A PROJECT REPORT ON

TO STUDY THE RURAL PERSONAL LOAN

BACHELOR OF MANAGEMENT STUDIES

A PROJECT SUBMITTEDTO:

UNIVERSITY OF MUMBAI FOR PARTIAL COMPLETION OF THE

DEGREE OF BACHELORS IN MANAGEMENT STUDIES

UNDER THE FACULTY OF COMMERCE

BY

Ms. JIGNESHA DUBLA

UNDER THE GUIDANCE OF

Ms. SHAHIN DOODHWALA

DNYAN BHARTI SOCIETY COLLEGE OF MANAGEMENT (B.M.S)

VADKUN, DAHANU (W), MAHARASHTRA

2018 – 19

1
 CERTIFICATE

This is to certify that Ms.Jignesha R. Dubla has worked and duly completed her/his Project
Work for the degree of Bachelor of Management Studies under the Faculty of Commerce
inthe subject ofAnd her/his project is entitled, `` TO STUDY THE RURAL
PERSONAL LOAN ``Under my supervision.
I further certify that the entire work has been done by the learner under my guidance and that
no part of it has been submitted previously for any Degree or Diploma of any University.
It is her/ his own work and facts reported by her/his personal findings and investigations.

Ms. SHAHIN DOODHWALA

Seal of the College (Name and sign of Guiding teacher)

Date of Submission:

2
 DECLARATION BY LEARNER

I the undersigned Ms.JIGNESHA R. DUBLA Hereby declare that the work embodied in
this project work`` TO STUDY THE RURAL PERSONAL LOAN `` .
forms my own contribution to the research work carried out under the guidance of Ms.
SHAHIN DOODHWALA is a result of my own research work and has not been previously
submitted to any other University for any other Degree / Diploma to this or any other
University.
Wherever reference has been made to previous works of others, it has been clearly indicated
as such and included in the bibliography.
I, here by further declare that all information of this document has been obtained and
presented in accordance with academic rules and ethical conduct.

Name and Signature of the learner

Certified by

Ms. SHAHIN DOODHWALA

3
 ACKNOWLEDGMENT

To list who all have helped me is difficult because they are so numerous and the depth is so
enormous.

I would like to acknowledge the following as being idealistic channels and fresh dimensions
in the completion of this project.

I take this opportunity to thank the University Mumbai for giving me chance to do this
project .

I would like to thank my Principal , Mr. RAVINDRA GHAGAS for providing the
necessary facilities required for completion of this project.

I take this opportunity to thank our coordinator Ms. DEEPA TANNA for her moral support
and guidance.

I would also like to express my sincere my since gratitude towards my project my

project guide “ Ms. SHAHIN DOODHWALA “ whose guidance and care made the
project successful.

I would like to thank my College Library , for having provided various reference books
and magazines related to myproject.

Lastly, I would like to thank each and every person who directly or indirectly helped
me in the completion of the project especially my Parents and Peers who supported me
throughout my project.

4
 INDEX

CHAPTER NO. TITLE PAGE NO.

1 INTRODUCTION 6

1.1 Company Profile 8

1.2 Objective Of The Organization 10

1.3 Industry Profile 14

1.4 Customer Profile 19

2 RESEARCH METHODOLOGY 23

2.1 Objective Of Rural Personal Loan 23

2.2 Vision And Mission Of The Organization 24

3 LITERATURE REVIEW 28

3.1 Profile Parameters 32

3.2 Role Of Different Teams 39

4 DATA ANALYSIS, INTERPRETATION 43

AND PRESENTATION

4.1 DATA COLLECTION TOOLS 45

5 CONCLUSION 54

SUGGESTIONS 55

BIBLIOGRAPHY 56

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 Chapter No.1

INTRODUCTION

A Rural personal loan is a sum of money that an about personal borrows to meet his
financial needs and requirements . An individual can take an easy personal loan or a
guaranteed rural personal loan for a variety of reasons.Loans for mortgage arrears or
home improvement requirements. In Fact rural personal loans help meet most of the
Financial emergencies that an individual can think of .

Rural Personal loans are often the most preferred type of loan on account of their
Flexibility.

Definition and purpose of the project

T2C is the complete process of a loanapplication starting from the login by the FOS till
the QDP happens to the dealer and the LAN is generated to the customer.

“ T2C is the process of liquidation of cash time taken by the Dealers to improve
working process faster through cash within the time . “

T2C refers to that process which convert customer needs into cash within less time to
make payment to dealer is known as Time to cash

Scope of the project :

 To reduce the process of time to cash at different counters of bajajfinserv

during a food period of time.

Salient Contribution of the project :

 Provided service as an intern for 60 days

 Helped in reducing many counters by working with them .Helped sales
executive to understand the importance of time to cash.

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Outline of the project :

 The project was to reduce the time to cash at different counters of Bajaj
Finserv.
 The main work was to reduce the process to time to cash within 5 days.
 There were different problems due to which the time to cash increased in
different Counters.
 Visiting the stores and observing and finding the stores and finding out the
reason for increase in T2C.

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1.1 COMPANY PROFILE :-

Do whatever you think best , but be best at wherever you do

Rahul Bajaj , Chairman – Bajaj Group
What started off as a sugar manufacturing factory in 1931 has grown to become on of
the country`s largest business houses . which activities that encompass a whole range
of industries , spanning automobiles ( two wheeler and three – wheelers ) , home
appliances , lighting , Iron and steel , Insurance , travel and finance.
At the turn of the new millennium , this business conglomerate is ranked amongst
one of the largest business family in India by the centre for monitoring Indian
economy
It has under its umbrella over 25 companies and strength of over 25000 employees .
It`s core strength , however , is the unshakeable foundation based on its tradition of
trust Bajaj finserv was formed in April 2007 As a result of its demerger from Bajaj
auto limited to further the Group`s interests in Financial services . This demerger
enabled Bajaj Finserv to independently run the core businesses of lending , insurance
and wealth advisory .
Bajaj Finserv limited is the holding company for the financial services business of the
Bajaj group . Its insurance joint ventures with Allianz se , Germany namely Bajaj
Allianz life insurance company limited and Bajaj Allianz general insurance company
limited are engaged in life and general insurance business respectively . Its subsidiary
Bajaj Finance limited is a Non- banking Finance company engaged in consumer
finance,same finance and commercial lending and wealth management.

