TRAINING REPORT ON THE TOPIC

MARKETING OF FINANCE
AUTO-FINANCING: RELATED ASPECTS
For the training under gone at

KARNAL BRANCH

In the partial fulfillment of MBA - 5 - Year Degree

SUBMITTED TO:
Director IMS, KUK

PRESENTED BY:
Harshul Nagpal 7th Semester Roll No: 50 Reg. No. 08 UD 1136 Batch 2008-13

Institute of Management Studies, Kurukshetra University, Kurukshetra.

DECLARATION
I, Harshul Nagpal, hereby declare that I have completed the project, entitled Marketing of Finance given to me during the training at Malwa Car Zone (P) Ltd., SCO-8, Sec-14, Urban Estate, Meerut Road, Karnal, and the report to be submitted in the partial fulfillment of MBA-5-Year Degree from Kurukshetra University. Further, I declare that this study has not been used otherwise or being submitted to any other institution for the award of any degree or any other purpose. Dated: 27-07-2011

HARSHUL NAGPAL

7th Semester Roll No: 50

ACKNOWLEDGEMENT
First of all, Id like to thank the department, Institute of Management Studies, for giving us such a creative idea, of going through a training program and preparing a report on its basis, which will help us in developing our skill in corporate sector, beforehand. I am also thankful to all the Authors and Publishers whose works have been quoted in this study. My sincere gratitude is to be forwarded to Mr. Vijay Sharma, General Manger at Malwa Car Zone (P) Ltd., Karnal, for his kind guidance. And now, most importantly to Mr. Gaurav Panwar, Finance Manager and my Supervising Executive at Malwa car Zone. Its only because of him that I, first time, came to know much about the corporate world, the automobile sector and various other small but important aspects, other than the training work. It has been a wonderful experience only due to his provision of time and knowledge to me. I am also thankful to all the Executives present during my training, who were always there for me to help and guide throughout the training and the preparation of this report and provided me the useful matter for the report. I would also like to extend my sincere thanks to Mr. M.S. Mehta, Development Officer, United India Insurance; who had always been there for me to help out for the trainings and the reports and his much needed support and knowledge to me. My sincere thanks are also due to my family who always motivated me throughout this project and especially my father, Dr. I. J. Nagpal, without whose guidance this work would not been possible. I am thankful to him for his valuable suggestions, ideas, ways and guidance. My heartiest gratitude is also due to my mother, Mrs. Neeta Nagpal and sister, Arunima Nagpal because without their support and motivation, any work of mine could not be a success. HARSHUL NAGPAL IMS, KUK
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CONTENTS
ACKNOWLEDGEMENT 4

CHAPTER 1 COMPANY PROFILE Nissan Motor Co. Ltd. Corporate Information Models Hatchback Cars Nissan Micra Sedan Cars Nissan Teana Sport Utility Vehicle Nissan X-Trail, Nissan 370Z CHAPTER 2 BANKS AND AUTO-FINANCING Banks Composition and current scenario Public Sector Banks Private Sector Banks
Non-Banking Financial Companies (NBFCs)

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Some Examples of NBFCs providing Motor Finance in India Auto Finance Companies in India List of Top Auto Finance Companies in India SBI Car Loan ICICI Car Loan HDFC Car Loan Kotak Car Loan
Bank of Baroda Car Loan Top Ten Tips to Getting the Right Car Loan for You

Policy Issues Related to Auto-financing

6

 Latest Rates Of Interest Of Various Banks CHAPTER 3 CUSTOMERS AND AUTO-FINANCING

43

Types of Customers Documents Required Questionnaire for Customers Process of Settling Non-Income Proof(Nip) Case CHAPTER 4 CIBIL Current Indian Scenario 48

CIBIL The Answer Integral Solution Our Mission and Vision Shareholders Current Shareholding CONSUMER BUREAU

Consumer Credit Information Report (CIR) Portfolio Review Report CIBIL TransUnion Score CIBIL TransUnion Personal Loan Score Bureau Credit Characteristics (BCC) CIBIL Market Insights CIBIL Locate Plus COMMERCIAL BUREAU Commercial Credit Information Report (CIR) Suit-Filed cases

BIBLIOGRAPHY

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Chapter 1

COMPANY PROFILE

Nissan Motor Co. Ltd.

Jidosha Seizo Co. Ltd. was the founder of Nissan Motor Company. Ltd. The company was established in Yokohama in the year 1933. After a year in 1934, Japan based Nissan Motor Company Limited changed its name from Datsum. Apart from Nissan cars, the company also manufactures and designs various other products such as pleasure boats, machinery and communications satellites. The headquarters of this company is based in Tokyo. Nissan Motors Co. Ltd. is mainly engaged in the production and sales of vehicles and spare parts. Nissan Motors started capturing Indian automobile market with the introduction of Nissan X-TRAIL and compact Sports Utility Vehicles. Widely scattered dealer network of Nissan Motors Pvt. Ltd. is in India covers Delhi, Mumbai, and Chennai etc. During the war years (from 1938) the company converted entirely from manufacturing Nissan motors cars to the production of trucks and military vehicles. During the 2nd world war (from 1938), the company converted entirely into the production of trucks and military vehicles. The main NISSAN Plant was seized by the Allied occupation forces in 1945, though allowing production of Nissan car models and Datsun vehicles to resume at one plant, they did not restore all other facilities to Nissan until 1955. After that, when Nissan entered the world market in 1960, its production and sales increased phenomenally. The company is engaged in joint ventures abroad, and Nissan has established assembly plants in several foreign countries, including Australia, Peru, Mexico, the United States, and Germany. Nissan Motor India Private Ltd., a subsidiary of Nissan Motor Limited Japan, was incorporated in 2005 with a vision of Enriching Peoples Lives through latest Nissan Technology and products. Chennai is a strategic hub for Nissan.

Corporate Information
Nissan Motor India Private Ltd. (NMIPL), a 100% subsidiary of Nissan Motor Limited Japan, was incorporated in 2005 with a vision of Enriching Peoples Lives through latest Nissan Technology and products. Chennai is a strategic hub for production, R&D and exports for Nissan. In February 2008, Nissan together with its global alliance partner Renault signed a MoU with Government of Tamil Nadu to set up a manufacturing plant at Oragadam, near Chennai with an investment of Rs. 4500 crores over a period of 7 years. On March 17, 2010, the Renault-Nissan alliance plant was inaugurated in a record time of 21 months since its groundbreaking ceremony in June 2008. The Plant has an initial capacity of 2,00,000 units per year and will reach 4,00,000 units per year in full capacity in the future. NMIPL existing range of products include the X-Trail (SUV model), the Teana (luxury Sedan) and 370Z (iconic sports car) all three imported from Japan as CBU (completely built units) and Nissan Micra. The launch of the first locally made global compact hatchback (Nissan Micra) in July 2010 marks the serious foray into the mass market by Nissan in India. NMIPL also commenced exports in September 2010 to more than 100 countries including Europe, Middle East and Africa. NMIPL has appointed Hover Automotive India (HAI) as their exclusive strategic alliance partner to handle sales and marketing, dealer development, customer relationship management and after sales in India. The company has 30 dealers operational in major cities across the country and aims to have more than 100 dealers by 2013. In line with its global philosophy of corporate sustainability, NMIPL has already begun its commitment to make a meaningful contribution to the community. The plant has already completed constructing 16 residential homes for relocated families from construction site, apart from constructing local Police Station and a fire service station in the Oragadam village. At the corporate level, NMIPL has also partnered with Habitat for Humanity for providing shelter to 75 families by constructing homes for the socially and economically less fortunate section of the society. MODELS OF NISSAN MOTORS CARS
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MODEL
Nissan Micra Nissan 370Z Nissan X-Trail Nissan Teana

