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A REPORT ON To Identify, Assess Processes And Tools Adopted By Fullerton For Loan Delivery And Customer Selection

By NAME: Sudeep Chauhan Enrollment No. 12BSP1263

FULLERTON INDIA CREDIT COMPANY LTD.

A REPORT ON
To Identify, Assess Processes And Tools Adopted By Fullerton For Loan Delivery And Customer Selection

By
NAME: Sudeep Chauhan ENROLMENT NUMBER: 12bsp1263

FULLERTON INDIA CREDIT COMPANY LTD. A report submitted in partial fulfilment of The requirements of PGPM Program of IBS BANGLORE

Distribution List: Dr. Amit Joshi (Faculty Guide) Mr. Anurag Agarwal (Company Guide)

Date of Submission: 16 June 2013


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CONTENT

PAGE NO.

1 ABSTRACT 2 INTODUCTION 3 COMPANY PROFILE 4 CUSTOMERS 5 ABOUT PROJECT 6 MY LEARNING 7 REFRENCES

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ABSTRACT
Fullerton India Credit Company ltd is Non-Banking Financial Company which deals in lending .The main role of company is to attract customers towards them and smoothing the process of lending for them so that customers become loyal customers .It is challenging job for a company to identify prospective customers .As there is financial criteria for judging the prospective customers. Observing the above issue as an important part for financing I tried to learn the skills for identify the prospective customers for personal loans and creating data records of interested customers by tele calling prospective customers visiting them and explaining the process for personal loan . I have also tried to understand the process done by a company at back hand to satisfy their customer.

INTRODUCTION As a part of curriculum the students of PGPM have to undergo Summer Internship Program (SIP). Wherein a student gets the knowledge about practical life, how the work is done in companies, how to get acquainted with working conditions and other many such things, etc.the main aim behind this program is that students get some experience with which he could get assistance while searching the job. This program is generally provided by a company and it lasts for at least two months. Students as per their specializations could apply for SIP and get the opportunity to work in a company, which the college suggests. As a management student I also have to undergo SIP. I got the opportunity to complete this program in FULLERTON INDIA for three months. Fullerton is one of the leading NBFC in India. First of the months was devoted to training. My training started with the session of information about the company and sales and what is the meaning of the concept , importance of sales and marketing was taught. The second part was about the practical knowledge about how to get appointment of customers and how to convince them to prefer Fullerton than other banks and NBFC . It is not just all about to convince the customer but to analyze prospective customer is eligible to get a loan from Fullerton India or not. This judgment is done by assessing necessary document such as banking statement, pay slip, address proof, pan card etc for salaried person and bank statement, address proof, pan card, balance sheet, ITR, P&L account statement etc for business loan. The amount of loan sanction is depending on these documents. In my project I have also come through the process of sanction of loan what are the tools used by Fullerton India for selection of customers and converting them to loyal customer

COMPANY PROFILE
Fullerton India is one of the N.B.F.C-M.F.I MFI is a non-deposit it launched commercial operations in January 2007.Itestablished itself as a financial firm with a network of over 354 branches across the country, serving over a million customers. N.B.F.C Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 1956 engaged in the business of loans and advances, acquisition of shares/stocks/bonds/debentures/securities issued by Government or local authority or other marketable securities of a like nature, leasing, hire-purchase, insurance business, chit business but does not include any institution whose principal business is that of agriculture activity, industrial activity, purchase or sale of any goods (other than securities) or providing any services and sale/purchase/construction of immovable property. A non-banking institution which is a company and has principal business of receiving deposits under any scheme or arrangement in one lump sum or in instalments by way of contributions or in any other manner, is also a non-banking financial company (Residuary non-banking company). Functions of N.B.F.C
NBFCs lend and make investments and hence their activities are akin to that of banks; however there are a few differences as given below: i. NBFC cannot accept demand deposits; ii. NBFCs do not form part of the payment and settlement system and cannot issue cheques drawn on itself; iii. Deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available to depositors of NBFCs, unlike in case of banks

