PROJECT REPORT ON

LOAN PROCEEDURE OF BAJAJ FINSERV

AT

FOR THE PERIOD

SUBMITTED IN PARTIAL FULFILMENT OF THE

REQUIREMENT OF BHARATHIYAR UNIVERSITY FOR
THE AWARD OF

MASTER OF BUSINESS ADMINISTRATION IN FINANCE

SUBMITTED BY

RAJA MUZAWAR

18P35J0027

UNDER ESTEEMED GUIDANCE OF

PROF. SUCHARITA

INTERNATIONAL SCHOOL OF MANAGEMENT SCIENCE

BANGALORE

BATCH 2018-2020

[1]
 DECLARATION

I RAJA MUZAWAR student of 3rd semester of MASTER OF BUSINESS

ADMINISTRATION ( 2018-2020 ) hereby declare that the project report
entitled “RECRUITING PROCESS AND DURABLE LOANS” with
reference to “ RETAIL INDUSTRY ” ( RELIANCE DIGITAL MANTHRI
MALL ) is submitted by me under the esteemed guidance of PROF.
SUCHARITA, INTERNATIONAL SCHOOL OF MANAGEMENT
SCIENCES, BANGALORE in partial fulfillment of requirement of
programmed in affiliated to BHARATHIYAR UNIVERSITY,
COIMBATORE is a bonafied work done by me and has not been submitted
earlier to any other university or institutions partially or fully for the award of
any degree or diploma.

PLACE : BANGALORE RAJA MUZAWAR

DATE : 3RD SEMESTER

MBA ( HUMAN RESOURCE )

18P35J0027

2018-2020

[2]
ACKNOWLEDGEMENT

[3]
 TABLE OF CONTENTS

SI.NO TITLE PAGE No

1 EXECUTIVE SUMMARY 6
2 INTRODUCTION TO PROJECT 8-14
3 COMPANY PROFILE 15-30
4 INDUSTRY PROFILE 31-37
5 PROJECT PROFILE 38-40
6 RESEARCH AND DEVELOPMENT 41-45
7 FINDING 46
8 ANNEXURE 47-56
9 CONCLUSION 57-58
10 RECOMMENDATION 59-60
11 BIBLIOGRAPHY 61-62

[4]
EXECUTIVE SUMMARY

[5]
CHAPTER 1
INTRODUCTION

[6]
WHAT IS FINANCE?

Finance is the practice of funds management, or the allocation of assets and

liabilities over time under condition of certainty and uncertainty. A key point of
finance is time value of money, which states that a unit of currency today is the
worth more than the same unit of currency tomorrow. Finance aims at price, assets
based on their risk level and expected rate of return. Finance can be broken into
three different sub categories: public finance, corporate finance and personal
finance.

Therefore, “FINANCE IS THE MANAGEMENT OF MONEY AND OTHER

VALUABLE, WHICH CAN BE EASLY CONVERTED INTO CASH”
Finance is also a category of stock containing firms that provides financial services
to commercial and retail customer. This sector includes banks, investment funds,
insurance companies and real estate. As financial service performs best in low
interest rate environment therefore, a large portion of this sector generates revenue
from mortgages and loans, which gains value as interest rate drop. On the other
hand, new project also require financing, which usually lead to large number of
loans. Therefore “FINANCE IS OFTEN DEFINED SIMPLY AS FUNDS
MANAGEMENT.”

WHO IS CONSUMER?

Consumer is an individual who buy product or services for personal use not for
manufacture or resale. A consumer is someone who can make the decision whether
to purchase or not to purchase a product at the market, and someone who can be
influenced by marketing and advertisements. Any time consumer goes to the market

[7]
and purchases products like toys, shirt, beverage, television, smart phones etc. they
are making that decision as a consumer.

According to “CONSUMER PROTECTION ACT 1985”

Consumer is defined as- “Any person who buy any goods for consideration which
includes a person who obtain such goods for its own use or for any commercial
purpose”.

WHAT IS CONSUMER BEHAVIOUR ?

Consumer behaviour is the series of behaviours or patterns that consumers follow

before making a purchase. It starts when the consumer becomes aware of a need or
desire for a product, then concludes with the purchase transaction.
You can also count repeat purchases under the umbrella of consumer behaviour. For
instance, some customers might buy every product you produce, while others will
only buy one and disappear.
Through consumer behaviour, you can also learn how customers interact with and
use your products. This knowledge can help inform future decisions about product
creation.

Several factors go into the definition of consumer behaviour, including the

following:
How consumers behave individually and in groups
Why consumer behaviour patterns change based on the types of products and
services they purchase.
• When consumers are most likely to make a purchase

• How a customer feels directly before buying a product

• How that customer feels directly following the purchase

[8]
• Which questions or objections contribute to the buying decisions

• The number of touch points a customer makes with a brand or product before
buying.

We don’t mean to overwhelm you, but each of those factors is essential to

understanding customer behaviour. If you don’t know how to anticipate your target
customer, how can you effectively market to him or her?

