SUMMER INTERNSHIP PROJECT REPORT

A study of factors affecting selection of financial institution for consumer

durable loan – A case study on Emi-Card offered by Bajaj Finserv

Prepared by –
Shirish Bagal
(Enrolment Number: FN 70 )
MBA Batch 2019-21

Under the guidance of -

Ms. Sumedha Tuteja

ACADEMIC YEAR
2020-21

Submitted To
Shree Chanakya Education Society’s
Indira Institute of Management, Pune

Affiliated To
An Autonomous Institute affiliated to
Project Certificate
 Declaration

I undersigned, a student of Indira Institute of Management, Pune MBA 3rd semester, declare that
summer internship project titled “A study of factors affecting selection of financial institution for
consumer durable loan – A case study on Emi-Card offered by Bajaj Finserv” is a result of my
own work and my indebtedness to other work publications, references, if any, have been duly
acknowledged. If I am are found guilty of copying any other report or published information and
showing as my/our original work, I understand that I shall be liable and punishable by Institute
or University, which may include ‘Fail’ in examination, ‘Repeat study & re-submission of the
report or any other punishment that the Institute or University may decide.

Name of Student – Shirish Bagal

Roll Number – FN-70
Signature -
 Index
Sr. No. Particulars Page No.
I. Executive Summary of the Project 8
1. Organization and Project Title 8
2. Importance 8
3. Objectives 8
4. Methodology Adopted 9
5. Learnings 9
6. Utility to the Organization 9
II. Chapter I: Introduction and Rationale of the study 10
1.1 Introduction to the title 10
1.1.1 a. What is a consumer durable loan? 10
1.1.2 b. Interest Rates and Other Charges 10
1.2 Significance of the Study 11
III. Chapter II: Industry/Sector Profile 12
2.1 Overview of the Industry/Sector 12
2.2 Contribution of Sector towards GDP 12
2.3 Major Players 12
2.4 Regulatory Framework 15
IV. Chapter III: Company Overview 16
3.1 History 16
3.2 Mission 17
3.3 Vision 17
3.4 Management 17
3.5 Registered Address 17
3.6 Major Customers 18
3.7 Financial Performance 18
3.8 Achievements 18
3.9 Organogram 20
3.10 Organizational Hierarchy 20
3.11 Products 20
3.12 Business Segment 22
V. Chapter IV: Review of Literature 23
VI Chapter V: Application of Management Model 25
VIII. Chapter VI: Objectives and Scope of the Project 26
6.1 Objective 26
6.2 Scope of Project 26

VIII. Chapter VII: Research Methodology 27

7.1 Rationale of the study 27
7.2 Statement of the problem 27
7.3 Significance of the problem 27
7.4 Research Objectives 27
7.5 Research Design 28
7.6 Data Sources 28
7.6.1 a. Primary Sources 28
7.6.2 b. Secondary Sources 28
7.7 Sampling Design 28
7.7.1 Sampling Size 28
7.7.2 Sampling Method 28
7.7.3 Sampling Unit 28
7.8 Data Collection Instrument 28
7.9 Limitations of the Project 28
IX. Chapter VIII: Data Analysis 30
8.1 Data Analysis, Tabular Representation and Charts 30
IX. Chapter IX: Findings 39
X. Chapter X: Conclusions and Suggestions 40
XI. Chapter XI: Annexure 41
XII. Chapter XII: Bibliography 43
 List Of Tables

SR No Name Page No
1 Management Of Bajaj 17
Finserv

6
 List Of Charts

Sr No Name Page No
1 Organogram Of Bajaj Finserv 20
2 Organizational Hierarchy 21
3 Factors influencing selection of financial 30
institution
4 Factors influencing selection of financial 31
institution
5 Satisfaction towards EMI Card 32
6 Rating On EMI Card 33
7 Gender 34
8 Age 35
9 Gross Income Level 36
10 Educational Level 37
11 Sector Of Employment 38

7
 Executive Summary

1. Organization –
Bajaj Finserv Limited.
Project Title –
“A study of factors affecting selection of financial institution for consumer durable loan
– A case study on Emi-Card offered by Bajaj Finserv”

2. Importance of the Project –

Customer satisfaction surveys can become important tools for improving company business
and ensuring that the company’s customers are happy and loyal. Through a proper approach
and its analysis, the company can identify what things are working to its advantage and what
aspects they would need to improve upon, to keep themselves ahead of its competitors, by
improvising on the factors they need to improve.