Different Types Of N.B.F.C NBFCs are categorized a) in terms of the type of liabilities into Deposit and Non-Deposit accepting NBFCs, b) non deposit taking NBFCs by their size into systemically important and other non-deposit holding companies (NBFC-NDSI and NBFC-ND) and c) by the kind of activity they conduct. Within this broad categorization the different types of NBFCs are as follows: i. Asset Finance Company (AFC) : An AFC is a company which is a financial institution carrying on as its principal business the financing of physical assets supporting productive/economic activity, such as automobiles, tractors, lathe machines, generator sets, earth moving and material handling equipments, moving on own power and general purpose industrial machines. Principal business for this purpose is defined as aggregate of financing real/physical assets supporting economic activity and income arising therefrom is not less than 60% of its total assets and total income respectively.
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ii. iii.

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Investment Company (IC) : IC means any company which is a financial institution carrying on as its principal business the acquisition of securities, Loan Company (LC) : LC means any company which 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. Infrastructure Finance Company (IFC) : IFC is a non-banking finance company a) which deploys at least 75 per cent of its total assets in infrastructure loans, b) has a minimum Net Owned Funds of Rs. 300 crore, c) has a minimum credit rating of A or equivalent d) and a CRAR of 15%. Systemically Important Core Investment Company (CIC-ND-SI) : CIC-ND-SI is an NBFC carrying on the business of acquisition of shares and securities which satisfies the following conditions:a. it holds not less than 90% of its Total Assets in the form of investment in equity shares, preference shares, debt or loans in group companies; b. its investments in the equity shares (including instruments compulsorily convertible into equity shares within a period not exceeding 10 years from the date of issue) in group companies constitutes not less than 60% of its Total Assets; c. it does not trade in its investments in shares, debt or loans in group companies except through block sale for the purpose of dilution or disinvestment; d. it does not carry on any other financial activity referred to in Section 45I(c) and 45I(f) of the RBI act, 1934 except investment in bank deposits, money market instruments, government securities, loans to and investments in debt issuances of group companies or guarantees issued on behalf of group companies. e. Its asset size is Rs 100 crore or above and f. It accepts public funds Infrastructure Debt Fund: Non- Banking Financial Company (IDF-NBFC) : IDFNBFC is a company registered as NBFC to facilitate the flow of long term debt into infrastructure projects. IDF-NBFC raise resources through issue of Rupee or Dollar denominated bonds of minimum 5 year maturity. Only Infrastructure Finanace Companies (IFC) can sponsor IDF-NBFCs. Non-Banking Financial Company - Micro Finance Institution (NBFCMFI): NBFC-MFI is a non-deposit taking NBFC having not less than 85% of its assets in the nature of qualifying assets which satisfy the following criteria: a. loan disbursed by an NBFC-MFI to a borrower with a rural household annual income not exceeding Rs. 60,000 or urban and semi-urban household income not exceeding Rs. 1,20,000; b. loan amount does not exceed Rs. 35,000 in the first cycle and Rs. 50,000 in subsequent cycles; c. total indebtedness of the borrower does not exceed Rs. 50,000; d. tenure of the loan not to be less than 24 months for loan amount in excess of Rs. 15,000 with prepayment without penalty; e. loan to be extended without collateral; f. aggregate amount of loans, given for income generation, is not less than 75 per cent of the total loans given by the MFIs; g. loan is repayable on weekly, fortnightly or monthly instalments at the choice of the borrower

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Non-Banking Financial Company Factors (NBFC-Factors): NBFC-Factor is a non-deposit taking NBFC engaged in the principal business of factoring. The financial assets in the factoring business should constitute at least 75 percent of its total assets and its income derived from factoring business should not be less than 75 percent of its gross income.

