Name:-

Deep Sanjana

Comparative Study of Electronic Dealer Financing

Scheme (e-DFS) of SBI and other particular focus
on takeover cases from SBI bank to other bank
Overview Of The Company

• SBI is the largest public sector bank in India. The bank

offers a wide range of services to individuals as well as
businessman.
• It has its headquarter in Mumbai, Maharashtra.
• After its merger with five of its associate banks it now
operates through a network of more than 24000
branches and 59000 ATM across the country and over
190 offices in other countries.
• SBI presents a wide range of products and services for
its customer. It include saving accounts, credit card, fixed
deposits, home loans, personal loan, loan against
property car loans, gold loan and many more.
 Brief of e-DFS

• PURPOSE OF SCHEME- To provide financial assistance

to dealers/distributors of a particular organisation (which
has done tie-up with the SBI) for the purchase of
consumer product, mobile phones other hardware products
• NATURE OF FACILITIES- Bank provide cash credit to
the dealer.
• ELIGIBLE AMOUNT OF FINANCE- Bank provide the
cash to the dealer based on the average monthly sales or
the limit recommended by the respective company.
• ELIGIBILITY- Any authorized dealers/distributors of the
company are eligible of using this scheme.
• MARGIN- nil. 100% financing of the invoice.
• CREDIT PERIOD- Up to 60days.
Contd…

• GRACE PERIOD- Extra 15 days are provided to the

distributors for the payment of credit.(Extra 2% of interest
is charged during the grace period).
• SECURITY- As a security certain % of assests are taken as
a collateral security.
• REPAYMENT- All invoices debited in the account are
traced for the repayment period. In case of non-repayment
of any invoice within a credit period+grace period, the
account will be frozen and no further debit would be
allotted.
• EDFS is a web platform which provide convenient
paperless banking. It ensure realtime online transfer of fund,
and, is fully customizable as per business requirement. e-
DFS is convenient for both bank staffs as well as dealers.
It is less risky for the bank staff.
SBI journey
 Job Description

 Designation:- Research Intern

 Timing:- 10 A.M to 5 P.M
• Key Responsibility:- To have a conversation with the
authorized dealers, and understand their perception
toward electronic dealer financial scheme.
• Through this project I need to understand the factor
that attracts them towards e-DFS or other alternatives.
• As well as I was assigned to meet the dealer, who have
shifted from using e-DFS of SBI to other banks. Through
the meeting, I have to understand the reason for their
shift towards other bank.
 ,.
OBJECTIVES
To check that wheather the dealers are
aware of the electronic dealer financial
1 scheme.
To understand the perception of the
dealer regarding this scheme.
2 To check the satisfaction level of
dealers who are using this scheme.
To make a comparison between e-
DFS and other alternatives of this
3 scheme and to check the effectiveness
of this scheme
4 To understand the reason behind
the takeover cases from SBI
bank to other banks.
 Methodology
• A research was performed in order to find out the perception of the
dealer regarding electronic dealer financial scheme.
• Moreover satisfaction level of the dealer were measured using this
scheme.
• A questionnaire was prepared which consist various parameter, and the
opinion of the dealer were consider for the analysis and conclusion part.
• Various information were gathered like what are the most important
think they considered during taking loan.
• Secondly, I have conducted a small survey of 32 respondents to assess and
analyze dealer behavior toward e-DFS scheme
• Type of data used: Quantitative data has been used to carry out my study
• Sources of data: Primary Data are used. I have prepared the questionnaire to
check the feedback about e-DFS scheme..
• Analysis tools used: Descriptive analysis has been used to represent results
and findings of the primary survey.
Sampling Plan
POPULATION PATNA

SAMPLE SIZE 32

AUTHORIZED DEALER (whose company has

SAMPLE UNIT
a tie-up with SBI)

SAMPLING TECHNIQUE CONVENIENT SAMPLING

COLLECTION OF DATA PRIMARY DATA

RESEARCH DESIGN DESCRIPTIVE ANALYSIS

DURATION 60DAYS
 Submit collateral securities
9%

yes
91% no

Inferences- In terms of submitting collateral securities, 91% of the dealers said

that they have to submit the collateral securities in order to receive the loan.
Collateral securities are the assets which the dealers has to submit. The amount
of the asset that the dealer has to submit varies from dealer to dealer
depending upon the companies contract with the bank.
 e-df simpler than cash credit

31% yes
no
69%

Inferences-Among 32 dealers 87% thinks that using e dfs is

simpler than using cash credit, they said that while using this
they need not to do lots of paper work or legal work and it
is more convenient for them while 13% of dealer thinks that
using cash credit is simpler than using e-DFS.
 Current rate of interest
10%

