A PROJECT REPORT ON

“LOAN PROCESS, DISBURSEMENT AND COLLECTON OF TWO-

WHEELER VEHICLES”

SUBMITTED BY
“NEERAJ GOUR”
“TM2221172”
Under the Guidance of
Prof. Abha Kaneria
Balaji Institute of Technology and Management, Pune

In partial fulfillment of the requirement for the award of the degree

Master of Business Administration (MBA)
Finance

SRI BALAJI UNIVERSITY, PUNE(SBUP)

BALAJI INSTITUTE OF TECHNOLOGY AND MANAGEMENT(BITM)
S No-5/2-7, Tathawade, Wakad
2023

1
CERTIFICATE

2
 DECLARATION

I the undersigned “Neeraj Gour” hereby declare that the work embodied in this project work
titled “Loan Process, Disbursement and Collection of Two-Wheeler Vehicles”, forms my own
contribution to the research work carried out under the mentorship of Ms. Pooja Loonker and
guidance of Prof. Abha Kaneria Whenever reference has been made to previous works of
others, it has been clearly indicated as such and included in the bibliography.

I, here by further declare that all information of this document has been obtained and presented
in accordance with academic rules and ethical conduct.

Date: Signature of student

Place: Pune Neeraj Gour

3
 CERTIFICATE

I certify that the work incorporated in the Research Report titled, “LOAN PROCESS,
DISBURSEMENT AND COLLECTON OF TWO-WHEELER VEHICLES” submitted by
Neeraj Gour is his original work which was carried out by the candidate under my supervision
and guidance.

I further certify that the above work was duly approved by me, and this work is the result of
candidate’s independent study and effort. Such material has been obtained from other sources has
been duly acknowledged in the thesis.

Date (Signature of Mentor)

Place: Pune

4
 ACKNOWLEGMENT

A successful project can never be prepared by the single effort or the person to whom. project is
assigned, but it also demands the help and guardianship of some conversant person who helps the
undersigned actively or passively in the completion of successful project.

The two months summer internship is an integral part of the curriculum of

Balaji Institute of Technology and Management, Pune. For this, I am thankful towards

Bike Bazaar Finance (WheelsEMI Private Limited) and Sri Balaji University, Pune for
providing me with such a great opportunity.

I acknowledge my deep sense of gratitude to Ms. Pooja Loonker Mam for providing me with
her valuable guidance and constant co-operation at every step of the project.

This project was indeed the outcome of his clear vision and helpful attitude. Without his support
and encouragement, the successful completion of this project would not have been possible. I
would like to express my special regards and thank wholeheartedly Director BITM
Dr. Sanjit Kumar Dash Sir and my faculty mentor Dr. Abha Kaneria Mam for their support
throughout the tenure of our internship.

I am indebted to valuable customers who took out their precious time to respond to my
questionnaire. Finally, I would like to thank my friends and family members for giving me
constant support and encouragement.

5
 TABLE OF CONTENTS

Sr. No TOPIC Page no.

1 Title of Project 1
2 Certificate / Letter of Authorization 2-4
3 Acknowledgment 5
4 Table of Contents 6
5 Executive Summary 7
6 Contextual Background 8-35
a) Industry Scenario
b) Market Scenario
c) Competitor Analysis
d)Product / Services
e) Brief Company & Dept. Profile
f) Role in Company
7 Research Problem 36
8 Objective(s) 36
9 Research Question/Hypothesis 36
10 Literature Review 37-38
11 Research Methodology /Design 38
(a) Research Type
(b) Sample Size
(c) Sampling Method
(d) Questionnaire / Interview
(e) Data Collection Method
12 Data Analysis 39-51
(a) Using Excel or SPSS
13 Findings & Interpretation 52-53
14 Recommendation(s) 54
15 Limitation 55
16 Conclusion 56
17 Reference 57

6
 Executive Summary

The project work titled "Loan Process, Disbursement, and Collection of Two-Wheeler
Vehicles" aims to analyze and optimize the loan lifecycle for two-wheeler vehicle financing.
The objective is to identify and address inefficiencies and challenges within the existing loan
process, disbursement, and collection procedures. Through extensive research, it was found
that the loan approval process was lengthy, manual documentation and verification processes
were error-prone, collection strategies were ineffective, and customer engagement was
limited. To overcome these issues, the project proposes recommendations such as process
automation, improved data management, enhanced collection strategies, and customer
relationship management. By implementing these recommendations, the loan process can be
streamlined, errors minimized, collection rates improved, and customer satisfaction
increased. These improvements will lead to enhanced operational efficiency and profitability
in the two-wheeler vehicle financing industry.

7
 Contextual Background

a) Industry Scenario-

Indian Financial Services Industry

Introduction

India has a diversified financial sector undergoing rapid expansion, both in terms of
strong growth of existing financial services firms and new entities entering the
market. The sector comprises commercial banks, insurance companies, non-banking
financial companies, co-operatives, pension funds, mutual funds, and other smaller
financial entities. The banking regulator has allowed new entities such as payment
banks to be created recently, thereby adding to the type of entities operating in the
sector. However, the financial sector in India is predominantly a banking sector with
commercial banks accounting for more than 64% of the total assets held by the
financial system. The Government of India has introduced several reforms to
liberalize, regulate and enhance this industry. The Government and Reserve Bank of
India (RBI) have taken various measures to facilitate easy access to finance for
Micro, Small and Medium Enterprises (MSMEs). These measures include launching
Credit Guarantee Fund Scheme for MSMEs, issuing guidelines to banks regarding
collateral requirements and setting up a Micro Units Development and Refinance
Agency (MUDRA). With a combined push by Government and private sector, India
is undoubtedly one of the world's most vibrant capital markets.

Advantages

1. GROWING DEMAND

 Rising income is driving the demand for financial services across income
brackets.

8
  Investment corpus in Indian insurance sector might rise to US$ 1 trillion by
2025.
 With >2,100 fintech’s operating currently, India is positioned to become one
of the largest digital markets with rapid expansion of mobile and internet.
2. INNOVATION

 India benefits from a large cross-utilization of channels to expand reach of

financial services.
 Emerging digital gold investment options.
 In the Union Budget 2022-23 India announced plans for a central bank
digital currency (CBDC) which will be known as Digital Rupee
3. POLICY SUPPORT
 The government has approved 100% FDI for insurance intermediaries and
increased FDI limit in the insurance sector to 74% from 49% under the
Union Budget 2021-22.
4. GROWING PENETRATION
 Credit, insurance, and investment penetration is rising in rural areas.
 HNWI participation is growing in the wealth management segment.
 Lower mutual fund penetration of 5-6% reflects latent growth opportunities.
Segments of the financial services sector

9
Capital Market

Capital markets are a crucial segment of the financial services sector that facilitate
the buying and selling of financial instruments, primarily long-term securities, such
as stocks, bonds, and derivatives. They play a significant role in channeling funds
from savers and investors to businesses and governments in need of capital.

a) Asset Management-Asset management is a segment within the financial

services sector that focuses on managing and investing clients' funds across various
asset classes to help them achieve their financial goals. Asset management firms
employ investment professionals who make informed decisions on behalf of their
clients, aiming to generate returns while managing risk.

Within asset management, there are several key segments: Mutual Funds,
Exchange-Traded Funds (ETFs), Pension Funds, Hedge Funds, Private Equity,
Real Estate Investment Trusts (REITs), Wealth Management

b) Broking- Broking is an important segment within the financial services sector

that involves facilitating the buying and selling of financial assets, such as stocks,
bonds, commodities, and currencies, on behalf of clients. Brokers act as
intermediaries between buyers and sellers, executing trades and providing related
services. Within broking, there are several key segments: Stockbroking, Forex
Broking, Commodity Broking, Bond Broking, Derivatives Broking, Insurance
Broking, Mortgage Broking

c) Wealth management-Wealth management is a segment within the financial

services sector that focuses on providing comprehensive financial services and
investment advice to high-net-worth individuals (HNWIs) and families. Wealth
management firms aim to help clients preserve and grow their wealth, achieve their
financial goals, and effectively manage their assets. Within wealth management,

10
there are several key segments: Investment Advisory, Financial Planning,
Retirement Planning, Estate Planning, Tax Planning and Optimization,
Philanthropy and Charitable Giving, Family Office Services.

d) Investment Banking- Investment banking is a segment within the financial

services sector that provides a range of financial services to corporations,
institutions, and governments. Investment banks act as intermediaries between
entities in need of capital and investors seeking investment opportunities. They
play a crucial role in facilitating capital raising, mergers and acquisitions, and other
financial transactions. Within investment banking, there are several key segments:
Capital Markets, Mergers and Acquisitions (M&A), Corporate Finance,
Underwriting, Sales and Trading, Research

