INDEX

Sr Content Page No
No
1 Understanding The Concepts 6
2 Introduction 8
3 Theoretical Background 10
4 Company Profile 15
5 Historical Background Of The 17
Organization:
6 Objective Of The Organization 19
7 Growing Potential In The Industry 21
8 Product Profile 27
9 Consumer Finance 28
10 Features And Benefits 30
11 Personal Loan Cross Sell 32
12 Sme Finance 34
13 Commercial Lending 35
14Bajaj Finserv Lending Management Structure 36
15 Our Foot Prints 37
16 Growth Of Bajaj Finserv Lending 38
17 Consumer Durable Loans 41
18 Features & Benefits 42
19 Research Design And Methodology 44
20 Swot Analysis 52
21 Achievements And Milestones 54
22 Suggestions & Recommendations 55
23 Conclusion 56
24 Biblography 57

1
 UNDERSTANDING THE CONCEPTS
EXECUTIVE SUMMARY
The unique attribute about Retailer Finance is the fact that Bajaj
Finserv Lending is leveraging on its trust relationship with its partners for
disbursing the loans.
Mr. Sanjiv Bajaj
(Managing Director of Bajaj Finserv lending)
Bajaj Finserv Lending, one of the most diversified non-banks in
the country, has introduced exclusive finance option for its retail partners
in the consumer durable industry. A leader in 0% interest consumer
finance with 14% share in the market, the company launched the
innovative Retailer Finance, which will help its partners avail finance for
acquiring inventory from the manufacturers.
The unique attribute about Retailer Finance is the fact that Bajaj
Finserv Lending is leveraging on its trust relationship with its partners for
disbursing the loans. The retailers are assigned a pre-approved credit line
which they can use any time they want. Thus unlike other finance options,
they don’t have to undergo the cumbersome due-diligence process and get
quick finance without submitting any collaterals or documentation. This is
the first time ever that a non-collateral based financing option has been
introduced for the retailers.
“We are uniquely placed in the consumer durable industry where
we have been helping retailers to sell more. Now Retailer Finance will
help strengthen our relationship with manufacturers as this will help them
in turn to sell more to the retailers. With this launch, we complete the
entire value chain across the industry thereby increasing our commitment
towards the consumer durable industry”, said Rajeev Jain, CEO Bajaj
Finserv Lending.

2
 The company has already tied up with consumer durable leaders
LG and Sony to extend this facility to their direct dealers and going
forward will be considering more partnerships in the space. Owing to the
0% financing offering, Bajaj Finserv Lending already has relationships
with more than 3000 partners in the consumer durable industry across 81
cities in India.
This report, which contains only a part of the actual report is based
on the research work done as a part of the summer internship project at
BAJAJ FINSERV LENDING, MUMBAI. The research involved study of
the past literatures about the retail finance sector, related online research
papers and journals. The study also involved survey of all COUNTER’S
OF BAJAJ FINSERV LENDING in the city of MUMBAI through field
visits and online survey. The annual reports and the sector reports
published by regulatory bodies, business associations and major retail
finance players facilitated the study, especially in understanding the size,
growth and past trends. Interactions with some of the industry experts
helped in understanding and analyzing the emerging concerns in the retail
finance sector and also to look for some possible solutions.
Based on the research work, a few major recommendations made
in the report include field supervision of Bajaj finance to check ground
realities and the operational efficiency of Bajaj Allianz.  Other initiatives
to BFSL for opening branches in unbanked villages, so as to increase
rural penetration. Also BFSL be encouraged to offer complete range of
products to their clients. Transparent pricing and technology
implementation to maintain uniformity and efficiency are among the
others which these institutions should adopt.

INTRODUCTION

3
 India is undergoing rapid development. This means that there are
millions of people who dream of better home, better infrastructure and a
better life. This opens several avenues of potentially limitless growth in
the banking and finance sector. Bajaj Finserv Lending will help grab this
opportunity to grow your business, through lending loans, financing, etc.

INDIA'S FINANCIAL SERVICES INDUSTRY

An innovative, competitive and thriving financial services industry
in any country plays a vital role in its smooth functioning and
development. India's financial services sector has posited a stable growth
curve over the years driven by sound fundamentals, rising personal
incomes corporate restructuring, financial sector liberalization and the
growth of a consumer-oriented, credit-oriented culture. This has led to the
increasing demand for financial products, including consumer loans
(especially for cars and homes), as well as for insurance and pension
products. The soaring demand for financial services offers promising
investment prospects.
According to the Central Statistical Organization (CSO) data,
released early this year, financial services, banking, insurance and real
estate sectors rose by 7.4 per cent in 2012-13.

BACKED WITH
o A favorable demographic profile which supports a higher retail off
take - 54% of the population is in the 15-35 years age group. India
consists of a dynamic and a growing middle-class class which on a
purchasing power parity basis is much larger than the entire
population of the US and a consumer credit market that is growing
by more than 40% per annum.

4
o Continuous increasing in capital expenditure by the government
and private industry.
o Significant opportunities in the largely untapped SME segment-
which accounts for 40% of the industrial output and 35% of India's
direct exports
o India's increasing and consistent growth. As per the CSO, the
Indian economy grew by an estimate of 7.4 per cent in the year
2012-13 and is expected to grow over 8 percent in the coming
months.
o Growing investment avenues across all segments in the banking
and financial services sector.

