NATIONAL INSTITUE OF TECHNOLOGY KURUKSHETRA

SUMMER TRAINING PROJECT REPORT

TOYOTA

AUTO FINANCING

TRAINING SUPERVISOR MR.BHARAT THAKUR FINANCE MANAGER

SUBMITTED BY SONIA

ACKNOWLEDGEMENT I have taken efforts in this project. However, it would not have been possible without the kind support and help of many individuals and organizations. I would like to extend my sincere thanks to all of them. I am highly indebted to my mentor Mr Bharat Thakur ( manager at TOYOTA) for their guidance and constant supervision as well as for providing necessary information regarding the project & also for their support in completing the project. I would like to express my gratitude towards the officials at different branches of TOYOTA for their kind co-operation and encouragement which help me in completion of this project. I would also like to express my gratitude towards my parents and friends for their kind co-operation and encouragement which help me in completion of this project.

I would like to express my special gratitude and thanks to industry persons for giving me such attention and time. My thanks and appreciations also go to my colleague in developing the project and people who have willingly helped me out with their abilities.

INTRODUCTION

1.1 BRIEF PROFILE OF STUDENT

Sonia Tyagi Ganaur, sonepat (Haryana) Contact: 8689076695 Email: soniatyagi729@gmail.com Education: Secondary Education from model school, ganaur in 2007 Senior secondary Education from model school, ganaur in 2009 Graduation from kurukshetra university, in 2012 in management Currently pursuing MBA From Kurukshetra university Extra-curricular activities: Experienced the participation in school level and district level events like quiz, debate, exhibition etc. Actively participated in sports in school and college level. Active participation in social and cultural activities. Hobbies: My hobbies are reading books, playing outdoor games, listen to music, participating in social activities.

1.2 BRIEF PROFILE OF MENTOR

Mr Bharat thakur is my mentor at Toyota for my project study Designation: Finance manager at gurgaon branch Experience: He has an experience of 4 years of working with toyota and excelling in his job. He joined toyota in 2008 as assistant officer, since then he has been working in toyota with dedication in his job. Education: He has completed graduation from Delhi University with B. Com (Hons.) CA II 13 part-2 He is very supportive, kind hearted and nurturing in nature, encourages to do work that are reasonable under the circumstances and that will result positively in professional and personal development.

OVERVIEW - INDIAN AUTOMOBILE INDUSTRY Over a period of more than two decades the Indian Automobile industry has been driving its own growth through phases. The entry of Suzuki Corporation in Indian passenger car manufacturing is often pointed as the first sign of India turning to a market economy. Since then the automobile sector witnessed rapid growth year after year. By late-90's the industry reached self reliance in engine and component manufacturing from the status of large scale importer.

With comparatively higher rate of economic growth rate index against that of great global powers, India has become a hub of domestic and exports business. The automobile sector has been contributing its share to the shining economic performance of India in the recent years. With the Indian middle class earning higher per capita income, more people are ready to own private vehicles including cars and two-wheelers. Product movements and manned services have boosted in the sales of medium and sized commercial vehicles for passenger and goods transport. Side by side with fresh vehicle sales growth, the automotive components sector has witnessed big growth. The domestic auto components consumption has crossed rupees 9000 crores and an export of one half size of this figure Overview Of Automobile Industry The Indian automobile industry is going through a technological change where each firm is engaged in changing its processes and technologies to sustain the competitive advantage and provide customers with the optimized products and services. Starting from the two wheelers, trucks, and tractors to the multi utility vehicles, commercial vehicles and the luxury vehicles, the Indian automobile industry has achieved tremendous amount of success in the recent years.

As per Society of Indian Automobile Manufacturers (SIAM) the market share of each segment of the industry is as follows:.

The market shares of the segments of the automobile industry

The automobile industry had a growth of 15.4 % during April-January 2012, with the average annual growth of 10-15% over the last decade or so. With the incremental investment of $35-40 billion, the growth is expected to double in the next 10 years.

Consistent growth and dedication have made the Indian automobile industry the second- largest tractor and two-wheeler manufacturer in the world. It is also the fifthlargest commercial vehicle manufacturer in the world. The Indian automobile market is among the largest in Asia.

The key players like Hindustan Motors, Maruti Udyog, Fiat India Private Ltd, Tata Motors, Bajaj Motors, Hero Motors, Ashok Leyland, Mahindra & Mahindra have been dominating the vehicle industry. A few of the foreign players like Toyota Kirloskar Motor Ltd., Skoda India Private Ltd., Honda Siel Cars India Ltd. have also entered the market and have catered to the customers needs to a large extent.