Insurance

Insurance is a crucial segment within the financial services sector that involves the
transfer of risk from individuals or entities to insurance companies. Insurance
provides financial protection against potential losses or unforeseen events by
pooling resources and spreading the risk across many policyholders. There are
several key segments within the insurance industry: Life Insurance and non- Life
Insurance

a) Life Insurance -Life insurance is a segment within the financial services sector
that provides financial protection and security to individuals and their beneficiaries
in the event of the policyholder's death. Life insurance policies offer a payout,
known as the death benefit, to the designated beneficiaries upon the insured
person's passing. Life insurance helps individuals and families manage financial
risks and protect against the loss of income, outstanding debts, and future
expenses. Within life insurance, there are several key segments: Term Life

11
Insurance, Whole Life Insurance, Universal Life Insurance, Variable Life
Insurance, Indexed Universal Life Insurance, Group Life Insurance.

b) Non- Life Insurance - Non-life insurance, also known as general insurance, is a

segment within the financial services sector that provides insurance coverage for a
wide range of risks other than those related to life and health. Non-life insurance
focuses on protecting individuals, businesses, and organizations against potential
losses or damages arising from specific events or perils. There are several key
segments within non-life insurance: Property Insurance, Casualty Insurance, Auto
Insurance, Marine Insurance, Travel Insurance, Engineering Insurance, Aviation
Insurance.

NON-BANKING FINANCIAL COMPANIES

Non-Banking Financial Companies (NBFCs) are an integral part of the financial

sector and play a significant role in the Indian economy. With the increasing
demand for credit and financial services, the NBFC sector has witnessed rapid
growth in recent years. However, despite their significance, many people are still
unaware of the basics of NBFCs.

What is Non-Banking Financial Companies (NBFCs)?

NBFCs are financial institutions that provide various financial services and
products, including loans, insurance, and asset management, but do not have a
banking license. Unlike banks, NBFCs do not have the authority to accept deposits
from the public. However, they can accept deposits from a select group of
individuals, such as directors, shareholders, and relatives.

Types of NBFCs

a) Investment Company (IC):

12
Investment companies, also known as non-banking financial companies (NBFCs),
are an important segment within the financial services sector. These companies
primarily engage in investing and managing funds on behalf of their clients.
Investment companies pool funds from individual and institutional investors and
invest them in various financial instruments to generate returns. Within the
investment company segment, there are several key categories: Mutual Funds,
Exchange-Traded Funds (ETFs), Real Estate Investment Trusts (REITs), Private
Equity and Venture Capital Funds, Hedge Funds

b) Asset Finance Company (AFC):

Asset finance companies, also known as non-banking financial companies

(NBFCs), are a significant segment within the financial services sector. These
companies specialize in providing financing for the purchase or leasing of tangible
assets, such as machinery, equipment, vehicles, and other capital assets. Asset
finance companies play a crucial role in facilitating the acquisition of assets by
businesses and individuals by offering customized financing solutions. Here are
some key aspects of asset finance companies as NBFCs: Equipment Financing,
Vehicle Financing, Construction Equipment Financing, Vendor Financing, Lease
Financing, Structured Financing, Asset Management.

c) Loan Companies (LC):

Loan companies, also known as non-banking financial companies (NBFCs), are a

significant segment within the financial services sector. These companies
specialize in providing various types of loans and credit facilities to individuals
and businesses, filling the gap left by traditional banking institutions. Loan
companies play a vital role in extending credit to borrowers who may not meet the
stringent criteria of banks or require specialized loan products. Here are some key

13
aspects of loan companies as NBFCs: Personal Loans, Business Loans,
Microfinance, Consumer Loans, Mortgage Loans, Vehicle Loans, Specialized
Loans.

Market Scenario

As per the IBEF (Indian Brand Equity Foundation) India’s financial services
industry has experienced huge growth in the past few years. This momentum is
expected to continue. India’s private wealth management Industry shows huge
potential. India is expected to have 6.11 lakh HNWIs by 2025. This will indeed
lead India to be the fourth largest private wealth market globally by 2028.

India’s insurance market is also expected to reach US$ 250 billion by 2025. This
will further offer India an opportunity of US$ 78 billion of additional life insurance
premiums from 2020-30.

India is today one of the most vibrant global economies on the back of robust
banking and insurance sectors. The relaxation of foreign investment rules has
received a positive response from the insurance sector, with many companies
announcing plans to increase their stakes in joint ventures with Indian companies.
Over the coming quarters, there could be a series of joint venture deals between
global insurance giants and local players.

The Association of Mutual Funds in India (AMFI) is targeting a nearly five-fold

growth in AUM to Rs. 95 lakh crore (US$ 1.47 trillion) and more than three times
growth in investor accounts to 130 million by 2025.

India’s Fintech space is expected to further fuel this growth in various segments.
India's mobile wallet industry is estimated to grow at a Compound Annual Growth
Rate (CAGR) of 150% to reach US$ 4.4 billion by 2022, while mobile wallet
transactions will touch Rs. 32 trillion (USD$ 492.6 billion) during the same period.
14
According to Goldman Sachs, investors have been pouring money into India’s
stock market, which is likely to reach >US$ 5 trillion, surpassing the UK, and
become the fifth-largest stock market worldwide by 2024. As of January 2023,
AUM managed by the mutual funds industry stood at Rs. 39.62 trillion (US$
478.08 billion). Inflow in India's mutual fund schemes via systematic investment
plan (SIP) stood at Rs. 1.5 lakh crore (US$ 18.09 billion). Equity mutual funds
registered a net inflow of Rs. 22.16 trillion (US$ 294.15 billion) by end of
December 2021. The net inflows were US$ 888 million (Rs 7,303.39 crore) in
December as compared to a 21-month low of US$ 274.8 million (Rs 2,258.35
crore) in November 2022.

Another crucial component of India’s financial industry is the insurance industry.

The insurance industry has been expanding at a fast pace. The total first-year
premium of life insurance companies reached US$ 32.04 billion in FY23. In FY23
(until December 2022) non-life insurance sector premiums reached at Rs. 1.87 lakh
crore (US$ 22.5 billion). Furthermore, India’s leading bourse, Bombay Stock
Exchange (BSE), will set up a joint venture with Ebix Inc to build a robust
insurance distribution network in the country through a new distribution exchange
platform. In FY23, US$ 7.17 billion was raised across 40 initial public offerings
(IPOs). The number of companies listed on the NSE increased from 135 in 1995 to
2,113 by FY23 (till December 2022).

15
 Competitor Analysis

1. Bajaj Auto Finance Limited

Bajaj Auto Finance is a non-bank finance company that provides retail loans across
categories including two wheelers, consumer durables, existing property and
unsecured personal loans. The company is a subsidiary of Bajaj Auto, one of largest
two-wheeler manufacturers, both in India and globally.

 Industries - Consumer Lending, Finance and Financial services

 Headquarter- Pune, India
 Founded- March 25, 1987
 Founder -Rahul Bajaj
 Customer Served -30 Lakh +
 Last Funding Type -Private Equity
 Company Type- Non-Banking Finance Company (NBFC)
 Phone Number 91911640098

2. L&T Finance Ltd

16
L&T Finance Holdings Ltd. is one of the leading Non-Banking Financial
Companies (NBFCs) in India, with a strong presence across the lending business
catering to the diverse financing needs of served and underserved customers.
Through its entity L&T Finance Ltd., it offers Consumer loans, Two-Wheeler
loans, home loans, Micro loans, Farm loans, and SME loans. At L&T Finance, we
are committed to providing customized financial solutions that meet the unique
needs of our customers. With a focus on innovation and customer-centricity, we
aim to be a trusted partner in our customers' financial journey.

 Industry – Financial Services

 Headquarter- Mumbai, Maharashtra
 Founded on- May 1, 2008
 Founder- Henning Holck-Larsen Søren Kristian Toubro
 Customer Served- 2 crore +
 Company Type - Non-Banking Finance Company (NBFC)
 Phone Number- +912262125000
3. SHRIRAM Finance Limited

Shriram Finance is the country’s biggest retail NBFC offering credit solutions for
commercial vehicles, two-wheeler loans, car loans, home loans, gold loans,
personal and small business loans. We are part of the 49-year-old Shriram Group, a
financial conglomerate that has emerged as a trusted partner in creating
transformative experiences and lasting impressions in customers’ lives. As a

17
leading financial enterprise with a rich business history, Shriram Finance is
founded on inclusion and sustainability, helping us unlock value for generations to
come. Our presence spans across the agrarian heartlands of rural India to its
vibrant, cosmopolitan metros where we set wings to aspirations. At Shriram
Finance, we are committed to meeting our customers at every touchpoint of their
financial journey so that they get to explore unlimited possibilities through us.