TYPE
Small Car (Hatchback) Premium (SUV) Sport Utility Vehicle (SUV) Premium (Sedan)

AWAITED MODEL OF NISSAN CARS

MODEL
Nissan NV200 Nissan New 2011 X-Trail Nissan Micra Diesel Nissan Micra Automatic Nissan Sunny Nissan Pixo Nissan Murano Nissan GT-R Nissan Livina Nissan Infiniti G35

TYPE
Multi Utility Vehicle Sport Utility Vehicle Hatchback Car Hatchback Car Sedan Hatchback Car Sport Utility Vehicle Sport Utility Vehicle Sedan Mid Size Car

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Hatchback Cars Nissan Micra

Hatchback cars are those cars that have an access to the interiors once the rear door is open and also the luggage space is integrated with the passenger cabin and the rear seat can be folded or removed to increase the luggage space. The two row seater small compact cars are categorized as Hatchback cars. Due to its low pricing, better mileage, low maintenance and most importantly perfect for drive in city's heavy-traffic, it has become the most selling car segment.

Hatchbacks occupy less parking space and is suitable for the metros where parking space is a major problem and also convenient for women drivers. Series of face lifted hatchback cars in India been launched and many more are yet to be launched. It seems the car manufacturers are aiming to revamp the entire small car or the hatchback segment. Comparing to last year, the new models of small cars has almost doubled this year. Even the car manufacturer of the luxury segment are now entering the hatchback segment.

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Sedan Cars Nissan Teana

The main features of a Sedan cars include bigger chassis dimensions, seating space and luggage space included in single body shell. Sedan are the mid size cars having more row seats with passenger capacity of four or more. A sedan model has more than four doors with separate boot or luggage space at the rear. Basically sedan car means the cars with more boot space and entirely different section from the passenger's cabin. In cars sedan is synonymous to luxury. Sedan cars are the blend of comfort, luxury, elegance and stunning interior with high end safety features. There are endless high end luxury cars in the same segment. The demand of sedan cars are increasing rapidly in India which is the main reason many foreign car manufactures target India as a launching pad for these luxury cars. The major players in this particular segment are Honda, Skoda, Volkswagen, Ford and Hyundai.

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Sport Utility Vehicle Nissan X-Trail, Nissan 370Z

Utility vehicles are rapidly capturing the market due to its multifarious use. Utility vehicles are found in two kinds :- Sport Utility Vehicle or Sports Utility Vehicles (SUV) and Multi Utility Vehicles (MUV). SUV in India has a large market base, and the demand is growing exponentially with time. The spacious interior and sturdy exterior of a sport utility vehicle have made this category of utility vehicles one of the fastest selling vehicles in India. SUV is multi use vehicle, used to accommodate many passengers in one vehicle. No wonder, SUVs are preferred over other vehicles while going on a long trip with family members and friends. SUV in India, especially the sport utility van has always remained one of the most favorite family cars of the car owners in the country. The name sport utility vehicle itself suggests why SUV vehicles have a huge fan following all over the world. Their sporty attributes make them look truly appealing, and for everyone who has a thing for sporty cars in India, SUV cars are the foremost choice. Go through any sport utility review, and it will say the road performance and mileage of a sport utility wagon or a sport utility trailer is surely one the best amongst all vehicle categories.

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Chapter 2

Banks and Autofinancing

16

BANKS
A bank is an institution that accepts deposits of money from the public, which are repayable on demand and withdrawable by cheque. Such deposits are used for lending to others and not for financing its own business of any kind. The term lending includes both direct lending to borrowers and indirect lending through investment in open market securities. A sound banking system plays a pivotal role in the growth of a nation's economy. In India, the beginning of banking system dates back to 1881, when the first bank called as 'the Oudh Commercial Bank' was established. It was followed by the setting up of the 'Punjab National Bank' in 1894. Subsequently, a number of commercial banks came up in the country. The number of bank offices multiplied from 8,300 in July 1969 to more than 47,000 in June 1995. It substantially improved the overall availability of banking facilities in the country.

Composition and current scenario

As per the Reserve Bank of India Act, 1934, banks in India are classified into scheduled and nonscheduled banks. Scheduled banks are those which are entered into the second schedule of the RBI Act, 1934. It includes those banks which have a paid-up capital and reserves of an aggregate value of not less than Rs. 5 lakhs and which satisfy RBI that their affairs are being carried out in the interests of the depositors. While, non-scheduled banks are those which have not been included in the second schedule of the Act. The scheduled banks comprise scheduled commercial banks and scheduled cooperative banks. Further, the scheduled commercial banks in India are categorized into five different groups according to their ownership and/or nature of operation:- (i) Nationalized Banks; (ii) State Bank of India and its associates; (iii) Regional Rural Banks (RRBs); (iv) Foreign banks; and (v) Other Indian private sector banks. Scheduled Co-operative Banks consist of Scheduled State Cooperative Banks and Scheduled Urban Co-operative Banks.

17

1.

PUBLIC SECTOR BANKS

At present, there are 170 scheduled commercial banks in the country, which includes 91 regional rural banks (RRBs), 19 nationalized banks, 8 banks in State Bank of India group and the Industrial Development Bank of India Limited (IDBI Limited).Besides, there are only four non-scheduled commercial banks in the country. Allahabad Bank Andhra Bank Bank of Baroda Bank of India Bank of Maharashtra Canara Bank Central Bank of India Corporation Bank Dena Bank Indian Bank Indian Overseas Bank Oriental Bank of Commerce Punjab and Sind Bank Punjab National Bank Syndicate Bank UCO Bank Union Bank of India United Bank of India Vijaya Bank

The State Bank of India (SBI) and its associate banks include:

State Bank of India (SBI) State Bank of Bikaner and Jaipur (SBBJ) State Bank of Hyderabad (SBH) State Bank of Indore (SBIR) State Bank of Mysore (SBM) State Bank of Patiala (SBP) State Bank of Travancore (SBT)

18

2.