Not only the Indian companies but also the international car manufacturing companies are focusing on compact cars to be delivered in the Indian market at a much smaller.

price. Moreover, the automobile companies are coming up with financial schemes such as easy EMI repayment systems to boost sales

The domestic players as well as the foreign players dominate the Indian automobile sector. The key players contributing to the growth of the sector are discussed below.

Top Ten Players in Indian Automobile Sector

Maruti Suzuki India Hero Motors Limited Tata Group Bajaj Auto Limited Mahindra Group Ashok Leyland Yamaha Motor India Hyundai Motors India Limited Toyota Kirloskar Motor Private Limited Honda Siel Cars India Limited

The production of passenger vehicles in India was recorded at 3.23 million in 2012-13 and is expected to grow at a compound annual growth rate (CAGR) of 13 per cent during 2012-2021, as per data published by Automotive Component Manufacturers Association of India (ACMA)

Automobile Domestic Sales Trends Category Passenger Vehicles Commercial Vehicles Three Wheelers Two Wheelers Grand Total 2006-07 2007-08 2008-09 2009-10

(Number of Vehicles) 2010-11 2011-12

1,379,979 1,549,882 1,552,703 1,951,333 2,501,542 2,618,072

467,765 490,494 384,194

532,721

684,905

809,532

403,910 364,781 349,727

440,392

526,024

513,251

7,872,334 7,249,278 7,437,619 9,370,951 11,768,910 13,435,769 10,123,988 9,654,435 9,724,243 12,295,397 15,481,381 17,376,624

INTRODUCTION Cars play an important role in todays fast and luxurious world. They prove to be helpful, convenient and efficient means of transportation and along with all these they are also prove to be prestigious. Cars are very common and contingent means for transportation. The leading companies dealing in Cars are General Motors, secondly Ford and Third Toyota Motor Corporation and so on. So I had undergone marketing research on Toyota Qualis Car and hereby wish to introduce the company as far as I had understood it and presented in this report. Toyota Motor Corporation is one of the worlds leading automakers offering a full range of models from a mini-vehicle to large trucks. It deals in many fields. Diversified operations include telecommunication, prefabricated housing and leisure boats. The Company has 12 plants and 11 manufacturing subsidiaries and affiliates in Japan. Toyota has 51 manufacturing companies in 26 countries/locations, which produce Lexus, and Toyota brands vehicle and component.

PROJECT AT GLANCE
Name of the company: Offices: Toyota Motor Corporation Head Office: 1-Toyota-cho Toyota City Aichi Prefecture 471-8571 Japan Phone: (0565) 28-2121 Corporate Office: Toyota Kirloskar Motor Pvt. Ltd Plot # 1, Bidali Industrial Area, Ramnagar Taluka, Bangalore- 562109 Phone ( 080) 27287001

Rank of the company: Establishment: Establishment in India: Worldwide operations:

3rd Rank August 28, 1937 October 6, 1997 26 countries

Chairman: President: Chairman in India: Vice chairman in India: Managing Director:

Hiroshi Okuda Fujio Cho Mr. Akiro Okabie Mr. Vikram S. Kirloskar Mr. A. Toyoshima

 Deputy Managing: Director: Paid in Capital: Share Holders:

Mr. K.K. Swami Mr. Masatoshi Seki Rs. 7 Billion Toyota Motor Cor. (90 %) Kirloskar Group (01 %)

No. of Employees: Indian Models: Accounting year: Slogan: Goal: Theme: Principle:

2,64,000 17 Models(till date) April- March Touch the Perfection Good Corporate Citizen Innovation in future Openness and Fairness in Our corporate activities Cleaner and Safer car making and work to make earth a better place to live.

HISTORY OF TOYOTA MOTOR

The Toyota Motor Co. LTD was first established in 1937 as spin-off from Toyoda Automatic loom works. One of the worlds leading manufactures of weaving machinery. The Toyoda Automatic loom works was headed by Japans King of Investors Sakichi Toyoda. The patent rights to one of the machinenhad been sold to Platt Brothers (u.k) and provided the Seed-Money for development and test building Of Toyotas first automobiles. Production systems were improved in late 1950s culminating in establishment of Toyota Production System. It became known as TPS in1970 but was established much earlier by Talichi ohno based on principle of Ji doka, just in time and Kaizen the system is a major factor in reduction of inventories and defects in plants of Toyota ans suppliers, and it underpins all their operation s across the world.

