
operating in India, they are functioning effectively and the industry also seems
to have benefited greatly. Nevertheless, these companies are not keen on
accepting deposits from the public and most of them look for alternative sources
of funding. He states that NBFCS have been facing numerous problems, such as
lack of funds, interest tax, service tax uncertainties, recovery disparity, etc., to
quote some of the significant ones. In addition to these, contradictory views are
taken by the Department of Company Affairs (DCA), Reserve Bank of India
(RBI) and the Central Board of Direct

16
Taxes (CBDT), while framing regulations for NBFCS. This calls for a proper
coordination among these regulations before enacting lows. He also points out that
in a populous country like India, there is a need for micro-financing and this can be
fulfilled only through NBFCs which have provided efficient services of the
customers for many years and also have personal contracts with them.

4. 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.
This has led to an increased prosperity to borrow. He further states that
customer’s mindsets have changed. Though the Indians traditionally
hated debts until recently, now-a- days, more and more people are willing
to borrow loans to fulfill their heart’s desires for 2-wheeleers or 4-
wheelers. This has caused a boom in this segment. The younger
demographic customers between the age group of 25 to 40 are exposed to
a much better life style. The growth of middle class population as
estimated around 150-250 million is leaping at the rate of 10-12% per
annum, which has been turning towards enhancement of life style and in
the result, has helped the boom of this segment. The author further
discusses about the percentage of finance to vehicles. In the year 2004,
70% of the total cars sold in the country were through the channels of
finance companies. According to him, the car finance market has
increased at a CAGR of 20% over the last four years to over 25,000
crores in 2003-04. The percentage in respect of 2-wheelers was 40-45%
in the year 2004 through finance companies. The 2-whellers sales grew at
a CAGR of over 30% in the last four years, in the year 2003-04, nearly 5
million 2-wheelers were sold.
17
5. L.M.Bhole (2004), in his book “Financial Institutions and Markets,”
defines it as “A system under which term loans for purchases of goods
and services are advanced to be fractionally liquidated through a
contractual obligation.” The goods whose purchased are thus financed
may be consumer goods or produces or they may simply be services.
Normally, two terms-hire purchase credit and instrument credit-are used
for the same transactions. However, these two terms are technically
different. In case of hire purchase credit, the ownership of the goods in
question is not transferred to the buyer fill he clears all dues, while in
respect of installment credit, once the loan contract is signed, the
ownership is immediately transferred to the buyer. We can use these two
terms interchangeably too. Another term used in this context is consumer
credit. It is concept with a limited scope in compression with the other
two. Strictly speaking, it covers credit for financing sales and purchases
of consumer goods and services only. Hire purchase credit may be
consumer credit or commercial credit. Further, he mentions that here are
various financial institutions engaged in hire purchase credit. When the
seller provides such credit, his sources of funds may be his own capital or
borrowings from certain financial institutions. Different types of finance
companies have now- a-days entered the business of hire-purchases
finance. In addition to financing the sellers, these institutions may
directly finance the buyers too. This may be done in two ways: (1) cash
installment credit, under which cash is made directly available to the
buyer who repays it in the form of installment over a given period; (ii)
commodity installment credit, under which the buyer is allowed to
purchase goods of his choice and the financial institution opens an
accounts in his name and collects cash over a period of time. Apparently,
the hire purchase credit is available in India for a wide range of products
and services, products like automobiles, sewing machines, refrigerators,
television