5
 THEORETICAL BACKGROUND

What is Finance?
"Finance is the management of money and other valuables, which
can be easily converted into cash."
A category of stocks containing firms that provides financial
services to commercial and retail customer. This sector includes banks,
investment funds, insurance companies and real estate. Financial services
perform best in low interest rate environments. A large portion of this
sector generates revenue from mortgages and loans, which gain value as
interest rates drop. Furthermore, when the business cycle is in an
upswing, the financial sector benefits from additional investment
improved economic condition usually lead to more capital projects and
increased personal investing.
New projects require financing, which usually leads to a large
number of loans. “Finance” is often defined simply as the management
of money or “funds” management. Modern finance, however, is a family
of business activity that include the origination, marketing, and
management of cash and money surrogates through a variety of capital
accounts, instruments, and markets created for transaction and trading
assets, liabilities, and risks. Finance is conceptualized, structured, and
regulated by a complex system of power relation within political
economies across state and global market.

Who is consumer?
An individual who buys products or services for personal use and not
for manufacture or resale. A consumer is someone who can make the
decision whether or not to purchase an item at the store, and someone
who can be influenced by marketing and advertisements. Any time

6
someone goes to a store and purchases a toy, shirt, beverage, or anything
else, they are making that decision as a consumer.
Under the consumer protection act 1985‘‘any person who buy any goods
for consideration, who include a person who obtain such goods for resale
or for any commercial purpose.”

Consumer Finance:
“The division of retail banking that deals with lending money to
consumers. This includes a wide variety of loans, including credit cards,
mortgage loans, and auto loans, and can also be used to refer to loans
taken out at either the prime rate or the subprime rate.”
The consumer finance is a win-win system in which everyone
wins. For the consumers it is an opportunity to upgrade standard of
living here and now instead of waiting for years of savings to accumulate.
For manufacturer, consumer finance stimulates demand and brings down
inventories. For dealers it is one type of sales booting. For finance
company it is profit generation.
Consumer finance has to do with the lending process that occurs
between the consumer and a lender. In some instances, the lender may be
a bank or financial institution. At other times, the lender may be a
business that offers in house credit in exchange for the business of the
consumer. Consumer finance can include just about any type of lending
activity that result in the extension of credit to a consumer.

Consumer Durable Finance:

7
“Consumer durable finance means to provide the finance on the consumer
durable product like, washing machinist, TV etc. it is known as consumer
durable finance”
The consumer durable finance provide the 0% interest on durable product
to the consumer, This gives customers another compelling reason to opt
for 0% interest Consumer Durables Finance for their durables purchases.
Consumer durables finance schemes are generally available at the dealer
location (point of sale) or the showroom. The beneficiaries are not just
customers – lenders, manufacturers, and retailers too benefit.
Manufacturers gain from the resultant boost to sales and increased
consumer preference towards high-margin products. Financing schemes
enable customers, especially those with lower income levels, to use future
income streams to buy consumer products upfront and pay in installments
over a period.
The most popular finance scheme prevalent in the market currently
is the 12/4 scheme, where the financier collects the amount for the first
four months as initial down payment from the buyer and then disburses
the full amount to the dealer. The financier then recovers the balance
amount in 8 monthly installments from the buyer. The interest and
processing charges are generally paid upfront by the manufacturer to the
financier. Consumer durables financing appears robust, continued support
from manufacturers (who are effectively bearing the interest costs
currently) would be critical to sustain high growth.

EMI Card:
 Bajaj Finserv Lending launched an innovative product for its existing
Consumer Durables Finance customers.
8
 Through the EMI card, an existing customer can buy any consumer
durable by simply swiping the EMI card across our dealer partner
outlets, without the need for any repeated documentation.
 This is another industry first, leveraging the technology investments
the company has made and is a proof point of our commitment to
investing in growing our relationship with our existing customers.

Advantages of Project:
 Schemes related to the consumer durable finance is always
welcome by the customers.
 Tracking methodology of customer is very smoothly (by using
EMI card).
 Provision of easy, simple and adequate credit.

Meaning of Banking:
Transacting business with a bank; depositing or withdrawing funds or
requesting a loan etc. or engaging in the business of banking; maintaining
savings and checking accounts and issuing loans and credit etc

Definition of Bank:
“An establishment for custody of money, which it pays out on customer's
order."

Meaning of NBFC:
NBFC means Non-banking financial company. A non-banking financial
company (NBFC) is a company registered under the Companies Act,
1956 of India and is engaged in the business of loans and advances,
acquisition of shares/stock/bonds/debentures/securities issued by
government or local authority or other securities of like marketable
nature, leasing, hire-purchase, insurance business, chit business, but does
not include any institution whose principal business is that of agriculture

9
activity, industrial activity, sale/purchase/construction of immovable
property.

 Classification:
1. Developing finance institutions
2. Leasing companies
3. Investment companies
4. House finance companies
5. Venture capital management

Definition of NBFCs:
Non-banking financial companies, or NBFCs, are financial
institutions that provide banking services, but do not hold a banking
license. These institutions are not allowed to take deposits from the
public. Nonetheless, all operations of these institutions are still covered
under banking

10
 COMPANY PROFILE
“Do whatever you think best, but be best at whatever you do”
– Rahul Bajaj, Chairman- Bajaj Group

What started off as a sugar manufacturing factory in 1931 has

grown to become one of the country’s largest business houses? With
activities that encompass a whole range of industries, spanning
automobiles (two-wheelers and three-wheelers), home appliances,
lighting, iron and steel, insurance, travel and finance.
At the turn of the new millennium, this business conglomerate is
ranked amongst one of the largest business family in India by the Centre
for Monitoring Indian economy (CMIE). It has under its umbrella over 25
companies and strength of over 25000 employees. It’s core strength,
however, is the unshakeable foundation based on its tradition of trust.
With the demerger of Bajaj Auto Ltd, following separate
corporate entities came into existence in May’ 2008

