Role of Bajaj Finance in driving consumer durable sales

Role of Bajaj Finance in consumer durable sales I
Fortune Institute of International Business Page I
SUMMER INTERNSHIP PROJECT
“ROLE OF BAJAJ FINANCE IN CONSUMER DURABLE SALES”
CORPORATE INTERNSHIP PROGRAM PROJECT REPORT
SUBMITTED IN PARTIAL FULFILMENT OF PGDM PROGRAM
2012-14
SUBMITTED BY:
PRAVEEN KUMAR
Roll no. 99
SUBMITTED TO:
Mr. GAUTAM GUPTA FM.A. KHAN
Area Sales Manager Professor
Sales Finance FIIB

Role of Bajaj Finance in consumer durable sales II
Fortune Institute of International Business Page II
Table of Contents
TABLE OF CONTENTS.........................................................................................I-III
LIST OF FIGURES AND GRAPHS.................................................................IV-V
LIST OF TABLES........................................................................................................VI
Chapter 1: EXECUTIVE SUMMARY.....................................................................1
Chapter 2: INTRODUCTION TO SECTOR/COMPANY...............................2
2.1. Introduction......................................................................................................2-3
2.1.1. Financial Sector....................................................................................2
2.1.2. Areas of Finance...................................................................................3
2.1.2.1. Personal Loan…………………………..…………….3
2.1.2.2. Financial Risk Management.................................................3
2.1.2.3. Intangible Asset Finance.......................................................3
2.2. Company Profile..................................................................................................4
2.2.1. Introduction……………………………………………….……...4
2.2.2. Present Status…...................................................................................4
2.2.2.1. Our Values..............................................................................4
2.3. Product Profile……………………………………...……….………….5
2.4. Organizational Hierarchy…………………………………...……………….5-6
2.4.1. Introduction………………………………………………………...5-6
2.5. History of Bajaj Finserv Lending.................................................................7-10
2.6. Brand Identity…………………………………...………….....……………11-12
2.7. Peers Background……………………………………………………….…12-15
2.7.1. Capital First………………………………………………...……12-13

Role of Bajaj Finance in consumer durable sales III
Fortune Institute of International Business Page III
2.7.1.1. Company Overview……………………………………12-13
2.7.2. Reliance Capital………………………………………………….14-15
2.7.2.1. Company Overview……………………………………14-15
Chapter 3: REVIEW OF LITERATURE........................................................16-19
Chapter 4: PROJECT OBJECTIVES..................................................................20
Chapter 5: PROJECT METHODOLOGY ADOPTED…........................21-23
5.1. Methodology………………………………………………………….…….…21
5.1.1. Primary Data………………………………………………………..21
5.1.2. Secondary Data……………………………………………………...21
5.2. Research Design……………………………………………………………21-23
5.2.1. Exploratory Research……………………………………………….22
5.2.2. Descriptive Research………………………………………………..22
5.2.3. Empirical Research…………………………………………………22
Chapter 6: DATA COLLECTION………………………………….................24-54
6.1. Description of the Work Performed……………………………………...24-26
6.2. Financial Analysis using Ratios……………………………………….…..26-27
6.3. Quick Ratio…………………………………………………………….......28-29
6.4. Earnings per Share.......................................................................................29-30
6.5. Management Efficiency Ratio.....................................................................30-31
6.6. Assets Turnover Ratio..................................................................................32-33
6.7. Debt Coverage Ratio....................................................................................33-34
6.8. Investment Valuation Ratio.........................................................................34-35
6.9. Price Earning Ratio......................................................................................35-36
6.10. Dividend Payout Ratio...............................................................................36-37
6.11. Process Adopted.........................................................................................37-39
6.11.1. Documentation..................................................................................37
6.12. Recommendations Proposed for Each Stage.................................................40
6.13. Documents Required for Loa Approval........................................................40
6.14. Surrogates Requirements for Loan Approval.........................................41-42

Role of Bajaj Finance in consumer durable sales IV
Fortune Institute of International Business Page IV
6.15. SWOT Analysis of Bajaj Finserv Limited...............................................43-44
6.15.1. Strengths............................................................................................43
6.15.2. Weakness...........................................................................................43
6.15.3. Opportunities....................................................................................44
6.15.4. Threats...............................................................................................44
6.16. Learning............................................................................................................45
6.16.1. Dealing with Customers...................................................................45
6.16.2. Pitching Customers towards Various Other Products..................45
6.16.3. Process of Granting Loan................................................................45
Chapter 7: FINDINGS…………………………………………………................55-56
7.1. Advantages of BFL scheme over its competitors………….……….…….55-56
Chapter 8: RECOMMENDATIONS……………………………………..........….57
REFERENCES………………………………………………………..............……58-61

Role of Bajaj Finance in consumer durable sales V
Fortune Institute of International Business Page V
List of Figures and Graphs
Figure 2.1 Values of Bajaj Finserv lending.............................................4
Figure 2.2 Organizational Hierarchy.......................................................6
Figure 2.3 Corporate Hierarchy...............................................................8
Figure 2.4 Organization Chart.................................................................9
Figure 2.5 Bajaj Finserv Group Summary.............................................10
Figure 2.6 Board Members of Capital First...........................................13
Figure 2.7 Board Members of Reliance Capital.........................................15
Figure 5.1 Categories of Research Design.............................................22
Figure 6.1 Marketing & Selling Ratio...................................................24
Figure 6.2 Employees v/s Sales Ratio...................................................26
Figure 6.3 Current Ratio........................................................................27
Figure 6.4 Quick Ratio...........................................................................28
Figure 6.5 Earnings per Share................................................................30
Figure 6.6 Debtors Turnover Ratio........................................................31
Figure 6.7 Assets Turnover Ratio..........................................................32
Figure 6.8 Total Debt to Owner Fund....................................................34
Figure 6.9 Dividend per Share...............................................................35
Figure 6.10 Price Earnings Ratio.............................................................36
Figure 6.11 Dividend Payout Ratio..............................................................37
Figure 6.12 Flowchart of Application Process...................................38-39
Figure 6.13 Strengths of Bajaj Finserv Limited……………….…………...43

Role of Bajaj Finance in consumer durable sales VI
Fortune Institute of International Business Page VI
Figure 6.14 Weakness of Bajaj Finserv Limited………………...……….43
Figure 6.15 Opportunities in Bajaj Finserv Limited………….………...44
Figure 6.16 Threats to Bajaj Finserv Limited…………………………..44

Role of Bajaj Finance in consumer durable sales VII
Fortune Institute of International Business Page VII
List of Tables
Table 2.1 Management Committee........................................................8
Table 6.1 Industrial Analysis: Marketing & Selling Expenses............24
Table 6.2 Employees v/s Sales Analysis..............................................26
Table 6.3 Current Ratio………...................................................................27
Table 6.4 Quick rate of Industry Bajaj & Peer group...........................28
Table 6.5 Earnings per Share…………................................................29
Table 6.6 Debtors Turnover Ratio........................................................30
Table 6.7 Assets Turnover Ratio..........................................................32
Table 6.8 Total debt to Owner Fund....................................................33
Table 6.9 Dividend per Share…...........................................................34
Table 6.10 Price Earnings Ratio……………………………………….35
Table 6.11 Dividend Payout Ratio.........................................................36

Role of Bajaj Finance in consumer durable sales VIII
Fortune Institute of International Business Page VIII
1. EXECUTIVE SUMMARY
The project allotted to me with the title was “Role of Bajaj Finance in Consumer Durable
Sales.” The objective behind this project was to primarily focus on Modus Operandi of Bajaj
Finance for Finance of Consumer Durable products. This required a fist hand experience in
understanding end to end process flow for loans processing to payment disbursement and
coming with Suggestions to make experience more Delightful for customers and channel
partners. I was also focusing on way of operations at 2 types of Outlets: Owner Driven and
LFR’s and Bajaj Finance’s SWOT analysis at both these outlets. Competitors working (CC
or Capital First), Reliance Capital Ltd viz a viz BFL and stress areas will have to focused
along with. During the project I have analyzed major financial areas of Bajaj with its peer
group and observed their trend with respect to the Industry trend which helped me to gain
better insight of market condition of these companies. My sip started with placing me at
Croma Store, South – Ex, where I have learned basic things about consumer durable goods
and how it is offered to customers. ’, I had to go daily from morning 11:00 am to evening
8:00 pm. Where I have to deal with the customer and tell them about 0% finance plan which
is available easily on almost all brands of consumer durable goods. Time to Time I have
asked the customers for their suggestions and feedback to improve this service in better way.
This process helped me to understand customer behavior and a way to approach them. As
customers are of different types with different attitude, so overall this experience was good
for me.
In third phase of project I was working as an Employee of Bajaj Finserv Lending. I was
dealing with proper customer, provided them loans by completing their files and getting the
approval online form Bajaj Server called as “Galaxie” Portal. This process helped me to
better understand the service procedure of Bajaj Finserv Lending.

