SR.

NO TABLE OF CONTENT PAGE

NO.
Executive Summary 1.
Introduction 2-10
1.1 Objective Of Project
1.2 Learning Experience
1.3 Company Profile
1.4 Introduction Of NBFC
1.5 Role Of NBFC
1.6 Services Provided By NBFC
Bajaj Finserv 11-12
2.1 Introduction Of Bajaj Finserv
2.2 History
2.3 Journey Of Bajaj Finserv
2.4 Objectives Of Bajaj Finserv
2.5 Vision
2.6 Mission
2.7 Roles and Responsibilities of Bajaj Finserv
2.8 Culture Of Bajaj Finserv
Consumer Loan 23-27

3.1 Consumer Durable

3.2 Digital Products
3.3 Eligibility Criteria
Loan Process 28-39
4.1 New Customer
4.2 Existing Customers
4.3 EMI Card Holder
EMI Card 40-46
5.1 How to apply for Loan
5.2 Calculation of EMI
Competitors 47-49
6.1 Capital First
6.2 Reliance Capital
SWOT Analysis Of Bajaj Finserv 50-58

Recommendation 61
Conclusion 62
Bibliography 63
 CHAPTER NO.1

INTODUCTION

LEARNING EXPERIENCE

1
The following contains my experiences and learning at Bajaj Finserv during internship.

1. Dealing with customer:

I got to know about how to deal with customers, how to offer

them different schemes and effectively answering their queries. Initially it was
difficult to explain the new customers about the process and answer their questions.

2. Pitching customers about other products:

Other products include extended warranty, are being provided

by Bajaj Finserv. I got know how to approach customers and how to pitch them for
other products.

3. Check Balance:

I learned how to check balance in the EMI card

4. Process for granting loan:

• Documentation: documentations like Credit Card, PAN card etc. and

documents required in different cases.

Example: If a customer is resides in a house provided by the company then his/her

allotment letter’s photocopy is required.

• Various requirements: selection of surrogates various slabs are those

according to which the customer gets the approval.

5. How to prepare Documents of loan process:

2
 What all documents are needed to prepare for different
customers. Documents of different customers are different how to prepare them. How to
prepare Delivery Order (DO), Disbursement Memo (DM), Loan term sheet etc.

6. Loan Process in mobile phone:

When there used to be too many customers to be taken care of that

time I learned to do half of the loan process by the mobile phone with help of Bajaj Galaxie
app.

1.2 Company Profile:

3
 What started off as a sugar manufacturing factory in 1931
has grown to become one of the country’s largest business houses? With activities that
encompass a whole range of industries, spanning automobiles (two-wheelers and three
wheelers), home appliances, lighting, iron and steel, insurance, travel and finance.

Bajaj Finserv Leading 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
NBFC’s in the market catering to more than 5 million customers across country. Apart from
being a well-recognised organisation, 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.

1.3 Introduction Of NBFC

A Non-Banking Financial Company (NBFC) is a company

registered under the Companies Act, 1956 of India, engaged in the business of loans and
advances, acquisition of shares, stock, bonds hire-purchase, insurance business or chit
business but does not include any institution whose principal business includes agriculture,
industrial activity or the sale, purchase or construction of immovable property.

The working and operations of NBFCs are regulated by the Reserve Bank of India (RBI)
within the framework of the Reserve Bank of India Act, 1934 and the directions issued by it.

A Non-Banking Financial Company (NBFC) is a company registered under the Companies

Act, 1956 of India, engaged in the business of loans and advances, acquisition of shares,
stock, bonds hire-purchase, insurance business or chit business but does not include any

4
institution whose principal business includes agriculture, industrial activity or the sale,
purchase or construction of immovable property.

The working and operations of NBFCs are regulated by the Reserve Bank of India (RBI)
within the framework of the Reserve Bank of India Act, 1934 and the directions issued by it.

1.4 Roles of NBFC:

As recognized by the RBI the specific roles of a Non-Banking Financial Company are

• Development of sectors like transport and infrastructure

• Substantial employment generation

• Help and increase wealth creation

• Broad base economic development

• To finance economically weaker section

• Huge contribution to state exchequer

• Irreplaceable supplement to bank credit in rural segments, major thrust on semi-urban,

or rural areas and first time users

• Mobilisation of resources-It converts savings into investments

• Capital information-Aids to increase capital stock of company

• Aid in employment generation

• Help in development of financial markets

• Help in attracting foreign grants

• Helps in breaking the vicious circle of poverty by serving as government’s instrument

5
NBFCs is spread all across the country with more than 13000+players registered with RBI.
Approx. 570 NBFCs are authorised to accept public deposits. Accepts financing includes
providing finance for commercial vehicles, passenger’s laws, multi-utility vehicles.
Construction equipment and consumer durables.

