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Auto Loans

RAJASTHAN TECHNICAL UNIVERSITY, KOTA


A
Project Study Report
On
Training Undertaken at

Titled
“BUSINESS OF AUTO LOANS THROUGH
OFF MARKETING CHANNELS”

Submitted in partial fulfillment for the Award of degree of


Master of Business Administration (2008-2010)

Submitted By: -
Submitted to:-
Yashomati Goda Manish Kachhawa
MBA 3rd sem.

G.D. MEMORIAL COLLEGE OF MANAGEMENT & TECHNOLOGY


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PREFACE

This project study has been conducted in the lieu of requirement laid down by Rajasthan
Technical University, Kota, for the degree of course of master of business administration.
Under this requirement, every student is supposed to undergo summer training in the
industrial unit or commercial organization. It enables the students to understand the
practical aspect of the conceptual studies learned by them in the commercial subject.

The present report is result of my summer training of HDFC Bank in auto loans in
Jodhpur. The topic chosen for study is Business of Auto loans through off Marketing
Channels provided By HDFC. The study was conducted at the Jodhpur branch by analyzing
the loan facility provided by HDFC and gathering information from Regional Manager and
from market surveys.

The duration of training was 45 days, during which I tried to understand the loan
process of HDFC Bank, Jodhpur Auto Loan Department by observing the actual practice
followed by bank in this regard.

An effort has been made to present this report as cohesive whole of the activities
concerning the auto loan facility provided by HDFC Bank.

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ACKNOWLEDGEMENT

It is great pleasure and privilege for me to present this Project Report titled BUSINESS OF
AUTO LOANS THROUGH OFF MARKETING CHANNELS.

I would like to express my gratitude to Mr. Himanshu Sood (Regional Manager) for having
given me an opportunity to do a project in HDFC Bank.

He has also provided valuable information to complete this work and sincere thanks
to Ms. Kavita Khichi Without whose direction and instruction the project would not have
possible. We pay regards to our parents who have been our source of inspiration and
motivation.

Finally, I am thankful to all the individuals who directly or indirectly rendered their
help in completion of this project work.

(Signature of Student)
Yashomati Goda

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CERTIFICATE

This is to certify that Miss. Yashomati Goda D/o Ratan Lal Ji Goda student of MBA 2nd
semester two year full time course, has satisfactorily completed his summer training on the
topic of BUSINESS OF AUTO LOANS THROUGH OFF MARKETING CHANNELS at
HDFC Bank. He has submitted her training project report in fulfillment of Master of Business
Administration (MBA) program by Rajasthan Technical University, Kota 2008 – 2010.

Date: 16-01-2010 Prof: Manish Kachhawa


(Director)

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EXECUTIVE SUMMARY

In today’s corporate and competitive world, I find that banking sector has the maximum
growth and potential as compared to the other sectors. This growth potential attracts me to
enter in this sector and HDFC BANK has given me the opportunity to work and get
experience in highly competitive and enhancing sector.

• The success story of good market share of different market organizations depends
upon the availability of the product and services near to the customer, which can be
distributed through a distribution channel.

• Marketing channels helps company in getting good market share and reach to
customer more fluently and for that all big giant in this sector of banking take help of
good marketing channels. Auto loan is a big demand in today’s era and banking
corporations also available in this sector.

• Marketing channels are the only way for a company of banking sector through which
policies and benefits of the company can be explained to the customer.

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CONTENTS

S.No. Topic Page No.


1. Introduction of Bank 1
2. Overview & profile of HDFC Bank 2
3. Services Provided 5
4. Meaning & types of Loan 7
5. Objective of Study 10
6. Loans provided by HDFC Bank 11
7. Auto loan (An overview) 12
8. Features & Benefits 13
9. Product offerings 14
10. Application Process 15
11. Documentations Required 16
12. Contact Point Verification 37
13. OFF MARKETING CHANNELS 51
14. Analysis of Survey 52
15. Feed Back 54
16. SWOT Analysis 55
17. Suggestions 56
18. Bibliography 57

INTRODUCTION OF BANK

Banking is a base of today’s world. The bank word is too old. The origin of the word bank is
shrouded in the mystery. It is made from the word “Banchi” or from Greek word “Banque” or
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from the German word “Banch”. The first bank was established in 1148 and its name is
“CASA DE SAN GEIORGIO”.
Soon after the people realized the importance of money as a medium of exchange
they recognized the need of storing it. This safe place ultimately evolved into financial
institution that accept deposit and make loans i.e. the modern banking system. As per as
India concerned the original banking operations were in the hands of the indigenous
bankers who dominated the finance to the extended that they credit to the govt. as well.
A bank is an institution which accepts deposits withdraw by cheque and makes loan
and advances for the purpose of earning profits.
The Banking Companies Regulation Act-“The accepting, for the purpose of
lending and investment, of deposits of money from the public, repayable on demand or
otherwise, and withdraw able by cheque, draft and otherwise.”
Kinley-“Bank is an establishment which makes to individuals such advances of
money as may be required and safely made, and to which individuals entrust money when
not required by them for use.”

Thus the following are the functions of a bank:-


• Accepting deposits
• Advancing money
• Collection and payment of credit and other instruments.
• Sale and purchase of stock exchange securities.
• Acting as information bank
• Remittance of fund

Over View & Profile of HDFC Bank

PROMOTOR

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HDFC is India’s premier housing finance company and enjoys an impeccable track record in
India as well as in international markets. Since its inception in 1977, the Corporation has
maintained a consistent and healthy growth in its operation is to remain the market leader in
mortgages. Its outstanding loan portfolio covers well over a million dwelling units. HDFC has
developed significant expertise in retail mortgage loans to different market segments and
also has a large corporate client base for its housing related credit facilities. With its
experience in the financial markets, a strong market reputation, large shareholder base and
unique consumer franchise, HDFC was ideally positioned to promote a bank in the Indian
environment.

BUSINESS FOCUS
HDFC Bank’s mission is to be a World-Class Indian Bank. The objective is to build sound
customer franchises across distinct businesses so as to be the preferred provider of
banking services for target retail and wholesale customer segments, and to achieve healthy
growth in profitability, consistent with the bank’s risk appetite. The bank is committed to
maintain the highest level of ethical standards, professional integrity, corporate governance
and regulatory compliance. HDFC Bank’s business philosophy is based on four core values
– Operational Excellence, Customer Focus, Product Leadership and People.