18
a. sets, etc. and services like educational fees and medical fees. Most of the automobile
manufacturers have floated their own subsidiaries or associate concerns to look after the
financing of sales of their vehicles on a hire purchases basis.
i. He has discussed the terms of hire purchased credit, which vary from product to
product. Down payment varies between 10% to 25% and sometimes may even be up
to 40%. Some companies these days readily provide 75% of the invoice value on
credit in respect of acquisition of car. The period of credit is usually 12,18,24,30 or
42 months as convenient to the client. The credit is required to be repaid in monthly
or quarterly installments. Thus, hire purchase is a medium term credit. A penal rate of
interest is often charged overdue defaulted installment. As in other countries, hire
purchases financiers charge a flat rate of interest, i.e. on the entire amount of advance
and not on the reducing balance. The volume of hire-purchase credit and the facilities
to advance it have increased significantly in the recent past, but there is still a vast
scope for growth in hire purchase credit in India. The only problem in this context
may arise about the penal rate of interest, flat rates of interest on the entire amount of
advances.
6. S.Saraswath (2008) The ICFAI University Journal of Consumer Behaviour,
has brought out some of the interesting findings with reference to 2- wheeler
automobile industry and the customer satisfaction on post-sales service.
According to the survey undertaken, the consumer behavior is influenced
strongly by cultural, social, personal and psychological factors. It is an
indispensable condition upon which all market planning and marketing strategy
would be based. The study involved the process of identifying:

19
 (a) What the consumer purchases? (b) Why? (c) Where, (d) When and how. The
study has presented the information in regard to the structure and development of 2-
wheeler industry and even the data in respect of commercial vehicles, passenger
vehicles, 2-and 3-wheelers market shares, by which an attempt has been made to
indicate that there is more demand for 2-wheelers. The production trend of 2-wheelers
(all the three types) clearly shows that since 1993-94 to 2005-6, a robust growth has
taken place. The domestic sales trend also shows a continuous growth. The exports of
2-wheelers have crossed 3, 00,000 mark for the first time reaching around 3,66,407.
The growth rate is 38% during 2004-05. The major players have been Bajaj, Hero
Honda and TVS.
7. www.get approved.com/finance/car(2012) article entitled “Know the Facts 0%
Financing,” the truth behind 0% financing, it is stated that in the article that
,offering of 0% financing may inflate the price of vehicle to make up for lost
finance charges a reputable dealer allow a customer to negotiate the best possible
deal before the 0% with 0% financing the customer choice of vehicle options can
be greatly limited.

8. Vinit Kaura and Saroj Kumar Datta (2012) in their article entitled “Impact of
Service Quality on Satisfaction in the Indian Banking sector,” has revealed that
improved people process and physical evidence aspects of service quality helps
in increasing customers satisfaction .It also highlighted that financial institutions
have undergone intense competition and a change in customer expectation over
the last few years. Intense competition and endlessly evolving customer demand
have led Indian banks to identify drivers of customer’s satisfaction and loyalty
.they also strongly emphasized that customer’s satisfaction is key for survival in
the market.

20
 OBJECTIVES OF THE STUDY

➢ To ascertain the satisfaction level of customers towards Bajaj Finserv Retail EMI Card.

➢ To study the Concept of Bajaj Finserv Retail EMI Card.

➢ To identify the stores at which Retail EMI Card can be used.

21
 RESEARCH METHODOLOGY

DATA SOURCES

Research is based on primary data as well as secondary data. Secondary data can be used only for the
reference. Research has been done by primary data collection, and primary data has been collected
personally. The secondary dats has been collected through various journals and websites. The annuals
report of the firms was a great help in collection of necessary information.

SAMPLINGMETHODOLOGY;

• Sampling technique:

Initially, a rough draft was prepared keeping in mind the objective of the research. The
sample was selected randomly irrespective of them being investors or not or availing the
service or not. It was also collected though personal, by formal and informed talks and
through filling up the questionnaire prepared. A pilot study was done in order to know the
accuracy of the Questionnaire. The final Questionnaire was arrived only after certain
important changes were done. The data has been analysed by using mathematical &
statistical tool. Thus, the sampling come out to be judgemental and convenient.
• Sampling Unit:
The respondent who were asked to fill out questionnaires are the sampling units. These
comprise of employees of MNCs, Govt. Employees, Self- Employed, salaried etc.

22
 • Sample Design:

Data has been presented with the help of pie charts.