Why Should You Study Consumer Behaviour?

Online entrepreneurs don’t always live near their customers. In fact, they might sell
to people across the world.

Entrepreneurs can’t always just shake hands with their target audience members and
get to know them. Research is often necessary.

You should study consumer behavior so you know how to create, market, and sell
your Knowledge Commerce products effectively. The more data you gather, the
better your decisions become.

Imagine, for instance, that you’re creating an online course for people who want to
learn how to play the guitar. You would probably enjoy more success if you knew
several things about your target market:

• Whether they had bought any other music-related educational products

• How much time they have to devote to learning to play the guitar
• What motivates them to learn guitar
• How much money they can allocate to musical education
• What pain points they experience
• Whether they have any objections to learning the guitar online
[9]
• What questions they have about online musical education
You can find the answers to all these questions, but only if you research consumer
behaviour. That’s why you need to find a place for this process in your workflow.

The Three Factors

• Psychology

• Personality

• External Motivators

CUSTOMER PURCHASING POWER

Consumer purchasing power measures the value in money for which consumers
may purchase goods or services.

Customer purchasing power differ from person to person as depends on the poverty
line of an individual.

As India is developing country lot of changes in both person and industry wise this
change improves the disposal income of an individual

Now people tend to buy high end products by using the finances that offering by
different Financing services.

To support peoples financial services coming up with new plans schemes that
attracts customer to buy from finance.

[10]
As everyone knows that BAJAJ is very big and reputed company come up in
finance field to help customer.

Bajaj has one the best thing is it giving 0% interest on loans.

And they have an tenure period according to the customers this makes hazzle free
payments.

Value of money measured by the quantity and quality of goods and services it can
buy.

BAJA HAS TWO TYPES OF LOAN

• CONSUMER DUARABLE LOANS (CD LOAN)

• CONSUMER DURABLE DIGITAL PRODUCT LOANS (CDD LOAN)

WHAT IS CD & CDD LOANS IN BAJAJ FINANCE?

“CD & CDD FINANCING MEANS TO PROVIDE THE FINANCE ON THE

CONSUMER DURABLE PRODUCTS LIKE WASHING MACHINE,
TELEVISION, SMART PHONES ETC, IT IS KNOWN AS CONSUMER
DURABLE FINANCE”.

Consumer durable finance provide zero percent interest rate on durable products to
the consumer which give another compelling reason to opt for zero percent interest
rate schemes on products. Through this scheme not only customers gets the benefit
[11]
but it is also beneficial to lenders, retailers boost to sales and increased consumer
preference to words high margin products. Financing on consumer durable enables
customers, and especially those with low income level to use future income streams
to buy consumer products upfront and pay in instalments over a period.

The most popular scheme prevalent in the market currently is the 12/4 scheme,
where the financer collects the amount for the first four months as initial down
payment from the buyer and then disburses the full amount to dealer. The financer
then recovers the balanced amount on 8 monthly installments from the buyer.

CONSUMER DURABLE DIGITAL PRODUCT

Digital products means all the IT products comes under CDD loans.

EX: smart phones, laptops etc

For CDD finance provide zero percent interest rate on durable products to the
consumer which give another compelling reason to opt for zero percent interest rate
schemes on products. Through this scheme not only customers gets the benefit but it
is also beneficial to lenders, retailers boost to sales and increased consumer
preference to words high margin products. Financing on consumer durable enables
customers, and especially those with low income level to use future income streams
to buy consumer products upfront and pay in instalments over a period. The most
popular scheme prevalent in the market currently is the 9/0 scheme, where the
financer doesn’t collects the amount from the buyer and then disburses the full
amount to dealer. The financer recovers all the balanced amount on 9 monthly
installments from the buyer.

[12]
 CHAPTER 2

COMPANY PROFILE

[13]
HISTORICAL BACKGROUND OF BAJAJ FINSERV

Bajaj Finserv Limited [BFL] was formed in April 2007 which is situated in 4th
floor, Bajaj finserv corporate office, Pune -Ahemednagar Road, Viman Nagar, Pune
411014 [Maharashtra].
As a result of its demerger from Bajaj Auto Limited [BAL] to act as a pure play
financial services business, the process of demerger was completed in February
2008. This demerger was not only to unlock values in high growth business areas of
Auto, insurance, finance sector and wind power. But also, to run independently
these core business and to strengthen the competencies.

The wind power project and stakes in life and general insurance companies and
consumer durable product finance along with their respective assets and liabilities
got vested in Bajaj Finserv Limited [BFL]. In addition, to that cash and cash
equivalent of INR 8,000 million [then market value] was also transferred to the
company. The demerger has enabled investors to hold separate focused stocks
and also facilitate transparent benchmarking of the companies to their peers in
their respective industries. The constantly changing demographics and dynamics of
the Indian economy, has led to creation of various needs of the average Indian
customer. The Indian customer now demand 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.