Role of Bajaj Finance in consumer durable sales IX
Fortune Institute of International Business Page IX
2. INTRODUCTION TO SECTOR/COMPANY
2.1 INTRODUCTION:
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 infrastructure and construction sector. Bajaj Finserv
Lending will help grab this opportunity to grow real estate businesses.
2.1.1. Financial Sector:
A category of stocks containing firms that provides financial services to commercial and
retail customer. This sector includes banks, investment funds, insurance companies and real
estate.
Financial services perform best in low interest rate environments. A large portion of this
sector generates revenue from mortgages and loans, which gain value as interest rates drop.
Furthermore, when the business cycle is in an upswing, the financial sector benefits from
additional investment improved economic condition usually lead to more capital projects
and increased personal investing. New projects require financing, which usually leads to a
large number of loans.
“Finance” is often defined simply as the management of money or “funds” management.
Modern finance, however, is a family of business activity that include the origination,
marketing, and management of cash and money surrogates through a variety of capital
accounts, instruments, and markets created for transaction and trading assets, liabilities, and
risks. Finance is conceptualized, structured, and regulated by a complex system of power
relation within political economies across state and global market.

Role of Bajaj Finance in consumer durable sales X
Fortune Institute of International Business Page X
2.1.2. Areas of Finance:
2.1.2.1. Personal loan
 How much money will be needed by an individual (or by a family), and when?
 How can one plan for a secure financial future in an environment of economic
instability?
2.1.2.2. Financial Risk Management
Financial risk management is the practice of creating and protecting economic value
in a firm by using financial instrument to manage exposure to risk, particularly credit
risk and market risk. It focuses on when and how to hedge using financial
instruments; in this sense it overlaps with financial engineering. Similar to general
risk management, financial risk management requires identifying its sources,
measuring it, and formulating plans to address these, and can be qualitative and
quantitative.
2.1.2.3. Intangible Asset Finance
Intangible asset finance is the area of finance that deals with intangible assets such as
patent, trademarks, etc.

Role of Bajaj Finance in consumer durable sales XI
Fortune Institute of International Business Page XI
2.2. COMPANY PROFILE
2.2.1. Introduction:
What started off as a sugar manufacturing factory in 1931 has grown to become one of the
country’s largest business houses? With activities that encompass a whole range of
industries, spanning automobiles (two-wheelers and three-wheelers), home appliances,
lighting, iron and steel, insurance, travel and finance.
2.2.2. Present Status:
2.2.2.1. Our values:
• We respect the opinions and decisions of others.
• We encourage and back people to do their best.
Empowerment
• We are willing to learn and adapt to the
environment, our partners and customers
evolving needs.
Flexibility
• We always strive to change the status quo.
• We innovate with new ideas and energies with a
strong passion and entrepreneurial skills.
Enterpreneurship
• We believe we must work with honesty, truth
and the inmate desire to do well.
Transparency
• We are driven by the desire to create a
meaningful difference in society.
Impact

Role of Bajaj Finance in consumer durable sales XII
Fortune Institute of International Business Page XII
Figure 2.1: Values of Bajaj Finserv lending
2.3. PRODUCT PROFILE
Bajaj Finserv Lending offers loans for various needs. We offer loans for Bajaj Auto Two
Wheelers under the name of Bajaj Auto Finance Ltd. We offer Consumer Durable Loans,
Personal 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 NBFCs 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
Services.
2.4. ORGANIZATIONAL HIERARCHY
2.4.1. Introduction:
A key issue in accomplishing the goals identified in the planning process is structuring the
work of organization. Organizations are group of people, with ideas and resources working
toward common goals. The purpose of the organizing function is to make the best use of the
organizations resources to achieve organizational goals. Organizational Structure is the
formal decisions making framework by which job tasks are divided, grouped and
coordinated. Formalization is an important aspect of structure. It is the extent to which the
unit of organization is explicitly defined and its policies, procedures and goals are clearly
stated. It is the official organizational structure conceived and built by top management. The
formal organization can be seen and represented in chart form. An organization chart

Role of Bajaj Finance in consumer durable sales XIII
Fortune Institute of International Business Page XIII
displays the organizational structure and shows job titles, lines of authority and relationship
between departments.
Organizational Structure allows the expressed allocation of responsibilities for different
functions and processes to different entities. Ordinary description of such entities is as
branch site, department, work group and single group of people.
Figure 2.2: Organizational Hierarchy
BH
NSMZSM
SMMO
ASM
EAST WEST NORTH SOUTH
RMS
KOLKATTA DELHI MUMBAI BANGALORE
ORISSA GUJARAT RAJASTHAN ANDHRA
PRADESH
JHARKHAND MAHARASHTRA UTTAR
PRADESH
TAMIL NADU
CEO

Role of Bajaj Finance in consumer durable sales XIV
Fortune Institute of International Business Page XIV
2.5. HISTORY OF BAJAJ FINSERV LENDING
Bajaj Finserv was formed in April 2007 as a result of its demerger from Bajaj Auto Limited
to act as a pure play financial services business. The process of demerger was completed in
Feb 2008. This demerger was not only to unlock values in the high growth business areas of
Auto, Insurance, Finance sectors and Wind Power but also to run independently these core
businesses and to strengthen the competencies.
The wind power project, the stakes in the life and general insurance companies and
consumer finance along with their respective assets and liabilities got vested in Bajaj Finserv
Limited. 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
demands 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. Bajaj Finserv was formed specifically to
cater to these needs. The company was also formed to touch and improve the lives of a
growing number of people in the country, and in doing so, deliver superior corporate values
to its shareholders. The operating companies carry with them the Bajaj brand, which carries
with it decades of commitment to business ethics, integrity and highest standards of
fiduciary responsibility.