 Industry - Financial services, insurance, real estate

 Founded - 5 April ,1974]
 Headquarters -Chennai, Tamil Nadu, India
 Founder- R. Thyagarajan, AVS Raja and T. Jayaraman
 Customer Served - 7.32 million+

4. Mahindra & Mahindra Financial Services Limited

Mahindra & Mahindra Financial Services Limited (MMFSL) is an Indian rural

non-banking financial company. It is amongst the top tractor financers in India,
with 1000+ offices across the country.
Mahindra Finance started on 1 January 1991, as Maxi Motors Financial Services
Limited. They received the certificate of commencement of business on 19
February 1991. On 3 November 1992, Mahindra Finance changed their name to
Mahindra & Mahindra Financial Services Limited. Mahindra Finance is registered
with the Reserve Bank of India as an asset finance, deposit taking NBFC.
18
In 1993 it commenced financing M&M Utility vehicles and in 1995 started its first
branch outside Mumbai, in Jaipur. The company began financing Non-M&M
vehicles in 2002 and got into the business of financing commercial vehicles and
construction equipment in 2009. In 2011 they had a joint venture with Rabobank
subsidiary for tractor financing in the US and consolidated the product portfolio by
introducing small and medium enterprises (SME) financing.
• Industry - Financial services
• Founded - 19 February ,1991
• Headquarters - Mumbai, Maharashtra, India
• Key People -Ramesh Iyer
• Customer Served – 8.7 million+

5) Cholamandalam Investment and Finance Company Limited (Chola)

Cholamandalam Investment and Finance Company Limited (Chola), incorporated

in 1978 as the financial services arm of the Murugappa Group. Chola commenced
business as an equipment financing company and has today emerged as a
comprehensive financial services provider offering vehicle finance, home loans,
loan against property, SME loans, secured business personal loans (SBPL),
consumer & small enterprises loans (CSEL) and a variety of other financial
services to customers. The company has total assets under management at Rs
54,279 crore with a Net income of Rs 1,885.34 crore as on 31 March 2019. The

19
company was ranked 9th among the top 50 NBFCs in India by The Banking and
Finance Post
 Industry - Financial services
 Founded - 1978
 Headquarters - Chennai, Tamil Nadu, India
 Founder- Arun Alagappan
 Customer Served – 25 lakhs +

6) Tata Capital Financial Services Limited

Tata Capital Financial Services Limited ("TCFSL") is a subsidiary of Tata Capital

limited. The Company is registered with the Reserve Bank of India as a
Systemically Important Non-Deposit Accepting Non-Banking Financial Company
(NBFC) and offers fund and fee-based financial services to its customers, under the
Tata Capital brand. A trusted and customer- centric, one-stop financial services
provider, TCFSL caters to the diverse needs of retail, corporate and institutional
customers, across various areas of business namely the Commercial Finance,
Infrastructure Finance, Wealth Management, Consumer Loans and distribution and
marketing of Tata Cards.

 Industry -Financial services

 Founded -2007
 Headquarters - Mumbai, Maharashtra, India
 Founder- Ratan tata
 Customer Served – 2.5 million

20
 Product and Services

1) New Two-Wheeler Loan- Bike Bazaar Finance specializes in providing new

two-wheeler loans, making it easier for individuals to finance their dream
motorcycles or scooters. Their primary product revolves around offering financing
solutions specifically tailored for the purchase of new two-wheelers.
With their new two-wheeler loan, customers can secure funds to buy their desired
motorcycle or scooter without having to bear the full upfront cost. These loans
typically come with flexible repayment options and competitive interest rates,
allowing customers to choose a repayment plan that suits their financial
capabilities.
Bike Bazaar Finance aims to simplify the loan application and approval process,
making it convenient for customers to obtain financing. They may have tie-ups
with a network of dealerships, enabling customers to apply for loans directly at the
point of purchase, ensuring a seamless experience.

21
 Product Definitions Hypothecation
requirements
New Two-Wheeler Loan All new vehicle financed With hypothecation in
WheelsEMI name

2) Used Two-Wheeler Finance

With their used two-wheeler loan, customers can secure funds to buy a quality used
motorcycle or scooter of their choice. The loan typically comes with competitive
interest rates and flexible repayment terms, allowing customers to manage their
finances effectively.
Bike Bazaar Finance aims to simplify the loan application and approval process,
making it convenient for customers to obtain financing for their desired used two-
wheeler. They may have tie-ups with authorized dealerships or private sellers,
offering financing options directly at the point of purchase.
By offering used two-wheeler loans, Bike Bazaar Finance enables individuals to
fulfill their transportation needs at a more affordable cost compared to purchasing a
new vehicle. They strive to provide a seamless and hassle-free financing
experience, assisting customers in acquiring their desired used motorcycle or
scooter.

Product Definitions Hypothecation

requirements
Used Two-Wheeler Loan Customer is buying Loan >₹25000 With
Used 2W Vehicle (URO- vehicle from URO hypothecation in
Dealer) WheelsEMI name

22
3) Peer To Peer Loan
Bike Bazaar Finance offers a unique product that facilitates financing for used two-
wheelers between individuals. This product allows individuals to obtain loans for
purchasing used motorcycles or scooters directly from other individuals, without
involving traditional financial institutions.
With Bike Bazaar Finance's used two-wheeler financing service, borrowers can
secure funds from individual lenders to buy a used two-wheeler. The company acts
as an intermediary, connecting borrowers with potential lenders who are willing to
provide the necessary funds.
This peer-to-peer financing model enables individuals to access financing options
that may have more flexible terms and potentially lower interest rates compared to
traditional loans. It also provides an opportunity for individuals who have funds
available to lend them to others, creating a mutually beneficial arrangement.
It's important to note that the specific terms, interest rates, and procedures
associated with this type of peer-to-peer financing may vary depending on the
individual lenders and borrowers involved. It is recommended to visit Bike Bazaar
Finance's official website or contact them directly for more detailed information on
their product features and services related to financing used two-wheelers from
individual person to another person.

Product Definitions Hypothecation

requirements
Used Two-Wheeler Loan Customer is buying With hypothecation in
(Peer to Peer) vehicle from individual WheelsEMI name
seller

23
 4) Refinance of vehicles
Bike Bazaar Finance is a two-wheeler finance company that offers a refinancing
product for vehicles. Refinancing is a process that allows individuals who already
have an existing loan for their two-wheeler to obtain a new loan with more
favorable terms or lower interest rates.
With Bike Bazaar Finance's refinancing product, individuals can potentially reduce
their monthly payments or save on interest costs by replacing their current loan
with a new loan from the company. This can be beneficial for borrowers who want
to improve their financial situation or take advantage of better loan options.
The refinancing process typically involves evaluating the current loan, assessing
the value of the two-wheeler, and determining the eligibility for a new loan. Bike
Bazaar Finance assists in facilitating this process and helps borrowers obtain the
refinancing they need.
By offering refinancing services, Bike Bazaar Finance aims to provide individuals
with the opportunity to optimize their existing two-wheeler loans, potentially
saving them money and improving their financial circumstances.
For specific details regarding the terms, eligibility criteria, and procedures
associated with vehicle refinancing, it is recommended to visit Bike Bazaar
Finance's official website or contact them directly for the most accurate and up to
date information
Product Definitions Hypothecation requirements
Loan Against Vehicle Customer has vehicle in 1. If Loan<=₹30000, No HPN
(Refinance vehicle- RFV) his/her name. Wants to required (Up to 1 Year Tenure)
take loan against this 2. If loan >₹30000 or Above 1
vehicle Year Tenure, require HPN in
WheelsEMI name

24
5) Electric Two-Wheeler Loan
Bike Bazaar Finance is a two-wheeler finance company that offers a specialized
product for financing electric two-wheelers. Their electric two-wheeler loan is
designed to provide individuals with the necessary funds to purchase electric
motorcycles or scooters.
With Bike Bazaar Finance's electric two-wheeler loan, customers can access
financing options specifically tailored for electric vehicles. This enables
individuals to transition to environmentally friendly modes of transportation by
making electric two-wheelers more affordable and accessible.
The loan product typically includes flexible repayment options and competitive
interest rates, making it easier for customers to manage their finances while
enjoying the benefits of electric mobility. Bike Bazaar Finance may also offer
additional services such as insurance plans tailored for electric two-wheelers to
provide comprehensive coverage.
By offering electric two-wheeler loans, Bike Bazaar Finance aims to support the
adoption of sustainable transportation solutions and contribute to reducing carbon
emissions. For specific details regarding the terms, interest rates, and procedures
associated with electric two-wheeler loans, it is recommended to visit Bike Bazaar
Finance's official website or contact them directly for the most accurate and up-to-
date information.

