Professional Documents
Culture Documents
EXECUTIVE SAMMARY
As a part of our MBA program I undertook internship project at Arihant agency (ASSC) Bajaj
Finserv, on the topic of “A Study on various loans provided by Bajaj Finserv with special
reference to unsecured loans.”
The main aim of the study was to understand various services provided by the Arihant agency
(ASSC) Bajaj Finserv, and to make an in depth study to understand the process of unsecured
loans including documents required, eligibility criteria and interest rates etc. The project gave
me a useful insight on the banking industry in general and debt syndication facilities and the
processes involved in specific.
The forces of change shaping the banking and financial services system worldwide are
fundamental and constant. The intense competitive pressure on the financial system has
generated a variety of products and services to meet the specialized needs of millions of
customers. The impact of these changes in international financial system was felt in India in
the early nineties when she initiated the process of integrating her economy with the global
economic order. This ushered in the phase of financial sector reform in our country reforms.
in today’s fast moving world time is money. Banks have become so efficient in providing
services that the laggards won’t have any place in the market. Only the fitted will survive. The
process involved in sanctioning of such loans of high magnitude is very long and requires a lot
of due diligence from the manager. He may face a lot of hurdles like lack of relevant data or
lengthy appraisal format prescribed by the bank
To conclude, by doing this project I came to know about the banking industry in detail
especially Arihant agency (ASSC) Bajaj Finserv. The debt syndication unsecured loans process
followed by Arihant agency (ASSC) Bajaj Finserv. The service serves the clients by providing
different schemes according to their requirements. There are different schemes in unsecured
loans, which have different policies and procedures to be followed for debt syndication process.
I am lucky to get a good working environment in Arihant agency (ASSC) Bajaj Finserv, where
I was able to learn all those aspects relating to my project.
CHAPTER 1
1. INTRODUCTION
A project report on “A study on various loans provided by Bajaj Finserv with more focus on
unsecured loans” for Arihant agency authorized sales and support channels (ASSC) for Bajaj
finserv understands the unique development of financial sale along with the partners and their
special role in the loan on consumer durable goods with help of retail and dealers partner
ecosystem business to business activities. This study provides practical insight how to convince
the customer and how to develop our channel customer loans, build a plan, and execute
successfully in order to grow revenue to understand the loan dispersion produced and the
mechanism and processers involved in the delivery of loan facility to the customers.
Bajaj Finserv Limited is a financial services company based in India. The company offers a
range of consumer finance, insurance, personal loan, doctor loan, education loan, and wealth
management products and services catering to the requirements of individual and corporate
clients. Its portfolio of products and services includes consumer durable loans, loan on life style
products ,home appliances products, two wheeler and four wheeler financing gold loan,
advisory and services through retailer and dealers of consumer durable goods seller.
The number of community banks engaged in so-called indirect lending has increased, in part
driven by banks’ efforts to increase earnings. In these banks, indirect lending involves a bank
funding consumer purchases of personal goods, life style products, home appliances third party,
typically the retailer selling the goods. Indirect lending raises unique safety and soundness and
consumer compliance risks. This article identifies steps banks should take to manage the risks
of indirect lending.
To understand the loan dispersion procedure and the mechanism and process involved in the
delivery of loan facility to the total customers.
The financial services and wind energy businesses were transferred to Bajaj Finserv Limited
(BFS) as part of the recently concluded demerger from Bajaj Auto Limited, approved by the
High Court of Judicature at Bombay by its order dated 18 December 2007. The demerger was
effective on 31 March 2007
BFS is engaged in life and general insurance businesses through its joint ventures with Allia nz
SE namely Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance
Company Limited.
Bajaj Holdings has been registered as a Non–Banking Financial Company (NBFC) under the
Registration No. N–13.01952 dated 29 October 2009 with Reserve Bank of India (RBI). The
company is classified as a Systemically Important Non–deposit taking NBFC as per RBI
Regulations.
Economic growth and development of any country depends upon a well-knit financial system.
Financial system comprises a set of sub-systems of financial institutions financial markets,
financial instruments and services. Thus a financial system provides a mechanism by which
savings are transformed into investments and it can be said that financial system play an
significant role in economic growth of the country by mobilizing surplus funds and utilizing
them effectively for productive purpose.
Both financial markets and financial institutions play an important role in the financial system
by rendering various financial services to the community. They operate in close combinatio n
with each other
The word "system", in the term "financial system", implies a set of complex and closely
connected or interlined institutions, agents, practices, markets, transactions, claims, and
liabilities in the economy. The financial system is concerned about money, credit and finance -
the three terms are intimately related yet are somewhat different from each other. Indian
financial system consists of financial market, financial instruments and financ ia l
intermediation.
The following are the four main components of Indian Financial system
1. Financial institutions
2. Financial Markets
3. Financial Instruments/Assets/Securities
4. Financial Services.
Financial institutions
Financial institutions are the intermediaries who facilitates smooth functioning of the financ ia l
system by making investors and borrowers meet. They mobilize savings of the surplus units
and allocate them in productive activities promising a better rate of return. Financial institutio ns
also provide services to entities seeking advises on various issues ranging from restructur ing
to diversification plans. They provide whole range of services to the entities who want to raise
funds from the markets elsewhere. Financial institutions act as financial intermediarie s
because they act as middlemen between savers and borrowers. Were these financial institutio ns
may be of Banking or Non-Banking institutions.
Financial Markets
Finance is a prerequisite for modern business and financial institutions play a vital role in
economic system. It's through financial markets the financial system of an economy works.
The main functions of financial markets are:
Financial Services: Efficiency of emerging financial system largely depends upon the quality
and variety of financial services provided by financial intermediaries. The term financ ia l
services can be defined as "activities, benefits and satisfaction connected with sale of money,
that offers to users and customers, financial related value".
Financial sector reforms, the interest rate regime has been largely deregulated with a view
towards better price discovery and efficient resource allocation. Initially, steps were taken to
develop the domestic money market and freeing of the money market rates.
• Cash loan : purchases are made through cash and payment is made periodically.
• Lower charges
Business procedure through which the consumers purchase semi durable and durable
goods other than real estate in order to obtain a series of payments extending over a
period of 3 months to 5 yrs.
Bajaj Finserv Lending, one of the leading Non-banking financial company (NBFC) in
the country, has launched ‘Rural Lending’ business to the all over India its main head
office in puna Maharashtra. The company have a network over 115 branches, 500
dealers started operating the Rural Lending business through 7 branches and 28 business
correspondent across strategic locations in the state of Karnataka. Bajaj Finserv Lending
aims to reach a loan book size of Rs. 200 crores in this business by the end of this
financial year. With this launch, Arihant agency (ASSC) of Bajaj Finserv Lending made
its footprint for the first time in the Nipani and Chikodi rural area. Initially the company
is offering four products in the rural market – 0% interest Consumer Durable loans,
Agriculture based products and loan against Vehicles (2wheelers). Through the later two
products (Gold loans and vehicle refinance), Bajaj Finserv Lending will cater to the two
of the most minimum explored financing needs of the rural customers will help the rural
customers assist their financial needs in agriculture, business and legal matters.
This is the branches handling urban area as well as rural area lending. Bajaj finserv
Started branches are Gokak, Belgaum, Davangeri, Dharawad, Gulbarga, Kundapur,
Raichur, Mangalore, Hubli, Gadag, Bangalore are the first branches which are now fully
operational in Karnataka. Bajaj Finserv Lending will launch 7 more branches and 28
business correspondents in Karnataka within this financial year.
Speaking at the launch of rural lending, Atul Jain, Chief executive officer of Rural
Lending, of Bajaj Finserv Lending said, “Having established ourselves across
businesses in the urban markets, we now expand our footprints in the rural markets as
well”. 65% population lives in rural and is largely an untapped market as far as financ ing
is concerned. Rural lending’s unique services will give us a tremendous first movers
advantage in the smaller markets
• Traders : The predominant agencies that are involved in consumer finance are traders.
They include sales finance companies, hire purchase and other such financ ia l
institutions.
• Commercial Banks: Commercial Banks provide finance for consumer durables. Banks
lend large sum of money at wholesale rate to commercial or sales finance companies,
hire purchase concerns and other such finance companies. Banks also provide
consumers personal loans meant for purchasing consumer durable goods
• Credit Card Institutions: These institutions arrange for credit purchase of consumer
goods through respective banks which issue the credit cards. The credit card system
enables a person to buy credit card services on credit. On presentation of credit card by
the buyer, the seller prepares 3 copies of the sales voucher, one for seller, bank/credit
ANNAPOORNA INSTITUTE OF MANAGEMENT RESERCH, SANKESHWAR
ARIHANT AGENCY (ASSC) OF BAJAJ FINSERV
card company and 3rd for the buyer. The seller forwards a copy to the bank for collectio n.