CAPITAL STRUCTURE
The authorised capital of HDFC Bank is Rs 550 crore (Rs. 5.5 billion). The paid up capital is
Rs 424.6 crore (Rs. 4.2 billion). The HDFC Group holds 19.4% of the bank’s equity and
about 17.6% of the equity is held by the ADS Depository (in respect) of the bank’s American
Depository Shares (ADS) Issue. Roughly 28% of the equity is held by the Foreign
Institutional Investors (FIIs) and the bank has about 570,000 shareholders. The shares are
listed on the Stock Exchange, Mumbai and the National Stock Exchange. The bank’s
American Depository Shares are listed on the New York Stock Exchange (NYSE) under the
symbol ‘HDB’.

DISTRIBUTION NETWORK

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HDFC Bank is headquartered in Mumbai. The bank at present has an enviable network of
over 1229 branches spread over 444 cities across India. All branches are linked on an
online real-time basis. Customers in over 120 locations are also serviced through
Telephone Banking. The Bank’s expansion plans take into account the need to have a
presence in all major industrial and commercial centers where its corporate customers are
located as well as the need to build a strong retail customer base for both deposits and loan
products. Being a clearing/settlement bank to various leading stock exchanges, the Bank
has branches in the centers where the NSE/BSE has a strong and active member base.
The Bank also has a network of about over 2526 networked ATMs across these
cities. Moreover, HDFC Bank’s ATM network can be accessed by all domestic and
international Vise/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American Express
Credit/Charge cardholders.

MANAGEMENT
Mr. Jagdish Kapur took over as the bank’s Chairman in July 2001. Prior to this Mr. Kapur
was a Deputy Governor of the Reserve Bank of India.
The managing Director, Mr. Aditya Puri, has been a professional banker for over 25
years and before joining HDFC Bank in 1994 was heading Citibank’s operations in
Malaysia.
The Bank’s Board of Directors is composed of eminent individuals with a wealth of
experience in public policy, administration, industry and commercial banking. Senior
executives representing HDFC are also on the Board.
Senior banking professionals with substantial experience in India and abroad head
various businesses and functions and report to the Managing Director. Given the
professional expertise of the management team and the overall focus on recruiting and
retaining the best talent in the industry, the bank believes that its people are a significant
competitive strength.

TECHNOLOGY
HDFC Bank operates in a highly automated environment in terms of information technology
and communication systems. All the bank’s branches have online connectivity, which
enables the bank to offer speedy funds transfer facilities to its customers. Multi-branches
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access is also provided to retail customers through the branch network and Automated
Teller Machines (ATMs).
The bank has made substantial efforts and investments in acquiring the best
technology available internationally, to build the infrastructure for a world class bank. The
Bank’s business is supported by scalable and robust systems which ensure that our clients
always get the finest services we offer.
The Bank has prioritised its engagement in technology and the internet as one of its
key goals and has already made significant progress in web-enabling its core businesses. In
each of its businesses, the Bank has succeeded in leveraging its market position, expertise
and technology to create a competitive advantage and build market share.

SERVICES PROVIDED
HDFC Bank offers a wide range of commercial and transactional banking services and
treasury products to wholesale and retail customers.

The bank has three key business segments:

1. Wholesale Banking Services

The bank’s target market ranges from large, blue-chip manufacturing companies in the
Indian corporate to small & mid-sized corporate and agri-based businesses. For these
customers, the Bank provides a wide range of commercial and transactional banking
services, including working capital finance, trade services, transactional services, cash
management, etc. The bank is also a leading provider of structured solutions, which
combine cash management services with vendor and distributor finance for facilitating
superior supply chain management for its corporate customers. Based on its superior
product delivery / service levels and strong customer orientation, the Bank has made
significant inroads into the banking consortia of a number of leading Indian corporate
including multinationals, companies from the domestic business houses and prime public
sector companies. It is recognized as a leading provider of cash management and

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transactional banking solutions to corporate customers, mutual funds, stock exchange


members and banks.

2. Retail Banking Services

The objective of the Retail Bank is to provide its target market customers a full range of
financial products and banking services, giving the customer a one-stop window for all
his/her banking requirements. The products are backed by world-class service and
delivered to the customers through the growing branch network, as well as through
alternative delivery channels like ATMs, phone Banking, Net Banking and Mobile Banking.
The HDFC Bank preferred program for high net worth individuals, the HDFC Bank
plus and the investment Advisory services programs have been designed keeping in mind
needs of customers who seek distinct financial solutions, information and advice on various
investment avenues. The Bank also has a wide array of retail loan products including Auto
Loans, Loans against marketable securities, Personal Loans and Loans for Two-wheelers. It
is also a leading provider of Depository Participant (DP) services for retail customers,
providing customers the facility to hold their investments in electronic form.
HDFC Bank was the first bank in India to launch an International Debit Card in
association with VISA (VISA Electron) and issues the MasterCard Maestro debit card as
well. The bank launched its credit card business in late 2001. The Bank is also one of the
leading players in the “merchant acquiring” business with over 50,000 point-of-sale (POS)
terminals for debit / credit cards acceptance at merchant establishments.

3. Treasury

Within this business, the bank has three main product areas – Foreign Exchange and
Derivatives, Local Currency Money Market & Debt Securities, and Equities. With the
liberalization of the financial markets in India, corporate need more sophisticated risk
management information, advice and product structures. These and fine pricing on various
treasury products are provided through the bank’s Treasury team. To comply with statutory
reserve requirements, the bank is required to hold 25% of its deposits in government

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securities. The Treasury business is responsible managing the returns and market risk on
this investment portfolio.

MEANING AND TYPES OF LOAN

MEANING OF LOAN
Loan means a credit facility where the money is disbursed in the beginning, mostly in one
stroke, and later on only recoveries in the forms of installments take place in the account.
Very often the two words ‘Loans’ and ‘Advance’ are interchangeably used without observing
any difference in their meanings. But there exists a fine degree of distinction between the
two words. Loan means a credit facility where the money is disbursed in the beginning,
mostly in one stroke, and later on only recoveries in the forms of installments take place in
the account. In case of ‘Advance’, credit facility is availed of as and when needed and
continuous debit and credit operations are made in the account, within the prescribed limit.
Thus, credit facilities repayable in installments are ‘loans’ and credit facilities like cash credit
and overdrafts where cheque book facility is also given ‘advances’. In case of loan, except
initial disbursal, no further debits are allowed barring interest being debited by the bank. The
account will have credit entries only by the way of recovery and balance outstanding will
gradually decline. But in case of Advance, cheque book remains with the borrower and any
number of debits and credits are permitted with in the agreed limit. In banking parlance,
mostly the deposits are payable on demand including term deposits, which too can be
discounted at any time and as such ‘Advances’ are preferred as compared to ‘Loans’ for
simple reasons that advance can be recalled on demand whilst loan will be repaid only in
installments over a long period. Although the logic of such preference is practically not
visible since the cash credit accounts are never repaid and only limits are enhanced every
year while the loans are at least paid back gradually. However, traditionally banks prefer
facilities which are payable on demand. Moreover, for granting loans, others specialized
agencies like State Financial Corporations have been promoted and they don’t sanction
advances.
TYPES OF LOANS

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Banks grant loans for different periods- short, medium and long, and for different purposes.
Broadly, the loans granted by banks are classified as Error! Bookmark not defined.