PRIVATE SECTOR BANKS

Private banks are banks that are not incorporated. A private bank is owned by either an individual or a general partner(s) with limited partner(s). In any such case, the creditors can look to both the "entirety of the bank's assets" as well as the entirety of the sole-proprietor's/general-partners' assets. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 12. 13. 14. 15. 17. Bank of Punjab Bank of Rajasthan Catholic Syrian Bank Centurion Bank City Union Bank Development Credit Bank Dhanalakshmi Bank Federal Bank HDFC Bank ICICI Bank ING Vyasya Jammu and Kashmir Bank Karnataka Bank Karur Vysya Bank South Indian Bank Mercantile Band

11. Indusland Bank

16. Nainital Bank Limited

18. Tamilnad

Limited
19. The Ratnakar Bank Limited

20.

United Western Bank

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Regional Rural Banks (RRBs) have been set up in the country on the sponsorship of individual nationalized commercial banks. These banks aim at taking the banking facilities to the doorsteps of rural masses especially in the remote areas. The objective was to provide credit to small and marginal farmers, agricultural labourers, artisans and small entrepreneurs so as to develop productive activities in the rural areas. They have been conceived as institutions that combine the features of both the co-operatives and commercial banks. Initially, five RRBs were set up in 1975, at Moradabad and Gorkhpur in Uttar Pradesh; Bhiwani in Haryana; Jaipur in Rajasthan and Malda in West Bengal. But gradually the spread of these banks has increased and the Government has taken several policy measures for their growth and expansion. Foreign banks like Citibank , HSBC , Standard Chartered Bank , etc are the branches of those banks which are incorporated in foreign countries. Most of them perform essentially the same range of services as local banks, except that their focus in terms of product and customers may be different due to their limited branch network. They help the local banking industry keep pace with developments in the financial centres abroad. They also help provide Indian corporations access to foreign capital markets. The State Co-operative Banks (SCBs) constitute the apex of the three tier co-operative credit structure, organized at the level of individual States. While, Urban Co-operative Banks (UCBs), refers to the primary cooperative banks located in urban and semi-urban areas. Initially, these banks were allowed to lend money only for non-agricultural purposes and essentially to small borrowers and businesses. Today, their scope of operations has widened considerably. The Urban Banks Department of the Reserve Bank of India is vested with the responsibility of regulating and supervising the urban cooperative banks. Given this set up, with liberalization, banks in India are venturing into non-traditional and diversified areas other than the core banking activities. They are facing increased competition both domestically and abroad. Hence, in order to make a benchmark in the changed environment, they need to tackle issues like profitability, efficiency, technological up gradation, customer satisfaction, etc in an effective manner.

3.

NON-BANKING FINANCIAL COMPANIES (NBFCs)

Non-banking financial companies (NBFCs) are fast emerging as an important segment of Indian financial system. It is an heterogeneous group of institutions (other than commercial and cooperative banks) performing financial intermediation in a variety of ways, like accepting deposits, making loans and advances, leasing, hire purchase, etc. They raise funds from the public, directly or indirectly, and lend them to ultimate spenders. They advance loans to the various wholesale and retail traders, small-scale industries and self-employed persons. Thus, they have broadened and diversified the range of products and services offered by a financial sector. Gradually, they are being recognised as complementary to the banking sector due to their customer-oriented services; simplified procedures; attractive rates of return on deposits; flexibility and timeliness in meeting the credit needs of specified sectors; etc. The working and operations of NBFCs are regulated by the Reserve Bank of India (RBI) within the framework of the Reserve Bank of India Act, 1934 (Chapter III B) and the directions issued by it under the Act. As per the RBI Act, a 'non-banking financial company' is defined as:- (i) a financial institution which is a company; (ii) a non banking institution which is a company and which has as its principal business the receiving of deposits, under any scheme or arrangement or in any other manner, or lending in any manner; (iii) such other non-banking institution or class of such institutions, as the bank may, with the previous approval of the Central Government and by notification in the Official Gazette, specify. Under the Act, it is mandatory for a NBFC to get itself registered with the RBI as a deposit taking company. This registration authorizes it to conduct its business as an NBFC. For the registration with the RBI, a company incorporated under the Companies Act, 1956 and desirous of commencing business of non-banking financial institution, should have a minimum net owned fund (NOF) of Rs 25 lakh (raised to Rs 200 lakh w.e.f April 21, 1999). The term 'NOF' means, owned funds (paid-up capital and free reserves, minus accumulated losses, deferred revenue expenditure and other intangible assets) less, (i) investments in shares of subsidiaries/companies in the same group/ all other NBFCs; and (ii) the book value of debentures/bonds/ outstanding loans and advances,

including hire-purchase and lease finance made to, and deposits with, subsidiaries/ companies in the same group, in excess of 10% of the owned funds. The registration process involves submission of an application by the company in the prescribed format along with the necessary documents for RBI's consideration. If the bank is satisfied that the conditions enumerated in the RBI Act, 1934 are fulfilled, it issues a 'Certificate of Registration' to the company. Only those NBFCs holding a valid Certificate of Registration can accept/hold public deposits. The NBFCs accepting public deposits should comply with the Non-Banking Financial Companies Acceptance of Public Deposits ( Reserve Bank) Directions, 1998, as issued by the bank. Some of the important regulations relating to acceptance of deposits by the NBFCs are:They are allowed to accept/renew public deposits for a minimum period of 12 months and maximum period of 60 months.

They cannot accept deposits repayable on demand. They cannot offer interest rates higher than the ceiling rate prescribed by RBI from time to They cannot offer gifts/incentives or any other additional benefit to the depositors. They should have minimum investment grade credit rating. Their deposits are not insured. The repayment of deposits by NBFCs is not guaranteed by RBI.

time.

The types of NBFCs registered with the RBI are:

Equipment leasing company:- is any financial institution whose principal business is Hire-purchase company:- is any financial intermediary whose principal business relates Loan company:- means any financial institution whose principal business is that of

that of leasing equipments or financing of such an activity.

to hire purchase transactions or financing of such transactions.

providing finance, whether by making loans or advances or otherwise for any activity other than its own (excluding any equipment leasing or hire-purchase finance activity).

Investment company:- is any financial intermediary whose principal business is that of

buying and selling of securities.