Bajaj Finserv Ltd (BFL),

o Bajaj Auto Ltd (BAL), and
o Bajaj Holdings and Investment Ltd (BHIL)

11
Demerger of Bajaj Auto Ltd.
o Bajaj is present in over 50 countries all over the globe
o Dominant presence in Africa, Latin America and South Asia with
increasing market share every year
o Market leader in motorcycles in Colombia, Central America, Sri
Lanka, Bangladesh, Philippines, Nigeria, Uganda and Kenya.
o 891,002 units exported in 2012-13, an increase of over 15 % over the
previous year.
o Largest exporter of three wheeled commercial vehicles in the world:
164,887 units exported in 2012-13, a rise of 19% over 2011-12.

12
 Historical Background of the Organization:

Bajaj Finserv was formed in April 2007 which is situated in 4TH

Floor, Bajaj Finserv Corporate Office, Pune-Ahemednager 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 also 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 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.
13
 Bajaj Auto Finance Ltd. (BAFL) was incorporated as a Private
Limited Company on 25th March, 1987. It became a deemed Public
Limited Company by virtue of Section 43(A) of the Companies Act, 1956
w.e.f., 20th October, 1987.

Initially BAFL was promoted by erstwhile Bajaj Auto Limited and

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

BAFL is an NBFC registered with RBI and authorized to accept

public deposits. Consequent to the re-classification of NBFCs by RBI,
BAFL has been re-classified as an Asset Finance Company (Deposit
Taking) ´.
BAFL is engaged primarily in the business of financing of two
wheelers, consumer durables, personal computers, personal loans etc.
BAFL made a Public Issue of Equity Shares in 1994 and its Equity
Shares are listed on Bombay Stock Exchange Limited and National Stock
Exchange of India Limited.
BAFL made Preferential Issue of Equity Shares to the Promoters
and a few foreign corporate bodies and also warrants to the Promoters in
2006.
BAFL made a Rights Issue of Equity Shares and Non-Convertible
Debentures with detachable warrants to the existing shareholders in 2006-
07.

14
 BAFL has its headquarters at Pune and has more than 50 branches
spread across the country.
Objective of the Organization
Our main objects as contained in our Memorandum of Association
include:
To Finance industrial by way advance ,deposit or lend money,
securities and propertied or with any Company, Body corporate, trust,
firm, person or association whether falling under the same management
or otherwise, with or without security and on such terms as may be
determined from time to time, and to carry on and undertake the business
of finance and investment and to provide venture capital, seed capital,
loan capital and to participate in equity preference share capital or to give
guarantees on behalf of the company in the matter and to promote
companies engaged in industrial and trading business and to act as
Financial Consultants, Management Consultants, Brokers, Dealers,
Agents and to carry on the business of share broking, money broking
,exchange broking, bill broking and general brokers for shares
,debentures, debenture-stock, bonds, units, obligations, securities
,commodities, bullion currencies and to manage the funds of any person,
firm, body corporate or trust by investment in various avenues like
Growth Fund, income fund, risk fund, tax exempt funds, pension
/superannuation funds and to pass on the benefits of portfolio investments
to the investor as dividends, bonus, interest, etc.

To carry on the business as an investment company and to

underwrite, sub-underwrite, to investigating , and acquire by gift or
otherwise and hold, sell, buy or otherwise deal in shares debentures,
debentures-stocks, bond, units, obligations and securities issued or

15
guaranteed by Indian or Foreign Governments, States, Dominions,
Sovereigns, Municipalities.

Organization Hierarchy:
A key issue in accomplishing the goals identified in the planning process
is structuring the work of organization. Organizations are 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
organizations 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 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 as branch site, department, work
group and single group of people.

16
 GROWING POTENTIAL IN THE INDUSTRY
Demand for banking services is growing significantly,
albeit in a country where less than half of households have a bank
account. It is in the retail sector that the surge in demand is most marked.
Housing loans grew by more than 50% and loans to the retail commercial
sector rose by more than 100%. According to the weekly statistical
supplement (WSS) of the Reserve Bank of India (RBI), Indian bank loans
represented a rise of 19.1 per cent as of June 4, 2013 while deposits were
up 14.3 per cent from the previous year. Furthermore, outstanding loans
showed an increase from US$ 12.39 billion to US$ 703.5 billion in the
two weeks to June 4, 2013. The WSS reflected that bank deposits rose by
US$ 3.24 billion to US$ 975 billion in the two weeks to June 4. In 2009,
there were 21 IPOs that raised US$ 4.18 billion as compared to 36 IPOs
in 2008 that raised US$ 3.62 billion.

As per the statistics of RBI, aggregate deposits grew by 3.3% on

q-o-q basis in quarter ended June 10 as against 5.1% during the same
period last year; reflecting the relatively lower rates in term deposits.

NON-BANKING FINANCIAL COMPANIES

Non-banking financial companies (NBFCs) are fast emerging as
an important segment of the Indian financial system. It is an
heterogeneous group of institutions (other than commercial and co-
operative 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.

17
 NBFC are present in all competitive fields such as, vehicle
financing, housing loans, leasing, hire purchase and personal loans
financing etc. NBFC's are not required to maintain cash reserve ratio
(CRR) and statutory liquid ratio (SLR). Priority sector lending norm of
40% (of total advances) is not applicable to them. While this is at their
advantage, they do not have access to low cost demand deposits. As a
result their cost of funds is always high, resulting in thinner interest
spread. But currently with surplus liquidity in the system, the cost of
funds for NBFC's has substantially eased thus improving their margins.
Gradually, they are being recognized 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.

