2012

INTERNATIONAL
SCHOOL OF
BUSINESS AND
MEDIA
POST GRADUATE DIPLOMA IN
MANAGEMENT (PGDM)
SUMMER INTERNSHIP - REPORT

ANIRUDDH KESWANI
ROLL NO. 12309
INTERNATIONAL SCHOOL OF BUSINESS & MEDIA,
PUNE
POST GRADUATE DIPLOMA IN MANAGEMENT
(PGDM)

SUMMER INTERNSHIP
REPORT
FINANCE PENETRATION AT CPR DISTRIBUTORS.
FOR

Submitted by: Aniruddh Keswani

ROLL NO. 12309

DECLARATION
I hereby declare that the Project Report “FINANCE
PENETRATION AT CPR DISTRIBUTORS” for BAJAJ FINSERV
LENDING Submitted for the PGDM at International School of
Business and Media, Pune - Nande is my original work and the
dissertation has not formed the basis for the award of any
degree, associate ship, fellowship or any other similar titles.

Place: Pune

Date:

(Aniruddh Keswani)

CERTIFICATE
This is to certify that Mr. Aniruddh Keswani a student of BBA in
Prestige Institute Of Management and Research, Indore Under
Graduate Programme has received Summer Training in our organization
from 01/06/10 to 19/07/10 for a period of 07 weeks.

It is further certified that Summer Training period, the candidate

attended the factory/office regularly and punctually and he has
received training in following departments/sections of our organization:
1. Marketing and Sales.

During training period he/she was absent on following working days –

29/06/10 (1 Day).

During training period his behavior and conduct were good.

Place: Bhopa

Dated: 19/07/10 Mr.Sourabh Jain

Account Manager

Bhopal-M.P.

ACKNOWLEDGEMENT

“Acknowledgement is an art, one can write glib stanzas

without meaning a word, on the other hand one
can make a simple expression of gratitude.”

Summer Inrernship is an integral part of any Business Administration program

and for that purposes I had joined a company what else can be as good as Bajaj
Finserv Lending, India's premier finance company.

I take the opportunity to express my gratitude to all of them who in some or

other way helped me to accomplish this challenging project in Bajaj Finserv
Lending, No amount of written expression is sufficient to show my deepest sense
of gratitude to them.

I am very thankful to Mr. Devendra (Regional Sales Manager), Mr. Ajay

Sharma (Area Sales Manager), Mr. Pranab Roy (Manager) Bhopal and
very grateful to all my faculties at ISB&M Pune Nande for their everlasting
support and guidance on the ground of which I have acquired a new field of
knowledge. The course structure created for this curriculum has benefited with
the inclusion of recent development in the organizational and managerial
aspects.

Lastly, I am thankful to all the member of Bajaj Finserv Lending, Bhopal, which
has given me valuable information in the part of my project.

ANIRUDDH KESWANI

ROLL NO. 12309

TABLE OF CONTENTS

Title Pg. No.

♦ EXECUTIVE SUMMARY

♦ BAJAJ GROUP STRUCTURE

♦ KEY BUSINESS LINES

♦ WHAT DIFFERENTIATES BAJAJ FINANCE

♦ BUSINESS MODEL AND DISTRIBUTION RESEARCH

♦ TECHNOLOGY AND RISK MANAGEMENT

♦ MANAGEMENT STRUCTURE

♦ PRODUCT LINE STRATEGY

♦ FINANCIAL PERFORMANCE AND STATEMENT

♦ BAJAJ FINANCE HISTORY

♦ INTRODUCTION TO BAJAJ FINSERV LENDING

♦ CONSUMER DURABLE LOANS

♦ IT PRODUCT LOANS

♦ INSURANCE SERVICES

♦ PRODUCT CATEGORIES AND DEALINGS

♦ ACHIEVEMENTS AND MILESTONES

♦ TOTAL SALE TO FINANCE CASES AT CPR DISTRIBUTORS –

KOH E FIZA
♦ FINDINGS AND LIMITATIONS

♦ SWOT ANALYSIS

♦ SUGGESTIONS & RECOMMENDATIONS

♦ CONCLUSION

♦ BIBLIOGRAPHY
Executive Summary

• Promoted by the Bajaj Auto group in 1987

• Demonstrated consistent profitability track record in lending space for

the last 24 years.