The seller’s bank forwards all such bills to the card issuing bank or company. The bank
debits the amount to the customers account. The buyer receives monthly statement from
the card issuing bank or company and the amount is to be paid within a period of 20 to
45 days without any additional charges.
• Credit Unions: A credit union is an association of people who agree to save their money
together and in turn provide loans to each other at a relatively lower rate of interest.
Functional structure
Divisional structure
matrix structure
1. Functional structure: Under the function type of organization, all identical activities are
grouped together under one functional department. Each functional department is managed by
a department based on important functions such as finance, marketing, personnel.
3. Matrix structure: In a matrix organization, teams are formed and team member report to
two or more mangers. Matrix structure utilizes functional and division chains of command
simultaneously in the same part of the organization, commonly for one-of-one kind project. It
is used same to develop a new product, to ensure the continuing success of a product to which
several departments directly contribute, and to solve a difficult problem. A matrix organiza tio n
is formed that allows the organization to take advantages of new opportunities.
Consumer Finance
Durable Finance
Lifestyle Finance
Digital Product Finance
EMI Card
Salaried Personal Loan
Loan against FD
Extended warranty
Gold Loan
Professional Loan
Salaried Home Loan ( Loan Balance Transferred)
Today, we are the top financier of Consumer Durables in India, financing one out of every 4
flat paneled televisions sold within the country.
Non-Consumer Finance
Loans not secured with any collateral are called unsecured loans. These loans could be used
for a variety of purposes; namely, personal, professional or business.
Your unsecured loan application is approved based on our confidence in your ability to repay
and your promise to make payments. Your signature on the unsecured loan agreement is all
that you bring to the table. This means that if you default on the unsecured loan, we can't
automatically seize your property. For instance, Bajaj Finserv does not have the ability to seize
your assets if you stop paying the EMIs on an unsecured loan.
However, you must keep in mind that if you fail to make timely payments on an unsecured
loan, you can go deep into debt. This is because unsecured loan interest rates may be quite
high. The reason for this is that you are not giving any collateral as security, like you would
with a secured loan, which places a higher level of risk on the lender. The higher rate of interest
apart, the borrowing limit for this type of loan is usually lower. But the main attraction of
unsecured loans is that the approval process is quicker and faster compared to a secured loan.
Most unsecured loans in India come with a fixed term and a fixed interest rate. As a result, you
get time to repay this kind of loan. It also means that the EMI amount will the same each month
and that interest rate cannot change during the loan tenure.
You must have a clear understanding of how your unsecured loan will work and how much
EMI you will have to pay each month. Before you decide to apply for an unsecured loan, make
sure that you can afford to repay your loan in a timely manner without straining your budget.
1)Personal loans :
Personal loans can be used for just about any purpose, from consolidating debt and paying for
an unexpected expense to funding small home improvements and financing big-ticket
purchases. We may want to know what you're going to use the loan amount for and may even
have a more suitable personal loan for your needs.
2)Business Loan:
If you want to expand your existing business or launch a new and exciting venture,
there may come a time when you may need a business loan. A business loan may help you with
cash flow or to pay for unexpected expenses. As part of the criteria for a business loan, many
lenders will ask you to pledge collateral, such as your home, business equipment or inventor y.
However, if you want to get a business loan but don’t have adequate collateral to put up as
security, an unsecured business loan from Bajaj Finserv may be the ideal alternative for you.
annual fee, and generally you are required to pay the fee regardless of whether you use the
available funds.
Being unsecured in nature, unsecured loans have stricter norms when it comes to
eligibility and approval of the application. We determine eligibility, or in other words,
whether or not you’re likely to repay your unsecured loan by evaluating several basic
factors
A Bajaj Finserv Nippani branch the following types of loans will be provided.
1) Electrical Loan
2) Personal loan
3) Business loan
4) Salary loan
5) Doctor loan
6) Mortgage loan
7) House loan (loan balance transferred)
1) Electric loan: A bajaj finserv nippani branch to provide loan an the electrical good will
be provided house allowance goods consumer durable products like TVs, refrigera tor,
Smart phones, washing machine and related farming machines. the electrical loan will
be provided by salary holders, the electrical loan will be provided an EMI base the
product amount will be pay by monthly wise its could EMI system.
EMI Network:
EMI Card
Durable finance
Lifestyle finance
Lifecare finance
Digital product finance
Clothes and accessories
Travel and holidays
2) Personal loan:
A bajaj finserv nippani branch provided personal loan, personal loan are meant to meet
the personal needs of an individual peoples can use this money for anything they want,
interest rates from bajaj finserv where you only interest as EMI pay up to 45% less EMI
only Rs1292 per lack, the rate of interest on personal loan bajaj finserv 14%
A Personal Loan is a great tool in managing your finances and acts as an impetus in putting
your plans into actions. Here are the unique benefits of Bajaj Finserv Personal Loan.
Get 100% end-to-end online Personal Loan solutions, which include information and assistance
for Personal Loan eligibility criteria and documents, application to approval and disbursal. By
opting for a Personal Loan from Bajaj Finserv you can get instant approval in 5 minutes and
disbursal in your bank within 72 hours, through our online facility. All you need to do is fill an
online form and check your Personal Loan eligibility online. Once approved, a Bajaj Finserv
representative will get in touch with you and collect the documents required for Personal Loan.
We ensure as a standard that funds are at your disposal within 72 hours of the Personal Loan
approval. This is the fastest turnaround time by any NBFC in India.
You can apply for a Personal Loan online from Bajaj Finserv up to Rs.25 lakh and repay it at
your ease by opting for tenures ranging from 24 months to 60 months.
3)Business loan:
The bajaj finserv business loan will be provided by the that particular persons
the main reason is business plan structure and income tax returnees. The need a loan that he
must be luck at the this two thinks. In the nippani branch the business loan will be provided
minimum 4lakh and maximum will be 10lakh. In the market that is bajaj finserv will be provide
loan up to 30lakh. To start a business has need short term loans, intermediate term loan or long
ANNAPOORNA INSTITUTE OF MANAGEMENT RESERCH, SANKESHWAR
ARIHANT AGENCY (ASSC) OF BAJAJ FINSERV
term loan the bajaj finserv loan amount to invest in infrastructure, expand operation, its help to
increase working capital.
4)Salary loan:
The bajaj finserv salary loan loan will be provided by the salary holders to
provide a salary loan he is in government or private employee he must be take salary monthly
the bajaj finserv in provided loan all the required persons the salary loan main objectives is to
provide a loan an employee the minimum salary is Rs 8000 to 10000 that employee is eligib le
for getting loan Rs 50000 to 60000 the loan depends upon the that employee payment. Bajaj
finserv nippani is provided loan minimum will be 1lakh and maximum 10lakh in the market
the amount that is the loan provided capital is more that is Rs25lakh.
5) Doctor loan:
The bajaj finserv doctor loan will be provided in the nippani branch doctor loan will
provide or handled by suraj sir. In the nippani area the doctor loan will more then the all the
loan sector the last month the doctor loan is highest in that area that is provided amount
Rs25lakh.the doctor loan is minimum 3lakh and up to 25lakh.
6)Mortgage loan:
The bajaj finserv mortgage loan will be provided the mortgage loan is
full diffidenble an the Bajaj Finserv offers Loan against Property for self-employed individ ua ls
and for firms and companies. The finest thing about this property loan from Bajaj Finserv is
that you can use it for anything you want. Loan from Bajaj Finserv is your way out during
times when you are low on cash. So if there’s a family wedding coming up or you are planning
to send your child for higher studies abroad, you can avail a Bajaj Finserv property loan and
meet all your monetary requirements .However, you might be wondering why Bajaj Finserv
when there are plenty of other financial organizations available in the market. This is because
Bajaj Finserv is one of the most trusted lenders in the market whom you trust. In the chikkodi
area Agnist property loan will be highest paid to chikkodi village highest.