• Sample area:

The area of the research was at BIGBAZAAR ,INDERLOK, New Delhi

RESEARCH DESIGN:

A research design is the blue print of the study. It is the arrangement of conditions for collection
and analysis of data in a manner that aims to combine relevance to the research purpose with
economy in procedure. Research design is the conceptual structure within which research is
conducted. It is the overall operational pattern or framework of the project that stipulates what
information is to be collected from which sources by which procedure.

After the objective of the study has been clearly stated, the next step in formal research
. project is to determine the sources from which the data is required to be collected
The data collection is an interesting aspect of the study. For the purpose of achieving data
effectively the information consist of two kinds of data.

Sample Size :

The sample size was restricted to only 100 people, which comprised of mainly people from different
reason of Delhi, NCR due to time constraints

23
 • Primary Data.
• Secondary data.

The primary data are those, which are collected freshly and for the first time, from the customer
directly.
The secondary data are those which have already been collected by someone or else which have
been passed through statistical process.

Sampling Technique:

The sampling technique used in this survey is random sampling. First a sample of 100
respondents was from the population of BIGBAZAAR, INDERLOK , Delhi.

Collection of Primary data:

Primary data has been collected directly from the customers of various age groups by using the
Questionnaire method. Customers are often reluctant to take the time to respond the surveys.
For this, the questionnaire is made interesting, objective, unambiguous and easy to complete
truthfully and completely. In interview, oral discussion is used as a tool for data collection.

Secondary data

These are collected from the compendiums, journals, annual reports, manuals, organization charts,
materials from net and the theoretical concept compiled from various books has been properly
verified for the relevance of the study.

Sometime haven’t got a clue of the customer’s perceptions but think they have. Another situation
is when the organization don’t have clue of their customers perception and don’t care either the
organization may believe that it is in a monopoly situation and its customers can’t go elsewhere.

Sometimes organizations believe that it know best what customer should want and therefore
supply them with a centrally designed product. If resultant product or service has defects, then it
is perceived to be a problem for the customer.

Some orgs solicit customer feedback or it way whether they like it or not and then do nothing
about it. Finally we come to the point where we realize how important customer feedback is in the
case of organizations, which helps the orgs to determine how efficiently it is solving the customer
and determine customer satisfaction.

24
 According to Kotler “Customer satisfaction is the level of a person felt state resulting from
comparing a products perceived performance in relation to the person’s expectations”. Thus
satisfaction levels are a function of the deference between the perceived performance and
expectation. A customer one of the three board levels of satisfaction as follows. If performance
fails short of expectations customer if dissatisfied If performance matches expectations/customer
is satisfied. If performance is grater then expectations customer is highly satisfied Pleased or
delighted.

25
 DATA ANALYSIS

1. Which language is preferred by the customers?

LANGUAGE PREFERRED NO. OF RESPONDENTS

English 14
Hindi 86

NO. OF RESPONDENTS

English
Hindi

Interpretation

Most of the people in India uses their regional language but if they have to talk to others then
they uses Hindi. The above data shows 86% of respondents prefer to talk in Hindi and 14% used
to talk in English.

26
 2. What is the Occupations of the customers?

OCCUPATION NO.OF RESPONDENTS

Salaried 40

Govt. employee 10

Business 30

Others 20

NO.OF RESPONDENTS

Salaried
Govt. employee
Business
Others

Interpretation

The customers out of which 40% were salaried,10% were Govt. Employee,20% were indulge in
business,15% were homemaker, Students were 10% and others 5%.

27
 3. Are you Bajaj’s existing customer?

EXISTING NO.OF
CUSTOMER RESPONDENT

Existing 33

Non-existing 67

NO.OF RESPONDENT

Existing
Non-existing

Interpretation

As every company has their own existing customers and thus the Bajaj has also their own
existing customer with 33% as the above data shows and 67% of the customers were not Existing
Customer of Bajaj Finserv Limited.
28
 4. Is Customers were known about the Bajaj’s Retail EMI card facility?