Now, these NBFCs have been reclassified into three categories:

Asset Finance Company (AFC) Investment Company (IC) and Loan Company (LC). Under this classification, 'AFC' is defined as a financial institution

whose principal business is that of financing the physical assets which support various productive/economic activities in the country. Some Examples of NBFCs providing Motor Finance in India : Alpha Motor Finance Limited Deep Motor Finance Limited Dignity Motors Finance Limited Dewan Motors Investment & Finance Hero Financial Services Limited Himachal Motor & General Finance

Magma FinCorp Limited Malwa Motor Finance

Multani Motor Finance Limited Rakshit Motor & General Finance Samrat Motor Finance Limited Trans Asia Auto & General Finance Vivek Motor Finance (Pvt) Limited

Auto Finance Companies in India

Indian auto market has more than 35 financers that offer auto financing solutions to the intended car buyers. Being one of the fastest growing automobile markets in the world, the Indian automobile market has got so much of potential and hence a number of auto finance companies have come up to tap the booming market. It can be added here that the passenger vehicle market constitutes almost 80% of automobile sales. In 2008, the stock passenger car was about 11 per 1,000 people. The production of passenger vehicle is further expected to go up at a CAGR of about 10% from 2009-10 to 2012-13. So, sensing this market potential, many financial companies in India have given special attention on auto financing. During the 2000s, the auto finance in India was dominated by private banks, when Citibank was the market leader. But its market share dropped from 27 per cent during 90s to less than 8 percent during early 2000. ICICI Bank became the new leader with almost 29.2 per cent market share during 200304. The journey continued till 2008 when HDFC bank took the lead. However, the current trend shows that the PSU banks like SBI, PNB, Bank of Baroda, Bank of India, Canara Bank, Syndicate Bank and Union Bank etc. are leaving behind their private sector counterparts in the ` 22,000 crore passenger car and 2-wheeler loan market. The reason behind this is the fact that, private banks have been compelled to reduce their exposure to the sector owing to increased delinquencies.

List of Top Auto Finance Companies in India

State Bank of India

State Bank of India (SBI) is one of the leaders in the auto finance segments in India. Recently it has slashed down its rate of interest for the new cars, which, in turn, has attracted a number of customers. Its long repayment option and extensive network of more than 12,150 branches have also made it quite popular among the customers. Recently SBI has inked a deal with General Motors for

car finance. In 2008-09, SBI registered a net profit of ` 9,121 crore, which was 35.55% bigger than the last financial year's profit of ` 6,729 crore.

ICICI Bank
ICICI Bank was the market leader in auto finance in India till 2008. Though currently not on the top, it still remains amongst the top 10 auto finance companies in India. However, to regain its lost reign, ICICI Bank is putting car loans on fast track. In the current financial year, ICICI Bank has doubled auto loan disbursement amount to more than 1,500 crore, comparing to the last financial year (ended March 2009). ICICI Bank registered a net income of ` 35,769.5 million in the last financial year (ended March 31, 2009).

HDFC Bank
HDFC Bank is a market leader in auto finance in India. In order to stay in the race of dominating Indian auto finance market, HDFC Bank also cut down the rate of interest for its car loan. In the financial year 2008-09, HDFC Bank registered a profit of ` 2,444,93 lacs, comparing to ` 1,590,18 in the previous financial year.

Bajaj Auto Finance Limited (BAFL)

Bajaj Auto Finance Ltd is one of the leading auto finance companies in India. Offering a diverse array of financial products to its clients ranging from two wheeler loans to other loans like consumer durable loans, business loans and many more, BAFL also offers free personal accident insurance to its clients. It has an extensive network of 50 branch offices and more than 6000 consumer durable dealerships. In the financially year 2008-09, BAFL registered a profit (after taxation) of ` 339.1 million, comparing to previous year's profit of ` 201.2 billion.

Citibank
Once a market leader in auto financing in India, Citibank offers automobile financing to its clients through its extensive dealership network across the country. One of the leading players in the market, Citibank offers a range of auto financing options for the customers. For the year ended March 31, 2009, Citibank registered a net profit (after tax) of ` 2,173 crore, which was 20% higher than its previous year's profit of ` 1,804 crore.

Bank of Baroda
Bank of Baroda offers specially-designed car loans for the customers so that it meets their demands, status and taste. Loans are offered for new as well as used cars. Bank of Baroda also offers a unique facility for installation of CNG/LPG Gas-kit in the cars. Unique features and low interest rates are USPs of Bank of Baroda car loans. In 2008-09, Bank of Baroda registered a net profit of 2,227.20 crore, comparing to the net profit of ` 1,435.52 crore in the previous financial year.

Punjab National Bank

Punjab National Bank, a renowned leader in the field of auto finance market in India, offers auto loan for new as well as old vehicles of not older than 3 years. Loans are also offered for purchase of vehicles of foreign/indigenous makes. In September 2009, PNB tied up with Mahindra and Mahindra for financing their vehicles across the nation. PNB registered a net profit of ` 3,090,88 lacs in the year ended March 31, 2009.

Kotak Mahindra Prime Limited (KMPL)

Kotak Car Finance has crafted a niche in the Indian auto finance market through its flexible schemes, hassle-free documentation and quick processing. KMPL finances new as well as used cars. In 2008-09, KMPL registered a net profit (after tax) of ` 1,570 million.

Sundaram Auto Finance

Sundaram Auto Finance is one of the market leaders in the auto finance market in India. Founded in 1998, this company extends finance in all models of cars. Customers can choose from a range of vehicle and finance packages offered by the company. It also has an extensive network of more than 400 branches across the nation. Sundaram finance registered a consolidated net profit of ` 15073.14 lakhs in 2008-09.

United Bank of India

United Bank of India is one of the leading auto finance companies in India offering range of car financing options to the customers. It offers car loan for new cars as well as for used cars. In 200809, UBI registered a net profit of ` 18470.96 lakhs.

Canara Bank
Canara Bank offers attractive interest in the auto loans for its customers. From August 2009, Canara Bank further reduced its auto loan rates to woo customers. Canara Bank registered a net profit of ` 2072 crore in 2008-09, which saw a 32.4% rise from previous year's net profit of ` 1565 crore.

5 steps to Getting a New Car

1. Loan Scheme Selection

Choose a Car Loan Scheme. 2. Documentation

Collect the required documents with your loan proposal. See list of documents. 3. Credit Approval

Provide information for credit evaluation to the field investigation officer. 4. Margin Money Payment

Pay off margin money through a pay order or cheque. Sign agreement and provide post dated cheques or sign ECS Mandate. 5. Car Delivery

You can now drive your new car home after completion of above formalities.

Loan Repayment
You can start repaying your loan once you receive the Repayment Schedule with a copy of the Agreement at your correspondence address within 15 days of the loan amount being disbursed for your new car.

SBI CAR LOAN

SBI Car Loans offer low interest rates, easy repayment options, total transparency, no processing charges, finance to include vehicle registration charges, insurance and one time road tax. In case of new cars, loan is provided on any make or model. In case of old cars too, the loan is provided on any make or model, but the vehicle should not be more than 5 years old.

Advantage of SBI car loan:

Excellent service and lower costs. A quick survey of similar schemes available elsewhere and you will find that SBI Car Loans for new and old vehicles offer you :

Lowest interest rates Longer repayment period of up to 84 months. No hidden costs or administrative charges. Finance for one-time road tax, registration fee, insurance premium and accessories No advance EMIs. (Some Banks/companies ask you to pay one or more EMIs at the time of Complete transparency: We levy interest on daily reducing balance method. When you pay one

disbursement of loan, thereby effectively reducing your loan amount.)

installment, the interest is automatically calculated on the reduced balance thereafter. When you pay interest on an annual reducing balance, as charged by many other companies/banks, the interest amount for the coming year is determined on the amount outstanding at the beginning of the year. You continue to pay interest even on the amounts you repay during the year.