On regulatory front, NBFCs have been classified into 3

categories:

o Those accepting public deposits

o Those not accepting public deposits but engaged in financial
business
o Core investment companies with 90 per cent of their total assets as
investments in the securities of their group/ holding/subsidiary
companies. The focus of regulatory attention is on NBFCs
accepting public deposits.

18
 Bajaj Finserv Limited is the holding company for the financial
services businesses of the Bajaj Group. Its insurance joint ventures with
Allianz SE, Germany namely Bajaj Allianz Life Insurance Company
Limited and Bajaj Allianz General Insurance Company Limited are
engaged in life and general insurance business respectively. Its subsidiary
Bajaj Finance Limited is a Non-Banking Finance Company engaged in
consumer finance, SME finance and commercial lending. Bajaj Financial
Solutions Limited, a wholly owned subsidiary of Bajaj Finserv Limited is
engaged in wealth advisory business.

Bajaj Finserv Lending is one of the leading financiers in the market

offering: 0% interest on lifestyle product and consumer durable product
finance on EMI.

An easily avail on a loan for products like LCD, LED, Color TV,
Refrigerator, Washing Machine, Air Conditioner, Music System,
Microwave amongst a host of other products.

Bajaj Finserv Lending consumer durable loan comes with 0%

financing and with a small fee. One can apply online on their website and
get an instant approval or visit a dealership to easily avail a loan. It
provides on the spot approval with minimum documentation & fast
processing.

They offer finance for various infrastructure related equipment’s in

the field of Construction, Mining, and Material Handling businesses so
you can go ahead and construct your own path to success. They extend
finance with attractive benefits for both new as well as used equipment.

19
 Bajaj Finserv Lending offers loans for various needs. We offer
loans for Bajaj Auto Two Wheelers under the name of Bajaj Auto Finance
Ltd. We offer Consumer Durable Loans, Personal Loans, Loan against
Property, Small Business Loans, Construction Equipment Loans, Loan
against Securities and Insurance Services under the name of Bajaj Finserv
Lending..

Bajaj Finserv Lending is one of the most diversified NBFCs in

the market catering to more than 5 million customers across the country.
Apart from being a well-recognized organization, they pride us for
holding the highest credit rating of FAAA/Stable for any NBFC in the
country today. The product offerings include Consumer Durable Loans,
Personal Loans, Loan against Property, Small Business Loans, Two-
wheeler and Three-wheeler Loans, Construction Equipment Loans, Loan
against Securities and Insurance Services.

PRESENT STATUS
Bajaj Finserv Lending bets big on 0% interest finance:-
In turn, Bajaj Finserv Lending continues to be the largest driver
of this growth with over 9% share and growing at 88% YOY. This puts
Bajaj Finserv Lending in a clear leadership position. Today, one out of
every 5 flat panel TVs is bought on the 0% interest consumer durables
loans option from Bajaj Finserv Lending. This growth has come at the
back of significant investments made in distribution, technology and
process automation. “We have invested deep in technology and process
innovations to create long term sustainable advantages. This has allowed
us to create win-win propositions for all members in the ecosystem”, says
Rajeev Jain CEO Bajaj Finserv Lending.

VISION
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 To attain world class Excellency by demonstrating value added
products to customers.
To attain brand value by learning, innovation, perfection and
transparency.
To ensure proactivity, to create the future through innovation.
To set new standards and reach near to perfection.
To convey clear conviction and characterize themselves.

MISSION
Focus on value based lending.
Fostering team work and enhancing the capability of team.
Continual Improvement.
Total elimination of fraud practices.
Ensuring easy and quick accessibility to customers.

OBJECTIVE
Bajaj Finserv Lending is one of the most diversified NBFCs in the
market catering to more than 5 million customers across the
country .Apart from being a well-recognized organization; they pride
ourselves for holding the highest credit rating of FAAA/Stable for
any NBFC in the country today to cater products.
To the customers changing financial requirements based on customer
feedback and improvising the existing products.

GOALS
To catapult Bajaj Finserv as the country’s largest financial lending
firm.

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VALUES
I. Empowerment
We respect the opinions and decisions of others.
We encourage and back people to do their best.

II. Flexibility
We are ever willing to learn and adapt to the environment, our
partners and customers evolving needs.

III. Entrepreneurship
We always strive to change the status quo.
We innovate with new ideas and energies with a strong passion and
entrepreneurial skills.

IV. Transparency

We believe we must work with honesty, truth and the inmate desire
to do well.

V. Impact

We are driven by the desire to create a meaningful difference in

society.

22
 PRODUCT PROFILE

PRODUCT PORTFOLIO SUMMARY

Bajaj Finserv Limited is the most diversified non-bank in
the country, the largest financier of consumer durables in India and one of
the most profitable firms in the category.

Hereunder are summary details of our portfolio of businesses,

with a brief description on each:-
Consumer Finance Consumer Durables Finance
Lifestyle Finance
EMI Card
Extended warranty
Personal Loans Cross Sell
Co-branded Credit Cards
Two and three wheeler Finance
Salaried Personal Loans
SME Finance Mortgage
Business Loans
Commercial Lending Construction Equipment Finance
Infrastructure Finance
Vendor Financing

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 CONSUMER FINANCE
CONSUMER DURABLE FINANCING

Present in the top 79 cities of the country, we are now the largest
Consumer Durables Financier in India. We financed over 10% of all
consumer electronics sold in the country in the last year. We finance one
out of every four LCD and Plasma televisions sold in the country. Last
year, we acquired more than 1.45 million new customers, through our
over 2,500 points of sale across the country.

