A study on Personal Loan at Bajaj Finserv Limited

Abstract - Personal Loan is an unsecured loan for personal use which doesn’t require any security
or collateral and can be availed for any purpose, be it a wedding expenditure, a holiday or
purchasing consumer durables, the personal loan is very handy & caters to all Individual needs.
The amount of loan can be ranged from Rs. 50,000 – Rs. 20 lakhs & the tenure for repaying the
loan varies from 1 to 5 years.
The objectives of the study was:
 To find the preferences of customer regarding various types of loan.
 To know the amount of loan generally availed by the respondents.
 To study the Advertising effectiveness in creating awareness among the public.
 To study the satisfaction level of customer regarding different loans schemes provided by Bajaj
Finserv Limited.

The sample size of the study is 100.

Data Collection - Information has been collected from both Primary and Secondary Data.

The study found out that the loan procurement process is with:
 Simplicity - Easy to understand, simple processes and standard documentation.
 Speed - Average turnaround time in loan processing is just two days.
 One of the lowest Personal Loan Interest rates. Minimum Documentation.

This result shows the perception of different customer toward services of Bajaj Finserv Limited.
The 12 % customer thinks that the service delivery of Bajaj Finserv Limited is excellent whereas
47% thinks its service delivery is very good, 31% thinks that services delivery is only good and
6% thinks that the service delivery of Bajaj Finserv Limited is fair, but as nobody can satisfy
everyone at same time, so this is same for Bajaj Finserv Limited, 4%customer are not satisfied
with the services of Bajaj Finserv Limited.
1. The study is limited to Bajaj Financial services.
2. The study is limited to analysis of Personal loan Scheme of Bajaj Financial services.
3. Study is also limited to the reliability of Primary data collected from clients.
4. Study is limited to one year period only.
It was suggested that the interest rates should be regularly revised in order to attract more and
more customer. Some new plans should be introduced regularly to cater the special needs of
customer which provides them more offerings and benefits.
New strategies should be made by the company which enables them to face the competition with
other private leading Non Banking Financial companies.

Index Terms - Personal loan Scheme, Interest rates, Bajaj Financial Services, customer, Interest
Rates.
 CHAPTER I

INTRODUCTION

In the dynamic landscape of personal finance, the role of personal loans has become increasingly
significant, offering individuals a flexible means to meet diverse financial needs. Recognizing the
evolving nature of consumer borrowing, financial institutions play a crucial role in shaping the
accessibility, terms, and impact of personal loans.

This study delves into the intricate nuances of personal loans, with a particular focus on the
practices and trends observed within Bajaj Finserv, a prominent player in the financial services
sector. Bajaj Finserv, renowned for its innovative financial solutions, stands as a key contributor to
the discourse surrounding personal loans, influencing both industry standards and consumer
expectations.

The objectives of this study are manifold: to comprehend the driving factors behind the increasing
demand for personal loans, assess the effectiveness of Bajaj Finserv's personal loan offerings, and
gain insights into the changing preferences and behaviors of borrowers in the contemporary
financial landscape.

Through an exhaustive analysis of data, customer testimonials, and market trends, this study aims
to provide a comprehensive overview of the personal loan landscape, shedding light on the
challenges, opportunities, and best practices that emerge from Bajaj Finserv's experience.

As we embark on this exploration, we anticipate uncovering valuable insights that not only
contribute to the academic understanding of consumer finance but also offer practical implications
for financial institutions and individuals navigating the intricate realm of personal loans.
INTRODUCTION WHAT IS PERSONAL LOAN?
Personal Loan is an unsecured loan for personal use
which doesn’t require any security or collateral and can be availed for any purpose, be it a
wedding expenditure, a holiday or purchasing consumer durables, the personal loan is very
handy & caters to all Individual needs. The amount of loan can be ranged from Rs. 50,000 – Rs.
20 lakhs & the tenure for repaying the loan varies from 1 to 5 years.

BENEFIT OF PERSONAL LOAN

1. A Loan without security: A Personal Loan is not a secured loan (bank doesn’t ask for any
security or collateral) as against a Secured Loan where one is required to pledge a house or
other security to acquire a loan.
2. Simple Documentation: A Personal Loan can be accessed with minimal paperwork or
documentation & doesn’t take much time to procure as against a Secured Loan.
3. No specification about the end use of the loan amount: Customer are not required to disclose the
end use of the money borrowed, Banks are concerned about the fact that whether the borrower is
able to pay back the loan with interest before the due date or not and they confirm this by
checking the income, employment or business & other factors of the borrower.
4. Big Loan amount: Personal Loan is a means to fulfill bigger loan requirement, you can take a
loan ranging from Rs. 50,000 to Rs. 20 lakhs.

BASIS TO COMPARE PERSONAL LOAN

 Compare Interest Rates: Personal Loan can be compared primarily on the basis of interest
rates which vary across banks depending on customer profile which is further linked to your
occupation, salary/income, credit history etc. The personal loan interest rate ranges from 12% to
25%, you must go for that loan which is offering customer at the minimum rate.
 Other Charges: customer should also check on the other charges like processing fee, pre-
payment penalties and documentation fee because they increase the overall loan cost and vary
widely across banks.
 Evaluation of various Loan offers: customer should first calculate the entire loan cost across
banks which constitutes the rate of interest & banks other charges. Evaluate offers keeping the
tenure of the loan constant & compare the rate of interest, EMIs & other charges. This process
 will help customer get the Best Loan deal.
 EMIs: EMI is the monthly equated installment which constitutes the principal amount and the
interest on the principal equally divided across each month in the loan tenure.
 Tenure: Tenure is the time frame for the personal loan payments to be paid back to the bank;
it ranges from 1 year to 5 years. If customers have a longer tenure it will end up paying more
interest & will have lower EMI, on the other hand shorter loan tenure will carry higher EMIs & the
interest amount is less. Customer must compare the loan offers by keeping the tenure constant.
 Eligibility Check: Before taking a personal loan customer must know the eligibility criteria
offered by various banks on the basis of which they offer loans and also compare personal
loan banks. Checking the eligibility parameters will help customer find the best loan deal.
 Turnaround time: It becomes one of the most important factors in evaluation of customer
loan application when customers are in a direct need of money. Turnaround time is the time
which banks take in processing your loan application; customer must check this parameter
which varies from bank to bank.

CHARGES INVOLVE IN PERSONAL LOAN:

 Processing fee: It is a fee charged by banks from the borrowers to process their loan
application; it is normally between 1-2 percentages of the loan amount.
 Prepayment fee: Banks charge borrowers with a fee when they pay the loan EMIs before
the tenure which normally is between 2-5% of the outstanding loan amount.
 Late penalties: When there is a delay in paying customer monthly EMIs of loan, banks
charge a late payment fee with your EMIs. They normally range from 2-3% of the EMI.
 Cheque bounce charges: Banks charge between Rs. 250-500 for every bounced cheque
given for the payment of the loan amount owing to the insufficient funds in customer account.