3. Objectives of the Project –

Primary Objective –
• To identify the factors influencing the decision for consumer durable loan.

• To examine the relationship among the factors influencing these decisions.

• To evaluate perception of Bajaj Finserv Emi-card among respondents.

Secondary Objectives –
• To study the demographic profile of the respondents, which gives an indication of the
composition of the population who seeks loan.

8
4. Methodology Adopted –
A sample size of 100 respondents from Pune, who are the customers of Bajaj FinServ were
taken. Through a structured questionnaire, their survey and feedback were taken regarding
the services of the company w.r.t. the factors involved in the Consumer Durables’ Short-
Term Loan process.

5. Learnings from the Project –

• Soft skills improved considerably, on a personal level.

• Responsibility of tasks allotted daily was fulfilled.

6. Utility to the Organization –

Through the results of this survey, the company will be able to identify their weaknesses and
shortcomings regarding its short-term loan procedure. They could hence take measures to
correct or improve them, to not only retain their customers but also to gain new customers.

9
 CHAPTER I: Introduction And Rationale Of Study

1.1 Introduction to the title:

In the context of global economies where consumers have multiple options, the factors affecting
their decisions to take durable loans are in fact difficult to apprehend .Analyzing and
understanding the consumer behavior is the cornerstone of success in marketing .It gives the
right orientation for product development and positioning. Financial institutions are increasingly
trying to incentivize the customers by making purchase decisions more attractive.

1.1.1 : What is a consumer durable Loan?

A consumer durable loan is a finance option for the purchase of household items like washing
machines, refrigerators, air-conditioner, LED TVs, microwaves, furniture, clothes or grocery.
You can obtain a consumer durable loan from financiers like Bajaj Finserv to fund all your
purchases, and payback in flexible tenors as per your convenience. What’s more, you can avail
them easily on zero or low-interest rates and get financing for up to 100% of your purchases.

1.1.2 : Interest rates and other charges -

Interest rates on consumer durable loans are lower than those on personal loans or credit cards.
Bajaj Finserv offers No Cost EMIs (with zero interest charge) on selected products on the EMI
Network. Interest rates may differ from one lender to another, and you should compare them
before availing the loan. Few lenders may also charge a nominal processing fee on your loan
amount.

10
1.2 Significance of the study:

Bajaj Finserv offers various types of loans. Company offers Durable loan, Personal loan, Auto
loan, Business loan etc. Durable product means that product which is used in our day to day life.
Bajaj Finserv provides durables finance over 115 cities. Competition always provides benefit to
the customer. All of competitors have a large network of branches across the country. So, in
order to lead the market company would have to know the market better. This study also focuses
upon various variables which influence the customers to opt for consumer durables loan

11
 Chapter II: Industry/Sector Profile

2.1 Overview of the industry/ sector: -

The Consumer Durable industry consists of durable goods and appliances for domestic use such
as televisions, refrigerators, air conditioners and washing machines. Instruments such as kitchen
appliances (microwave ovens, grinders etc.) are also included in this category. This industry
includes all those goods which are durable i.e. products whose life expectancy is at least 3 years.
These products are hard goods that cannot be used up at once. According to recent industry
reports, the steadily growing market for consumer durables is estimated at Rs. 300 billion.
Segmentation of Consumer Durables Industry: The consumer durables industry can be broadly
classified into 2 segments: Consumer Electronics and Consumer Appliances. Consumer
Appliances can be further categorized into Brown Goods and White Goods

2.2 Contribution of the sector towards GDP: -

In FY 2019 at 7.0 % compared to 7.2 %.