Toyota launched its first small car (SA Model) in 1947 Production of small vehicles outside Japan Began in 1959 at a small plant in Brazil and continued with a growing network of overseas plant. Toyota believe in localizing its operations to provide customers with the products they need where they need them, this philosophy builds mutually beneficial long term relationship with local suppliers and help company fulfill its commitments to local labor.

Over and above manufacturing Toyota also has global Network of design and research and development facilities, embracing 3 major car markets of Japan, North America and Europe.

Toyota manufactures 5.5 million vehicles per year equivalent to one every six seconds. In time it has taken us to read this paragraph, a Toyota Motor Corporation has produced at least another 3-4 cars.

World wide operations

As we know Toyota is one of the biggest vehicle manufacturers and one of the most widely known companies in world today. It has its operations spread all over the world. Its operations are spread in 26 countries. They are as follows:

Argentina Austria Bangladesh Brazil Canada

China Columbia Czech France India

Indonesia Kenya Malaysia Mexico Pakistan

Philippines Poland Portugal South Africa Taiwan

Thailand Turkey U.K. U.S.A

The following are their products in which they deal worldwide. Cars:Avalon, Camry, Corolla, Matrix, Mr2, Spyder, Prius, Solaro, Innova. Vans:4Runner, Highlander, Land Cruisser, Rav4, Sequolia, Sienna Trucks:Tacoma, Tundra

TOYOTA IN INDIA
About Kirloskar Motor Toyota came to India in 6th October 1997 with having equity shares of 1 % & producing Qualis and Corolla along with employing 2330 employees. They introduced Toyota Kirloskar Auto parts pvt.ltd in April 2002 with equity of 64% for TMC and 26% for Toyota industries Producing Axes, Propeller, Shafts and a transmission and employing 430 employees. Let us have a look towards its operations in India. WORKING TOWARDS PERCEPTION As a joint venture between Kirloskar Group and Toyota Motor Corporation, Toyota Kirloskar Motor Pvt. Ltd. (TKM) aims to play a major role in the development of the automotive industry and the creation of employment opportunities, not only through its dealer network, but also through ancillary industries.

TKMs growth since inception can be attributed to one simple, yet important aspect of its business philosophy PUTTING CUSTOMER FIRST While managing growth, TKM has maintained its commitment to provide quality products at a reasonable price and has made every effort to meet changes in customer needs.

Local Community Development At TKM, every effort is made to contribute to society. A residential school at Bidali, reconstructed by Toyota, Now houses 75 students, mainly belonging to backward communities. In the aftermath of the tragic earthquake in Gujarat, TKM and its dealers played a major role in distributing food, clothing and relief in remote affected area. TKM also takes a lead role in contributing to the community, distributing books and bags in local school.

VISION & MISSION

Each and every individual should have a goal, a mission. And along with it one should also have vision to achieve it. So let us have a look at a vision and mission of Toyota Kirloskar Group.

Contribute to Indian Industry and Economy through technology transfer human resource development and vehicles that meet global standards at competitive price. Contribute to well being and stability of team members Contribute to overall growth for our business associates and automobile industry

Their mission is to design, manufacture and market automobiles in India and overseas while maintaining the high quality that meets global Toyota quality standards to offer superior value and excellent after sales service. They are dedicated to providing the highest possible level of value to customers, team members, communities and investors in India.

AWARD AND ACHIEVEMENTS

The following are awards received by Toyota

Two top Engine of the year award 2000 for Toyota. Both Yaris & Prius receive Hi-tech engine awards for second year running. Toyota prids Hybrid Synergy Drive System Dominates 2004 international Engine award of year. Toyota receives environment award during the earth day. Toyota sales U.S.A Inc. honored at 2003 governors environmental and economical eldership awards. Prius honored by National wildlife federation Toyota awarded the environmental Stewardship award. Prius recognized by Sierra Club and Earns CLEAN CAR SALUTE. Toyota named environmental leader by EPA.

About grace toyota

MISSION
Customer comes first and everything we do is to meet our customer needs. To set up processes and build people who are able to work in synergy to achieve the highest level of customer satisfaction before and after sale and create a customer for lifetime.