Therefore, Bajaj Finserv Limited was formed specifically to cater these needs for
Indian customers. The company also formed to improve the lives of a growing
number of people in the country, and in doing so, delivered superior corporate
values to its shareholders. The operating companies carry with them the Bajaj
Brand, which holds with its decades of commitment to business ethics, integrity
and highest standards of fiduciary responsibility.
[14]
VISION AND MISSION OF THE ORGANISATION

VISION

Bajaj finserv has a vision to become a full-fledges financial services company and
be the financial partner to the Indian consumer and help them across their financial
needs, whether for finance, for investment management, for protection or for post-
retirement support, throughout its life cycle.

MISSION

Bajaj Finserv aims to be the most useful, reliable and efficient provider of financial
services. It’s our continuous endeavour to be a trustworthy advisor to our clients,
helping them achieve their financial goals.

PRESENT PROFILE OF BAJAJ GROUP

Bajaj group is an Indian conglomerate founded by jamnalal Bajaj in 1926 Mumbai

[Maharashtra]. Bajaj Group is one of the oldest and largest conglomerates based in
Mumbai, Maharashtra. At present, it is a public held company which is served
worldwide with 45000 employees. The group also comprises of 34 companies and
its flagship company Bajaj Auto is ranked as the world’s fourth largest two and
three wheeler rer. Rather than this the company is involved in various other
industries that includes automobile, home appliances, lighting iron and steel,
insurance, travel, finance. The revenue of the organization is 425540 million at
present. And this group is headed by chairman and managing director Rahul Bajaj.
Bajaj Fincerve Limited is the holding company for the financial services business of
Bajaj Group which was incorporated on 30 April, 2007 and the organization is
headquartered in Pune, Maharashtra. The director of Bajaj Finserve Limited is Rajiv

[15]
Bajaj. Bajaj Finserv Limited is headed by chairman Rahul Bajaj, vice chairman
Nanoo Pamnani and managing Director Sanjiv Bajaj.
Bajaj Fincerv had a joint venture with an insurance organization i.e. Allianz SF,
Germany which is at present named as Bajaj Allianz Life Insurance Company
Limited. Both the organizations are engaged in life and general insurance business
respectively. Its subsidiary Bajaj Finserv Limited is a Non-Banking Finance
Company which engaged in consumer Finance, SME Finance and commercial
lending. Bajaj Financial solution Limited, a wholly owned subsidiary of Bajaj
Finserv Limited is engaged in Wealth Advisory business.

PRODUCT PROFILE OF BAJAJ FINSERV

Bajaj Finserv Lending offers loans for various needs. Bajaj Finserv offer loans for
Bajaj Auto, Two wheelers under the name of Bajaj Auto Finance Ltd. The
organization also 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 the Bajaj Finserv Lending.
Bajaj Finserv lending is one of the most diversified NBFC’s in the market catering
to more than 5million customer across the country. Apart from being a well-
recognized organization, they pride us for holding the highest credit rating of
FAAA/Stable for any NBFC in the country today.

The product offerings also include consumer Durable Loans, Personal Loans, Loan
against Property, small Business Loans, Two- wheeler and Three-wheeler Loans,
construction equipment Loans, Loans against securities and Insurance services.

[16]
PRODUCTS COVERED UNDER CONSUMER
DURABLE FINANCE

Bajaj Finserv gives loan to the customers on Consumer Durable Products at 0 %

INTREST RATE on wide range of products and it is in over 101 cities across India.
Some of the Consumer Durable Products that are financed by Bajaj Finserv are as
follows:

• LED/LCD
• Washing Machine
• Microwave Ovens
• Refrigerators
• Cameras/Camcorders
• Dishwashers
• Generators
• Dryers
• Laptops/Desktops
• Smart phones
• Music system
• Inverters
• Air conditioners
• Water purifiers/R.O
• Vacuum cleaners
• Home Appliances

[17]
FEATURES AND BENEFITS OF BAJAJ FINSERV

FEATURES

Bajaj finserv is the sole organized financier in the market offering Consumer
Durable Loans on products at 0% interest rate with instant approval. Consumer
Durable Loans are EMI Loans for Consumer Durable Products like Washing
Machines, Refrigerators, LED’S, LCD’S etc. the customer can just walk into any of
the dealer partner
Showrooms and avail the facility for the product of their choice. Loans are available
for amounts more than Rs.7000 and multiple credit programs are also available to
the customers.
The customer can avail loans ranging from Rs.7, 000 to RS. 5,000 for Washing
Machine, Refrigerators, LCDs and other consumer durable products.

The customer can apply online through ‘BAJAJ FINSERV APPLICATION’ called
“EXPERIA” or walk in to one of our dealer partner showrooms and get your loan
approved in 15 minutes.

BENEFITS

• 0% interest rate finance option available for customer.

• Simple process with minimum documentation.
• On the spot approvals with fastest processing.
• Flexible repayment option.
• ECS clearing, reducing hassle of arranging cheques.
• Extended warranty available.
• Pre-approved personal loan offers for existing customers.