In FY2018, Gross fixed capital information (GFCF) Provided a pleasant surprise, with the share
of GFCF to GDP growing to

32.3 % in FY 2019 (second advance estimates) versus 31.4 % in FY 2018 (First revised
estimates)

2.3 Major players: -

1. Bajaj Finance Ltd.

Bajaj Finance Ltd is a deposit-taking Non-Banking Financial Company (NBFC-D) registered
with the Reserve Bank of India (RBI). It is a subsidiary of Bajaj Finserv Ltd. and is engaged
in the business of lending. It is the Largest NBFC Finance Companies in India based on
Turnover.
Revenue: Rs 22,413 Cr.
Profit Before Tax (PBT): 4,937 Cr.
Market Cap: 249,069 Cr. Return on Equity (ROE): 21.98 %

12
2. Shriram Transport Finance Company Ltd.
Shriram Transport Finance Company Limited (STFC) is the flagship company of Shriram
Group – a diversified group with interests in financial services viz. Commercial vehicle
finance, Consumer Finance, life, and general insurance, stockbroking, chit funds and
distribution of financial products such as life and general insurance products and units of
mutual funds.
Revenue: Rs 16,127 Cr.
Profit Before Tax (PBT): 2,793 Cr.
Market Cap: 26,182 Cr.
Return on Equity (ROE): 17.37 %

3. Aditya Birla Capital Ltd.

Aditya Birla Capital Limited (ABCL) is the holding company for the financial services
businesses of the Aditya Birla Group. Powered by more than 20,000 employees, the
subsidiaries of ABCL have a nationwide reach with 850+ branches and more than 2,00,000
agents / channel partners and several bank partners.
Revenue: Rs 16,131 Cr
Profit Before Tax (PBT): 998 Cr.
Market Cap: 22,022 Cr.
Return on Equity (ROE): 9.65 %

4. L&T Finance Holdings

L&T Finance Holdings Limited (LTFH) is a subsidiary of Larsen & Toubro Limited. The
Company is registered with the Reserve Bank of India (RBI) as a Systemically Important
Non-Deposit Accepting Core Investment Company (NBFC-CIC).
Revenue: Rs 13,873 Cr.
Profit Before Tax (PBT): 1,856 Cr.
Market Cap: 22,996 Cr.
Return on Equity (ROE): 17.96 %

13
5. Mahindra and Mahindra Financial Services Ltd.
Mahindra Finance began as a captive financier of Mahindra Utility Vehicles in the early 90s.
From Mahindra UVs to tractors to non-Mahindra products, the company has diversified into
financial services. It is one of the best in the list of top finance companies in India.
The product portfolio consists of vehicle finance, which includes financing of passenger
vehicles, utility vehicles, tractors, commercial vehicles, construction equipment; and pre-
owned vehicles and SME finance, which includes project finance, equipment finance,
working capital finance and bill discounting services to SMEs. The company also undertakes
mutual fund distribution, fixed deposits and personal loans tailor-made to suit its unique
customer set.
Revenue: Rs 11,307 Cr.
Profit Before Tax (PBT): 1,482 Cr.
Market Cap: 19,895 Cr.
Return on Equity (ROE): 17.30 %

6. Edelweiss Financial Services Ltd.

Edelweiss is one of India’s leading financial services conglomerates, offering a robust
platform, to a diversified client base across domestic and global geographies. This is in the
sixth position in the list of Top NBFC finance companies in India based on turnover.
Revenue: Rs 10,650 Cr.
Profit Before Tax (PBT): 674 Cr.
Market Cap: 10,454 Cr.
Return on Equity (ROE): 13.67 %

14
2.4 Regulatory framework: -

The Payment and Settlement Systems Act, 2007 is the nodal legislation for the regulation of
payment systems in India and empowers the RBI to regulate and supervise these systems.