1.5 Services Provided By NBFC’s

NBFC refers to Non-Banking Financial Company; these institution provide multiple financial
service unlike banks which provide limited financial services. Given below is the services
provided by the NBFC-

1. Underwriting

2. Stock Broking

3. Asset Management

4. Merchant Banking

5. Portfolio Management Service

6. Venture Capital Financing

7. Foreign exchange related business

8. Factoring and leasing related business

9. Credit Cards services

10. Giving Credit Rating to other companies

Apart from above services NBFC provide variety of servicing depending upon the regulations
of the country regarding such institution because some countries have strict policies regarding
NBFC , as well as need of the company which is going to NBFC.

6
1. Underwriting

Underwriting is the process that a lender or other financial service uses to assess the
creditworthiness or risk of a potential customer. Underwriting also refers to an investment
banker's process of packaging and selling a security on behalf of a client.

2. Stock Broking

NBFC does the work of stock broking, in its they buy and sell stocks and other securities
for both retail and institutional clients through a stock exchange or over the counter in
return for a fee or commission.

3. Asset Management

Asset management is the direction of a client's cash and securities by a financial services
company, usually an investment bank. The institution offers investment services along
with a wide range of traditional and alternative product offerings that might not be
available to the average investor. The account is held by a financial institution and
includes checking writing privileges, credit cards, debit cards, margin loans, the
automatic sweep of cash balances into a money market fund and brokerage services.

4. Merchant Banking

A merchant bank is a company that deals mostly in international finance, business loans
for companies and underwriting. These banks are experts in international trade, which
makes them specialists in dealing with multinational corporations. A merchant bank may
perform some of the same services as an investment bank, but it does not provide regular
banking services to the general public and it performs all the activities only for the
companies conducting overseas business and to the HNWI (High Net Worth Individuals).

7
 5. Portfolio management service

Portfolio management is the art and science of making decisions about investment mix
and policy, matching investments to objectives, asset allocation for individuals and
institutions, and balancing risk against performance. Portfolio management is all about
determining strengths, weaknesses, opportunities and threats in the choice of debt vs.
equity, domestic vs. international, growth vs. safety, and many other trade-offs
encountered in the attempt to maximize return at a given appetite for risk

6. Venture capital financing

Venture capital is financing that investors provide to start-up companies and small
businesses that are believed to have long-term growth potential. Venture capital generally
comes from well-off investors, investment banks and any other financial institutions.
However, it does not always take just a monetary form; it can be provided in the form of
technical or managerial expertise.

7. Foreign exchange related business

Foreign exchange is the exchange of one currency for another or the conversion of one
currency into another currency.

Foreign exchange also refers to the global market where currencies are traded virtually
around the clock. The largest trading centres are London, New York, Singapore and
Tokyo. The term foreign exchange is usually abbreviated as "forex" and occasionally as
"FX."

8. Factoring and leasing related business

A Financing method in which a business owner sells accounts receivable at a discount to

a third-party funding source to raise capital. One of the oldest forms of business financing,
factoring is the cash management tool of choice for many companies. Factoring is a very
common in certain industries, such as the clothing industry, where long receivables are part
of the business cycle.

8
 9. Credit card services:

A credit card is a card issued by a financial company giving the holder an option to
borrow funds, usually at point of sale. Credit cards charge interest and are primarily used
for short-term financing. Interest usually begins one month after a purchase is made, and
borrowing limits are pre-set according to the individual's credit rating.

10. Giving credit ratings to other companies

NBFC gives credit ratings to other companies. These ratings are like ‘AAA’ which refers
to that company is conducting excellent work and then the ratings reduces to ‘AA’, ‘A’,
‘BBB’ etc.

All the above are the functions performed by the NBFC’s.

9
 MR. RAHUL BAJAJ
CHAIRMAN- BAJAJ FINSERV

10
2.1 Introduction Of Bajaj Fiserv

Bajaj Finserv, a part of Bajaj Holdings & Investments Limited, is an

Indian financial services company focused on lending, asset management and wealth
management and insurance The Company through its joint ventures and subsidiaries employs
over 20,000 employees and has established a nationwide presence across over 1400 locations.
And there is a big finance organisation in India. The company is currently engaged in
consumer finance businesses, life insurance, and general insurance and has plans to expand
its business by offering a wide array of financial products and services in India. Apart from
financial services, Bajaj Finserv is also active in wind–energy generation. Bajaj Finserv.
Background

The financial services and wind energy businesses were transferred to Bajaj Finserv Limited

(BFS) as part of the recently concluded demerger from Bajaj Auto Limited, approved by the
High Court of Judicature at Bombay by its order dated 18 December 2007. The demerger was
effective on 31 March 2007

BFS is engaged in life and general insurance businesses through its joint ventures with
Allianz SE namely Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General
Insurance Company Limited

Bajaj Holdings has been registered as a Non–Banking Financial Company (NBFC) under the
Registration No. N–13.01952 dated 29 October 2009 with Reserve Bank of India (RBI). The
company is classified as a Systemically Important Non–deposit taking NBFC as per RBI
Regulations.

