A

PROJECT
REPORT ON
BUSINESS &
COLLECTION

NAME: HIMANSHU MOTIYANI

SAP CODE: 23176560

CURRENT DESIGNATION: MANAGEMENT TRAINEE (L-8)

 TABLE OF CONTENTS:

SR.NO. PARTICULARS PAGE NO.

1 PART-1: BUSINESS: 1
 BASIC UNDERSTANDING OF BUSINESS: 2

 INTRODUCTION 2
 VISSION 2
 MISSION 2
 STEARING COMMITTEE OF MAHINDRA FINANCE 2
 PRODUCT PORTFOLIO OF MAHINDRA FINANCE 3
 VERTICALS WITH PRODUCT HEADS IN MAHINDRA & MAHINDRA 4
FINACNCIAL SERVICES LTD.
 STRENGHTS OF MMFSL 4
 SALES PROCESS 5-6
 IRR SCHEMES 7-9
 DOCUMENTS REQUIRED IN CASE OF DIFFERENT PROFILES OF 10
CUSTOMERS
 LOAN REPAYMENT OPTIONS WITH THE CUSTOMERS 11
 EXTRA CHARGES FOR THE CUSTOMERS 11
 TARGETS VS ACHIEVEMENTS 11

 COMPETITOR BENCHMARKING
 INTRODUCTION 12
 FACTS & FIGURES 13-16
 MARKET SHARE 17
 LEARNINGS & FINDINGS 18-20

2. PART-2: COLLECTION 21

 INTRODUCTION 22-23
 PORTFOLIO HEALTH 24
 AREA WISE 25
 METHOD WISE 26
 AREA-CUM-METHOD WISE 27-28
 DUE DATE WISE 29-30
 VEHICLE WISE 31-32
 RC PENDENCIES 33
 BARRIERS IN COLLECTING RC’S 34
 SOLUTION TO BARRIERS 35
 LEARNINGS 36-37
 PART – 1:
BUSINESS

BUSINESS Page 1
 BASIC UNDERSTANDING OF BUSINESS

 INTRODUCTION

The Mahindra Finance journey started on January 1, 1991, as Maxi Motors Financial
Services Limited. They received the certificate of commencement of business on
February 19, 1991. On November 3, 1992, Mahindra Finance changed their name to
Mahindra & Mahindra Financial Services Limited. In 1993 it commenced financing M &
M Utility vehicles and in 1995 started its first branch in Jaipur. In 2002 they MMFSL
started financing Non M & M vehicles and in 2009 it got into the business of financing of
Commercial Vehicles and Construction Equipments. 2011 was the year in which they
had a Joint Venture with Rabobank subsidiary for tractor financing in USA and
consolidated the product portfolio by introducing Small and Medium Enterprises (SME)
financing.

 VISION:

To be a leading financial services provider in semi urban and rural India.

 MISSION:

Transform rural lives and drive a positive change in communities:

 STEARING COMMITTEE OF MAHINDRA FINANCE:

1) Mr. V. RAVI: Chief Financial Officer, MMFSL

2) Mr. RAMESH IYER: President, Financial Services Sector
3) Mr. VINAY DESHPANDE: Chief People Officer, MMFSL
4) Dr. JAIDEEP DEVARE: MIBL
5) Dr. ANUJ MEHRA: MRHFL
6) Mr. RAJNEESH AGARWAL: VP-Operations
7) Mr. R. BALAJI: Head- Marketing & Strategy.

BUSINESS Page 2
 PRODUCT PORTFOLIO OF MAHINDRA FINANCE:

1) Pre-owned Vehicle Financing:

 Cars.
 Multi-utility Vehicles.
 Tractors.
 Commercial Vehicles.

2) Small Medium Enterprises Financing:

 Project Finance
 Equipment Finance
 Working Capital Finance.

3) Insurance Broking:

 Retail Customers
 Corporates

4) Investment and Advisory:

 Investments Products such as Mutual Fund, FD’s, etc.

 Advisory Services: Investment Planning.

5) Vehicle Financing (New Product Finance):

 Auto & Utility vehicle

 Tractors
 Cars
 Commercial Vehicles

BUSINESS Page 3
 6) Housing Finance:

 New house
 House renovation and improvements.

7) Personal Loans:

 Wedding
 Children Education
 Medical Treatment
 Working Capital.

 VERTICALS WITH PRODUCT HEADS IN MAHINDRA & MAHINDRA

FINACNIAL SERVICES LTD:

1) Automotive Loans – Mr. Debashish Kar

2) Farm Equipment Loans – Mr. H S Kammath
3) Light Motor Vehicle Loans – Mr. Sandeep Mandrekar
4) Commercial Vehicle & Construction Equipments Loans – Mr. Bhaskar Karkera
5) Refinance, Two Wheelers and Three Wheelers – Mr. Nitesh Rawal
6) Receivables and ARD Functions (Soft, Hard and NPA Cells) – Mr. Sailesh Rao
7) Direct Marketing – Mr. Khaled Khan

 STRENGTHS OF MMFSL:

1) Fast loan processing.