PRODUCTS COVERED
0% interest Consumer Durables Finance is available on a wide
range of products and in over 80 cities across India. Hereunder is an
indicative list of products covered:-

 LED/LCD/CTV
 Washing Machines
 Microwave Ovens
 Refrigerators,
 Cameras/Camcorders
 Dishwashers
 Generators
 Cooking Range products
 Dryers
 Laptops (Select)
 Air purifiers / Water Purifiers / R.O.
 Music Systems
 Inverters
 Air conditioners
24
LIFESTYLE FINANCE
0% interest Lifestyle Finance is available on a wide range of
lifestyle products. Hereunder is an indicative list:

 Home improvements and furniture

 Modular kitchens
 Jacuzzi & bathroom fittings
 Kitchen equipment’s
 Home furnishings
 Luxury watches
 Digital lifestyle products
 Tablet PCs
 Smart-phones

EMI CARDS
EMI card for durable and lifestyle purchases, Hereunder is an
indicative list:

25
 FEATURES AND BENEFITS
Hereunder are a host of unique features and benefits that you
enjoy with EMI Cards from Bajaj Finserv Lending. Read on to know
more:

PRE-APPROVED ELIGIBILITY

The EMI card carries a pre-approved loan in your wallet. You can avail
of your loan facility to purchase any consumer durable & lifestyle
product of your choice.

INSTANT APPROVAL
Simply Swipe, Sign and Buy with your EMI card. The moment
you swipe your card, you get instant approval, subject to the amount pre-
approved for you.

MINIMUM DOCUMENTATION
For using your EMI card, you don't need to give any documents.
Your EMI card carries all the necessary information required.

REAPPROVED OFFERS
As an existing customer, you get exclusive preapproved offers
from time to time across a host of our partner retailers and manufacturers.

ONLINE ACCOUNT ACCESS

Get all information about your loan like repayment track, interest
certificate, payment schedule etc. through our digital customer portal. Just
log in with your loan account number and access whatever information
you want about your loan.

26
EXTENDED WARRANTY
Now, with all your consumer durables purchases, you can opt for
an additional one year warranty, over and above the manufacturer’s
warranty. What’s more, you can pay for the Extended Warranty through
our convenient 0% interest EMI options.

PRODUCT COVERED
Extended Warranty covers the cost of repair/ replacement of the
consumer durable appliance (i.e. insured asset) arising out of unforeseen
defects in material or workmanship within the Policy Period. Wherein
Policy Period is defined as 12 months, commencing after expiry of
manufacturer’s product warranty period.

Sum Insured of the insured asset is equal to the Invoice price and
Maximum claim payment under the policy is equal to the Sum Insured.

27
 PERSONAL LOAN CROSS SELL
Through this business, we offer existing customers with good
repayment history various pre-approved personal loan offers. While
maintaining focus on the balance between business growth and the risk-
reward equation, deployments under this category grew by 53% to Rs.
586 crore. The company financed over 86,000 new customers in the
current year.

As well as through cross-selling we also sale insurance

product to customer, i.e. Bajaj Allianz Life Insurance Company
Limited is a joint venture between Bajaj Finserv Limited and Allianz SE.
Both enjoy a reputation of expertise, stability and strength. Bajaj Allianz
today has a countrywide network connected through the latest technology
for quick communication and response in over 200 towns spread across
the length and breadth of the country. Bajaj Allianz Life Insurance
Corporation (BALIC) uses its in-house call center to cross sell to its
existing customer base through regular tele-calling done by its staff.

CO-BRANDED CREDIT CARDS

We have entered into a strategic partnership with Standard
Chartered Bank and has launched co-branded credit cards (‘Platinum’ and
‘World Card’) for customers with a good repayment track record.

TWO AND THREE WHEELER FINANCE

In FY2012, we emerged as one of the largest two-wheeler

financier in India. Despite an increase in competitive activity throughout
the year with some banks aggressively promoting two-wheeler and three-
wheeler loans, we financed over 650,000 new customers, operating
through 571 Bajaj Auto dealerships as well as over 1,700 of its sub-
dealers across the country.
28
SALARIED PERSONAL LOANS

To diversify our offerings in the Consumer Finance business, the

company launched Salaried Personal Loans business. This business
focuses on the financial needs of salaried employees. The business targets
affluent salaried employees above a threshold salary range employed with
leading companies.

29
 SME FINANCE
MORTGAGE

Under this business, we focus on financial needs of affluent and

high net worth small business and self-employed customers, offering
loans against the mortgage of retail, residential and commercial premises.
We were the first financial services company in the country to introduce
the policy of NIL foreclosure charges and Prompt Prepayment Benefit
program.

Recently, the company introduced another industry first - flexi

saver. This product offers customers the flexibility to ‘draw when they
want’ and ‘pay when they want’ without any extra charges - the first of its
kind in this space.

BUSINESS LOAN

Through this business, we offer our affluent SME customers

unsecured loans for their varied business needs. We are the only financial
services provider to offer up to Rs. 50 lacs unsecured loan for SMEs. This
business is present in the top 31 cities across India.
Recently we introduced a special lending program for Doctors.

30
 COMMERCIAL LENDING
CONSTRUCTION EQUIPMENT FINANCE
Construction Equipment Finance portfolio is designed to meet the
financial needs of businesses engaged in the infrastructure sector.
Through this business, we finance the construction equipment needs of
these businesses. Currently, we serve customers in over 23 cities in India.