11
2.2 History of Bajaj Finserv:

Mr. Jamnalal Bajaj is the founder of the company. Its

headquarters is in Pune, Maharashtra. This company has a great history. It was a Wednesday
when the company was incorporated as Bajaj Auto Finance Limited on 25 March, 1987. In
the same year on 20 October it became a deemed public company u/s 43A (1) of the
Companies Act 1956. On 24 September, 1988 it was registered as a Public Limited
Company. On 5 March, 1998 it was registered with RBI as a Non-Bank Company. In 199495
the company had their initial Public issue of Equity shares and was listed on the BSE and
NSE.

With walking the talk in its DNA it crossed Rs.10 Crore Profit Before Tax milestone in 1995.
In 1996, the company crossed the Rs.100 Crore landmark of Shareholders' Funds. Its first
eleven years were focused on providing Two and Three Wheeler finance and setting up our
pan-India network. Hard work and accumulated learning of their first decade has served
people in good stead throughout their journey.

Towards the end of 1900s liberalisation was paying off rich dividends and consumerism on
the rise like never before in India. When it ventured into the then little known business of
Durable Finance in 1998-99, little did itself know that in less than a decade it will become
integral to India's snowballing electronic devices dream. Little did anyone else expect the
company to chart?

12
 Figure : Corporate Hierarchy

RAHUL
BAJAJ
Chairman

NANOO SANJEEV ANANT

PAMNANI BAJAJ DAMIE
Vice Chairman Managing Company
Director Secretary

13
 Table 1: Management Committee

NAME DESIGNATION

Rahul Bajaj Chairman

Nanoo Pamnani Vice Chairman

Sanjeev Bajaj Vice Chairman

Rajeev Jain Managing Director

Anant Damie Company Secretary

Madhur Bajaj Director

Rajeev Bajaj Director

D.J. Balaji Director

14
2.5 Vision:

Bajaj Finserv has a vision to become a full-fledged financial services company and
the financial partner to the Indian consumer and help them across his financial needs be it
finance, be it investment management, be it protection or post retirement support, throughout
his life cycle. Bajaj Finserv is a consumer focused company with the emphasis on profitable
growth and the operational efficiency to deliver best results to all its stakeholders.

2.6 Mission:

Bajaj Finserv has a mission to provide maximum products on EMI. They want to
help people so that people are able to fulfil all their needs wishes within no time.
Bajaj Finserv desires to do it with earning profit.

2.7 Roles and Responsibilities Of Bajaj Finserv

As Bajaj Finserv is a service provider they have certain roles

and responsibilities to be performed by them. In this the employees of the company who are
working as an in-store representative play a vital and the most important role. They have big
responsibility to do the whole process of providing loan. The following are the roles and
responsibilities.

1. Collect and Verify documents

2. Input Information in the system

3. Prepare DO (delivery order) and the necessary documents

4. Taking signatures on the appropriate Documents

• Signature on KYC documents

• Signature on all the 3 ECS forms etc.

15
 • Signature on the Loan term sheet, Char slip, Application Form.

5. To click a picture of the customer through the Bajaj Galaxie app. Few years back the
customers had to attach a passport size photo but now the photo is been clicked in the
store itself at the time of purchase.
6. Prepare file of the customer and courier the same.

Customer’s File

16
2.8 Culture Of Bajaj Finserv:

The way a company organizes itself, the policies, and the

conduct of the staff all provide an insight into the work culture it follows. Simple things like
the way its people sit at their desks or the way the leadership team interacts with them are
indicative of the larger ethos of the organisation.

And there is a stark difference in how companies with different cultures work and are
perceived by those within and outside it.

Traditional work culture, on the other hand, involves companies following a well-defined
hierarchy – where the head of the organisation is the final authority and employees work in a
disciplined environment, playing a limited role in the company’s decision making process.

This discipline is considered vital to the way the firm functions and history has shown several
companies succeeding following this. GE (General Electric) is perhaps the best example of
such an organisation.

Technology the game-changer

Most companies that have existed over the last several decades followed the traditional form
of operations, but things changed with the advent of technology – first led by the Internet and
then followed by mobile phones and social media.

India and the economies of other developing nations grew rapidly in the last decade, giving
rise to a more relaxed open culture where employee satisfaction and work environment was
an important reason why people chose to work at a company. Businesses in turn had to
rework their models to ensure they retained the best talent.

Traditional barriers were broken down, giving rise to transparency and open spaces for
employees to interact and let ideas flow irrespective of hierarchies. But ushering in openness
did not mean organisations looked to discard traditional culture altogether.