FINANCE

Bajaj Finance Limited is the consumer finance lending arm of Bajaj Finserv Limited
It is the most diversified non-bank in the country , the largest financier of consumer
durables in India and one of the most profitable firms in the category

8
INSURANCE

Bajaj Finserv Limited forayed into insurance through a joint venture with Allianz SE ,
Germany , and formed Bajaj Allianz Life Insurance and Bajaj Allianz General
Insurance company Limited . Allianz SE has over 119 years of financial experience
and is present in over 70 countries around the world.

WEALTH

Bajaj Finserv Wealth Management provides simple and effective long term financial
planning concepts and tools for assisting our customers in making informed
decisions for their saving and investment needs .

9
1.2 OBJECTIVE OF THE ORGANIZATION :

Our mainobjectives as contained in our Memorandum of Association include :

1. To Finance industrial by way advance , deposit or lend money , securities and

propertied or with any company , Body corporate , trust , firm , person or
association whether falling under the same management or otherwise , with or
without security and on such terms as may be determined from time to time
, and to carry on and undertake the business of finance and investment and to
provide venture capital , seed capital , loan capital , loan and to participate in
equity preference share capital or to give guarantees on behalf of the
company in the matter and to promote companies engaged in industrial and
trading business and to act as Financial Consultants Management consultants
,Brokers , Dealers , Agents and to carry on the business of share broking ,
money broking , exchange broking , bill broking and general brokers for shares
, debentures , debenture - stock units , obligations , securities commodities , bullion
currencies and to manage the funds of any person , firm , body corporate or
trust by investment in various avenues like Growth Fund , income fund , risk
fund , tax exempt fund , tax exempt funds , pension / superannuation funds and
to pass on the benefits of portfolio investments to the investor as dividends ,
bonus , interest , etc.
2. To carry on the business as an investment company and to underwrite , to
investigating , and acquire by gift or otherwise and hold , sell , buy or
otherwise deal in shares debentures , debentures - stocks , bond , units ,
obligations and securities issued or guaranteed by Indian or Foreign
Governments , States , Dominions, Sovereign

10
 ORGANIZATION CHART OF BAJAJ FINSERV : -

NAME DESIGNATION

RAHUL BAJAJ CHAIRMAN

NANOO PAMNANI VICE – CHAIRMAN

MADHUR BAJAJ MAJOR DIRECTOR

RAJIV BAJAJ DIRECTOR

SANJIV BAJAJ NON – EXECUTIVE DIRECTOR

D.S.MEHTA MAJOR DIRECTOR

D.J.BALAJIRAO DIRECTOR

DIPAK PODDAR DIRECTOR

RANJAN SANGHI DIRECTOR

RAJENDRA LAKHOTIA DIRECTOR

OMKAR GOSWAMI DIRECTOR

PRODUCT PROFILE OF THE ORGANIZATION: -

Bajaj Finserv Lending offers loans for various needs. We offers loans for Bajaj Auto
two wheelers under the name of Bajaj Auto Finance Ltd. We offer Consumer
Durable Loans , Loan against Property , Small Business Loans , Construction
Equipment Loans , Loan against Securities and Insurance Services under the name
of Bajaj Finserv lending . Bajaj Finserv Lending is one of the most diversified
NBFC s in the market catering to more than 5 Million customers 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 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 Service .

11
 HOME
LOAN

CONSTRUCTION CONSUMER
EQUIPMENTS DURABLE
LOAN LOAN

PRODUCT PORTFOLIO

THREE / TWO
MORTGAGE
WHEELER
LOAN
LOAN
PERSONAL AND
SMALL BUSINESS

PRODUCT COVERD : -

0% interest Consumer Durables Finance is available on a wide range of

products and in over 101 cities across India. Hereunder is an indicate list of
products covered ?

 LED / LCD / CTV

 Washing Machines
 Microwave Ovens
 Refrigerators
 Cameras / Camcorders
 Dishwashers
 Generators

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 Cooking Range products
 Dryers
 Laptops / Desktops ( Select )
 Smart phones ( Select )
 Air purifiers / Water Purifiers / R.O
 Music Systems
 Inverters
 Air Conditioners

13
1.3 INDUSTRY PROFILE :

India is undergoing rapid development. This means that there are millions of people
who dream of better home , better infrastructure and a better life. This opens
several avenues of potentially Limitless growth in the banking and finance sector
. Bajaj Finserv Lending will help grab this opportunity to grow your business ,
through lending loans , Financing , Etc.
An innovative , competitive and thriving financial services industry in any
country plays a vital role in its smooth functioning and development . India’s
financial services sector has posited a stable growth curve over the years driven
by sound fundamentals , Rising personal incomes corporate restructuring , Financial
sector liberalization and the growth of a consumer - oriented , credit - oriented
culture. This has led to the increasing demand for financial products , including
consumer loans ( especially for cars and homes ) , as well as for insurance and
pension products .