Role of Bajaj Finance in consumer durable sales XV
Fortune Institute of International Business Page XV
Figure 2.3: Corporate Hierarchy
Table 2.1: Management Committee
NAME DESIGNATION
Rahul Bajaj Chairman
Sanjiv Bajaj Managing Director
Rajiv Bajaj Director
S H Khan Director
Nanoo Pamnani Vice Chairman
Madhur Bajaj Director
D J Balaji Rao Director
Naresh Chandra Director
Rajeev Jain Chief Executive Officer
Anant Damie Company Secretary
RAHUL
BAJAJ
CHAIRMAN
RAJEEV
JAIN
CEO
ANANT
DAMIE
CS
DALAL &
SHAH
CA
NANOO
PAMNANI
VICE CHAIRMAN

Role of Bajaj Finance in consumer durable sales XVI
Fortune Institute of International Business Page XVI
Organization Structure
Figure 2.4: Organization Chart

Role of Bajaj Finance in consumer durable sales XVII
Fortune Institute of International Business Page XVII
Figure 2.5: Bajaj Finserv Group Summary
• A 25 year old non bank finance company
• Diversified consumer, SME & commercial
lender in india
• 82 cities presence with over 4,200
distribution franchise
BAJAJ
FINSERV|LENDING
• 2nd largest private general insurer in India
• Offer wide range of general insurance viz.
Motor, Health & Corporate in India
• Strong franchise built on fast & efficient
customer services
BAJAJ|ALLIANZ
• Bajaj finserv is the financial services arm of
the Bajaj group with business interest in
"Lending", "Protection" and "Wealth
management" through its various
subsidiaries
BAJAJ FINSERV
• 2nd largest policy acquire amongst private
insurers.10.5 lac policies in FY12
• 2nd largest profitable life insurer in private
sector in FY12
• 1,044 Branches with over 173K agents
BAJAJ|ALLIANZ
• A new business diversification for BFS
• Launched retail financial advisory business
in 04 cities in FY11
• Recieved SEBI approval to launch mutual
fund business. proposed JV with Aaalianz
BAJAJ
FINSERV|WEALTH
MANAGEMENT

Role of Bajaj Finance in consumer durable sales XVIII
Fortune Institute of International Business Page XVIII
2.6. BRAND IDENTITY
Bajaj Finserv is the financial services company of the Bajaj Group. Its current business lines
include Protection through Bajaj Allianz Life Insurance and Bajaj Allianz General
Insurance, Lending through Bajaj Finance Limited and Wealth Management through Bajaj
Financial Solutions Limited. All underlying businesses currently operate with their
independent brands.
With the intention to build a set of financial services businesses in coming years that share
the Bajaj Finserv Group’s common values of Reliability, Innovation and Efficiency and
provide customers with high quality products and services, Bajaj Finserv has created its
brand identity. The new identity is easily identifiable and yet distinct. All the businesses
under Bajaj Finserv would use the common identity in a coherent manner such that
consumers experience through each business, the Bajaj Finserv values and identify the new
brand identity with the same.
Brand ‘Bajaj Finserv’ is symbolized by a unique visual identity that aligns our various
businesses for our consumers and business partners, distinguishes it from competitors and
promotes the strong values that Bajaj Finserv stands for. Bajaj Fiserv’s brand completely
embodies its growth and services.
The current Bajaj logotype identifies and stands on the very established and respected Bajaj
identity and the 3 dimensional seal with the B and F makes the new identity uniquely
recognizable. The color blue in the logo indicates confidence & strength. The round ball
symbolizes the world with focus on India.

Role of Bajaj Finance in consumer durable sales XIX
Fortune Institute of International Business Page XIX
The brand delivers a distinctive and contemporary identity, which communicates Bajaj
Finserv values in dynamic and consistent manner and is designed to be easily recognizable
and yet differentiated so as to build an enriching and sustainable relationship with all who
experience it.
2.7. PEERS BACKGROUND
2.7.1. Capital First
2.7.1.1. Company Overview:
In 2006 the company receives certificate of registration from RBI as to function as an NBFC
Conversion from a private limited company to a public limited company. In 2008 Future
capital holding announces the fixing of the price band for its IPO and in the same year it
changed its name from KB Infin Pvt. Ltd to Future Capital Holdings Ltd. In 2010 Company
gets its new Vice Chairman and Managing Director Mr. v. Vaidyanathan and afterward
Company started Mortgages business.
In 2011 company expands its business and launches Gold loan business. In the same year
Future capital have faces many new changes like getting merge with its parent company i.e.
Future Capital Holdings, it launches automation of consumer Durable Financing business at
stores with 3 minutes approvals, it launches property broking services and wealth
management business and many more other services.
In 2012 its launches Two – Wheeler loans business to give a competition to its competitors
like Bajaj Finance, Reliance Capital, etc. To make this tougher its launches online broking

Role of Bajaj Finance in consumer durable sales XX
Fortune Institute of International Business Page XX
platform which resulted in Rs. 200 crores of subordinated debt. In the same year a big
merger takes place between FCH Securities & Advisory Limited (FSAL) and Future Capital
Investment Advisors Limited (FCIAL) with Kshitij Investment Advisory Company Limited
(KIACL), a 100% subsidiary of FCH. Name of the Company has been changed from Future
Capital holdings Limited to Capital First Limited. The company has a team of over 1000
employees, who are experienced in the financial industry.
Capital first invested in people, process and technologies and has placed a strong credit and
risk management team. The credit team is a separate vertical within the Organization, which
undertakes detailed credit analysis, and processes files after checking credit performance
with credit bureaus.
Figure 2.6: Board Member of Capital First
V. Vaidyanathan
Chairman and
MD
NC Singhal
Independent
director
Anil Singhvi
Independent
Director
Hemang Raja
Independent
Director
M S Sundara
Rajan
Independent
Director
Vishal Mahadevia
Non Executive
Director

Role of Bajaj Finance in consumer durable sales XXI
Fortune Institute of International Business Page XXI
2.7.2. Reliance Capital:
2.7.2.1. Company Overview:
Reliance Capital Limited (RCL) was incorporated in year 1986 at Ahmedabad in Gujarat as
Reliance Capital & Finance Trust Limited. The name RCL came into effect from January 5,
1995. In 2002, RCL shifted its registered office to Jamnagar in Gujarat before it finally
moved to Mumbai in Maharashtra, in 2006.
In 2006, Reliance Capital Ventures Limited merged with RCL and with this merger the
shareholder base of RCL rose from 0.15 million shareholders to 1.3 million.
RCL entered the Capital Market with a maiden public issue in 1990 and in subsequent years
further tapped the capital market through rights issue and public issues. The equity shares
were initially listed on the Ahmedabad Stock Exchange and The Stock Exchange Mumbai.
Presently the shares are listed on The Stock Exchange Mumbai and the National Stock
Exchange of India.
RCL in the initial years engaged itself in steady annuity yielding businesses such as leasing,
bill discounting, and inter-corporate deposits. Later, in 1993 diversified its business in the
areas of portfolio investment, lending against securities, custodial services, money market
operations, project finance advisory services, and investment banking.
RCL was accredited a Category 1 Merchant banker by the Securities Exchange Board of
India (SEBI). It had lead managed/co-managed 15 issues of an aggregate value of Rs. 400
crores and had underwritten 33 issues for an aggregate value of Rs. 550 crore. All these
companies were listed on various exchanges.
RCL obtained its registration as a Non-banking Finance Company (NBFC) in December
1998. In view of the regulatory requirements RCL surrendered its Merchant Banking
License.
RCL has since diversified its activities in the areas of asset management and mutual fund;
life and general insurance; consumer finance and industrial finance; stock broking;
depository services; private equity and proprietary investments; exchanges, asset
reconstruction; distribution of financial products and other activities in financial services.

Role of Bajaj Finance in consumer durable sales XXII
Fortune Institute of International Business Page XXII
Figure 2.7: Board Members of Reliance Capital
Shri Anil Ambani
Chairman
Shri Rajendra Chitale
Director
Dr. Bidhubhusan Samal
Director
Shri V. N. Kaul
Director
Shri Amitabh Junjhunwala
Vice-Chairman

Role of Bajaj Finance in consumer durable sales XXIII
Fortune Institute of International Business Page XXIII
3. REVIEW OF LITERATURE
Bajaj Finserv Lending bets big on 0% interest finance
India Info line News Service / 17:22, Apr 17, 2012
The service economy continues to be the silver lining in an economic environment
riddled with volatility and uncertainty.
Today, 0% finance holds an over 11% share in the total consumer durables industry. Out of
the total sales of over INR 36850 Cr annually, over 4053 Crore are bought on 0% interest
finance. While the industry is growing at 9% YOY, 0% interest finance is growing at 13
times as much with over 118% growth YOY.
In turn, Bajaj Finserv Lending continues to be the largest driver of this growth with over 9%
share and growing at 88% YOY. This puts Bajaj Finserv Lending in a clear leadership
position. Today, one out of every 5 flat panel TVs is bought on the 0% interest consumer
durables loans option from Bajaj Finserv Lending. This growth has come at the back of
significant investments made in distribution, technology and process automation. They have
invested deep in technology and process innovations to create long term sustainable
advantages. This has allowed them to create win-win propositions for all members in the
ecosystem.
Available at over 4,000 outlets across the country across metros, tier 2&3 cities, Bajaj
Finserv Lending 0% interest consumer durables loans are available in places where other
finance options like credit cards may have low penetration. Even where other finance
options are available, Bajaj Finserv Lending 0% interest option offers a far better
experience. All a customer needs to do is to walk into any of the consumer durables stores in
the country, choose the desired product, and approach the in-store Bajaj Finserv Lending
representative. Within a few minutes, the person gets an approval on the loan. The customer
pays the defined down payment for the selected product and the remaining amount, is
divided into equal monthly installments. The customer can also choose from a range of loan