RESPONSE NO.OF
RESPONDENTS
Yes 60

No 40

NO.OF RESPONDENTS

Yes
No

Interpretation

The data shows that 60% of respondents are aware about Bajaj Retail EMI card and 40% were
not aware about it.

29
 5. Is customers are Satisfied with the EMI provided by Bajaj Finserv Retail EMI
Card?

EMI PROVIDED NO. OF RESPONDENTS

YES 75
NO 25

NO. OF RESPONDENTS

YES
NO

Interpretation

The data shows that 75% of respondents are satisfied with the EMI schemes offered by Bajaj
Finserv and 25% of the customers are not satisfied with Bajaj Finserv EMI Schemes.

30
 6. What are the yearly expenditure in repairing and service of the customers?

YEARLY EXPENDITURE NO. OF RESPONDENTS

500-1000 30
1000-1500 20
1500-2000 40
2000-2500 10

YEARLY EXPENDITURE
500-1000
1000-1500
1500-2000
2000-2500

Interpretation

The data shows that people who have yearly expenditure in repairing andservice is between
1500-2000 have highest expense ratio with 40% , the customers having yearly expenditure
between 500-1000 have 30% expense ratio, the customers having yearly expenditure between
1000-1500 have 20% expense ratio and the customers having yearly expenditure between 2000-
2500 have 10% expense ratio.

31
 7. Is customers are Satisfied with all-risk policy provided by Bajaj Finserv Retail EMI
Card Services?

SATISFACTION NO. OF RESPONDENTS

YES 40
NO 60

NO. OF RESPONDENTS

YES
NO

Interpretation

The data shows that 60% of respondents are satisfied with the all-risk policy provided by Bajaj
Finserv Retail EMI Card Services and 40% respondents are dissatisfied with the all-risk policy
provided by Bajaj Finserv Retail EMI Card Service.

32
 8. Which days of the week customers prefer to shop?

Days No. of respondents

Week Days 26

Weekends 74

No. of respondents

Week Days
Weekends

Interpretation

This data shows that 74% of the customers prefer to shop on week days and 26% of the
customers prefer to shop on weekends.

33
 9. Is Customers have heard of any other company with CD products,
Groceries financing at 0% interest rate?

Response No. of respondents

Yes 10

No 40

Not even Bajaj 50

No. of respondents

Yes
No
Not even Bajaj

Interpretation

10% customers have heard of any other company with CD products, Groceries financing at 0%
interest rate, 40% customers did not hear of any other company with CD products, Groceries
financing at 0% interest rate and 50% of customers don’t know even about Bajaj Finserv with
CD products, Groceries financing at 0% interest rate.
34
 10. What are the Sources through which customers came to know about
Bajaj Offers and schemes.

Response No. of respondents

Newspapers 24
Internet 19
Neighbours 6
Banners outside the stores 51

No. of respondents

Newspapers

Internet

Neighbours

Banners outside the

stores

Interpretation

This data shows that 51% of the respondents came to know about Bajaj’s offers and schemes
through banners outside the stores,24% through newspapers,19% through Internet and 6%
through neighbours .

35
 11. Is Customers satisfied with the Bajaj schemes and offers availed
on different products?

Response No. of respondents

Satisfied 62

Dissatisfied 38

No. of respondents

Satisfied
Dissatisfied

Interpretation

This data shows that 62% of the respondents are satisfied with the Bajaj schemes and offers
availed on different products 38% are dissatisfied with Bajaj schemes and offes.

36
 12. Is Customers satisfied with the FOS/ executives present in the stores?

Response No. of respondents

Satisfied 69
Dissatisfied 31

No. of respondents

Satisfied
Dissatisfied

Interpretation

This data shows that 69% of the respondents are satisfied with theFOS

Executive present at the Bajaj Stores and 31% of the respondents are dissatisfied with the FOS

Executive present at the Bajaj Stores as the FOS/Executives play a very important role.