STRUCTURE OF BAJAJ FINSERV : -

S.NO SECTORS PRODUCTS

1 FINANCE SERVICES CONSUMER DURABLE

2 INSURANCE ALLIANZ SE , GERMANY

3 LIFE INSURANCE BAJAJ ALLIANZ LIFE INSURANCE

4 WEALTH MANAGEMENT FINANCIAL PLANING CONCEPT

AND TOOLS FOR ASSISTING OUR
CUSTOMERS FOR THEIR SAVING
AND INVESTMENT NEEDS

5 ASSET MANAGEMENT FIXED ASSET AND CURRENT

ASSET

6 LIFESTYLE LOANS ON APPARELS

14
WHY BAJAJ FINSERV :-

Bajaj Finserv is the Non - Banking institution providing loans to customer it is the
top Financing company amongst other.
The Rural Economy in India is mostly agriculture based and is supply and demand
links with the other Indian industries.
This is the only Finance which have reach to the rural areas.
ONLINE RURAL PERSONAL LOANS : -
Loans are offered by not only lenders in the locality but also by internet
lenders. They could either be directly deposited in the bank account or mailed by way
of cheque Repayments could be automatically debited from the account to suit
convenience. Be sure to make payments on time , or else one my incur additional
penalties . Guaranteed online( Rural Personal Loans come with lower rates of interest
than credit cards ) The first guaranteed personal loans could be a small sum ; but once it
is proved that payments can be assured a larger sum the next time one opt for a
guaranteed online Rural Personal Loan.

PRESENTATIONOF FINANCIAL AND OTHER INFORMATION :-

In this Preliminary Placement Document, unless otherwise specified or the context otherwise
indicates or implies, references to ‘you’, ‘your’, ‘offered’, ‘purchaser’, ‘subscriber’,
‘recipient’, ‘investors’, ‘prospective investors’ and ‘potential investor’ are to the prospective
investors in the Issue, references to the ‘Company’, ‘Bajaj Finance Limited, ‘Issuer’, ‘we’,
‘us’ or ‘our’ are to Bajaj Finance Limited.

In this Preliminary Placement Document, references to ‘US$’, ‘USD’ and ‘U .S. dollars’ are
to the legal currency of the United States of America, and references to ‘`’, ‘INR’, ‘Rs.’,
‘Indian Rupees’ and ‘Rupees’ are to the legal currency of India. All references herein to the
‘US’ o r ‘U.S.’ or the ‘United States’ are to the United States of America and its territories
and possessions. All references herein to “India” are to the Republic of India and its
territories and possessions and all references herein to the ‘Government’ or ‘GOI’ or the
‘Central Government’ or the ‘State Government’ are to the Government of India, central or
state, as applicable.

15
The financial year of the Company commences on April 1 of each calendar year and ends on
March 31 of the following calendar year, and, unless otherwise specified or if the context
requires otherwise, all references to a particular ‘Fiscal Year’ or ‘fiscal’ or “financial year” or
‘FY’ are to the 12 month period ended on March 31 of that year. The audited standalone
financial statements of the Company as at and for the years ended March 31, 2015, 2014,
2013, 2012 and 2011, and the audited consolidated financial statements of the Company as at
and for the year ended March 31, 2015, each prepared in accordance with Indian GAAP, are
included in this Preliminary Placement Document in the section “Financial Statements ” on
page 211.

The Company publishes its financial statements in Indian Rupees. The financial statements of
the Company included herein have been prepared in accordance with Indian GAAP as
applicable to companies in India. Unless the context otherwise requires , all financial data in
this Preliminary Placement Document are derived from the audited standalone financial
statements of the Company as of and for the years ended March 31, 2014, 2013, 2012 and
2011, and the audited consolidated financial statements of the Company as of and for the year
ended March 31, 2015. Indian GAAP differs in certain significant respects from International
Financial Reporting Standards (the “ IFRS”) and U.S. GAAP. We have not attempted to
quantify the impact of U.S. GAAP or IFRS on the financial data included in this Preliminary
Placement Document, nor do we provide a reconciliation of our financial statements , to those
of U.S. GAAP or IFRS. See the section “Risk Factors – Significant differences exist between
Indian GAAP and other accounting principles, such as U.S. GAAP and IFRS, which
investors may be more familiar with and may consider material to their assessment of our
financial condition “on page 59. Accordingly, the degree to which the financial statements
prepared in accordance withIndian GAAP, included in this Preliminary Placement Document
will provide meaningful information is entirely dependent on the reader’s level of familiarity
with the respective accounting practices. Any reliance by persons not familiar with Indian
accounting practices on the financial disclosures presented in t his Preliminary Placement
Document should accordingly be limited.

16
17
Competitive Scenario :-

With a share of 40-45%, NBFCs/housing finance companies ("HFCs") still account for a
significant share in the LAP market. Given their higher cost of funds vis-à-vis banks, NBFCs
have to venture into high -yield and riskier asset classes such as LAP to maintain
profitability. Given the higher share of LAP in the total portfolio, the stronger focus on the
product has helped NBFCs build systems and processes focused on acquiring the right
customers.NBFCs continue to hold a significant share in the LAP market, led by several
operational advantages, even as banks have made inroads in the retail loan market, compelled
by a slowdown in corporate loan offtake.

Although banks leverage their existing branch network, direct sales agents ("DSAs") play a
key role in fetching customers for LAPs. DSAs’ local knowledge and their ability to offer
diverse product s from different lendersunder one roof makes them critical in the LAP
market. NBFCs/HFCs gain an upper hand as they derive 65 -70% of their business through
DSAs, while banks garner only 40-45% through DSAs. Public-sector banks have a lower
market share, despite offering cheaper interest rates, as they do not utilise DSAs.Strong
origination skills, better collection mechanisms and faster loan processing also aid NBFCs.
NBFCs have a greater focus on the product, given that LAP forms a sizeable portion of t heir
overall portfolios.Financers typically utilise the instalment income ratio ("IIR") or the fixed
ob ligation to income ratio to appraise borrowers. The industry average for the IIR hovers at
65 -70% . NBFCs/HFCs are m re flexible than banks, considering other sources of income as
well for self -employed borrowers during appraisal. Consequently, the conversion ratio (ratio
of number of loans sanctioned to the number of applications) is also higher for NBFCs/HFCs.

18
1.4 Customer Profile : -

Self-employed customers account for almost 85% of LAP disbursements, of which 75% are
self employed non - professionals, while the rest are self employed professionals. The
salaried class accounts for the remaining 15%, primarily availing LAP to meet personal
expenses related to marriage, healthcare and repayment of previous loans

Self employed professionals comprise of doctors, chartered accountants and architects, and
similar professions, who mainly need funds for expansion of clinics and offices. Self
employed non -professionals on the other hand, comprise small manufacturers and traders
who take LAPs as a term loan to fund capacity expansions, debt repayments, business
diversification or working capital requirements.