1. Short term loan

Short term loans are granted to meet the working capital needs of the borrowers. These
loans are granted for granted less than a year. These loans are granted against the security
of tangible assets- mainly the movable assets like goods and commodities, share,
debentures etc. since April, 1995 reserve Bank of India has made in mandatory for the
banks to grant a portion of bank credit to big customers in the form of loans, which may be
the various maturities. The reserve bank of India has also permitted the banks to roll over
such loans, i.e., to extent loan for another period at the expiry of the tenor of the first loan.

2. Medium term loan & long term loan

Medium and long term loans are usually called ‘Term Loan’. Medium terms loans are
granted for more than a year and less than three years and long term loans are granted for
more than three years and are meant for purchase of capital assets for the establishment of
new units and for expansion or diversification of an existing unit. Bank usually grants such
loans together with specialized financial institutions like Industrial Finance Corporation of
India, Industrial Credit and Investment Corporation of India etc.

3. Bridge loans

Bridge loans are essentially short term loans which are granted to industrial undertakings to
meet their urgent and essential needs during the period when formalities for availing of the
term loan sanctioned by financial institutions are being fulfilled or necessary steps are being
taken to raise funds from the capital market. These loans are granted by banks or by
financial institutions themselves and are automatically repaid out of amount of the term loan
or the funds raised in the capital market.
4. Composite loan

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When a loan is granted both for buying capital assets and for working capital purposes it is
called a composite loan. Such loans are usually granted to small borrowers, such as
artisans, farmers, small industries etc.

5. Consumption loan

Though normally banks provide loans for productive purposes only, but as an exception
loans are also granted on a limited scale to meet the medical needs or the educational
expenses relating the marriages and other social ceremonies etc. of the needy persons.
Such loans are called consumption loans.

OBJECTIVES OF STUDY

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• To study the various complexities involved in the loan the HDFC.

• To know the various loan provided by the HDFC bank.

• To know the various requirements fulfilled by customers to get from HDFC bank.

• To study the various facilities provided by HDFC bank to customers for taking loans.

• Recommend the valuable suggestion which may increase the faith of new customers.

LOANS PROVIDED BY HDFC

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• Home Loans
• Personal loan
• Car loan
• Two wheeler loan
• Commercial Vehicle loan
• Loan against securities
• Farm Equity Loans
• Construction Equipment loan
• Office Equipment loan
• Medical Equipment loan

AUTOLOAN (Car loans) AN OVERVIEW

• A basket of options available – New cars/Used cars/ Car N cash.


• Market leader in the auto loans business.
• Evolved distribution and capacities.
• HDFC Bank is operational in excess of 550 locations within the country.
• Widely experienced in the auto loans business across the value chain.
• Over 425 dedicated resources to handle the Auto loans business.
• Loan facilities will be offered at all centers where your branch is operational (subject
to being auto approved locations).
• Highly process oriented. Great emphasis on customer delight.

FEATURES AND BENEFITS of AUTO LOAN

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• Choose any car manufactured in India within a certain age.


• Borrow up to 80% of the value of the car.
• Flexible repayment option, ranging from 12 to 60 months.
• Borrow up to 3 times your annual salary (for salaried professionals) and 6 times
your annual income (for self employed professionals).
• Available for almost all car models at attractive interest rates.
• Repay with easy EMIs.
• Attractive car loan plans – To Fastrack your loan, just choose the plan that is right
for you.
• Additional loan on existing loan – If you are an existing HDFC Bank Auto loan
customer with a clear track record of 12 months or more, then you can get an
additional loan to the extent of your existing loan amount at attractive rate of
interest.
• Customer Privileges
• Special benefits for HDFC Bank account holders.
• If you have had preferred Account or a Corporate Salary Account with HDFC
Bank for more than six months, you can get fast approvals on your loans with
minimum documentation.

PRODUCT OFFERINGS

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New Car loans:


 Funding of up to 100% of ex-showroom value
 Tenors from 12-84 months
 Competitive pricing
 Unique credit shield offered along with loan-suraksha Kawatch
 Insurance of car facilitated by the bank

Used car Loans:


 Funding of up to 85% of valuation of car
 Tenors from 12-60 months
 Competitive pricing
 Unique credit shield offered along with loan- suraksha Kawatch
 Insurance of car facilitated by the bank

Car N Cash:
 Refinance on your existing car

APPLICATION PROCESS

• The applicant may contact the nearest HDFC Bank branch for the
best deal available on the car of his choice.
• The applicant need not visit HDFC Bank for documentation. The
documents may be handed over the HDFC Bank direct marketing associate/ dealer he
is dealing with.
• If applicant wish to cancel his loan application and the loan has not
yet been disbursed, no letter is required. But if the loan has been disbursed, a letter is
requirement requesting for cancellation of the loan.
• The applicant can apply for another loan and HDFC Bank shall
sanction the loan based to verify applicant status, contact the representative who is
processing his loan application.
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DOCUMENTATION REQUIRED

Salaried Individual Self-Employed Partnership Firm Private/Public Ltd.


Individual Co.