Role of Bajaj Finance in consumer durable sales XXIV
Fortune Institute of International Business Page XXIV
tenors, ranging from 12 to 18 months. This brings down the cost of ownership and also helps
the customer trade up. For example, if a person had a budget of 40,000, in case of a cash-
down option, he would have managed to get a 32inch LED. With 0% interest consumer
durable loan, he can now trade up to a 46 inch LED and bridge the gap with the 0% interest
consumer durable loan. In the case, he may choose to pay down an even lesser amount than
40,000 as the down payment and keep the rest as his savings.
They have developed credit policies and created partnerships to ensure the customer goes
through a simple, hassle-free and quick process. Their technology platforms allow them to
approve loans in as low as 3 minutes while he is in the shop, selecting his favorite product.
For the customer, this life-event should be about buying his aspirational device without
having to worry about the money he may need. The company has gone a step further and
introduced an innovative offering through the EMI card. Available only for existing 0%
interest consumer durable loans customers, the EMI card allows an existing customer to go
to any of the Bajaj Finserv Lending affiliated stores and pay for his next consumer durable
purchase with a simple swipe of the EMI card. The customer already has a pre-assigned loan
line on his account that is determined through the internal policy framework and past
behavior on his previous loan. EMI card is a proof point of how their
approach innovation and internal policy framework has created compelling long term brand
propositions for customers.
Bajaj Finserv Lending launches Extended Warranty with its 0% interest Consumer
Durables Finance
Another innovation from Bajaj Finserv Lending, Extended Warranty will provide
additional 1 year coverage for products after the expiry of the manufacturer warranty
period
Mumbai, Maharashtra, June 2, 2012 /India PR wire/ --
Bajaj Finserv Lending, the market leader in Consumer Durables Finance, has
launched 'Extended Warranty' plan with its 0% interest Consumer Durables Finance. This

Role of Bajaj Finance in consumer durable sales XXV
Fortune Institute of International Business Page XXV
gives customers another compelling reason to opt for 0% interest Consumer Durables
Finance for their durables purchases. Extended Warranty launch is an affirmation of the
company's active pursuit of innovations and commitment to continuously enhancing the
value bundle.
Product maintenance post the manufacturer's warranty is a challenge faced by the
consumers. Bajaj Finserv Lending envisages a huge scope in Extended Warranty as an
opportunity to further consolidate long term customer relationship even after the financing
tenure concludes.
"Extended Warranty is a proof of their commitment to continuously enhancing the role in
customer’s life, beyond just being another financier.
Extended Warranty will provide complete protection of the cost towards repair and
replacement of the consumer durable appliances arising out of unexpected defects in
material or workmanship, post the expiry of manufacturer's product warranty period.
The existing Extended Warranty market in India is completely unorganized, with some
retailers offering it with lots of terms and conditions. Bajaj Finserv Lending, which holds
over 80% share of the consumer durables installment finance segment, has tied up with
another Bajaj Finserv Group company, Bajaj Allianz General Insurance Company Ltd., to
offer Extended Warranty for consumer durable appliances on Group Platform basis The
offer is available for the customers who are already availing the 0% finance services from
Bajaj Finserv Lending. The 12 month policy period of the Extended Warranty plan will
commence after the expiry of manufacturer's product warranty period.
Bajaj Finserv Lending plans to leverage on its established network of 0% interest Consumer
Durable Loans with presence across over 80 cities.
Extended Warranty plan from Bajaj Finserv Lending would cover the range of consumer
durable appliances available through the 0% interest consumer durable finance from the
company. The Sum Insured under the plan shall be equal to the invoice price of the
particular consumer durable appliance and the maximum claim amount payable under it
would be the Sum Insured. The claim process is simple and hassle free. The consumer needs
to simply call the dedicated Toll Free Call Centre Number shared in his Extended Warranty

Role of Bajaj Finance in consumer durable sales XXVI
Fortune Institute of International Business Page XXVI
kit, quote his policy number and provide details of his loss. Once the call is logged in, the
Customer Service Executive will direct the consumer to the nearest authorized service
center of the manufacturer. The Extended Warranty plan will then sponsor the cost of repair
or replacement of the particular appliance for an admissible claim.
Bajaj Finserv Lending launches ‘Retailer Finance’ – exclusive finance option for its retail
partners in the consumer durable industry
 Pre-approved credit line for the partners
 No collaterals required to avail this option
 will benefit more than 3000 partners across India
Pune, March 20, 2013: Bajaj Finserv Lending, one of the most diversified non-banks in the
country, has introduced exclusive finance option for its retail partners in the consumer
durable industry. A leader in 0% interest consumer finance with 14% share in the market,
the company launched the innovative Retailer Finance, which will help its partners avail
finance for acquiring inventory from the manufacturers.
The unique attribute about Retailer Finance is the fact that Bajaj Finserv Lending is
leveraging on its trust relationship with its partners for disbursing the loans. The retailers are
assigned a pre-approved credit line which they can use any time they want. Thus unlike
other finance options, they don’t have to undergo the cumbersome due-diligence process and
get quick finance without submitting any collaterals or documentation. This is the first time
ever that a non-collateral based financing option has been introduced for the retailers.
Retailer Finance will be available for retailers of all sizes, having a minimum of 1 year
relationship with Bajaj Finserv Lending. Through this offering, the company is targeting to
disburse approximate Rs. 250 crore monthly with a target of Rs.1500 for the first year. The
minimum finance available will be to Rs. 5 lacs up to a maximum of Rs. 15 crore. With a
transparent and easy process of enrolment and documentation, it also has a completely
online mode of disbursement and fulfillment.

Role of Bajaj Finance in consumer durable sales XXVII
Fortune Institute of International Business Page XXVII
4. PROJECT OBJECTIVES
1. This project will primarily focus on Modus Operandi of Bajaj Finance for Finance of
Consumer Durable products. This will require a fist hand experience in
understanding end to end process flow for loans processing to payment disbursement
and coming with Suggestions to make experience more Delightful for customers and
channel partners.
2. Focus on way of operations at 2 types of Outlets: Owner Driven and LFR’s and Bajaj
Finance’s SWOT analysis at both these outlets. Competitors working (CC or Capital
First), Reliance Capital Ltd viz a viz BFL and stress areas will have to focused along
with.

Role of Bajaj Finance in consumer durable sales XXVIII
Fortune Institute of International Business Page XXVIII
5. PROJECT METHODOLOGY ADOPTED
5.1. METHODOLOGY:
The study is made on the basis of secondary data. The annual report of the firms was a great
help in collection of necessary information.
Methodology is a systematic procedure of collecting information in order to analyze and
verify a phenomenon. The collection of information is done through two principal sources.
5.1.1. Primary Data:
It is the information collected directly from sales finance department for further studies, it
was mainly through interviews with concerned officers and staff, either individually or
collectively, sum of the information has been verified or supplemented with personal
observation and real timework experience.
5.1.2. Secondary Data:
Secondary data is the published data. It is already available for using and its saves time. The
mail source of secondary data are published market surveys, government publications
advertising research report and internal source such as sales, sales records orders, customers
complaints and other business record etc. the study has also depended on secondary data to
little extent, which is collected through internal source.
5.2. RESEARCH DESIGN:
A research design is the arrangement of conditions for collection and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in procedure
Research Design is the conceptual structure within which research is conducted. It is the
overall operational pattern or framework of the project that stipulates what information is to
be collected from which sources by which procedure.