It services include financing of small and medium enterprises for working capital and growth, loans for commercial vehicles and two -wheelers, home improvement loans, loans against property, personal loans, working capital loans for urban self-employed and loans for rural livelihood advancement and financing of various rural micro enterprises. It reach out to the market through more than 354 branches across 300 towns and cities and over 12500 villages providing financial so lutions to over a million customers at their doorstep. Fullerton India Credit Company Limited is a wholly owned subsidiary of Fullerton Financial Holdings Pte. Ltd., which in turn is a wholly owned subsidiary of Temasek Holdings, Singapore. Fullerton Financial Holdings invests in financial institutions in emerging markets with a focus on Business and Consumer banking. Corporate Governance Policy Corporate Governance is about commitment to values and about ethical business conduct. It is about how an organization is managed. This includes its corporate and other structures, its culture, policies and the manner in which it deals with various stakeholders. Corporate Governance is primarily the respo nsibility of the Board as a group. The Board performs its duties with the support of managerial staff. Accordingly, timely and accurate disclosure of information regarding the financial situation, performance, ownership and governance of the company is an important part of corporate governance. This improves public understanding of the structure, activities and policies of the organization. Consequently, the organisation is able to enhance the trust and confidence of the stakeholders.

Board of Directors The Board is responsible to exercise their business judgment to act in what they reasonably believe to be in the best interests of the Company and its shareholders. The Board of Directors along with its constituted Committees provide direction a nd guidance to the Companys Leadership Team and further direct, supervise as well as review the performance of the Company. Board Member GAN CHEE YEN Chairman SHANTANU MITRA CEO and Managing Director RAJEEV KAKAR Non-Executive Director CYNTHIA LEE Non-Executive Director WILSON CHIA Non-Executive Director ALAN THOMPSON Non-Executive Director

CUSTOMER
Fullerton India Credit Company Limited is non -banking financial company which deals mainly in lending. So it has variou s sets of customer for various type of loan formats provided by them. (i) Personal Loan All those who have needs and aspirations that remains unfulfilled due to the gap that exists between dreams and reality. And this is where a Fullerton India Personal Loan can help in making a difference in one life. No matter what financial needs are - unexpected expenses, a medical exigency, school or college admission, wedding in the family, home improvement or that long awaited vacation; whatever the occasion, our range of Personal Loans can help them. (ii) Business Loan Fullerton India helps micro and small enterprises grow and capitalize on business opportunities in an expanding economy. Their Business Loans are designed to cater to a wide variety of business needs from working capital for stocks and manufacturing to loans for capital expenses. They understand business requirements and customizing financial solutions that suits customer needs.

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(iii) Loans Against Property A Loan against Property from Fullerton India is an economical and affordable way to bridge any financial need of customers, whether it is business expansion or personal requirements such as education, marriage of children, family function, foreign travel, medical expenses, buying high cost consumer durables or even refurnishing and renovation of home. (iv) Home Loan Dream home is one of the most important decisions of ones life and equally important of choice of the finance company which can honestly guide and assist you throughout the home buying proces s. A company which can assure expertise, transparency, commitment, best -in-class services, full-fledged domain knowledge and simplified loan procedures till the complete repayment of the loan will simplify customer home buying experience. (v) Two-Wheeler Loan Owning a two-wheeler is the first step towards improving your standard of living. Commuting to work or using it in your business or travelling to someplace everything becomes easy with own two -wheeler. Those who wont able or not interested to buy it th ey can enjoy the financial services of Fullerton India. Fullerton India can help their customers by easing the process of loan and can provide loans at the door step of customers which make it different from others.

Rural housing Finance


Rural households aspiring for a better quality home or wanting to construct a new home are often short of financial resources to fulfill their aspiration. Fullerton India Gramshakti offers loans to individuals for purchase, construction, repairs and renova tion of dwelling units. We also offer loans to the self-employed segment where formal income proofs may not be available. The income of such applicants is appraised based on field investigation and surrogate income proof. We offer Housing Loans to customer s in Rural India for amounts ranging from `50,000 to `10 Lakhs with tenor extending till 7 years. The unique selling proposition of Fullerton India's rural housing loans is simplified documentation, door-step service and flexible assessment process. We also offer Loans against Property to our customers to help them meet their working capital and business expansion needs. The loan amounts range from ` 50,000 to ` 10 Lakhs for a maximum tenor of 5 years.