• A UM of ` 75.71 billion, with a history of disbursing over 6.00 million loans,

as of FY11.
Disbursed 1.57 million loans in FY11

• A diversified lending business with 9 product lines focusing on consumer

finance & SME
business

• Strong distribution reach with more than 225 points of presence and more
than 4,000 distribution partner s and dealers across India

• Strategy is to focus on mass affluen t customers in consumer businesses

and affluent and HNI
customers in small businesses, through a judicious mix of:

– Lower risk and lower returns products, for building scale and stability

– Moderate risk and higher return products, for profit maximization

• Stable and deep management structure with top 100 management team
members having experience from leading Multi National Companies and
Transnational companies.
Bajaj Group structure

Bajaj Holdings and Investment Limited

31.49% 38.69%

Bajaj Auto Bajaj Finserv

Limited Limited

Auto Business Arm Financial Services Arm

74% 74% 100% 55.98 %

Bajaj Allianz Life Bajaj Allianz

Bajaj Financial Bajaj Finance
Insurance General Insurance
Solutions Limited Limited
Comp any Limited Comp any Limited

Wealth Management
Prote ction and Retirals
& Advisory
Lending
Key Business Lines
Product
Consumer durable financing
Consumer finance
Per son al Loans Cross sell
2 Whee ler & 3 Whee ler
Finance
Mortgage
Small business
Small Business Loan (“SBL”) &
secured vendor financin g
(“VF”)
Loan agains t securities
Construction Equipment
Commercial
Finance
Indicative Terms,
as of June 201 1
• Maturity : 8 – 12 months
• Repayment : EM I
• Maturity : 12-36 months
• Repayment : EM I
• Maturity : 12 – 24 months
• Repayment : EM I
• Maturity :60 – 180 months
• Repayment : EM I
• Maturity :12 - 36 months (SBL)
• Maturity : 1 - 24 months (VF)
• Repayment : EMI (SBL & VF)
• Maturity : 10 – 12 months
• Repayment : Bullet
• Maturity : 12-42 months
• Repayment : EM I
Key Features Target Customer Base
• 12% of the portfolio as of FY11
• One of the few organized players with • Mass Affluent and
cutt ing edge technology archi tecture & • Affluent
robust risk management framework.
• 6% of the portfolio as of FY11
• Mass Affluent and
• Loans to existing cus tomer with very
• Affluent
good credit performance track record.
• 26% of the portfolio as of FY11
• Captive financing. • Mass customers
• Financin g only Bajaj auto vehicles.
• 30% of the portfolio as of FY11 • Affluent and
• Includes loan against property • HNIs
• 10% of the portfolio as of FY11 (SBL)
• 4% of the portfolio as of FY11 (VF) • Affluent and
• SBL to affluent small businessmen. • HNIs
• VF to vendors of lar ge auto manufacturer
• 4% of the portfolio as of FY11
• Launched retail loans to HNI customers in • HNIs
FY11.
• 8% of the portfolio as of FY11
• Launched in FY11. • HNIs and
• Assets backed funding to Small, Mid & • Affluent
strategic contractors.
 • Maturity : NA
Infrastructure financing • Repayment : Moratorium
period followed by EM I
• Medium / large
• Launched in FY12.
infrastructure companies
What differentiates Bajaj Finance
Strong promoters
Diversified lendin g business model
Affluent & HNI customer foc used business
model
Strong Distribution Reach
High technology orient ation and robust
risk management
Stable & deep ma nageme nt structure.
• Promoted by erstwhile Bajaj Auto Ltd. Post the de-me rger of Bajaj Auto, the
shareholding in the Company was veste d with Bajaj Finserv
• Debt free balance shee ts of the promoter, Bajaj Finserv and of the primary holding
company, Bajaj Holdings & Investments Limited
• 56.07% holding with promoter and promoter group.
• 8 product line company focuse d on homogenous segments
• Profitable mix of consume r & SME business
• Balanced mix of secured and unse cured assets
• Focus on acquiring & servicing affl uen t & HNI clients (with the exception of captive
2Wheeler financing business)
• Integral to risk management strategy
• Large wallet size allows deep cross sell framework
• More tha n 225 points of presen ce across India
• More tha n 4,000 distribution partne rs and dealers
• 100% dea ler “Point of Sale” terminalisation and E2E ente rprise dat a wa rehous e for risk
management and dat a mining capabilities
• Distinct business, underwriting & risk management structure for robust risk
management.
• Top 100 management tea m membe rs from leadin g MNCs.
• SBU business structure allows scalability.
• Top management vintage of 3 years.
Diversified lending business model
Consumer fin ance Small business