[18]
GLOBAL & INDIAN OPERATIONS AND

MARKET SHARE OF BAJAJ FINSERV

GLOBLE OPRATIONS

Bajaj finserv is a domestic company and have not yet gone Global.

INDIAN OPERATION

Bajaj Finserv, a part of Bajaj Holdings and Investments Limited, is an Indian

financial services company which focuses on lending, asset management, wealth
management and insurance.
The company employs over 20000 employees through its joint ventures and
subsidiaries. It has established across 1400 locations nationwide. The company is
engaged in customer Durable 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.

Apart from financial services, Bajaj Finserv is also active in wind-energy

generation. The company mainly does B2B (Business to Business) and the business
partners are various outlets like Reliance Digital, Croma, Adhiswar, Girias, pai
International, Sony, etc. all over India.

[19]
COMPETETORS

[20]
 AWARDS AND RECOGNITIONS OF BAJAJ FINSERV

The recognition that matters the most to us is the one we receive from our
customers. That was how it was when we started. That will be even when we have a
treasure trove of Industry Recognition and Awards.

AWARDS

Ranked Amongst Top 3 Financial Services Company

We are proud to be ranked amongst the top 3 Financial Services companies to work
in India. The ranking was conferred 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 INNOVATION AWARD

Recently, we also won the “CIO 100 INNOVATION AWARD” for two of our
innovation- EMI card and flexi saver.CIO100 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 honouring 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 Organization (and the people within them) that are using
Information Technology in innovation ways to deliver business value, whether by
creating competitive advantage, optimizing business processes, enabling growth or
improving relationship with customers. Hosted in countries such as Canada,
Sweden, Australia, Singapore, Vietnam, Hungary and India, the CIO100 Awards is
a truly Global Recognition. It is an acknowledged mark of excellence in enterprise
Information Technology.
[21]
RECOGNITIONS

We are one of very few NBFC’S in India to be awarded The Highest Credit Rating
of FAAA/ Stable for our “FIXED DEPOSIT PROGRAMMED”. While this
indicates a very strong degree of safety with regard to timely payment of interest
and principle on the instrument by the ‘CREDIT RATING AND INFORMATION
SERVICES INDIA LIMITED (CRISIL), it resonates with our long term orientation
of sustainability. In addition to this, we also pride ourselves with a high rating in the
following programs:

Highest Credit Rating of FAAA/Stable for our fixed deposit programmed.

A1+ rating for CRISIL and ICRA for short-term debt programmed.
AA+/ Stable from CRISIL and ICRA for Long-Term Debt Programmed.
AA+/stable from CRISIL and ICRA for subordinated Debt Programmed.

[22]
 CHAPTER 3

INDUSTRY PROFILE

[23]
INDUSTRY OVERVIEW

Financial services are the economic services provided by the finance industry,
which encompasses a board range of businesses that manage money, including
credit unions, banks, credit card companies, consumer finance companies, stock
brokerages, investment funds, real estate funds and some government sponsored
enterprises.

The financial service industry is divided into two:

BANKING INSTITUTION
Banking institution deals with withdrawals and deposits as well as term loans and
other financial services. The different products and services provided by banking
institutions can be broadly classify into three:

RETAIL BANKING
Under the retail banking banks provide the traditional services that they provide to
public. Like:

Accepting different term deposits.

Providing term loans and negotiating for loans and advances.
Providing cash credit and overdrafts.
Safe keeping of bonds and valuables.
Keeping record of the account details of the customers.

TRADE FINANCING

Issuing letter of credit and confirmation of credit.

Collection bill of lading, bills of exchange, promissory notes, drafts.

[24]
TREASURY OPERATION

Dealing with foreign exchange

Dealing in share and debentures (holding, acquiring, underwriting)
Dealing of bonds and securities on behalf of constituents(buying and selling)
These are the different services provided by banks. Apart from these services bank
offers different products to its customers for banking purposes. Like -

CREDIT CARDS

The credit card holder can draw a limit of money that bank has provided them. They
have to repay the amount they withdrawn by using credit card. Bank gives a grace
period to repay the amount.

DEBIT CARDS

Whenever a debit card holder uses his card the amount he used by card will be
deducted from his savings account.

AUTOMATIC TELLER MACHINES [ATM’S]

It helps the card holder to easily withdraw money without going to the bank. He can
just swipe the card in an ATM and he can get the cash.