Documents required in Personal Loan

The documentation process in personal loan is very fast as against secured loans. Following
documents are required by financial institutions to process the loan application:
 Identity proof
 3 to 6 months Bank statements
 Residence proof
 Salary slip
 Guarantors & their same set of documents
In case of self-employed banks require balance sheets, profit & loss account, partnership deed &
other mandatory documents etc.

PERSONAL LOAN CRITERIA BY VARIOUS BANKS

WHAT IS PERSONAL LOAN
Personal Loan is an unsecured loan for personal use which doesn’t require any security or
collateral and can be availed for any purpose, be it a wedding expenditure, a holiday or
purchasing consumer durables, the personal loan is very handy & caters to all Individual needs.
The amount of loan can be ranged from Rs. 50,000 – Rs. 20 lakhs & the tenure for repaying the
loan varies from 1 to 5 years.

BENEFIT OF PERSONAL LOAN

1. A Loan without security: A Personal Loan is not a secured loan (bank doesn’t ask for any
security or collateral) as against a Secured Loan where one is required to pledge a house or other
security to acquire a loan.
2. Simple Documentation: A Personal Loan can be accessed with minimal paperwork or
documentation & doesn’t take much time to procure as against a Secured Loan.
3. No specification about the end use of the loan amount: Customer are not required to disclose the
end use of the money borrowed, Banks are concerned about the fact that whether the borrower is
able to pay back the loan with interest before the due date or not and they confirm this by checking
the income, employment or business & other factors of the borrower.
4. Big Loan amount: Personal Loan is a means to fulfill bigger loan requirement, you can take a
loan ranging from Rs. 50,000 to Rs. 20 lakhs.

BASIS TO COMPARE PERSONAL LOAN

 Compare Interest Rates: Personal Loan can be compared primarily on the basis of interest
rates which vary across banks depending on customer profile which is further linked to your
occupation, salary/income, credit history etc. The personal loan interest rate ranges from 12% to
25%, you must go for that loan which is offering customer at the minimum rate.
 Other Charges: customer should also check on the other charges like processing fee, pre-
payment penalties and documentation fee because they increase the overall loan cost and vary
widely across banks.
 Evaluation of various Loan offers: customer should first calculate the entire loan cost
across banks which constitutes the rate of interest & banks other charges. Evaluate offers
keeping the tenure of the loan constant & compare the rate of interest, EMIs & other
charges. This process will help customer get the Best Loan deal.
 EMIs: EMI is the monthly equated installment which constitutes the principal amount and the
interest on the principal equally divided across each month in the loan tenure.
 Tenure: Tenure is the time frame for the personal loan payments to be paid back to the
bank; it ranges from 1 year to 5 years. If customers have a longer tenure it will end up paying
more interest & will have lower EMI, on the other hand shorter loan tenure will carry higher EMIs
& the interest amount is less. Customer must compare the loan offers by keeping the tenure
constant.
 Eligibility Check: Before taking a personal loan customer must know the eligibility criteria
offered by various banks on the basis of which they offer loans and also compare personal loan
banks. Checking the eligibility parameters will help customer find the best loan deal.
 Turnaround time: It becomes one of the most important factors in evaluation of customer
loan application when customers are in a direct need of money. Turnaround time is the time
which banks take in processing your loan application; customer must check this parameter
which varies from bank to bank.

CHARGES INVOLVE IN PERSONAL LOAN :

 Processing fee: It is a fee charged by banks from the borrowers to process their loan
application; it is normally between 1-2 percentages of the loan amount.
 Prepayment fee: Banks charge borrowers with a fee when they pay the loan EMIs before
the tenure which normally is between 2-5% of the outstanding loan amount.
 Late penalties: When there is a delay in paying customer monthly EMIs of loan, banks
charge a late payment fee with your EMIs. They normally range from 2-3% of the EMI.
 Cheque bounce charges: Banks charge between Rs. 250-500 for every bounced cheque
given for the payment of the loan amount owing to the insufficient funds in customer account.
Documents required in Personal Loan
The documentation process in personal loan is very fast as against secured loans. Following
documents are required by financial institutions to process the loan application:
 Identity proof
 3 to 6 months Bank statements
 Residence proof
 Salary slip
 Guarantors & their same set of documents
In case of self-employed banks require balance sheets, profit & loss account, partnership deed &
other mandatory documents etc.

PERSONAL LOAN CRITERIA BY VARIOUS BANKS

Banks offer Personal Loan to borrowers depending on various factors such as income,
employment, continuity of business so as to make sure that they repay the loan with interest before
the due date. The eligibility criterion of a Personal Loan is primarily based on the work profile of a
loan seeker which is broadly divided into the following two classes:
 Self-employed
 Salaried
In addition to the above factors banks also consider other aspects such as age, work experience,
existing relationship with the bank, repayment capacity etc.
To find eligibility Criteria across various banks in accordance with the above parameters;
BANK HDFC Bank Citi Bank Bajaj-Finserv Ltd.

Rate of
15.5% - 22% 16.5% to 20% 18% - 28%
Interest
2% if salaried account
Processing
in HDFC - other wise 2% of loan amount 2%
Fee
2.5%
Rs.50,000 - Rs.40,000 -
Loan Amount Rs.50,000 -Rs.15,00,000
Rs.15,00,000 Rs.5,00,000

Prepayment
4% 5% 4%
Charges

Disbursal
2Days - 7Days 2 working days 4 working days
Time
Documents Identity Proof: Identity Proof: Passport/ Identity Proof :
Passport/ Driving Driving License/PAN Passport/ Driving
License/PAN card/ card/Photo credit card (with License/PAN card/
Photo credit card embossed Signature and last Photo credit card
(with embossed two months statement)/ (with embossed
Signature and last two banker’s sign verification. Signature and last two
months statement)/ (Anyone of the above) Age months statement)/
banker’s sign Proof: PAN Card/Passport/ banker’s sign
verification (Anyone Driving License /School leaving verification (Anyone
of the above) Age certificate/ Voter’s card/Birth of the above) Age
Proof : PAN Card/ Certificate/LIC policy (only for Proof
Passport/ Driving age Proof). (Anyone of the
License /School above) Address Proof :
leaving certificate/ Passport/ Telephone bill
Voter’s card/Birth (BSNL/MTNL)/Electricity bill/
Certificate/LIC policy Title deed of property/Rental
(only for Age Proof). agreement/Driving license/
(Anyone of the Election ID
above) Address Proof
: Passport/ Telephone
bill
(BSNL/MTNL)
/Electricity bill/ Title
deed of
property/Rental
agreement/ Driving
license/ Election ID
card/ Photo-credit
card (with last two
month statements)
(Anyone of the
above) Income
Proof : Latest salary
slip/current dated
salary Certificate with
latest form 16
(Anyone of the
above) Job Continuity
Proof : Form
16/relieving
letter/appointment