Product Definitions Hypothecation

requirements
Electric vehicle & All new Electric vehicle With hypothecation in
E-Rickshaw financed WheelsEMI name.

25
 Company Overview & Department profile

Bike Bazaar Finance, formerly known as WheelsEMI Pvt. Ltd., is an RBI-

approved systematically important non-banking financial company (NBFC).
While the legal entity retains its name, the front end has been rebranded as Bike
Bazaar, while continuing to operate under the same legal name.
Bike Bazaar Finance is a Non-Banking Finance company that specializes in
providing financing options for purchasing bikes. They offer various financing
solutions tailored to the needs of individuals and businesses looking to buy bikes.
Bike Bazaar Finance aims to make bike ownership more accessible by offering
flexible payment plans, competitive interest rates, and convenient application
processes. Whether person a passionate cyclist or a business in need of bikes for
your operations, Bike Bazaar Finance can help you find the financing solution that
suits your requirements.
The company is managed by a team of professionals with extensive senior
management experience in leading manufacturers and financing of two-wheelers.
The promoters of Bike Bazaar Finance boast a collective experience of over 100
years in the two-wheeler OE and retail financing business.
Specializing in retail financing for both used and new two-wheelers, Bike Bazaar
Finance has established a strong presence across various cities in India. They
currently operate in Pune, Nagpur, Bangalore, Chennai, Hyderabad, Mumbai, Delhi,
26
Jaipur, Kolkata, Lucknow, Cochin, Indore, Uttar Pradesh, Uttarakhand, Rajasthan,
Haryana, West Bengal, Madhya Pradesh, and Bihar, catering to more than 150
locations nationwide.
Since its inception in April 2017, Bike Bazaar Finance has served over 400,000
customers and disbursed loans exceeding ₹2100 crores. The company employs a
workforce of more than 1800 individuals.
In terms of financial performance, Bike Bazaar Finance has shown steady growth in
disbursements over the years.
1. Financial Year 2017-18: The total disbursement amounted to ₹23 crores.
2. Financial Year 2018-19: The total disbursement saw a significant increase,
reaching ₹95 crores.
3. Financial Year 2019-20: The disbursement continued to rise, reaching ₹277 crores,
indicating substantial growth in loan disbursal.
4. Financial Year 2020-21: The disbursement for this year further increased to ₹326
crores, demonstrating the company's continued expansion.
5. Financial Year 2021-22: Bike Bazaar Finance experienced significant growth,
with the total disbursement reaching ₹625 crores. This represents a substantial
increase in comparison to previous years.
6. Financial Year 2022-23: The disbursement for this year reached ₹822 crores,
indicating the company's continued success and expansion in providing financing
for two-wheelers., with a further goal of achieving ₹1800 crores for the current fiscal
year 2023-24.
The consistent upward trend in disbursement amounts showcases Bike Bazaar
Finance's growing presence and success in the two-wheeler finance sector. These
increasing disbursements signify the company's ability to cater to the financing
needs of a larger customer base and its effectiveness in facilitating the purchase of
two-wheelers through their financial services.
27
Bike Bazaar Finance aims to provide accessible retail financing options for
individuals seeking to purchase used and new two-wheelers. With their
experienced management team, extensive presence in multiple cities, and
significant loan disbursements, the company strives to be a trusted name in the
two-wheeler financing sector in India.
Loan Life Cycle

The loan life cycle for Bike Bazaar Finance can be summarized as follows:

1. Loan Application:

The loan application process is the first step in acquiring a loan from Bike Bazaar.
It involves the following steps:

a. Application Submission: The customer fills out a loan application form,

providing personal details, contact information, employment details, and the
desired loan amount.

28
b. Document Verification: The submitted application and supporting documents,
such as identity proof, address proof, income proof, and bank statements, are
verified by the loan processing team.

c. Credit Assessment: The applicant's creditworthiness is evaluated based on their

credit history, credit score, and financial stability. This assessment helps determine
the loan amount and interest rate applicable to the applicant.

d. Loan Approval: Once the credit assessment is complete and the applicant meets
the eligibility criteria, the loan is approved by the Bike Bazaar loan committee.

2. Credit Check:

The credit check process involves a comprehensive evaluation of the applicant's

creditworthiness and financial background. The steps in this process are as follows:

a. Credit Bureau Inquiry: Bike Bazaar accesses the applicant's credit report from
credit bureaus to review their credit history, including previous loans, repayment
patterns, and outstanding debts.

b. Credit Score Analysis: The applicant's credit score is analyzed to assess their
creditworthiness. A higher credit score indicates a better repayment track record
and reduces the risk for Bike Bazaar.

c. Risk Evaluation: The applicant's financial stability and debt-to-income ratio are
considered to determine the level of risk involved in lending to them. This
evaluation helps set the interest rate and loan terms.

d. Decision Making: Based on the credit check findings, Bike Bazaar decides
whether to approve or reject the loan application. If approved, the loan proceeds to
the next stage.

3. Delivery of Vehicle:
29
Once the loan application is approved, the vehicle is delivered to the applicant. The
steps involved in this process are:

a. Selection of Vehicle: The applicant chooses a bike from Bike Bazaar's inventory
or selects a specific model that they wish to purchase.

b. Documentation: The necessary documents related to the purchase, such as the

vehicle registration certificate, insurance papers, and invoice, are prepared and
signed by the applicant.

c. Loan Disbursement: Bike Bazaar disburses the loan amount directly to the dealer
or seller of the vehicle, ensuring a smooth transaction.

d. Vehicle Handover: The applicant receives the bike from the dealer, along with
all relevant documents, warranties, and keys.

4. Payment to Dealer:

After the loan disbursement, Bike Bazaar ensures the payment to the dealer/seller
of the vehicle. The process involves:

a. Invoice Verification: Bike Bazaar verifies the invoice details, including the
vehicle's cost, taxes, and any additional charges, to ensure accuracy.

b. Payment Authorization: Once the invoice is verified, Bike Bazaar authorizes the
payment to the dealer/seller, usually through electronic fund transfer or check.

c. Payment Confirmation: The payment is made to the dealer/seller, and Bike

Bazaar receives confirmation of the successful transaction.

5. EMI Collection:

30
After the vehicle is delivered and the loan is disbursed, Bike Bazaar initiates the
process of collecting Equated Monthly Installments (EMIs) from the borrower. The
steps involved in this process are:

a. EMI Calculation: The loan amount, interest rate, and tenure are used to calculate
the EMI amount that the borrower needs to pay each month.

b. EMI Notification: Bike Bazaar notifies the borrower about the EMI due dates,
payment methods, and any additional charges or penalties in case of late payment.

c. EMI Collection: Bike Bazaar collects the monthly installments through various
channels, such as electronic transfer, automatic deductions, or physical payment at
designated offices or partner banks.

d. Payment Tracking: Bike Bazaar maintains records of the borrower's EMI

payments and sends periodic statements to ensure transparency and keep the
borrower informed about the outstanding balance.

6. Loan Closure & NOC:

The loan closure process begins when the borrower completes the repayment of the
loan. The steps involved in this process are as follows:

a. Full Payment: The borrower completes the repayment of the loan amount,
including the principal and interest, within the agreed tenure.

b. Loan Closure Request: The borrower requests loan closure and submits the
necessary documents, such as a loan closure application and a no-objection
certificate (NOC) request.

c. Document Verification: Bike Bazaar verifies the loan closure request and the
submitted documents to ensure all requirements are met.

31
d. NOC Issuance: Upon successful verification, Bike Bazaar issues a no-objection
certificate (NOC) to the borrower, confirming the full repayment of the loan and
releasing any liens on the vehicle.

The loan life cycle process of Bike Bazaar involves these six categories: Loan
Application, Credit Check, Delivery of Vehicle, Payment to Dealer, EMI
Collection, and Loan Closure & NOC. Each stage plays a crucial role in ensuring a
smooth and transparent loan experience for the borrower, from application to loan
closure.

