Project Activity

Activity on Process of Bus Loan

Submitted to:- Submitted by:-

Prof. Manmeet Singh Dharmendra Bankhede
Chandulal Prajapti
Shivraj Garmode
Anand Kulrni
PGDM 4th term
 Objective

A proposal is being received for financing to the any travel agency for 2 buses 52 seaters. What
are studies we will consider before financing to travel agency? What are analysis are to be done
by us that are mentioned in this report.
Introduction – It is very difficult to analyze customer’s financial condition at the time of
providing loan because those customer who want to cheat finance company they try to create
duplicate document and wrong information. So bus loans and financing can be the most difficult
part of purchasing a bus, especially if you are buying a used coach. Financing is where many
dealerships make huge profits at your expense, through add-ons, higher rates, special dealer fees.
Most large bus dealers offer great bus financing in-house and should always be compared and
considered. They often have a large number of programs specially targeting buses.

Bus loan amount – Mahindra finance can give 90 % of bus’s showroom price it depend on
customer credit and condition of field verification.

Loan term length – Mahindra finance provides loan on a bus for more than 5 years and less
then 12 years since they often see the bigger coaches as investments in a serious company or
business.

Down payment - Many bus loans require a 15% to 25% down payment depend on field
verification report but it also include File charge which may .5 % of loan amount to 1.5 %.

Procedure of finance 54 Seater as per Mahindra Finance

1. To tell finance scheme to customer:

Bank maintain IRR 14 % to 16 % & Loan Tenor Value maximum 90
%
Pf =1 % is charge then field verification files.

2. After understanding scheme finance executive will collect

information which is mandatory to finance 32 seater bus regarding
customer are as follow:

Name : Date of Birth :

F/Name :

Phone no. : Mobile

:

Address :
 Permanent Add. :

Occupation :

Salary :

Income tax return :

Office Address :

Previous loan detail: (If any)

Reference (who know applicant and could tell about applicant, Two
reference is required)

3. After getting information, to inform customer about required

documents from customer which are as follow:
 Applicant (these documents are required in every
condition)
• 2 photo
• Address proof - Electric bill, rashan card , telephone bill
• I.D- pan card, voter id,
• Cheque (as per no. of installment)
OR

ECS (Electronic clearance system) – In this case customer

sign a

ECS form in place of more no. of post dated cheque, in this

condition only 4 pdc required with ECS form.

• Bank statement -1 year.

• Income Proff- Salary slip or Income tax return
If customer is self employed then he has to give 3 year
income tax return.

Note : If customer does not have PDC or Bank account, proper income
proof or

He has low income then co-applicant is taken.

  Co-applicant
• 2 photo
• Address proof
• Bank Statement
• Income proof
• PDC (if applicant do not have)
Note : Guarantor is compulsory in case of new customer & in case of
old

Customer, financer decide as per track record of customer. Track

record

Means previous vehicle that is finance from same financer and

that should

Be one year old.

 Guarantor
• Guarantee is compulsory
• 2 photo
• Address proof
• I.D.
• Income proof.

4. Wait for verification report if there is bad market reputation then

with assurance of guarantor customer will get finance that will
decided by financer, in this case applicant will not pay then he will
have to pay installment then financer can give loan and as per
verification report he will get such % of loan.
5. Customer will get finance according to that report.