OTHER SEVICES
Some of the other services the bank provides are: E-cheques, electronic fund
transfer, telebanking, internet banking, and mobile banking.
NBFC’S

[25]
Non-Banking Financial Companies (NBFCs) are Financial Institutions registered
under the Company Act, 1956 that provide banking services without meeting the
legal definition of bank, i.e. one that does not hold a banking license. These
institutions typically are restricted from deposits from the public depending on the
jurisdiction. None the less, operations of these institutions are still covered under a
country’s banking regulations.
The specific banking products that can be offered by NBFC’s depends on the
jurisdiction, may include services such as: loans and credit facilities, savings
products, investments and money transfer services.
NBFC’s offer most sorts of banking services, such as loans and credit facilities,
private education funding, retirement planning, trading in money markets,
underwriting stocks and shares, TFC’s (Term Finance Certificate) and other
obligations. These institutions also provide wealth management such as: managing
portfolios of stocks and shares, discounting services e.g. discounting of instruments
and advice on merger and acquisition activities. The number of non-banking
institutions also frequently support investments studies or companies. However,
they are typically not allowed to take deposits from the general public and have to
find other means of funding their operations such as issuing debt instruments.

As per RBI NBFC’s are classified as:

Assets Finance Company (AFC)
Investment Company (IC)
Loan Company (LC)
Assets Finance Companies (AFC)
Assets Finance companies are financial institutions whose principal business is of
financing physical assets such as: automobile, tractors, construction equipment and
other machines.
Ex: Bajaj Finance LTD, Fullerton India etc.
Investment Companies (IC)

[26]
Investment Companies are generally involved in the business of share, stocks,
bonds, debentures issued by government or local authority that are marketable in
nature.
Ex: Stock Banking Companies, Gilt firms.
Loan Companies (LC)
Loan companies are loan giving companies which operate in the business of
providing loans. These can be housing loans, gold loans etc.
Ex: Mannapuram Gold Finance, HDFC etc.

GLOBAL SCENARIO OF FINANCE INDUSTRY

The financial services industry is actually developing very fast. The developments
include worldwide structural reforms for increasing effectiveness and capability of
the industry in the competitive market. The actual position of integrated national
infrastructure would be to stimulate and also maintain financial development. The
industry features maintained velocity using the developing needs regarding
corporate and business and also other individuals.

CHALLENGES WHILE OPERATING GLOBALLY

Difficulty in managing and identifying risk.

Lack of people with financial skill having knowledge about the industry and
technical competence.
Restricted business and technology competition
Proficient to deal with escalating transaction volumes, regulations and incorporation
of formerly unequal global markets.
Therefore, the worldwide scenario of financial services industry is the same. Most
of the countries are following the same traditional way of recording with the help of
new technologies and software’s. The financial service industry is creating more
opportunities. The market is increasing day by day. The competition is also
[27]
increasing because the product the companies in financial service industry sells are
mostly same. The companies attract their customers by the services they provide.

INDIAN SCENARIO OF FINANCE INDUSTRY

India has a diversified financial sector, which has undergoing rapid expansion. The
sector comprises commercial banks, insurance companies, non-banking financial
companies, co-operation, pension funds, mutual funds and other smaller financial
entities. The financial sector in India is predominantly a banking sector with
commercial banks accounting for more than 60% of the total assets held by the
financial system.
India’s services sector has always served the country’s economy well accounting for
about 57% of the Gross Domestic Products [GDP]. In this regard, the financial
services sector has been an important contributor.
The government of India has introduced reforms to liberalize, regulate and enhance
this industry. At present, India is undoubtedly one of the world’s most vibrant
Capital Markets. Challenges remain, but the future of the sector looks good. The
advent of technology has also aided the growth of the industry.
NBFC’s are In India the growth of NBFC’s has been constrained due to lack of
adequate capital. The major NBFC’s in India have their relative specialization, for
E.g. HDFC (Mortgage Loans) IDFC (Infrastructure loans), Mahindra finance,
power finance Corporation (power financer) & Shriram transport Finance (auto
loans). The trend of segmental monopoly is changing as banks are entering long-
term finance and FI’s also meeting the medium and short- term needs of the
business masses.
Non-banking financial companies (NBFC’s) are financial institution registered
under the companies Act, 1956 that provide banking services without meeting the
legal definition of a bank, i.e. one that does not hold a banking license. These
institutions typically are restricted from deposits from the public depending on the

[28]
jurisdiction. None the less, operations of these institutions are still covered under a
country’s banking regulations.
The specific banking products that can be offered by NBFC’s depends on the
jurisdiction, may include services such as loans and credit facilities, savings
products, investments and money transfer services.
NBFC’s offer most sorts of banking services, such as loans and credit facilities,
private education funding, retirement planning, trading in money markets,
underwriting stocks and shares, TFC’s (Term Finance Certificate) and other
obligations. These institution also provide wealth management such as: managing
portfolios of stocks and shares, discounting services e.g. discounting of instruments
and advice on merger and acquisition activities. The number of non-banking
financial companies has expanded greatly in the last several years as venture capital
companies, retail and industrial companies have entered the lending business. Non -
bank institutions also frequently support investments in property and prepare
feasibility, market or industry studies or companies. However they are typically not
allowed to take deposits from the general public and have to find other of funding
their operations such as issuing debt instruments.
The main differences between Banks and NBFC’s are:
Non-banking financial institution cannot accept deposits which are repayable on
demand. They allowed accepting and renewing public deposits for a minimum
period of 12 months and maximum period of 60 months. The deposits taken by
NBFC’s are not insured and it does not carry the guarantee of RBI.
They cannot issue demand draft only banks can issue demand drafts.