2) Wide network.
3) Customized repayment schedule.
4) In-depth knowledge.
5) Relationship with Mahindra & Mahindra.
6) Socially inclusive business model.
7) Large base of customer.

BUSINESS Page 4
  SALES PROCESS:

1) Receiving Information about the lead: The information about the lead in the
automotive vertical is received in 3 ways:

 Dealer:78%
 Direct marketing: 20%
 Alternative channels/ References: 2%

2) Meeting the Lead: After receiving the information about the lead, business executives
have to meet the lead and have to give information about:

 Equated monthly installments that the customers have to pay after availing loan.
 Discuss about Loan tenure.
 Documents to be submitted.
 Extra charges: Processing Fee, RC (Refundable), Stamp Papers, (0.5-1%) Service
charge.
 Rate of interest.
 Co-applicant or guarantor Documents (if Applicable)
 Discuss about total interest payable by the customer at the end of tenure. (If
asked)
 Give information about pre-closure of loan. (If asked)

While giving the above information to the customer, business executives have to also ask
certain questions to get an idea about customer profile which are as follows:

1) Domicile of customer
2) Occupation
3) Income proof.
4) In which vehicle they are interested?
5) How much finance they want?

BUSINESS Page 5
 3) Arranging a Field Investigation: This is one of the most important step in the sales
process in which the business executive have to visit customers society & home and
investigate about the customer. Before visiting customers society BE is also required to
check the CIBIL score of customer. Then after investigating properly, business executive
has to give approval if the customer profile is positive and reject it if profile is negative.
The questions to be asked at field investigation from the customer are as follows:

 From how many years customer is living at his residence?

4) Create the customer file: After getting positive approval of Business executive, they
have to create a file of customer which consists of offer letter, loan application paper
signed by customer, photocopy of documents of applicant/Co-applicant/Guarantor, loan
agreement file signed by customers, stamp papers, PDD, ACH/PDC/Security cheques,
Photos.

5) Lead generation/Employee assignment: After creating a file of customer, business

executives have to generate a lead by entering all the details of the customers. After
that they have to assign the generated lead to themselves.
6) EMLAP Entries: In this step, Business executive have to complete an entries in EMLAP
i.e. Enquiry Management and loan application processing till FI/PE details.
7) Delivery Order issuance: At this step the work of business executives is finished and the
work of accountant is started. In this step the accountant of the company is checking
the file of the customer thoroughly and doing the tele-verification of the customer and
guarantor. After completing tele-verification, accountants are issuing delivery order.

BUSINESS Page 6
  IRR SCHEMES FOR DIFFERENT VEHICLES:
CAPTIVE / T
LOW FUNDING ETR / GTR / PER
PRODUCT <= 60% CIBIL SUS FTR MIT
19 - 24
1 - 18 M M
Alfa Load 18% 19% NA 22% 23% NA
LTT NA 212618 212620 NA
NON LTT 212615 212616 NA 212619 212621 NA
Alfa Pass 18% 19% NA 22% 24.50% NA
LTT NA 212624 212626 NA
NON LTT 212622 212623 NA 212625 212627 NA
Champion 18% 19% 19% 19% 19% NA
LTT 212630 212632 212634 NA
NON LTT 212628 212629 212631 212633 212635 NA
Jeeto 16% 17% 18% 18% 18% NA
LTT 212638 212640 212642 NA
NON LTT 212636 212637 212639 212641 212643 NA
Maxximo Load 16% 17% 19% 20% 23% NA
LTT 212646 212648 212650 NA
NON LTT 212644 212645 212647 212649 212651 NA
Maxximo Pass 16% 17% 18% 18% 23% NA
LTT 212654 212656 212658 NA
NON LTT 212652 212653 212655 212657 212659 NA
Maxximo School Van NA NA 17% 17% 19% NA
LTT NA NA 212660 212662 212664 NA
NON LTT NA NA 212661 212663 212665 NA
Supro Van - Private use 15% 15.50% 15.50% 15.50% 16% NA
LTT 212791 212791 212792 NA
NON LTT 212789 212790 212793 212793 212794 NA
Supro Van - Commercial use NA NA 17% 17% 18% NA
LTT 212795 212795 212796 NA
NON LTT NA NA 212797 212797 212798 NA
Supro Maxitruck (Load) 16% 16.50% 16.50% 16.50% 17% NA
LTT 212801 212801 212802 NA
NON LTT 212799 212800 212803 212803 212804 NA
Pick up 13% 13% 13% 13.50% 14% NA
LTT 212666 212667 212668 212670 212672 NA