The 2009 guidelines permitted the non-bank entities to issue semi-closed instruments for the first
time. Besides the Act, the RBI issued a Master Circular in July 2016 setting out the policy
framework for issuance and operation of pre-paid payment instruments (PPIs) as well as the
regulation of the payment systems providers/operators.

Under the PSS Act, 2007 prepaid payment instruments that can be issued in the country are
classified under three categories viz. (i) Closed system payment instruments (ii) Semi-closed
system payment instruments and (iii) Open system payment instruments

15
 Chapter III: Company Overview

3.1 : Historical Background of the Organization –

Bajaj Finserv was formed in April 2007 which is situated in 4TH Floor, Bajaj Finserv Corporate
Office, Pune-Ahmednagar Road Viman Nagar, Pune 411014, Maharashtra. As a result of its
demerger from Bajaj Auto Limited to act as a pure play financial services business. The process
of demerger was completed in Feb 2008. This demerger was not only to unlock values in the
high growth business areas of Auto, Insurance, Finance sectors and Wind Power but also to run
independently these core businesses and to strengthen the competencies. The wind power
project, the stakes in the life and general insurance companies and consumer finance along with
their respective assets and liabilities got vested in Bajaj Finserv Limited.

In addition to that cash and cash equivalent of INR 8,000 million (then market value) was also
transferred to the company. The demerger has enabled investors to hold separate focused stocks
and facilitate transparent benchmarking of the companies to their peers in their respective
industries. The constantly changing demographics and dynamics of the Indian economy, has led
to the creation of various needs of the average Indian customer. The Indian customer now
demands proper avenues of channelizing their savings, financial protection and is also desirous
of spending more on valuable goods and services. All these wants need to be met by dynamic
players in the financial services space. Bajaj Finserv was formed specifically to cater to these
needs. The company was also formed to touch and improve the lives of a growing number of
people in the country, and in doing so, deliver superior corporate values to its shareholders.

The operating companies carry with them the Bajaj brand, which carries with it decades of
commitment to business ethics, integrity and highest standards of fiduciary responsibility.

16
3.2 : Mission –
Bajaj Finserv aims to be the most useful, reliable and efficient provider of Financial Services.

3.3 : Vision –
Bajaj Finserv has the vision to become a full-fledged financial services company and be the
financial partner to the Indian consumer and help him across his financial needs, whether for
finance, for investment management, for protection or for post-retirement support, throughout his
lifecycle.

3.4 : Management –
Name Designation

Sanjiv Bajaj Chairman

Gita Piramal Director

D J Balaji Rao Director

Madhur Bajaj Director

Rajiv Bajaj Director

Rajeev Jain Managing Director

Nanoo Pamnani Vice Chairman

3.5 : Registered Address –

6th Floor, Bajaj Finserv Corporate Office, Off Pune-Ahmednagar Road, Viman Nagar, Pune –
411014

17
3.6 : Major Customers –
All those customers who purchase products on EMI service from Bajaj Finserv are the
company’s major customers.

3.7 : Financial Performance –

The key statistics for the past 3 years are as given –
• 2018 –
1. Total Revenue collected was 12756.84 cr.
2. Profit Before Tax (PBT) was 3843.44 cr.
3. Profit After Tax (PAT) was 2,496.37 cr.
• 2019 –
1. Total Revenue collected was 18501.76 cr.
2. Profit Before Tax (PBT) was 6179.16 cr.
3. Profit After Tax (PAT) was 3994.99 cr.
• 2020 –
1. Net Profit for Q1 dropped by a huge margin to 964 cr.