Eligibility
To avail an SBI Car Loan, you should be:

Individual between the age of 21-65 years of age. A Permanent employee of State / Central Government, Public Sector Undertaking, Private A Professionals or self-employed individual who is an income tax assessee or A Person engaged in agriculture and allied activities. Net Annual Income Rs. 100,000/- and above.

company or a reputed establishment or

Loan Amount
There is no upper limit for the amount of a car loan. A maximum loan amount of 2.5 times the net annual income can be sanctioned. If married, your spouses income could also be considered provided the spouse becomes a co-borrower in the loan. The loan amount includes finance for onetime road tax, registration and insurance! No ceiling on the loan amount for new cars. Loan amount for used car is subject to a maximum limit of Rs. 15 lacs.

Type of Loan
1. Term Loan 2. Overdraft a) For New vehicles only b) Minimum loan amount: Rs. 3 lacs.

Documents Required
You would need to submit the following documents along with the completed application form if you are an existing SBI account holder:

Statement of Bank account of the borrower for last 12 months. 2 passport size photographs of borrower(s). Signature identification from bankers of borrower(s). A copy of passport /voters ID card/PAN card. Proof of residence. Latest salary-slip showing all deductions I.T. Returns/Form 16: 2 years for salaried employees and 3 years for professional/selfProof of official address for non-salaried individuals.

employed/businessmen duly accepted by the ITO wherever applicable to be submitted.

If you are not an account holder with SBI you would also need to furnish documents that establish your identity and give proof of residence.

Repayment
You enjoy the longest repayment period in the industry with us.

Repayment period: For Salaried: Maximum of 84 months For Self-employed & Professionals: Maximum 60 months Repayment period for used vehicles: Up to 84 months from the date of original purchase of the vehicle (subject to maximum tenure as above).

Prepayment Penalty
Prepayment fee of 2% of the amount of the loan prepaid will be levied subject to certain conditions.

Processing Fee
0.50% of Loan amount and to be paid up-front. Minimum: Rs. 500/Maximum Rs. 10,000 25% of Processing fee will be retained if application is rejected after pre-sanction survey. Now apply your SBI Car Loan

ICICI CAR LOAN

Turn your dream into reality. Own that new car you have always desired, with a little help from us. We offer loans up to 100% of on-road cost on select models, and up to 95% of the ex-showroom price on others. Our interest rates would pleasantly surprise you. Whats more, you can take up to 6 years to repay the loan. ICICI Bank Car Loans help you realize your dream of owning a car of your own. ICICI Car Loans are available for both new cars as well as used cars (up to 10 years old at the time of maturity of the loan term) for a period of up to 7 years for re-payment. The details of a car loan by ICCI Bank India. Loan Eligibility Age

The minimum age for application for an ICICI Car Loan is 21 years at the time of application and the maximum age at the time of maturity of the loan is 60 years for salaried individuals and 65 years for self-employed. For Private or public ltd. Companies the existence limit is a minimum of 2 years. Income

Annual incomes of the loan applicant should be above Rs. 1 lac for salaried individuals, Rs. 60,000 for self employed, Rs. 60, 000 PAT (Profit After Tax) income for Partnership Firms and Private or Public Ltd. Cos. Loan Application Procedure

ICICI Bank Car Loans have been made easier and quicker by reduction the documentations that were mandatory earlier. Now you can receive loans within 2 hours of the submission of all the postsanction documents. ICICI Bank offers various channels for you to apply for a car finance scheme. You can either apply online through their website (link to which is provided below) or email or call ICICI Bank Customer Care to meet an ICICI representative to brief you on the available options or you can also visit your nearest ICICI Bank branch or SMS the request to ICICI Bank. Re-Payments

The tenure of repayment of ICICI Bank Car Loans is available as 1 to up to 7 years. The due dates for monthly payments are 5th and 10th of every month. The repayment channels accepted by ICICI Bank include post-dated cheques, direct debit mandates (for ICICI bank account holders), and ECS (available in select cities). ICICI Bank does not accept cash or credit card payments for car loans repayments. A charge of Rs. 250 is charged per bounced Cheque. Pre-Payment

A full pre-payment of an ICICI Bank Car Loan is acceptable whereas part-pre-payment is not allowed. The charges for pre-payment of your car loan include 5% pre-payment fee on outstanding principal amount along with the applicable service charges. Car Overdraft

It is a facility to convert your existing car into a. ICICI Bank Current account by availing an overdraft of up to 90% of the net assessed value of your car. The interest is charged only on the funds withdrawn and only a minimum of 5% of the utilized amount without any hassles of a fixed EMI. Now apply your ICICI Car Loan.

HDFC CAR LOAN

There may be numerous numbers of car loan rates found from a number of financial companies through online and offline. Online lenders to stand with their competitors have to abide with low rates and low processing fees for your required loan, unlike the dealership financing. You can find these rates on respective bankers sites, or you can also get a customized loan quote to find the best available car loan. But the question here is which one to go for? This might ease you with an answer. HDFC car loan is the cheapest available car loan which is structured as a three year term with at least 20% down and thus it helps you eligible for the lowest rates and keeps your interest costs to the bottom. An extra pay in your down payment will just cost you more savings. Although various banks are providing such structured loans, HDFC car loan is one of the best options. HDFC Bank provides a personal banking in Loans, Credit Cards, Insurance and Investments, Foreign Exchange and Trade services. Moreover HDFC provides a quick and easy car loans with easy documents, EMI options and low interest rates. The main highlights of HDFC car loans are :

Attractive car loan plans and Interest rates 100% finance on your desired car(most of the banks dont offer this service) Covers the widest range of cars and multi-utility vehicles in India Speedy processing within 48 hours. Borrow up to 3 times your annual salary (for salaried professionals) and 6 times your annual Repayment with easy EMIs. Hassle-free documentation Flexible repayment options, ranging from 12 to 84 months

income (for self-employed professionals)

Eligibility and Documentation for HDFC Car Loan is as follows : HDFC has separate eligibility requirements for salaried individuals and for self-employed individuals. They have same minimum age requirement of 21 years of age as every bank follows this

kind of age requirement and as a proof of identity he should present a Passport copy, PAN Card, Voters Id car, driving license (Laminated, Recent and Legible) and as address proof Ration card/Driving license/Voters card/passport copy/telephone bill/ electricity bill/Life insurance policy PAN Card should be submitted to the bank. For salaried individuals the maximum age of the applicant can be 58 years of age and should have a minimum employment of at least 1 year in the current employment. The minimum annual income should be Rs. 1,00,000/- and a permanent telephone number. Bank statement is not mandatory for salaried employees. For self-employed the maximum age of the applicant can be 65 years of age with a minimum of Rs. 60,000/- as his net profit per annum. He also should have a minimum employment of 3 years in his present business. As bank statement he must produce document on the basis of the type of car that he plans to purchase and it is given as, waived for small cars, for mid sized and premium cars if income is greater than Rs. 1.5 lakhs then bank statement requirement can be waived.