Department Profile

Finance and
Accounts
Department

Finance Company
Accounts
Treasury Secretariat

The Finance and Accounts Department is a crucial division within Bike Bazaar,
responsible for managing financial operations, maintaining accurate records, and
ensuring compliance with regulatory requirements. The department comprises
three major segments: Accounts, Finance Treasury, and Company Secretariat. Let's
delve into each segment in detail:

32
1. Accounts:

In the Accounts segment of Bike Bazaar Finance, the department is responsible for
handling financial transactions and maintaining accurate records. Key aspects
include:

- Bookkeeping and Accounting: Recording and maintaining financial transactions

related to loans, payments, and collections from customers.

- Loan Processing: Managing loan disbursements, ensuring proper documentation,

and maintaining loan records.

- Accounts Receivable and Payable: Managing invoices, payments to dealers, and

collections from customers.

- Financial Reporting: Preparing financial statements specific to two-wheeler

finance operations, such as loan portfolio reports, asset quality reports, and
profitability analysis.

2. Finance Treasury:

The Finance Treasury segment of Bike Bazaar Finance focuses on managing

financial resources and optimizing capital utilization. Key responsibilities include:

- Cash Flow Management: Monitoring and managing cash flow to ensure sufficient
funds for loan disbursements, operating expenses, and debt obligations.

- Capital Budgeting: Evaluating investment opportunities, assessing the financial

viability of expansion plans, and recommending capital expenditure decisions.

- Risk Management: Identifying and managing financial risks associated with loan
portfolios, interest rate fluctuations, credit risks, and market risks.

33
- Funding and Liquidity Management: Evaluating funding options, managing
relationships with lenders, and optimizing the company's liquidity position.

- Interest Rate Management: Monitoring and managing interest rate exposure,

including interest rate risk hedging strategies.

3. Company Secretariat:

The Company Secretariat segment of Bike Bazaar Finance focuses on legal and
regulatory compliance, corporate governance, and shareholder communication.
Key responsibilities include:

- Compliance: Ensuring compliance with regulatory requirements specific to two-

wheeler financing, such as consumer lending regulations, data privacy laws, and
anti-money laundering regulations.

- Board and Shareholder Meetings: Organizing and managing board meetings,

general meetings, and ensuring compliance with meeting requirements.

- Regulatory Reporting: Preparing and filing regulatory reports related to the

company's financial operations and compliance with industry-specific regulations.

- Shareholder Communication: Managing shareholder interactions, addressing

inquiries, and facilitating shareholder transactions, such as dividend payments and
share transfers.

- Legal Support: Assisting in legal matters related to loan agreements, contracts,

and providing guidance on legal and regulatory issues specific to two-wheeler
financing.

34
 Role In the Company

As a Finance Intern within the Finance & Accounts Department of the company, I am responsible
for handling various tasks related to loan disbursement Process data. One of my primary
responsibilities involves managing loan disbursement data using Excel spreadsheets. This entails
carefully reviewing and cross-checking customer information, including loan ID, financed
amount, flat rate, tenor, EMI installments, and IRR. If any errors or discrepancies are identified, it
is my duty to rectify and update the customer's data accordingly to ensure accuracy and
consistency.

Moreover, since our company is engaged in co-lending practices, it is essential to maintain

comprehensive data on co-lenders. This involves managing information such as their identities,
loan agreements, and respective shares in the lending process. Accurate documentation and
organization of this data facilitate smooth collaboration and transparent financial operations
between our company and the co-lenders.

To streamline our loan management processes, the company has developed an Excel formula sheet
that enables us to calculate Equated Monthly Installments (EMIs). This calculation provides a
consolidated view of the total EMI amount, as well as the specific shares attributed to the company
and the co-lenders. By utilizing this formula sheet, we can accurately determine the distribution of
financial obligations among the involved parties, ensuring fairness and efficiency in our co-lending
activities. Moreover, I have had the opportunity to receive training on Infor Sun System, an
Enterprise Resource Planning (ERP) software. The company provided me with a dummy version
of the software to familiarize myself with its functionalities. During the training, I focused on the
Purchase Order and Purchase Invoice modules. Subsequently, the company entrusted me with real
purchase orders and purchase invoice bills, which I entered the software, ensuring that all the
details were accurately recorded.

In summary, as a Finance Intern, I am responsible for managing loan disbursement data, rectifying
errors, overseeing monthly installment collection calculation in the Excel file, maintaining co-
lender information, and utilizing the Infor Sun System ERP software for purchase order and
purchase invoice management. These tasks contribute to the smooth operation of the Finance &
Accounts Department and support the company's financial activities

35
 Research Problem

The research problem for the Report could be focused on identifying areas of
improvement or potential challenges in the loan process, disbursement, and
collection of a two-wheeler finance company like Bike Bazaar Finance. The aim
would be to address specific issues or gaps in the existing system to enhance
efficiency, customer experience, or overall financial performance.

Objective

1. To evaluate the efficiency of the loan application process in Two-wheeler

Finance Company, including the credit check and approval procedures.
2. To assess the effectiveness of the loan disbursement process, focusing on
coordination with dealers or sellers and ensuring timely delivery of vehicles
to customers.
3. To analyze the efficiency of the Equated Monthly Installment (EMI)
collection system in Bike Bazaar Finance, including tracking and recording
payments, and managing accrued interest.
4. To examine the effectiveness of co-lending practices, specifically in terms of
maintaining accurate data on co-lenders and ensuring transparent financial
operations.

Research Questions:

1) How do inefficient loan processing procedures affect delays in loan

disbursement and collection in the Two-Wheeler Finance company?

2) What is the impact of adequate monitoring and follow-up on Equated Monthly

Installments (EMIs) on the occurrence of delayed or missed payments from
customers?

36
Literature Review

Simran Lodha (2018) conducted a study to understand the preferences of

automobile dealers when selecting finance options. The research highlighted that
dealers primarily opt for banks as their preferred financing choice over non-
banking financial corporations. The study identified that interest rates play a
crucial role in dealer decision-making, followed by the speed of disbursement.

Tejashwini Joshi (2022) focused on exploring the perceptions and attitudes of

loan takers in Gujarat. This research aimed to assist administrators, policymakers,
and arm's length sources organizations in the banking sector to develop effective
policies that enhance customer satisfaction and promote growth in the borrowing
field. The findings were beneficial for potential borrowers in making informed
decisions when seeking loans from various sectors.

Sundar R (2021) addressed the prevalent issue of loan delinquencies and defaults
faced by non-banking financial corporations (NBFCs), particularly in rural areas.
The study investigated the pre-loan assessment methods employed by a sample
NBFC, Mahindra & Mahindra Financial Services, and assessed their impact on
controlling loan defaults during the later stages. While these methods proved useful
in determining the suitability of applicants for loan disbursement, their
effectiveness in preventing loan defaults required further investigation.

M Ukesh (2022) examined the relationship between consumer awareness of

electric two-wheelers and subsequent purchasing habits worldwide. The study
specifically explored consumer brand preferences for electric two-wheelers in
Coimbatore, Tamil Nadu. With rising fuel costs, increasing pollution levels, and
congestion in transportation systems, electric bikes and scooters have gained

37
popularity in the personal transportation sector. The research shed light on the
potential of electric two-wheelers in addressing these challenges.

Akhil Sharma (2019) shed light on the growing trend of Non-Banking Finance
Corporations (NBFCs) in the Indian financial market. The research highlighted the
significant growth of NBFCs over the years. The study classified NBFCs into non-
deposit taking and deposit-taking categories, emphasizing the concept of shadow
banking in India. By comparing shadow banking to traditional banking systems,
the research provided insights into the non-banking financial sector in India.

Research Methodology This chapter provides a thorough description of the

activities carried out to gather the required data to answer the research question.
which include the research question, which include the research design. Population
and sample selection and research methods and procedures used to collect data and
analyze them.