2011 -12 2011 -12

2010 -11
2010 -11 Launch SBS
Launch EM I Expanded to cross sell to
2009 -10 card – 3 2009 -10 23 cities.
Launched cross
second TAT Portfolio
project collateralize
2008 -09 Launch co- seasoning for
3sec-TAT. 2008 -09 portfolios and
brand Launched “ no PSBL & Mort.
Launched deepen wallet
2007 –08 100% POS credit card. insurance no Launched CE &
Launched post sale size.
link up. loan”. HL.
POS ins. insurance Launched PSBL
3 Min-TAT Launched Launched
cross sell. cross sell. n
& Mortgages in

Historical Started PL cutt ing edge partnership

16 cities. underwriting
business cross sell to model
Unique sales & platform.
model. existing
collect model.
3 day TAT. good
No cross customers
sell.

Consumer
Durables &
2-whee lers
+ Personal
Loans
Cross-sell
+
Insurance
services +
EM I
card +
+
Credit Card –
Partnership

Acquisition Cross-sell Acquisition Cross sell Rel. model– S,C & C

Competitive Advantage specialization

• Data Mart and Cross sell capabilities
• Customer Lifecycle Management
• Low ticket - high vol ume transaction domain
Competitive Advantage • Premium customer exper ience model
• Relationship model– Sales & Collect • Cross sell to Small Business segment
Strong Distribution Reach
Geographic presence
Business Line FY08 FY09 FY10 FY11
Sales Finance 116 87 79 79
2W - Hubs 116 55 54 54
2W - Spokes 300 200 150 150
Small Businesses 0 15 15 23

Distribution
Business Line FY08 FY09 FY10 FY11
Sales Finance – 19,000+ 4,500+ 2,000+ 2,500+
Dealer
2W– Dealer/ASCs 1,400+ 1,400+ 1,275+ 1,400+
Small Businesses – - 175+ 225+ 250+
Partner
Small Businesses – - 175+ 225+ 275+
Support

# of New Loans Disbursed (‘000 s)

Business Line FY08 FY09 FY10 FY11
Map not Sales Finance 621 352 515 1,038
to scale 2W 397 219 378 522
Small Businesses 0 3.5 5 9
Total 1,018 574 897 15,60

Assets under management (` billion)

FY08 FY09 FY10 FY11
AUM 24.78 25.39 40.32 1
75.71

Dee p distribution, sizeable acqui sition engin e and growing balance shee tt
High technology orientation and robust risk
management – An illustration
14 2

3 minutes Turnaround Time (“TAT”)

Cross Sell offers to - Call
customers @ 4 - Fax
13 Month - Data SSP
Customer gets Username Data
& Password for online Entry
access a b c

1 Credit De-dupe Application

12 bureau Engine Score
Dealer
Data moves to Data-
mart and B2B /
B2C 7
RTGS to dealer
Account (<24

7
Hrs)

11
Disbursal
Fraud early
3 warning
10 score card
Central /
national
operation 4
Re-verification of
centre application details by
Customer
TVR call centre
15 minut es TAT