While NBFC/ HFCs target self-employed customers which may consequently have a
relatively higher degree of risk co pared to salaried individuals, banks focus more on those
salaried individuals and self -employed individuals with a better credit profile. For borrowers
who have taken several personal and business loans earlier at higher interest rates, it is an
attractive option to foreclose these loans and take a single LAP at co imperatively lower
interest rates.

Residential properties account for the largest share of collateralized properties

The proportion of residential properties mortgaged under a LAP is higher at around 75%.
within residential properties, self-occupied ones have an almost 80% share, while vacant
residences and plots comprise the remainder. Co memorial properties which make up the
remaining 25% include industrial plots, offices and other commercial establishments.

Lower interest rates, but the collateral matters

Though LAPs comes in at a lower interest rate than a personal loan, such rate depends on the
collateral (property) offered, and hovers between 11.5% and 14% . The interest rates are
directly proportional to the risk faced by the financers.

19
Loan amount depends on the risk associated with collateral

The disbursement size for a LAP is linked to the current market value of the property
pledged, whereas a ho me loan considers the agreement value of the property. Being one of
the important credit parameters, the LTV ratio varies according to the risk of the collateral.
Similar to yield pattern, a self-occupied residential property typically fetches a higher LTV
ratio of 65%, followed by a vacant or rented property (about 60%) and then commercial
property (55%). Aggressive NBFCs may even offer LTVs of as high as 70%.

Average ticket size higher than that of home loans

The average ticket size of a LAP, estimated at ₹ 4.5-5 million, is higher than that of home
loans (for urban new houses). A higher amount is justified given the elevated property prices
in the major cities and end use of funds for business requirements. Among customers, self-
employed borrowers (which mostly comprise of businessmen) avail larger loans as compared
to salaried borrowers.

Actual tenure of LAP about half of the contractual tenure

The contractual tenure for a LAP is typically 10 years, allowing borrowers to spread their
payouts over a longer term. However, the average actual tenure is between five to six years,
considering the higher prepayments and frequent balance transfers (which occur when a
competing lender offers a higher LTV or lower interest rates). In 2014, RBI restricted lenders
from charging penalties on prepayment of floating rate loans extended to individuals.
Comparison of LAP and Home Loan Parameters

20
Asset Quality Remains Comfortable

Non-performing assets in the LAP market are low, at 1-1.5%, though the figure is higher than
that of housing loans. This is because LAP attracts more self-employed individuals. Overall,
strong origination, valuation and collection mechanism ms help lenders minimize
delinquencies. Financers also utilise informant ion fro m credit bureaus while appraising
borrowers. The possibility of hurting their credit ratings in the event of a default is an
additional prompt for borrowers to make timely payments.

Finance Penetration in Rural and Urban Areas

Rural areas are un likely to witness major improvement in finance penetration unless private
financers shift focus to these markets and establish a good branch network. Moreover,
profitability is lower in rural areas as compared with urban areas. Further, rural areas pose
more operational challenges, such as the timely collect ion of payments from customers."

21
Large number of first-time borrowers keep asset quality in check

"As demand for ho me loans largely comes fro m first -time buyers, asset quality in this
segment has remained low historically. Non-performing assets (NPAs) of financiers
improved in 2014 -15 because of adequate appraisal systems and effective recovery
mechanisms, as well as better availability of information (CIBIL data). NPAs are likely to
decline marginally in 2015 -16 and 2016-17 owing to economic recovery, lower interest
rates, better control, system checks, follow-ups and the expected improvement in job security.

ASSET QUALITY BY TYPE OF LENDER : -

Industry sources reveal, despite the seasoning of the teaser loan portfolio, i.e. loans that were
given at a lower rate is-a-visit he prevailing market rate for the initial years being recalibrate
to the prevailing interest rate, there are minimal delinquencies from these accounts, which
have contributed to stability in asset quality in 2013 -14. We do not expect a significant rise
in delinquencies from this portfolio in 2015-16 and 2016-17 as well.

22
Chapter No.2

RESEARCH METHODOLOGY

2.1 OBJECTIVE OF RURAL PERSONAL LOAN :-

1. To Study and have idea regarding various types of loan.

2. To identity the loan sanction procedure.
3. To increase awareness about the benefits of financial services among the
economically undervillage section of the society.
4. To Help people secure financial services and products at economical price
such as deposit , fund transfer service , loans , insurance , payment services etc.
5. To understand Bajaj Finserv inclusion work towards creating financial products
that are suitable for the les fortunate people of the society.

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2.2 VISION AND MISSION OF THE ORGANIZATION :-

VISION :
Bajaj Finserv has a vision to become a full – fledged services company and be
the financial partner to the Indian consumer and help him across his across his
financial needs , whether for finance , for investment management , for
protection or for post – retirement support , throughout his lifecycle .

MISSION :
Bajaj Finserv aims to be the most useful , reliable and efficient provider of
Financial Services . It is our continuous to be a trustworthy advisor to our
clients , helping them achieve their financial goals.

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EXECUTIVE SUMMARY : -

The Project titled `` To study and analysis the cash process of Bajaj Finserv with an
aim to suggest improvement to the process `` in Pune city.

Project mainly focused on the working method of the sales executives and what
problem they faced during completing the file or preparing the file . How many days
were taken by the sales executive and the sales manager to prepare and disburse the
amount to the dealer and were they maintain the time to cash.

This research is based on primary as well secondary data . however primary data
collection was given more importance . Research has been done by primary data
collection by integrating with sales executive . Secondary data has been collected from
company annual report and database .

The study was conducted based on questionnaires to collect the necessary data :
question were asked and the necessary information was filled on the basis of the
respondent answer. The questionnaires are in the structured from , the research study
was done with the structured personal interview.