card/Photo-credit card (with last

two month Statements).
(Anyone of the above) Income
Letter (for last two Proof: Latest 3 month salary
: PAN Card/ Passport/
months) (Anyone of slip (computerized pay slip with
Driving License
the above) Banking company Logo/pay slip on
/School leaving
History :Bank company letterhead) (Anyone of
certificate/ Voter’s
statements of latest 2 the above) Job Continuity Proof
card/Birth Certificate/
months/ 3 months : Form 16/relieving
LIC policy (only for
bank passbook letter/appointment Letter (for
age Proof). (Anyone
(Anyone of the last two months) (Anyone of the
of the above)
above) above) Banking History :Bank
statements of latest 6 months
and Existing loan sanction letter
if any. (Anyone of the above)
Address Proof :
Passport/ Telephone
bill (BSNL/MTNL)

/Electricity bill/ Title

deed of
property/Rental
agreement/ Driving
license/ Election ID
card/ Photo-credit
card (with last two
month statements)
(Anyone of the
above) Income
Proof : Latest
3 month’s salary slip
(Computerized pay
slip with company
Logo/pay slip on
company letter head)
(Anyone of the
above) Job Continuity
Proof : Form
16/relieving
letter/appointment
Letter. (Anyone of the
above) Banking
History :Bank
statements of latest

6 months (Anyone of
the above)
SCOPE OF THE STUDY

1. Study is useful for prospective customers who want to take or planning to avail personal loan
facility from Bajaj Financial services.
2. Study is helpful to know about the personal Loan facility of Bajaj Financial services like Its
Eligibility criteria, documentation, its rate of Interest.
3. Through this study we also came to know how much amount of loan sanctioned under this
scheme for a salaried person.
4. Through this study, we also came to know that within how much time the personal loan of an
Individual is being sanctioned and the processing charges on personal loan.
OBJECTIVES OF THE STUDY

The study was conducted to aiming at fulfilling the following objectives:

 To find the preferences of customer regarding various types of loan: This objective focused on
the judgment of customer preferences regarding various types of loan provided
 by Bajaj Finserv Limited such as Secured Loan, Unsecured loans and Home Equity Loan. The
result of this objective will provide the most preferable type of loan among various types of
loan provided by Bajaj Finserv Limited. So this objective will help the company to Focus on
most customers’ preferable area.
 To know the amount of loan generally availed by the respondents: This objective includes the
study of the amount of loan which is generally borrowed by the customers.
 To study the Advertising effectiveness in creating awareness among the public: This objective
will help to judge the effectiveness of advertising strategy used by Bajaj Finserv Limited to
create the awareness among the potential customer about the products and services offered by the
company.
 To study the satisfaction level of customer regarding different loans schemes provided by Bajaj
Finserv Limited: The final objective of the research is to study the satisfaction level of the
customer who borrowed fund under particular scheme offered by Bajaj Finserv Limited.
RESEARCH METHODOLOGY

Research Methodology is a way to systematically solve the research problem. The Research
Methodology includes the various methods and techniques for conducting a Research. This project
comes under the head of “Marketing Research”. The “Marketing Research” is the systematic
design, collection, analysis and reporting of data and finding relevant solution to a specific
marketing situation or problem”.
Sample size – Sample size refers to the total numbers of items about which the information is
desired. The sample size of the study is 100.
Data Collection - Information has been collected from both Primary and Secondary Data.
Primary Data – Primary data are those, which are collected for the first time, and thus happen to
be original in character.
Primary Data has been collected in this study by conducting survey through Questionnaire.
Secondary Data – Secondary Data are those which have already been collected by someone else
and which already had been passed through the statistical process.
Secondary data has been collected in this study through Magazines, Web sites, Newspaper and
Journals.
LIMITATIONS OF THE STUDY

1. The study is limited to Bajaj Financial services.

2. The study is limited to analysis of Personal loan Scheme of Bajaj Financial services.
3. Study is also limited to the reliability of Primary data collected from clients.
4. Study is limited to one year period only.
5. Availability of time period is also acting as one of major constraints in this study.
 CHAPTER II
REVIEW OF LITERATURE

REVIEW OF LITERATURE
Trevor Richards (1996) explains by defining the conversion model – a model used as a
marketing tool to identify commitment to different brands of goods or services. Argues that there
is a difference between committed and uncommitted customers which are not related to service
quality and that this makes it difficult to predict customer retention based solely on these grounds.
Other factors also drive commitment. Presents two short case studies based on these
assumptions.
Kurt Matzler, Hans H. Hinterhuber, Franz Bailom, Elmar Sauerwein (1996) describes on
how to delight your customers, Asks which product qualities are decisive for the satisfaction of the
customer and which features merely prevent dissatisfaction. They proposes Kano’s model of
customer satisfaction for answering these questions and for drawing conclusions for the
management of product development.
In his model, Kano distinguishes between three types of product requirement which influence
customer satisfaction in different ways when met: must-be requirements, which are basic criteria
of a product - if these requirements are not fulfilled, the customer will be extremely dissatisfied;
one- dimensional requirements, where customer satisfaction is proportional to the level of
fulfillment, the higher the customer’s satisfaction and vice versa; and attractive requirements,
which are the product criteria which have the greatest influence on how satisfied a customer will
be with a given product. Attractive requirements are neither explicitly expressed nor expected by
the customer.
Antony Beckett, Paul Hewer, Barry Howcroft (2000) explains an exposition of consumer
behavior in the financial services industry, Deregulation and the emergence of new forms of
technology have created highly competitive market conditions which have had a critical impact
upon consumer behavior.
Bank providers must, therefore, attempt to better understand their customers in an attempt not only
to anticipate but also to influence and determine consumer buying behavior. The paper accordingly
presents and develops a model which attempts to articulate and classify consumer behavior in the
purchasing of financial products and services.
The theoretical insights generated by this model are then used to examine qualitative research data
gained from focus group discussions on consumers’ attitudes to their financial providers and their
financial products. Finally, these findings are examined for the potential insights they provide to
bank providers attempting to identify appropriate strategies which are conducive to increased
customer retention and profitability.
Randi Priluck (2003) analyses the relationship marketing can mitigate product and service
failures, Relationship marketing is beneficial to firms because it can foster customer loyalty and
re-patronage behavior. Consumers engaged in relational exchanges are more satisfied than those
in discrete transactions because of the ease and psychological comfort of purchasing from a
familiar company. This research investigates the power of relationship marketing to mitigate in
two situations. One exposes consumers to poor product performance and examines their levels of
trust, commitment and satisfaction.
The second presents a product failure that is followed by a lapse in service recovery and
measures satisfaction and exit behavior. The findings of both studies suggest that relationships
make up for increasingly strong negative encounters, providing a level of insulation for the
marketer. Implications for service firms are discussed.
Adam Lindgreen (2004) enumerates few published empirical studies have examined the design,
implementation, and monitoring of customer relationship management (CRM) programmes at a
practical level. The article develops a single embedded case study on Dagbladet Børsen
(http://www.borsen.dk), the largest publisher of business-related materials in Scandinavia.
The article first introduces the reader to the philosophy behind CRM. Following that, it considers
key areas of a four-year long CRM program me and offer insights into the procedure that has
been developed by SJP (http://www.sjp.dk), the consulting firm that was brought into assist.
 CHAPTER III
INDUSTRY PROFILE & COMPANY PROFILE