Role of Bajaj Finance in consumer durable sales XXIX
Fortune Institute of International Business Page XXIX
Figure 5.1: Categories of Research Design
5.2.1. Exploratory Research: To gain familiarity with a phenomenon or to achieve new
insight into it. Studies with this object in view are termed as exploratory or formularize
research studies.
5.2.2. Descriptive Research: To portray accurately the characteristics of particular
individual, situation of a group. Studies with this object are view is known as descriptive
research studies.
5.2.3. Empirical Research: To gain knowledge by means of direct and indirect
observation or experience. Empirical evidence can be analyzed quantitatively or
qualitatively.
RESEARCH
DESIGN
EXPLORATORY
RESEARCH
DESIGN
DESCRIPTIVE
AND
DAIGNOSTIC
EMPIRICAL
RESEARCH

Role of Bajaj Finance in consumer durable sales XXX
Fortune Institute of International Business Page XXX
Considering the importance of decision areas, it was decided to undertake an exploratory
survey. Exploratory research is concerned with discovering the general nature of the
problem and the variables that relates to it.
When I was making this project the prime thing was to study Balance sheet and P & L
accounts of different firms. I have done that by collecting the required information through
firm’s manual and data available on internet. During the SIP, the Research Method which I
applied was Exploratory and Descriptive research which help me to gain more insight of the
operation which is done during the Consumer Durable goods financing. During the project I
got to know how Bajaj Finserv Lending approves a Loan to various Customers on the basis
of different Document available with them. I explored different tools and techniques to
convert a Credit Card & Cash buyer into Finance buyer, and also how to build a good
relationship with the sales person as they are main key to get customer and not to let the
competitors win. In Finance sector there is always a win-lose situation exist but during the
peak season I observed that win-win situation comes into picture but only for a short
duration.
I also learned how the sales executive use their instinct to judge a customer is genuine or not
but this not always help, sometime a genuine customer becomes a fraud customer which
directly harm the Sales Executive incentive status as there is company policy to stop the
incentive whenever there is fraud case pop up from the concern SE.

Role of Bajaj Finance in consumer durable sales XXXI
Fortune Institute of International Business Page XXXI
6. DATA COLLECTION
6.1. DESCRIPTION OF THE WORK PERFORMED:
Table 6.1: Industry Analysis with Bajaj Finserv & Reliance Capital (Marketing
&Selling Expenses)
0
0.01
0.02
0.03
0.04
0.05
0.06
0.07
0.08
MAR'08 MAR'09 MAR'10 MAR'11 MAR'12
Marketing&Selling
FY 2008-12
INDUSTRY
BAJAJ FINSERV
RELIANCE
CAPITAL
MAR’08 MAR’09 MAR’10 MAR’11 MAR’12
INDUSTRY 0.07 0.05 0.06 0.07 0.06
BAJAJ
FINSERV
0.01 0.05 0.03 0.04 0.04
Reliance
Capital
0.05 0.02 0.02 0.01 0.01

Role of Bajaj Finance in consumer durable sales XXXII
Fortune Institute of International Business Page XXXII
Figure 6.1: Marketing & Selling Ratio
From the above graph (Figure 6.1), it can be clearly seen that:
 There has been decrease in the ratio of marketing and selling expenses viz a viz sales
in industry with a fall of 14% from FY 08-09 to 11-12, which is good for the
industry as it shows that there has been shift in expenses from high to low.
 On the other hand when we compare the industry trend with Bajaj and Reliance we
can observe that Bajaj is not able to control its expenses throughout the years with an
increase of 30%. Whereas Reliance shows a remarkable result as it passes industry
trend in cutting down the expenses with decrease of 80%, and it may have happened
due to increase in sales and control of expenses.
Table 6.2: Employees v/s Sales Analysis of Bajaj Finserv Lending
INDUSTRY 0.08 0.06 0.08 0.07 0.26
BAJAJ FINSERV 0.56 0.82 0.99 0.10 0.08
RELIANCE
CAPTIAL
0.07 0.05 0.05 0.05 0.04
 Bajaj and Reliance have the same trend in FY 2011 and 2012 but industry has got a
different trend in the same period.
 It has been observed from the graph (Figure 6.2) that Reliance capital is very closely
following the Industry trend up to FY’11 whereas Bajaj Finserv has gone too far
from the Industry trend because of inconsistency in their sales.

Role of Bajaj Finance in consumer durable sales XXXIII
Fortune Institute of International Business Page XXXIII
Figure 6.2: Employees v/s Sales Ratio
6.2. FINANCIAL ANALYSIS USING RATIOS:
Table 6.3: Current Ratio Analysis of Bajaj Finserv with Industry & Its Peer’s Group
0
0.2
0.4
0.6
0.8
1
1.2
Employee/SalesRatio
FY 2008-12
INDUSTRY
BAJAJ FINSERV
RELIANCE CAPITAL
INDUSTRY 5.61 1.95 6.76 9.59 1.33
BAJAJ FINSERV 1.59 1.17 0.79 0.15 0.43
CAPITAL FIRST 2.24 1.90 1.28 1.72 1.82
RELIANCE CAPITAL 10.18 1.57 2.48 6.50 1.92

Role of Bajaj Finance in consumer durable sales XXXIV
Fortune Institute of International Business Page XXXIV
Figure 6.3: Current Ratio
 As per the rule of thumb says that the current ratio should be at least “2” that is the
current assets should meet current liabilities at least twice. But here we are not
applying this rule; here we are taking industry inputs as a standard for comparison.
 From the graph (Figure 6.3), we can conclude that Industry has been very
conservative with regard to maintaining its current ratio with a decrease of 76%.
Reliance capital as usual is close to industry trend. Here Bajaj Finserv has also
shown decrease in its current ratio which reflects that it’s also following industry
trend with a decline of 73%.
0
2
4
6
8
10
12
CurrentRatio
FY 2008-12
INDUSTRY
BAJAJ FINSERV
CAPITAL FIRST
RELIANCE CAPITAL

Role of Bajaj Finance in consumer durable sales XXXV
Fortune Institute of International Business Page XXXV
6.3. QUICK RATIO:
Table 6.4: Quick Ratio of Industry, Bajaj & Peer Group
0
5
10
15
20
25
30
QuickRatio
FY 2008-12
INDUSTRY
BAJAJ FINSERV
CAPITAL FIRST
RELIANCE CAPITAL
INDUSTRY 5.74 11.08 13.7 16.87 3.13
BAJAJ FINSERV 1.21 0.91 0.72 0.15 0.40
CAPITAL FIRST 3.28 9.30 21.69 12.09 5.48
RELIANCE
CAPITAL
10.14 26.31 7.43 13.81 3.36

Role of Bajaj Finance in consumer durable sales XXXVI
Fortune Institute of International Business Page XXXVI
Figure 6.4: Quick Ratio (Bajaj Finserv)
 As the quick ratio represents the ability of the firm to cover its current liabilities
without considering its inventories and it also provides us with an insight much clear
and deeper than the current ratio.
 It shows the performance of quick assets in compensating the current liabilities.
From the graph (Figure 6.4), it can been observed that Industry shows decrease in
quick ratio by 45% along with Bajaj Finserv with decrease of 83% a little higher than
Industry decline trend. From 2010-12 Reliance capital has been very close to
Industry. Whereas Capital first shows increase in quick ratio. .
6.4. EARNINGS PER SHARE (EPS):
Table 6.5: EPS
 As we can observe from the graph (Figure 6.5) that firms have shown a mix trend in
their respective earning per share ratio. This means that the firms not constantly but
have earning power in the industry and they contribute positively to the earnings of
the whole industry as well as to the return to their respective shareholders.
INDUSTRY 45.2 23.44 15.46 15.95 18.39
BAJAJ FINSERV 2.86 2.35 13.02 5.29 3.20
CAPITAL FIRST 1.41 1.47 2.73 8.53 14.29