3.8 : Achievements –
• Top 15 best Workplaces in BFSI, 2018: Bajaj Finserv ranked amongst the top 15 BFSI
companies to work for in India. The ranking was conferred by “Great Places to Work”
(GPTW), the gold standard in ranking the world’s best workplaces, at a special event
hosted in Mumbai. GPTW conducts this survey every year amongst more than 500
companies across India.
• September 2018: ‘Business Leader of The Year’ at the Economic Times Awards: to
Sanjiv Bajaj, Vice-Chairman, BFL.
• December 2018: ‘Best CEO – Private Sector’ To Rajeev Jain at The Forbes India
Leadership Awards 2018.
• December 2018: ‘NBFC Wealth Creator of The Year’ By Money Control: To Bajaj
Finance Ltd.

18
• February 2019: ‘Outstanding Company of The Year’ At CNBC Indian Business Leader
Awards to Bajaj Finance Ltd.
• Mint Corporate Strategy Award 2018: Using a methodology developed by consulting
firm BCG Mint evaluated the performance of listed and unlisted companies above Rs
2000 Cr in revenue and selected companies that were clear leaders. These firms were
chosen from among various sectors classified into 4 strategic environments. The strategic
environments are defined by varying levels of market uncertainty, malleability and
harshness.

19
 3.9: Organogram –

DEPARTMENTS

Administration Collections Marketing Products

Credit Team Human Operations Sales

Resources

3.10 : Organization Hierarchy -

A key issue in accomplishing the goals identified in the planning process is structuring the work
of the organization. Organizations are a group of people, with ideas and resources working
toward common goals. The purpose of the organizing function is to make the best use of the
organization's resources to achieve organizational goals. Organizational Structure is the formal
decisions making framework by which job tasks are divided, grouped and coordinated.
Formalization is an important aspect of the structure. It is the extent to which the unit of
organization is explicitly defined, and its policies, procedures and goals are clearly stated. It is
the official organizational structure conceived and built by top management. The formal
organization can be seen and represented in chart form. An organization chart displays the
organizational structure and shows job titles, lines of authority and relationship between
departments. Organizational Structure allows the expressed allocation of responsibilities for
different functions and processes to different entities. Ordinary description of such entities is a
branch site, department, workgroup and a single group of people.

20
21
3.11 : Products –

• Electronics
• Home and Kitchen appliances
• Smartphone and other gadgets
• Laptops
• Furniture
• Car Tires
• Inverters
• Clothes
• Car batteries
• Fitness Equipment
• Shoes
• Sportswear

3.12 : Business Segment –

Revenue: Rs 16,127 Cr.
Profit Before Tax (PBT): 2,793 Cr.
Market Cap: 26,182 Cr.
Return on Equity (ROE): 17.37 %

22
 Chapter IV: Review of Literature

Research Project – Literature review

1) Yashwant Reddy (2008): - in his study aimed to influence and motivate customers to buy
products more on the EMI method of payment. Along with that, he intended to find the impact of
EMI documentation on customers of Bajaj Electronics and to know the customer perception on
the EMI purchasing method.

2) Pragna Kanzariya (2014): - intended to realise the customer perception towards short term
loans and advances at the Commercial Co-operative Bank Ltd. She also aimed to gain insight on
the current market trend as well as the latest interest rates and different schemes related to short
term financing.

3) Keyur Upadhyay(2019):- had the main objective of studying customers’ perception towards
using gold loan as a method of short-term financing. It also studied the customer awareness
about different sources of short-term finance, and the impact of factors like education and culture
on selection of short-term financing as an option.

4) Mayur Gurav (April 2019):- found out different types of loans taken by customers from
bank. In addition to it also studied to identify factors whether any procedure problem was faced
by the customer in taking the loan; and analysed and evaluated the customer satisfaction
regarding various loan related services offered at bank and their impact on customer thinking

5) Divya and Mukharjee (2013):- discussed the effect of payment mechanism on the
replacement time of durable product purchase. Their arguments are based on how payment
methods( cash or emi) influence the consumption experiences of durable goods, which ultimately
impacts the replacement time.