Application form Application Form Application Form Application Form

Photograph Photograph Photograph of Guarantor’s


signing partner Photograph
(for private limited
company only)
Proof of bank One proof of income Last two years’ Last two years
account continuity (ITR for the last two income proof audited financials
years) (audited account or
ITRs+CA certified
financials)
One income proof for One proof of
Partnership deed Certified true copy of
the last two years residence (driving the MOA & AOA
(ITR, Form 16, salary license / voters’
slip) identity card / ration
card / passport /
utility bills for the last
3 months)
One proof of identity One proof of Partners authority Board resolution
(driving license / residence (driving letter (format available on
voters’ identity card / license / voters’ request)
Passport / PAN identity card / ration
card / photo credit card / passport /
card/ photo ration utility bills for the last
card) 3 months)
One proof of One proof of office
residence (laminated address (Utility bill /
driving license / lease deed / excise
voters’ identity card / or sales tax receipt /
ration card / passport shops and
/ utility bills for the Establishment Act
last 3 months / Registration)
company ID limited
company or

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Self employed staying in Negative Area

Criteria Credit norms Deviation


Eligible borrower Salaried, Self employed individuals age > 30 No Deviation
segment yrs. Sole proprietorships age> 30 yrs
Age Salaried > 25 yrs Self Employed > 30 yrs No Deviation
Vehicle segment .A1, A2, A3, A4 and MUV To meet premium Car
Norms
Minimum income Salaried – 2 lacs annual No Deviation
Others – 1.5 lacs annual income for

Repayment Mandatory for HRP2


Mandatory for A3, A4 and MUV segment

Self Employed Staying in Negative Area

Criteria Banking and ownership proof Deviation


Vehicle A1 and A2
Segment
Banking 6 months banking with AQB of 1.5 time of L1- for HDFC Bank a/c with
the EMI vintage > 3 months AQB of 1
time
LTV 65% for 36 month No deviation
Maximum loan 3 lacs for A1 and A2 No deviation
amt.
Profile HRP 2 not to be funded

Others No Income

Criteria Banking & ownership proof Only Banking Deviation


Vehicle Segment A1,A2 and A3 A1,A2 and A3 No deviation
Banking 6 months banking with 6 months L1- For HDFC Bank a/c

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AQB of 1.5 time of the EMI banking with with vintage > 3 months
AQB of 2 times AQB of 1 time and 1.5
of the EMI time respectively
LTV 75% for 36 month 70% for 36 No deviation
65% for 37 to 60 mts month
60% for 37 to 60
months
Maximum loan 3 lacs for A1 and A2 3 lacs for A1 No deviation
amt. 4 lacs for A3 and A2
4 lacs for A3

Self Employed Individuals Age < 30 yrs

Criteria Credit norms Deviation


Eligible Borrower Self employed Individuals, sole No Deviation
segment proprietorships with age less than 30
yrs but greater than 21 yrs.
Not to be an RCO – rented residence.
Vehicle Segment A1,A2,A3,A4 and MUV L4- for any other vehicle
Minimum Income 1.5 lacs annual income No deviation
Repayment Vehicle A3 A4 & MUV No deviation
Segment
Min Repayment 3 Lacs 5 Lacs
Loan Eligibility Others 4 times of the annual income L1 – up to 10 & higher with
repayment track
LTV Without repayment L2 – up to 5% higher
• 5% lower LTV as defined in LTV L3 – up to 10% higher
matrix
• 10 % lower for tier 3 category of
vehicle with repayment
• Normal LTV +5%
CPV Guidelines

Contact point verification (CPV) includes:

• Physical verification of residence and office


• Tele verification at residence and office
• Directory Check

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Please Note: For co-applicant also all the above has to be done

Status of the CPV will be based on all the factors mentioned below:

• The address as given in the application form exits


• The applicant / Co – applicants stay / work at the given address
• The applicant is normally contact able at the given segment of the car
• The standard of living is appropriate with the segment of the car
• The third party confirmation are positive & there is no negative remark
• Directory check confirming the address and the name of the customer including
relatives.
• The vehicle should be for self/family/company use.

Please Note: Observations on Negative Area & HRP ½ would not result in the CPV
being termed as negative. In all such cases, the agency to highlight the observations –
but mark the CPV based on the above criteria only. For negative area cases, as
highlighted by CPV agency, the policy for negative area will be applicable. The CPV
agency should also provide information on the usage of the asset (Personal or
commercial) and if the asset is for commercial use, the fleet size (no. of vehicles) of the
operator should also be provided.

CPV Deviation Matrix

In cases where the CPV is marked as negative the below mentioned deviation grid will be
applicable

Condition Deviation Level

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The address as given in the application from No deviation


does not exist The correct address to be obtained at CPV
conducted at the right address.
The applicant/Co-applicant do not stay/work No deviation
at the given address The correct address to be obtained at CPV
conducted at the right address.
The applicants normally not contactable at No deviation
the given contact address The correct address to be obtained at CPV
conducted at the right address.
No of times CPV fired on new addresses L2
excluding the application address L3
Exceeds 2
Exceeds 4
The standard of living is not appropriate with L2
the segment of the car
The third party confirmation are not positive L2
or there may be some negative remarks
Third party usage L3
As per application form vehicle for personal L3
use but as per CPV vehicle for commercial
use
Any other deviations L3

CPV Waivers

The CPV can be waived for cases meeting norms as mentioned below:

Criteria Residence CPV Business CPV TVR


Internal customer – F4 per Waived Waived Required
approved/pre qualified/
Preferred/ Imperia
Internal liability customer – Required Waived Required

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salaried with at least one salary


credit with the company name
Internal liability customer – Waived Required Required
others
Min six months vintage
Internal asset customer Waived Waived Required
CIBIL matches Waived Waived Required

For all liability customers

 There should not be any instances of cheque book returned (or) statement
returned instance of address not confirmed.
 The address in the bank statement / Finware should match with any one the
address – residence / office in the application form.

For internal asset customer following conditions should be met for CPV
waivers if the loan is live

 Account should be live at the time of new loan origination.


 The address in Finnone should match with any one of the address – residence/office
in the application form
 Closed loan – Loan should not have closed more than 6 months before the
application date.

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For CIBIL Matches

 The match should be a good match of an installment loan with at least a 12 month
vintage and loan amount to be >=50% of the applied loan amount,
 Any one of address – residence/office in the application form should match one of the
last two addresses in the CIBIL report.

Contact ability
Segment Residence/ office Job/Business Contractibility
stability stability
F4 Hotkey NA NA • Landline /
WLL at residence
is required Or post
paid mobile in the
name of applicant.
• Landline /
WLL of office is
required.
Repayment • 2 yrs at current • Salaried- 2 yrs Landline / WLL at
residence. in current job residence is required
• Not Applicable: • Not applicable – or post paid mobile in
• If residence is If working for the name of applicant

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owned or for self super Cat A, Cat Landline / WLL at


employed office is A & Cat B office is required
owned or companies
• Salaried working • Self employed –
for super Cat A, 2 yrs in business
Cat A & Cat B • Not applicable –
companies OR if office /
Repayment of at business
least 24 month premises is
owned
Corporates NA • Self Employed – • Mandatory
2 yrs in business landline at
• Or co-applicant office (Max. 8
to meet the digit telephone
norms number)
• Mandatory
Residency
Number /
Mobile
number of co
applicant /
partner /
director
Salaried – Big • Salaried – 1 year NA • Landline at
corporates in current job and office AND
total work • Mobile No OR
experience of 3 Residence
yrs. OR number of
• Post graduate applicant
having 1 year of
work experience