The best of both worlds

The real winners are perhaps those organisations that combine the virtues of both cultures.

Companies are waking up to this idea now, but adapting is easier said than done.

So how then can companies achieve this?

17
Target setting: Businesses need to set short-term and long-term goals to ensure that
employees are productive. Setting targets allows managements to measure performance and
conduct reviews. This defines a structure and yet allows companies to do achieve more.

At Bajaj Finserv, targets are set by the company and employees are offered quarterly
incentives to achieve them. As the financial year begins, all team members plan their
objectives with the senior management. Those who are part of the senior management then
make an annual operating plan and projects to achieve these objectives. This may be
construed as a traditional work culture method.

However, once the target is set, the execution is left to every employee to achieve the target.
Adequate support is provided to them to help achieve their objectives. Recognition, by means
of awards for outstanding performances at every level, comes to those who work for it. Top
performers are awarded with trips abroad with the focus being on encouraging people to rise
beyond their key result areas (KRAs). This falls under the tenets of open culture.

Listening organisation: An open work culture means building a listening organisation.

Breaking down cubicles or cabins or organising events to get people together are actions that
are needed. However, the most important thing is to let employees know that the company
listens to them.

Timely feedback from employees must be converted into projects to ensure employee
satisfaction. There is no reason for any business to simply hear complaints and feedback, and
not act on them.

At Bajaj Finserv, we believe that employees should adopt self-management to survive and
thrive. Top level management and leaders must share ideas and take suggestions from the
team. The idea is to let roles and responsibilities to fluctuate. Another important aspect of
building a listening organisation is transparency.

We hold Confluence, our regular town hall-style meetings where employees can ask
questions and discuss issues with the top management directly or anonymously.

Work-life balance: The interests of employees have to be taken into account to ensure
adequate attention span and productivity. An open environment helps in meeting the
objective of an optimal work-life balance. Employee engagement initiatives often help in that
context.

18
Besides offering incentives to motivate achievements, Bajaj Finserv has programs such as
Fulcrum and Ruminate, which are vital to the learning and development of our people.

Employees who excel in dynamic work environments and excel are rewarded under the
Excelsior League. Going beyond the work-related growth of its employees, Bajaj Finserv also
conducts a number of activities to help people grow outside of the work space.

Talent hunts such as Talentino and cultural events such as Family Day and Children’s Day
are annual features where the organisation involves not just the employees but also their
loved ones in fun events.

And it is perhaps the balance between both work cultures – Traditional and Open – that helps
Bajaj Finserv be counted as the preferred workplace for the best talent from all around the
country.

19
 Chapter 2 :

Consumer loan

20
 As we are learning since the first chapter the consumer loans provided by Bajaj Finserv.
What is Consumer Loan? In simple words consumer loan is a debt that a person incurs for
buying goods. It is an amount of money lent to an individual (usually on a no secured basis)
for personal family or household purposes.

Consumer loans are monitored by government regulatory agencies for their compliance with
consumer protection regulations such as the Truth in Lending Act. Consumer loans are also
called as Consumer Credit or Consumer lending. This consumer loan include two types of
products Consumer Durables and Digital Products.

Products

Consumer Durables Digital Products

3.1 Consumer durables

In economics, a durable good or a hard good is a good that does

not quickly wear out, or more specifically, one that yields utility over time rather than being
completely consumed in one use. Items like bricks could be considered perfectly durable
goods because they should theoretically never wear out. Highly durable goods such as

21
refrigerators or cars usually continue to be useful for three or more years of use, so durable
goods are typically characterized by long periods between successive purchases

3.2 Digital products

Digital products commonly refers to the products that are available in soft form i.e. the
products which are available online. Example; E-book, video tutorial, digital media, internet
television, downloadable music. But digital products in terms of consumer loan refers to the
products which gives output on its screen.

Consumer Durables:

In simple words consumer durables means manufactured items, typically

cars or household appliances, that are expected to have a relatively long useful life after
purchase.
In economics, a durable good or a hard good is a good that does not quickly wear out, or more
specifically, one that yields utility over time rather than being completely consumed in one
use. Items like bricks could be considered perfectly durable goods because they should
theoretically never wear out. Highly durable goods such as refrigerators or cars usually
continue to be useful for three or more years of use, so durable goods are typically
characterized by long periods between successive purchases.

List of Consumer Durable Products:

1. Refrigerators

2. TV (LED, LCD)

3. Camera

4. Washing Machine

5. Micro wave oven

6. Dish Washer

7. Cooler

8. Air Conditions (AC)

22
 9. Air Purifier

10. Cloth Dryer

11. Cooking Range

12. Home Theatre

13. Vacuum Cleaner

14. Music System

15. Flour Mill

16. Generator

The above list represents the Consumer Durable products on which Bajaj Finserv provides
consumer loans.