Research Approach Quantitative & Qualitative

Research Instrument Survey Research Questionnaire, Direct
Interviews & observation
Research Design Descriptive
Sampling Convenience Sampling
Source Primary & secondary
Research Tool Excel
Sample Size 109
Sampling Unit Customers Who Buy Two-Wheeler
Sampling Area Pune, Maharashtra

38
 Data Analysis

This data analysis focuses on identifying areas of improvement and potential

challenges in the loan process, disbursement, and collection of a two-wheeler
finance company, The objective is to address specific issues or gaps within the
existing system, aiming to enhance efficiency, customer experience, and overall
financial performance.
Demographic Analysis

Demographics Responses Percentage

Gender Male 59.6 %
Female 39.4 %
Other 0.9 %
Age Group 18-25 Yrs. 40.4 %
26-35 Yrs. 14.7 %
36-45 Yrs. 14.7 %
46-55 Yrs. 18.3 %
56 Yrs. And above 11.9 %
Occupation Student 37.6 %
Employed 27.5 %
Self- employed 12.8 %
Unemployed 9.2 %
Retired 12.8 %
Monthly Income No Income 33.9%
INR 10000-30000 12.8%
INR 30000-50000 15.6%
INR 50000-100000 26.6%
More than 100000 11 %

39
Based on the data presented in Table, several key insights can be drawn regarding
the demographic and occupational characteristics of the respondents. Firstly, the
gender distribution of the respondents shows that 59.6% were males, while 39.4%
were females. This indicates a slightly higher representation of males in the survey
compared to females. In terms of age groups, the data shows that most respondents,
accounting for 40.4%, were aged between 18-27 years. This suggests that a
significant proportion of young individuals were surveyed, possibly indicating a
focus on the younger demographic in the study. When examining the occupation of
the respondents, it can be observed that the largest group, comprising 37.6%,
consisted of students. This highlights the participation of students in the survey,
possibly indicating a focus on understanding the loan preferences and experiences
of this group. Employed individuals accounted for 27.5% of the respondents,
suggesting a significant presence of working professionals in the survey sample.
Meanwhile, 9.2% of respondents retired, indicating the inclusion of retired
individuals as well. Regarding income groups, 33.9% of respondents fell into the
"No income" category, indicating that a significant proportion of respondents did not
have a source of income at the time of the survey. Furthermore, 26.6% of respondents
were in the income group of 500,000 INR to 1,000,000 INR, while 15.6% fell into
the income range of 30,000 INR to 50,000 INR. This provides insights into the
income diversity among the surveyed individuals.

Based on the data, it appears that most people (31.7%) became aware of loan options
for purchasing a two-wheeler vehicle through banks or financial institutions. This
suggests that individuals often turn to established financial institutions for
information and assistance in obtaining loans for their vehicle purchases. The second
40
most common source of awareness is dealer showrooms and word-of-mouth
recommendations, both at 17.5%. This indicates that people also rely on the expertise
and advice of dealerships and recommendations from friends or family members
who have previous experience in purchasing two-wheelers. Online search, at 0.4%,
and other sources, at 7.9%, are less commonly used but still play a role in people's
awareness of loan options. Overall, these findings highlight the importance of banks
and financial institutions as the primary source of information for potential buyers
seeking loans for two-wheeler purchases, followed by dealer showrooms and word-
of-mouth recommendations.

Based on the data, it is evident that the most influential factor in choosing a particular
bank or financial institution for obtaining a loan for a two-wheeler vehicle is
competitive interest rates. A significant majority of respondents (66.1%) cited this
as their primary consideration. This suggests that individuals prioritize finding a
lender that offers favorable interest rates, which can greatly impact the overall cost
of borrowing and monthly repayments. The second most influential factor is the loan
approval process, with 62.4% of respondents considering it crucial. This implies that
borrowers value a streamlined and efficient process when applying for a loan,
indicating a desire for convenience and timely approvals. Flexible repayment
options were also deemed important, as 61.5% of respondents mentioned it as a
factor in their decision. This suggests that borrowers appreciate the flexibility to
choose repayment terms that align with their financial capabilities and preferences.
The reputation of the lender, although slightly lower in significance, still played a

41
role in the decision-making process for 38.5% of respondents. This indicates that
individuals consider the trustworthiness and credibility of the lender when selecting
a financial institution for their loan needs. Lastly, a small percentage (7.3%) cited
other factors that influenced their decision. These factors could vary and may include
customer service quality, additional benefits or perks offered by the lender, or
specific loan terms unique to the institution. In summary, the data reveals that
competitive interest rates, loan approval process, flexible repayment options, and the
lender's reputation are the primary factors influencing the choice of a bank or
financial institution for obtaining a loan for a two-wheeler vehicle.

Based on the data, it can be observed that most respondents expressed satisfaction
with the loan processing procedures in terms of efficiency and speed. The highest
number of responses, accounting for 50.5%, gave a rating of 4, indicating a relatively
high level of satisfaction. This suggests that a significant portion of individuals found
the loan processing procedures to be efficient and timely. The next highest number
of responses, at 29.4%, rated their satisfaction with a score of 3. This indicates a
moderate level of satisfaction, suggesting that some respondents felt that the loan
processing procedures could have been more efficient or faster. In contrast, a smaller
percentage of respondents expressed higher levels of satisfaction. Approximately
7.3% of responses gave a rating of 5, indicating the highest level of satisfaction,
while 10.1% of responses gave a rating of 2, indicating a lower level of satisfaction.
Overall, the data suggests that most respondents were moderately to highly satisfied

42
with the loan processing procedures in terms of efficiency and speed. However, there
is still room for improvement, as some individuals indicated a desire for a faster and
more efficient process.

Based on the data, it is evident that a significant majority of respondents, accounting

for 63.3%, experienced delays in the disbursement of the loan amount. This indicates
that a substantial number of individuals faced challenges or experienced a longer
waiting period before receiving the loan funds. Conversely, 36.7% of respondents
reported no delays in the disbursement of the loan amount. This suggests that a
relatively smaller portion of individuals had a smooth and timely disbursement
process, without any significant delays. The data highlights that a notable number of
borrowers encountered delays in receiving their loan amount, indicating potential
inefficiencies or bottlenecks in the loan disbursement process. This finding
underscores the importance of streamlining and expediting the disbursement
procedures to enhance customer satisfaction and ensure a smooth borrowing
experience for individuals seeking loans for two-wheeler purchases.

43
Based on the data, it can be observed that most respondents experienced a wait time
of 1-4 weeks for the loan to be disbursed after submitting the required documents.
The highest number of responses, accounting for 41.3%, fell into the category of 1-
2 weeks, indicating that a significant portion of individuals had to wait for
approximately one to two weeks before receiving the loan amount. Close behind,
37.6% of respondents reported a wait time of 2-4 weeks, suggesting that a
considerable number of borrowers had to wait for a slightly longer period, up to a
month, for the loan to be disbursed. A smaller percentage of respondents, 12.8%,
reported a quicker disbursement time of less than a week, indicating a relatively
faster processing and disbursal of the loan amount for this group. On the other hand,
8.3% of respondents experienced delays of more than a month before receiving their
loan amount, suggesting a longer wait time and potential inefficiencies in the loan
processing procedures for this subset of borrowers. Overall, the data highlights that
a significant proportion of respondents faced a waiting period of 1-4 weeks for loan
disbursement after submitting the required documents. This finding suggests that
there is room for improvement in terms of expediting the loan processing and
individuals seeking loans for two-wheeler purchases.

44
Based on the data, it is evident that the primary cause of the delay in loan
disbursement, as perceived by the respondents, was the lengthy verification and
approval procedures. Most respondents, accounting for 77.1%, attributed the delays
to these procedures, indicating that the verification and approval steps took longer
than expected, leading to a delay in disbursing the loan amount. The second most
common cause identified by the respondents was insufficient staff or resources
allocated to the disbursement process. Approximately 58.7% of respondents
believed that the delays were a result of inadequate staffing or resources, suggesting
that the lending institutions may not have had enough personnel or resources
dedicated to efficiently handle the loan disbursement process. Another significant
factor reported by 47.7% of respondents was inefficient loan processing procedures.
This indicates that the overall loan processing system may have been inefficient or
lacked streamlined procedures, leading to delays in disbursing the loan amount. A
smaller percentage of respondents, 34.9%, attributed the delays to external factors
beyond the control of the lending institutions. These external factors could include
regulatory requirements or delays caused by third parties, which might have
impacted the loan disbursement timelines. Lastly, a small portion of respondents,
10.1%, mentioned other causes that were not specified in the given options. In
summary, the data suggests that lengthy verification and approval procedures,
insufficient staff or resources, and inefficient loan processing procedures were the
primary causes of the delays in loan disbursement, as perceived by the respondents.
These findings highlight potential areas for improvement in order to streamline the
loan processing and disbursal procedures, allocate adequate resources, and address
any external factors that may contribute to delays.