KOTAK CAR LOANS

Kotak Mahindra Car loan: Kotak Car Finance offers you flexible schemes to suit your needs, hassle-free documentation and quick processing. To own and drive your car in the quickest possible time, just get in touch with us. Kotak Mahindra Prime Limited (KMPL) offers you The widest range of new and pre-owned cars Attractive car loan interest rates Flexible schemes Speedy loan processing

Kotak Mahindra Prime Limited (KMPL) finances your car dreams with up to 90% of the exshowroom price on your new car. Available from a minimum loan amount of Rs. 75,000 and flexible repayment tenures ranging from 12 to 60 months, you can avail of these loans on most passenger cars and multi-utility vehicles. You can choose from four schemes designed to meet your needs: 1. 2. 3. 4. 5. Margin Money Scheme Step Up Scheme Low EMI, Balloon Scheme Advance EMI Scheme Special Schemes

Eligibility :

Salaried individuals between 21 to 58 years (at the end of the tenure) Self-employed individuals between 21 to 65 years (at the end of the tenure) Partnership Firms Public & Private Ltd. companies Hindu Undivided Families and Trusts

Documents :

Proof of Identity:- Passport copy, PAN Card, Voters Id car, driving license( Laminated, Recent, Income Proof: Latest salary slip with Form 16. Address Proof: Ration card/Driving license/Voters card/passport copy/telephone bill/ electricity Salary Bank Statement

Legible)

bill/Life insurance policy PAN Card

BANK OF BARODA CAR LOAN

Bank of Baroda Car Loan: Compare and Choose Best Car loan rates With Bank of Baroda. Know About BOB Car loan Documents, Eligibility, Benefits and Features and Apply Online. The Car Loans from Bank of Baroda are designed to finance the car that suits your need and matches to your status & taste. Bank of Baroda also presents a unique add on facility for installation of CNG / LPG gas-kit in new/old (not more than 3 years) four wheeler. Save money. Save earth. Convert to alternative fuel today and bank on us for your financial requirements. Key Benefits

Loans available up to Rs 100 Lacs for any car make/model (Inclusive of Gas-Kit). Loans can be availed for new and second-hand vehicles (Not more than 3 years old). Repayment period as long as 7 years. Low car loan interest rates. Low processing fee. Zero prepayment charges Concession of 0.5 % in rate of interest to those who offer minimum 50% liquid security as

collateral. Terms & Conditions To qualify as an applicant for this loan, you need to be an employee or a director of a public limited company, businessman, professional, proprietor / partner in a firm or a Government employee and HNIs / Corporates.. The maximum loan amount is Rs. 100 Lakhs, or twice of your gross annual income if you are salaried, and thrice of it (average of last 2 years gross annual income) if you are a businessman, whichever is lower. Maximum loans up to Rs 0.25 lac available for installation of CNG/LPG Gas-Kit in new/old (not more than 5 years) four-wheeler, if taken separately. Repayment

New Vehicles : 84 months. Second hand vehicles : 36 months. CNG/LPG Gas-Kit : 24 months. (If loan sanctioned is only for Gas-Kit) Margin : For loans up to Rs. 15 lacs: New Vehicles : 15% on road price of car For loans over Rs. 15 lacs: New Vehicles : 20%on road price of car Age : Minimum 21 years Maximum present age + repayment period should not exceed retirement age in case of salaried person and 65 years in case of others. Additional concession of 0.25% in interest rate to existing Home Loan borrowers having good track record of repayment. Processing Fees Car Loan Loan up to Rs.15 lacs 0.75% (Max. Rs.10,000/-) Over Rs.15 lacs 0.50% (Min. Rs.10,000/-, No maximum limit)

Top Ten Tips to Getting the Right Car Loan for You

Do your own research and shop around for the best deal for you. Seek advice from banks,

credit unions and loan institutions. Also, search online for car loans too. Some of the best rates are available, it can save you lots of time and searching for them is absolutely free.

Before anything, check your credit rating. If you have a credit score <600 you may have

to finance your car purchase using a bad credit car loan. These loans will have higher interest rates but if you keep up your repayments you will increase your credit rating. Eventually youll be able to refinance your car loan at a better interest rate.

Dont just settle for the car loan rate from the manufacturer or the dealer you purchase the

car from. They can be extortionate. Even if they do try and attract you with 0% interest rate advertisements, only people with perfect credit ratings actually qualify for these deals.

Calculate your monthly income minus all your expenditures to determine just how much

you can afford on a monthly basis. Stick to this budget or youll find the car loan repayments tough.

Spend time researching just how much your dream car costs. Try finding price

comparisons from local dealers, magazines and online. There are bargains out there!

Make sure you have enough money for the down payment. Loans have varying

requirements for this always check the small print!

Try to find an auto loan with an affordable monthly repayment that you can pay back in

as short a timescale as possible. If you can pay back your car loan within three years instead of five, you will save yourself big bucks in the long run.

Once you have found the best deal for you, get pre-approved for this auto loan.

Be strong when you visit the dealer. Know that they will try and persuade you to take

another financing option but just say no. Stick to the car loan you found, the best loan for you.

Now you understand what you can afford, is that dream car within your reach? If so

bonus! If the car loan repayments do not fit within your budget seriously reconsider and purchase a car you know you can afford.

Policy Issues Related to Auto-financing

1. All private sector banks have fixed rate of interests for the auto loans.
2. SBI, SBOP fluctuating rates and charges will be extra for fixed rate of interests to the customers.

3. In case of secured loans, banks have hypothecation on the RC of the vehicle.

4. If customers want to make pre-mature payment for the loan, banks charge a penalty in monetary term for that. a. Different Banks charges Different Rates of Penalties. b. Normally, Banks charges 2% to 4% of the Outstanding Principal Amount. c. You cannot prepay Principal Amount before 6 months. 5. Equitable Monthly Installments (EMIs) a. Private Banks provide fixed EMIs, i.e., same amount of EMI for the whole tenure. b. You can deposit more amount of money in case of Public Sector Banks. The extra amount will be deducted from the Principal Amount and the interest will be charged on the Outstanding Principal. 6. Dealers Rate Dip a. 0.5% to 1% Rate Dip in Private Banks. b. No Rate Dip is being provided by the Public Sector Banks. 7. Dealers Payout HDFC Tata Capital ICICI Magma SBI, SBOP 1.5% of the Loan Amount 2% above 50 lacs 2.5% above 75 lacs 2% of the Loan Amount 2% of the Loan Amount 3% of the Loan Amount (No Slab) 1% of the Loan Amount

Mahindra Finance and Indusland Bank

3000 / file

LATEST RATES OF INTEREST OF VARIOUS BANKS

Industrial Credit and Investment 13% / Annum Reducing Corporation of India (ICICI) Housing Development Finance Corporation 13.25% / Annum Reducing (HDFC) Magma Fincorp Ltd* State Bank of India (SBI) State Bank of Patiala (SBOP) Mahindra Finance* 15.75% / Annum Reducing (If PDC Case) 16.75% / Annum Reducing (If no PDC) 12.00% / Annum Reducing 12.50% / Annum Reducing 16% / Annum Reducing