i
Fales at F s t Branch
Courier

1 day

Branch i Inw
ard
nwardd l I
e
9
 8 Dealer for address
Verification
Confirmation &
3 -4 days 5
Verification SMS /
Product
Email to Customer
Delivere
d at
Home 6
By Provide KYC
Documents
Processing Shop 5min
Stable & dee p management structure
• Rajee v brings with him more than 18 years of
exper ience in the consumer & Small Business
Segment lending industry.
• He has been with the Company for 4 years and
has worked towards stee ring the organization
onto a path of fas t-paced growth and defined
an ambitious trajectory of building a
diversified lending institution.
Rajee v Jain
• He has earlier worked with AIG, GE money and
Chief Executive
American Express.
Officer
• A Management graduate with 15 years of
varied exper ience across Strategic Planning,
Sales & Marketing, Product Design &
Development, to Six Sigma, Collections, and
Analytics.
• He has worked for GE & Citi.
• Amit manages the high growth Mortgages
Amit Gainda business for Bajaj Finserv lending.
Business Head
Mortgages
• Ashish has 13 years of rich and varied work
exper ience across manufacturing, FMCG and
Retail Banking in large multi-national
organizations across cred it cards, secure d and
unsecure d assets as well as liabilities.
• He join the Company from Barclays & would be
responsible for launching cred it card business.
Ashish Panchal
Business Head
Credit Cards
• Deepak has an exper ience of 20 years in
Financial Services, ITES, and Manufacturing
industry.
• Deepak is responsible for driving people
strategy for the organization and making Bajaj
Finserv Lending the Employer of Choice.
• He earlier worked with Reliance, CRISIL and
SREI.
Dee pak Gupta
Chief Human
Resources
• Deepak has over 20 years of exper ience in
distributing Financial Services & Consumer
Durables.
• He joined us from American Express, wher e he
held various positions in their Per sonal Loans &
Consumer Card businesses for over 9 years.
• Deepak manages our unsecured business &
Dee pak Redd
dy per sonal loans.
Business Head
Pe rsonal & Small
Business Loans
• A charter ed accountant by profession, Devang
brings with him 15 years of exper ience in
consulting and financial services.
• Joining us from AIG, wher e he worked as Vice
President – Business Development & CRM for
the consumer finance business.
• Earlier he worked with GE money for 8 years.
Devang Mody
Business Head
Sales Finan ce
Stable & dee p management structure (cont’d)
• Diwakar has nearly 12 years of varied and rich
work experience, with the last ten years in
Risk Management.
• He joins us from Citigroup, wher e his last
assignment was managing risk and cred it for
West & South India regions for the Small &
Medium Enterprises (SME) business.
Diwakar Pundir • He would be managing the commercial credit.
Chief Credit
Officer
• Pankaj joined Bajaj Finserv Lending in 2006,
bringing with him a rich exper ience of 28 years
in financing, financial accounting, cost
accounting, tax, and systems
• He is a Mathematics Graduate and a Chartered
Accountant
• Pankaj has provi ded invaluable advice and
Pankaj Thadani direction that has help ed the Company grow
Chief Financial from a single business company to a diversified
Officer NBFC.
• Rajesh is a management graduate with over 14
years of exper ience in financial services across
consumer and commercial lending.
• Rajesh joins us from HSBC wher e he was
handling the portfolio risk management unit
for HSBC’s consumer cred it risk function.
• Rajesh is responsible for maintaining portfolio
Rajesh K quality. He earlier worked with GE money and
Chief Risk Standard Chartered.
Officer
• Rakesh has an overall exper ience of 18 years in
finance & technology industry.
• He has played several leader ship roles
encompassi ng CIO responsibilities, IT Product
Mgmt., and Delivery.
• Currently, as the chief architect of our
technology initiatives, he has successfully
harne ssed technology to introduce many
Rakesh Bhatt innovations
Chief Information •
Has earlier worked with GE money, Reliance
Officer and AIG.
• Sanjee v is a chartere d accountant by profession
• 19 years of exper ience in Retail Consumer
Finance, SM E mid-markets, and Corporate
Finance for sectors such as Infrastructure,
Industrial, Healthcare, Transportation, Auto,
and Securitization of Receivables
• Sanjee v manages construction equipment
Sanjee v Vij business in strategic & retail space
Business Head • He earlier worked with RBS and Citi.
Construction
Equipment Finan ce
• Vivek joined Bajaj Finserv Lending in 2007.
• He is a Chartered Financial Analyst and holds a
Cost Accountant degree from ICWAI.
• He has an exper ience of 22 years in strategic
planning, process and operations management,
accounts, funds management, budgeting, and
MIS
• He worked across operations, LA S business & is
Vivek Likhite
e
currently responsible for setting up corporate
Corporate Audit
audit services.
Services
 Product line strategy
Profit Maximisers Scale Builders
• Relatively higher RoA
Non qualifiers
• Relatively lower RoA
• Low ROE – Lack of competitive
• Lower asse t base and lower capital • Hig her asse t base and higher capital
advant age
requirement s requirement s
• Customer segment ation
• High risk and return • Lower risk & return

Relatively low RoA

2 Wheeler
Relatively higher RoA Car loans
Finance

Finance
Captive financing
Sales
Consumer

Not a bank’s business

Large cross sell opportunity E2E Integration play Captive play
leadin g to higher ROA

Credit Card partn ership (WIP)

Gold loa ns & Micro finance
Relatively high RoA
Critical to full scale SF business Customer segmentation issues

Relatively low RoA

Relatively higher RoA
Small Business

Mortgage
Small business

Loans

Un-penetrated space Commercial vehicle

Mee t working capita l needs of
M SME & SME clients Mee t working capita l needs of
M S ME & SME clients Specialized business

Relatively higher RoA

Loan Against
Securities

Regulatory advantage.
Mee t working capita l needs of
M SME & SME clients
Commercial

Construction
Equipment

Relatively low RoA

Dominated by non banks.
Large upstream opp.