DEALER PRINCIPAL

Managing Director

Mr. Pradeep Chhabra

CONTACT PERSON
C.E.O GM Service VP Sales

Mr.S.K.Bali

Mr. Vikram Singh Suri

Mr. Vinish Mittal

GRACE TOYOTA
39 Milestone,sec. 35,delhi-jaipur highway,gurgaon-122004 Phone no.- 0124-4687800,fax:-0124-4687899 Email: info@gracetoyota.in model suffix Exshowroo m price Innova G diesel(8 s) GX diesel 8S VX diesel 8S 1093988 1241065 1446935 93069 104835 121305 Road tax No. plate charges 1050 1050 1050 6250 6250 6250 43954 49203 56549 1238311 1402403 1632089 Logistic charges Toyota protect On road price

Fortuner

FC (4*2 MT) FY TRD FX TRD

2201131 2262956 2362917

203652 209216 218213

2100 2100 2100

6250 6250 6250

83349 85555 89122

2496482 2566077 2678602

ETIOS LIVA

G(MD)

489857

23321

1050

5750

19146

540867

V(MB)

560364

27885

1050

5750

21617

616665

ETIOS LIVA DIESEL

GD(ML)

599900

35465

1050

5750

22987

658699

M2

572128

34076

1050

5750

23002

665167

ETIOS DIESEL

JD(M1)

670330

64124

1050

5750

25470

766724

E8 VD(MN)

731036 776339

69436 73400

1050 1050

5750 5750

27598 29185

834869 885724

COROLLA ALTIS

1.8 J(S)HA

1174287

99493

1050

6250

46483

1327563

1.8(GL)HC 1.8 VL-(A/T) HD

1477978 1589844

123788 132738

1050 1050

6250 6250

57319 61311

1666386 1791193

MODEL COROLLA ALTIS D4D(J)HM 1236446 104466 1050 6250 44095 1392306

DIESEL D4D(G)HN D4D(GL)HO 1569237 131089 1050 6250 55430 1763056 1438698 120646 1050 6250 50984 1617627

CAMRY

2.5L.AT

2451876

226219

1050

6250

92072

2777467

PRIUS

Z5 Z6

2925985 3142801

268889 288402

2100 2100

6250 6250

108990 116727

3312215 3556280

LAND CRUISER

VXL

1048611

691521

2100

6250

276783

8598560

LAND CRUISER200

VXL

11589567

1048611

2100

6250

418365

13064893

CAR LOAN SCHEME

A person wants certain luxuries for enjoying his life and a car is one of them, a car gives him convenience to travel one place to another. Now a days it become a status symbol in society. So it becomes a need of every human being but some people does not have the capacity to pay a huge amount at a time but they can pay the price in installment so for these people many co. offer car loans schemes. In which they can buy car and pay its price in installment. Almost everyone make easier to purchase a car.

 Now days car is become one of the basic need of man but buying a own car become a dream for man because of its prices. So in fulfillment of this dream man, needs help. In this condition Toyota financial services take a Initiative to provide easy car loan to those people who are willing to buy a own car. People are appreciating car loan scheme of TFS and this can be proof by figures which show that the total amount of car loan scheme is increase in 2007-2010 amazingly.

Auto Fin Loan

2009 AMOUNT GROWTH 425 20% 2010 586 37.88% 2011 877 22.6% 2012 1218 38.88%

The car loan amount increases from 877cr. in 2011 to 1218 cr. in 2012 which accounts a growth of 38.88%. So Bank of India helps people to get car & increase in social status. It Provide loan for all types of Cars i.e. A, B, C segment.

TYPE OF CAR FINANCED

TFS provide all type of car loans which comes under the purview of COMPANY guidelines, term & conditions and the credit limit which is 24 times of the monthly net salary or Rs 25lakh, whichever is lower, in case of individuals. For corporate Rs 100lakh after presenting required documents. Corporate include self employed, Partnership firm, Private Ltd, Public Ltd etc. For Non-Resident-Indian Rs 25lakh.

 For Imported Vehicle Rs75lakh.