Types :
The following documents are required to available of the Bajaj Finserv property loan:
Self-employed individual
Application Form
Photograph
Identity Proof
Address proof
Signature Proof
Date of Birth Proof
IT Returns and Balance Sheet and Profit & Loss Account Statement of the last 2 years
Business Continuity Proof for the last 5 years
Bank account statements of the last 6 months
Copy of the property paper which is to be mortgaged
Firms-companies:
Application Form
Director’s Photograph
Identity Proof
Address proof
Signature Proof
Certificate of Incorporation
IT Returns and Balance Sheet and Profit & Loss Account Statement of the last 2 years
Business Continuity Proof for the last 5 years
Bank account statements of the last 6 months
ANNAPOORNA INSTITUTE OF MANAGEMENT RESERCH, SANKESHWAR
ARIHANT AGENCY (ASSC) OF BAJAJ FINSERV
Nippani being the second largest city in Belgaum district with a potential market comparing of
with verity, connected with more than 150 villages more than Nippani has merged as a business
hub.
Due to educational establishment and agree producing and co-operative financial societies and
small industries establishment the life of people is changed were in the demand for electronics,
home appliances consumer durable and farming equipment as increased.
The study focusing on availing the financial aid through Bajaj finserv by developing new
supporting channel partners for Arihant agencies. To study about the how many peoples are
taking a loan and who many peoples or our company customer and what section loan are very
much more or high that are all the understanding and to in-depth study on unsecured loan in
the bajaj finserv provided the following unsecured loans:
1) Business loan
2) Salary loan
4) To study and understand the financial mechanism in the provision of loans and also to
understand the documentation process for secured and unsecured loans provided by
Bajaj Finserv.
5) To study and understand the criteria for loan approval at Bajaj Finserv.
CHAPTER: 2
2.1 LITERATURE REVIEW:
INTRODUCTION:
The main aim of literature review is to take stock of all the work that has been done on the
topic of research, the way it has been approached and the conclusions arrived. In fact the
previous studies act as a guideline, throughout, for the current research so that the results are
not tainted with the earlier findings.
This chapter presents the review of literature related to secured and unsecured loans. The
chapter covers the theoretical reviews, literature review and the chapter summery. The study
therefore addressed the following research objectives; to examine the credit approval process
of unsecured loans in commercial banks, to examine the effect of loan portfolio manage me nt
on unsecured loans in commercial banks and to establish the loan recovery process in
management of unsecured loans in commercial banks.
Faik Koray and Eric T. Hillebrand had studied about the Interest Rate Volatility and Home
Mortgage Loans. They studied that The U.S. economy has experienced substantial fluctuatio ns
in real and nominal interest rates since the 1970s. This paper investigates empirically the
relationship between home mortgage loans and volatility in mortgage rates for the period
1971:02 through 2003:03. Contrary to common wisdom, we find a positive relations hip
between mortgage rate volatility and home mortgage loans. Further investigation indicates that
this is due to volatility in the bond market. In times of high interest volatility, households
disinvest in government securities and invest in real assets, which yield a positive relations hip
between mortgage rate volatility and home mortgage loans.
All banks need to have basic loan portfolio management principles in place in some form.
This includes determining whether the risks associated with the bank’s lending activities are
accurately identified and appropriately communicated to senior management and the board of
directors, and, when necessary, whether appropriate corrective action is taken. John D. Hawke
(Comptroller’s hand book, 1998).
Loan portfolio management (LPM) is the process by which risks that are inherent in the credit
process are managed and controlled. Because review of the loan portfolio management process
is so important, it is a primary supervisory activity. Assessing LPM involves evaluating the
steps bank management takes to identify and control risk throughout the credit process. The
assessment should focus on what management does to identify issues before they become
problems. Specific measurable goals for the portfolios are established by loan portfolio
objectives. They are an outgrowth of the credit culture and risk profile. John D. Hawke
(Comptroller’s Hand Book, 1989:13).
Unsecured lending, specifically personal loans were mostly marketed to the low income
earners in the 1990s. The profile of customers taking up personal loans has changed over time.
Unsecured credit has been growing at a far higher rate than secured credit, more so since the
implosion in the mortgage market in 2008 (World Bank Survey, 2012). Various commenta tors
and government representatives recently expressed concern about the rapid growth of this
portfolio over the last few years especially the personal loans and commercia l papers.
In May 1991 Stephen F. Borde had studied about the “Is the Savings and Loan Industry
Facing Extinction?” This article tells about the saving and loan crisis. Proposed solutions are
discussed in the context of the industry as it currently stands. With a somewhat similar liability
structure to that of banks (mainly short-term deposits), the asset structure of S&Ls is quite
different. Whereas banks assets consist of short-term loans, S&L assets consist largely of long-
term loans, such as home ownership mortgages. Therefore, in the absence of adequate hedging
measures, S&Ls are more vulnerable to interest rate risk, which can lead to lower profits when
interest rates rise.
Loan portfolios are loans that have been made or bought by institutions. The value of a loan
portfolio depends not only on the interest rates earned on the loans, but also on the quality or
like hood that interest and principal will be paid. Thus they are held for repayment. Loan
portfolios are the major asset of banks which need thrift like any other lending. The loan
portfolio is typically the largest asset and the predominate source of revenue. As such, it is one
of the greatest sources of risk to a bank’s safety and soundness. The level of interest risk
attributed to the bank’s lending activities depends on the composition of its loan portfolio and
the degree to which the terms of its loans (e.g., maturity, rate structure, and embedded options)
expose the bank’s revenue stream to changes in rates. John D. Hawke (Comptroller’s hand
book, 1998:6)
The largest credit risk inherent in any commercial bank lies heavily and almost entirely on its
loan portfolio. Loan portfolio is essentially the largest asset base Banks boasts about and it is
the predominantly greatest source of income (Morsman, 2003). Financial performance is the
single most important factor in assessing growth potential, earnings and overall financ ia l
strength (Richardson, 2002). In view of Richardson’s postulation, then a proper loan portfolio
management is critical so as to maximize the returns and its performance wholesomely.
Effective management of loan portfolio and credit function is fundamental to a bank’s safety
and soundness. Loan portfolio management is the process by which risks that are inherent in
the credit process are managed and controlled. Good loan portfolio managers have concentrated
most of their effort on prudently approving loans and carefully monitoring loan performance.
In august2004 Mark Carey and Greg Nini had studied about the Corporate Loan Market
Globally Integrated? A Pricing Puzzle. We offer evidence that interest rate spreads on
syndicated loans to corporate borrowers are economically significantly smaller in Europe than
in the U.S., other things equal. Differences in borrower, loan and lender characteristics
associated with equilibrium mechanisms suggested in the literature do not appear to explain
the phenomenon. Borrowers overwhelmingly issue in their natural home market and bank
portfolios display significant home "bias." This may explain why pricing discrepancies are not
competed away, but the fundamental causes of the discrepancies remain a puzzle. Thus,
important determinants of loan origination market outcomes remain to be identified, home
"bias" appears to be material for pricing, and corporate financing costs differ in Europe and the
U.S.
Churchill and Frankiewicz (2006) suggest that control is one of the functions of managers
and nowhere is a discussion about controls more important than when addressing risks. When
designing a credit management strategy, the unsecured loans controls to prevent or mitigate
risks should be extremely clear and specific, and they need to be carefully monitored to ensure
that they work. Controls can be conceived and structured in different ways for example; loan
size limits for new borrowers who do not have collateral can be kept small to mitigate the
banks’ exposure until it gets to know them better. Mutua (2000) notes that evaluation of risk
measures does not differ much from assessment of other key performance indicators in
different industries.
Esipisu (2007) notes that Global bank finance is a rapidly growing dynamic sector that offers
useful services, while posing some risks. Looking at the American market, supervision in USA
banks operations needs sophisticated systems to monitor and respond to changing risks, in
order to protect depositor funds, while fostering critically needed financial inclusion. This
niche market can develop into an effective funding channel for emerging small businesses.
However, it needs a proper capital structure, good corporate governance and relevant data on
both lenders and borrowers through participation in credit bureaus.