Digital Products

Digital products commonly refers to the products that are available in soft
format i.e. the products which are available online. Example; E-book, video tutorial, digital
media, internet television, downloadable music. But digital products in terms of consumer
loan refers to the products which gives output on its screen. List of Digital Products

1. Mobile (Smart phones)

2. Laptops

3. PC- Desktops

4. Luxury Watches

23
3.3 Eligibility Criteria

Eligibility criteria in this point we will discuss the eligibility of the customer whether he/she
is eligible for granting loan. This eligibility differs according to the type of product the
customer desires to purchase. As discussed earlier there are two types of products Consumer
Durables and Digital products.

Eligibility for Consumer durables:

1. Age 21 to 60

2. He/she should be employed

3. CIBIL score 775

4. Minimum Rs.5000 balance in Bank account

5. Active transactions in Bank Statement

6. Address of current Residence and Address printed on address proof displayed show
be same.

Eligibility for Digital Products:

1. Age 23 to 60

2. He/she should be employed

3. CIBIL score 775

4. Minimum Rs.5000 balance in Bank account

5. Active transactions in Bank Statement

6. Address of current Residence and Address printed on address proof displayed show
be same.

24
CHAPTER NO.3

LOAN PROCESS

25
The process done by the Bajaj Finserv representative differs according to the customer. In this
chapter we are going to learn what are the steps followed by the employees of bajaj Finserv
to apply for loan. There are different steps followed by them for different customers.

START

Customer is pitched

Customer

YES No

Customer have
taken credit before

YES NO

Ask customer to give Ask the customers

some documents such occupation, mode of down
as ID proof, Address payment, resides own
proof, cancelled residence or on rented
cheque etc. residence.

26
Application form is filled by
the representative to get the
approval

Executive have to complete the file or loan process along

with ECS Mandate Form, loan term sheet, photocopy of
ID proof, sign of the customer on the above mentioned
documents. Click photo of the customer in the Bajaj
Finserv galaxie app .

DO (Delivery
order) is prepared
by executive. Customer can make
payment and leave

Disbursement Memo (DM)

is attached to other document
in the file

File is then couriered to

the main office

STOP

Detailed Flow Chart of the Loan Process

27
There are three types of customers their process differs little the loan processing is different.

The customers are divided into three types:

1. New customer

2. Existing customer

3. EMI card holder

Types of
Customers

New Existing EMI Card

Customer Customer Holder

4.1 New Customer

New customer refers to fresh customer. The customer who has never ever purchased any
product through Bajaj Finserv. The customer who is applying for the consumer loan for the
first time in Bajaj Finsev is known as New Customer.

New customer has to carry few documents since the customer is applying for the loan for the
first time. The following are the documents needed while applying for loan.

28
Category Documents required

Bank Statement 3months bank statement (pass book of the

customer)
, 1 Cancelled
Cheque.
KYC Identity proof (Any one of the below):
Passport / Voters ID card / Driving license /
PAN card
Address proof (Any one of the below):
Passport / Driving license / Ration card /
Latest mobile bill / Letter from employer
(with HR / Admin sign
)/ credit card.
NOTE: It is not compulsory to submitBank Statement while purchasing CD product

(Consumer Durables).

NOTE: If the customer stays in a rented house then he/she has to submit a rent agreement.

Loan Approval

After submitting all the required documents the Bajaj Finserv employee will verify all the
documents and then he/she will start the process of loan approval. To take loan it is necessary
to get the approval which indirectly means to know whether the customer should be provided
loan. But the best part is that the customer doesn’t have to wait for too long for the approval.
The process of online approval is very short and within 10 minutes the customer is informed
whether their application for the loan is accepted and they have got the approval for the loan.

Steps in Loan processing

In the Loan processing of new customer many documents has to be prepared.

The following are steps.

1. Visit salesforce site for fresh login

29
 2. Select the appropriate Surrogates

3. Enter all the details

4. Wait for the approval from the company’s side

5. Deal ID is generated.

6. Prepare DO(Delivery Order)

Documents:

The following are the documents to be attached in the file of the new customer.

1. Disbursement Memo (DM): In this document each and every detail of the loan is
mentioned.

2. Loan term sheet: In it all the tenure, EMI amount, down payment is briefly mentioned

3. ECS form: This sheet has to be filled very carefully as it contains the Bank details of
the customer. There are 3 ECS form on which same details of the customer’s bank
account is filled by the executive. One cancelled cheque is also put with these ECS
form in the envelope.

4. Application Form: If the customer wishes to apply for Bajaj Finserv EMI card then

Application form is also prepared.