Premium Cars • For self employed • Salaried – 1 • Landline


– 2 yrs at current year in current mandatory at
residence AND to job and total office &
be owned work experience residence
(Parents name is of 10 yrs. • Mobile phone
acceptable) • Or of applicant
• For salaried – 5 • Post graduate mandatory
years in current working for
resi OR Company super Cat A, Cat
leased acco A and Cat B
(super Cat- companies
A/CatA) OR to be having 5 years
owned of work
experience
• Self Employed –
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5 yrs in business

Example of Higher LTV for Higher income without Deviation

LTV for salaried working for super cat A company

Vehicle Swift Dzire


Lone amount 6 lacs
Customer 1 Customer 2 Customer 3 Customer 4
Income 7 lacs 5 lacs 4 lacs 3 lacs
Loan amount/ 0.86 1.20 1.50 2.00
income ratio
Eligible for LTV Upto 100% Upto 10% Upto 5% higher Upto 5% higher
(without higher
deviations)

LTV For self employed going for premium car

Vehicle Honda accord


Lone amount 17 lacs
Customer 1 Customer 2 Customer 3 Customer 4
Income 12 lacs 10 lacs 8 lacs 5lacs
Loan amount/ 1.42 1.70 2.13 3.40
income ratio
Eligible for LTV Upto 15% Upto 10% Upto 10 % Upto 5% higher
(without higher higher higher
deviations)

LTV for a salaried customer in other segment


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Vehicle Honda City


Lone amount 7 lacs
Customer 1 Customer 2 Customer 3 Customer 4
Income 4 lacs 3 lacs 2.5 lacs 1.5 lacs
Loan amount/ 1.75 2.33 2.80 4.67
income ratio
Eligible for LTV Upto 5% higher Normal Normal Not eligible for
(without 7 lacs
deviations)

Repayment

Definition

• The repayment should be from the Banks, NBFC or Financial institution, who
share customer database with CIBIL.

• Valid repayment proof – CIBIL, Statement of account, 12 months Bank EMI debit

• Minimum 12 months clean repayment track or track of at least 50% competed


tenor whichever is less required

• Loan should not have been completed before 18 months prior to the date of
application

• There should not be more than 2 bounces in every completed 12 months


payment
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• There should not be more than 1 bounces in the last 12 months of the loan tenor

• It should not have been more than once 30 days past due and should be current if
live.

Repayment – Policy

Criteria Credit norms Deviation


Vehicle segment A1, A2, A3 and MUV segment vehicle as defined in No Deviation
LTV matrix
Loan Eligibility Please Note: Eligible loan amount will be the lower of
EMI multiplier and loan amt. multiplier for applied L1 – for Funding
tenor <= 36 months and higher if applied tenor is > 36 > Loan eligibility
month up to 5%
Product EMI multiplier Loan amt.
L2 – for funding
Multiplier
> Loan eligibility
AL 50 times 1.5 times
PL 50 times 1.5 times up to 10%
CV 25 times 0.5 times
LTV Repayment Int. Repayment Ext.
(Vintage) Repayment
12-24 months Normal Normal

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25-36 months +10% +5% No Deviation


>36months +15% +10%

Companies, Firms, HUF’s and Trust

Definition:

The eligible borrower segment should have cash profit in the current year and earlier losses
should not be more the capital (Subscribed share capital + reserves and surplus)

Criteria Credit norms Deviation


Minimum 1.5 lacs income required L1 – up to
income 10% lower
L2 – up to
20% lower
Loan criteria Income Multiplier
One car 4 3-3.99 2-2.99 <2
Eligibility &
Multiple 6-5 4-4.99 2-3.99 <
LTV
Car
LTV Normal +5% +10% 100%
Vehicle ALL ALL Only for Only for
category tier 1 & 2 tier 1 & 2
LTV As given above OR L3 – up to
10 % higher than the normal LTV with Repayment satisfying the 5 % higher

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repayment conditions (earlier Loan Amt to be at least 50% of


proposed loan amt)

Please Note: For Multiple cars – POS of all EMI obligations – only installment loans to be
considered (Banks, NBFC or any other – as evidenced by CIBIL / Bank statement) including
the current borrowing to be less than 6 times of the annual income.

Others- With income (for 800 & Omni)

Criteria Credit norms Deviation


Eligible borrower segment Salaried, self employed individuals No Deviation
age > 30 yrs,
Sole proprietorships age > 30 yrs
Category For Maruti 800 and omni
Min Income Salaried – 1.5
Others – 1.0
Banking 3 months banking with min. AQB of 1
times of EMI
LTV +5% on repayment of 50% of loan
amt. OR
Banking with AQB > 1.5 time EMI

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Others- With income below norms

Criteria Credit norms Deviation


Eligible borrower segment All Eligible borrowers as defined No Deviation
under common criteria
Income proof Income proof required as defined – No Deviation
with the minimum income being
For salaried – 1 lac
For other segment – Rs. 0.60 lac
No multipliers applicable
Vehicle segment Salaried – 1.5 No Deviation
Others – 1.0
Banking 3 months banking with min. AQB of 1 No Deviation
times of EMI
LTV +80 % for 36 months No Deviation
75% up to 60 months
Max loan amount 4
Others Contractibility and stability norms as No Deviation
defined above

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CPV Policy

CPV Grid

For all cases, the verifications to be done are:

• Residence verification
• Office/Business Verification
• Tele verification – Residence
• Tele verification – Office
• Directory check

For cases with co-applicants, the verification is to be done as detailed above for the co-
applicant also.

CPV Walvers

For the cases meeting the following norms, the verifications can be waived:

Residence CPV Business CPV TVR


Internal customer – F4 Waived Waived Required
preapproved / prequalified /
preferred/ imperia
Internal liability customer – Required Waived Required
salaried with at least one salary

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credit with the company name


Internal liability customer – Waived Required Required
others Min Six months vintage
Internal asset customer Waived Waived Required
CIBIL Matches Waived Waived Required

For liability customer:

• There should not be any instances of cheque book returned (or_ statement returned
instance of address not confirmed.)
• The address in the bank statement / Finware should match with any one the address
residence/office in the application form

For internal asset customer following conditions should be met for CPV waivers if
the loan is live:

• Account should be live at the time of new loan origination.


• The address should be match with any one of the address – residence/office in
the application form.
• Closed loan – Loan should not have closed more than 6 months before the
application date.

For CIBIL Matches:

• The match should be a good match of an installment loan with at least a 12


month vintage and loan amount to be >= 50% of the applied loan amount.
• Any loan of address – residence/office in the application form should match
one of the last two addresses in the CIBIL report.