BUSINESS Page 7
NON LTT 212669 212671 212673 NA
Imperio NA NA 14% 14% 15% NA
NA NA 212848 212848 212870 NA
BMT 13% 13% 13% 13.50% 14% NA
LTT 212676 212678 212680 NA
NON LTT 212674 212675 212677 212679 212681 NA
Genio 14% 14% 14% 15% 16% NA
LTT 212684 212688 212686 NA
NON LTT 212682 212683 212685 212689 212687 NA
Bolero 13.50% 14% 13% 14% 15% 16%
212
212690 212691 212692 212693 212694 695
Thar 13.50% 14% 13.50% 14% 15% NA
212696 212697 212698 212699 212700 NA
Rexton NA NA 11.50% NA NA NA
NA NA 212701 NA NA NA
Scorpio 12.50% 13% 11.50% 11.50% 14% 14%
212
212702 212703 212704 212705 212706 707
XUV 5OO 12.50% 13% 11.50% 11.50% 14% NA
212708 212709 212710 212711 212712 NA
TUV 3OO NA NA 11.50% 11.50% 12.50% NA
NA NA 212763 212763 212764 NA
1 yr
1 yr 12% 13%

2 yrs
2 yrs 11.48% 12.47%

3yrs
3yrs 11.30% 12.28%

4yrs
4yrs 11.46% 12.46%
As per
SUS 5 yrs
KUV 1OO NA NA criteria 5 yrs 11.56% 12.56% NA
NA NA 212854 212855 NA
As per
SUS
Nuvosport NA NA criteria 12% 13% NA
NA NA 212893 212894 NA
Xylo 13.50% 14% 13.50% 14.50% 15.50% 16%

BUSINESS Page 8
 212
212714 212715 212716 212717 212718 719
Verito 13.50% 14% 13.50% 14% 15.50% 16%
212
212720 212721 212722 212723 212724 725
Quanto 13.50% 14% 12% 13.50% 14% 15%
212
212726 212727 212728 212729 212730 731
Reva e2O (4 yrs max) NA NA 12% NA NA NA
NA NA 212732 NA NA NA
Express Loan Scheme for Scorpio /
XUV / TUV / KUV / Nuvosport NA NA 10.99% NA NA NA
NA NA 212713 NA NA NA
Special Urban Scheme for Scorpio / Upto Upto Upto Upto
XUV / TUV (dealer & customer profile 12M- 24M- 36M- Upto 48M- 60M-
specific) 12% 10.47% 10.02% 10.06% 10.06% NA
212828/ 212829/ 212830/
31/34/3 32/35/3 212830/ 212830/33/3 33/36/3
7 8 33/36/39 6/39 9 NA
Upto Upto Upto Upto
Special Urban Scheme for KUV (all 12M- 24M- 36M- Upto 48M- 60M-
dealers & customer profile specific) 10.25% 10.47% 10.02% 10.06% 10.06% NA
212856 212857 212858 212858 212858 NA
Special Urban Scheme for Nuvosport Upto Upto Upto Upto
(all dealers & customer profile 12M- 24M- 36M- Upto 48M- 60M-
specific) 12% 10.47% 10.02% 10.06% 10.06% NA
212890 212891 212892 212892 212892 NA

BUSINESS Page 9
  DOCUMENTS REQUIRED IN CASE OF DIFFERENT PROFILES OF THE
CUSTOMERS:

1) For Individuals:

 PAN Card.
 Voter ID
 DL/Aadhar Card
 Income Proof: ITR-3years, Registration certificate (if he already has four
wheeler), Salary slips, Form-16, Agriculture land proof, salary certificate
 Banking statement: 6 month updated
 7 cheques
 4 photos

2) For Partnership firm:

 Registration certificate
 Partnership deed
 Non-objection certificate signed by each member.
 Banking statement-6 months updated current account.
 PAN card of applicant or company.
 ITR 3 years.
 Electricity bill.
 15 cheques
 4 photos: owner/co-applicant.

3) For Proprietary Firm:

 Registration certificate
 Service Tax/VAT last year
 Banking statement-6 months updated current account.
 PAN card of applicant or company.
 ITR 3 years.
 Electricity bill
 15 cheques
 4 photos: owner/co-applicant

BUSINESS Page 10
  LOAN REPAYMENT OPTIONS WITH THE CUSTOMERS:

1) Automated clearing house: It is a payment option in which the EMI of the customer will
be automatically deducted from the bank account of the customer on his due date.
2) Post dated Cheques: In this payment option, the customer has to submit the signed
cheques in the company. These cheques will be processed on their due date.
3) Field collection: This is the option in which either the customer will pay cash in his
nearest branch or collection executive will collect from them.

 EXTRA CHARGES FOR THE CUSTOMERS:

1) Documentation fees: 1000 Rs.

2) RC (Refundable): 1000 Rs.
3) Service charge: 0.5-1% of loan amount.
4) Stamp papers: 500 Rs.

 TARGETS V/S ACHIEVEMENTS:

 TARGET OF AREA BUSINESS MANAGER: The target of area business manager is 15

customers per business executive in a team.