5. Photocopy: Photocopy of all the KYC documents and the Bank statement is attached
in the file.

30
Disbursement Memo (DM)

31
 ECS Form

EMI CARD AAPPLICATION

32
 Delivery Order (DO)

LOAN TERM SHEET

33
4.2 Existing Customer

As the name suggests existing customers refers to the customer who

had been purchased any product through Bajaj Finserv. Bajaj Finserv not only pays special
attention to its EMI Card holders but also to its existing customers. The existing customers
get the benefit that their loan process does not takes much time as compared to new
customers and they get loan on “0” down payment for which of the customers look forward
to.

Existing customers has to carry few documents. The following are the documents needed
while applying for loan.
Category Documents required

Bank Statement 3months bank statement (pass book of the

customer), 1 Cancelled Cheque.

KYC Identity proof (Any one of the below):

Passport / Voters ID card / Driving license /

PAN card
Address proof (Any one of the below):

Passport / Driving license / Ration card /

Latest mobile bill / Letter from employer
(with HR / Admin sign)/ credit card.
NOTE: It is not compulsory to submit Bank Statement while purchasing CD product
(Consumer Durables).

NOTE: If the customer stays in a rented house then he/she has to submit a rent agreement.

NOTE: If the customer stays in a house allotted by the company then the allotment letter is
required.

34
Steps in Loan processing

1. Business traction

2. Loan eligibility

3. Web POS

4. Enter registered mobile no. of the customer

5. Enter the details about the product

6. Prepare Delivery Order (DO) for billing.

Documents:

The following are the documents to be attached in the file of the existing customers

1. Disbursement Memo (DM): In this document each and every detail of the loan is

mentioned.

2. Loan term sheet : Loan term sheet: In it all the tenure, EMI amount, down payment is
briefly mentioned

3. Application Form: If the customer wishes to apply for Bajaj Finserv EMI card then
Application form is also prepared

4. Photocopy: Photocopy of all the KYC documents and the Bank statement is attached
in the file.

35
4.3 EMI Card Holder

As the name suggests EMI Card holders are the customers who have
Bajaj Finserv EMI Card. EMI Card holders enjoy many benefits specified by the company.
The EMI Card holders do not have to submit any documents they just have to show their
Bajaj Finserv EMI Card and any Identity proof. (Identity proof is to be shown on demand).
Many outlets does not ask for identity proof to the EMI card holders. The EMI Card holders
does not have to wait for any approval like as new customers because as they have the EMI
card this gives them a pre-eligibility.

EMI Card holders enjoy many benefits like pre-approved eligibility,

instant approval, minimum paper work etc. But these benefits can only be enjoyed by the
EMI Card holder if they pay all their EMI’s on time and no EMI is bounced because this
leads to card Block. Then the EMI card holder has to visit the Bajaj Finserv head office at
Goregaon.

Steps in Loan processing

1. Business traction

2. Loan eligibility

3. Web POS

4. Enter EMI Card number of the customer

(If the customer is not his/her then enter the registered mobile no.) 5. Enter
details of the product

Documents:

The following are the documents to be attached in the file of the EMI card holder

1. Char slip: In EMI card holder’s file char slip is the document in which everything is
mentioned regarding the loan tenure, product information, and customer’s details.
2. Disbursement Memo (DM): In this document each and every detail of the loan is
mentioned.

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3. Photocopy: Photocopy of the ID proof and the EMI Card is attached in the file of the
EMI card holder.

CARD SHIT

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CHAPTER NO.4

EMI CARD

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 Chapter no.5 EMI CARD

Bajaj Finserv provides one such alternative – the EMI Card. This simple
plastic gives you a pre-approved, interest free loan to buy your favourite Durable or Lifestyle
products with a simple swipe. Simply put, the Bajaj Finserv EMI Card is the smartest
purchase option in your wallet.
EMI means Equated Monthly Instalments, and comprises the principal and
interest amount which is repaid to the lender. EMIs are calculated to collectively match the
amount of money borrowed, and help spread the dues over a particular tenure to make
repayment easier and more convenient. EMI payments are the most popular method of
repayment of loans, and the before borrowing a loan a Personal Loan EMI Calculator helps
the borrower to speculate his or her EMI payments. This helps in not only planning monthly
finances, but also helps in adjusting the loan amount, tenure and choosing a lender with a low
interest rate. Various loan EMI calculators have made the calculation simple over time, and
here’s how you can benefit from the same.

Advantages and Disadvantages of EMI card Advantages of

EMI card are as follows:

1. Pre-approved eligibility

Who likes a long line, to be then told, you’re not eligible? The
EMI card is like carrying a pre-approved and interest free loan in your wallet. Cool off in the
summer with a super silent air-conditioner or go for a bigger LED TV, all of which and more,
are easily available from our ever expanding list of 7000 strong vendors across 140 cities.
The customer having an EMI card represents that the individual has done transaction through
Bajaj Finserv in the past. So he/she doesn’t need any kind of approval.