In October 14, 2008 David P. Bernstein had studied about the Home Equity Loans and
Private Mortgage Insurance: Recent Trends & Potential Implications. They studied about the
impact of increased use of home equity lines and decreased private mortgage insurance (PMI)
on mortgage markets. The data confirms that in the years leading up to the mortgage crisis
home buyers and lenders have aggressively used piggyback loans to avoid taking out PMI on
first mortgages. Multiple- mortgage financing packages as a percent of newly originated
mortgages (mortgages originated within the previous five years) went from 14.8% in survey
year 2001 to 21.5% in survey year 2007. The multiple- mortgage percentage for seasoned
mortgages (mortgages originated more than five years prior to the origination date) also
increased by a modest amount. Further comparisons reveal a large decrease in the proportion
of mortgages with PMI with the largest decreases in PMI coverage occurring among newly
originated multiple- lien packages. Data from the SCF was used to compare five financ ia l
characteristics (credit card debt, installment loans, consumer credit, home-owners equity, and
liquid assets) for multiple-lien versus single- lien households. The comparisons suggest single-
lien households tend to have slightly stronger financial variables than multiple- lie n
households.The data does not support the view that homeowners with multiple- liens are less
risky and should therefore be allowed to avoid PMI. The reduced use of PMI and the increased
use of home equity loans increased mortgage holder risk in several different ways and was a
contributing factor to the 2008 mortgage and financial crisis.
For Kenyan banks, Bagachwa (2009) in his study established that having agreed to the terms
of credit with a repayment duration which is clear to all concerned; the creditor has a
responsibility in his own best interests to ensure that the customer keeps to his promises. The
customer knows that his pattern of late payment has been accepted as satisfactory by the
creditor and that a precedent has been established. The outcome is that the creditor cannot now
enforce the original credit terms because he has endorsed new terms. The option that is now
available is for the creditor and the bank to sit and start the negotiations afresh. This scenario
is all too common and a professional credit manager should never allow it to happen.
Kitua (2009) explains that the issue will usually be present during the first stage of loan
application and further becomes more serious during the loan approval, monitoring and
controlling stages, especially when policies, procedures and strategies related to credit
processing as stipulated in the Credit Rate Management (CRM) guidelines are not followed,
are weak, incomplete or not followed. Every indicator is a measure an element of a key success
factor in a given area. For example, in case of unsecured loans measures, one can talk about
such indicators as a ratio of good and bad credits, number of good credits issued to small
businesses, ratio of long and short term credits, percentage of secured loans, number of credits
on favorable terms, credit history, creditworthiness rate etc. Each category alone does not tell
much but a combination of unsecured loans control measures will certainly help bank employee
make a well informed decision on whether or not to issue a loan (Braverman & Guasch, 2009).
Abrahams & Zhan (2009) argue that costumer whose risk is higher often gives a premium
interest rate so as to receive credit or borrow money. This higher interest rate govern to such
customers mitigates the loss that can be incurred incase the borrower defaults on repaying the
loan. The forecasting of loss involves the identification of the characteristics of the borrower
and identifying any unsecured loans using the identified characteristics. The characteristics can
be in form of income level, past delinquency rate or charge-offs. Migiri (2002) indicates that
these include seasonal indexing and vintage curve techniques to identify the level of risk with
a particular borrower. Seasonal indexing identifies the borrowers risk levels at different times
of the year. The use of vintage cure techniques comes up with graphs on credit extended at
different periods of time delinquency rates. It assists to access an unsecured high risk loan
which has interest rates that can be affordable but there are also things a borrower can do to
improve his/her situation of accessing such a loan.
The credit period is given by the credit terms. Credit period is the time period within which
credit is given. The length of the credit period is influenced by sometimes the Collateral value,
the unsecured loans, the size of the account and market competition (Braverman, and Guasch,
2009).
A good policy is one which strikes a balance between customer retention and defection to
facilitate outreach. A credit collection policy enables a bank to limit bad debts and improve
cash flows since loans are in most cases the core business activities in banks (Kariuki, 2010).
Chernykh & Theodossiou (2011) stated that the Bank’s credit risk exposure is also
concentrated essentially in the first category that accounts for approximately 50% of the total
disbursed and undisbursed portion of the loan portfolio. This makes the Bank’s portfolio
vulnerable to any adverse developments in the risk profile of the countries in this category. The
recent deterioration in the macro-economic and socio-political situation has resulted in
increased calls for the Bank, as lender of last resort, to provide adequate response through
increased lending in support of the reforms necessary to pave the way to regenerate growth
while at the same time ensuring equitable allocation of resources and protecting its balance
sheet.
According to Agene (2011) credit risk on unsecured loans portfolio is the deterioration in loan
portfolio quality that results in loan losses and high delinquency management costs. Willia ms
(2004) defined credit risk on unsecured loans as the risk of losing contractually obligated cash
flows promised by a corporation, financial institution, government, etc. (the counterparty) due
to default on the debt obligation. Defaults are usually associated with a credit event such a
bankruptcy or reorganization, although delinquency in payment may also be considered a credit
event even if there is not a formal bankruptcy.
Financial publications in india have put unsecured lending in the spotlight (Whitfield, 2011)
as the Credit Regulator (Credit Regulator, 2012) question the unsecured lending growth that
has taken place in the recent past. The Federal Trade Commission defines unsecured lending
as a debt that is not tied to any asset. In this project, unsecured credit is considered to be credit
that is not collaterized by any assets to which the creditor can have recourse in case of failure
by the debtor to meet the credit obligations. An unsecured loan is issued and supported only by
the borrower's creditworthiness, rather than by some sort of collateral Esipisu (2007). Unlike a
secured loan, an unsecured loan does not require backing by assets. It is often based on the
borrower’s credit history and his/her ability to pay. Unsecured loans also include bank
overdrafts,, lines of credit and personal loans. Getting an unsecured loan can be more diffic ult
than getting a secured loan if the borrower does not have an established or good credit rating.
Although a credit check is not always required, it is most often necessary to ensure that the
borrower has a history of paying off his debt. Depending on the type of unsecured loan the
borrower is looking for, it can be applied for either online or manually from a financ ia l
institution.
The demand for unsecured personal loans is seen in the increasing number of applications that
have been made by consumers. This is a product that credit providers have focused on in
meeting the demand for credit. Factors that have influenced growth in this regard include the
relative ease and speed at which the likes of unsecured personal loans can be obtained.
Unsecured personal loans have represented an attractive market opportunity for credit
providers who have actively pursued a lending growth strategy in this product, particularly as
a result of the margins that can be made in the current market (World Bank Survey, 2012).
Majority of commercial banks have entered into memorandum of understanding (MOU) with
employers who have agreed to deduct loan monthly repayments from their payrolls and submit
the funds direct to the banks.
Portfolio Risk Profile The Bank environment of operation is often very evolving and
challenging which further shapes the risk profile of future portfolios. This is compounded by
the necessity to service different types of clients with diverse needs (Migiri, 2012). While
Graeber (2007) assert that low risk investment grade and non-investment grade with high
absorptive capacity located mostly within Africa region. They are experiencing socio-politica l
problems and credit rating downgrades; Low risk countries with stable outlook and small
absorptive capacity; and Low Income Countries (LICs) eligible only for non-sovereign
guaranteed lending with relatively small credit limits. Some of them have recently come out of
debt relief.
Unsecured loans are not a full substitute for secured lending in that, due to their terms and
conditions, they will not be appropriate for financing the entire spectrum of assets that are
acquired by consumers. There is some degree of overlap and, to an extent unsecured personal
loans are complementary to secured lending. A direct comparison of the costs between
unsecured personal loans and secured lending products should be seen within the context of
the respective product characteristics (Credit Regulator, 2012).
It is very imperative to note that most small businesses and individual firms have no collateral
to offer for borrowing hence they borrow without security under unsecured lending. Managing
the loan portfolio between the various products offered is extremely vital as both secured loans
and unsecured loans contribute to loan performance. Effective management of loan portfolio
and credit function which is fundamental to a bank’s safety and soundness should be carried
out on both secured lending and unsecured lending.
Accordingly Duffie & Singleton (2013) it was noted that continuous oversight and monitor ing
is critical in management of unsecured loans. The annual Portfolio Credit Risk Review, part of
such oversight and monitoring in banks focuses on stress testing and scenario analysis. It
provides the credit offices with an assessment of developments in the Bank’s portfolio risk
profile and measures contemplated/or being taken to mitigate these risks in unsecured loans.
According to Warui (2012) the operating environment of the Bank portfolio has been volatile .
However, the overall portfolio risk profile remains good, due in large part to the many
enhancements made to the Bank’s risk management framework, including the proactive
measures taken to address the expected negative impacts of the deteriorating credit
environment.