Role of Bajaj Finance in consumer durable sales
XXXVI
I
Fortune Institute of International Business Page XXXVII
 Industry has shown a decrease of 59% in its EPS whereas Bajaj Finserv has
improved by 9% because of controlled expenses in totality and we can see that
because of following the same trend as of Industry by Reliance capital it also decline
in its EPS whereas Capital first increased.
Figure 6.5: EPS
6.5. MANAGEMENT EFFICIENCY RATIO:
Table 6.6: Debtors Turnover Ratio
0
5
10
15
20
25
30
35
40
45
50
EarningsperShare
FY 2008-12
INDUSTRY
BAJAJ FINSERV
CAPITAL FIRST
RELIANCE CAPITAL

Role of Bajaj Finance in consumer durable sales
XXXVI
II
Fortune Institute of International Business Page XXXVIII
INDUSTRY 113.55 58.28 103.73 150.26 42.94
BAJAJ FINSERV 30.23 38.76 68.33 112.50 83.81
CAPITAL FIRST 9.03 11.17 9.09 48.82 25.69
Figure 6.6: Debtor Turnover Ratio
 Debtor turnover ratio basically represents average collection period of a firm from its
debtors.
0
20
40
60
80
100
120
140
160
DebtorTurnoverRatio
FY 2008-12
INDUSTRY
BAJAJ FINSERV
CAPITAL FIRST
RELIANCE CAPITAL

Role of Bajaj Finance in consumer durable sales XXXIX
Fortune Institute of International Business Page XXXIX
 The constant increase in DTR of Bajaj Finserv help him to remain at top at the end of
FY’12, but when we analyze the Industry trend it shows a decline by 61% whereas
Bajaj Finserv DTR has increased by 170% . Whereas Reliance capital and Capital
first has been very close to Industry trend in the FY’12 (See Figure 6.6).
6.6. ASSETS TURNOVER RATIO:
Table 6.7: Assets Turnover Ratio
INDUSTRY 5.07 1.23 2.48 2.58 0.39
BAJAJ FINSERV 0.33 0.07 0.08 0.08 0.10
CAPITAL FIRST 15.20 1.30 5.36 3.04 1.34

Role of Bajaj Finance in consumer durable sales XL
Fortune Institute of International Business Page XL
Figure 6.7: Assets Turnover Ratio
 This ratio measures the efficiency and profit earning capacity of the firm. The higher
the ratio, the grater is the intensive utilization of fixed assets. Lower ratio means
underutilization of fixed asset and excessive investment in these assets.
 As we can see from the graph (Figure 6.7), none of the company’s is able to satisfy
the criteria of Assets Turnover Ratio, which means that none of them has been able
to generate profit from their ATR.
6.7. DEBT COVERAGE RATIO:
Table 6.8: Total Debt to Owner Fund
0
2
4
6
8
10
12
14
16
AssestTurnoverRatio
FY 2008-12
INDUSTRY
BAJAJ FINSERV
CAPITAL FIRST
RELIANCE
CAPITAL

Role of Bajaj Finance in consumer durable sales XLI
Fortune Institute of International Business Page XLI
 Total debt to owner fund represents the total debt of a firm upon the owner funds
employed. A normal situation is said to be when it is equal to 1.
 From the graph given in Figure 6.8, we can analyse that in FY’12, industry shows a
ratio of 2.29 (debt to owner fund) which is double the amount of owner fund. But
when we see the figures of Bajaj over its peer and industry, it’s been observed that
Bajaj is playing conservatively due to which its debt to owner fund ratio is pretty
low, which shows Bajaj doesn’t want to take risk and it has no significant better plan
compare to other company and not aggressively moving forward.
Figure 6.8: Total Debt to Owner Fund
0
1
2
3
4
5
6
TotalDebtToOwnerFund
FY 2008-12
INDUSTRY
BAJAJ FINSERV
CAPITAL FIRST
RELIANCE
CAPITAL
INDUSTRY 2.11 2.38 2.32 3.06 2.29
BAJAJ FINSERV 0.26 0.26 0.26 0.28 0.32
CAPITAL FIRST 0.14 0.64 0.59 3.76 4.87
RELIANCE
CAPITAL
1.55 2.02 1.72 2.63 1.30

Role of Bajaj Finance in consumer durable sales XLII
Fortune Institute of International Business Page XLII
6.8. INVESTMENT VALUATION RATIO:
Table 6.9: Dividend per Share
INDUSTRY 4.3 4.5 4.7 5.05 7.1
BAJAJ FINSERV 1.00 1.00 1.00 1.25 1.50
CAPITAL FIRST 0.00 0.00 1.00 1.50 1.50
RELIANCE
CAPITAL
5.50 6.50 6.50 6.50 7.50
 From the above chart (Table 6.9), we can observe that the firms like Bajaj and capital
have shown a constant trend in their DPS. This means that they are able to keep their
shareholders satisfied.
Figure 6.9: Dividend per Share
0
1
2
3
4
5
6
7
8
DividendPerShare
FY 2008-12
INDUSTRY
BAJAJ FINSERV
CAPITAL FIRST
RELIANCE CAPITAL

Role of Bajaj Finance in consumer durable sales XLIII
Fortune Institute of International Business Page XLIII
As the graph given in Figure 6.9 state the outstanding result of Reliance Capital, Bajaj still
lacking far behind it which can proved to be a very big problem for him as well as for
Capital first as Industry trend is very high so they have to seriously think about paying
higher DPS to their shareholders
6.9. PRICE EARNING RATIO (PE RATIO):
Table 6.10: Price Earnings Ratio (PE RATIO)
INDUSTRY 26.11 58.39 32.96 39.66 60.20
BAJAJ FINSRV 51.83 143.97 40.51 118.95 251.03
RELAINCE CAPITAL 6.73 20.20 34.79 42.86 16.77
CAPITAL FIRST 68.29 118.84 54.15 14.93 9.74
0
50
100
150
200
250
300
PriceEarningRatio
FY 2008-12
INDUSTRY
BAJAJ FINSERV
RELIANCE CAPITAL
CAPITAL FIRST

Role of Bajaj Finance in consumer durable sales XLIV
Fortune Institute of International Business Page XLIV
Figure 6.10: Price Earnings Ratio
From the graph in Figure 6.10, we can observe that Bajaj Finserv is doing really well in term
of P/E ratio than Industry and its peer group and has been a leader in stock market. That’s
why people are ready to pay more for Bajaj Finserv, as Bajaj Finserv is very old player than
its peer so it’s enjoying its brand loyalty and also due to its Dividend payout ratio is higher
and close to the industry.
6.10. DIVIDEND PAYOUT RATIO (DPR):
Table 6.11: Dividend Payout Ratio in % (DPR)
INDUSTRY 14.68 15.02 32.30 27.82 35.27
BAJAJ FINSERV 22.77 23.80 30.15 8.19 27.77
CAPITAL FIRST 0.00 0.00 41.74 18.90 11.86
0
10
20
30
40
50
60
70
DividendPayoutRatio
FY 2008-12
INDUSTRY
BAJAJ FINSERV
RELIANCE CAPITAL
CAPITAL FIRST

Role of Bajaj Finance in consumer durable sales XLV
Fortune Institute of International Business Page XLV
Figure 6.11: Dividend Payout Ratio
In the FY’12 we can see in Figure 6.11 that Bajaj Finserv is very close to the Industry trend,
whereas Reliance capital as usual more close to the Industry and Capital first after a jump in
FY’10, still lags behind. It shows that Bajaj Finserv as well as Reliance capital, both are able
to give a good percentage of profit shares to their investors whereas capital first has to take
this situation seriously and come up with a better pay-out ratio.
6.11. PROCESS ADOPTED:
6.11.1. Documentation:
1. ID Proof- Driving License, PAN card, Passport, Ration Card, Voter ID, etc.
2. Address Proof- Needed to be permanent address, if not, then salaried person can
give letterhead of his/her company’s HR manager (only Limited companies).
3. Cancelled Cheque- One cancelled Cheque which is checked on tracker, Cheque
number needed to be found out in tracker.