INFRASTRUCTURE FINANCE
We commenced this business a little over year ago. This business
focuses on Project Finance, Corporate Finance and Mezzanine Debt to
infrastructure companies/projects. We believe Infrastructure Finance is a
critical input to continue to keep the pace on our infrastructure
development. However, given the high interest rate scenario and
uncertainty in government policy in key areas, we continue to be selective
in lending in this sector, and offer is a core need of the country.

VENDOR FINANCE

This business focuses on short and medium term lending needs of

vendors of large auto manufacturers. This is a three year old business and
has been growing steadily

31
BAJAJ FINSERV LENDING MANAGEMENT
STRUCTURE

STRONG DISTRIBUTION REACH

DISTRIBUTION CENTRES IN INDIA

32
 OUR FOOT PRINTS

Over 4500 durable retail outlets where you can discover the
delight of instant conversion of window-shopping to shopping, with 0%
interest Durable Finance. Over 70 of our own branches where you can
delight yourself to a new pace of getting any of your dreams financed.
Over 400 Lifestyle retail outlets where you can take home your
indulgence without pinching your savings. Over 500 direct sales agent
locations where you can walk in with a requirement and walk out with a
guaranteed time to money-in-your account.

33
 GROWTH OF BAJAJ FINSERV LENDING

BFL’S FINANCIAL PERFORMANCE

BFL’s financial performance for FY2012 vis-à-vis the previous
year, and Chart B plots profit after tax over the last five years.

(` In Crore)
Particulars
FY2011 FY2012 Change
Total income 1,406 2,172 54%
Interest and finance 371 746 101%
charges
Net interest income 1,035 1,426 38%
Salary cost 145 190 31%
Marketing and other 56 97 73%
commissions
Dealer incentives 47 64 36%
Recovery commission 58 89 53%
Loan loss and provisions 205 154 -25%
Depreciation 10 12 20%
Other expenses 144 218 51%
Profit before tax (PBT) 370 602 63%
Profit after tax (PAT) 247 406 64%
Earnings per share (EPS) 67.5 110.8 64%
basic (`)
Earnings per share (EPS) 67.5 110.3 63%
diluted (`)
Book value per share (`) 370.8 492.2 33%

GROWTH RATE OF BAJAJ FINSERV LENDING

CORPORATE SOCIAL RESPONSIBILITY (CSR)

34
CSR ACTIVITY OF BAJAJ GROUP
The CSR activities of the Bajaj Group are guided by the vision
and philosophy of its Founding Father, Shri Jamnalal Bajaj, who
embodied the value of trusteeship in business and laid the foundation for
its ethical and value-based functioning. The core elements of CSR
activities include ethical functioning, respect for all stake-holders,
protection of human rights, and care for the environment.

The Bajaj Group generally implements the above initiatives

through its employees, welfare funds, and Group NGOs/Trusts/Charitable
Bodies operating at various locations in the country. It also enlists the
help of non-Group NGOs, local authorities, business associations and
civil society, wherever deemed necessary.

Some of the major initiatives taken up during the year under

review are summarized below:

THROUGH GROUP TRUSTS:

In 1976, the Jamnalal Bajaj Foundation was established to
promote Gandhian constructive programmes and assist constructive
workers devoted to the national cause.

AWARDS
The Foundation gives four awards annually, each of the value
of ` 5 lakh. Of these, three are given to individuals in India for
outstanding contribution in the fields of constructive work on Gandhian
lines, application of science and technology for rural development, and
upliftment and welfare of women and children. The fourth is an
International Award given to individuals other than Indian citizens from

35
foreign countries for their contribution to the promotion of Gandhian
values outside India.

JANAKIDEVI BAJAJ GRAM VIKAS SANSTHA (JBGVS)

The group continued with its rural development activities

through JBGVS in Pune, Aurangabad and Wardha districts of
Maharashtra, and Sikar district of Rajasthan. JBGVS aims at integrated
development of 75 villages, to be carried out by the villagers themselves,
and under their own leadership by forging partnerships with the
Government, local institutions and NGOs.

This year, JBGVS has started working in 90 villages of Wardha

district in association with local NGOs on specific need based projects
such as natural farming, sanitation, etc.

VARIOUS OTHER CSR ACTIVITIES TAKEN UNDER JBGVS ARE:-

o PRIMARY EDUCATION
o PRIMARY HEALTH CARE
o ENVIRONMENTAL DEVELOPMENT
o SOCIAL DEVELOPMENT
o URBAN DEVELOPMENT

CONSUMER DURABLE LOANS

36
• Bajaj Finserv Lending is one of the leading financiers in the
market offering consumer durable loans on EMI.

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

• Bajaj Finserv Lending consumer durable loan comes with

0% financing and with a small fee. You can apply online on our
website and get an instant approval or visit a dealership to easily
avail a loan. We provide on the spot approval with minimum
documentation & fast processing.