6% strongly dissatisfied

31% 47%
dissatisfied
neutral
6% satisfied
strongly satisfied

Inferences-Current rate of interest dissatisfied many dealers . Only 26% of the

dealers were satisfied with the current rate of interest and 8% were strongly
satisfied with this. 5% were neutral about the rate of interest, 39% were
dissatisfied with this and 22% were strongly dissatisfied with the rate of
interest. We need to look upon the rate of interest
 Current period of repayment
9% 3%
10%
strongly dissatisfied
dissatisfied
25% neutral
satisfied
53%
strongly satisfied

Inferences-
59% were neutral for the current period of repayment. According to
data collected, most of the dealers were neutral. 28% were satisfied
with the current period of repayment. Others were either dissatisfied
or strongly dissatisfied. 3% were strongly dissatisfied and 10% were
strongly satisfied with the current rate of repayment.
 Services provided by the empolyees
6% 3%
strongly dissatisfied
dissatisfied
31% 35% neutral
satisfied
25% strongly satisfied

Inferences-
Many dealers were dissatisfied with the services provided by the bank
employee.
38% dealers were dissatisfied with the services provided by the bank
employee , 29% were satisfied with it. 24% were neutral about it they
were neither satisfied nor dissatisfied. 3% were strongly dissatisfied with
the services provided by the bank employee and 6% were srtongly
satisfied by them.
 Cash sanction on time

44% yes
56% no

Inferences-
56% of the dealers said that they get the cash credit on time. While
the other 44% of the dealers said that they do not get the cash credit
on time. They said that the cash credit are deled by the bank. The
reason for the delayed are because of legal work.
 COLLATERAL SHOULD BE TAKEN OR NOT
yes
19%
no
81%
Inferences-
In regard of depositing collateral, 81% of the dealer said that collateral
securities should not be taken. According to them, it is difficult for the
dealer who are starting new showrooms, as they do not have assets to
deposit. Also, the profit in the initial years are low. Others 19% said that
the collateral securities should be taken out by the bank. They said that
it is easier for the bank to provide the loan. By depositing the assets,
risk upon the bank decreases, and the dealer could get the cash on
credit easily.
 e-DFS rating
e-DFS rating

Poor 3
Neutral 8
Good 16
Excellent 5

0 5 10 15 20

Inferences- Out of 32 respondents, 16 dealers have rated e-DFS as

good, while the other 8 dealers have rated it as neutral. Moreover,
5 dealers find it excellent and other 3 dealers rated it as poor.
 better one
better one

CC 14

e-DFS 18

0 5 10 15 20

Inferences-
Among 32 dealers, 18 dealers find e-DFS better, While the other 14 dealers
find that cash credit is better than e-DFS.
Analysis for takeover cases from SBI bank to other bank
After analysing the behaviour of the dealers using e-DFS,
now, I have shifted to examine the reason behind the
takeover cases. Another set of questionnaire has been
prepared for analysing the reason behind the takeover case.
 8% Satisfaction Level
8% strongly satisfied
17% 17% satisfied
neutral
50% dissatisfied
strongly dissatisfied

Inferences- Out of the 11 dealers, 50% of them are neutral

using current banking arrangement, 17% are satisfied, other
17% are dissatisfied. While 8% are strongly dissatisfied and
other 8% are strongly satisfied.
 Take over cases

36%
yes
64%
no

Inferences-
Among 11 respondent, 64% dealers have shifted from using
e-DFS of SBI to other alternatives of other bank and 36%
retained using our scheme.
 Takeover reason
4%
14%
9%
55%
18%

higher rate of interest sanction not given on time

Enhancement not given on time Additional cash security required by bank
conduct and behaviour of staff

Inferences- 55% of dealers takeover reason is higher rate of interest according to

them the rate of interest should be low. 18% takeover reason was sanction not
given on time. 14% takeover because of the additional cash security required by
the bank and they were not interested in giving additional cash security to the
bank. 9% takeover because the enhancement was not given on time.
Given below is the analysis of the dealer who are using
other alternatives like cc (cash credit), term loan, non-
fund based limit-
Through this analysis. I want to examine that
➢ Whether the dealers using other methods are satisfied or not;

➢ Do they want to switch to other alternatives like cc or term loan;

➢ Do they are willing to shift to use other bank schemes;

➢ Do they know about e-DFS scheme: and many more other

questions
 Sample size is 34
 Important Factor

rate of interest
14% 19%
repayment period

24% 14% behaviour of staff

sanction given on time
29% other factor

Inferences- In regard to their retainment towards current method, 30% of the dealers
said that they are happy with the behaviour of employee, 20% of the dealers says
that they are using current method because they get money on time. 20% of the
dealer said that they are satisfied with the current rate of interest. 15% of the dealer
said that are satisfied with the period given to them for repayment, they find the
period enough to pay the money to bank. Other 15% of the dealer said that they are
using the current method because of some other factors. Other factors include grace
period, % of assets taken as collateral securities.
 Know about e-DFS