* Magma Fincorp and Mahindra Finance are NBFCs (Non Banking Financial Corporations)

Chapter 3

Customers and Auto-financing

TYPES OF CUSTOMERS

Self Employed

Societies
TYPES OF CUSTOMERS

Salaried

Pvt Ltd Companies

Partnership Firms

DOCUMENTS REQUIRED : Self-Employed

2 Years Return 2 Photographs Ration Card 6 Month Banking Ownership proof (Electricity Bill) Post-Dated Cheques (For Bank)

Government Salaried
Form 16 (2 years) 2 Photographs Ration Card 6 Month Banking Ownership proof (Electricity Bill) Post-Dated Cheques (For Bank) Latest Salary Slip

Private Salaried
Form 16 A 2 Photographs Ration Card 6 Month Banking Ownership proof (Electricity Bill) Post-Dated Cheques (For Bank) Latest Salary Slip

Partnership Firms
Partnership deed Partners Authority Letter Firms PAN Card Firms Banking Firms 2 Years Financials Firms Residence Proof Firms Cheques Co-applicant 2 Photographs Identity Proof Residence Proof

Private Limited Companies Societies

Memorandum of Association Articles of Association Common Seal Bank Statement Companys 2 Years Financials Company PAN Card Companys Residence Proof Companys Cheque Directors Authority Letter Co-applicant (1 of the Director) 2 Photographs Identity Proof Residence Proof 2 Years Financials Banking PAN Card Residence Proof Cheques By-Laws

Co-applicant (1 of the Member)

On The Spot General Questionnaire for Customers

1. Name of the person on whose name finance will be done. ________________________________________________ 2. Profession of the person Self Employed Partnership Firm Private Company Salaried

3. Documents available with him/her. Resi. Proof D.O.B. Proof Banking PDCs Annual Return Photographs

4. Preference out of Rates of Interest according to the profile of customers.

13%

13.25%

15.75%

16.75%

12.00%

12.50%

16%

5. Preference of Bank. ICICI HDFC MAGMA SBI SBOP Other

6. Whether PDCs are available? YES NO

7. Whether to do F.I. or not? YES NO

8. Date of Collection of Documents. After:1 day 2 day 3 day

9. Date of Delivery of Vehicle 1 day 2 day 3 day

PROCESS OF SETTLING NON-INCOME PROOF(NIP) CASE

Collection of Documents

Checking of CIBIL

Field Investigation (F.I.)

Collecting F.I. Report

If Negative

If Positive

Return of Papers

/ Negotiation with Bank

Send Papers to Bank

Approval from Bank

Delivery Order from Bank

PDDs (Post Delivery Documents) from Bank

Chapter 4 CREDIT INFORMATION BUREAU (INDIA) LIMITED

Current Indian Scenario

Rapid industrialization. An expanding economy. Growing aspirations. Increased incomes. Improved lifestyles. Availability of high quality products and services. An expanding market. These factors have created an atmosphere conducive to rapid credit off take. While the demand for credit has risen exponentially, there has been a parallel increase in competition, and credit delinquencies. In such an environment, risk assessment is of critical importance. Not only, in deciding on what business to book and the speed at which a credit grantor does so, but also in determining the appropriate pricing. Comprehensive credit information, which provides details pertaining to credit facilities already availed of by a borrower as well as his payment track record, has become the need of the hour.

CIBIL The Answer

The answer took shape when the Credit Information Bureau (India) Limited (CIBIL) was incorporated in 2000. CIBILs aim is to fulfill the need of credit granting institutions for comprehensive credit information by collecting, collating and disseminating credit information pertaining to both commercial and consumer borrowers, to a closed user group of Members. Banks, Financial Institutions, Non Banking Financial Companies, Housing Finance Companies and Credit Card Companies use CIBILs services. Data sharing is based on the Principle of Reciprocity, which means that only Members who have submitted all their credit data, may access Credit Information Reports from CIBIL. The relationship between CIBIL and its Members is that of close interdependence.

Integral Solution
The establishment of CIBIL is an effort made by the Government of India and the Reserve Bank of India to improve the functionality and stability of the Indian financial system by containing NPAs while improving credit grantors portfolio quality. CIBIL provides a vital service, which allows its Members to make informed, objective and faster credit decisions.

Our Mission and Vision

To Catalyze growth of Credit in India through: 1. 2. 3. SOLUTIONS that enable well informed Credit decisions TECHNOLOGY that enables superior information availability PEOPLE that provide cutting edge solutions and services

We take great pride in having pioneered the concept of credit information sharing in India, which enables the credit grantor to take prudent and information backed credit decisions. Being pioneers in this field, we have gained knowledge, experience and expertise to offer advanced data and technology backed solutions that provide superior insights and information to our customers. Our range of comprehensive solutions, developed carefully over the years, help our customers make intelligent decisions at every stage of their customer lifecycle. Our people strive to offer these cutting edge solutions and services to all customers, with our aspiration to remain their first choice.

Shareholders
CIBIL was promoted by the State Bank of India (SBI), Housing Development Finance Corporation Limited (HDFC), Dun & Bradstreet Information Services India Private Limited (D&B) and TransUnion International Inc. (TransUnion). The shareholding pattern was as follows: State Bank of India (SBI) Housing Development Finance Corporation Limited (HDFC) Dun & Bradstreet Information Services India Private Limited (D&B) TransUnion 40% 40% 10% 10%

Current Shareholding The shareholding pattern has now been diversified to include the following entities representing varied categories of credit grantors : -

CONSUMER BUREAU
CIBILs Consumer Bureau banks upon its vast and dynamic information repository of the India market to provide its members with comprehensive risk management tools pertaining to individual borrowers. The objective is to minimize defaults and maximize credit penetration and portfolio quality. The software for the Consumer Credit Bureau is developed and licensed by TransUnion, one of the largest consumer credit bureaus in the world and CIBILs equity and technical partner. CIBILs risk management offerings assist and empower its members to make objective decisions at every stage of the customer lifecycle- Acquisition, Portfolio management, Collections etc. Consumer Credit Information Report (CIR) This is CIBILs core offering based on the vast information database pertaining to individual borrowers. Consumer Credit Information Report (CIR) is a vital tool used by credit grantors at the time of new customer acquisitions. CIRs provide factual information on credit histories of borrowers enabling institutions to make objective lending decisions. With CIBIL Consumer CIRs credit grantors are equipped to identify risk areas, disburse credit faster and with greater efficiency and grow business profitability. Portfolio Review Report Portfolio Review Report is an extremely effective tool for credit grantors to review the risk associated with their existing portfolio of customers. The report provides the credit grantor with a comprehensive view of their borrowers credit relationships across multiple lenders. Lenders can enhance their portfolio returns through effective risk monitoring and management and through identification of loyal relationships - thus turning their customer base into profit engines. CIBIL TransUnion Score The CIBIL TransUnion Score is Indias first generic score and has become the most trusted indicator for prudent decision making by credit grantors. With the CIBIL TransUnion Score, the credit grantor can effectively predict the likelihood of an applicant becoming more than 91 days delinquent on one or more trade-lines over the subsequent 12 months.