INDUSTRY PROFILE

A non-banking financial institution (NBFI) or non-bank financial company (NBFC) is

a financial institution that is not legally a bank; it does not have a full banking license or is not
supervised by a national or international banking regulatory agency. NBFC facilitate bank-
related financial services, such as investment, risk pooling, contractual savings, and market
brokering.[1] Examples of these include hedge funds, insurance firms, pawn shops, cashier's
check issuers, check cashing locations, payday lending, currency exchanges, and microloan
organizations.[2][3] Alan Greenspan has identified the role of NBFIs in strengthening an economy, as
they provide "multiple alternatives to transform an economy's savings into capital investment which
act as backup facilities should the primary form of intermediation fail."[4]

The term non-bank likely[vague] started as non-deposit taking banking institution. However, due to
financial regulations adopted from English speaking countries, non-English speaking countries took
"non-bank" as a single word. This is probably[vague] because in English speaking countries the term
'bank' is generally accepted as equivalent to 'financial institution' but outside English speaking
countries, especially developing countries, see the term bank as deposit taking institutions only, and
every other financial service providers as something that must not be termed a bank. This is
possibly[vague] due to language differences. But also importantly, this is likely [vague] due to developing
countries in the past having adopted the western banking system much later than the West. As
developing countries adopted, or learned the financial system from English speaking countries, there
was a higher focus in regulatory terms such as bank and non-bank, while not understanding that non-
bank is actually a shortened version of non-deposit taking bank. This is in contrast to English
speaking countries as in English speaking countries the general public, as well as regulatory
institutions, refer to financial institutions as simply a "bank" in many instances.
Operations of non-bank financial institutions are not covered under a country's banking regulations.
[5]

Role in financial system

NBFIs supplement banks by providing the infrastructure to allocate surplus resources to individuals
and companies with deficits. Additionally, NBFIs also introduces competition in the provision of
financial services. While banks may offer a set of financial services as a packaged deal, NBFIs
unbundle and tailor these service to meet the needs of specific clients. Additionally, individual
NBFIs may specialize in one particular sector and develop an informational advantage. Through the
process of unbundling, targeting, and specializing, NBFIs enhances competition within the financial
services industry.[6]

Non-bank financial companies (NBFCs) offer most sorts of banking services, such as loans and
credit facilities, private education funding, retirement planning, trading in money
markets, underwriting stocks and shares, TFCs(Term Finance Certificate) and other obligations.
These institutions also provide wealth management such as managing portfolios of stocks and
shares, discounting services e.g. discounting of instruments and advice on merger and
acquisition activities. The number of non-banking financial companies has expanded greatly in the
last several years as venture capital companies, retail and industrial companies have entered the
lending business. Non-bank institutions also frequently support investments in property and prepare
feasibility, market or industry studies for companies. However they are typically not allowed to
take deposits from the general public and have to find other means of funding their operations such
as issuing debt instruments.

NBFCs are neither providing the cheque book nor saving account and current account. It only takes
fixed deposit or time deposits.

Growth

Some research suggests a high correlation between a financial development and economic growth.
Generally, a market-based financial system has better-developed NBFIs than a bank-based system,
which is conducive for economic growth.linkages between bankers and brokers.[7][8]
Stability

A multi-faceted financial system that includes non-bank financial institutions can protect economies
from financial shocks and enable speedy recovery when these shocks happen. NBFIs provide
“multiple alternatives to transform an economy's savings into capital investment, [which] serve as
backup facilities should the primary form of intermediation fail.”[9]

However, in the absence of effective financial regulations, non-bank financial institutions can
actually exacerbate the fragility of the financial system.

Since not all NBFIs are heavily regulated, the shadow banking system constituted by these
institutions could wreak potential instability. In particular, CIVs, hedge funds, and structured
investment vehicles, up until the financial crisis of 2007–2008, were entities that focused NBFI
supervision on pension funds and insurance companies, but were largely overlooked by regulators.

Because these NBFIs operate without a banking license, in some countries their activities are largely
unsupervised, both by government regulators and credit reporting agencies. Thus, a large NBFI
market share of total financial assets can easily destabilize the entire financial system. A prime
example would be the 1997 Asian financial crisis, where a lack of NBFI regulation fueled a credit
bubble and asset overheating. When the asset prices collapsed and loan defaults skyrocketed, the
resulting credit crunch led to the 1997 Asian financial crisis that left most of Southeast Asia and
Japan with devalued currencies and a rise in private debt.[10]

Due to increased competition, established lenders are often reluctant to include NBFIs into existing
credit-information sharing arrangements. Additionally, NBFIs often lack the technological
capabilities necessary to participate in information sharing networks. In general, NBFIs also
contribute less information to credit-reporting agencies than do banks.[11]

For continual growth and sustenance of NBFCs, it is important to have a regulation around them
while maintaining their innovativeness. An introduction of regulatory sandbox in different
ecosystem will help them achieve the desired results.

Types
Risk-pooling institutions

Main article: Insurance company

Insurance companies underwrite economic risks associated with illness, death, damage and other
risks of loss. In return to collecting an insurance premium, insurance companies provide a
contingent promise of economic protection in the case of loss. There are two main types of insurance
companies: general insurance and life insurance. General insurance tends to be short-term, while life
insurance is a longer-term contract, which terminates at the death of the insured. Both types of
insurance, life and general, are available to all sectors of the community.

Although insurance companies do not have banking licenses, in most countries insurance has a
separate form of regulation specific to the insurance business and may well be covered by the
same financial regulator that also covers banks. There have also been a number of instances where
insurance companies and banks have merged thus creating insurance companies that do have
banking licenses.