Institutional Governance of Unsecured Loans Nayar (2013) found that the loan portfolio
growth momentum is maintained above precrisis levels - Following the unprecedented growth
rates in 2009 for the banks portfolio in Kenyan Banks, approvals and disbursements of the
Bank’s total lending loan portfolio had significantly decreased in 2010 but begun to slowly
increase from the year 2011. Loan disbursement/commitment lags continue to be apparent;
hence further efforts are deployed before approval to ensure the readiness of new transactions
from different operational perspectives.
Nayar (2013) indicated that the concentration on loan risk portfolio, although improving,
remains high with little scope for diversification in the bank’s loan portfolio. The constraining
factors on diversification include among others: the credit policy of the Bank and the lack of
cost effective hedging possibilities in the current market environment. Such high regional and
sector concentrations could affect the portfolio quality. There are several threats and risks
associated with the spill-over effects of the ongoing financial market turbulence and socio-
political transitions on the continent begin to be felt in these regions and sectors.
Investopedia Accademy:
An unsecured loan is a loan that is issued and supported only by the borrower's
creditworthiness, rather than by any type of collateral. An unsecured loan is one that is obtained
without the use of property as collateral for the loan, and it is also called a signature loan or a
personal loan. Borrowers generally must have high credit ratings to be approved for certain
unsecured loans.
Investopedia Accademy:
unsecured loan, the lender cannot claim property. However, the lender has can take other
actions, such as commissioning a collection agency to collect the debt or taking the borrower
to court. If the court rules in the lender's favor, the borrower's wages may be garnished, a lien
may be placed on the borrower's home, or the borrower may be otherwise ordered to pay the
debt.
Robert B. Avery and Allen N. Berger had studied about the Loan commitments and bank
risk exposure. They studied about the Loan commitments increase a bank's risk by obligating
it to issue future loans under terms that it might otherwise refuse. However, moral hazard and
adverse selection problems potentially may result in these contracts being rationed or sorted.
Depending on the relative risks of the borrowers who do and do not receive commitme nts,
commitment loans could be safer or riskier on average than other loans. The empirical results
indicate that commitment loans tend to have slightly better than average performance,
suggesting that commitments generate little risk or that this risk is offset by the selection of
safer borrowers
CHAPTER-3
Diversified financial services holding company with presence across lending, insurance and
investment management businesses with a strong focus on the fast growing retail and SME
segments has a track record of building large scale, profitable and sustainable businesses, led
by professional management teams. Bajaj Finserv aims to be a Pan-India financial services
business focused on sustainable profitable growth.
The financial services and wind energy businesses were transferred to Bajaj Finserv Limited
(BFS) as part of the recently concluded demerger from Bajaj Auto Limited, approved by the
High Court of Judicature at Bombay by its order dated 18 December 2007. The demerger was
effective on 31 March 2007
BFS is engaged in life and general insurance businesses through its joint ventures with Allia nz
SE namely Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance
Company Limited.
Bajaj Holdings has been registered as a Non–Banking Financial Company (NBFC) under the
Registration No. N–13.01952 dated 29 October 2009 with Reserve Bank of India (RBI). The
company is classified as a Systemically Important Non–deposit taking NBFC as per RBI
Regulations.
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 stock
and also facilitate transparent benchmarking of the companies to their peerin their respective
industries.
The constantly changing demographics and dynamic s of the Indian economy, has led to
creation of various needs of the average 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.
The company through its joint ventures and subsidiaries employs over 20,000 employees and
has established a nationwide presence across over 1400 locations. The company is currently
engaged in consumer finance businesses, life insurance, and general insurance and has plans to
expand its business by offering a wide array of financial products and services in India. A part
from financial services, Bajaj Finserv is also active in wind–energy generation,
Vision
Bajaj Finserv has a vision to become a full-fledged financial services company and be the
financial partner to the Indian consumer and help him across his financial needs, whether for
finance, for investment management, for protection or for post-retirement support, througho ut
his lifecycle.
Mission
Bajaj Finserv aims to be the most useful, reliable and efficient provider of Financial Services.
It is our continuous endeavor to be a trustworthy advisor to our clients, helping them achieve
their financial goals.
A key issue in accomplish the goals identification in the planning process is structured the work
of the organization. Organization is group of people, with ideas and resources working towards
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
decision making framework by which job tasks are divided, grouped, and coordinated.
Formalization is explicitly defined and its structure. It is procedures, and goals are clearly
stated. It is the office organization structure conceived and built by top management. the formal
organization can be seen and represented in chart form. An organization chart display the
structure and shows job titles, lines of authority and relationship between departments.
ORGANIZATION STRCTURE:
Ba ja j Holdings and
Investement Li mited
(Li s ted)
Ba ja j Allianz Li fe and
Ba ja ja Financial
Ba ja j Finance Li mited General Insurence
Sol ution Li mited
Lea ding Coma pany Li mited
Wea lth Ma nagement
Protecti on a nd Retailer
Functional structure
Divisional structure
matrix structure
1. Functional structure: Under the function type of organization, all identical activities are
grouped together under one functional department. Each functional department is managed by
a department based on important functions such as finance, marketing, personnel.
3. Matrix structure: In a matrix organization, teams are formed and team member report to
two or more mangers. Matrix structure utilizes functional and division chains of command
simultaneously in the same part of the organization, commonly for one-of-one kind project. It
is used same to develop a new product, to ensure the continuing success of a product to which
several departments directly contribute, and to solve a difficult problem. A matrix organiza tio n
is formed that allows the organization to take advantages of new opportunities.
Marketing
Bajaj Finserv Limited is a financial services company based in India.The companies have a
network over 115 branches in India, more than 500 dealers and tie up with 1500 brands.
The financial services company of the bajaj group has unveiled a new brand identity to present
a uniform and common identity across its business
Bajaj finserv, the financial of the Bajaj group, has announced its brand identity. All busines ses
under Bajaj finserv will use the common identity for consumers to experience the common
values of the company. A logo has been unveiled with the letters ‘BF’ ( B form the Bajaj logo
and F from finserv).while finserv has formed eight year ago, they did not rebrand it.
Name Designation
NanooPamnani Vice-chairman
D.J.Balajirao Director
RAJEEV JAIN
(CEO)
DEVANG MODI
(PRESIDENT CONSUMER BUSINESS)
DEEPAK REDDY
(CHIEF HUMAN RESOURCES)
MANEV MIANVAL
(GROUP MARKET ING HEAD)
AMIT GAIND
(BUSINES HEAD-MORTGAGES)
ASHISH PANCHAL
(CREADIT HEAD)
AMIT RAGHUVANSHI
(B-HEAD-SALES FINANAVE)
AT UL JAIN
( CHIEF COLLECT ION OFFICER)
BAJAJ FINSERV
LIMITED
BAJAJ HOUSING
FINANCE
LIMITED
BAJAJ FINANCE
SECUTIES LIMITED
Bajaj Finserv is the financial services arm of the Bajaj group with business lending, protection
and relationship management through its various subsidiaries.
We understand the primal desire to create a better and bolder reality. Trying to achieve success
is the fuel, the bare necessity that drives each and every one of us. We understand that it comes
with access to money as a precondition.
Today, Bajaj group of company the most diversified non-bank in the country, financing the
widest set of outcomes. The cornerstone of success lies in simply understanding customer
issues and pain points, and the fact that customer pursuits are not limited to a few areas of
people life only. Since, company understand these issues, we are able to create products and
services which places the advantage in consumer court.
The Bajaj group of company are driven by the simple philosophy of ‘Go for Great’. For us,
every milestone is an indication to better ourselves further and improve on Bajaj achieveme nts.
Greatness is an unending journey, and it is this journey that we celebrate.
Board of management entire portfolio is designed to enable you to take control of people
aspirations. Aspirations as varied as improving the lifestyle, buying a home, indulging in that
much deserved family holiday to expanding consumer business or making that big acquisitio n,
whatever be the plan, Bajaj group have the capability to support it.
Through the deep investments in technology, processes and people, we have ensured we deliver
what company promise. We partner with the best in the game across the world to cut process
time and sift out unnecessary details. We put a result oriented work culture ahead of everything
else. We keep as much focus on simplifying life for our existing customers as we do for
acquiring new ones.
Bajaj Finance
The company offers loans for Bajaj Auto Two Wheelers and four wheeler under the name of
Bajaj Auto Finance. The company offers 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.
It is a union between Allianz SE, one of the largest Insurance Company and Bajaj Finserv.
Allianz SE is a leading insurance conglomerate globally and one of the largest asset managers
in the world, managing assets worth over a Trillion (Over Rs 55, 00,000 crore). Allianz SE has
over 119 years of financial experience and is present in over 70 countries around the world.