45
Based on the data, the satisfaction levels with the loan collection process in terms of
timely reminders and notifications for Equated Monthly Installments (EMIs) varied
among the respondents. The largest group of respondents, accounting for 46.8%,
reported a neutral satisfaction level. This suggests that a significant portion of
individuals had no strong positive or negative feelings regarding the timely
reminders and notifications for EMIs. Satisfaction levels were relatively evenly
distributed among the remaining responses. 29.4% of respondents expressed
satisfaction with the loan collection process, indicating that they were content with
the timely reminders and notifications they received for their EMIs. Similarly, 7.3%
of respondents reported being very satisfied, indicating a high level of contentment
with the loan collection process. On the other hand, 9.2% of respondents expressed
dissatisfaction with the process, indicating that they were not satisfied with the
timely reminders and notifications provided. A smaller percentage, 7.3%, reported
being very dissatisfied, indicating a high level of dissatisfaction. Overall, the data
suggests that a significant portion of respondents had a neutral satisfaction level with
the loan collection process in terms of timely reminders and notifications for EMIs.
While there were individuals who expressed satisfaction or dissatisfaction, the
majority had no strong positive or negative opinions on the matter. This indicates a
potential area for improvement in terms of enhancing the loan collection process by
ensuring timely and effective communication of EMI reminders and notifications to
borrowers.

46
Based on the data, it can be observed that a significant percentage of respondents,
44%, have experienced delays or missed payments in making their Equated Monthly
Installments (EMIs). This indicates that a considerable number of individuals faced
challenges or encountered difficulties in making their payments on time. On the
other hand, most respondents, 56%, reported no delays or missed payments in their
EMIs. This suggests that a larger portion of individuals have been able to make their
payments on time without any significant issues or delays. The data highlights that
a significant number of borrowers have experienced difficulties in meeting their EMI
obligations, potentially indicating financial constraints or other factors that affected
their ability to make timely payments. This finding emphasizes the importance of
ensuring clear and transparent communication, adequate financial planning, and
support mechanisms to help borrowers avoid delays or missed payments and manage
their EMIs effectively. It is essential for lenders to provide assistance and guidance
to borrowers who may be facing challenges in making their payments, to minimize
the risk of default and ensure a successful repayment process.

47
Based on the data, it is evident that the primary cause of delays or missed payments,
as perceived by the respondents, varied among different factors. The largest group
of respondents, accounting for 59.6%, attributed the delays or missed payments to
inaccurate or incomplete documentation. This suggests that the presence of errors or
omissions in the required documentation could have led to difficulties in processing
the payments or verifying the information, resulting in delays or missed payments.
The second most common cause identified by the respondents was communication
breakdown between departments, with 58.7% of respondents considering it a
primary factor. This indicates that inadequate coordination or communication within
the lending institution's departments may have hindered the timely processing and
monitoring of payments, leading to delays or missed payments. Another significant
factor reported by 45% of respondents was inadequate monitoring and follow-up.
This suggests that a lack of proper tracking and proactive follow-up on payment
schedules and reminders could have contributed to delays or missed payments. A
notable percentage of respondents, 31.2%, attributed the delays or missed payments
to external factors beyond the control of the lending institution. These external
factors could include market conditions or regulatory changes that may have
impacted on borrowers' ability to make their payments on time. Lastly, a smaller
portion of respondents, 19.3%, mentioned other causes that were not specified in the
given options. In summary, the data indicates that inaccurate or incomplete
documentation, communication breakdown between departments, and inadequate
monitoring and follow-up were identified as primary causes of delays or missed

48
payments, as perceived by the respondents. These findings highlight the importance
of implementing robust documentation processes, improving internal
communication and coordination, and ensuring proactive monitoring and follow-up
systems to minimize delays or missed payments and provide a more seamless and
efficient loan repayment experience for borrowers.

Based on the data, the effectiveness of loan monitoring and follow-up by the finance
company received varied ratings from the respondents. The largest group of
respondents, accounting for 45%, gave a neutral rating, indicating that they had no
strong positive or negative opinions regarding the effectiveness of loan monitoring
and follow-up by the finance company. A significant percentage, 26.6%, rated the
effectiveness as somewhat effective, suggesting that they perceived a certain level
of effectiveness in the loan monitoring and follow-up process. Conversely, 13.8% of
respondents rated it as somewhat ineffective, indicating that they believed there were
areas where improvement was needed in terms of monitoring and follow-up
procedures. A small portion of respondents, 7.3%, rated the effectiveness as either
not effective at all or very effective. The former indicates a lack of effectiveness and
a need for significant improvement in the loan monitoring and follow-up process,
while the latter suggests a high level of satisfaction with the finance company's
efforts in monitoring and following up on loan repayments. Overall, the data
suggests a mixed perception of the effectiveness of loan monitoring and follow-up
by the finance company. While a substantial portion of respondents had a neutral
opinion, indicating neither strong satisfaction nor dissatisfaction, there were

49
respondents who expressed the need for improvement as well as those who were
satisfied with the current level of effectiveness. This feedback highlights the
importance for finance companies to continuously assess and enhance their loan
monitoring and follow-up processes to ensure timely payments and a positive
borrower experience.

Based on the data, it can be observed that most respondents, 67%, believe that delays
in loan disbursement and collection are primarily caused by inefficient loan
processing procedures. This indicates that a significant portion of individuals
perceive inefficiencies in the loan processing procedures as the primary factor
leading to delays in both loan disbursement and collection. Conversely, 33% of
respondents do not believe that inefficient loan processing procedures are the main
cause of delays. This suggests that this group of respondents may attribute delays to
other factors, such as external circumstances, communication breakdowns, or other
operational issues. The data indicates a clear inclination among most respondents
towards viewing inefficient loan processing procedures as the primary cause of
delays in both loan disbursement and collection. This perception emphasizes the
importance of optimizing and streamlining loan processing procedures to ensure a
more efficient and timely borrowing and repayment experience for customers.
Finance companies should consider investing in improvements to their loan
processing systems and procedures to address these concerns and enhance customer
satisfaction.

50
Based on the data, it can be observed that opinions are divided regarding the primary
cause of delayed or missed payments from customers. 51.4% of respondents believe
that inadequate monitoring and follow-up on Equated Monthly Installments (EMIs)
are the primary cause of delayed or missed payments. This indicates that a majority
of individuals perceive a lack of effective monitoring and follow-up as the main
factor leading to payment delays or defaults. On the other hand, 48.6% of
respondents do not believe that inadequate monitoring and follow-up are the primary
cause of delayed or missed payments. This suggests that this group of respondents
may attribute payment issues to other factors, such as financial constraints, external
circumstances, or customer behavior. The data highlights a difference in perspective
among respondents regarding the primary cause of delayed or missed payments.
While a significant portion believes that inadequate monitoring and follow-up
contribute to these issues, there is also a notable percentage that holds a different
view. To ensure timely and consistent payments, finance companies may need to
consider the opinions of both groups. This could involve implementing robust
monitoring and follow-up systems, enhancing communication channels, and
providing support mechanisms to address any challenges customers may face in
meeting their payment obligations.

51
 Findings And Interpretation

Findings:

Awareness of Loan Options: Most respondents became aware of loan options for
purchasing a two-wheeler vehicle through banks or financial institutions (31.7%).
Dealer showrooms and word-of-mouth recommendations were also significant
sources of awareness (17.5% each), while online search played a relatively minor
role (0.4%).
Factors Influencing Bank Selection: Competitive interest rates were identified as the
most influential factor in choosing a particular bank or financial institution for
obtaining a loan (66.1%). Other factors included the loan approval process (62.4%),
flexible repayment options (61.5%), and the reputation of the lender (38.5%).
Satisfaction with Loan Processing Procedures: The majority of respondents
expressed satisfaction with the efficiency and speed of the loan processing
procedures. The highest satisfaction rating was given by 50.5% of respondents,
while 29.4% rated their satisfaction as moderate.
Delays in Loan Disbursement: A significant percentage of respondents (63.3%)
experienced delays in the disbursement of the loan amount, indicating potential
inefficiencies in the loan disbursement process.
Time for Loan Disbursement: The data revealed that the majority of respondents had
to wait for 1-4 weeks for the loan to be disbursed after submitting the required
documents. Only a small percentage experienced faster disbursement (less than a
week), while some faced delays of more than a month.
Primary Causes of Delay: The primary causes of delay, as perceived by the
respondents, included lengthy verification and approval procedures (77.1%),
insufficient staff or resources (58.7%), and inefficient loan processing procedures
(47.7%).
Satisfaction with Loan Collection Process: Respondents had mixed levels of
satisfaction with the loan collection process in terms of timely reminders and
notifications for EMIs. The largest group (46.8%) reported a neutral satisfaction
level, while 29.4% expressed satisfaction and 9.2% expressed dissatisfaction.