CIBIL TransUnion Personal Loan Score The CIBIL TransUnion Personal Loan Score is the first and only score for the Indian market to predict the likelihood of an applicant or customer becoming more than 91 days delinquent on a personal or consumer loan over the next 12 months. This score is the result of collaboration between Credit Information Bureau (India) Limited (CIBIL) and TransUnion, a trusted global leader in analytic and decision services. Bureau Credit Characteristics (BCC) Bureau Credit Characteristics is a list of predefined characteristics that summarize various aspects of a customers credit information. The set comprises 258 credit characteristics which can be used for model development, data analysis, customer profiling, migration analysis and a variety of other account management analyses. CIBIL Market Insights These reports are designed to provide an overview of the credit market basis geographic, demographic and behavioral borrowing trends. By profiling their customer base across various dimensions, benchmarking their performance with the market and identifying their strengths and weaknesses organizations can take proactive corrective decisions and enhance business growth. CIBIL Locate Plus One of the challenges lenders may face is keeping updated and accurate contact details on all of their customers. CIBIL Locate Plus leverages CIBILs vast and comprehensive information repository to provide you with comprehensive contact information on your customers in a faster and more cost effective fashion. We at CIBIL, being your partners in risk management, constantly endeavor to bring new solutions to cater to the market need and customize existing offerings to suit your requirements.

COMMERCIAL BUREAU
CIBIL's Commercial Bureau banks on a vast information database of credit histories of commercial borrowers. CIBIL's Commercial Credit Bureau benefits the industry and the economy overall, by

helping minimize instances of concurrent and serial defaults through providing credit information pertaining to non-individual borrowers such as public limited companies, private limited companies, partnership firms' proprietorships, and others. CIBIL maintains a central database of information as received from its Members. CIBIL then collates and disseminates this information on demand to Members, in the form of Commercial Credit Information Reports (CIR) to assist them in their loan appraisal process. In its initiative to improve Credit flow to SMEs, CIBIL is being supported under SME Financing and Development Project implemented by Project Management Division, SIDBI, with an aim to facilitate flow of credit to the under penetrated SME sector while increasing banks profitability and market penetration (via sound credit decisions) and reducing non-performing loans (via credit information tools). The software for the Commercial Credit Bureau is developed and licensed by Dun & Bradstreet, a world leader in commercial credit information and one of CIBIL's equity and technical partners. Commercial Credit Information Report (CIR) The information in the Commercial Credit Information Report broadly covers information about the borrowing entity and the credit/ loan account details like:

Borrower information
Name and Address D-U-N-S Number Other Identification numbers; e.g. PAN, Registration No Legal constitution Relationship details; e.g. major shareholders, directors and their addresses. Number of inquiries made on the borrower

Account Details
Number of credit facilities Credit type Loan amount Outstanding amount Asset classification Willful defaulter and suit-filed status Guarantor details

Suit-Filed cases

The information contained in this section relates to the suit filed accounts against defaulters of various banks, all India notified Financial Institutions (FIs) and State Financial Corporations (SFCs). The contents of this Information have been provided by various banks, FIs and SFCs, pursuant to the directions of the Reserve Bank of India dated the 4th of June, 2002. In the event any person seeking clarifications with respect to the Information or being aggrieved in any manner, such person may directly contact the bank or FI or SFC concerned for clarifications and/or actions.

CAUTION PROFILE CUSTOMERS

S. NO.
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17.

PROFILE
Airlines Industry BPO/Software Personnel only IT Personnel Cable TV Operators Chit Funds/Nidhi Companies/Money Lenders Contractual Workers (Working Inside/Outside India) Drivers (Except Government Employee) / Conductors / Sweepers / Peons / Mechanics / Electricians Film Industry Professionals (including actors, directors, producers and distributors) Finance Companies / NBFC / Financial services companies (except A and rated companies) Food Chains Insurance Agents (Except Permanent Employee of the company) other than Government Insurance Companies Manpower Consultants Security Services Agency Employees STD / Xerox Booth Operators Stock Brokers Video Parlor Operators Wine Merchants Agents / Builders / Colonizers / Developers / Property Dealer involved in Real Estate, Railways, etc

NEGATIVE A PROFILE CUSTOMERS

S. NO.
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.

PROFILE
Astrologers Auto Service Centre (Two wheelers, Four-wheelers and >4 wheelers) except for manufacturer authorized service centers. Bar Owner (excluding those running only bar) BIFR Companies DSAs and all other distribution channels like CPA outfits Employees of DSAs and all other distribution channels like CPA outfits Exporters of Gems and Jewellery Lawyer / Advocate (Except High Court and Supreme Court Lawyer) MBBS / BDS / BAMS / BHMS Doctors Plantation Companies (Except Tea Plantation Companies) Auto Spare Parts Dealer (Two wheelers, Four-wheelers and >4 wheelers) except for manufacturer authorized service centers. Livestock Transporter (without license)

NEGATIVE B PROFILE CUSTOMERS

S.NO.
1.

PROFILE
All journalists would be treated as negative profile. Those associated with big media houses like Times, NDTV, etc will be normal profiles. For these big houses only correspondents are negative profile. Ambulance to Nursing Homes / Hospitals Arms Dealer Bar Owner (running only bar) Collection Agent Companies which have defaulted to Banks / Institutions / Stock Exchange / Registrar of Companies HUFs, Trusts (unregistered), Credit Societies Massage Parlor Owners People involved n selling / purchasing of used / repossessed vehicles Person involved in MLM / Chain / Pyramid Marketing (except those with big players like Amway, Modicare etc and having fixed income). Policemen, Intelligence Bureau Personnel, Home-guard all the following a) b) Servicing Personnel Retired Personnel

2. 3. 4. 5. 6. 7. 8. 9. 10. 11.

12. 13. 14. 15.

c) Family Member Politicians Race Jockey / Gambler RTO / Octroi Agents Servicing Personnel of Paramilitary Forces / Army / Military / Air Force /

16.

Reserve Police Force (BSF / CISF / CRPF etc) Church Father, Pandit and Moulbi

BIBLIOGRAPHY
1. www.nissan.in 2. www.nissan-global.com 3. www.cibil.com

4. www.rbi.org.in/scripts 5. www.marketpressrelease.com
6. www.bankbazaar.com/car-loan.html

7. www.deal4loans.com/car-loans.php 8. www.carloan.net.in 9. http://auto.indiamart.com/cars 10. http://business.gov.in/business_financing 11. www.magma.co.in 12. www.financemasala.com 13. www.info2india.com/finance 14. http://business.mapsofindia.com/finance