This project also focuses the loan procedure and its approval by studying the cases
and records of the company , which documents are necessary for approved of loan and
also to show the SWOT analysis of company through this project the researcher
has learn how to durable project and how to solve difficulties about the documents .
The project deals with time to cash , completing their files and getting the approved
online from Bajaj server called as `` Galaxies `` portal and disbursement of cash to
the dealer , this process helped me to better understand the procedure of consumer
durable product at Bajaj Finserv lending and how time is important in each and every
part of the process.

SCOPE OF THE STUDY :

To reduce the process of time to cash at different counters of Bajaj Finserv during a
fixed period of time

25
 LIMITAION OF THE STUDY :

 Loan available for salaried and self employed Only .

 Borrowers within the age group of 21 and 65 years.
 Loan amount of minimum Rs.1 Lake to Rs.25 Lake.
 Loan Tenure 24 To 60 Months.
 Bajaj Finance personal loan rate of interest is in the range of 11.99% To 15.50%.

SIGNIFICANCE OF THE STUDY :

 A rural personal loan is and should be taken to tide over emergencies only . It
should not be taken on whims or just because one feels like splurging . They carry
high interest rates or if is a secured personal loan then you may lose your
collateral.
 If you are self – employed or salaried , there may be times when you need
instant cash for emergencies of different kinds , then you could go for a Rural
personal Loan. Timing and speed are vital factors while choosing a Rural Personal
loan across various institutions.
 Numerous uses of Rural Personal loans are domestic or foreign travel , Medical
treatment for self or family members , education , marriage , business expansion ,
working capital , working requirements and meeting capital , working
requirements and meeting margin money for purchase of assets and so on and
so forth.

OVERVIEW OF THE SME LOAN MARKET IN INDIA : -

Unless otherwise indicated, all data in this section is derived from the following source:
"Unsecured Small Business Loans" Report dated May 2015 by CRISIL Research.
 million. These loans are usually for the purpose of bridge financing, in particular for
reasons of short term shortage of liquidity; to take advantage of a short -term business
opportunity and/or for business expansion when loans from traditional sources are
unavailable.

26
 An average loan size is Rs. 1.5 to Rs.2 million, although some foreign banks may offer
larger loans. Most players in the s mall and medium enterprises loan market are not
comfortable with larger loans and loans of Rs. 10 million may be shared by more than
two NBFCs or banks.
 The average loan maturity date is for a period of 36 months. So me NBFCs also offer
loans with maturity dates of 24 months.

27
 Chapter - 3

LITERATURE REVIEW :

THEORETICAL FRAMEWORK : -

Bajaj Finserv , a diversified non banking Finance company ( NBFC ) , has launched
online personal loans for high net - worth individuals , with a ticket size between
Rs 1 Lake and Rs 25 Lakh , where approval is said to happen in a timeline of
five minutes and disbursement within the next 72 hours .

The products is advantageous to target customers . Most of them being corporate

employees do not have the time to visit bank branches to apply for loans , or else
hold meetings with the sales persons . The excepted ease and speed would be
and edge for the product . Besides the issue of time , customers would be saved
from miss – selling and miss – quoting , a rampant practice in the financial services
industry currently.

The Factor to be careful about is the interest rates charged online . That needs to be
compared with the offline offers since you would not get a chance to negotiate
online. The other issue that customers might face would be the cross – selling of
other financial products . If may become frequent enough , to the distaste of
customers .

Although banks have the online facility of applying for personal loans online , it is
mainly designed to generated a lead , the sales person gets in touch with you andyou
get to do the same documentation like you would have done had you applied - by
visiting a branch or else fixing up a sales meeting . Applying online only saves you
from the initial visit or meeting .

BAJAJ FINSERV A DIVERSIFIED NON – BANKING ( NBFC ) , has launched online

personal loans for high net - worth individuals , with a ticket size between Rs1 Lake
and Rs 25 Lake , where approval is said to happen in a timeline of five minutes and
disbursement within the next 72 hours.

28
The product is advantageous to target customers . Most of them being corporate
employees do not have the time to visit bank branches to apply for loans , or else
hold meetings with the sales persons. The excepted ease and speed would be an
edge for the product . Besides the issue of time , customers would be saved from
miss – selling and miss – quoting , a rampant practice in the financial services industry
currently.

Market Size and Growth :-

The global financial crisis in the financial year 2009 significantly affected the quality of
unsecured small business loans, driving up delinquencies. Consequently, many private banks
and NBFCs downsized their portfolios or exited this market and started to focus on secured
products such as loans against property, home loans, or gold loans. Public sector banks
stopped offering unsecured small business loans and largely have not resumed offering such
loans. CRISIL Research is of the opinion that public sector banks have kept away fro m
offering unsecured small business loans due to their higher operating costs , lower ticket sizes
and the challenges on credit appraisal and recovery hit profitability.

CRISIL Research believes that growth in the small business loan portfolio will largely be
volume driven, with the loan quantum closely trailing the inflation number (an estimated 4 -
6%). Their interactions with leading players indicate that off take will grow faster in non -
metropolitan areas as compared to metropolitan areas. NBFCs, which have a stronger
presence in non -metropolitan areas, should thus gain an edge over private banks. Mostly, SM
Es with an average turnover of Rs 50-200 million opt for unsecured small business loans.
CRISIL Research projects that over the financial years 2016 to 2017, advances to SMEs will
record a higher 20 -21% CA GR (over a 16-18% CA GR for the industrial and services sector
loan books). This growth would be aided by the robust performance of sectors such as
construction, auto components, pharmaceuticals, hospitals and nursing homes.

29
 Competitive Environment : While NBFCs have been very aggressive in expanding
their unsecured small business loan book, and are targeting new customers, the private banks
offering unsecured small business loans mostly cater to existing customers.