But just being an EMI card holder is not enough one should also
pay attention to it that any of their EMI’s does not bounce. Because even if once the EMI
gets bounce the EMI card gets blocked. And the customer doesn’t realize that their EMI was
been skipped earlier and this creates problem during the next time he/she wants to apply for

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loan. Once the card is blocked then the customer has to visit to the head office of Bajaj
Finserv only then the card can be unblocked.

2. Digital EMI Card on Bajaj Finserv Wallet mobile app

Recently Bajaj Finserv has come up with its Digital EMI

card we can call it as Bajaj Finserv wallet or Bajaj Finserv wallet mobile app. To get Digital
EMI card of Bajaj Finserv one has to just download and install the Bajaj Finserv wallet
mobile app to access your EMI Card and available limit. Customers can also view latest
offers form Bajaj Finserv and our partners on the app. View the Bajaj Finserv partner stores
near you on a tap on the screen in our app.

3. Minimum Paperwork

Who likes paperwork? In fact who even has the time for unwanted
and unnecessary paperwork? Our views on paperwork and Mondays remain similar! Swiping
your Bajaj Finserv EMI Card means saying goodbye to lengthy documentation and interest
rates.

4. Instant approval

Customers shopping becomes simplified in two easy steps – swipe

and buy. Yes, that’s all you need to do. You don’t even have to do the math to calculate the
various interconnect usage charges that are levied on your debit card or credit card. Simply,
because there are no hidden charges or interest charged on the Bajaj Finserv EMI Card.

5. Online account access

Customers can easily track their, schedule or manage their

payments this refers to that a customer has can easily check the dates when the next EMI is
going to be deducted which helps them to be aware and keep sufficient balance into their
bank account . And all this can be done in just a few a clicks.

6. Fees and charges

The EMI card isn’t free but it is very, very affordable. There is one-time fee of Rs412

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Disadvantages of EMI card are as follows:

1. Ease of overuse

With revolving credit, since your bank balance stays the same, it might
be tempting to put all your purchases on your card, making you unaware of how much
you owe. This could lead to you overspending and owing more than you can pay back,
beginning the cycle of debt and high interest rates on your future payments.

2. Block

But just being an EMI card holder is not enough one should also pay attention
to it that any of their EMI’s does not bounce. Because even if once the EMI gets bounce
the EMI card gets blocked. And the customer doesn’t realize that their EMI was been
skipped earlier and this creates problem during the next time he/she wants to apply for
loan. Once the card is blocked then the customer has to visit to the head office of Bajaj
Finserv only then the card can be unblocked.

The above points are the advantages and disadvantages of EMI card and this shows that
the EMI card has its own benefits as well as drawbacks.

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6.1 How to apply for EMI card

Customers could apply for EMI card at the time of purchasing any
product from Bajaj Finserv. And if the customer is an Existing Customer then he/she
could also apply for EMI card online and could pay for it online and within 72 hours the
Bajaj Finserv executive will contact them for the same. But now there are some changes.

Recently Bajaj Finserv has come up with digital EMI card

before people use to receive a physical plastic EMI card through courier after 3 EMI’s i.e.
3months.

The procedure is same like before the customer has to ask the Bajaj Finserv executive
for the EMI card.

The Bajaj Finserv executive will add the charges of EMI card with the product.

The Bajaj Finserv EMI card is available at very nominal charge at just

Rs.412

Then the customer has to install an app called “Bajaj Finserv Wallet”

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 Bajaj Finserv Wallet App Logo

The customers EMI card in that app will get active within 45days.

Then the customer becomes an EMI card holder and can star

6.2 Calculation of EMI

Calculating down payment and EMI of any product is very

simple and it can done within few seconds. One should just pay attention at the scheme of
the product and the price of the product. The schemes can be like 12/4, 12/2, 6/0, 7/0 etc.

New customers get the scheme of 12/4 mostly or 12/2 in rare

cases. Existing customers and EMI card holders get the scheme of 0 down payment i.e.
6/0 and 7/0 in rare cases they can also get scheme of 12/4 or 12/2. These are decided by
the company to which the product belongs to. Normally the chances of 0 down payment
scheme is available at the festive season or on the day of any festival.

Let’s take an example:

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Melisa Ms has entered a Reliance store and wants to buy LG refrigerator from Bajaj Finserv
which has the MRP of Rs.20, 000 and the scheme is available on LG refrigerator is 12/4 then
the Bajaj Finserv Executive will do the following:

Steps For EMI Calculation:

As the scheme is 12/4 therefore, divide the Amount 20,000/12 = 166.666

i.e. Rs.1667 is the EMI amount for 8 months (12-4=8)

As the scheme is 12/4 therefore, multiply the EMI 1,667*4 = 6,668

Rs.6, 668 is the Down payment.