Achievements
Sr No. Name Designantion Region Target July August September October Novemeber
1 Richa Maam ABM Uttarakhand 75 60 67 58 77 49
2 Sudhanshu Aswal Business Executive Dehradun 15 21 12 17 18 17
3 Nagender Rawat Business Executive Dehradun 15 12 20 13 23 18
4 Lokesh kumar Business Executive Haridwar & Roorkee 15 8 15 17 17 5
5 Yogesh Business Executive Karnprayag 15 11 12 7 5 6
6 Pawan Business Executive Rishikesh, Chamba 15 8 8 4 14 3
BUSINESS Page 11
 COMPETITOR BENCHMARKING:

The comparative analysis of Mahindra & Mahindra Financial Services Ltd. With different banks
and NBFC’s are being divided into following parts:

 Interest Rates.
 Pre-Closure Charges.
 Turn Around Time.
 Loan-To-Value.
 Processing Fees.
 Late Payment Charges.
 Cheque Bouncing Charges.
 Extra Charges.
 Part-Payment Charges.
 Loan Tenure.
 Facts & Figures-Month wise.

For the comparative analysis on the above mentioned points, I have taken 2 banks and 3 NBFC’s
which are giving us a strong competition. The names of those 2 banks and 3 NBFC’s are as
follows:

 State Bank of India.

 HDFC
 Cholamandalam Finance.
 Magma Fincorp.
 HDB Financial Services.

BUSINESS Page 12
SR
NO PARTICULA MAHINDRA CHOLAMA
. RS FINANCE HDFC SBI NDLAM MAGMA HDB

INTEREST 9.65-
1 RATES 10.55-16% 9.45-11.5% 9.75% 12.5-29% 12-16% 11-20%
4% of
remaining
Principal+
Service Tax
after 12
moths of
loan
5%+service 5% of
tax on the remaining
part principal +
payment Service tax 4% OF
3% OF amount in for 7-12 5% of REMAINING
PRECLOSUR REMAINING 13-24 months of remaining PRINCIPAL +
2 E CHARGES PRINCIPAL months Nil loan principal Service Tax
Less than
4 hours,
Provided
applicant
has
submited
TURN their
AROUND 2-4 proper
3 TIME 4-48 HRS 1-2 days days 1-2 days document 5-7 days

BUSINESS Page 13
 s

85% on
exshowroom
85-95% and 100%
(DEPENDS exshowroom
ON PROFILE funding on 85% on
LOAN TO OF good onroad
4 VALUE CUSTOMER) profiles price 85-100% 70-100% 90%
•Up to Rs.
2.50 lacs:
Rs. 3175
•From Rs.
2.51 lacs to
4 lacs: Rs.
4325
•Over Rs.
4.01 lacs to •Up to Rs.
5 lacs: Rs. 2.50 lacs:
4830 Rs. 3500
•Over Rs. •From Rs.
5.01 Lakhs 2.51 lacs
up to 10 to 5 lacs:
Lakhs: Rs. Rs. 4050
500+Se 5225/- •Over Rs.
PROCESSIN rvice •10 Lakhs 5 lacs: Rs. 0.5%-2.5% of
5 G FEE 1000 RS 1500-3000 Tax plus: Rs. 4625 loan amount

BUSINESS Page 14
 5785/

500-within
LATE 30 days and
PAYMENT 3% OF 750 more 2% Per 2% Per 3% Per 3% OF
6 CHARGES EMI/MONTH than 30 days Annum Annum month EMI/MONTH
CHEQUE
BOUNCING
7 CHARGES 500 500 250 500 500 750
500 RS
STAMP
PAPERS &
0.5-1% Stamp
EXTRA SERVICE Papers= 178 At
8 CHARGES CHARGES rs actual At actual 500 At actual
No 5%+service 5%+service
advantage in tax on the No tax on the
Part- part Part- part No No
payment.3% payment Paymen payment advantage advantage in
PartPaymen preclosure amount in t amount in in Part- Part-
9 t Charges charges 13-24 Charges 13-24 payment payment

BUSINESS Page 15
 months months

post 24
post 24 months -
months - 3% 3% on the
on the part part
payment payment
amount amount
1-7
10 Loan Tenure 1-5 years 1-7 years years 1-7 years 1-4 years 1-4 Years

BUSINESS Page 16
  MARKET SHARE:

45%
40% 41%
MARKET SHARE

35% 35%
30% 30% 31% 32% 31% 30%
28% 29% 29%
27% 29%
28%
25% 26%
25% 26% 25% 26% 24% 26%
20% 21% 21%
15% 16%
10%
5%
0%

MARKET SHARE 2015

MARKET SHARE 2016
MONTHS

INTERPRETATION:

 The above chart is showing the market share of Mahindra & Mahindra Financial services
in automotive division. The market share is calculated on the basis of total financing
done by MMFSL in numbers divided by retail business done by dealers in particular
month.
 So if we analyze the last two years data, we find that in 2015 the market share of
MMFSL was very fluctuating, while the market share of MMFSL in 2016 is showing a
constant trend.
 We can see that there is flat 4% (26%-30) increase in overall market share of Mahindra
finance. The reason behind this can be the change in organization structure due to
which the smart branch concept has been established.
 If we compare the data month wise, then we can say that there was more than 10%
increase in market share of January, July & September.
 Now if we talk about the market share of both the years in February & March, the
percentages are very low compare to other months. One of the main reason behind this
can be more focus on collection due to closing of financial year.