37
 13. Is Customers are satisfied with the Documentation process of getting
approval in 10 Minutes?

Response No. of respondents

Satisfied 75

Dissatisfied 25

No. of respondents

Satisfied
Dissatisfied

Interpretation

This data shows that 75% of the respondents are satisfied with theDocumentation
process of getting approval in 15 Minutes and 25% are dissatisfied with the documentation
process of getting approval in 15Minutes.

38
 14. According to the customers which among these options
would be convenient to pay entire amount.

NO. OF MONTHS No. OF RESPONDENTS

3 23
5 47
9 20
12 10

NO. OF MONTHS

1
2
3
4

Interpretation

As per the above pie chart 47% of people want to avail the EMI options for 5 Months,20% for 9
months,10% for 12 months and 23% for 3 months.

39
 15. Are Customers satisfied with the Bajaj Finserv 0% interest EMI Card?

Response No. of respondents

YES 77

NO 23

No. of respondents

YES
NO

Interpretation

A study of above data 77% customers response that Bajaj finance really provides durable
goods,groceries at 0% interest rate and 23% customers did not response that Bajaj finance really
provides goods, groceries at 0% interest rate.

40
 16. Are Customers Satisfied with the benifits associated with the Bajaj
Retail EMI Card?

RESPONSE NO. OF
RESPONDENTS
YES 76
NO 24

NO. OF RESPONDENTS

YES
NO

Interpretation

76% of the customers are satisfied with the benifits associated with the retail Bajaj EMI Card and
24% are not satisfied with the benifits associated with the retail Bajaj EMI Card

41
 FINDINGS

➢ 75% Customers are satisfied with the EMI schemes offered by Bajaj Finserv.

➢ 60% of respondents are satisfied with the all-risk policy provided by Bajaj Finserv
Retail EMI Card Services.

➢ 62% of the respondents are satisfied with the Bajaj schemes and offers availed on
different products.

➢ 47% of people want to avail the EMI options for 5 Months is convenient to pay all the
due amount. They has to take another finance/loan after tenure.

➢ 75% of the respondents are satisfied with the Documentation process of getting
approval in 15 Minutes.

➢ 69% of the respondents are satisfied with the FOS /Executive present at the Bajaj
Stores.

➢ 76% of the customers are satisfied with the benifits associated with the retail Bajaj EMI
Card.

➢ 77% customers response that Bajaj finance really provides durable goods, groceries at
0% interest rate

42
➢ My suggestion is please decrease the CIBIL score 750 to 700 because lot of people are
not able to get loan.

➢ Give the loan to the people who came from the other city or states.

➢ Please do the marketing of the Bajaj EMI card as people are less aware about Bajaj card
and not aware from where they have to apply to get the card.

➢ Provide more schemes for the customer by which they can use the card in future. .

➢ Provide a counter for the FOS to make Bajaj card in the malls.

➢ Most of the problems were regarding documentation and serial no issue. So according to
me I would like to suggest that FOS should check and ask all the details before approving
the card.

➢ As many of the FOS are new so according to me there must be some meeting and
problem solving sessions for all FOS in a week or month and should ask their problems
which they are facing.

➢ The FOS should always need to be motivated. Some small reward should be given them
to keep motivating them so that they work on time for rewards.

43
 LIMITATION

1. The first limitation I faced is in getting the co-operation of the customers. Many of the
respondents did not agree to meet with me if someone agrees to meet but nor ready to share
their information.

2. The behavior of the customer is unpredictable which may result in the lacking of accuracy in
the data.

3. As the sample size of the survey was so small and comprise of only 100 customers, the
results may have some prone to errors.

44
 CONCLUSIONS

➢ After study about the “BAJAJ FINSERV ” I found that company enjoys a monopoly in this
segment i.e. Retail Finance. No other company had such huge sales work force, which Bajaj
Finserv lending had built 0% interest finance of consumer and lifestyle product has getting a
tremendous success.