Role of Bajaj Finance in consumer durable sales XLVI
Fortune Institute of International Business Page XLVI
Unique Customer Case ID is generated
Loan is approved from company side
Executive have to complete the
Application form along with ECS
Mandate Form and Loan Term Sheet and
take the signature of customer
Customer is pitched
finance
Custom
er
Agreed
Tell them about the benefits
of finance at 0% that is given
in easy installments
Ask for customer to give some
documents such as ID-proof,
Address proof and a signed
cancelled Cheque
Customer
have credit
card
Application form is filled
after verification of ID
Customer details is
entered in SSP
Form is
accepted
Yes
No
No
Yes
Check for another segment under which customer
is lying by seeing Gov./employee card, RC
Surrogate, Existing customer, CIBIL, salaried,
debit card or instant customer
Yes
No
START

Role of Bajaj Finance in consumer durable sales XLVII
Fortune Institute of International Business Page XLVII
Figure 6.12: Flow Chart of the Application Process, To Loan Approval to File
Documentation and File Send
Loan is approved from company side
Invoice and Disbursal Memo is also
attached with other documents on the
file
File is then couriered to the main
office, Pitampura branch
File is again checked and then it is
send to Head office, Pune Branch
Stop
If there is any
case of fraud
is found
No
Yes

Role of Bajaj Finance in consumer durable sales XLVIII
Fortune Institute of International Business Page XLVIII
6.12. RECOMMENDATIONS PROPOSED FOR EACH STAGE:
There are several recommendations:
1. 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.
2. Every mega store required minimum of 3 executives, with 3 separate systems so that
customer don’t have to wait for some other customer to finish their procedure.
3. Some customers were facing problem that they are not getting EMI card even after 3
installments, I think that should be checked because it will tamper the goodwill of
the company.
4. 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 in them.
6.13. DOCUMENTS REQUIRED FOR THE LOAN APPROVAL:
Documents Required for Loan Approval are:
1. Residential proof
2. ID Proof
3. Cancelled Cheque
4. Credit Card
5. Office ID (For Govt. Employee)
6. Visiting Card (For Govt. Employee)
7. Salary Slip Latest (For Govt. Employee and salaried)
8. KYC Documents (For RC Surrogates)
9. RC Copy (For RC Surrogates)

Role of Bajaj Finance in consumer durable sales XLIX
Fortune Institute of International Business Page XLIX
10. Last 3 months Bank Statement (Salaried)
11. Phone Bill, latest , original and delivered by courier (Instant)
6.14. SURROGATES REQUIREMENTS FOR LOAN APPROVAL:
a. WOW
2.1 Credit Card
Silver – 25k
Gold – 50k
Platinum, Titanium, Visa Signature, Diner, American Express – 100k-125k
2.2 Listed Company (Government employee and listed company)
Junior level – 25k
Middle level – 50k
Senior level – 100k
2.3 RC Surrogate (4 Wheeler Private use)
Lower – 30k
Middle – 50k
Upper – 100k
2.5 Existing Customer – 50k
2.6 CIBIL Score
< 700 – Rejected
>700 but < 800 – 50k
> 800 – 100k
2.7 Salaried
15, 000 to 24, 999 – 25k
25, 000 to 49, 999 – 50k
Above 50, 000 – 50k
2.11 Instant – 35k
2.21 Debit Card
Normal – 15k
Salaried – 35k
2.22 EMI Card – Upto 1 lakhs
b. B. WOW Lite
3.1 – 35k
3.2 – 35k
3.3 – 35k
3.5 – 35k
3.6 – 35k
3.7 – 35k

Role of Bajaj Finance in consumer durable sales L
Fortune Institute of International Business Page L
3.11 – 35k
3.21 – 15k
3.14 – 35k
3.22 – 35k
c. C. WOW Extension
5.1 – 75k
5.2 – 75k
5.3 – 35k
5.5 – 50k
5.6 – 75k
5.7 – 75k
5.11 – 35k
5.14 – 75k
5.21 – 15k
5.22 – 75k

Role of Bajaj Finance in consumer durable sales LI
Fortune Institute of International Business Page LI
6.15. SWOT ANALYSIS OF BAJAJ FINSERV LIMITED- AT FLR & OWNER
DRIVEN STORES:
6.15.1. Strengths
Figure 6.13: Strengths of Bajaj Finserv Limited
6.15.2. Weaknesses

Role of Bajaj Finance in consumer durable sales LII
Fortune Institute of International Business Page LII
Figure 6.14: Weakness of Bajaj Finserv Limited
6.15.3. Opportunities
Figure 6.15: Opportunities in Bajaj Finserv Limited
6.15.4. Threats

Role of Bajaj Finance in consumer durable sales LIII
Fortune Institute of International Business Page LIII
Figure 6.16: Threats to Bajaj Finserv Limited
6.16. LEARNING:
6.16.1. Dealing with Customers:
I got to know about how to deal with customers, how to offer them different schemes and
how to handle their queries effectively.
6.16.2. Pitching Customers towards Various Other Products:
Other products include extended warranty, EMI card; Health Risk cover, etc. are being
provided by Bajaj Finserv. We got to know how to approach customers and how to pitch
them accordingly.
6.16.3. Process of Granting Loan:
I. Documentation- Documentation like Credit card, driving license, PAN card, etc. is
required to provide loan to the customers.
II. Various requirements- As mentioned in surrogates various slabs are there according
to which customers are provided loan.

Role of Bajaj Finance in consumer durable sales LIV
Fortune Institute of International Business Page LIV

Role of Bajaj Finance in consumer durable sales LV
Fortune Institute of International Business Page LV

Role of Bajaj Finance in consumer durable sales LVI
Fortune Institute of International Business Page LVI

Role of Bajaj Finance in consumer durable sales LVII
Fortune Institute of International Business Page LVII

Role of Bajaj Finance in consumer durable sales LVIII
Fortune Institute of International Business Page LVIII

Role of Bajaj Finance in consumer durable sales LIX
Fortune Institute of International Business Page LIX

Role of Bajaj Finance in consumer durable sales LX
Fortune Institute of International Business Page LX

Role of Bajaj Finance in consumer durable sales LXI
Fortune Institute of International Business Page LXI

Role of Bajaj Finance in consumer durable sales LXII
Fortune Institute of International Business Page LXII

Role of Bajaj Finance in consumer durable sales LXIII
Fortune Institute of International Business Page LXIII

Role of Bajaj Finance in consumer durable sales LXIV
Fortune Institute of International Business Page LXIV

Role of Bajaj Finance in consumer durable sales LXV
Fortune Institute of International Business Page LXV
7. FINDINGS
7.1. Advantages of BFL scheme over its competitors:
As there are some disadvantages in going through BFL, but there are some advantages as
well over its competitors.
1. BFL provides loan on consumer durable products at 0%, only a nominal amount of
file charge is taken from the customers. So any customer can take this scheme,
therefore they don’t have to pay the complete amount and also they can enjoy
interest on that amount.
2. While paying through credit card, that much amount is blocked from the card. As
there is monthly limit in each card, so it is wise to go for BFL
3. If a customer uses credit card on payment, and doesn’t able to maintain the minimum
balance on the next month, them he has to pay fine on the complete amount, whereas
BFL customers don’t have to pay fine on the whole amount if they unable to pay
next time. Fine is being charged on the next month installment only.
4. Credit card is not given to every customer, so those customers who can’t afford
credit card can definitely go for BFL.
5. BFL provided loan on many type of surrogates, not all company provides loan on
these many surrogates.
6. If a company is taking finance from BFL then he will get easily insurance policy
from Bajaj Alliance without any verification on insurance part.
7. Flexible EMI scheme in many products are available. BFL provides many schemes
such as 12/4, 10/2, 18/6, 24/6 etc. Customer can choose any EMI option according to
their paying capability.