[29]
 CHAPTER 4
PROJECT PROFILE

[30]
 OBJECTIVES OF PROJECT REPORT

• To study the overview of the Industry and company.

• To understand the Indian and Global scenario of finance industry.

• To know how assets management financial services work.

• To create awareness and increase finance penetration.

• To understand the complete operation of processing loans.

• To study the different financial schemes of Bajaj Finserv.

• To study the surrogates of Bajaj Finserv.

SIGNIFICANCE OF THE PROJECT REPORT

This study enables us to understand the purchasing pattern of Customers and can be
used as a reference tool to frame new and progressive finance schemes which would
enhance more acceptance and popularity of consumer durable finance.

BENEFITS OF THE PROJECT

 Schemes related to the consumer durable finance is always welcome by the

customers.
 Tracking methodology of customer is very smoothly (by using EMI card).
 Provision of easy, simple, and adequate credit.

[31]
LIMITATION OF THE PROJECT REPORT

 My major limitation of this project is time frame.

 The study is restricted to consumer Durable Loan only.

 Many times consumers are not interested to respond to the questions asked by
the researcher.
 Sometimes customers get dissatisfied due to the restricted policies of
EMI procedure.
 Since there was specific time span, the study has been limited from
closing satisfactory information.
 No single work is exception to the limitation; every work has got it’s
owe limitations, because of time constraint my study confines only to
Bangalore city. So, it is to be assumed that the sample represents total
population.
 The study is restricted within Bangalore city and cannot generalize in the
whole state of Karnataka. Because RELIANCE DIGITAL ORION
MALL has limited hold in the city at that particular area where the store
is located through which we can only be able to study the purchasing pattern
of RELIANCE DIGITAL ORION MALL Store consumers only.

[32]
 CHAPTER 5
RESEARCH DESIGN AND
METHODOLOGY

[33]
RESEARCH DESIGN

esearch design is a plan of action and a plan for collecting and analysing the data in
an economic, Efficient and relevant manner. Research Design is the plan for a study
that will lead to the most economical method for collection of the required data and
their analysis. It is proposed and properly designed in collecting the data. The
present research is descriptive and exploratory in nature, which seeks to discover
ideas, insights and to bring out new relationships.

MARKET RESEARCH DESIGN

Descriptive and exploratory

DATA SOURCE
Primary and secondary

RESEARCH APPROACH
Observational method

RESEARCH INSTRUMENTS
Observation, Store Audits and Store Records

SAMPLE UNIVERSE
Bangalore, CROMA Infiniti Retail Store.

SAMPLE SIZE
50 samples

MODE OF DATA COLLECTION

Respondents to be chosen randomly
[Random Sampling]

[34]
RESEARCH METHODOLOGY

Research methodology is the process used to collect information and data for the
purpose of making business decisions. The methodology may include publication
research, interview, surveys, observations and other research techniques, and could
include both present and historical information. The present research is based on
observational method.
Market research

Descriptive Research

Descriptive research is used to describe characteristics of a population or

phenomenon being studied. It does not answer question about how/ when/why the
characteristics occurred. Rather it addresses the “what” question (what are the
characteristics of the population or situation being studies). The characteristics used
to describe the situation or populations are usually some kind of categorical scheme
also known as descriptive categories. Descriptive research generally precedes
explanatory research.

Exploratory Research
Exploratory research is the research conducted for a problem that has not been
clearly defined. It often occurs before we know enough to make conceptual
distinctions or posit an exploratory relationship. Exploratory research helps
determine the best research design, data collection method and selection of subjects
it should draw definitive conclusion only with extreme caution. Gives its
fundamental nature, exploratory research often concludes that a perceived problem
does not actually exist. Exploratory research often relies on secondary research such
as: reviewing available literature and/or data, or qualitative approaches such as:
information discussions with consumers, employees, management or competitors,
and more formal approaches through in depth interviews, focus groups, projective
methods, case studies etc.
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DATA SOURCE

PRIMARY DATA
Primary data are those which are collected fresh and for the first time, and thus
happens to be original in character. It is the main source of data for the project. I
have collected the data through store audits.

SECONDARY DATA
Secondary data are second hand or published information data that were collected
for another purpose and already exist somewhere or which have already been passed
through statistical process. Secondary data provides a starting point for research and
offer the advantages of low cost and ready availability. Secondary data is collected
to acquire more information, which will be helpful in solving the problems. In this
project work secondary data are collected through company brochures and other
publications. Internet also plays a vital role in collecting the secondary data.

Research Approach

Observation method
Observational research (or field research) is a type of co-relation (i.e., non-
experimental) research in which a researcher observes on going behaviour. There
are a variety of types of observational research, each of which has both strengths
and weaknesses. These types are organized below by the extent to which an
experimenter intrudes upon or controls the environment. It is a social research
technique that involves the direct observation of phenomena in their natural setting.
It is typically divided into naturalistic (or “nonparticipant”) observation, and
participant observation. Naturalistic (or nonparticipant) observation has no
intervention by a researcher.