BUSINESS Page 17
  LEARNINGS:

1) To give deals to customers.

2) Lead generation in System.
3) Lead assignment.
4) EMLAP Entries till Asset-FI details.
5) OD Calling.
6) Calling for RC collection.
7) Documents required for different profiles of customers.
8) Extra charges.
9) FI visit.
10) Collection Visit.
11) To make complete file i.e. Agreement file signed by customers, documents collection,
ACH form signed, Loan application form signed by customer, take 2 reference numbers,
ask them about their nearby landmark, collect cheques, collect photos, check their
documents, Stamp papers signed, make offer letter, arrange PDD for issuing DO.
12) Process of business.
13) To filter Trial balance report and to tally it with daily collection report.
14) To make daily EDR report.
15) Visited almost all branches of Mahindra finance in Uttarakhand and UP west Region,
Met with employees, customers & unions there and find out main problems which are
affecting our business in hilly areas. The findings from my visit are as follows:

 KOTDWAR: Met with Pawan and discussed about following things:

 PROBLEMS:
 Lack of manpower: Because being a single person at kotdwar, he is not able to cover all
areas including Pauri district and Rishikesh.

BUSINESS Page 18
  Collection difficulty: The area which he got is under-developed and all the customers
are calling him for taking EMI’s in cash at their doorstep. So this is also one of the
difficulty for him to go for collection each month.
 Incentives: In our company the policy of incentive is based on no. of cases done by
business executive i.e. if Business executive is doing 15 cases per month then only he
will get incentive. But if dealers are selling only 17 vehicles or 20 vehicles per month in
these areas, then it is not possible for them to do 15 cases per month out of 17 vehicles
or 20 vehicles.
 Change in organization structure: This is one of the main problems which he is facing.
Because due to change in organization structure and vertical system, work load is
increased as they have to do both business and collection.
 Lack of support: According to him when he is sending any Field investigation in
Rishikesh due to lack of time, the Rishikesh peoples are not supporting or helping him in
conducting FI.

 Srinagar & Karnprayag: Met with Yogesh puri at Karnprayag and discussed about
various problems which he is facing:
 Lack of system: He doesn’t have a system available with him for doing entry. So for
completing entry he has to rely on someone in the karnprayag branch who has a
system available with him.
 Lack of manpower in Srinagar: They want an office boy who can sit in Srinagar office
for a whole day. Because all the employees of this areas are going for collection in
different areas. Therefore the office of Mahindra finance remains closed all the time
which leads to the loss of customers for business generation as well as the loss of
customer for collection i.e. who is coming to pay their Emi’s in branch.
 Salary structure: He is not at all satisfied with the salary which is provided to him.
According to him, his salary is too low compare to his work and work pressure.
 Incentive structure: Like Pawan, he is also not happy with the incentive policy of the
company. Because in his areas Mahindra is selling 16-17 vehicles per month and out

BUSINESS Page 19
 of it he is doing 12 cases which is according to me is an excellent job. But thereafter
he is not getting any incentive.

 General Problems:
1) There is no business executives appointed in the region from Tehri District (Ghanshyali)
to Uttarkashi & Vikasnagar.
2) One union leader in Ghanshyali said that they are giving maximum cases to
cholamandalam because first they are serving us better and second there is no business
executive of Mahindra finance is appointed there.
3) Due to change in organizational structure every business executive has got many areas
(large belt) to cover which in my point of view is next to impossible for them.
4) Unavailability of systems.
5) Incentive structure.

 Solutions: According to my point of view the solutions of the above problems can be:
 Certain peoples should be hired for covering various regions.
 Incentive policy should be changed to percentage wise rather than target wise.
 System or Tab should be arranged for them at least for completing Entry work which
ultimately leads to quick issuing of DO’s.

BUSINESS Page 20
 PART-2

COLLECTION

COLLECTION Page 21
 INTRODUCTION:

There are several types of collection buckets which are as under:

1) Non Starter
2) Soft Bucket – 0 to 1 age
3) Hard Bucket – 2-3 age
4) NPA – 3+ age onwards

The brief explanation of the above mentioned points are as follows:

1) Non Starter: It includes those customers who have broken their very first EMI. Some
customers are not paying intentionally and some customers have missed their first EMI
unintentionally i.e. for genuine reason such as they forget their due date, Cheque
bounced due to signature miss-match, they do not have money on their due date, etc.
Non starters are also been seen when there is a delay in transferring the intial hirier
money i.e. IHM from one application number to another.
2) Soft Bucket (0-2): It includes the customers who have missed their one installment i.e.
not paid their installment within 30-60 days of the due date. The size of the soft bucket
will increase when the Collection timing is not linked to the cash inflow pattern of the
borrower. For example:
- Collection from salaried employees should be timed with salary credit of the
employees normally at the month end or in the first week of proceeding month.
- In case of SME borrowers the efforts should be linked with the Cash flow on
account of sales.
- In case a collection from agriculturist should be made, then it should be soon
after the crops are sold.
3) Hard Bucket (2-4): It includes the customers who have missed their two or three
installments i.e. not paid their 2 or 3 EMI’s within 60-120 days after their respective due
dates. We need to follow up these bucket customers regularly; otherwise there is a full
chance of conversion of these customers to become NPA next month.