Relatively low RoA

ancillary
Infra

High growth rate s and high

deman d potential
Summary financial statement

` in
billi
Financi als snapshot FY08 FY09
FY10 FY11
Deployments 30.36 24.51 45.85
94.35 46%
Assets under finance 24.78 25.39 40.32
72.70 43%
Assets under management (AUM) 24.78 25.39 40.32
75.71 45%
Income from operations 5.03 5.99 9.16
14.06 41%
Interest expenses 1.70 1.64 2.02
3.78 30%
Net Interest Income (NII) 3.32 4.35 7.15
10.28 46%
Operating Expenses 1.93 2.20 3.20
4.54 33%
Loan Losses & Provision 1.09 1.64 2.61
2.05 23%
Profit before tax 0.30 0.51 1.34
3.70 131%
Income tax 0.09 0.17 0.45
1.23 136%
Profit after tax 0.21 0.34 0.89
2.47 129%

Ratios FY08 FY09

FY10 FY11
Total Opex to NII 58.1% 50.7% 44.7%
44.1%
Loan loss to Assets under finance 4.4% 6.4% 6.5%
2.8%
Return on Average Asset under 0.9% 1.3% 2.8%
finance 4.3%
Earning per share (Rs.) 5.68 9.27 24.43
67.47
Return on Average Equity 2.0% 3.2% 8.0%
19.7%
Financial performance trends FY-11
# of Loans Disbursed (‘000) Disbursements (` billion)

40% 1,570 106 % 94 .35

1,123
1,018
1,048 45 .85
74 .01
594 30 .36
621 681 24 .51
355 32 .21
15 .52
397 442 522 16 .68
239 14 .84 13 .64 20 .34
7.83

FY-08 FY-09 FY-10 FY-11 FY-08 FY-09 FY-10 FY-11

2 Wheelers Others Total 2 W heelers Others Total

AUM (` bi llion) Revenue (` billion)

88% 75 .71
53 % 14 .06
40 .32
56 .18
24 .78 25 .39 9.16
26 .39 5.99
8.31 13 .64 5.03

16 .47 11 .75 13 .93 19 .53

FY-08 FY-09 FY-10 FY-11

2 W heelers Others Total FY-08 FY-09 FY-10 FY-11

 Strong growth momentum with
under-penetration
Nominal GDP Movement (` Loan Against Proper ty in India (` Billion)
Trillion)
CAGR 12.6% 58.7
52.3
45.4 FY05-11 CAGR 17% Disbursement Market Share
73 .1
37.8
32.8
28.8
61 .3 FY 10–14P CAGR : 28% 5%
52.8
45.4 19%
33%
37 .8 32 5
32 .8
28 .8
43%
FY-05 FY-06 FY-07 FY-08 FY-09 FY-10 12 0
85

Housing Finance Co. NBFCs

FY-05 FY-06 FY-07 FY-08 FY-09 FY-10 FY-11 FY-09E FY-10E FY-14P Pvt. & For eign Banks PSU Banks

Source: Central Statistical Organisation (CSO) Source: CRISIL Rese arch (Loan Against Property , December 2010)

Housing loans outstanding and % of GDP Two wheele r finance disbu rsements and finance
(` Billion, %) penetration (` Billion, %)

FY 11-15P CAGR : 17% 37% FY 11-15P CAGR : 11%

800 33% 33%
12 ,363 30%
9.1%
9.1% 600
478 65 7
38 0
4,765 6,64 0
5,58 8 400 295

9.0% 200

0
 72 84 99 150

FY09 FY10 FY11-P FY15-P

FY- 09E FY- 10E FY- 11P FY- 15P
Hous ing Loans Hous ing loans as % of GDP
New 2W Sales New 2W Finance Finance Penetration
Source: CRISIL Rese arch (Update Retail Finance Housing, Feb. 2011) and CSO
Source: CRISIL Rese arch (Update Retail Finance Auto, May 2011)
Credit Quality of Bajaj Finance customers
across products
Consumer Durable Loans – 90+ DPD Personal Loans – 90+ DPD
4.00 %
0.40 % 0.49%
0.23% 0.31 % 0.54%
1.30 % 0.28 %
0.84% 0.41 % 0.83 % 1.60 %
0.58 % 0.69%
1.00 %