37
 FEATURES & BENEFITS

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

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

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

• Benefits
 0% finance options available (for select schemes).
 Simple process with minimum documentation.
 On the spot approvals with fastest processing.
 Flexible repayment options.
 ECS clearing, reducing hassle of arranging cheques.
 Extended Warranty available.
 Pre-approved personal loan offers for existing customers

38
 Eligibility & Documents

• Eligibility
If you are a salaried person your age should be between 21 years to
60 years. If you are Self Employed your age should be between 21
years to 65 years.
 Doc um ent s

Documents required Salaried Self Employed

Photo Id Proof yes Yes
Residence proof Yes Yes
One Cheque in case of ECS Yes Yes

Credit program specific documents ( Any one of the following)

Credit Card front side photocopy Yes Yes

Visiting Card & Employee Id proof Yes No

Photocopy of RC book (Not Yes Yes
applicable for vehicles registered
after 2004 & commercial cars)
Bajaj Finserv Lending existing loan Repayment Loan Yes Yes
Account Number / Schedule
(subject to not later than 18
months old)

Any other Bank/NBFC Repayment Schedule Yes Yes

Salary Slip Yes No

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

CC

39
 RESEARCH DESIGN AND METHODOLOGY
Introduction:
Research is common parlance refers to a search for knowledge. One cans
also define research “As scientific and systematic search pertinent
information on a specify topic”. In fact research is an art of scientific
investigation. Another meaning of research as “A careful investigation or
inquiry especially through for new facts in any branch of knowledge.”The
system of collecting and processing of data for research project is known
as research methodology. Some important factors in research
methodology include validity of research data, ethics, reliability of
measures and logical sequence.
“Research is an organized systematic data based scientific inquiry or
investigation into a specific problem under taken with the purpose of
finding answer or solution to it”
Research is basically a human activity engaged in intellectual pursuit of
discovering something new. It could be a product, a method, a service, a
system etc. It could also be in abstract forms like idea, thinking process,
strategy etc.

Meaning of Research:
 Research is discovery of facts, development of facts and
verification of facts.
 Research is an endeavor to discover intellectual and practical
solutions to the problems through the applications of scientific
methods to the knowledge universe.
 Research is the last resort when individuals, organizations and
societies face some problems for which there are no answers or
when there is inconsistence among answers.

40
  Research is carried out to settle controversies, contradictions,
misunderstandings and disputes about the nature of some aspects of
the universe.
 Research is the systematic approach concerning generalization and
formulation of a theory.

Definitions:
Advanced Learner’s Dictionary of Current English (OXFORD):
“Research defined as a careful investigation or inquiry specially
though search for new facts in any branch of knowledge.”

Clifford Woody:
“Research is defined as the process which includes defining and
redefining problems, formulating hypothesis or suggested solutions,
collecting, organizing and evaluating data, reaching conclusions and at
last careful testing the conclusions to determine whether they fit for the
formulating hypothesis”

Kerlinger:
“Research is systematic, controlled, commercial and critical
investigation of hypothetical propositions about the presumed relations
among natural phenomenon”

P. V. Young:
“Research may be defined as a method of studying , analyzing and
conceptualizing social life in order to extent modify, correct or verify
knowledge whether that knowledge aids is construction of theory or in
practice of an arts.”

41
Black and Champion:
“Scientific research concerns itself with obtaining information through
empirical observation that can be used to systematically develop logically
relate propositions so as to attempt to establish casual relationships
among variables”
Characteristics of Research:
1. Predictions of future occurrences.
2. Directions towards to solution.
3. Accuracy in observation and description.
4. Basis of research is experience.
5. Gathering of new data.
6. Research is scientific programme.
7. Generalizations of principles of theories.
8. Quest for answer.
9. Patient activity.
10.Social relevance.
11.Objective and logical
12.Careful designed procedure.
13.Needs expertise.
14.Task to discover, develop and verify knowledge
15.Careful critical inquiry.
Types of Research:
1. Pure or Basic or Fundamental Research.
2. Applied Research.
3. Formulative or Exploratory Research.
4. Descriptive Research or Diagnostic Research.
5. Historical Research.
6. Quantitative or Qualitative Research.
7. Conceptual Research.
8. Empirical or Experimental Research.
42
Other types of Research:
1. One Time Research or Longitudinal Research.
2. Field setting Research or Laboratory Research or situational
research.
3. Conclusion oriented or decision oriented Research.

Research Design:
Research design is a plan of action, a plan for collecting and analyzing
data in an economic, efficient and relevant manner.
Types of Research Design
1. Exploratory Research Design.
2. Descriptive Research Design.
3. Experimental Research Design

 Exploratory Research:
Exploratory research is conducted to provide a better
understanding of a situation. It isn’t designed to come up with final
answers or decisions. Through exploratory research, researchers
hope to produce hypotheses about what is going on in a situation.

 Descriptive Research :

Descriptive research can be used to accomplish a wide variety of

research objectives. However, descriptive data become useful for
solving problems only when the process is guided by one or more
specific research problems, much thought and effort, and quite
often exploratory research to clarify the problem and develop
hypotheses.

43
  Experimental Research:
The experiment is a situation in which a researcher attempts to
objectively observe phenomena which are made to occur in a
strictly controlled situation where one or more variables are varied
and the others are held constant.

Sources of Data:
The study is exploratory in nature, makes use of mainly secondary data.
The data been collected from
 The annual reports of the company
 Books
 Articles
 Magazines
 Company website
 Research papers
 MBA projects
 Internet

Objective of Project:
1. To study the different financial schemes of Bajaj Finserv.
2. To study the loan procedure for durable product at Bajaj Finserv
with the help of case studies
3. To study the surrogate of the Bajaj Finserv.
Scope of the Project:
This project is limited to Bajaj Finserv Lending of Pune. And the
researcher analyses only consumer finance.
Research Methodology:
The study is exploratory in nature, makes use of mainly secondary data.
The data has been collected from the annual reports of the company,
Books, Articles, Magazines, Company website, Research papers, MBA
projects, Internet etc.
44
Time Frame:
Due to restricted period of time i.e.3 month, I have collected 5 case
studies in which 4 are success and 1 is rejected.