Bajaj Finserv deals in consumer durable loans by having an agreement between either
manufacturer company or dealers. In such an agreement, Bajaj Finserv decides brokerage on
various products manufactured by manufacturers or products sold by dealers. In this way the
manufacturers and dealers bear the money which is meant to be paid by customer in the form of
interest which is charged . But a customer doesn’t have to pay any additional charges or interest

23
if an agreement has happened between Bajaj Finserv and the manufacturer. The brokerage from
the agreement is the profit earned for the financial institution.

24
 Chapter V : Application of Management Model

Bajaj Finserv deals in consumer durable loans by having an agreement between either
manufacturer company or dealers. In such an agreement, Bajaj Finserv decides brokerage on
various products manufactured by manufacturers or products sold by dealers. In this way the
manufacturers and dealers bear the money which is meant to be paid by customer in the form of
interest which is charged . But a customer doesn’t have to pay any additional charges or interest
if an agreement has happened between Bajaj Finserv and the manufacturer. The brokerage from
the agreement is the profit earned for the financial institution.

25
 Chapter VI: Objectives and Scope of Project

6.1 Objectives:

1) To identify the factors influencing the decision for consumer durable loan.

2) To examine the relationship among the factors influencing these decisions.

3) To evaluate perception of Bajaj Finserv Emi-card among respondents.

4) To study the demographic profile of the respondents, which gives an indication of the
composition of the population who seeks loan.

6.2 Scope of Project:

Conceptual Scope:-The study will focus on various factors which influence the decision of
customers to seek loans for buying goods.

Analytical Scope:- Analytical scope of the study is limited to statistical tools and analysis of
data in terms of graphs, percentage & mean

26
 Chapter VII: Research Methodology

7.1 Rational for the study :

This study will give us results regarding the factors which are most beneficial for the company
i.e. the demographic profile of the customers who are willing to seek the consumer durable loan.
The study also focuses upon the factors which influence the most while selecting the financial
institution for consumer durable loan. This could further help company knowing the consumers
perception and to also narrow down issues ,if any, which must be rectified in order to create
customer delight.

7.2 Statement of problem :

• To identify demographic factors of customers seeking loan.

• To analysing factors influencing customers to select payment modes for purchasing the
product.

7.3 Significance of the Problem :

With longer tenure available ,consumer durable loans are a good fit for those people who need
funds for satisfying their basic necessities and provide them time and opportunities to repay the
amount. However, in the context of global economies where consumers have various options
available ,the factors affecting selection of financial institution are difficult to apprehend.
Understanding and analyzing the consumers perception and behavior is cornerstone of
marketing.

7.4 Research Objectives :

1) To study the demographic profile of the respondents, which gives an indication of the
composition of the population who seeks loan.

2) To identify the factors influencing the decision for consumer durable loan.

27
 3) To examine the relationship among the factors influencing these decisions.

4) To evaluate perception of Bajaj Finserv emi-card among respondents.

7.5 Research design (Research Type) :

The present research study will be Descriptive in nature.

7.6 Data sources (Primary and secondary sources) :

7.6.1 Primary Data Source:-

The opinion of Bajaj Finserv Consumers must be collected executing structured schedule.

7.6.2 Secondary Data Source:-

Needed theoretical concepts, profile to be collected from books and website.

7.7 Sampling Design :

7.7.1 Sample Size –

The present research study sample size is 100.

7.7.2 Sampling Method –

The present research study sampling method is Convenient sampling technique in

nature.

7.7.3 Sampling Unit –

The present research study sampling unit is Customers of Bajaj Finserv.

7.8 Data collection Instruments.

Questionnaire was used for Data collection.

7.9 Limitations of the Project :

The time provided for survey was only 50 days.

28
Sample size is less for the survey and to give a fair judgment of the overall customer
perception or customer satisfaction .