Auto Loans Bus iness Consumer Credit Home Personal

Loans Durables Cards Loans Loans
Loans Bajaj Finance Banks NBFC
NBFCs Banks Bajaj Finance

Small Business Loans – 90+ DPD Mortgage and Loan Against Proper ty – 90+ DPD
1.87% 0.93 %
0.75 %

0.71 %
0.42%
0.08%

Bajaj Finance Banks NBFC Bajaj Finance Banks NBFC

 BAJAJ FINANCE HISRORY
Bajaj Auto Finance Ltd. (BAFL) was incorporated as a Private Limited
Company on 25th March, 1987. It became a deemed Public Limited
Company by virtue of Section 43(A) of the Companies Act, 1956 w.e.f.,
20th October, 1987.

Initially BAFL was promoted by erstwhile Bajaj Auto Limited and Bajaj
Auto Holdings Limited. Bajaj Auto Limited is the largest manufacturer of
two and three wheelers in the country and Bajaj Auto Holdings Limited is
an investment company and is a wholly owned subsidiary company of
Bajaj Holdings & Investment Limited. As per the Scheme of Demerger of
erstwhile Bajaj Auto Limited, the shareholding of Bajaj Auto Limited in
BAFL has been vested with Bajaj Finserv Limited.

BAFL is an NBFC registered with RBI and authorized to accept public

deposits. Consequent to the re-classification of NBFCs by RBI, BAFL
has been re-classified as an Asset Finance Company (Deposit Taking) ´.

BAFL is engaged primarily in the business of financing of two wheelers,

consumer durables, personal computers, personal loans etc.

BAFL made a Public Issue of Equity Shares in 1994 and its Equity
Shares are listed on Bombay Stock Exchange Limited and National Stock
Exchange of India Limited.

BAFL made Preferential Issue of Equity Shares to the Promoters and a

few foreign corporate bodies and also warrants to the Promoters in 2006.

BAFL made a Rights Issue of Equity Shares and Non-Convertible

Debentures with detachable warrants to the existing shareholders in 2006-
07.

BAFL has its headquarters at Pune and has more than 50 branches spread
across the country.
 Introduction

Bajaj Finserv Lending offers loans for various needs. We

offer loans for Bajaj Auto Two Whee lers under the name
of Bajaj Auto Finance Ltd. We off er Consumer Durable
Loans, Personal Loans, Loan against Property, Small
Business Loans, Construction Equipment Loans, Loan
against Securities and Insurance Services under the
name of Bajaj Finserv Lending.

Bajaj Finserv Lending is one of the most diversified

NBFCs in the market catering to mo re than 5 milli on
cust omers ac ross the coun try. Apart from bei ng a well
recognized organization, we pride ourselves for holding
the highest credit rati ng of FAAA/Stable for any NBFC in
the country today. Our product offerings include
Consumer Durable Loans, Personal Loans, Loan
against Pr operty, Small Business Loans, Two-wh eel er
and Three -whee ler Loans, Construction Equipment
Loans, Loan against Securities and Insurance Services.

Our unique products fea ture across all categories and

offer a compelli ng value proposition to our customers.
Our strong p resence in the Indian market for over 23
years has enabled us to establish a strong foothold here
and we aim to continuou sly provide our customers with
premium service and exclusive benefits.
 CONSUMER DU RABLE LOANS

• Bajaj Finserv Lending is one of the leading financiers in

the market offering consumer durable loans on EMI.

• Now you can easily avail a loan for products like LCD,
LED, Color TV, Refrigerator, Washing Machine, Air
Conditioner, Music System, Microwave etc amongst a host of
other products.

• Bajaj Finserv Lending consumer durable loan comes with 0%

financing and with a small fee. You can apply online on our website
and get an instant approval or visit a dealership to easily avail a loan.
We provide on the spot approval with minimum documentation &
fast processing.
 FEATURES & BENEFITS

• F e atu r e s

Bajaj Finance, the sole organized financier in the market offering

Consumer Durable loans offers you Dreams on EMI, with 0% finance
options also available. CD loans are EMI loans for Consumer Durable
items like Washing Machines, Refrigerators, Color TV's, LCD's etc. These
CD loans come at a very reasonable pr ice, with a very simple process.
You can just walk into one of our Dealer partner showrooms and avail of
this facility for the item of your choice. Loans are available for amounts
more than Rs.7000. Multiple Credit programs are also available to suit
your fitment.