Analysis of Data:
The researcher analyses the data with the help of Case Studies,
Percentage, Tables, and Graphs.

Limitation of the project:

1. The study is restricted to the consumer durable loan only.
2. Sometimes customer gets dissatisfied due to the restricted policies
of EMI procedure.
Key concepts:
 Lending:
A person or organization that makes a loan. That is, a lender gives
money to a borrower with the expectation of repayment in a timely
manner, almost always with interest.
 Surrogates:
A surrogate means document requirement criteria for loan approval
process.
 Bajaj Dedupe:
Bajaj Dedupe means there is problem occurred in the previous
Bajaj loan.
 Scheme Chart:
Various types of schemes are given below:
Table: 4.1: Gross Loan Deployment of Bajaj Finserv:

(In crores)
Deployment FY FY FY FY
45
 2009-10 2010-11 2011-12 2012-13
Consumer Finance
Consumer durable 1037 2262 3576 4971
Two and Three 1364 2034 2671 3713
wheelers
Total-1 2401 4296 6247 8684
SME Finance
Mortgage 1067 1672 2985 4447
Small Business Loans 803 803 899 1035
Other assets 165 389 527 785
Total-2 1870 2864 4411 6267
Commercial Lending
Vendor Financing 149 1346 2480 3249
Construction - 694 891 1167
Equipment
Total-3 149 2040 3371 4416
Grand Total (1+2+3) 4420 9200 14029 19367

Gross Loan Deployment

5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
FY 2009-10 FY 2010-11 FY 2011-12 FY 2012-13

Consumer Finance SME Finance Commercial Lending

Figure No.4.1. Gross Loan Deployment of Bajaj Finserv

Interpretation:
The above graph shows loan deployment of the year, as per the
sectors, the growth of the consumer finance sector is more rapidly as
compared to the other SME finance and commercial lending sector.

46
 SWOT ANALYSIS

Strengths -

 Monopoly player in the Consumer durable finance

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

 0% finance facility.

 EMI Card provided for existing customer is one of

a kind service.

 BFL has presence at all the major retail counters

throughout the country.

 Strong network of executives with a responsible

managerial hierarchy.

Weakness -

 Low Control on the Payment Default by customers.

 Concentration needed on cross selling.

 Lot of dependence on the Online Support System.

 Customer Service and handling needs improvement.

47
Opportunities -

 Market has a lot of growth opportunities.

Consumer Finance being an untapped market holds
great scope.

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

 Create a brand identity of its own, strengthening the

brand Bajaj.

 Opportunities in Rural market.

 Opportunities available to reach the top position

amongst the Finance Companies and establish itself
internationally.

Threats -

 New competitors entering the market with similar

offerings. (HDFC, Shriram).

 There is always a threat of Losses due to payment defaults

in such business.

48
 ACHIEVEMENTS AND MILESTONES

CERDIT RATINGS:

 Highest Credit Rating of FAAA/Stable from

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

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

consumer durable dealerships and over 63 branch offices
throughout the country to cater to all the requirements of
our customers. We have earned the trust and loyalty of
over 50 lacs satisfied customers across the country.

49
SUGGESTIONS & RECOMMENDATIONS
 Management must encourage Executives to concentrate
more on Cross Selling.

 Finance schemes for strong seasonal sale products should

be introduced.

 A promotional campaign must be run clarifying the

benefits and offerings of BFL which would vanish the
doubts about 0 % finance & 0 processing fees.

 Processing fees should not be charged from the EMI card

holders in the case of Consumer Durables as it will create
loyalty among customers and will help build a strong
customer base even before the competitors entering the
market.

 A single agency must be hired for the verification purpose

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

50
 CONCLUSION

After working for eight weeks’ in “BAJAJ FINSERV

LENDING” I found that company enjoys a monopoly in this segment i.e
retail finance. No other company had a such huge sales work force,
which bajaj finserv lending had built. 0% interest finance of consumer
and lifestyle product has getting a tremendous suceess.
From the finding it can be concluded that “BAJAJ FINSERV
LENDING” carries a good reputation in the mind of the customers.
Customer usually prefers to finance its entire electronic product from
Bajaj Finserv lending.
The main objective of the FOS team was to plan a proper
scheduled “when to pitch an insurance product to customers with
proper technique” so sales target should be achieved.
To conclude “BAJAJ FINSERV LENDING” needs to focus on
their foot falls, sales finance team should be well educated about the
policy and customer preference because our major competitor is capital
first, that is threat to our counters and new store as well.
Bajaj Finserv Lending provides consumer credit services which are
helpful for the financial stability.
Financial stability is very important not only for the businesses but
also for the consumers. The businesses and as well as the consumers need
the stability regarding the financial matters because without the stability
no one could be very innovative in the longer run.
Consumer Finance market being an untapped one in India holds a
great scope for progress and market capture and BFL has been
exceptional in that till date.

51
 BIBLOGRAPHY

BOOKS

 Kotler Philip, Marketing Management, 11th edition. Pearson

Education

 Life Insurance-b.p. Agarwal, Sahitya Bhawan, 2011.

 Kimball, Bob. 1994. AMA Handbook for Successful Selling.

PRINT MEDIA

BUSINESS TODAY
ECONOMIC TIMES

WEBSITES
www.bajajgroup.com
www.bajajfinservlending.in
www.bajajallianz.com
www.bajafinanceltd.com
www.indiainfoline.com
www.moneycontrol.com
www.google.com

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