For all cases where CPV has been waived, and TVR is negative, both CPV’s to be done &
the same would be treated as per the normal CPV policy.

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CPV Criteria

The CPV would be considered positive only if (all conditions to be met)

• The address as given in the application form exists


• The applicant/co-applicant stay/work at the given address
• The applicant is normally contactable at the given contact address
• The standard of living is appropriate with the segment of the car
• The third party confirmations are positive & there is no negative remark
• Directory check confirming the address and the name of the customer including
relatives.
• The vehicle should be for self/family/company use.

Observation on Negative Area & HRP ½ would not result in the CPV being termed as
negative in all such cases, the agency to highlight the observations – but mark the CPV
based on the above criteria only. For negative area cases, as highlighted by CPV agency,
the policy for negative area will be applicable. The CPV agency should also provide
information on the usage of the asset (personal or commercial) and if the assets for
commercial use, the fleet size (no. of vehicles) of the operator should also be provided.

In cases where the CPV is marked as negative basis failure on one of the above criteria, the
deviation grid for the same would be as detailed below:

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In cases where the CPV is marked as negative the below mentioned deviation grid will be
applicable

Condition Deviation Level


The address as given in the application from No deviation
does not exist The correct address to be obtained at CPV
conducted at the right address.
The applicant/Co-applicant do not stay/work No deviation
at the given address The correct address to be obtained at CPV
conducted at the right address.
The applicants normally not contactable at No deviation
the given contact address The correct address to be obtained at CPV
conducted at the right address.
No of times CPV fired on new addresses L2
excluding the application address L3
Exceeds 2
Exceeds 4
The standard of living is not appropriate with L2
the segment of the car
The third party confirmation are not positive L2
or there may be some negative remarks
Third party usage L3
As per application form vehicle for personal L3
use but as per CPV vehicle for commercial
use
Any other deviations L3

Within these broad guidelines, the CPV policy would be rolled out for each region – and any
changes to that would be authorized by the regional credit head. Any change to above
parameters would require PRH approval.

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CONTANCT POINT VERIFICATION

CPV requirement:

Residence Business Telephone


CPV CPV CPV
Individual Self Yes Yes Yes
Employed
Individual salaried Yes Yes Yes
Partnership Yes Yes Yes
Private limited Yes Yes Yes
Public limited- No Yes Yes
Deemed
Public Ltd co-listed No No Yes

Cat A list of PL product

1. Telephone verification:

• PP numbers are not accepted.


• Post paid mobile are acceptable subject of landline/WLL at residence/office
• Applicant must have Landline/WLL at either residence (or) office to quality for
a loan.

2. Residence CPVs:

• For private limited companies, residence CPV of the director being taken as
guarantor would be required. In a public Limited co., residence CPV of a director
is not required but when the director is taken as a guarantor the same will be
required.
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• For partnership, residence CPV of the authorized partner would be required

3. If the CPV has been done by a Credit Manager/CPA manager, then a CPV sheet
needs to be duly filled by the concerned officer. Such a sheet can be taken in
addition to the regular CPV but not in lieu of the same. The same would need to
be reviewed.
4. Reference checks through TVR
5. In the case of salaried customers telephonic CPV at the office address has been
made mandatory or HR confirmation mail marked to Credit / Ops in the originating
mail. Since in the case of salaried business CPV cannot be conducted, such a
telephonic CPV will ad act a good surrogate to determine the existence/continuity
of the employment of the customer PL cat A list to be attached.

OBJECTIVE

The objective of CPV policy is to serve as a guide and reference point for Auto CPV
agencies, CP’V stands for CONTACT POINT VERIFICATION.

Purpose
CPV is a very critical tool and only physical touch point in the transaction to determine
whether to lend to the applicant, based on certain sub criteria as mentioned below:

From credit perspective

• Evaluate car capability


• Assess the standard of living of the applicant
• Job / business profile
• Residence stability
• Level of business activity
• Third party validation through Neighbor check
• Collect negative market information, if any, available
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• Re-confirm certain details of loan application

Collections Perspective:

• Contact ability of the customer


• Access and verification of the Asset/Car

CPV agency is expected to deliver quality service while collecting information on the above.
Service delivery parameters essentially cover the following aspects:

Adherence to product and process guidelines:

The following pages will detail various processes that are to be followed. The agency
proprietor/ supervisor will be responsible for management of day to day activities including
telecalling, field activities, data collation, data entry, report accuracy and general
administration.

Scope of policy:

• Physical verification at residence


• Physical verification at office
• CD ROM/BSNL Check at the given telephone nos.
• Tele verification at the given nos.

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CPV Guidelines

Residence Verification

Objective Positive criteria Negative criteria (Any one)

Address confirmation Identify Address OGL


Reach physically Does not Exist
Not reachable / Difficult
Slum area
Suspicious case / stage managed
Does not reside / resident on a
temporary basis
Contact ability  Met applicant OR  No such person
(Current & Future)  Met family Member  Not a residence
OR  Door locked- unable to
 Neighbor confirmed confirm even from third party
with details  Guest house
 Under construction –  Shifted
stays there  Relative address
 Met servant  Contact address
 Met watchman  Under construction – does not
 Entry not allowed in stay there
quarters details  PG Acc. / lodge
confirmed over  Bachelor Accommodation
intercom
 Met a person who refuses to
 Permanent / parents/ reveal identity
in laws residence
 Family stays-
applicant comes only
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on weekends

Residence stability  Stability norms met


norms else,
 Salaried with CAT A
company
 Owned residence

Confirmation of  Positive Response to  Family member / Applicant


Application
CPV says not applied
 Applicant not interested for
other reasons
Profile  SOL Average &  Profile mismatch
Above  Politically active area
 Slum area
 Community Dominated Area
Reputation  Positive Third party  Active Politician
Check  Negative remarks from family
members
 Met recovery Agency
Executive of other Financial
Institutions
 In neg. base of Agency

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Business Verification

Objective Positive criteria Negative criteria (Any one)

Address confirmation  Identify Address  OGL


 Reach physically  Does not Exist
 Different Name  Not reachable / Difficult
Board/ No Name  Unable to Trace
Board, but applicant
met and TPC
confirmation
Contact ability  Met applicant OR  No such person
(Current & Future)  Colleague confirmed  Not a office
with details  Door locked
 Receptionist in Big /  Does not work here
Busy office Confirms  Transferred / Resigned
 Resident Office  Office dues not function
 Met Security (cm’s regularly
name reflects on  Dealer premises
ownership Name  Always on Field/tour
plate)
 Entry Not allowed
even into reception
Details confirmed
 In Night Shift only
 C&F agency premises
 Posted on Site /
Location (except
construction cos)
 Receptionist in small
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firms confirms
HO/Branch Address