COLLECTION Page 22
 4) Non-Performing Assets (4+): It includes the customers who have not paid their EMI’s
even after 120 days of their due dates. They have made their clear intention of not
paying the installments. So these customers need regular visits to their home to
pressurize them to pay EMI or collection can be done by repossess their vehicle.

COLLECTION Page 23
  PORTFOLIO HEALTH:

No. of
Ageing cases
Portfolio Health
Series1
0 495
1 147 5
(P1) 0%
2 41
3 17 4
1%
4 8
3
2%
5 (P1) 2
6 (P2) 0 2
6%
6 & ABOVE (P3) 0
1
21%
TOTAL CASES IN 215
DELIQUENCY (30%) 0 0%
70%
TOTAL CASES 710

Interpretation:

 There are total 710 cases of Dehradun Premier Motors & Patricia Holdings from January
2016 onward to November 2016, out of which 30% of the cases i.e. 215 cases are in
delinquency.
 As shown in the above chart, there is 70% i.e. 495 of the cases is in 0 age which means
that this 70% of the customers are paying their installments on time, so we have to
focus on other 30% which are in delinquency level.
 From the above chart and table we can interpret that 27% of the customers are in soft
bucket i.e. in 0-2 age. The reasons due to which the customers comes under this bucket
can be PDC finished, ACH not processed, Cheque bounce due to signature mismatch or

COLLECTION Page 24
 wrongly filled, forget due date, salary late received, etc. So these kinds of customers can
be solved by calling only.
 Also there is 3% of the customers are in hard bucket. These types of customers are
dangerous because as they have not paid their installments from last 4 months, they
may have some negative intentions of paying the EMI. So these kinds of customers
needs regular follow up and home visits to collect their installments.

 AREA WISE:

TOTAL OD
AREAS CASES CASES
AREA WISE
Series1
BARKOT 12 6
CHAMBA 22 7 50%
44% 43%
DEHRADUN 267 60 36% 38% 40%
32% 32% 33%
HARDWAR 93 30 22% 20%
KARNPRAYAG 89 39
KOTDWAR 66 13
RISHIKESH 11 4
ROORKEE 43 14
SRINAGAR PAURI
GARHWAL 7 3
UTTARKASHI 45 17
VIKASNAGAR 55 22
TOTAL 710 215

COLLECTION Page 25
 Interpretation:

 As we can see that the most of the OD cases are in upper area belt like 50% in
Barkot, 44% in Karnprayag, 43% in Srinagar Pauri Garhwal. This is because in the
upper area belt the ACH cannot be processed by bank due to some technical issues.
 Also in the upper area there is very limited number of branches in each area, so the
people don’t prefer to go in bank for depositing money as it is very far from their
home. Therefore most of the people are choosing their mode of paying their
installments as cash.
 And the problem from our side is that the single business executive has got a very
long belt/area to cover, so he is also not able to go and collect the cash from the
customers at their respective due date as he has to also focus on business.
 So we should try to convince the customer to pay online through debit card or to
give the post dated cheques to pay the future installments and also inform them to
keep maintain the bank balance before due dates to avoid bouncing.

 METHOD WISE:

MODE OF CASES OD
PAYMENT BOOKED CASES
MODE OF PAYMENT
ACH 359 87 Series1 Series2

DDB 6 2
24%
DIR 1 0
48%
27%
ECS 4 1
51%
33%
FLD 159 77 25% 22% 25%

1% 0% 1%
PDC 181 48 ACH DDB DIR ECS FLD PDC

Grand Total 710 215

COLLECTION Page 26
Interpretation:

 It can be interpreted from the above table and chart that there is 51% of the cases are
booked in ACH, 22% in Field collection, 25% in PDC i.e. in post dated cheques and rest
2% are booked in others.
 Now if we talk about the delinquent cases, 87 cases are in OD out of 359 cases booked
in ACH which is only 24%. Likewise in field collection 77 cases are in OD out of 159 cases
booked in OD which is 48%. And also in PDC collection there is 48 cases in OD out of 181
cases booked in PDC which is 27%. It indicates that the maximum OD cases are of cash
collection.
 One of the reasons behind the regular payment of the ACH & PDC customers is the
cheque/ACH bouncing penalty. As we are charging 500 per cheque/ACH bouncing and
late payment charges extra, so customers are beware of maintaining their bank balance
before their due dates
 So as we discussed in Area-wise bullet point, we should try to convince the customers
(especially to those who are of upper belt) to take as PDC or ACH as their mode of
Payments rather than field collection.