THE TOTAL GROWTH IN AUTO LOAN SEGMENT FOR LAST THREE YEARS:-

YEAR Car Loan Growth%

2010 37.88%

2011 22.6%

2012 38.8%

GROWTH %

38.80%

37.88%

22.60%

COMPARITIVE ANALYSIS AMONG DIFFERENT BANKS FOR CAR LOANS

Private banks

Rate of Interest

Max Loan Amount

Loan Tenure

Processing Fees

Prepayment CHARGES

ICICI Bank HDFC Bank ABN AMRO Bank PSBs SBI DENA Bank UCO Bank Indian Bank O.B.C TFS

13% 11.30% 15%

90% 90% Rs20lakh

1-5yrs 1-7yrs N.A

Rs2500-5000 1.5% Rs2150Rs3650 Rs1000 N.A 5%

8%11.25% 10.75%11.00% 11.50% 11.00%11.25% 10.2510.75% 9-12%

Rs15lakh Rs 8lakh 85% Or Rs7.50Lakh Rs 15Lakh Rs10Lakh RS 25

1-7yrs 1-5yrs 1-5yrs 1-5yrs 1-7yrs 1-6 YRS

0.50% Rs1000

2% NIL

1%or Rs1000 0.5% 0.30% 0.50 1.10% NIL NIL NIL

Car Finance EMI Calculator

Own a vehicle with the friendliest and most convenient car loan. Either you can purchase a new Car/ Van/ Jeep or raise loan to purchase old vehicles that are not older than 3 years. Finance will also be provided for purchase of vehicle of indigenous/ foreign makes. Eligibility Individual as well as Business Concerns (Corporate or non-corporate)

Amount of Loan
For Individual: 24 times of the monthly net salary or Rs25lakh, whichever is lower income of spouse can be taken into account for determining loan amount. In such cases, the spouse shall stand as a guarantor.

For Business Concerns: Loan amount to Rs100Lakh. Processing is nominal. For N.R.I: Loan amount to Rs25lakh. For Imported Vehicles: Loan amount to Rs75lakh. Margin
Up to Rs 2.00lakh 5% Rs2lakh to Rs10lakh 10% Above Rs10lakh to Rs25lakh 15% Above Rs25lakh 25%

Rate of Interest Rate of Interest (For loans granted on & after 1.04.2013) BPLR at 12.00% TENURE For Loans Repayable in/upto Less than 3years
BPLR minus 1.00% i.e.11.00%

Rate of Interest @ percent p.a.

Above 3 years

BPLR minus 1.50% i.e.11.50%

Repayment For new Car: The loan amount together with interest is to be repaid in
72 Equated Monthly Installments (EMIs)

For old Car: The loan amount together with interest is to be repaid maximum in 36 Equated Monthly Installments (EMIs) For Imported Vehicles: The loan amount together with interest is
to be repaid maximum in 84 Equated Monthly Installments (EMIs)

Disbursement
The intending borrower will be required to settle the transaction for purchase of vehicle needed by him/her with the seller and will be required to deposit the difference of the cost of the vehicle to amount of loan will be required to deposit the difference of the cost of the vehicle to amount of loan, and thereafter, the advance will be allowed to him/her from the COMPANY by paying the entire price of the vehicle to the seller directly on behalf of the borrower. Profit Interest earned on the loan is its profit. Auto Loans The TFS offers auto loans at floating rates also for financing automobile and used car purchases.

Commercial Vehicles and Construction Equipment Finance

TFS provides secured financing for commercial vehicles and providing working capital, bank guarantees and trade advances to customers who are

transportation operators. In addition to the funding of domestic assets, it also finances imported assets for which the bank opens foreign letters of credit and offers treasury services.

AUTO LOANS: PRODUCT OVERVIEW

Auto loans are the installments loan for the purchase of new and used vehicle to be used for personal business or commercial purpose. The auto loan programmer is a retail asset product and can be availed by the individuals, sole proprietors, partnership firms, NRI, private and public limited companies, who satisfies the credit worthiness of the applicant, approve and disburse the loan and also mark a lien on the vehicle as a security The lien on the vehicle has to be a first lien. Listed below are some of the key product features:

Product------------- New and Used Car Standard product ------------------ EMI in advance, EMI in arrears Minimum loan -------------------- Rs100000 Tenure ----------------------------- 12-72 months Eligible borrower --------------------- Salaried individuals, Self employed, Sole
Proprietorship, Partnership firms, NRI, Private and Public Companies.

Equated monthly installment (EMI) ------------- The amount paid by the

customers each month towards repayment of loan extended to him. EMI comprises of both principal and interest components.

Loan to value LTV/ Extent of funding------------ The ratio of the maximum

amount of loan to the value / cost of the car varies with the vehicle make, model and tenure.

System and Process ------------- Decentralize approval and disbursal with all
loan being booked fineness/ as per process set out time to time.