➢ Bajaj Finserv has very strong sales team in loan sector because it’s very challenging
task to satisfy educated customers.

➢ The project gives an insight to the awareness rate in the population of city.

➢ Due to Bajaj Finserv lending, credit card sector gets boost up, people started to shows to
disposal of their income

➢ Bajaj Finserv now getting counter competition from their competitor specially by Capital
first, Home credit, etc

45
 REFRENCES/BIBLIOGRAPHY

BOOKS

Gerard Emilien - Consumer Perception of Product Risks and Benefits-Third revised

edition-Published Year 2007

Michael D. Johnson, Anders Gustafsson- Improving Customer Satisfaction, Loyalty, and Profit:
An Integrated Measurement and Management System- Published Year August 1st 2000.

Baboo Kureemun, Robert Fantina - Your Customers' Perception of Quality: What It Means to
Your Bottom Line and How to Control It.
1st Edition- Published April 25, 2011.

Robert Woodruff - Know Your Customer: New Approaches to Understanding Customer Value
and Satisfaction –Published June 3rd 1996.

JOURNALS AND ARTICLES

Anderson, E. W., Fornell, C., & Lehmann, D. R. (1994). Customer satisfaction, market
share, and profitability: Findings from Sweden. The Journal of marketing, 53-66.

Fornell, C., Johnson, M. D., Anderson, E. W., Cha, J., & Bryant, B. E. (1996). The American
customer satisfaction index: nature, purpose, and findings. the Journal of Marketing, 7-18.

Churchill Jr, G. A., & Surprenant, C. (1982). An investigation into the determinants of
customer satisfaction. Journal of marketing research, 491-504.
Cardozo, R. N. (1965). An experimental study of customer effort, expectation, and satisfaction.
Journal of marketing research, 244-249
Rust, R. T., & Zahorik, A. J. (1993). Customer satisfaction, customer retention, and market share.
Journal of retailing, 69(2), 193-215.

WEBSITES

www.bajajfinserv.in
www.shodhganga.com
 ANNEXURE

QUESTIONNAIRE

1. Which language is preferred by the customers?

a) Hindi b) English

2. What is the occupations of the customers?

a) Salaried b) Govt. Employee

c) Business men d) Other

3. Are you Bajaj’s existing customer?

a) Yes b) NO

4. Is customer were are known about the Bajaj’s Retail EMI card facility?

a) Yes b) NO

5. Is Customer’s satisfied with the EMI provided by Bajaj Finserv Retail

EMI card?

a) Yes b) NO

6. What are the yearly expenditure in repairing and service of the

customers?

a) 500-1000 b) 1000-1500
c) 1500-2000 d) 2000-2500
7. Is customers are satisfied with all risk policy provided by Bajaj Finserv
Retail EMI card services?

a) Yes b) NO

8. Which days of the week customers prefer to shop?

A) Week days b) Weekends

9. Is customers have heard of any other company with CD products,

Groceries financing at 0% interest rate?

a) Yes b) NO

10. What are the sources through which customers came to know about
Bajaj Finserv offers and schemes?

a) Newspapers b) Internet
c) Neighbour d) Banners outside the stores

11. Is customers satisfied with the Bajaj schemes and offers availed on
different products?

a) Satisfied b) Dissatisfied

12. Is customers satisfied with the FOS/ executives present in the stores?

a) Satisfied b) Dissatisfied
13. Is customers are satisfied with the documentation process of getting
approval in 10 minutes?

a) Satisfied b) Dissatisfied

14. According to the customers which among these options would be

convenient to pay entire amount?

a) 3months b) 5months
c) 9months d) 12months

15. Are customers are satisfied with the Bajaj Finserv 0% interest EMI
card?

a) Yes b) NO

16.Are customers satisfied with the benefits associated with the Bajaj
Retail EMI card?

a) Yes b) NO