Confirmation of  Positive Response to  Colleague Refused to Provide


Application CPV Details
 Not interested due to
repeated verification
Profile  Profile mismatch to be flagged
for poor SOL. segment A2
(segment B)
 No / Low Biz activity
 No office infrastructure
 Designation differs
substantially
 No employees found
 Trader / Manufacturer – No
stocks Found
 Office Cum Residence – with
No clearly defined Biz space
(exclusive CA, Doctors,
Advocates)
 Office appearance poor
 Office Area < 150 sq. ft
 Shared Biz premises
 NTP Biz – Wine shops etc.
Reputation Colleague confirms app already
owes money to lot of people
 Political flags/photos sighted
Political contacts

Note:
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 HRP/ NTS Profiles


 Negative Area
For above cases the CPV would not be flagged as negative but the report should carry it as
BOLD qualitative comment.

Residence Telephone Verification

Objective Positive criteria Negative criteria (Any one)

Address confirmation  Phone call  RNR


connected to the  Does not Exist
Number  Perpetually Engaged
 SDCA No (95,91  STD Call
calls)  PP No
 Mobile / Will no  Service Temporarily Withdrawn
 Disconnected
 Number Changed
Contact ability  Spoke to Applicant  Wrong No
(Current & Future)  Family Member  Not a Residence
 Spoke to servant  Unable to Confirm
 Permanent /  No such person
Parent / In Laws  Shifted
Residence  Relative Address
 Guest House
 Bachelor Accommodation
 PG Accommodation
 Person who refuses to reveal
identity

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Confirmation of  Positive Response  Family member / Applicant says


Application to CPV not applied
 Not interested due  Applicant says not interested
to repeated  Family Member Refused to
verification provide Details
 Details do no tally
Reputation  Family member saying don’t Give
 Indicates applicant is being
followed up by collection
agencies of other banks

Residence Telephone Verification

Objective Positive criteria Negative criteria (Any one)

Address confirmation  Phone call connected  RNR


to the Number  Does not Exist
 SDCA No (95,91  Perpetually Engaged
calls)  STD Call
 Mobile / Will no  PP No Shared No
 Service Temporarily Withdrawn
 Disconnected
 Number Changed
Contact ability  Spoke to Applicant  Wrong No
(Current & Future) OR  Not an office
 Colleague  Unable to Confirm
 Spoke to Receptionist  Required Extension / Dept to
 OR Security connect
 OR a person who  No such person
refuses to reveal  Shifted Friends / Relatives No

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identity  Dealer No
 Permanent / parents /
In Laws Residence
Confirmation of  Positive Response to  Applicant says not interested /
Application CPV Applied
 Not interested due to  Details do not tally
repeated verification  Colleague Refused to Provide
Details
Profile NTP Biz / Salaried

Reputation Colleague says don’t Give

 CD Rom Check mandatory and status to be updated in TVR Positive / Negative


CD ROM / BSNL check

Name & Address Name Only Name & Not found /


matches matches address address does other TELCOS
matches not match
Positive Negative Positive Negative Neutral
(Positive if
ownership proof
provided of the
same address)

Only address matches required proof of relationship


The status as per matrix be updated in TVR in LOS
For negative flagged cases proper reasoning to be documented in CAM if overridden

CPV Waiver

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Residence Business TVR


CPV CPV
Internal liability customer - salaried Waived Waived Required
Internal liability customer - self employed Waived Required Required
Internal asset customer – salaried Waived Waived Required
Internal asset customer – self employed Waived Waived Required
Internal customer asset and liability- firms Waived Required Required
& companies
CIBIL matches – salaried Waived Required Required
CIBIL matches – self employed Waived Required Required
CIBIL matches – firms & companies Waived Required Required

Conditions

1. For internal liability customer minimum account vintage should be 3 months and
there should be minimum six transactions in last 3 months excluding interest and any
other charges debited or credit in the account.
 There should not be any instances of cheque book returned (or) statement
returned instance of address not confirmed.
 The address in the bank statement / Finware should match with the address in
the application form

2. Internal asset customer following conditions should be met for CPV waivers.
 Account should be live at the time of new loan origination.
 The address in finnone should match with the address in the application form

3. For CIBIL Matches:

 The address in the CIBIL report should match with the application form
 The proof of the same should be in the file.

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 Should not be a bad match

Interpretation of CPV:

 Base don above criteria on each of the parameters over all status of the CPV
report has to be marked positive/Neutral/Negative

Positive:

 Address confirmed and reachable


 Customer to be Residing/Employed/Business exists at the given address and
should not be figuring in the negative criteria as per the grid
 Third party confirmation of the customer details Residence/Business/Employment

Negative:

 Customer and Address doesn’t exists (or) does not live there
 Negative feedback on profile & reputation parameters in the grid

Below are the minimum credit parameters which are required at the time of Login.

A) Common Credit parameters


 Residence ownership proof required in the name of applicant or blood relative in
resi cum office cases.
 In NRI and foreign national cases, resident Indian having owned residence in
India must stand as co applicant.
 Net worth of Pvt. Ltd. Company/Ltd Company must be positive. (Subscribed share
capital + reserves – Amount not written standing in asset side of balance sheet.)
B) Program wise Credit parameters

1. F4 Hockey program – Pre approved and pre qualified

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 Landline/WLL at office is compulsory required in addition to Landline/WLL/post


paid mobile the name of applicant at residence.
 Firm/company should stand as co applicant if partner/director wants loan
based on income of business entities and vice versa.
 Not to be funded to Trust and HUF, hence file not to be login.

2. Repayment Track program

 Minimum 12 months repayment track or track of at least 50% completed tenor


whichever is less required.
 Loan should not have been completed before 18 months prior to the date of
application.
 A4 segment vehicles not eligible under repayment track program, hence no
file to be logged in.
 Self employed individuals having residence in negative area, HRP 1 and HRP
2 not to be funded under the program, hence no file to be logged in.
 Only one vehicle can be funded under this program but can fund maximum 2
vehicles to CV customer.
 Minimum repayment of Rs. 1 Lacs for A1 and A2 segment car, Rs. 3 lacs for
A3 segment car and Rs. 5 Lacs for MUV required at the time of login.
 Not to be funded to Trust and HUF, hence files not to be logged in.