Credit approval process ------------------- Credit policy will lay down the
borrower eligibility criteria/approval process / deviation policy as approved by the central risk unit. Approval authorities may be delegated to TFS employees/ associates including outsourcing agencies. Operations and collection policy will be circulated separately.

Collection ------------------- In-house and agency based collection through Tele

calling and field collection for soft buckets. Appointment of external agency for chronic and serious defaulters and repossessions

Interest rates ----------------- As per approved rates from time to time Type of car ----------------------------- As per list of cars Use of vehicle --------------------------- Vehicle firmament should be personal,
official, commercial use.

Approved location -------------------------- Generally TFS prefers to give loan to

those customers who are residing near to the CO. . As it feel easy to contact the customers and for communication also. However in some exceptional cases the CO. can loans to those customers who are not residing near COMPANY .

CAR LOANS
FEATURES

Finance all passenger cars & most of the multi utility cars. The tenure range is 12 72 months. Competitive rates. 24 48 hours to process the loan after we receive complete set documents. Loan up to 90% of the invoice value.

 Prepay the loan anytime without any prepayment charge. Easy documentation. Processing charges waived for senior citizens, staff members

DOCUMENTS REQUIRED:-

Documentation Requirements Application Form Income Documents (last 3 years)

Salaried Individual

Self employed Individual

Partnerships Firms

Private Ltd Company

Public Ltd Company

Yes Last 3 Years ITR or Form no.16 Yes Yes Yes Yes

Yes Last 3 Years ITR & Audited accounts Yes Yes Yes Yes

Yes Last 3 Years ITR & Audited Accounts Yes Yes Yes Yes A Letter Signed by all the Partners

Yes Last 3 Years Audited B/S & P&L A/C Yes Yes Yes Yes MOA or AOA

Yes Last 3 Years Audited B/S & P&L A/C Yes Yes Yes Yes MOA & AOA

Bank Statement (Last 12 months) Proof of Identity Proof of Residence Proof of Office Address Legal Documents

accepting the Loan

OTHERS DOCUMENTS:-

1. 2. 3. 4.

CHA -2. OD -194 (Guarantee Deed) L-515 as per Br. Cir. No. 94/186. L-515 as per Br. Cir. No. 97/114 (Where CBD -13 obtained) 5. Comprehensive Insurance Policy. 6. Letter addressed to Insurance Company. 7. Transfer form in blank in duplicate. 8. Valuation certificate for Second hand vehicle from approved valuer. 9. Undertaking to inform change in constitution/address etc. 10. A letter of authority by the borrower to debit the loan/SB A/C with Intt./ Service charges/Insurance Premium. 11. Where guarantors vehicle is taken as collateral security, obtain another CHA 2 with modification.

ELIGIBILITY CRITERIA:For Salaried Individual, Self-employed Individuals, Partnership Firms, Public and Private Limited Companies

Borrower Type Salaried Individual

Age

Residence/Office

Income

Telephone

CPV Requirement CPV should Be done at Residence and office of applicant and coapplicant. CPV should be done at residence and office of applicant and coapplicant. CPV should be done at office and main partners residence. CPV should be done at office and

21 at Residence should be beginning owned by the applicant or rented for >1 years. To 60 at the end of the tenure.

Minimum Income of Rs1.5lakh.

Applicant should own Landline Phone at residence and at office. Applicant should own Landline Phone at residence and at office. Landline phone at office.

Self Employed Proprietor- ship

21 at beginning to 65 at the end of the tenure

Residence/office/Factory / workshop should be owned by the applicant or rented for at least 2years

Minimum Income of Rs0.60lac.

Partner-ship

NA

Office/Factory/Workshop Should be owned by the firm or main partner or rented for at least 2years

Minimum Income of Rs0.60lakh.

Pvt. Ltd Co./ Public Ltd Co.

NA

Office/Factory/Workshop Should be owned by the

Minimum Income of Rs0.60lac.

Landline phone at office.

Co. or director or rented For at least 2 years

main directors residence.

FEES and CHARGES:-

Description of Charges Cheque bouncing charges Stamp Duty Late Payment Penalty Processing Fees Other Charges

New Car Loans Rs 100 At actual More than 2% per month 1.10% or Rs1000 -

USED CAR LOANS

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

Features: Choose any car manufactured in India within a certain range. Borrow up to 70% of the value of the car. Flexible repayment options, ranging from 12 to 36 months. Borrow up to 2times your annual salary(for salaried professionals) And 2times your annual income (for self employed professionals) Available for almost all car models at attractive interest rates. Repay with easy EMIs. If you have had a Preferred Account or a Corporate Salary Account With ANY BANK for than six months, you can get fast approvals on your loans with minimal documentation.