Role of Bajaj Finance in consumer durable sales LXVI
Fortune Institute of International Business Page LXVI
8. From the above ratios we can find that instead of not performing in several areas
Bajaj still got a good market price, this can be because of being an old player in the
market with huge brand loyalty.
9. It has also been observed that Bajaj is showing more conservative behavior by not
taking loan instead cheaper interest rate and still going for owner funds, this will not
help them in tapping new markets.
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.

Role of Bajaj Finance in consumer durable sales LXVII
Fortune Institute of International Business Page LXVII
8. RECOMMENDATIONS
1. Filling up of questionnaire from customer is very hectic from customer point of
view. The questionnaire should be attractive so that it wouldn’t affect the sales.
2. Unawareness of customer about 0% finance scheme. Therefore, Bajaj should make
its customers aware about the new schemes.
3. Customer thinking that Bajaj will take some hidden charges from them, if they take
loan at 0% from Bajaj. This can be possible by removing wrong myth in the minds of
the customers. Therefore, Bajaj should promote them as a good brand.
4. Customers don’t carry all the required documents all the time and some of them
don’t want to come again. This happens mainly due to lack of proper information.
5. Customer executives have to sell Bajaj Allianz insurance along with the finance
scheme. So they focus mainly on those customers who are interested in taking
insurance plan.
6. Bajaj should work on its HR part as I found it bit demotivating for the employees
when they don’t receive their incentive when any file get blocked, they have to work
out any other way to deal with these situations.
7. The quality of hiring of support staff is not up to the mark as they fail to serve the
customer in absence of SE.
8. More scheme plan should be incorporated for non-Credit card user as they are more
in number and are more prospecting customer.
9. Bajaj Finserv initially have the system of swiping of EMI card but due to some
difficulty they stopped it, I think Bajaj should work upon this as this can save more
time for customer as well as for SE and he can serve more non-EMI card user and
convert them into EMI card holder.

Role of Bajaj Finance in consumer durable sales LXVIII
Fortune Institute of International Business Page LXVIII
REFERENCES
 Bajaj Finserv Ltd. (2012). Retrieved June 14, 2013, from The Economic Times:
http://economictimes.indiatimes.com/bajaj-finserv-ltd/stocks/companyid-21426.cms
 Board Members. (2012). Retrieved June 18, 2013, from Capital First:
http://www.capfirst.com/board-members
 Board of Directors. (2012). Retrieved June 17, 2013, from Reliance Capital:
http://www.reliancecapital.co.in/cg_bod.html
 Board of Directors. (2012). Retrieved June 8, 2013, from Bajaj Finserv:
http://www.bajajfinserv.in/au-boardofdirectors.asp
 Capital First. (2012). Retrieved June 19, 2013, from Moneycontrol:
http://www.moneycontrol.com/financials/capitalfirst/ratios/FCH
 Capital First Ltd. (2012). Retrieved June 21, 2013, from The Economic Times:
http://economictimes.indiatimes.com/future-capital-holdings-ltd/stocks/companyid-
19384.cms
 Company Facts- Bajaj Finserv. (2012). Retrieved June 7, 2013, from Moneycontrol:
http://www.moneycontrol.com/companyfacts/bajajfinserv/management/BF04#BF04
 Company History. (2012). Retrieved June 9, 2013, from Bajaj Finserv:
http://www.bajajfinserv.in/au-company-history.asp

Role of Bajaj Finance in consumer durable sales LXIX
Fortune Institute of International Business Page LXIX
 Market: Financial- Ratios. (2012). Retrieved June 16, 2013, from Moneycontrol:
http://www.moneycontrol.com/financials/bajajfinserv/ratios/BF04#BF04
 Muthoot Finance. (2012). Retrieved June 22, 2013, from Moneycontrol:
http://www.moneycontrol.com/financials/muthootfinance/ratios/MF10
 Muthoot Finsnce Ltd. (2012). Retrieved June 23, 2013, from The Economic
Times:http://economictimes.indiatimes.com/muthoot-finance-ltd/stocks/companyid-
33218.cms
 Organizational Structure. (2012). Retrieved June 9, 2013, from Bajaj Finserv:
http://www.bajajfinserv.in/au-boardofdirectors.asp
 Reliance Capital. (2012). Retrieved June 20, 2013, from Moneycontrol:
http://www.moneycontrol.com/financials/reliancecapital/ratios/RC
 Reliance Capital Ltd. (2012). Retrieved June 17, 2013, from The Economic
Times:http://economictimes.indiatimes.com/reliance-capital-ltd/stocks/companyid-
13189.cms
 Tata Investment Corporation. (2012). Retrieved June 13, 2013, from Moneycontrol:
http://www.moneycontrol.com/financials/tatainvestmentcorporation/ratios/TIC
 Tata Investment Corporation Ltd. (2012). Retrieved June 24, 2013, from The
EconomicTimes:http://economictimes.indiatimes.com/tata-investment-corporation-
ltd/stocks/companyid-13540.cms
 Bajaj Finserv Limited. (2008-09). 2008-09 Annual Report. Bajaj Finserv Limited
Online Database.

Role of Bajaj Finance in consumer durable sales LXX
Fortune Institute of International Business Page LXX
Online Database.
Online Databse.
 Bajaj Finserv Limited. (2011-12). 2011-12 Annual report. Bajaj Finserv Limited
Online Databse.
 Cholamandalam Investment and Finance Company Ltd. . (2009-10). 2009-10 Annual
Report. Cholamandalam Investment and Finance Online Databse.
Report. Cholamandalam Investment and Finance Online Database.
Report. Cholamandalam Investment and Finance Online Databse.
 Cholamandalam Investment and Finance Company Ltd. (2008-09). 2008-09 Annual
Report. Cholamandalam investment and Finance Online Databse.
 L&T Finance Ltd. (2008-09). 2008-09 Annual Report. L&T Finance Online
Database.
 L&T Finance Ltd. (2009-10). 2009-10 Annual report. L&T Finance Online database.
 L&T Finance Ltd. (2010-11). 2010-11 Annual Report. L&T Finance Online Databse.
 L&T Finance Ltd. (2011-12). 2011-12 Annual Report. L&T Finance Online Databse.
 Relaince Capital Ltd. (2010-11). 2010-11 Annual Report. Relaince Capital Ltd.
Online Database.

Role of Bajaj Finance in consumer durable sales LXXI
Fortune Institute of International Business Page LXXI
 Reliance Capital. (2011-12). 2011-12 Annual Report. Reliance Capital Online
Databse.
 Reliance Capital Ltd. (2008-09). 2008-09 Annual Report. Reliance Capital Ltd
Online Database.
 Reliance Capital Ltd. (2009-10). 2009-10 Annual Report. Rekiance Capital Ltd.
Online Database.
 Religare Enterprise Ltd. (2008-09). 2008-09 Annual Report. Religare Enterprise
Online Database.
Online Database.
Online Database.
Online Database.

Role of Bajaj Finance in driving consumer durable sales

Empfohlen

Empfohlen

Weitere ähnliche Inhalte

Was ist angesagt?

Was ist angesagt? (20)

Ähnlich wie Role of Bajaj Finance in driving consumer durable sales

Ähnlich wie Role of Bajaj Finance in driving consumer durable sales (20)

Mehr von Fortune Institute of intrenational Business

Mehr von Fortune Institute of intrenational Business (8)

Kürzlich hochgeladen

Kürzlich hochgeladen (20)

Role of Bajaj Finance in driving consumer durable sales