3. Companies, Firms, HUF’s and Trust

 Customer should have cash profit in the current year and earlier losses should not
be more than the capital (subscribed share capital + Reserves and surplus).
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Auto Loans

 One of director/partner/karta/trustee should be co applicant.


 Co applicant not required for companies having turnover > 100 crores OR Profit >
1 Crore.
 Landline at office (8 digits) compulsory required along with Landline/Mobile/WLL
at residence of partner/director/karta/trustee.
 HUF cannot be a partner in partnership firm and hence files not to be logged in.

4. Salaried-Big corporate

 Applicant should be employed with super CAT A/ CAT A/ CAT B/ CSA holder with
HDFC bank with 6 consecutive salary credits are eligible.
 If applicant is not working at above companies but if blood relatives (parents,
spouse or children) are employed with above companies and stands as co
applicant then can be logged in with income of co applicant.

5. Premium cars

 Minimum annual income should be 7.5 lac for salaried and Rs 5 Lac for others
 Repayment of ½ of proposed loan or salaried having credit card limit of 3 lac
documentary proof should be there.
 Bank statement should be provided at the time of login.

6. Deep geography
 Vehicle segment under this category should be A1, A2, A3, A4 and MUV no other
vehicle should be logged in.
 Land line and resident and office mandatory
 Resident ownership proof mandatory
 Banking with 3 Months statement at the time of login
7. Taxi Segment

 Salaried employees file under this program should not be logged in.

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 No of RC should be there as per the policy norms


 To calculate the DSCR and D/E ration financials are must for logged in the
files.
 Repayments should be there.

8. NID (other than HRP/NTS)

 Only eligible models A1, A2 and A3 should come for logged in with cap on Max
Loan amount and LTV should be adhere.
 6 month bank statement should be provided at the time of logged in.

9. HRP1 And HRP

 Appl. Should come for eligible vehicle segment A1,A2,A3,A4 and MUV
 Repayment mandatory for HRP 2
 Min age norms of 25 yrs for salaried and>30 yrs for self employed should
adhere.

10. Self employed>30 yrs

 Repayment for A3 and MUV is mandatory


 No rented resi cum office should be logged in.

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OFF MARKETING CHANNELS

OFF MARKETING CHANNELS are basically involve into their primary business or
profession like Chartered accountants, stock Brokers and as an extra source of income they
work as the channel partners for different companies or financial institutes by selling their
different products. E.g. Loan investment etc. to their own existing customer base.
This leads to a two way benefit both to the channels as well as the companies they
are associated to. For these channels it is an extra source of income for which they need to
search customers as they are existing customers for the financial institutes. Resulting it
leads to a low cost business as they need not to pay high commission to these channels
and most importantly it gives a non delinquent customer base to these institutes.

Identified Off-Marketing channels till date:-

1. KARVY
2. ANAND RATHI SECURITIES
3. HDFC LTD.
4. BAJAJ CAPITAL
5. CHARTERED ACCOUNTANTS

CHARTERED ACCOUNTANTS

 Benefits
 cost efficient
 Business gained is at low cost as compared to marketing channels.
 Commission given to marketing channels is near about 4-5% whereas in the
case of off-marketing channels it is about 2%.
 More clientage
 High profile clientage
 Good business

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ANALYSIS OF SURVEY

- UNIVERSE (RAJASTHAN) – 5089


- SAMPLE TAKEN (RAJASTHAN) -294
- BIZ SOURCE (RAJASTHAN) 88

MAY

TGT V/S ACHIVEMENT


OPEN
Location Business volume Total DSA DDSA HBL CA
Jaipur 800 596 238.06 357.94
600 543.71 344.15 199.56
200 25.9 25.9 0
400 357.15 0 0 357.15 0
Alwar 100 86.18 34.94 19.1 32.14 0
Kota 300 290.82 176.05 43.82 70.95 7.75
Ajmer 300 293.12 199.78 67.44 25.9 4.8
Bhilwara 225 185.67 131.54 0 54.13 13.77
Udaipur 500 459.38 3852.21 19.87 57.3 16.31
Jodhpur 525 531.54 305 119.25 107.29 8.1
Bikaner 150 123.21 49.62 0 73.59 0
Rajasthan 4100 3492.68 1887.25 826.98 778.45 50.73

JUNE

TGT V/S ACHIVEMENT


OPEN
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Location Business volume Total DSA DDSA HBL CA


Jaipur 600 513.05 258.89 254.16
600 538.1 348.19 189.91
65 0 0 27.96
285 339.2 339.2
Alwar 80 103.51 23.91 2 77.6 0
Kota 225 238.54 91.92 96.04 50.58 7.05
Ajmer 250 317.71 152.48 117.64 47.59 1.8
Bhilwara 225 156.28 98.92 3.04 54.32 18.99
Udaipur 400 360.31 251.77 33.81 74.73 8.25
Jodhpur 450 441.56 204.97 155.43 81.16 15
Bikaner 120 103.34 41.45 0 61.89 7.23
Rajasthan 3300 3111.6 1472.5 852.03 787.07 86.28

CONCLUSION

As the result of the survey, a positive feedback was observed. The CA’s are excited by
the new avenues of the income. According to them it gave them an effortless extra
source of income on one side and also helps them to strengthen their relationship with
existing customers.

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Auto Loans

The customers are also benefited with this venture as previously they had to deal
with the dealers but now they can avail the products and services with the help of the
type between the bank and the channel. Moreover this also gives an additional customer
base to these channels as they get references from their existing customers who avail
these services.

CA’s are happy to be a channel of the bank. They showed excitement and
satisfaction towards the work process and the services of HDFC. In total to sum up it can
be said that this new channel policy seems to be beneficial and fruitful for all the three
parties i.e. company, channel and customers.

SWOT ANALYSIS

STRENGTHS

 Low in cost
 Quality business
 High profile clients

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WEAKNESS

 CA’s generally tend to be busy, so approaching them is difficult.


 Gaining attention towards the proposal becomes difficult

OPPURTUNITY

 Anand Rathi securities


 Karvy
 HDFC ltd.
 Bajaj capital

THREAT

 Delinquency control
 Collateral on records.

SUGGESTIONS

 Loans should be provided very easily.

 There should be less formality for taking loan.

 Terms and conditions should be easily understandable.

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 Loan should be provided as soon as possible.

 Interest rate should be less as compare to other banks.

 The customers should be comfortable while taking loans as compared other banks.

BIBLIOGRAPHY

By the help of Manuals

HDFC Bank report 2009 and internet

57
Auto Loans

By the help of Other Sources

By the Heads & the consultant of HDFC bank


By Personal Surveys

By the helps of Websites

www.HDFCBank.com
www.google.com

58