DOCUMENTS REQUIRED:Documentation Requirements Salaried Individual Self employed Individual Partnerships Firms Private Ltd Company Public Ltd Company

Application Form Income Documents (last 3 years)

Yes Last 3 Years ITR or Form no.16

Yes Last 3 Years ITR & Audited accounts

Yes Last 3 Years ITR & Audited Accounts

Yes Last 3 Years Audited B/S & P&L A/C Yes Yes Yes Yes MOA & AOA

Yes Last 3 Years Audited B/S & P&L A/C Yes Yes Yes Yes MOA & AOA

Bank Statement (Last 12 months) Proof of Identity Proof of Residence Proof of Office Address Legal Documents

Yes Yes Yes Yes

Yes Yes Yes Yes

Yes Yes Yes Yes A Letter Signed by all the Partners accepting the Loan

ELIGIBILITY CRITERIA:For Salaried Individuals, Self-employed Individuals, Partnership Firms, Public and Private Limited companies. Criteria Salaried Self employed Age 21-60 years 21-65 at the at the end of end of the the tenure tenure Minimum 1 year. Minimum 1 year. Partnership Company firm NA NA

No. of years in current residence

NA

NA

At least Min. of years At least 3years of 3years in in/ total Business. Employment/ employment Business Min. income for cars Gross income of Rs1.5lakh. Last year & latest year must be profitable. Must be at residence & at office.

At least 3years in Existence.

At least 3 years in Existence.

Last year & latest year must be profitable. One phone at least in Business & one at residence of loan Executing partner.

Last year & latest year must be profitable. At least 1 phone must be at business.

Telephone

Must be at residence & at office.

PRICING: Highly competitive. 1.10% processing fee payable up front (Pl contact local sales manager for revised applicable rates). Customers can pre-pay the entire loan amount before the agreed tenure.

Fees and Charges:-

Description of Charges Cheque bouncing charges Stamp Duty Late Payment Penalty Processing Fees Other Charges Valuation charges

New Car Loans Rs 100 At actual More than 2% per month 1.10% Used Cars Rs2000 per case

Staff Vehicle Loan

TFS also provide car loan to their employees this loan is only meant for the staff members of bank at attractive rate of interest with longer repayment payment period. This loan is different from MAIN auto fin loan.

Details of Staff Vehicle Loan: Maximum amount = Rs360000 Minimum Amount = Rs80000 Margin = 10% Maximum repayment period = 15years Rate of Interest: Up to Rs80000 at 8%pa. Above Rs80000 to Rs360000 at 12%pa.

CAR LOANS-THE PROCESS

The process can be broadly shown as follows-

Customer

DSA/DEALER/OTHER CHANNEL

Sell Scheme, with applicable LTV for relevant model

NO Check Eligibility STOP

Check Authority

Cluster Head
Case to be entered in LTS (Loan Tracking System) Product Four Wheeler

Yes Within Approval Authority Deviation Approval

Asset Staff to follow up for

Update LTS

Conduct Telephonic Verification Collect Preapproval documents Fill out Approval Card Soft Approval by BM/Cluster Head Communicate Soft Approval to Customer(Optional)

Customer to submit agreement & S.I letter

Fax Application Form to CPA for Dedupe check

Shoot CPV at CPV Agency

CPA/Credit staff to Conduct Dedupe + Coordinate for CPV Report

Communicate REJECT to Branch

 CPA/Credit Staff to communicate status to Branch. BM to sign Approval Card & send complete file to Assets office. CAR Sales Staff to arrange delivery/ disbursement & inform branch when distributed.