 Avail loans ranging from Rs. 7,000 to Rs. 5,00,000 for

Washing Machines, Refrigerators, Color TVs, LCDs and other
consumer durables.
 Apply Online or walk in to one of our Dealer Partner showrooms
and get your loan approved in 15 minutes.

• Benef it s

 0% finance options available (for select

schemes).
 Simple process with minimum
documentation.
 On the spot approvals with fastest
processing.
 Flexible repayment options.
 ECS clearing, reducing hassle of arranging cheques.
 Extended Warranty available.
 Pre-approved personal loan offers for existing customers*
 E l i g i b i l i t y & D o c u me n t s

• E l i g ibil i t y

If you are a salaried person your age should be between 21 years to 60

years. If you are Self Employed your age should be between 21 years to
65 years.

• Doc um ent s

Documents required Salaried Self Employed

Photo Id Proof yes Yes

Residence proof Yes Yes

One Cheque in case of ECS Yes Yes

Credit program specific documents ( Any one of the following)

Credit Card front side photocopy Yes Yes

Visiting Card & Employee Id proof Yes No

Photocopy of RC book (Not applicable Yes Yes

for vehicles registered after 2004 &
commercial cars)

Bajaj Finserv Lending existing loan Repayment Loan Yes Yes

Account Number / Schedule (subject to
not later than 18 months old)

Any other Bank/NBFC Repayment Schedule Yes Yes

Salary Slip Yes No

Banking Details (latest 6 months) Account Type- OD/ CC Yes Yes

 F ee s & Ch a r g e s

Amount Financed Slab Processing Fees

Upto 15000/- Rs.499/- to Rs.599/-*

Between Rs.15001/- & upto Rs.30,000/-* Rs.599/- to Rs.699/-

Rs.30,001/- & above Rs.699/- to Rs.799/-*

OTHER CHARGES AMOUNT

Foreclosure Charges NIL

PDC Swapping Rs. 500

Cheque Bounce - Rs. 350 per cheque

Bounce Charges Late payment penalty - Rs. 150
 IT Product Loans

• Features –

Bajaj Finance, the sole organized financier in the market offering IT

Product loans, offer s you Dream Desktop/Laptop on EMI, with 0%
options also available. These IT Product loans come at a very reasonable
price, with a very simple process. You can just walk into one of our
Dealer partner showrooms and avail of this facility for the item of your
choice. PC loans are available up to 100% of the product price. Loans are
available for amounts above Rs. 20000.

• Benefits –

 0% finance options available (for select schemes).

 Simple process with minimum documentation.
 On the spot approvals with fastest processing.
 Flexible repayment options.
 ECS clearing, reducing hassle of arranging cheques.

 Extended Warranty available.

 Eligibility & Documents

• Eligibility –

If you are a salaried person your age should be between 21 years to 60 years.
If you are Self Employed your age should be between 21 years to 65 years.

• Documents -

Documents required Salaried Self Employed

Photo Id Proof Yes Yes

Residence proof Yes Yes

3 Cheques Yes Yes

Credit program specific documents ( Any one of the following)

Credit Card front side photocopy Yes Yes

Visiting Card & Employee Id proof Yes No

Photocopy of RC book (Not applicable Yes Yes

for vehicles registered after 2004 &
commercial cars)

Bajaj Finserv Lending existing loan Repayment Loan Yes Yes

Account Number / Schedule (subject to
not later than 18 months old)

Any other Bank/NBFC Repayment Schedule Yes Yes

Salary Slip Yes No

 Insurance Services

Bajaj Auto Finance Limited (BAFL) has tied up with Bajaj Allianz Life
(part of Bajaj Group), to offer a rich bouquet of world class life insurance
products to suit the financial needs of all segments of buyers through
different stages of their lives. With its successful track record and its
highly acclaimed standing, Bajaj Allianz Life Insurance Company (BALI
C) prides on serving over 8 million Indian customers. BAFL shares
BALIC's philosophy of providing insurance solutions relevant to the
customer's needs.
 Pr o du ct Cat egor i e s

From luxury to comfort, from indulgence to practical, from difficult

to easy - we have simplified the many little joys you wish to buy for
your family. Be it the top-end LCD to bring a smile on your loved
one’s face or that high-end home theatre for your cricket match party
or even that AC you want for your little one's room - our
comprehensive loans make everything easy.