29
 Chapter VII: Data Analysis

Factors Influencing selection of Consumer Durable Loan

From a Financial Institution
120
100
80
Axis Title

60
40
20
0
[Confidenc
[Existing
e in [Processin [Product [Cash [Interest [Service [Lending
loan with
Institution g Fee] Range] Back] Rate] Quality] Amount]
Financer]
]
Strongly Disagree 8 7 14 9 10 11 10 10
Disagree 0 0 2 0 0 1 0 0
Neutral 3 24 12 10 14 11 6 16
Agree 40 37 37 39 36 37 30 39
Strongly Agree 49 32 35 42 40 40 54 34

Interpretation: In above chart we can see that , maximum respondents strongly agreed upon
Service quality followed by Confidence in Institution. There are two factors that respondents
strongly disagreed. First one is Existing loan with Financer followed by Interest rate. It is

shown that averagely 36.89 respondents agreed upon all the factors.

30
 Factors Influencing selection of Consumer
Durable Loan From a Financial Institution
120
100
80
60
40
20
0
[Accessibility
[Loans with [Friendliness of loan
[Recommen [Professional [Merchant
Favorable of Service [Popularity] status on
dation] Advice] Network]
Terms] Personnel] Mobile
phone]
Strongly Disagree 15 10 11 12 9 12 13
Disagree 2 1 1 1 3 0 0
Neutral 7 13 13 15 8 9 10
Agree 37 36 32 27 46 34 41
Strongly Agree 39 40 43 45 34 44 36

Interpretation: In above chart we can see that, maximum respondents strongly agreed upon
Friendliness of service personnel followed by Accessibility of loan status on mobile phone.
There are two factors that respondents strongly disagreed. First one is Loans with Favorable
terms followed by Merchant Network. It is shown that averagely 36.14 respondents agreed upon
all the factors.

31
 Satisfaction towards EMI card
1%

15%

29%
Very Unsatisfied
Unsatisfied
15%
Neutral
Satisfied
Very Satisfied

40%

Interpretation: In above chart we can see that 40% of respondents were unsatisfied as well as
29% of respondents very satisfied with the EMI card. 15% of the respondents were satisfied and
15% of respondents were unsatisfied with Bajaj Finserv EMI card.

32
 Rating On EMI Card
120
100
80
60
40
20
0
Accesibility of
Processing Fee Service Quality Loans Status on Merchant Network Popularity
Mobile Phone
1 10 21 11 25 13
2 38 21 35 21 25
3 18 21 14 16 19
4 11 15 22 14 14
5 23 22 18 24 29

Interpretation: In the above chart we can see that respondents have given 1-5 ratings upon emi
card on various factors such as service quality, merchant network and popularity. Highest i.e. 5
rating was given by 29 respondents to popularity followed by 24 respondents gave 5 rating for
merchant network. The lowest rating i.e. 1 was given by 10 respondents for processing fee
followed by 11 respondents gave rating 1 for accessibility of loan status on mobile phone.

33
 Gender

28%
Male
Female
72%

Interpretation: In the above chart we can see that 72 % of the respondents were male and 28% of
the respondents were females.

34
 Age
3%

22% 21-30
30-40
3% 40-50
72% 50-65

Interpretation: In the above charts we can see that Majority of the respondents i.e. 72% were
between 21-30 age group. 22% of respondents were between 40-50 age group.

35
 Gross Income Level

25%
15000-20000
44% 20000-30000

7% 30000-40000
Above 40000

24%

Interpretation: In the above chart we can see that majority i.e. 44% of the respondents has gross
income level between 15000-20000.25% of the respondents belong to highest level of income
i.e. above 40000 and 7% of the respondents are having income between 30000-40000.

36
 Education Level

9%
20%
Under Graduate
Graduate
Postgraduate
45% 26% Other

Interpretation: From the above chart we can see that, 45% of the respondents are post-graduate
and 26% of the respondents are Graduates.

37
 Employment

13%
30%
Government
Private
Self-Employed

57%

Interpretation: In the above chart we can see that majority i.e. 57% of the respondents are
working in private sector. 13% of the respondents are in government sector and 30% of
respondents are self-employed.