Branch to enter in LTS under new Product CAR Direct Approvals

END

CALCULATION OF EMI Case1 Normal case (when there is no advance EMI) Loan amount 200000 Tenure (months) 24 Interest rate (Account 10% IRR) EMI 9,229 Advance EMI Month EMI Principal Interest Outstanding Cash flow 200000 -200000 1 9,229 7,562.33 1,666.66 192,437.66 9229 2 9,229 7,625.35 1,603.64 184,812.31 9229 3 9,229 7,688.89 1,540.10 177,123.41 9229 4 9,229 7,752.97 1,476.02 169,370.44 9229 5 9,229 7,817.58 1,411.42 161,552.86 9229 6 9,229 7,882.72 1,346.27 153,670.13 9229 7 9,229 7,948.41 1,280.58 145,721.72 9229 8 9,229 8,014.65 1,214.34 137,707.07 9229 9 9,229 8,081.44 1,147.55 129,625.63 9229 10 9,229 8,148.78 1,080.21 121,476.84 9229 11 9,229 8,216.69 1,012.30 113,260.15 9229 12 9,229 8,285.16 943.83 104,974.98 9229 13 9,229 8,354.20 874.79 96620.77 9229 14 9,229 8,423.82 805.17 88196.95 9229 15 9,229 8,494.02 734.97 79702.92 9229 16 9,229 8,564.80 664.19 71138.11 9229 17 9,229 8,636.18 592.81 62501.93 9229 18 9,229 8,708.15 520.84 53793.78 9229 19 9,229 8,780.71 448.28 45013.06 9229 20 9,229 8,853.89 375.10 36159.17 9229 21 9,229 8,927.67 301.32 27231.49 9229 22 9,229 9,002.07 226.92 18229.42 9229 23 9,229 9,077.08 151.91 9152.34 9229 24 9,229 9,152.73 76.26 -0.38 9229

Format of various document required ID PROOF & S.V

ADDRESS PROOF

FORM 16A

LATEST SALARY SLIP

Comparison of car loan scheme offered by other bank with TFS Almost every bank offers car loans. I had compared the entire car loan scheme offered by HDFC Bank, ICICI Bank, State Bank of India, Oriental Bank of Commerce and the details of the findings are as follows.

HDFC Bank:
HDFC Bank offered car loan scheme with following features:HDFC Bank Provide car loan individuals as well as business concerns also. The rate of interest charged by HDFC Banks is as follows:In case New Car :- 11.30% HDFC Bank Provide finance up to 90% of the total loan amount. HDFC Bank Provide facility to repay the loan amount maximum in 7years. HDFC charge processing fees of Rs2150 Rs3650.

ICICI:
ICICI Bank provide car loan to individual as well as Business concern also. The rate of interest charged by ICICI Bank is as follows: In Case of New Car-15%. ICICI Bank Provide finance up to Rs20Lakh. ICICI Bank charge 5% prepayment charge if the loan is paid before the tenure of the loan.

STATE BANK OF INDIA:

State Bank of India offers car loan scheme with following features. State Bank of India provide loan to individual as well as Business concern also. State bank of India provide loan which is repayable maximum up to 7years for new car & In case of old car it is 3years. State Bank of India charge a prepayment charge of 2% in case loan is paid before the tenure of the loan. State Bank of India Provide a loan amount of Rs15lakh. The rate of interest charged by State Bank of India is as follows: In case of new car 1st year - 8% For 2nd & 3rd year 10% For 4th & 5th year - 11.25% For 6th & 7th year 11.50% In case of old car Up to 3years 14.25% Above 3 years 15.00%

ORIENTAL BANK OF COMMERCE

Oriental Bank of commerce Provide car loan to individuals as well as business concerns also. Oriental Bank of commerce provide loan up to 84months. Oriental Bank of commerce charge interest rate as follows:In case of new car Up to 3years => 10.25%pa Above 3years => 10.75%pa In case of old car Up to 3years => 13.25% Above 3years => 13.75% Oriental Bank of Commerce finances up to Rs10lakh. Comparison of different banks car loan schemes it gives result that TFS provides best car loan scheme because it provide loan up to Rs25lakhs for individual & for corporate it can finance up to Rs100lakh at very low interest rate. Like up to 3years it charge only 8.75% & beyond 3years it charge interest of 9.25% per annum. Like when a people wants to financed his car worth Rs7Lakh & want to repay this amount in 3years then SBI (8%) & TFS (8.75%) charge lowest interest rates. But when a person wants to repay his loan in more than 3years then TFS is best because it charge only 9.25% interest rate on the other hand if a person wants to finance a car worth of more than Rs7lakhs then again only Bank of India offers him lowest rate of interest which is 9.50% pa Up to 3years & after 3years it charge only 10.00% interest rate per annum. Moreover it provide maximum amount of loan 25lakhs. So only TFS offers the best car loan scheme which suits almost every one & make easier to purchase a car.