It is a joint venture between Bajaj Finserv Limited (recently demerged from Bajaj Auto
Limited) and Allianz SE. Both enjoy a reputation of expertise, stability and strength. Bajaj
Allianz General Insurance received the Insurance Regulatory and Development Authority
(IRDA) certificate of Registration on 2nd May, 2001 to conduct General Insurance business
(including Health Insurance business) in India. The Company has an authorized and paid up
capital of Rs 110 crores. Bajaj Finserv Limited holds 74% and the remaining 26% is held by
Allianz, SE. As on 31st March 2010, Bajaj Allianz General Insurance maintained its premier
position in the industry by achieving growth as well as profitability. Bajaj Allianz has made a
profit before tax of Rs 180 crore and has become the only private insurer to cross the Rs 100
crore mark in profit before tax in the last four years. The profit after tax was Rs 121 crore,
27% higher than the previous year.
A home loan helps you to buy dream home. Bajaj finserv home loans are tailored for differe nt
house hunter. A unique offering to customer who are buying ready to occupy property. while
we found you dream home we also understand that customer needs to spend on the fixtures
and fitting to make the place yours.
Consumer Finance
Durable Finance
Lifestyle Finance
Digital Product Finance
EMI Card
Salaried Personal Loan
Loan against FD
Extended warranty
Gold Loan
Professional Loan
Salaried Home Loan
Today, we are the top financier of Consumer Durables in India, financing one out of every 4
flat paneled televisions sold within the country.
Non-Consumer Finance
Present in the top 40 cities in India, the above two businesses are growing at the rate
comfortably higher than the industry. Recently, we launched another industry first – end to end
online application and disbursal module for Loan against Shares.
Commercial Lending
Infrastructure Finance
Vendor FinancingVendor financing business is now six years old. It focuses on short
and medium term lending requirements of vendors of large auto manufacturers.
Investment
Fixed Deposit
Mutual Funds
Re-launched in 2014, the Fixed Deposit scheme of the company is accredited with the highest
degree of safety by CRISIL via FAAA rating
Bajaj Finserv leading an innovation product in 2011-2012 for its existing consumer
durable finance customer.
Though the EMI card, an existing customer can by any consumer durable by simply
swiping the EMI card across our dealer partner outlets, without the need for any
repeated documention.
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 relations hip
with our existing customers.
Tracking methodology of customer is very smooth (by using EMI card)
Now simply swipe, sign and Buy any consumer durable or life style product of
your choice with your EMI (Existing Member Identification Card). Only from
Bajaj Finserv Leading. No need to gather another set of documents or go
through the process of applying for a loan.
The pre-approved loan on our EMI card depends on the loan amount assigned
to BFL at the time of we are taking a Consumer Durable or Lifestyle product
loan. This loan amount varies from Rs 30000 to Rs 1,25,000/-
We can use the EMI card at any of our partner retail outlets across 65cities in
India.
The EMI card carries a pre-approved loan in our wallet. We can avail of
our loan facility to our purchase any consumer durable and lifestyle product of our
choice.
Instant approval:
Simply swipe, sign and Buy with our EMI card. The moment we swipe
our card. We can get instant approval, subject to the amount pre-approved for you.
Minimum documentation:
For using your EMI card, we don’t want to give any documents. Our
EMI card carries all the necessary information required.
Pre-approved offers:
As an exiting customer, we can get exclusive pre-approved offers from
time to time across a host of your partner retailers and manufactures.
We can apply online anytime though your customer portal. Make an online
payment of Rs,249 and our EMI card will come with in 3 month.
Only the following documents are required for getting your EMI card:
Open ECS mandate duly signed (Open ECS is same as other ECS with an
extended period so that we don’t have to give fresh ECS for you purchase in
future.)
One cancelled cheque
KYC formalities (valid photo id proof and address proof)
Performance Highlights
Human resource department is the important which is very essential for the betterment of the
organization. More than 80% managers spend time handling human resource. A very common
problem that exists is conflict in intra- department or in working and management, so HRM
plays as a tool to resolve this problem efficiently.
Human resource department is playing a very crucial role in the organization and it is helping
out to carry out all the functions in the organization effectively. In the field financial, marketing,
services department head will forecast manpower requirement and send the report containing
detailed information regard the required no of candidates, qualification required. the report will
be taken HR department. Issue is disclosed there and decision is taken.
Therefore the company puts a great deal of emphasis on talent acquisition, developme nt,
retention and motivation. On the acquisition front company has a well developed program,
which is a cross department training program designed for new recruit, and ensure a regular
talent flow within the company. On the training and development front, company has spent
consideration time in enhancing skill of its sales force.
Objectives
To recruit quality personnel and to provide necessary training and development etc.
To poster commitment for the individuals to the success of the company
To utilize people to their full capacity by providing them meaningful job, tasks,
responsibilities and recognition and uplift the moral of employees.
Functions
Recruitment
Target setting performance appraisal
Promotion and transfer
Training developing
Motivational activities
Human resources development
Opportunities
They enable encourage and empower employees can perform their best and quality
service that is customer oriented.
They enable encourage and empower employees to learn, look the following attributes
in individual when they hire, communication, team work, quality consciousness,
customer focus and handling them.
Our Auto promotion policy allows eligible employees at Manager or above level to be
automatically promoted to the next grade, basis their achievements and performance. The
employee in this case, continues to work in the same role and at the same location.
Our internal Job posting policy provides an opportunity to employees to apply for open roles
in other businesses and functions within the organisation. While this helps the organisation to
glue up the culture it also helps employees gain cross functional knowledge through differe nt
roles in different businesses. It nurtures our internal talent pool for leadership and general
management roles.
For employees, who are not able to tap opportunities through either Internal Job Postings or
Auto Promotion in a period of 4 years our Job Rotation Policy prioritizes and enables their
movement to alternate roles or functions?
All three policies combined enable our entire Human Capital pool to tap into continuo us ly
emerging opportunities across businesses and locations.
Engagement
For us engagement is the cord that knits our diverse Human Capital into a tight culture. We
continuously engage our people across businesses and locations through a host of initiatives.
These help us foster a culture of inclusiveness and belonging.
For people who push the limits, rewards and recognition need to be stretched as well. ‘Do more.
Earn more’ is the belief that underscores our approach to rewarding and recognising our Human
Capital. It empowers and encourages our employees to consistently perform and exceed
expectations.
Arihant Agency Authorized Sales and Support Centre (ASSC) Of Bajaj Finserv Limite d
Nipani
RAKESH SAWANTE
SALES/RECOVERY
(Branch Incharge)
JAIHENDRA
SHINDE SALES/RECOVERY
(ACCOUNTANT)
Introduction
Arihant agency issales and support channel of Bajaj finserv lending limited which is being managed
under the supervision of Bajaj finserv. There supporting channel extends to Nipani and Chikodi
surrounded area. To supply the prestigious wide range of durable goods finance and provide the best
financial service trough Bajaj finserv to the customers of this area. It undertakes marketing, financial
sales, promotion of the services, and developing new and existing dealers or retailer of consumer
durable goods seller firm services.
The main Moto of the Arihant agency is to provide best financial service to the needy people and they
strongly believed in the fulfillment of the customer’s expectation and desire.
The employees of the organization are having good qualification in their respective designation and
hard working in nature. By the reputation and goodwill earned in 6 month of establishment has captured
the market of whole of the Nipani and Chikodi rural area division.
Bajaj has tied up with the like Electronics showrooms, super markets, and more local retailers,
and is in advanced stages of rolling out the scheme with other large retail chains. Consumers
running up a bill value exceeding Rs 5,000 can opt for the scheme.
Arihant agency Create Tie up Partner Programs Instead of just one program for channel
partners creating different channel partner that has special incentives and perks. The tiers can
be based on performing the overall sales, customer capability and enquiries of other
quantifiable metrics.
Channel Marketing Plan – The art of maintaining channel relationships with retailers and
dealers of consumer goods suppliers
Products Covered
0% interest Consumer Durables Finance is available on a wide range of products and in over
we suggested shop. Hereunder is an indicative list of products covered.
LED/LCD/television
Washing Machines
Microwave Ovens
Refrigerators,
Cameras/Camcorders
Dishwashers
Generators
Cooking Range products
Dryers
Laptops / Desktops
Smart phones
Air purifiers / Water Purifiers
Music Systems
Inverters
Air conditioners
Agro products and machines
Work flow:
Technology:
We deploy technology not to take the human touch away but to give you a richer customer
experience, allowing you to exercise your choices even when it comes to being serviced.