 AREA-CUM-METHOD WISE:

AREAS/METHODS ACH DDB DIR ECS FLD PDC Grand Total

BARKOT 3 4 5 12
CHAMBA 10 10 2 22
DEHRADUN 192 1 1 3 70 267
HARDWAR 40 31 22 93
KARNPRAYAG 9 5 50 25 89
KOTDWAR 32 26 8 66
RISHIKESH 7 3 1 11
ROORKEE 22 6 15 43

COLLECTION Page 27
 SRINAGAR PAURI GARHWAL 5 2 7
UTTARKASHI 13 23 9 45
VIKASNAGAR 26 1 6 22 55
Grand Total 359 6 1 4 159 181 710

AREA-CUM-METHOD WISE
ACH FLD PDC

72% 71%
64%
56%
48% 51% 51%
45%45% 47%
42% 43% 40%
39%
33% 33% 35%
26% 28% 27% 29% 29%
25% 24%
20%
12% 14% 11%
9% 10% 9%
0% 0%

Interpretation:

 If we compare the delinquent cases data from the above chart and table, it indicates
that the delinquency are more in the area where the cases booked in field collection are
more than the cases booked in ACH.
 As I have mentioned in the AREA WISE bullet point that 50% of the cases of barkot are in
delinquency level because in barkot there are 33% of the cases are booked in Field
collection which is more than 25% of the cases are booked in ACH. Likewise if we see
the data of karnprayag 44% of the cases are in delinquency level, and if we compare it
with method wise there are 56% of the cases booked in Field collection compared to
10% in ACH.

COLLECTION Page 28
  So it is clearly seen that we can decrease the delinquency level not only by follow up the
customers by calling or by visiting, we can also decrease the delinquency level by
converting the customers to ACH mode of payment.

 DUE-DATE WISE:

Due Date/Age Total cases OD cases

1 12 4
5 97 32
10 175 50
15 152 38
20 273 91
25 1 0
Grand Total 710 215

SELECT DATE OD
Series1 Series1
33% 33% 33%
38%
29%
25%

25%
21%

14%

2% 0% 0%

1 5 10 15 20 25 1 5 10 15 20 25

COLLECTION Page 29
Interpretation:

 The above chart of select date shows that 2% of the customers have chosen 1 st as their
due dates, likewise 14% have select 5th, 25% have select 10th, 21% have select 20th, 38% of
the peoples have select 20th as their due date.
 And from the OD chart we can interpret that 33% of the people who have select 1 st as
their due dates are in delinquency level and likewise we can interpret the other data also.
Almost there is same percentage of the customers are in delinquency level of all the due
dates.
 In my opinion, the selection of the due dates is to be customized. It means it should be set
according to the customers need and convenience. Because at the end customer will pay
you once he received from his business or from employer or from any of other source.
 If the Collection timing is not linked to the cash inflow pattern of the borrower, the size of
the soft bucket will increase. For example:
- Collection from salaried employees should be timed with salary credit of the
employees normally at the month end or in the first week of proceeding month.
- In case of SME borrowers the efforts should be linked with the Cash flow on
account of sales.
- In case a collection from agriculturist should be made, then it should be soon
after the crops are sold.

COLLECTION Page 30
  VEHICLE WISE:

VEHICLE TOTAL CASES OD CASES

ALFA 59 16
CAMPER 37 15
BOLERO 61 20
BMT 23 6
PICKUP 135 45
IMPERIO 3 2
JEETO 34 12
MAXIMO 7 4
SUPRO 11 3
BOLERO 140 49
KUV 65 13
NUVOSPORT 5 1
SCORPIO 52 9
THAR 8 2
TUV 34 8
XUV 500 34 9
XYLO 2 1
TOTAL 710 215

COLLECTION Page 31
 COMMERCIAL PERSONAL
Series1 Series1
67%
57% 50%

41% 35%
33% 33% 35% 25% 26%
24%
27% 26% 27% 20% 20% 17%

OD CASES
SEGMENT WISE

personal
43%
commercial
57%

Interpretation:

 From the above chart of commercial vehicle we can see that the 67% of customers who
have purchased imperio are in delinquency and 57% of customers who have purchased
maximo are in delinquency. Generally the customers of imperio or maximo are from the
transporter or supplier kind of business i.e. he may be vegetable supplier, milk supplier,
equipment transporter,etc. so before financing him we can easily evaluate his income
from ITR or bank statements, which help us to evaluate the credit worthiness of the
customers.
 And now if we talk about the personal segment there are 50% of the people who have
purchased the Xylo are not paying their installments properly. The reason behind this

COLLECTION Page 32
 can be high funding to the customers. Basically we are funding 85% LTV of Exshowroom
price and if we fund more than that in some cases, the EMI will increase which leads to
increase in OD afterwards.
 In commercial segment we have financed 135 pickups which is almost 37% compared to
the other vehicles in commercial segment which is seen as huge in number. And if we
talk about the OD cases of Pickup , there are only 45 customers who have not paid their
installments on time which is coming around 33%.
 Now if we focus on OD cases segment wise, we come to know that 57% of the OD cases
include the commercial vehicle customers and 43% of the personal segment customers.
This is because most of the customers of commercial segments are of middle & lower
class who also don’t have the good banking habits and who do not have any good
source of income.