Unsecured Small Business Loan Outstanding Mix as of March 2015

Strong market penetration and increasing operating efficiency

NBFCs have strengthened their presence in non-metropolitan areas, even though many banks
have branches in such areas they do not offer unsecured small business loans, which lowers
their penetration. CRISIL Research estimates, loans fro m non-metropolitan areas account for
more than 50% of NBFCs’ loan book in this segment.

Growth in NBFCs' loan book can also be attributed to the fact that they are replacing credit
typically extended by the unorganized sector (money lenders).

According to CRISIL Research, NBFCs have improved operating efficiencies by upgrading

systems, concentrating on branches that fetch more business, and shifting towards a customer
relationship model.

Customer Profile : -

Unsecured Small Business Loan Mix

30
Self-employed non-professionals, such as traders, manufacturers and service providers, are
the largest customer segments for unsecured small business loans with a 70% share as of
March 2015. Such customers are riskier than self-employed professionals, such as doctors,
and are charged higher interest rates of 18-20% on average as compared to an average
interest rate of 14% for doctors. According to CRISIL Research, over the last three years,
NBFCs have stepped up the focus on self-employed professionals, leading to a faster growth
in advances to this segment.

Among self-employed non-professionals, traders have traditionally been the dominant

category amongst the borrowers in this segment. However, this has been more so in
metropolitan areas than in non -metropolitan areas. With the increased focus in non-
metropolitan areas, the share of unsecured small business loans to traders has shrunk in the
past three years. CRISIL Research expects the trend to continue over the next three years, as
non - metropolitan areas influence the growth in this segment.

NON-BANKING FINANCE COMPANIES :-

 NBFCs are categorized (i) in terms of the type of liabilities into deposit and non -deposit
accepting NBFCs, (ii) non deposit taking NBFCs by their size into systemically
important and other non -deposit holding companies (NBFC-NDSI and NBFC-ND) and
(iii) by the kind of activity they conduct. Within this broad categorization the different
types of NBFCs are as follows:

 Investment Company ("IC"): An IC is a company that is a financial institution carrying

on as its principal business the acquisition of securities.
 Loan Company ("LC"): A LC is a company that is a financial institution carrying on as
its principal business the providing of finance, whether by making loans or advances or
otherwise for any activity other than its own but does not include an Asset Finance
Company.

31
3.1 PROFILE PARAMETERS :

ELIGIBILITY CRITERIA DETAILS

Profile Target Customer :

 Existing Two Wheeler customers

(AF) & existing RCD , CD , DDF .
including DCC customers , GL &
RF. Negative Profile - Not allowed
Age:

 Salaried : 21 to 60 years
 Non Salaried : 21 to 65 years
Stability Residence :

 At least 6 months in current

residence or 1 day in case of
owned house , No funding for
customer staying in PG , Hostel ,
Shared and Bachelor
Accommodation
Employment :

 Farmers : Not applicable

 Traders & Salaried : Min 12 months
in business / current Job. If it is
between 6-11 months , total business
experience / employment of min 2
years required.
 Self Employment : Min 12 Months
in trade
Contact ability Geo Limit :

 Hub : Up to 25 Kms radius toward

spoke : 20 Kms radius from Spoke

32
 OR as per geo limits defined .
REPAYMENT PARAMETERS : -

Customers Opting for NACH as mode of repayment

Account Owner Singly / Jointly held by Customer

Bank Type Salaried

 Primary operating account for

Salaried profiles
 Salary account required
 NACH
Self - Employment

 Primarybusiness account for self

Employed professionals , Traders ,
farmers
 Bank account to be in individual
name
 Account in the name of entity not
allowed , however , account in
name of proprietorship firm allowed
Pensioners

NACH

BANK AGE Not Applicable

Bounce and / or DPD checks in existing loans

33
RPL Offers basis TW , CD , PC , PL , DDF OR ( RCD + any of other product )

Bucket & DPD :-

 Max 30DPD. Never in Bucket 2 in the life of the loan

 No EMI bounce in last 2 months of performance for live
loans
 Written off loans not eligible

NO. OF BOUNCES

Status of Loan Tenure Bounce 1 Bounce in EMI Overdue

allowed Last 3M

Live 1 To 12M Max 1 Not Allowed Zero

13 To 24M Max 2 Not Allowed Zero

25 To 36 M Max 3 Not Allowed Zero

Expired 1 To 12M Max 1 Not Allowed Zero

13 To 24M Max 2 Not Allowed Zero

25 To 36 M Max 3 Not Allowed Zero

 AF DCC and RCD , DCC customers - Bounce will not be considered.

Only month end buckets will be considered.

Bounce and / or DPD checks in existing loans

RPL Offers basis RCD

Bucket : All the below at customer ID level where product = RCD , RF , RPL ,
GL, RCL , RAP , RDP & DPD.
 Never in Bucket 1 in the life of the loan
 Written off loans not eligible
 DPD > 10 days not allowed

34
 DPD Criteria

Status of Tenure Max DPD 1 Bounce in EMI Overdue

Loan Last 3M

Live Any 10 days Not Applicable Zero

Repayment
mode = Any Expired Any 10 days Not Applicable Zero
instrument

Status of Tenure Max DPD 1 Bounce in EMI Overdue

Loan Last 3M

Live Any 10 days Not Applicable Zero

Repayment
mode = DCC Expired Any 10 days Not Applicable Zero

Key Checks post Documentation

LEAD CREDIT SALES CREDIT OPERATIONS

GENERATION OPERATIONS

Negative
CIBIL* Dedupe Geo – TVR
Area
Tagging

35
KEY CHECKS POST DOCUMENTATION : -

DETAILS WHAT ELIGIBILITY

CIBIL  Credit information Bureau  Score of 0,-

of India. Maintains 1,>=700;
records of individuals’ Acceptable , Score <
payments pertaining to 700 : Not
loans and credit cards acceptable