Because technology alone is not the output, it is the creativity with which it is used that delivers
the objective.
Quality system
Team ground and is always on the alert for any grievance, issue or concern any of the
customers brings to attention. No grievance is too minor. It is this spirit that drives to deliver
customer exhilaration, not just customer satisfaction.
At Bajaj Finserv, firmly believe that being accessible and accountable is the key to a healthy
relationship. Bajaj finserv also have a strong Branch franchise with a dedicated Customer
Service Executive operating from 10 AM to 5 PM Monday to Friday. Saturday is half day.
Bajaj Finserv believes in building Trust through Transparency. It is this motto that allows to
do both - acknowledge your support and to apologize for any inadvertent errors or grievance
we may have caused you during the course of transactions.
As we embark on this journey, we assure of you that one thing won't change - an assurance of
our best service to you at all times.
Compition:
In the market filed number of compettators or entered but the fev number of cmetitore are
stand in the market. In the view of non banking sector REALIANCE, HDFC,TATA capital and
more institutes computing with bajaj finserv . all most bankers are enterd in rural area to
develop and provide financial services.
The bajaj finserv providing more than more scheems and benefits the customer and a very
huge prefoming in consumore loan.
Awards
Top 3 Financial Services Company:
We're proud to be ranked amongst the Top 3 Financial Services Companies to work for in
India. The ranking was conferred on us by Great Places to Work (GPTW), the gold standard in
ranking the world’s best workplaces, at a special event hosted in Mumbai on 21 June, 2013.
GPTW conducts this survey every year amongst more than 500 companies across India. This
year more than 530 companies participated in the survey.
CIO 100:
Recently, we also won the CIO 100 Innovation award for two of our innovations - Card and
Flexi saver.CIO 100 is an annual award program that recognizes organizations that exemplify
the highest level of operational and strategic excellence in information technology
(IT). CIO magazine has a long and proud tradition of honoring leading companies for business
and technology leadership and innovations through its premiere award program – CIO100.
Now in its 25th year in the USA, it is an acknowledged mark of enterprise IT excellence. It’s a
celebration of 100 organizations (and the people within them) that are using informa tio n
technology in innovative ways to deliver business value, whether by creating competitive
advantage, optimizing business processes, enabling growth or improving relationships with
customers. Hosted in countries such as Canada, Sweden, Australia, Singapore, Vietnam,
Hungary and India, the CIO 100 Awards is a truly global recognition. It is an acknowledged
mark of excellence in enterprise IT.
CSR ACTIVITIES:
The corporate social responsibility (CSR) activities of Bajaj group are guided by the vision and
philosophy of its founding father, late shriJanmal Bajaj, who embodied ethical, value-based
and transparent functioning.
Bajaj group, thus, took the unprecedented step of using business to serve society over a century
ago. Shri Jamnalal Bajaj strongly believed that “common good was more important than
individual gain” though the group stands tall in the corporate world, with high ranking in terms
of market capitalization, turnover, profit, rang of products and services and various other
parameters, Bajaj group believe that the true and full measure of growth, success and progress
lies beyond balance sheets or conventional economic indices.throug its social investment, Bajaj
group addresses the needs of communities residing in the vicinity of its facilities, taking
sustainable initiatives in the areas of health education, environment conservatio n,
infrastructure and community development and response to natural calamities.
The core laments of CSR is the continuing commitment by business to ethical princip les,
protection of human rights, care for the environment while improving the quality of all the
local community and society at large.
In particular, the company will undertake CSR activities as specified in schedule 7 to the
companies act, 2013 but will not be limited to the following:
1) Eradicating hunger, poverty and malnutrition , promoting preventive health care and
sanitation and making availability safe drinking water;
2) Literacy/ awareness programs and activities in various social and well being areas
3) The CSR cell may also work with any NGO’s or institution to design and imple me nt
innovative project independency or through partnership between institutions/trust.
4) The process for implementation of CSR programs will involve the identification of
programs, area of CSR activities, project based approach, time period, cost of the project
etc.
Weakness
Opportunities
Threats
CHPATER 4
Types of Loans:
Personal loans –We can get these loans at almost any bank. The good news is that you can
usually spend the money however you like. You might go on vacation, buy a jet ski or get a
new television. Personal loans are often unsecured and fairly easy to get if you have average
credit history. The downside is that they are usually for small amounts, typically not going over
$5,000, and the interest rates are higher than secured loans.
Cash advances - If you are in a pinch and need money quickly, cash advances from your credit
card company or other payday loan institutions are an option. These loans are easy to get, but
can have extremely high interest rates. They usually are only for small amounts: typically
$1,000 or less. These loans should really only be considered when there are no other alternative
ways to get money.
Student loans - These are great ways to help finance a college education. The most common
loans are Stafford loans and Perkins loans. The interest rates are very reasonable, and you
usually don't have to pay the loans back while you are a full-time college student. The downside
is that these loans can add up to well over $100,000 in the course of four, six or eight years,
leaving new graduates with huge debts as they embark on their new careers.
Mortgage loans - This is most likely the biggest loan you will ever get! If you are looking to
purchase your first home or some form of real estate, this is likely the best option. These loans
are secured by the house or property you are buying. That means if you don't make your
payments in a timely manner, the bank or lender can take your house or property back!
Mortgages help people get into homes that would otherwise take years to save for. They are
often structured in 10-, 15- or 30-year terms, and the interest you pay is tax-deductible and
fairly low compared to other loans.
Home-equity loans and lines of credit - Homeowners can borrow against equity they have in
their house with these types of loans. The equity or loan amount would be the differe nce
between the appraised value of home and the amount you still owe on your mortgage. These
loans are good for home additions, home improvements or debt consolidation. The interest rate
is often tax deductible and also fairly low compared to other loans.
Small business loans - Local banks usually offer these loans to people looking to start a
business. They do require a little more work than normal and often require a business plan to
show the validity of what you are doing. These are often secured loans, so you will have to
pledge some personal assets as collateral in case the business fails.
Problem identification:
The main objective of my study was to understand in details about various loans available with
more impeces on unsecured loan provided by Bajaj Finserv and the procegers to be followed
for availing the loan.
Sources of Data:
The information necessary for this study is collected by tapping primary & secondary source:
PRIMARY DATA:
Primary data means original data that has been collected specially for the purpose in
mind. It means someone collected the data from the original source first hand. Data collected
this ways called primary data.
The method adopted was observations in the company and one to one interaction with
company people to collect the required information.
Observation method:
Observation method is the process of recoding the behavior patter of people,
objective, and occurrences without questioning or communicating with them.
Secondary sources:
The study is exploratory in nature, makes use of mainly secondary data. The data has been
collected from.
Books
Company website
Other Related websites
4.3 A Bajaj Finserv Nippani branch the following types of loans provided.
1. Electrical Loan
2. Personal loan
3. Business loan
4. Salary loan
5. Doctor loan
6. Mortgage loan
7. House loan (loan balance transferred)
1) Electric loan: A Bajaj Finserv nippani branch provide electrical loan for purchasing the
consumer durable products like TVs, refrigerator, Smart phones, washing machine and
related farming machines. The electrical loan will be provided to salary holders, the
electrical loan will be provided on EMI basis and amount will be paid on installme nt
basis.
2) Personal loan:
It is a type of unsecured loan and helps to meet your current financial needs. You don’t
need any security/collateral while availing it. Personal loan gives you the flexibility to
use the funds as per your convenience and need.
3)Business loan:
A business loan is a loan specifically intended for business purposes. As with all loans, it
involves the creation of a debt, which will be repaid with added interest. There are a number
of different types of business loans, including bank loans, mezzanine financing, asset-based
financing, invoice financing, microloans, business cash advances and cash flow loans.
4)Salary loan:
A salary loan is a type of short-term borrowing where an individual borrows a small amount
at a very high rate of interest.
5) Doctor loan:
Use funds from your professional loan to expand your business, upgrade equipment and much
more. In addition, you don’t require security when you apply for professional loans.
6) Mortgage loan:
A mortgage loan, also referred to as simply a mortgage, is used either
by purchasers of real property to raise funds to buy real estate; or alternatively by existing
property owners to raise funds for any purpose, while putting a lien on the property being
mortgaged.