Contractual savings institutions

Contractual savings institutions run investment funds like pension and mutual funds. They give
individuals the opportunity to invest in funds as fiduciaries rather than as principals. Funds pool
resources from individuals and firms into various financial instruments including equity, debt,
and derivatives. The individual holds equity in the fund itself, rather directly in the investments.

The two main types of mutual funds are open-end and closed-end funds. Open-end funds generate
new investments by allowing the public to purchase new shares at any time, and shareholders can
liquidate their holding by selling the shares back to the open-end fund at the net asset value. Closed-
end funds issue a fixed number of shares in an IPO. In this case, the shareholders capitalize on the
value of their assets by selling their shares in a stock exchange.

Mutual funds are usually distinguished by the nature of their investments. For example, some funds
specialize in high risk, high return investments, while others focus on tax-exempt securities. There
are also mutual funds specializing in speculative trading (i.e. hedge funds), a specific sector, or
cross-border investments.
Pension funds are mutual funds that limit the investor's ability to access their investments until a
certain date. In return, pension funds are granted large tax breaks in order to incentivize the working
population to set aside a portion of their current income for a later date after they exit the labor force
(retirement income).

Market makers
Main article: Market maker

Market makers are broker-dealer institutions that quote a buy and sell price and facilitate
transactions for financial assets. Such assets include equities, government and corporate debt,
derivatives, and foreign currencies. After receiving an order, the market maker immediately sells
from its inventory or makes a purchase to offset the loss in inventory. A major contribution of the
market makers is improving the liquidity of financial assets in the market.

Specialized sectorial financiers

They provide a limited range of financial services to a targeted sector. For example, real estate
financiers channel capital to prospective homeowners, leasing companies provide financing for
equipment and payday lending companies that provide short-term loans to individuals that
are underbanked or have limited resources, like Uganda Development Bank.

Financial service providers

Financial service providers include brokers (both securities and mortgage), management consultants,
and financial advisors, and they operate on a fee-for-service basis. Their services include: improving
informational efficiency for the investors and, in the case of brokers, offering a transactions service
by which an investor can liquidate existing assets.

In Asia

According to the World Bank, approximately 30% total assets of South Korea's financial system was
held in NBFIs as of 1997.[12] In this report, the lack of regulation in this area was claimed to be one
reason for the 1997 Asian financial crisis.

As of 2019, China's banking system is estimated to hold the equivalent of $8.3 trillion USD in assets
(or approximately 20% of total bank assets) largely in the form of loans wrapped by NBFI
investments.[13]
In Europe

The European Commission's Payment Services Directive (PSD) regulates payment services
and payment service providers throughout the European Union (EU) and European Economic Area.
The PSD describes which types of organisation can provide payment services in Europe: credit
institutions (i.e. banks), certain authorities (e.g. central banks, government bodies), electronic money
institutions (EMI) and payment institutions. Organisations that are not credit institutions or EMI can
apply for authorisation to be a payment institution in any EU country of their URL choice (where
they are established) and then passport their payment services into other states across the EU.

Classification

By liability structure

Based on their liability structure, NBFCs have been divided into two categories.

1. Category ‘A’ companies (NBFCs-D) accept public deposits

2. Category ‘B’ companies do not accept public deposits
1. Category ‘B’ companies with under a billion euros (NBFCs-ND)
2. Category ‘B’ companies with over €1B (systemically important, NBFCs-ND-SI)

NBFCs-D are subject to requirements of capital adequacy, liquid assets maintenance, exposure
norms (including restrictions on exposure to investments in land, building and unquoted
shares), asset and liability management (ALM) discipline and reporting requirements.

In contrast, until 2006, NBFCs-ND were subject to minimal regulation. Since April 1, 2007, non-
deposit taking NBFCs with assets over €1B are classified as systemically important. Prudential
regulations, such as capital adequacy requirements and exposure norms with reporting requirements,
apply to these companies. The ALM reporting and disclosure norms have also been made applicable
to them at different points in time.
 COMPANY PROFILE
The financial services and wind energy businesses were transferred to Bajaj Finserv Limited
(BFL) as part of the concluded demerger from Bajaj Auto Limited, approved by the High Court
of Judicature at Bombay by its order dated 18 December 2007.It is a financial conglomerate with
stakes in the financing sector (Bajaj Finance),the life insurance business (Bajaj Life Insurance),
the general insurance business (Bajaj General Insurance) and, the mutual fund business (Bajaj
Finserv Mutual Funds).

Bajaj Holdings and Investments Limited (BHIL) came into existence when the original company
separated its auto and finance assets. This new entity, BHIL is the parent company which holds
39.29% stake in Bajaj Finserv[20] and now holds surplus cash and investments with the purpose
of providing financial support to the auto and/or finance business or exploring fresh business
prospects. The BHIL 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).

Starting in 2017, Bajaj Finserv adopted blockchain technology for services like travel insurance,
allowing claim resolution before customer registration. By 2023, they've extended blockchain's
utility to enhance trader and customer connections.

Apart from financial services, it is also active in wind energy generation with an installed
capacity of 65.2 MW. In the quarterly results for June 2022, the company's board of directors has
approved the sub-division of its equity shares in a ratio of 1:5.

During a block deal in the last week of December 2022, promoter Jamnalal Sons increased its
holdings in the company. In the open market, the promoter purchased equity shares worth a total
of ₹100.41 crore. However, the other promoter, Rishab Family Trust, was able to sell a portion
of the company's shares.

SUBSIDIARIES
Bajaj Finance was initially incepted as Bajaj Auto Finance in 1987. Later diversified into
business and property financing.
 Bajaj Allianz Life Insurance is a joint venture between Bajaj Finserv and Allianz SE. Being one
of the private insurance companies in India, it offers insurance products for financial planning
and security.[31] The company received the Insurance Regulatory and Development Authority
(IRDA) certificate of Registration on 3 August 2001 to conduct Life insurance business in India.
Bajaj Allianz General Insurance is a private general insurance company in India. It is another
joint venture between Bajaj Finserv Limited and Allianz SE. It is headquartered in Pune with
offices in over 200 cities in India and more than 3,500 employees as of 2018.
Bajaj Housing Finance is provides various housing finance products and services to individuals
and businesses. They offer home loans, loan against property, and other related financial
solutions.
Bajaj Finserv Asset Management Company is an asset management company.In March 2023, the
final registration from the Securities and Exchange Board of India was granted to commence
mutual fund business operations under Bajaj Finserv Mutual Fund.
Bajaj Finserv Direct (Bajaj Markets) operates as an internet-based marketplace, providing a
range of financial products and services through its digital platform. It serves as a registered
Corporate Agent under Insurance Regulatory and Development Authority, a registered
Investment Adviser under Securities and Exchange Board of India, a registered third-party app
provider for Unified Payments Interface payments, and a digital lending platform for its partner
institutions.
Bajaj Finserv Health is a healthtech solution company.