DEDUE  De - duplication in Bajaj  No funding for

Finserv database Dedupe = Bad

NEGATIVE AREA  Better to avoid giving  No funding in

loans to people from negative area ,
negative areas like slums , community
chawlsetc as the default dominated area ,
rate is typically higher. chawls , slums and
outside geo limit
GEO TAGGING  Contact Point Verification  Mandatory
( Independent check by an  For all cases
agency )
TVR  TVR - Tele Verification  Mandatory for all
where physical PD
is not conducted

36
DETAILS OF CHECK IN THE APPROVAL PROCESS : -

CIBIL DEDUPE
CREDIT

DECISION
TELE PD *
NEGATIVE GEO

AREA TAGGING

LEAD GENERATION :-

CALL CENTER  Generates leads by calling customers on

Non-DND ( Non Do not Disturb mode as
per TRAI ) mode and sends the leads of
interested customers to the branch.
 Share the leads on DND ( Do Not Disturb )
customers to the branch
BRANCH SALES TEAM  Closes the Non – DND Lead by collecting
the documents from the customer and
disbursing the file
 Branch Sales Manager will allocate the DND
Leads to Sales Executives. Sales Executive
are Supposed are supposed to visit these
customers and close the lead.
 There could also be branch walk - ins as well

37
Lead information Shared by call centre will have all the details required for
interacting with the customer – Customer segment , Pre- approved offer , loan amount ,
Insurance deduction , Total Processing Fee , Net disbursement etc.

38
3.2 ROLE OF DIFFERENT TEAMS :-

•Data Churning •Policy Parameter

•Quality Check •Apply Analytics
•Upload in Sales Force( •Offer Strategy
SFDC ) post Risk
approval

BIU RISK
Team Team

Call
Branch
Centere
•Outbound Calling •Document Checks
•Leads moved to branch •Login
queue •Approval & Dispatch
•For DND , Field activity is •Follow TAT
carried out

39
DOCUMENTS VERIFICATION : -

The following documents are verified :-

 Completed and duly - filled application form

 Latest ID proof
 Latest Address proof
 Signed Photography
 ECS
 DM Checking
 Enrolment From of Bajaj Allianz dully signed by customer for Life Insurance
 Stamp Paper and Duty Process
 Terms & Conditions
 Signed Promissory Note

FORMS OF COMMUNICATION : -

VERBAL COMMUNICATION :

Communication involving use of sounds and language to relay a message is known

as verbal communication

E.g.Debates , Interviews , group discussion etc.

Non – verbal communication :

Non verbal communication is usually understood as the process of communication

through sending and receiving wordless ( mostly visual ) cues between people .
Messages can be communicated through gestures and touch , by body language or
posture , by facial expression and eye contact

E.g.Shaking hands , patting the back , hugging or pushing etc.

Written communication :

40
Written Communication involves expressing yourself clearly , using language with
precision ; constructing a logical argument ; note taking , editing and summarizing , and
writing reports. E.g. Writing letters , Minutes of the meeting .

COMPONENTS OF EFFECTIVE COMMUNICATION :-

There are three components to essential communication :

 CONVICTION :

Stems from belief in your product / service / self.

It is perceived through the way you speak , your voice , your expressions.

 CONFIDENCE :

It is perceived through your physical presentation : the expression on your face , your

handshake , body posture.

 ENTHUSIASM :

It adds vitality to what you say.

NON VERBAL COMMUNICATION :-

Non verbal communication refers to all external stimuli other than spoken or
written words and including body motion , appearance , and characteristics of
voice and use of spatiality.

The way you speak , appear and move which may be similar or contradict your
speech ratifies what you spoke of and is a core aspect of non – verbal
communication.

NVC is the physically depicted representation mirror of thoughts and thought

process.

Some of the major cues to look at to understand non-verbal communication include

:

41
  Expression of face
 Bodily postures
 Gestures or hand movement
 Tone of Voice
 Personal habits and manners
 Importance of NVC :
1. According to papers published in several scientific journals , 7 % of the
emotions are expressed in words and the rest 93% are expressed through non-
verbal cues. Non – verbal cues include facial expressions (55%) and vocal tones
(38%)
2. Non – verbal communication improves / dilutes the accompanying message
3. It generally assumes a great significance when the person is trying to hide
something or the issue is significant.
4. It has been observed that people believe in non – verbal messages rather than
verbal message when both of them are in conflict with each other.
5. And finally , non – verbal messages are more trustworthy . Remember , the old
proverb.

42
 THE CALL : -

• Introduction
• Uncovering
• Opening
( Small )
needs
Attention Interest

Desire Action

• Giving small • Getting the

benefits Appointment

TENETS OF TELEPHONE ETIQUETTES :

1. Listen
2. Always Smile
3. Be Professional and Courteous.
4. Always be Polite and helpful when using the Telephone
5. Have a positive Attitude and use Positive Words.

KEY POINTS TO REMEMBER :

1. End the conversation on a positive note

2. Thank the caller
3. Confirm
4. date and time of meeting

43
 Chapter No.4

DATA ANALYSIS , INTERPRETATION AND PRESENTATION :

TYPE OF RESEARCH : -

Descriptive research - Descriptive studies are under taken in many circumstances.

When the researcher is interested in knowing the characteristics if certain group such
as age , gender , occupation , educational level or income , a descriptive study may be
necessary. Other cases when a descriptive study could be taken up are when researcher
is interested in knowing the proportion of people in a given population who are
aware and are interested in consumer durable finance.

DATA TYPE :-

Primary data is that which is collected by sociologists themselves during their own
research using research tools such as experiments , survey questionnaires , interview
and observation.

Primary data can take a quantitative or statistical form , e.g. Charts , graphs, diagrams
and table . It is essential to interpret and evaluate this type of data with care , In
particular , look at how the data is organised in terms of scale. It it organised into
percentages , hundreds , thousand , etc. It a snapshot of a particular year or is it focusing
on trends across a number of years?

Primary data can also he qualitative , e.g. extracts from the conversations of those being
studies. Some researchers present their arguments virtually entirely in the words of their
subject matter. Consequently the date speaks for itself and readers are encouraged to
make their own judgements.