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About Project
To Identify, Assess Processes And Tools Adopted By Fullerton For Loan Delivery And Customer Selection

Personal loan A personal loan is a short-term loan to assist you with your finances. This payday loan is secured against a future pay check. These loans have become quite popular today, and now this is the main way to get financial assistance in the form of a cash advance. A personal loan is a type of debt which is made for personal, family, or household use, and which is neither a business loan nor a long-term mortgage loan. The lender loans money to the borrowers. The borrowers pay back this amount, usually but not always in regular instalments. This service is generally provided at a cost, which is referred to as interest on the debt. With a personal loan one can meet his financial requirements. Be it any ceremony in the family, a surprise gift or a grand vacation, personal loans provide a helping hand. The personal loan helps to take care of all kinds of expenses in a short time period. This type of loan usually covers travel expenses, holiday expenses, medical expenses, marriage expenses, honeymoon expenses or any other personal type expenses. Types of personal loans There are basically Two Types of Personal Loans. They are: 1. Secured Loan 2. Unsecured Loan Secured Loan: Wherein the loan involves the attachment of collateral say, your property or any fixed/movable asset- against the sum of money borrowed. You risk losing your home should you default on repayments. Unsecured Loan: Here the loan is not secured against the loan amount borrowed. But consequently the lender would be charging a higher rate of interest, taking into account the high risk involved in lending the sum. Here, failure to make regular payments would see the lender fall back on the credit agreement, and resort to legal claims to make good the loss incurred.

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Short Term Personal Loans Short Term Personal Loans can be got through banks and online financial companies, and a wide variety of other sources. With such a Short Term Personal Loan:

The rate of interest involved is usually high. This is because the period of repayment is usually for a short time. This type of short term funding is often utilized to help individuals who are in need of varying sums of money for a short period. Banks, while giving this type of short term personal loan, usually require collateral, before disbursing the same. Because of the negative and positive aspects of short term personal loans, it is recommended that the individual does his research thoroughly, before he applies for funding.

A personal loan can be further classified into a secured and an unsecured loan. The main difference between the two is that one is obtained with collateral and the other without the collateral. But the purpose of the loan remains the same that is to realise personal needs. As secured loan is obtained by pledging collateral such as a house, a car, property or anything of value, on failure of repayment of loan amount the borrower runs the risk of confiscation of the collateral. But at the same time a secured personal loan will come to a borrower at a low APR (Annual Percentage Rate) and a larger amount of loan will be sanctioned due to the collateral laid out to the lender in the form of security. Since the lender has some amount of security to claim back his loan amount he easily offers loan to the borrower. The better the value of collateral that is the equity the better the loan terms gets.
To identify the customers for personal loans and creating data records of interested customers by tele calling prospective customers visiting them and explaining the process for personal loan used by Fullerton India. For selection of prospective customer I have went to various places such as government schools because they are one of the safe customer to whom we can trust that they will turn out to be faithful customer and do pay their EMI on time.

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The eligibility criteria for personal loan differ from one bank to another. This is because the different lenders have different perceptions of risk. Also, the ability of different banks to keep track of the loan and recovery in case of defaults vary. For example, the eligibility criteria employed by public sector banks is more stringent than that followed by private sector banks. Nearly all banks divide the potential borrowers into either one of the below three categories:

Salaried individuals Self employed individuals Self employed professionals Salaried Individuals include employees of selected public and private limited companies, government employees including public sector undertakings, central, state, and local bodies. However, some banks exclude salaried employees of smaller companies by maintaining a list of approved companies. If your company is not in this list, it may be difficult for you to get a loan. The approved list varies from bank to bank. Some banks do provide loans to employees of companies that are not in the approved list, but at higher interest rate. Eligibility criteria for salaried employees are broadly along the following lines:

Minimum age of applicant: 25 years Maximum age of applicant at the time of loan maturity: 60 years Minimum Gross Monthly Income: Rs. 10000 p.m. Self Employed Individuals include self-employed businessmen. Broad eligibility criteria for self-employed employees:

Minimum age of applicant: 25 years Maximum age of applicant at the time of loan maturity: 65 years Minimum Annual Income: Rs. 100000 p.a. Self Employed Professionals include self-employed doctors (MBBS, MD, BDS, MDS) and chartered accountants. Broad eligibility criteria for self-employed employees:

Minimum age of applicant: 25 years Maximum age of applicant at the time of loan maturity: 65 years Minimum Annual Income: Rs. 100000 p.a. Age Criteria: Many banks prescribe a minimum age of 21 years and maximum age of 65 years for personal loans. But these criteria are not set in stone. If you prove your income earning capability, many banks are willing to overlook this factor.

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Residence: Lenders evaluate the number of years staying in the same residence, which can be rental or owned place. If you are staying as a paying guest, you find it difficult to get the loan. Some banks have set geographical limits - customers living beyond this point simply aren't eligible for the loan. Banks often internally term certain areas in a city as high-risk. These areas typically report high crime rates and lesser safety. If you happen to stay in such an area, you find it difficult to get a personal loan. Banks do not publicly admit to such classifications for many obvious pragmatic reasons. Tenure of work experience: If you are salaried/self-employed, banks take into account the number of years you have remained in service/profession. Repayment Capacity: This is the most important criteria for a personal loan. The lender evaluates your repayment capacity based on your income, savings, and debt obligations, other than household expenses. Based on this information the lender decides on the amount of loan that you are eligible, after considering your previous debts and obligations. The lender verifies income by scrutinising your salary/income statements, Form 16, and bank statements. The minimum income criterion for salaried individuals is generally between Rs 96000120000 per year and that of self-employed is Rs 60000-80000 per year. The lower income criteria for the self-employed is because banks reckon that a self-employed person may be earning more but shows a lower income for tax-saving purposes. Past obligations: The bank will do a thorough check on your past and present financial obligations that will include your other loans. Some of the parameters the bank checks are whether you have been a prudent borrower and that all your dues have been paid on time. They also check your credit card statements to see whether you pay your dues on time or you habitually exceed limits. This is to check on your willingness to repay the loan. Most banks have access to your past credit information through your credit report maintained by credit bureaus. Your clear past credit background is very important for banks to take a decision to sanction your loan. Place of work: The place where you work is very important. Your ability to get a loan as well as better interest rates depends on the strength of the company where you are employed. It is for this purpose that banks maintain lists of companies which they consider favourably and less favourably. This list plays an important role in your loan's interest rate. Since I was exposed to the market from starting of my internship I have done talk to 100s of persons from which about one fourth are eligible to get a loan from Fullerton India on basis of their salaries as well as according to age and registration of their firm s. from which Ill able to convince 6 prospective customers to take a loan from Fullerton India .till date I have create a revenue of Rs 4, 67,000 for the company for that I got an incentive of Rs 7,000.

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Tools Adopted By Fullerton India