 RC PENDANCY AS ON DEC:

MONTH RC PENDANCY AS ON DEC

JAN 7
FEB 17
MAR 24
APR 24
MAY 36
JUN 42
JUL 46
AUG 44
SEP 41
OCT 73
TOTAL 354

COLLECTION Page 33
  Barriers in collecting RC from Customers:

1) When I am following up the customers to collect the RC’s through whatsapp or by

mailing or by giving personally in our nearest branch, they are saying (yes we will give)
at that time but they forget afterwards.
2) Some of the customers have yet not registered their vehicle.
3) Peoples in the upper area do not use whatsapp or internet and the branches of
Mahindra finance are very far from their homes.
4) We have most of the customers of commercial segments whose vehicles are used for
business purpose and always out of town, so they are keeping the RC’s in their
respective vehicles due to which they are unable to give us.
5) Most of the customer’s phones are not reachable in the upper areas of Uttarakhand due
to which we cannot follow up on a daily basis.
6) Some customers give their RC’s in branch but they forget to update at that time and
misplaced that RC later on.
7) We receive some of the RC on which the hypothecation is wrongly printed, which
cannot be updated in the system.
8) The customers, who are sending the image of their RC’s in whatsapp or mail does not
looking clear, may be they have not clicked the picture clearly.
9) Some of the customers who are thinking dealership & Mahindra finance as one
company are submitting the RC’s to the dealership employees and they are misplacing it
afterwards rather than giving it to us.

COLLECTION Page 34
  Solutions: Some of the solutions which I think will be beneficial to collect the RC’s
and to decrease the RC pendency numbers are as follows:
1) We can request dealer to announce in their workshop that the service of the vehicle
cannot be done without RC. By doing this we can easily collect the RC’S from their
workshops.
2) We can announce in each and every branch of Mahindra finance to tell the customers to
submit RC in the branch whenever customers is visiting our branch for paying the
installments or to clear his doubts.
3) We can prepare the list of pending RC salesman wise and hander over to them for
follow up. Because it will easy to follow up for them as there will 8-10 RC’s per salesman
rather than following up itself which can be very difficult as the numbers will become
354 as mentioned in above table.
4) We can take the registration number from engine no. or chasis no. from their workshop
DMS and issue the Particular form from RTO at RS 200/ particular. But it will create
expense to the company.
5) We should not finance to customers who are purchasing the registration from
themselves, because some of the customers are not registering their vehicles even after
1 year.

COLLECTION Page 35
 Learning’s:
 As I have solved soft bucket cases by calling on them or visiting at their home or
work place, I can now easily understand which customer will pay or not pay their
installments at given time.
 I have also solved some NPA’s by visiting and by following up by collection
executives or business executives. Such as last month I solved:
 Nitesh Singh 4108326: Firstly, I started calling the customer to know the
reason behind not paying the installments on time. After calling three times
I got to know that customer does not have an intention to pay. Then when I
call him for the 4th time he has not picked up my call, so I call his father who
was co-applicant after some time and talked with him as a head of legal
department. I have first tell him that your son is not picking up a call and
asked him to pay atleast 2 EMI within 5 days otherwise your vehicle will be
repossessed.
 Mukesh Juyal 4237954: Mukesh Juyal has a hotel in mussorie and also a
very well known person in politics. But he is never picking up the call from
unknown numbers, and in this case the guarantor and the references are
also not picking our call from any number. So we decided to visit his home
and hotel for collection, but unfortunately he was not there on that day. So
I have announced in the workshop of Mahindra that this number vehicle is
our defaulter so whenever this vehicle comes then don’t let it go without
informing me. So one day when the vehicle came I have stopped there only
and demanded our installments, then he have given 48000 cash.
 I have also collected many RC’s by visiting customers and calling them. I also learnt to
update the RC in the system. I have collected and update approximately 120 RC’s in
these 6 months.
 I have also learnt to talk differently with different categories of customers.
 I have about different techniques to pay the EMI which helps me to give advice to the
customer at the time of collection.

COLLECTION Page 36
  I have also learnt to see the customer statement of account, Repayment schedule so
that I can guide the customer about their AFC, Cheque bouncing, Cheque finished, ACH
not processed, etc.
 I have also converted 5-7 customers from PDC/Field to ACH after this demonetization.

COLLECTION Page 37