44
Primary date is the data collected by the researcher himself . I have used the following
sources of data in this project work.In my research the primary data collections was
mainly done through the questionnaires to sales executive . I meet the respondents
personally & requested to answer my questions for the requirement of my study.

4.1 DATA COLLECTION TOOLS : -

The data was collected through questionnaire and data given by the branch office.

SAMPLING PLAN

Non probability sampling plan.

SAMPLING UNIT

The sampling unit were all respondent where the sales executive of Balaji Finserv
lendinding.

SIZE

Since my research work is entirely based on descriptive design. I have used the sample
size as 30.

DEALERS COVERED

 GREAT EASTERN APPLIANCES

 KHOSLA ELECTRONICS
 RELIANCE RETAIL LIMITED
 SALES EMPORIUM

SAMPLE UNIT

The sampling unit were all respondent where the sales executive of Bajaj Finserv
lending.

SAMPLING METHOD

Non Probability convenient sampling is used.

45
KNOWLEDGE ABOUT T2C , IN DIFFERENT STORIES OF DEALERS ?

27 3 30

Serial No. Particulars No. of Respondents %

1 Yes 27 90

2 No 3 10

Total 30 100

Sales Executives have Knowledge about T2C , but very few sales executives those
who were fresher’s they do not have knowledge about T2C.

46
WHAT IS THE REASON OF INCREASING T2C DAYS ?

30

25

20

15

10

0
Files pendency Unavailability of stock… Seasonal pressure

Season Reason YES NO

1 Files pendency 5 25

2 Unavailability of 7 23
stock

3 Seasonal pressure 24 6

Through the above data collected the result which came out was that the major
reason for increase in T2C was due to seasonal pressure .

47
DO YOU HAVE ANY PROBLEM REREADING MANPOWER ?

Serial No. Particulars No. of Respondent %

1 YES 8 26

2 NO 22 73

TOTAL 30 100

This graph shows that in many stores have problem regarding manpower , Many of
the counters faced manpower problem during festive season. And during summer
season.

48
DOES EVERYONE IN YOUR TEAM KNOWN ABOUT T2C ?

Serial No. Particulars No. of Respondent %

1 YES 25 83

2 NO 5 17

TOTAL 30 100

This graph shows in few stores the sales executive didn`t knew about the
process of T2C , They were freshers and didn`t knew much about the process.

49
 Satisfied With ThePlan

Number Of people Satisfied WithTheir Plans

YES
NO

People Satisfied With Plan No. Of Percentage

Respondent
Yes 72 78%
No 28 28%
Total 100 100%

On the basis of analysis it has been conducted that around 72% peoples are
satisfy with their investment and 28%peples are not satisfied with their
investment.

50
 Satisfied With The Services Of the company

no. of people satisfied with the services

1st Qtr
2nd Qtr

Satisfied people with No. Of Respondent Percentage

services
Yes 82 82%
No 18 18%
Total 100 100%

On the basis of analysis it has been show that 82 % peoples are satisfied with the
service provided by their company and other 18%are not satisfied

51
 People Want To more Investment In BSLI

no. of people want to invest more

yes

2nd Qtr

People Want to More Investment No. Of Responded Percentage

In BSLI
Yes 67 67%
No 33 33%
Total 100 100%

On the basis of analysis it has been shows that 67% peoples are interested in more
investment in BSLI And 33% people are not interested to increase investment in
BSLI.

52
EXCHANGE RATES : -

Fluctuations in the exchange rate between the Rupee and foreign currencies will affect the
foreign currency equivalent of the Rupee price of the Equity Shares on the Stock
Exchanges. These fluctuations will also affect the conversion into foreign currencies of any
cash dividends paid in Rupees on the Equity Shares.

The following table sets forth information with respect to the exchange rates between the
Rupee and the U.S. dollar (in ` per US$), for or as of the end of the periods indicated. The
exchange rates are based on the reference rates released by the RBI, which are available on
the website of the RBI. No representation is made that any Rupee amounts could have
been, or could be, converted into U.S. dollars at any particular rate, the rates stated below,
or at all.As of June 3, 2015, the exchange rate (RBI reference rate) was ` 63.85 to US$ 1.00

Period end Average(1) High(2) Low(3)

Fiscal Year:

2015 62.59 61.15 63.75 58.43

2014 60.10 60.50 68.36 53.74

2013 54.39 54.45 57.22 50.56

2012 51.16 47.95 54.24 43.95

2011 44.65 45.58 47.57 44.03

Month ended:

May 31, 2015 63.76 63.80 64.20 63.52

April 30, 2015 63.58 62.75 63.61 62.16

March 31, 2015 62.59 62.45 62.82 61.82

February 28, 2015 61.79 62.04 62.43 61.68

January 31, 2015 61.76 62.23 63.45 61.41

December 31, 2014 63.33 62.75 63.75 61.85

53
 Chapter No.5

CONCLUSION : -

The entire one months of the internship was a learning experience. A lot of ups and
downs came in the path of project completion but the end results were very
promising , Company seems to be doing quite well and its customers base seems
satisfied . It has a lot of potential in this sector only if its is able to tap the untapped
market and do more market penetration .

This is can be brought about by promoting its products and services and making
people more aware of the benefits of . Also it can have some flexibility in its
procedures so that the consumers feel more at home with the company . The
company and the process of completing the file can be easer if the sales executive
and the managers corporate each other in their work .

54
SUGGESTIONS : -

 Lower the CIBIL Score

 Loans to Customers outside city
 Innovative Marketing Approach
 More Flexible scheme for Digital Products
 Developing and implementing superior risk management and investment strategies to
offer suitable and stable returns to our policyholders.
 Company shouldprovide full information to the customers before targeting so they can
take interest.
 Annual premium should be reasonable.

55
BIBLIOGRAPHY :-

 Online References :-

 www.bajajfinservlending.in
 www.slideshare.com
 www.salesforce.com
 www.evco.com

56