Bajaj Finserv Limited

Type Public

Traded as BSE: 532978

NSE: BAJAJFINSV

NSE NIFTY 50 Constituent

ISIN INE918I01026
Industry Financial services

Founded May 2007 (16 years ago)[1]

Founder Jamnalal Bajaj

Headquarters Pune, Maharashtra, India

Key people SanjivBajaj

(Chairman & Managing Director)

Products Insurance, credit cards, mutual fund, mortgage loans, investment management[2]

Revenue ₹82,072 crore (US$10 billion)[3] (2023)

Operating income ₹16,809 crore (US$2.1 billion)[3] (2023)

Net income ₹12,208 crore (US$1.5 billion)[3] (2023)

Total assets ₹405,509 crore (US$51 billion)[1] (2023)

Total equity ₹46,407 crore (US$5.8 billion)[1] (2023)

Number of employees 105 (2022)[4]

Parent Bajaj Group[1]

Subsidiaries Bajaj Finance[5]

Bajaj Allianz General Insurance
Bajaj Allianz Life Insurance
Bajaj Housing Finance[1]
Bajaj Finserv Markets [6]

Bajaj Finserv Asset Management Company

Bajaj Finserv Direct (Bajaj Markets)

Bajaj Finserv Health

Website www.bajajfinserv.in

SWOT Analysis of Bajaj Finserv

Bajaj Finserv is a part of Bajaj Holdings & Investments Limited, is an Indian financial services
company focused on lending, asset management, wealth management, and insurance in the Indian
financial ecosystem. We shall do a thorough SWOT Analysis of Bajaj Finserv to gain insights into
the company’s strengths, weaknesses, opportunities, and threats.
To better understand the SWOT analysis of Bajaj Finserv, refer to the infographic below:
 Let’s proceed further with expanding on the strengths of the Bajaj Finserv from the SWOT analysis
of Bajaj Finserv

Strengths of Bajaj Finserv

Strengths express what an organization excels at doing and what differentiates it from the
competition: a strong brand, loyal customer base, a strong balance sheet, unique technology, and so
on. Bajaj Finserv must then decide on how to use those outcomes to attract emerging investors.
 Large Range of Financial Products: One of the strengths of Bajaj Finserv is its ability to offer a
wide range of financial services to its massive customer base. Securities and investments were created to
provide its customer base short-term or long-term financial gains.
 High Revenue Turnover: Bajaj Finserv has had a steady increase over the years in revenue even
during and after the advent of Covid 19. Revenue is upheld by an enormous extent of good management
structure, marketing strategies, solid financial product development, and cost-cutting techniques.
 Solid Capital Structure: Maintaining a growing capital structure is one of the base objectives of a
business that Bajaj Finserv is upholding. In the course of the last five fiscal years, the gathering has raised Rs
14908 crores of value which has fundamentally expanded the net worth of the organization.
 High Returns on Investment (ROI): Over the past five years now, Bajaj Finserv has been giving its
shareholders high returns on investments through its stocks traded on the exchange Year on Year(YoY).
 Swift Financial Services: Another strength of Bajaj Finserv is that its customers get quick services
and this is one of the unique strengths of Bajaj Finserv which provides the customers with one-stop-shop
financial offers in three minutes which has now reduced to 3 seconds.

Weaknesses of Bajaj Finserv

Weaknesses limit an organization from achieving its ideal level. To remain competitive they are part
of the business that needs improvement: for example, a weak brand, higher average turnover, high
levels of debt, an inadequate supply chain, or lack of capital.
 Decreased Mutual Funds Holdings: The mutual funds holding of Bajaj Finserv has dropped
drastically in the past quarters. Mutual funds diminished their shareholding last quarter, a decline in net profit
with falling profit margin quarter on quarter(QoQ), companies with high gearing ratio, companies with weak
financials.
 Non-Performing Assets of Bajaj Finserv: The major setback of the financial service sector is NPAs
(Non-Performing Assets). Typically, NPAs denote loans that are not recoverable. This inevitably leads to
financial losses for Bajaj Finserv.
 Lack of Coverage in Rural Areas of Financial Products: It has been revealed that the financial
service industry focuses more on urban areas in most countries, while rural regions are ignored. In the
banking sector, this is a considerable weakness.

Opportunities for Bajaj Finserv

Opportunities refer to favourable external components that could give an organization a competitive
edge. For example, if a country cuts tariffs, increasing sales and market share.
 Global Opportunities for Bajaj Finserv: A major opportunity for financial service players in the
Indian market is the global financial service market, it is inarguably that the global market is worth billions of
dollars. Bajaj Finserv is mainly focused on the Indian market, which it needs to increase its reach outside the
Indian market as well making it gain more customers.
 Rise in the Private Banking Sector Globally: The financial service industry around the world is
highly regulated by the public sector authorities and their respective central banks. With the emergence of
private sector banks, this sector is experiencing structural and functional shifts, primarily due to the
adaptation of new technology and intensified competition, thereby benefiting end customers.

 Advancements in Technology in the Banking Sector: The banking industry has always functioned
based on technology. This is evident that digital services provided by banks today are based on technology.
Thus, banks should continue to adopt the latest technological advances. To draw future generations, they
should focus on putting out newer banking and financial service using digital marketing skills.
Wait a minute. You might be thinking that what are digital marketing skills? Well, digital
marketing skills include various subparts of digital marketing such as website building, SEO, social
media marketing, e-commerce, online reputation and many more. You can check out IIDE 13+ short
term courses in digital marketing which includes all of these. These courses can get you up to speed
in as little as 5 days in a range of digital skills and expertise.
 Threats to Bajaj Finserv
Threats refer to components that have the potential to damage an organization. For example,
unfavourable government policies, drastic decline in revenue. Other common threats include things
like rising costs for materials, increasing competition, and tight labour supply, and so on.
 Government Policies: Government regulations can directly affect the banking sector of a country,
these government policies might be unfavourable for Bajaj Finserv.
 Global Uncertainty in the Financial Ecosystem: The world is going through difficult economic
times at the moment. The international banking sector has all been affected by trade wars, protectionist
policies, and economic downturns. If the world’s economic conditions do not change, the financial service
industry will face a bleak future.
 Lack of Proper Cyber Security Systems: The current banking industry relies entirely on the cyber-
world. Whether it is data storage, monetary transactions, or personal information, everything is stored
digitally. This makes the banking sector a primary target for hackers who are seeking to benefit financially by
leveraging flaws in the bank’s digital infrastructure. Banks need to take effective cybersecurity steps to
safeguard their records, they will face a significant cyberspace threat.