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It is simply studying behaviors that occur naturally in
natural contexts, unlike the artificial environment of a controlled laboratory setting.
Importantly, in naturalistic observation, there is no attempt to manipulate variables.

It permits measuring what behaviour is really like in participant observation; the

researcher intervenes in the environment. Most commonly, this refers to inserting
himself/herself as a member of a group, aimed at observing behaviour that
otherwise would not be accessible. Also, behaviours remain relatively natural
thereby giving the measurements high external validity.

RANDOM SAMPLING

In random sampling each of population has an equal chance to be selected as

simple. Random sampling is the process of selecting a sample in such a way that all
individual in the define population have an equal and independent chance of being
selected of the sample.

Here, the selection of one unit in no way affects to the

selection of any other unit. This procedure is the best method of obtaining a
representation sample.

Random sampling is very much necessary for inferential

statistics because, in most of the inferential statistics the prime assumption is the
randomness of data. The inferential statistics permits the researcher to make
inferences about the population on the basis of obtained data from sample.

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 FINDINGS

Finding of my study:

Bajaj Finserv Lending is No.1 in country as consumer Durable financing.

Customers are unclear about the documentation requirements which
creates frustration among them leading to loss of sales.

Incentives to the sales force at CPR dist, for their Finance conversations is not
providing timely which is creating disinterest in the, for finance.
Repeat sale for existng customers is increasing day by day hence this holds a great
scope in future.

Customer Perceive the existing Bajaj Finserv Customer will get additional discount
on product from Bajaj.

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CHPTER 6

ANNEXURE

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QUESTIONNAIRES:

Dear Sir/Madam,
I am pleased to introduce myself as a MBA student as a part of my curriculum, I am
conducting a study on “Customer satisfaction level and services at Bajaj Finserv”. So,
I hereby request you kindly spare your valuable time to fill these questionnaires,
which will help me in my project work.

1.When you entered, what was the total time taken before someone from the staff
attended you?

a. Excellent<2 min
b. Good (2-5 min)
c. Fair (5-10 min)
d. Poor >10 min

2.What is your experience related to availability of loan schemes for consumable

durable offered by Bajaj Finserv?
a. Excellent
b. Satisfied
c. Average
d. Not Satisfied

3.from below mention institutions from which institution would you prefer to take
loan
for consumer durable products at Reliance Digital store?

a) Bajaj Finserv b) HDFC

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4. What is your experience related to availability of loan schemes for consumer
durable products offered by Bajaj Finserv?

a. Excellent
b. Satisfied

5.Based on your overall Experience, would you like to Visit Bajaj Finserv again?
And also would you recommend your friends and relatives?
a. yes
b. No

6.Do you feel service charges/processing charges reasonable?

a. excellent
b. good
c. Average
d. Poor

7. Do you feel service charges /processing charges reasonable?

a) Excellent b) Good c) Average d) Poor

8.Based on your overall Experience, would you like to Visit Bajaj Finserv again?
And also would you recommend your friends and relatives?

a. yes
b. No

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9. What are the reasons to take loan on consumer durable goods from Bajaj Finserv?

a) Instant approval
b) EMI card
c) Brand name
d) 0% finance on durable goods

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Discussion of Data Analysis and Interpretation

Analysis and interpretation of customer satisfaction by the services provided by Bajaj Finserv

through questionnaire:
1.when you entered, what was the total time taken before someone from the staff attended
you?
Table 1

Response No of customers
Excellent < 2 min 15
Good (2-5 min) 45
Fair (5-10) 20
Poor >10 20

Analysis:
According to the analysis 15% of the customer feels that the total time taken before someone
from the staff attended them are excellent, 45% says good, 20% says its fair and the rest 20%
says it’s poor

Graph

45
40
35
30
25
20
15
10
5
0
Excellence<2 Good (2-5%min) Fair(5-10) Poor>10 min

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Interpretation/Analysis:

Out of 100 respondents 15% of the people saying excellent time taken before
someone attending staff members and 45% of the people Good and 20% of the
people fair and 20% of the people says poor time taken before someone attending
you.

2. What is your experience related to availability of loan schemes for consumable durable
products offered by Bajaj Finserv?

Table 2.

No. of customers
Response

Excellent 25

Satisfied 13

Average 27

Not satisfied 35

Analysis:
According to the analysis 25% of the customers feels that availability of the loan schemes is
excellent, 13% says they are satisfied, 27% of the customers says it is average and the rest of
35% are not satisfied with the schemes.

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Graph 2.

35

30

25

20

15

10

0
Excellent-25 satisfied-13 Average-27 Not Satisfied

Interpretation:
Out of 100 respondents 25% of the people feel that loan scheme on consumable durable
goods is excellent and 13% of people are satisfied and 27% of the people average and 35% of
the people are not satisfied with the loan schemes on consumable durable goods.