38%
YES
62%
NO

Inferences- Out of 34 dealers, 62% of the dealers were unaware

of the e-DFS scheme. They said that they have never heard
about this scheme. While, only 38% of the dealer were aware
about e-DFS. They have little knowledge about this scheme.
 ATTRACTIVE FACTOR IN E-DFS
other factor
sanction 8% rate of interest
provided on time 23%
15%

repayment
less paper work period
required 23%
31%

Inferences-31% of the dealer said that they find less paper work
attractive in e-dfs scheme. 23% finds repayment period attractive
and same number of dealers i.e. 23% finds rate of interest attractive
in e-dfs scheme. 15% likes e-dfs because sanction was given on
time. 8% finds other factor attractive in e-dfs scheme.
 Resist using e-DFS

26% 22% Interest rate

Repayment period
21% 31% Validity period
Others

Repayment method resist lots of dealers from using e-dfs. Due to

repayment method 31% of the total dealers were not using e-dfs. 26%
finds others factor for not using e-dfs scheme. Other factors include
sanction not given on time, grace period, conduct and behaviour of the
staff etc. According to the data collected 21% were disappointed from
the validity period given by the bank and that restricted them from
using e-dfs scheme.
 SUMMARY AND FINDINGS
5.1 Dealers using e-DFS-
 In order to get loan from the bank, 91% of the dealers
need to submit collateral securities. The portion of assets
that the dealer have to submit vary from dealer to dealer.
The dealers find it inconvenient.

 69% of the dealer find that using e-DFS is simpler. They

find it easier because there are less paper work required,
as well as the process is less time consuming.

 47% of the dealers are dissatisfied while 31% are

satisfied with the current rate of interest.

 Majority of the dealer are neutral with the repayment

period.
 Most of the dealer are satisfied and neutral with the services
provided by the dealer.
 Moreover. 56% of the dealers said they get the cash credit
on time, while the other 44% of the dealer said they do not
get cash credit on time.
 81% of the dealer said the collateral security should not be
taken by the bank. Dealers said that it is difficult for the
dealer who are starting new showroom, as the profit are low
in the initial years.
 50% of the dealers rated e-DFS as good and 25% of the
dealers rated it as neutral, while the other 9% of the dealers
rated it as poor.
 Among 32 respondents who are using, 56% find e-DFS better
than the other alternative. Moreover 44% of the dealers said
that other alternatives is better than e-DFS.
5.2 Takeover cases-
Dealers who shifted from using e-DFS to other alternatives of other
bank-
 Among 11 dealers, 17% are satisfied using current banking arrangement
while the other 17% of the dealers are dissatisfied using current
banking arrangement, moreover 50% of the dealer said that they are
neutral with the current banking arrangement.
 Out of 11 respondent 64% said that they have shifted from using e-
DFS to other alternatives of other bank while the other 36% of the
dealers retained using their current banking arrangement.
 55% of dealers takeover reason is higher rate of interest. According to
them the rate of interest should be low. 18% said that they do not get
cash on time. 14% of the dealers said that the reason for their shift is
because of the additional cash security required by the bank and they
were not interested in giving additional cash security to the bank
5.3 Dealers who are using other alternatives-

 Out of 34 respondents, 62% of the dealers are accessing

loan source for their working capitals.
 Among the dealers who are using loan source, 52% of
them are using cc (cash credit), 24% are using term
loans, 19% are using non fund based limit and 5% are
using e-DFS. Majority of the dealers are using cash
credit because they are familiar about that scheme. The
reason for their retainment toward their current banking
arrangement are- conduct and behaviour of staff,
repayment period, rate of interest, sanction given on time
and many other factors.
 Out of 34 respondents, 58% are willing to change the
method for accessing loan, will 42% are reluctant toward
any change.
 Moreover 62% of the dealers are unaware of the e-DFS
scheme, only 38% of the dealers have little knowledge
about e-DFS scheme.

 31% of the dealers said that they find e-DFS attractive

because there are less paper work required. 23% finds
repayment period attractive and other 23% of dealers said
that the rate of is low in e-DFS scheme.
Recommendations-
 Awareness about e-DFS should be spread among the
dealers.

 Rate of interest should be enhanced- In order to attract

more no. of dealers, the strategic level managers should
decrease the rate of interest.

 Sanction should be given on time.

 Collateral securities should be taken in minimal

percentage.

 Validity period should be extended.

 Dealers should be motivated to learn e-banking.
REFERENCES

https://en.wikipedia.org/wiki/State_Bank_of_India

https://www.sbi.co.in/portal/web/sme

https://www.slideshare.net/SanthoshS7/sbi-internship-on-electronic-dealer-

financing-scheme

https://www.sbi.co.in/portal/web/sme/e-dealer-finance-

schemehttps://www.google.com/search?q=image+of+process+on+electronic+deal

er+financial+scheme&tbm=isch&source=univ&sa=X&ved=2ahUKEwj_-

4bBw6zjAhXLrI8KHeqCBIQQsAR6BAgFEAE&biw=1093&bih=526#imgrc=8nHtkAfzFl

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