BRANCH SCREENING

CIBIL REPORT

FINANCIAL INVESTIGATION

PROPOSAL

APPROVAL

PRESENTATION

SANCTION OF LOAN

CUSTOMER FEEDBACK

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Branch Screening After collecting all the required documents branch screening of documents is done by personal inspection of customer details and checking the documents are genuine. CIBIL Report A CIBIL credit report is a month on month record of an individuals loan related EMI or credit card payments. Loans can include home loans, credit cards, personal loans, automobile loans and overdraft facilities. Other information included in a credit report is as follows: Personal information related to an individual such as name, date of birth, address and identification numbers like PAN number, Passport number, Voters id and Telephone number Account information such as the type of loan taken (home, auto, personal, overdraft, etc), the size of the loan, the current balance outstanding, overdue amount (if any), number of days a payment is overdue (if there is an overdue amount) and so on. Information on the number of Enquiries made by loan providers on an individual. An Enquiry is created on your credit report every time the Credit Institution requests the credit bureau for your credit report. Financial Investigation FI is the gathering of information about the financial affairs of entities of interest, to understand their nature and capabilities, and predict their intentions. Generally the term applies in the context of law enforcement and related activities. There is a form of FI in which various sets of query is put so that financial capabilities of customer can be understand Proposal After all inquires a proposal is made for a customer in which amount of loan can be sanction, rate of interest, tenure of loan is included. Proposal is made with in a branch by credit manager such that it may satisfy the customer need as well as company norms. Approval A proposal is send to head office of Fullerton India which is in Mumbai along with required documents from where approval is given for the loan amount and rate interest. Approval is done on the basis of CIBIL score and report.

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Presentation After getting the approval from head office customer is being called to branch so that presentation about the deal in which amount of loan, tenure period, rate of interest and payment mode is explain to customer if customer agree to the proposal the deal is sign by him. Sanction Of loan Loan amount is given to customer within 3 days after signing a deal with him in the mean while checks is collected from him from which company can recover their EMI which is along with deal is send to head office Mumbai.

LIST OF TOP PERSONAL LOAN FINANCE COMPANIES IN INDIA

1. State Bank of India: SBI offers SBI Saral personal loan customized in a manner that helps an individual meet varied kinds of personal expenses. The interest rates at which these loans are offered are quite competitive with no hidden costs or administrative charges, no prepayment penalties. It also comes with easy repayment term. (` in crores) Particulars Net Profit Personal Loan Advances 31-03-08 6729 32168 31-03-09 9121 36557

Highlights of SBI Personal Loans ? Loan Scheme Loan Type Loan Amount Tenure Interest Rate Salaried Saral Personal Loan Term Loan Max Loan: 12 monthly income Min. 12 Yrs. Min. 16 % Min. 16 % times Self Employed Saral Personal Loan Term Loan the Max Loan: 12 monthly income Min. 12 Yrs. Max. 16 % Max. 16 % 2 days times the

Time to process 2 days Loan

2.AXIS Bank: Axis bank's personal loans are meant for salaried persons, self
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employed individuals and also professionals. The processing of the loan is simple with easy documentation and fast approval. (` in crores) Particulars Net Profit Personal Loan as a % of Retail Assets Retail Assets 31-03-08 1071 16% 13591.68 31-03-09 1815 12% 16051.78

Highlights on AXIS Bank Personal Loans ? Loan Scheme Loan Type Loan Amount Tenure Interest Rate Salaried Personal Power Term Loan Self Employed Personal Power Term Loan

The loan amount approved The loan amount approved depends on income and also other depends on income and also other eligibility criteria of applicants. eligibility criteria of applicants. Min. 12 Yrs. Min. 15 % Min. 15 % Min. 12 Yrs. Max. 23 % Max. 23 %

3.ICICI Bank: ICICI bank's personal loan comes at attractive interest rates along with 12-60 months repayment choices. The processing is fast. (` in bn) Particulars Profit After Tax (PAT) Personal Loans Total retail advances 10.7 31-03-08 41.58 Total retail advances % of retail advances 108.66 31-03-09 37.58 % of retail advances 144.13 9.9

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Highlights of ICICI Bank Personal Loans ? Loan Scheme Loan Type Loan Amount Tenure Interest Rate Time to Process Loan Salaried Personal Loan Term Loan Min. ` 50000 Min. ` 50000 Min. 12 Yrs. Min. 12 % Min. 14 % 3 days Self Employed Personal Loan Term Loan Max. ` 1500000 Max. ` 1500000 Min. 12 Yrs. Max. 22 % Max. 24 % 2 days

Fullerton India: personal loans are meant for salaried persons, self employed
individuals and also professionals. The processing of the loan is simple with easy documentation and fast approval.