Let’s take another example Melisa Ms had got ‘0’ Down payment scheme i.e. 6/0

Rs.20, 000 will get divided into 6 months

20,000/6 = 3333.333 i.e. Rs.3, 334 is the EMI amount for 6 months.

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CHAPTER NO.5

COMPETITORS

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 6.1 Capital First

In 2006 the company receives certification of registration from RBI

as to function as an NBFC Conversion from private limited company to a public limited
company. In 2008 Future capital holding announces the fixing of the price band for its IPO
and in the same year it changed its name from KB Infin Pvt. Ltd to Future Capital Holdings
Ltd. In 2010 Company gets its new Vice Chairman and Managing Director Mr. v.
Vaidyanathan and afterward Company started Mortgages business.

In 2011 company expands its business and launches Gold loan business. In the same year
Future capital have faces many new changes like getting merge with its parent company i.e.
Future Capital Holdings, it launches automation of consumer Durable Financing business at
stores with 3 minutes approvals, it launches property broking services and wealth
management business and many more other services.

In 2012 its launches Two – Wheeler loans business to give a competition to its competitors
like Bajaj Finance, Reliance Capital, etc. To make this tougher its launches online broking
platform which resulted in Rs. 200 crores of subordinated debt. In the same year a big merger
takes place between FCH Securities & Advisory Limited (FSAL) and Future Capital
Investment Advisors Limited (FCIAL) with Kshitij Investment Advisory Company Limited
(KIACL), a 100 % subsidiary of FCH. Name of the Company has been changed from Future
Capital holdings Limited to Capital First Limited. The company has a team of over 1000
employees, who are experienced in the financial industry.

Capital first invested in people, process and technologies and has placed a strong credit and
risk management team. The credit team is a separate vertical within the Organization, which
undertakes detailed credit analysis, and processors files after checking credit performance
with credit bureaus.

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6.2 Reliance Capital ltd

Reliance Capital Limited (RCL) was incorporated in year 1986

at Ahmedabad in Gujarat as Reliance Capital & Finance Trust Limited. The RCL came into
effect from January 5, 1995. In 2002, RCL shifted its registered office to Jamnagar in Gujarat
before it finally moved to Mumbai in Maharashtra, in 2006.

In 2006, Reliance Capital Ventures Limited merged with RCL and with this merger the
shareholder base of RCL rose from 0.15 million shareholders to 1.3 million.

RCL entered the Capital Market with a maiden public issue in 1990 and in subsequent years
further tapped the capital market through rights issues and public issues. The equity shares
were initially listed on the Ahmedabad Stock Exchange and The Stock Exchange Mumbai.
Presently the shares are listed on The Stock Exchange Mumbai and the National Stock
Exchange of India.

RCL in the initial years engaged itself in steady annuity yielding businesses such as leasing,
bill discounting, and inter-corporate deposits. Later, in 1993 diversified its business in the
areas of portfolio investment, leading against securities, custodial services, money market
operations, project finance advisory services, and investment banking.

RCL was accredited a Category 1 Merchant banker by the Securities Exchange Board of
India (SEBI). It had lead managed/co-managed 15 issues of an aggregate value of Rs.400
crores and had underwritten 33 issues for an aggregate value of Rs.550 crore. All these
companies were listed on various exchanges.

RCL obtained its registration as a Non-banking Finance Company (NBFC) in December

1998. In view of the regulatory requirements RCL surrendered its Merchant Banking License.

RCL has since diversified its activities in the areas of asset management and mutual fund; life
and general insurance; consumer finance and industrial finance; stock broking; depository
services; private equity and proprietary investment; exchange, asset reconstruction;
distribution of financial products and other activities in financial services.

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 CONCLUSION

The study concludes that the Bajaj Finance the strongest finance for the
consumer durable products and Bajaj Finserv was providing very good schemes to the
customers. The customers are happy with EMI card. Bajaj Finserv was providing good
service to the customers.

I observed that in-store representatives of Bajaj Finserv are very close

to their customers and even to the competitors next to them which is a very good sign this
shows that Bajaj Finserv keeps a healthy competition. The company has cibil score of 775
which is really a high score and many customers don’t have cibil score of 775 and they are
eligible for the loan. And the competitor gets the opportunity to serve the customer. Bajaj
Finserv provides loan instantly but the eligibility criteria is little difficult. Bajaj Finserv has
modified their process of providing loan in the recent times and in the last 2-3 months it has
started conducting little bit marketing which must have surely increased their number of
customers. Bajaj Finserv provides very good service to their customers but once the card of
the customer gets blocked this service gets deteriorate which hampers the goodwill of the
company.

During this internship I got the chance to explore something new and
got the opportunity to work under a big name Bajaj Finserv.

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 BIBLIOGRAPHY

www.bajajfinserv.in
www.investopedia.com
www.wikiwealth.com

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