3. Rank the services given below according to your satisfaction?

Table6.

Responses No of customers
Information in time 25
Quick issues of re-imbursement 13
Claim and settlement procedure 27
Good Relationship with customer 35
Analysis:
According to the analysis 25% of the customers says information provided to them
are in time 13% say they are satisfied with the quick issue of re-imbursement 27%

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says they are satisfied with the claim and settlement procedure and 35% of
consumers says relationship with them are really good.

Graph 3.
No of customers

Good Relationship with customer

Claim and settlement procedure

Information in time

Interpretation:
Based on my survey the customer satisfied with information in time at Bajaj Finserv
are 25% and Quick issues of re-imbursement are 13% and claim and settlements
procedure are 27% and good relationship with customers are 35% at service station.

4. Based on your overall experience, would you like to visit Bajaj Finserv again? And also
would you recommend your friends and relatives?
Table4:

Response No. of customers

Yes 75
No 25

Analysis:
According to the analysis 75% of the customers would like to visit Bajaj Finserv again while
remaining 25% says No.
Graph4:
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 80

70

60

50

40

30

20

10

0
Yes No

Interpretation:
According to my survey 75% of the people like to say that they are interested and
recommended to visit Bajaj Finserv again Because they are happy with our service
and other rest 25% says they are not recommended to visit this center again in Bajaj
Finserv.

5. Do you feel service charges/processing charges reasonable?

Table8:

Response No of customers
Excellent 24
Good 28
Average 38
Poor 10

Analysis:
Out of 100 respondents 24% of the customers feel that processing fee at Bajaj Finserv is
Excellent and 28% feels it is good and 38% says it is average and 10% of the customers say it
is poor.

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Graph 5:
No of customers

40

35

30

25

20

15

10

0
Instant approval EMI card Brand name o% finance

Interpretation:
Out of 100 respondents 24% of the people feel that processing fee at Bajaj Finserv is
Excellent and 28% feels it is good and 38% says it is average and 10% of the people say it is
poor they feel service charge/ Processing fee is not reasonable compared to competitor.

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CHAPTER 9
CONCLUSION

[49]
Conclusion:

From the survey it is formed that major portion of customers is satisfied with
the services provided by Bajaj Finserv on CD & CDD goods, I have come to
conclusion durable goods at better schemes compared to other financial companies
thereby providing satisfaction to the customers.

BFL provider’s loan on customer durable products at 0% only a nominal amount of

file charge is taken from the customers. So any customers can take this scheme,
therefore they don’t have to pay the complete amount and also they can enjoy
interest on that amount.

BFL regularly provides offers to its customers in festive season. Some offer even
consist schemes such as 10/0. In which customer doesn’t have to pay anything as
the down payment, building goodwill and providing better customer satisfaction.
Over the years Bajaj Finance Ltd has built up a strong market presence through its
core competencies, understanding to the business, its nationwide network of
branches and offering competitive, flexible and speedy lending services.

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 CHAPTER 10

RECOMMENDATIONS

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Recommendations

Management must encourage executive to concentrate on cross selling.

Finance scheme for strong seasonal sale product should be introduced.

A single agency must be hired for the verification purpose for the entire
to improve the uniformity of the process. Also there is a great need of proper control
over the verification.

A promotion campaign must be run clarifying the benefits and financing 0%

processing fee.

Bajaj Finserv will give some more emphasis on advertising so that more number of
peoples will attract.

As many of them don’t know about it so they are a bit conscious when our
executives told them about the plan. If they know well in advance, then obviously
they will come prepared to take the financial help from Bajaj Finserv.

Every mega store required minimum of 3 executives with 3 separate systems so that
customers don’t have to wait for some other customer to finish their procedure.
Some customers were facing problem that they are not getting EMI card even after
instalments and also after making paying the card charges. I think that should be
checked because it will tamper the good will and reputation of the company.
Also one more thing can be changed is that women can be given some more
emphasis as an executive as customers will have more belief on them.

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 CHAPTER 11

BIBLIOGRAPHY

[53]
Reference

Bajaj Finserv Ltd (2012). Retrieved june 14, 2013 from the economic
times
http://economictimes.indiatimes.com/bajaj-finserv -
ltd/stocks/companyid-
21426.cms

Company facts Bajaj finserv (2015). Retrieved from money control

http://www.moneycontrol.com/companyfacts/bajajfinaserv/ma
nagment/BF04#BF04
company history 2015 retrieved form Bajaj Finserv:

http://www.bajajfinserv.in/au-comoany-history.asp
Bajaj Finserv Limited. (2014-15). 2014-15 annual report.
Bajaj Finserv Limited Online Database.

Links:
http://info.shine.com/industry-information/finance-and -
banking/117.aspx

http://www.ehow.com/facts-5697313-zero-percent-financing-really-
mean-html

http://www.thehindubusinessline.com/todays-
paper/tp-opinion/truth-
in=lending/article5177324.ece

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