To Conclude
The financial service industry is one of the fastest-changing and growing industries in the world.
Financial service companies are adopting new technologies to increase their business. They have
also contributed in general to the world’s economic growth.
But their shortcomings, such as Non-performing Assets (NPAs) and a lack of adequate rural
presence, must be tackled. The exciting news is that by providing quality service and growing into
untapped regions, they will work towards turning these weaknesses into strengths and threats into
opportunities.
 Board of Directors
 Sanjiv Bajaj. Chairman and Managing Director. Read More.
 Madhur Bajaj. Director. Read More.
 Rajiv Bajaj. Director. Read More.
 D.J. Balaji Rao. Read More.
 Dr. Naushad Forbes. Independent Director. ...
 Anami Roy. Independent Director. Read More.
 Radhika Haribhakti. Independent Director. ...
 Pramit Jhaveri. Independent Director.
 CHAPTER IV
DATA ANALYSIS & INTERPRETATION

Bajaj Finserv Limited Personal Loan

 Bajaj Finserv Limited is a Non Banking Finance Company. The Company started its
operations in January 2006.Fullerton offers you a wide range of financial products like Home
Loans, home equity loans Business Loans and life insurance. It has more than 800 branches
across India. Bajaj Finserv Limited Personal Loan offers:
 Simplicity - Easy to understand, simple processes and standard documentation
 Speed - Average turnaround time in loan processing is just two days
 One of the lowest Personal Loan Interest Rates.
 Minimum Documentation.

Eligibility Criteria for Bajaj Finserv Ltd. Personal Loan

Age of Applicant Min-21 years; Max-60 years.
No. of years in employment 3 years & above Current Experience 6 months & above
Net Monthly Income Rs. 12,500/- & above

Loan Amount offered by Bajaj Finserv Ltd. Minimum Funding Rs. 40,000/-
Maximum Funding Rs. 5, 00,000/-

Loan Tenure offered by Bajaj Finserv Ltd. Minimum Tenure 12 months

 Maximum Tenure 60 months

Turn Around Time of Bajaj Finserv Ltd. Personal Loan Turn around time 4 working
days

Processing Fee of Bajaj Finserv Ltd. Personal Loan Processing fee 2.5% to 3.5% of loan
amount

The below table is prepared by our market experts and lists the banks which constitute 90% of
personal loan market in India to help users save time in their search for personal loan.
Personal Loan Interest Rates. Interest rate Rate Type
Bank Name range
HDFC Bank Personal Loan 14% - 24% fixed Monthly reducing
balance
ICICI Personal Loan 16% to 24% Monthly reducing
fixed balance
Axis Personal Loan 14% to 21% Monthly reducing
fixed balance
Fullerton Personal Loan 18% -34% fixed Monthly reducing
balance
CitiFinancial Personal Loan 21% -24% fixed Monthly reducing
balance
SBI Personal Loan 16% fixed Daily reducing
balance
1. Age of the Respondents

Age yrs 18-28yrs28-38 yrs38-50 yrsMore than

50 yrs
PERCENTAGE30% 26% 24% 20%

The respondent of research comprises of 30% of 18- 28 years, 26% of 28-38 years, 24% of 38-50
years and 20% of more than 50 years. This classification of age group is required to know the
perception of person for taking loan at different stage of life. Generally Bajaj Finserv Limited
provides loan to salaried individuals and new entrepreneurs, therefore our sample size is consists
56% of respondents lies between the age group of 18 to 38years. After setting the age group
composition for survey the next parameter for differentiating respondent is Income level.
2.Annual Income of the Respondents

IncomeBelow 1 Lac1-2 Lac2-5 LakhsAbove 5 Lakhs

%age 15% 40% 35% 10%

Second classification of respondent is based on the basis of their annual income. This classification
is done to know that mostly which income level people have more demand for loan. This research
is targeted to know the demand of loan by salaried individual and small entrepreneurs, therefore
the sample size consists of 15% Lower Income level and 40% middle income level for judging the
demand of salaried individual and to judge the demand of small entrepreneurs the sample size
consists of 35% upper middle income level and 10% that are having annual income more than 5
lakhs.
3. Occupation of the Respondent

OccupationGovernment Private EmployeeBusinessman

Employee
Percentage 30.00 25.00 45.00

The third important consideration which helps to identify that whether the respondent is salaried
individual or small entrepreneurs is occupation. The Occupation comprises of Government
Employee, private employee that fall into salaried individual category and third component of
occupation is Businessman which indicates small entrepreneurs. The weight provided to salaried
individual i.e. to Government and private employee is 55% because Bajaj Finserv Limited
offered more product to this category and For small entrepreneurs the weight assigned is 45%,
because this weight can give justifiable result to divide the demand of loan on the basis of
occupation.
4.From which source you knew about the various schemes of Bajaj Finserv Limited?

Sources News Television InternetFriends

Paper Media
Percentage44% 12% 20% 24%

Bar graph showing Advertising Strategies schemes of Bajaj Finsery Limited

This question is asked in order to know the effectiveness of the advertisement strategy adopted
by Bajaj Finserv Limited. The result found by the survey shows that most of the customer knew
about the various loan schemes through news paper & Internet. Therefore company can make
more use of the news paper and Internet to increase its customer base.
Secondly the company also getting the benefit of its existing customer to advertise its product,
because 24% of customer knew about the schemes of Bajaj Finserv Limited through their friends
who had taken loan from Bajaj Finserv Limited.
Bajaj Finserv Limited is not making use of Television media frequently because it is very costly;
therefore resultantly it contributed only 12% in creating the awareness among the customer
regarding various schemes of Bajaj Finserv Limited.
5. Which type of loan you availed from Bajaj Finserv Limited?

Types Secu Unsec Ho Home

red ured me equity
Loan Loan Loa loan
n
Percentage 42% 18% 28% 12%

Bar Graph showing percentage of Pariwar and Vyapar

The most preferred loan by customer is secured loan. This loan is easily available to customer
because there is less risk faced by Bajaj Finserv Limited in giving this type of loan as it is secured
by some assets of customer. Second more preferred loan than secured loan is Home loan which is
availed by 28% of customer other loan are availed by18% and 12% of sample size
6. What is your amount of loan?

Amount of Loan %age of

Respondents
0 - 2,00,000 28%
2,00,000-5,00,000 45%
5,00,000- 10,00,000 32%
10,00,000 or more 5%

This question is asked to know that generally how much amount of loan is availed by the
customer. The result of survey shows that 45% customer availed 2 lakh to 5lakh loan, 32% availed
5 to 10 lakh, 28% availed loan up to Rs 2lakh and there are very less customer who availed loan
more than 10 lakh. So the Bajaj Finserv Limited is famous for medium loan, but there are very less
number of customer for large amount loan. Therefore the company needs to focus on the schemes for
large amount loan to become famous in this segment also.
7. What is the repayment period of your loan?