52
Delays or Missed Payments: A significant percentage of respondents (44%)
experienced delays or missed payments in making their EMIs, indicating potential
challenges in meeting payment obligations.
Primary Causes of Delays or Missed Payments: The primary causes, as perceived by
the respondents, included inaccurate or incomplete documentation (59.6%),
communication breakdown between departments (58.7%), and inadequate
monitoring and follow-up (45%).
Effectiveness of Loan Monitoring and Follow-up: Respondents had varying
opinions on the effectiveness of loan monitoring and follow-up by the finance
company. The largest group (45%) rated it as neutral, while 26.6% considered it
somewhat effective.
Interpretation:
The findings suggest that there are areas for improvement in the loan processing
procedures, disbursement timelines, loan collection processes, and monitoring and
follow-up mechanisms. The delays in loan disbursement and collection appear to be
influenced by factors such as lengthy verification and approval procedures,
inadequate staff or resources, and inefficient loan processing procedures. These
findings highlight the need for streamlining and optimizing these processes to
enhance efficiency, reduce delays, and improve customer satisfaction.
In addition, the challenges in meeting EMI payments indicate a need for more
effective monitoring and follow-up systems to support borrowers and minimize the
occurrence of delays or missed payments. This could involve implementing
proactive communication strategies, improving coordination between departments,
and addressing documentation errors or omissions.
The findings also emphasize the importance of competitive interest rates, flexible
repayment options, and a strong reputation for banks or financial institutions in
attracting borrowers. These factors play a significant role in the decision-making
process when selecting a lender for two-wheeler vehicle loans

53
 Recommendation
Based on these findings, it is recommended for the two-wheeler finance company to
consider the following actions:
1. Enhance Online Presence: Given the significant percentage of individuals
relying on online searches for loan information, the company should invest in
improving its online presence, providing comprehensive and easily accessible loan
information on their website.
2. Streamline Loan Processing: Address the concerns raised by respondents with
lower satisfaction levels by identifying and improving any inefficiencies in the loan
processing procedures, such as reducing approval time, simplifying documentation
requirements, and enhancing overall efficiency.
3. Timely Disbursement: Develop strategies to reduce delays in loan
disbursement by streamlining verification and approval procedures, ensuring
adequate staffing and resources, and proactively managing external factors that may
cause delays.
4. Improve Communication and Follow-up: Enhance communication and
coordination between departments to minimize breakdowns and improve the
effectiveness of loan monitoring and follow-up processes. Implement robust systems
for timely reminders and notifications to borrowers regarding their EMIs.
5. Address Documentation Issues: Take measures to address issues related to
inaccurate or incomplete documentation by implementing thorough checks and
providing clear guidelines to borrowers.
6. Customer Support and Assistance: Offer proactive customer support and
assistance to borrowers experiencing difficulties in meeting their payment
obligations, providing guidance and potential solutions to minimize delays and
missed payments.
7. Continuous Evaluation and Improvement: Regularly assess the loan
processes, disbursement, collection, and customer satisfaction.

54
 Limitation

1. Majority of the participants belonged to urban areas and therefore study of

customer purchase pattern from rural areas was not sufficiently studied.

2. Sample data of 109 was collected due to time constraint.

3. Data analysis is done based on responses given by the customers.

4. The research study was carried out in 2 months (from 01-05-2022 to 30-

06-2022), which may not be enough for an accurate study.

5.To convince the people for a proper interviewing process is also difficult.

Overall, the research highlights the significance of efficient loan processing

procedures, effective monitoring and follow-up, and clear communication channels
to enhance the loan experience for customers and ensure timely disbursement and
collection of loans. The insights from this study can guide finance companies, such
as Bike Bazaar Finance, in identifying areas for improvement and implementing
strategies to enhance their loan processes and customer satisfaction.

55
 Conclusion:

This Project report aimed to identify areas of improvement and potential challenges in the
loan process, disbursement, and collection of a two-wheeler finance company, specifically
Bike Bazaar Finance. The findings provide valuable insights into the efficiency of loan
processing procedures, loan disbursement timelines, loan collection processes, and the
effectiveness of monitoring and follow-up mechanisms.
The research revealed that delays in loan disbursement and collection are primarily
influenced by factors such as lengthy verification and approval procedures, insufficient
staff or resources, and inefficient loan processing procedures. These challenges highlight
the need for streamlining and optimizing these processes to enhance efficiency, reduce
delays, and improve customer satisfaction.
Additionally, the study identified challenges in meeting Equated Monthly Installment
(EMI) payments, emphasizing the importance of effective monitoring and follow-up
systems to support borrowers and minimize delays or missed payments. Proactive
communication, improved coordination between departments, and addressing
documentation errors or omissions are crucial in ensuring timely payments and a positive
borrower experience.
The research also highlighted the significance of competitive interest rates, flexible
repayment options, and a strong reputation for banks or financial institutions in attracting
borrowers. These factors play a significant role in the decision-making process when
selecting a lender for two-wheeler vehicle loans.
Based on the findings, several recommendations were provided to Two Wheeler Finance
Companies by enhancing their online presence, streamlining loan processing procedures,
ensuring timely disbursement, improving communication and follow-up, addressing
documentation issues, providing customer support and assistance, and continuously
evaluating and improving their loan processes.
It is important to acknowledge the limitations of this research, including the relatively small
sample size, the focus on urban areas, and the time constraint for data collection. These
limitations may impact the generalizability of the findings and suggest the need for further
research to validate and expand upon the results.
In conclusion, this research provides valuable insights into the loan process, disbursement,
and collection in a two-wheeler finance company. By addressing the identified challenges
and implementing the recommended actions, Bike Bazaar Finance and similar companies
can enhance their efficiency, customer experience, and overall financial performance.
56
 References

India Brand Equity Foundation (IBEF). (2023). Financial Services in India. New Delhi: IBEF.

Lodha, S. a. (2018). DEALERS’EXPECTATIONS AND THE IMPORTANCE OF VARIOUS FACTORS IN CHANNEL

FINANCE VERTICAL WITH REFERENCE TO MAHINDRA FINANCE IN MAHARASHTRA AND GUJARAT
REGION.". Pune: Journal of Management Research and Analysis (JMRA).

Sundar, R. (2021). "Impact of Pre Loan assessment customer credit worthiness on loan defaults at later
stages in Rural Segment–a study at Vehicle Financing NBFC. " Turkish Journal of Computer and
Mathematics Education (TURCOMAT) , 232-240.
WheelsEMI Pvt. Ltd. (2023, May). Bike Bazaar Finance. Retrieved from Bike Bazaar:
https://wheelsemi.com/

57
Appendix

Questionnaire

1) How did you become aware of the loan options available for purchasing a two-wheeler vehicle?

a) Online search

b) Bank or financial institution

c) Dealer showroom

d) Word-of-mouth recommendation

e) Other

2) What factors influenced your decision to choose a particular bank or financial institution for obtaining the loan?

a) Competitive interest rates

b) Loan approval process

c) Flexible repayment options

d) Reputation of the lender

e) Other

3) On a scale of 1 to 5, how satisfied are you with the loan processing procedures in terms of efficiency and speed?

4) How long did it take for the loan to be disbursed after submitting the required documents?

a) Less than a week

b) 1-2 weeks

c) 2-4 weeks

d) More than a month

5) Did you experience any delays in the disbursement of the loan amount?

a) Yes

b) No

6) what do you think was the primary cause of the delay?

a) Inefficient loan processing procedures

b) Lengthy verification and approval procedures

c) Insufficient staff or resources allocated to the disbursement process

d) External factors beyond control (e.g., regulatory requirements, delays from third parties)

e) Other

58
7) How satisfied are you with the loan collection process in terms of timely reminders and notifications for Equated Monthly
Installments (EMIs)?

a) Very dissatisfied

b) Dissatisfied

c) Neutral

d) Satisfied

e) Very satisfied

8) Have you experienced any delays or missed payments in making your EMIs?

a) Yes

b) No

9) If yes, what do you think was the primary cause of the delays or missed payments?

a) Inadequate monitoring and follow-up

b) Communication breakdown between departments

c) Inaccurate or incomplete documentation

d) External factors beyond control (e.g., market conditions, regulatory changes)

e) Other

10) how would you rate the effectiveness of the loan monitoring and follow-up by the finance company?

a) Not effective at all

b) Somewhat ineffective

c) Neutral

d) Somewhat effective

e) Very effective

11) Based on your experience, do you believe that delays in loan Disbursement and collection are primarily caused by inefficient
loan processing procedures?

a) Yes

b) No

12) Based on your experience, do you believe that delayed or missed

payments from customers are primarily caused by inadequate monitoring and

follow-up on EMIs?

a) Yes

b) No

59