TV / CTV
Washing Machine
Refrigerator / Fridge
Microwave Oven
Home Theater Systems
Product Categories
LCD / LED /Plasma
TV Air Conditioner

Etc……..
 COMPANY IS DEALING WITH FOLLOWING
PRODUCTS –

Consu mer Durable Loan

Home Loan
Infrastructure Equipment Finance
Loan Against Propert y
Loan Against Securities
Personal Loan
Small Business Loan
Two Whee ler Loan
 ACHIEVEMENTS AND MILESTONES

CERDIT RATINGS:

• Highest Credit Rating of FAAA/Stable from CRISIL for

Fixed Deposits.
• P1+ rating from CRISIL for Short-Term Debt Programme.
• AA+/Stable from CRI SIL and LAA+ from ICRA f or
Long-Term Debt Programme.

We have a network of over 2,500 Bajaj Auto and consumer

durable dealerships and over 63 branch offices throughout the
country to cater to all the requirements of our customers. We
have earned the trust and loyalty of over 50 lacs satisfied
customers across the country.
Total Sale to Finance Cases at
CPR Distributors, Koh E Fiza
 Findings and Limitations

Findings -

• Majority of cases happen in the evening time between 6

PM to 10 PM.

• Number of cases on weekends is higher than other days of

the week.

• Most cases are for the products ranging more than

Rs. 10,000.

• The client base at CPR distributors Koh E Fiza is mostly

of Business Profession.

• Repeat sale for existing customers is increasing day by

day hence this holds a great scope in future.

• Finance demand for products at their peak sale season is

very high urging for special schemes for those categories at that
time. Example – Air Coolers & AC’s in summers and Washing
Machines in Rainy Season.

• Customers are unclear about the documentation

requirement which creates frustration among them leading to
loss of sales.

• Incentives to the Sales Force at CPR dist. for their

Finance conversions is not provided timely which is creating
disinterest in them for finance.
Limitations -

• Verification process in case of IT products gets delayed

very often.

• Potential customers unaware of the the various schemes

provided by Bajaj Finserv Lending.

• CPR Dist. Sales Executive support is low in some

sections like Microvave and Air Conditioners.

• Initiative taken for the sale of Insurance Product (Group

Suraksha Plan) is low among the Bajaj Executives.

• Negative Area list needs modification.

 SWOT ANALYSIS

Strengths -

• Monopoly player in the Consumer durable finance

market.
• Insurance Product (Group Suraksha Plan) is an incredible
product also providing cross sale.

• 0% finance facility.

• EMI Card provided for existing customer is one of a kind

service.

• BFL has presence at all the major retail counters

throughout the country.

• Strong network of executives with a responsible

managerial hierarchy.

Weakness -

• Low Control on the Payment Default by customers.

• Concentration needed on cross selling.

• Lot of dependence on the Online Support System.

• Customer Service and handling needs improvement.

Opportunities -

• Market has a lot of growth opportunities.

Consumer Finance being an untapped market holds great
scope.

• Use the market as a good platform for cross selling.

• Create a brand identity of its own, strengthening the brand

Bajaj.

• Opportunities in Rural market.

• Opportunities available to reach the top position amongst

the Finance Companies and establish itself internationally.

Threats -

• New competitors entering the market with similar offerings.

(HDFC, Shriram).

• There is always a threat of Losses due to payment defaults in

such business.
 Suggestions & Recommendations

• Management must encourage Executives to concentrate more on

Cross Selling.

• Finance schemes for strong seasonal sale products should be

introduced.

• A promotional campaign must be run clarifying the benefits and

offerings of BFL which would vanish the doubts about 0 %
finance & 0 processing fees.
• Processing fees should not be charged from the EMI card holders
in the case of Consumer Durables as it will create loyalty among
customers and will help build a strong customer base even before
the competitors entering the market.

• A single agency must be hired for the verification purpose for

the entire BFL to improve the uniformity of the process. Also,
there is a great need of proper control over the verification
process to reduce the lag time in verification.
 Conclusion

Bajaj Finserv Lending provides consumer credit services which are

helpful for the financial stability.

Financial stability is very important not only for the businesses but
also for the consumers. The businesses and as well as the consumers
need the stability regarding the financial matters because without the
stability no one could be very innovative in the longer run.

Consumer Finance market being an untapped one in India holds a

great scope for progress and market capture and BFL has been
exceptional in that till date.

Bibliography
 • Annual Report – Bajaj Finserv Lending.

• FICCI Research on Consumer Finance.

Websites -
http://www.bajajfinservlending.in

http://www.managementparadise.com