Number of Years percentage of

Respondents
Below 2 Years 19%
2-5 Years 43%
5-10 Years 28%
More than 10 Years 10%

The profit of the company depends on the repayment period, because if the repayment period is
long than customer will pay interest for long period so it beneficial for company to issue loan for
long repayment period. In the survey it was found that 19% customer availed loan for maturity
period less than 2 years, 43% of customer availed loan for 2 to 5 years, 28% availed for 5 to 10
years and only 10 % availed for the repayment period more than 10years. The most preferred
repayment period is 2 to 5 years. The company will earn more sustainable profit for long period
if it increases the customer who avail loan for long maturity period, therefore the company need
to formulate some attractive scheme to attract the customer towards long repayment period loan.
8. Are you satisfied with the rate of interest charge by Bajaj Finserv Limited?

Yes No
67% 33%

Bajaj Finserv Limited charging different rate of interest for different type of loan. The rate of
interest of unsecured loan is quite high because of risky nature whereas secured loan is available
at less rate of interest. Therefore there are some customers who are not satisfied with the rate of
interest. The sample size consists of 67% customers who are satisfied with the rate of interest
charging by Bajaj Finserv and only 33% are unsatisfied.
9. What are the main factors which persuade you to avail loan from Bajaj Finserv Limited?

Factors No. of
Respondents
Easy Repayment 19%
Easy Documentation 26%
Attractive Rate of Interest 29%
Quick Processing 17%
Others 9%

This question is considered to know that which service of Bajaj Finserv Limited attract more and
more customer. The result shows that an attractive rate of interest is the most important factor
responsible for attracting customer toward Bajaj Finserv then easy documentation, easy
repayment and quick processing is also work as supplement to attract customer for availing loan
from Bajaj Finserv Limited. Only 9% customers are fall in the category of others who availed
loan due to the references of some person, such as friends and relatives.
10.What grade you will assign to the services of Bajaj Finserv Limited?
Grades excellent Very GoodFair Poor
good
percentage 12% 47% 31% 6% 4%

Bar Graph showing percentage of Grades of services offered by Bajaj Finsery Limited

This result shows the perception of different customer toward services of Bajaj Finserv Limited.
The 12 % customer thinks that the service delivery of Bajaj Finserv Limited is excellent whereas
47% thinks its service delivery is very good, 31% thinks that services delivery is only good and
6% thinks that the service delivery of Bajaj Finserv Limited is fair, but as nobody can satisfy
everyone at same time, so this is same for Bajaj Finserv Limited, 4%customer are not satisfied
with the services of Bajaj Finserv Limited.
 FINDINGS OF THE STUDY

From the above study it is clear that 62% of the respondents have taken loan under parivaar
scheme and only 38% taken loan under Vaypaar scheme. Therefore it shows that Bajaj Finserv
is favorable in short term loan segment which is provided by Bajaj Finserv Limited under
Parivar scheme and especially for salaried individual. From the above study it is clear that
majority of the respondents got aware of different loan scheme provided by Bajaj Finserv
Limited through News paper. Therefore company is require to advertise its schemes more
frequently in News paper which will help company in getting more new Customers.
 The above study depicts that most of the respondents availed loan of amount ranging from
Rs.2-5- Lakh. Therefore, if Bajaj Finserv Limited introduce more scheme under this range to
meet the different demand of customers.
 The above study depicts that mostly the respondents preferred the loan having repayment
period from 2-5. Therefore the company needs to add some more benefits to the long term
period loan so that the demand of long term loan will increase which increase the profit of
company, because as the repayment period is long than the source of income (Interest) is
sustain for long period.
 Most of the people are satisfied with the rate of interest charged and by Bajaj Finserv
Limited.
 Bajaj Finserv Limited mostly disbursed loan as secured loan, this will provide the safety and
it will avoid the increasing number of Non- performing asset and bad debts.
 Customers are the main source of new ideas, and thus their suggestions are vital for every
Company. From the above figure it is clear that majority of the respondents are satisfied with
the services of their present bank so they do not want any change in the rate of interest and
services, but no one can satisfy everyone at same time, Bajaj Finserv Limited having
respondents who are not satisfied with rate of interest and services of Bajaj Finserv Limited.
 SUGGESTIONS & RECOMMENDATIONS: -

The following suggestions have been formulated on the basis of above study. These set of
suggestions might help the Bajaj Finserv Limited to improve the quality of service regarding loan
provisions and simultaneously these suggestions help the Bajaj Finserv Limited to tackle the
competition prevailing in the market, thereby achieving success in the future.
 Firstly Bajaj Finserv Limited should create awareness among the common public about the
Various loan schemes of they are providing.
 IIn order to create awareness regarding the loan schemes an electronic medium of media can
put to use to advertise about the schemes and services provided by Bajaj Finserv Limited. This
would help to change the attitude of the people regarding the Bajaj Finserv Limited.
 The interest rates should be regularly revised in order to attract more and more customer. Some
new plans should be introduced regularly to cater the special needs of customer which provides
them more offerings and benefits.
 New strategies should be made by the company which enables them to face the competition
with other private leading Non Banking Financial companies.
 The Company needs to focus more on providing value added services to its customer. This will
create Brand loyalty among customer which indirectly attract more and more customer because
a satisfied customer will always bring two more new customers.
 The management of company should be more efficient which enables in quick processing
of the task regarding loans disbursement and loan collection; this will enable efficiency in
the working capital cycle of the company.
 There should be customer relationship management concept in the company which help the
company to understand the special need of customer. Accordingly company formulate
schemes should be maintained.
 The Bajaj Finserv Limited need to concentrate on new target market by expanding its
business through introducing new loan schemes and services. Currently the company is
proving loans under main two category i.e Parivaar and vyapaar so, it looks limited.
Therefore the company needs to introduce new schemes to enter in to new target market.
 REFERENCE

[1] Signoriello, Vincent J. (1991), Commercial Loan Practices and Operations, ISBN 978-1-
55520- 134-0
[2] H. Rubin, Tzameret; Ben-Aharon, Nir (2021-02- 26). "Additionality of government
guaranteed loans for SMEs in Israel". Journal of Economics and Finance. 45 (3): 504–528.
doi: 10.1007/s12197-021-09538-8. ISSN 1938-9744
[3] Guttentag, Jack (October 6, 2007). "The Math Behind Your Home Loan". The Washington
Post
[4] Horsley, Scott; Arnold, Chris (2 Jun 2016). "New Rules to Ban Payday Lending 'Debt
Traps'". National Public Radio. Retrieved 7 Mar 2018.
[5] www.ask.com
[6] www.mywebsearch.com