38
 CHAPTER IX: FINDING

Findings:

1. In terms of demographic factors, most of the survey respondents were males and
graduates.
2. When buying products on consumer durable loan, consumers weighed the importance of
Service Quality, Friendliness of service personnel and Confidence in Institution provided
by Bajaj FinServ over other factors.
3. Existing Loan By Financer ,Interest rate ,Loans with Favorable terms followed by
Merchant Network were the major factors that customers strongly disagreed , according
to the survey results
4. The respondents gave highest rating for EMI card on factors such as service quality
merchant network and popularity as well as respondents gave lowest rating on factors
such as processing fee and accessibility of loan status on mobile phone.

39
 CHAPTER X: CONCLUSIONS & SUGGESTIONS

Conclusions:

1. A majority of the survey takers identified themselves as male and in the age group of 21-
29 and having an income between ₹15,000 to ₹20,000/-. So, Company should focus upon
this customers so that they would turn out as loyal customers for longer time.
2. The customers emphasized the importance of two main factors influential in customers
seeking loans – Confidence in Institution and Service Quality. It was also found that
customers having an existing loan with the customers acted as a barrier for the company.
3. From the study and survey, it was found that a majority of customers were unsatisfied
with the service provided regarding the Bajaj Finserv EMI card.
4. From the results it was found that customers stressed on the brand value factor and the
service quality of the company as the best factors.

Suggestions:

1. Customers said that if they did not make any purchase their card got blocked. This issue
was pertaining and therefore needs to be rectified for better customer experience.
2. Bajaj FinServ should provide EMI on customers durables on purchase of products below
₹ 5,000/- to expand their customer base.
3. They could also decrease the minimum CIBIL score for the loan approval to 750. This
move can also help them in garnering more customers.
4. The company needs to rectify their E-Wallet app and maybe try to reduce some
processing fee charges. This will help in improved customer satisfaction and retention.

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 CHAPTER XI: ANNEXURE

Q.1. How important are the factors for you in choosing a consumer durable loan from financial
institution ? Rate them according to agreeableness.

Strongly Agree Neutral Strongly Disagree

Agree Disagree
Confidence in Institution
Processing Fee
Existing Loan with Financer
Product Range
Cash Back
Interest Rate
Service Quality
Lending amount
Loan with favorable terms
Recommendation
Professional Advice
Popularity
Accessibility of Loan Status on
mobile phone
Merchant Network

Q.2 Customer Demographic Profile

a. Gender

1. Male 2. Female

b. Age

1. 21-30 2. 30-40 3.40-50 4. 50-65

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c. Educational Details

1.Under graduate 2. Graduate 3.Post Graduate 4. Other

d. Sector of Employment

1. Government 2. Private 3. Self employed

e. Gross monthly income

1. 15000-20000 2. 20000-30000 3.30000-40000 4.Above 40000

Q.3 How Satisfied are you with Bajaj Finserv EMI card ?

1. Very Satisfied 2. Satisfied 3. Neutral 4. Dissatisfied 5. Very Dissatisfied.

Q,4 Rate Bajaj Finserv EMI card on following Parameters ( Rating From 1-5)

1 2 3 4 5
Processing Fee
Service Quality
Accessibility of loan status on mobile phone
Merchant Network
Popularity

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 CHAPTER XII: BIBLOGRAPHY

• www.bajajfinserv.in
• www.slideshare.com
• https://indiancompanies.in/top-nbfc-finance-companies-in-india/
• https://www.indiabudget.gov.in/economicsurvey/doc/vol2chapter/echap01_vol2.pdf
• http://statisticstimes.com/economy/sectorwise-gdp-contribution-of-india.php
• https://www.slideshare.net/9409072101/customer-perception-about-gold-loan-as-short-
term
• https://www.slideshare.net/PriteshRadadiya/customer-perception-towards-loans-and-
advances-commercial-cooperative-bank
• http://www.ij360mr.com/docs/vol7/ap19(36).pdf
• https://www.slideshare.net/yeshwanthreddy28/a-study-on-influence-of-emi-process-on-
sales-of-bajaj-electronics

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