1) Electrical Loan:
We can easily avail electrical loan from Bajaj Finserv if you fulfil the following Electrica l
loan eligibility criteria.
✔ An Indian citizen.
✔ Bank statement
2) Personal Loan:
You can easily avail a personal loan from Bajaj Finserv if you fulfil the following personal
loan eligibility criteria.
✔ A salaried employee
✔ An Indian Citizen.
✔ Bank statement
ANNAPOORNA INSTITUTE OF MANAGEMENT RESERCH, SANKESHWAR
ARIHANT AGENCY (ASSC) OF BAJAJ FINSERV
✔ Salary slip
✔ Employee ID card
A Personal Loan is a great tool in managing your finances and acts as an impetus in putting
your plans into actions. Here are the unique benefits of Bajaj Finserv Personal Loan:
We ensure as a standard that funds are at your disposal within 72 hours of the Personal Loan
approval. This is the fastest turnaround time by any NBFC in India.
You can apply for a Personal Loan online from Bajaj Finserv up to Rs.25 lakh and repay it at
ease by opting for tenures ranging from 24 months to 60 months.
Documents Required
Category
Salary slips of the last 2 months
Financials
Salary account bank statement of the last 3 months.
Bank statements
Employee ID card
Employment proof
Identity proof (Any one of the below)
KYC Passport / Voters ID card / Driving license / PAN card
3)Business loan:
A business loan is a loan specifically intended for business purposes. As with all loans, it
involves the creation of a debt, which will be repaid with added interest. There are a number
of different types of business loans, including bank loans, mezzanine financing, asset-based
financing, invoice financing, microloans, business cash advances and cash flow loans.
✔ Apply Online
✔ Minimum Documentation
✔ Check Eligibility
Bajaj Finserv requires a select number of documents when evaluating your business loan
application. These include:
2. KYC documents
4) Salary Loan:
You can easily avail a salary loan from Bajaj Finserv if you fulfil the following personal loan
eligibility criteria.
✔ A salaried employee
✔ An Indian Citizen.
✔ Bank statement
✔ Salary slip
✔ Employee ID card
A salary loan is a great tool in managing your finances and acts as an impetus in putting your
plans into actions. Here are the unique benefits of Bajaj Finserv salary Loan:
We ensure as a standard that funds are at your disposal within 72 hours of the salary Loan
approval. This is the fastest turnaround time by any NBFC in India.
You can apply for a salary Loan online from Bajaj Finserv up to Rs.25 lakh and repay it at ease
by opting for tenures ranging from 24 months to 60 months.
Documents Required
Category
Salary slips of the last 2 months
Financials
Salary account bank statement of the last 3 months.
Bank statements
Employee ID card
Employment proof
Identity proof (Any one of the below)
KYC Passport / Voters ID card / Driving license / PAN card
5) Doctor loan:
Use funds from your professional loan to expand your business, upgrade equipment and much
more. In addition, you don’t require security when you apply for professional loans.
How to Apply:
o KYC
o Address proof
o Signature Proof
o Medical Registration Certification
Minimum Requirements:
A Loan against Property eligibility with Bajaj Finserv includes the following scenarios:
The following documents are required to available of the Bajaj Finserv property loan:
Self-employed individual:
Application Form
Photograph
Identity Proof
Address proof
Signature Proof
Date of Birth Proof
IT Returns and Balance Sheet and Profit & Loss Account Statement of the last 2 years
Business Continuity Proof for the last 5 years
Bank account statements of the last 6 months
Copy of the property paper which is to be mortgaged.
Firms-companies:
Application Form
Director’s Photograph
Identity Proof
Address proof
Signature Proof
Certificate of Incorporation
IT Returns and Balance Sheet and Profit & Loss Account Statement of the last 2 years
Business Continuity Proof for the last 5 years
Bank account statements of the last 6 months
Partnership Deed in case of a Partnership Firm
Memorandum of Association and Articles of Association of the company.
If you’re unhappy with your current Home Loan plan, you can switch to Bajaj Finserv and
avail of our numerous advantages like Online Application Process, Instant Online Approval,
Minimum Documentation, Additional Top loan at attractive rates, No Hidden charges,
Customized Insurance Schemes, and Online Account Access. We also offer facilities like NIL
Part Pre-Payment charges, NIL Foreclosure charges, and 3 EMI Holiday.
The online Home Loan Balance Transfer from other banks can be disbursed in less than 4 days
with minimal documentation.
At Bajaj Finserv, the Home Loan eligibility criteria is defined by various factors as mentioned
below:
These are some of the basic documents required for Home Loan:
Photograph Yes
Finding:
ANNAPOORNA INSTITUTE OF MANAGEMENT RESERCH, SANKESHWAR
ARIHANT AGENCY (ASSC) OF BAJAJ FINSERV
1) From the study it is found that the time taken to sanction the loan is less (72 hours) for
all unsecured loan upon submitting required documents.
2) From the study it is found that the documentation process to avail the loan is simple
hassle free
3) It is found that vehicle loan facility is not provided by Arihant Agency (Authorized
Sales and Service centre), Nippani.
4) The penalty for not making the payment of monthly instalment is Rs,450, which is more
for smaller amount of loans.
5) Arihant Agency (Authorized Sales and Service centre) does not have it is own website.
SUGGESTIONS:
The following suggestion have been formulated on the basis of my study. These set of
suggestionmight help the Arihant agency authorized sales and supporting partner of Bajaj
Finserv to improve the services regarding their products.
1) It is suggested to start providing vehical loan and and education loan as there is much
scope in nippani area.
2) It is recommended to have their own website detailing various loans available at Arihant
Agency (Authorised Sales and Service centre), Nippani.
Learning experience
I started the internship on 2 august 2017 with lot of enthusiasm. I am very happy
to say that when I got opportunity to learn various new things about effectiveness of
unsecured loans of Arihant agency (ASSC) Bajaj Finserv at nippani I am happy to
share my learning experience
I arrived at unsecured loans of Arihant agency (ASSC) Bajaj Finserv, at nippani. With
the excitement of new people proving myself and giving the project best. When the
project title was finalized I found my self-assigned to the various loans provided by
Arihant agency (ASSC) Bajaj Finserv with special reference to unsecured loans,
opportunities to being a student as part of Bajaj Finserv for summer internship project.
I lived the experience of life time effectiveness of various loans provided by Arihant
agency (ASSC) Bajaj Finserv with special reference to unsecured loans is a subject
cannot be learned from text books because of it is fully based on practical knowledge
base.
It requires practical involvement this exposure of Mr. Nithin Patil (company guide)
was the rare gift I received while interning at Arihant agency (ASSC) Bajaj Finserv.
During the internship I learned about various loans provided by Arihant agency
(ASSC) Bajaj Finserv with special reference to unsecured loans (is a discipline of
finance that relates to increase the knowledge) employees working in this company
helped me in completion of all activities.
My learning experience can be summarized as followed.
I learned hoe organization peoples are works and how give services and what
are the different types of provided and what is requirement documentation process and
loan sanctioned loan duration period that the main objective of my study to understand
in details about various loans available with more focus on unsecured loan at Arihant
agency (ASSC) Bajaj Finserv, at nippani.
CONCLUSION
Bajaj Finserv India’s largest non- banking company and it also having largest distributio n
channel and supporting channel partners with a categories of Durable Finance, Lifestyle
Finance, loan for retailers store, loans for agro products, personal loans.
I would like to conclude this project that A Study on various loans provided by Bajaj Finserv
with special reference to unsecured loans.” is an individual study carried on by me.
The information that I have collect through this project will help the organization
(Arihant agency (ASSC) Bajaj Finserv at nippani) to know the various services provided by
the
Organization. Through this processes and day to day operation in, Arihant agency (ASSC)
Bajaj Finserv at nippani. It gave me a practical exposure towards analyzing behavior,
perceptions and attitudes of clients. On the basis of personal interview, one to one interaction
and observation during the clients.
BIBLIOGRAPHY:
BOOKS:
S.no Title Author Edition Price
WEBSITES:
o http://www.bajajfinserv.com
o http://www.bankbazar.com/cibil.html.
o http://www.bankbazar.com/homeloan,interest rates.html.
o http://www.bankbazar.com/homeloan, eligibility.html.
o http://www.apnapaisa.com/loan/home loan-India/rates.html.
o http://www.myloancare.in/homeloan.
o www.ibes.org/industry/financial services presentation.
o www.finserve.uwa.edu.au >UWA>Financial Services.