Highlights of Fullerton India Personal Loans ? Loan Scheme Loan Type Loan Amount Tenure Interest Rate Salaried Saral Personal Loan Term Loan Self Employed Saral Personal Loan Term Loan

Max Loan: 60% times the Max Loan: 60% times the yearly income yearly income Min. 3 Yrs. Min. 18 % Min. 18 % Min. 3 Yrs. Max. 25 % Max. 25 % 2days

Time to process 2 days Loan

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My Learning
Due to our curriculum Im able grab the opportunity to work in a finance company which majorly deals in lending. Im able to get an opportunity to study the market of personal loan in haridwar and the internal process carried out by the company so that they may able check the capacity of customer to pay back.

Market Explore
Since Im working as an intern in Fullerton India Im allowed to work in a market and select a prospective customer for a company by telephonic calling and fixed a meeting with them and explain the process of lending to them. Im able to interact with 100s of prospective customers and out of which I had carried out the lending process of company for 10 of them. I had work from calling the prospective customer to collecting of documents to the feedback taken from customer after sanction of the loan.

Learning The Process Of Company


In the whole process I have came across through various process perform by a company after collecting the documents from customer we have to enter it in the login process of Fullerton in which all documents are verified at Mumbai after which the amount of lending is calculated according to company rules maximum amount of its package and also depend on banking of customer as well as on the basis of income tax return filed by them. CIBIL report of a customer is generated after collection of documents from customer. A CIBIL credit report is a month on month record of an individuals loan related EMI or credit card payments. Loans can include home loans, credit cards, personal loans, automobile loans and overdraft facilities. Other information included in a credit report is as follows: Personal information related to an individual such as name, date of birth, address and identification numbers like PAN number, Passport number, Voters id and Telephone number Account information such as the type of loan taken (home, auto, personal, overdraft, etc), the size of the loan, the current balance outstanding, overdue amount (if any), number of days a payment is overdue (if there is an overdue amount) and so on. The whole process from collection of documents to sanction of loan takes 10 to 15 days in between customer is provided by processing details so that they wont lose the interest and remain in touch with the company. Feedback is also taken from the customer after payment so that further improvement is done in the process and help in creating more loyal customers by customer satisfaction.

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When the loan amount is sanction to a customer 12 checks is taken from him so that EMI is easily recover from him as if he try to default one additional check is take which is deposit in the bank so that legal action can be taken against him.

Market of personal loan


Since Im working in one of the N.B.F.C whose rate of interest is much more than banking firm so it is very difficult for N.B.F.C to attract customers they can only satisfy the customer by fast process with less of difficulties and provide loan as fast as possible to customer which may help a lot to N.B.F.C to do business instead of banking firms. Most of the customers prefer to have a personal loan from banking firm since their rate of interest is less as compare to N.B.F.C but most of the time the process is time consuming in case of banks so those customer want fast loan they prefer N.B.F.C. Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 1956 engaged in the business of loans and advances, acquisition of shares/stocks/bonds/debentures/securities issued by Government or local authority or other marketable securities of a like nature, leasing, hire-purchase, insurance business, chit business but does not include any institution whose principal business is that of agriculture activity, industrial activity, purchase or sale of any goods (other than securities) or providing any services and sale/purchase/construction of immovable property.

Eligibility Criteria for Personal Loan


Salaried Individuals

Minimum age of applicant: 25 years Maximum age of applicant at the time of loan maturity: 60 years Minimum Gross Monthly Income: Rs. 10000 p.m. Self Employed Individuals include self-employed businessmen. Broad eligibility criteria for self-employed employees:

Minimum age of applicant: 25 years Maximum age of applicant at the time of loan maturity: 65 years Minimum Annual Income: Rs. 100000 p.a. This is the basic eligibility criteria for personal loan on addition to it residence location, payback capacity, past obligation type of industry and experience of the customer also matters a lot.

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REFRENCES

www.fullertonindia.com www.fitchindia.com www.rbi.org.in www.businessworld.in www.moneycontrol.com www.dnd.co.in www.personalloan.net.in/what-is-personal-loan/

www.foxsymes.com.au

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