SYNOPSIS

PRE-OWNED CAR FINANCE

Introduction

Mahindra Finance began as a captive financier of Mahindra Utility Vehicles in the

early 90s. From Mahindra UVs to tractors to non-Mahindra products, the
company has diversified into a financial services provider with a whole suite of
financial solutions tailored to the under-served customer in under-penetrated
rural markets.
Our product portfolio consists of vehicle finance, which includes financing of
passenger vehicles, utility vehicles, tractors, commercial vehicles, construction
equipment; and pre-owned vehicles and SME finance, which includes project
finance, equipment finance, working capital finance and bill discounting services
to SMEs. The company also undertakes mutual fund distribution, fixed deposits
and personal loans tailor-made to suit its unique customer set.
Our endeavour to stay deeply connected with the customer begins with our
recruitment strategy. We consciously recruit employees at the local level, rather
than appoint them from cities and depute them to rural branches.
Mahindra Finance is the only Non-Banking Financial Company from India to be
listed on Dow Jones Sustainability Index in Emerging Market Category. Mahindra
Finance has been ranked in Top 15 India's Best Workplaces to Work in BFSI, 2018
by Great Place to Work® Institute India. We have also been recognized as Aon
Best Employer 2017 and Best BFSI Brands 2018 by The Economic Times.
Vision
To be a leading financial services provider in semi-urban and rural India.
Mission
To transform rural lives and drive positive change in the communities.

USED CAR LOANS

Used car loans are installment loans for the purchase of used vehicle to be used
for personal, business or commercial purposes. The used car loan Programmers’ is
a retail asset product & can be availed by the Individuals, Sole Proprietor,
Partnership Firms, Pensioner, Farmers, Public & Private companies who satisfy
the credit parameters set out in this manual. The bank would assess the credit
worthiness of the applicant, approve and disburse the loan and also mark a lien
on the vehicle as a security. The lien on the vehicle has to be a first lien.

REVIEW OF LITERATURE
For any research work, it is necessary to take the review of the literature
pertaining to the research subject, because the review of the literature helps the
researcher to determine the precise subject area and to arrange research work in
proper way.
Aditya Puri (2005), in his article “A Booming Segment”, quotes that leading
institutions and banks have evolved their offerings to make the products more
attractive for the customers and process from application to disbursement more
streamlined. He expresses that this is the fastest growing segment in financial
sector. The leading institutions are more shifted from unorganized to organized
lending. The organized leading means greater transparency, better
documentation, easier and speedier application and disbursement process,
attractive offers and interest rates.
V.Sumantaran (2005) in his article entitled “Player Plan Expansion,” stated that,
expounds the major role played by the automobile industry in the Indian
economy. He points out that the automobile is one of the largest industrial
sectors with a spectacular turnover, which amounts roughly to 5% of the GDP. It
also plays a significant role in creating employment. It employs 2 million persons
directly and 10 million indirectly.
Pankaj Deval (2007) in his article, “Auto Majors Cut Production,” pointed out that
auto companies, both of 3-wheelers and 4-wheelers have been cutting their
production. Almost all the major companies from Tata Motors, Bajaj, and Hyundai
to Toyota have cut their productions in May 2007 as demand shrank d

Ue to a variety of factors, led by rising interest that pushed up 22 the cost of

production. According to him, it is a worrying trend and things are likely to
worsen in the coming months. The demand has hit even this critical segment due
to the rising interest rates.
Dr Ajoy S Joseph (2011) One of the most important factors that influence
purchase of passenger cars in India is the availability of auto finance or consumer
credit. This empirical study analyses the behavioral pattern exhibited by
passenger car customers towards auto loan schemes and Financiers when they
purchase their cars.

OBJECTIVE OF THE STUDY

 TO STUDY THE CAR LOAN PROVIDED BY BANK OF INDIA TO THEIR
CUSTOMERS.
 TO STUDY THE DETAILED PROCEDURE INVOLVED IN THE SANCTIONING OF
CAR LOAN.
 TO STUDY THE AWARENESS OF THE CAR LOAN AMONG THE CUSTOMER
 MAKE A COMPARATIVE STUDY OF BANK OF INDIA CAR LOAN WITH OTHER
COMPETITIVE BANKS
 TO STUDY THE RULES AND DOCUMENTS REQUIRED BY BANK OF INDIA

FOR CAR LOAN.