INTERIM REPORT OF SUMMER INTERNSHIP

COMPANY NAME - BAJAJ FINSERV

Submitted to – Dr. Kishor Barad Submitted By: Kishish Kumar

Enrollment number: 1-18-060

Batch – 2018 – 2020

Acknowledgement

While submitting the project on “CONSUMER DOURABLE LOAN” I avail this opportunity
to express our gratitude towards all those all those who guided and helped to finish this
project successfully.
I am grateful to Mr. Yashaswi Sharma (Assistant Sales Manager), project guide, BAJAJ
FINSERV, Hyderabad for his inspiring guidance and kind encouragement.
I express my deep sense of gratitude and heart full thanks to my executive Mr. Sanjay Shukla,
Mr. Paresh Yadav, Mr. Jitendra, and Mr. Jigar Prajapati (Sales Executive) for valuable
guidance and encouragement, which has played a major role in completion of this Project
work. His esteem suggestion and encouragement from time to time has always Helped in the
completion of this project.
I express my since thanks to Dr. Kishor Barad for providing necessary facilities in college for
this project.
I am thankful to my teaching staff for their valuable guidance and encouragement in the
completion of this project.
I am thankful to my parents for their inspiring guidance and kind encouragement.
DECLARATION

I am Kishish Kumar student of PGDM, Shanti Business School, Ahmedabad

I hereby declare that this project report entitled “CONSUMER DURABLE LOAN” at BAJAJ
FINANCE submitted is my original work.
The finding of the report are based on the information collected by me during the study
And the result embodied in this study has not been submitted to any other university for the
award of degree.

Kishish Kumar

PLACE: Ahmedabad
DATE: 29-05-2019
TABLE OF CONTENTS
1. COMPANY .................................................................................................
1.1 INTODUCTION OF THE COMPANY
1.2 OVERVIEW OF THE COMPANY
1.3 HISTORY OF THE COMPANY
1.4 VARIOUS SECTOR OF THE COMPANY
1.5 VARIOUS DEPARTMENT OF THE COMPANY
2. MARKETING ..............................................................................................
2.1 PRODUCT PORTFOLIO
2.2 DISTRIBUTION NETWORK
2.3 PRICING
2.4 PROMOTION
2.5 MARKET SHARE
2.6 MARKETING MIX
3. HUMAN RESOURCE ...................................................................................
3.1 ORGANIZATIONAL STRUCTURE
3.2 ORGANIZATIONAL CHART
3.3 SENIOR MANAGEMENT
3.4 RECRUITMENT
3.5 TRAINING AND DEVELOPMENT
4. COMPITETORS ...........................................................................................

5. ENVIRONMENT

6. TECHNOLOGY

7. SWOT ANALYSIS

8. OPERATION ...............................................................................................

9. FINANCE ....................................................................................................
9.1 Performance highlights of H1 FY19 vs. H1 FY18
10. METHODOLOGY……………………………………………………….
10.1 THE LOAN PROCESS
1. COMPANY:
1.1 INTRODUCTION OF THE COMPANY:
 Bajaj Finserv, a part of Bajaj Holdings & Investments Limited, is an Indian financial
services company focused on lending, asset management, wealth management and
insurance.
 The company through its joint ventures and subsidiaries employs over 20,154 employees
and has established a nationwide presence across over 1409 locations.
 The company is currently engaged in consumer finance businesses, life insurance, and
general insurance and has plans to expand its business by offering a wide array of
financial products and services in India. Apart from financial services, Bajaj Finserv is
also active in wind–energy generation.
 The financial services and wind energy businesses were transferred to Bajaj Finserv
Limited (BFS) as part of the recently concluded demerger from Bajaj Auto Limited,
approved by the High Court of Judicature at Bombay by its order dated 18 December
2007. The demerger was effective on 31 March 2007.
 BFS is engaged in life and general insurance businesses through its joint ventures with
Allianz SE namely Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz
General Insurance Company Limited.
 Bajaj Holdings has been registered as a Non–Banking Financial Company (NBFC) under
the Registration No. N–13.01952 dated 29 October 2009 with Reserve Bank of India
(RBI). The company is classified as a Systemically Important Non–deposit taking NBFC
as per RBI Regulations.
 Bajaj Finserv Lending is one of the leading financiers in the market offering consumer
durable loans on EMI.
 An easily avail on a loan for products like LCD, LED, Colour TV, Refrigerator , Washing
Machine, Air Conditioner, Music System , Microwave amongst a host of other products.
 Bajaj Finserv Lending consumer durable loan comes with 0% financing with a small fee.
One can apply online on their website and get an instant approval or visit a dealership to
easily avail a loan. It provides on the spot approval with minimum documentation and
fast processing.
1.2 OVERVIEW OF THE COMPANY:
The cornerstone of our success lies in simply understanding the issue of customers, so that it
is easy to create products and services which place the advantage in customer court. Bajaj
finance driven a simple philosophy ‘Go for Great’. Bajaj finance tries to fulfil the dreams of
customers, improving the lifestyle, whatever the customer plan, we have the capability to
support it. Finance on consumer durable products such as television, air conditioner, washing
machine etc. To avail of Durable finance from Bajaj finance, customer need to do pay a
nominal processing fees on some brand at the time of purchase and divide the remaining cost
in equal instalment with zero percent interest without any hidden cost.

1.3 HISTORY OF THE COMPANY:

Bajaj Finance Ltd (Formerly Known as Bajaj Auto Finance Ltd is one of the leading Non-
Banking Financial Corporation in India. The company is a leading financier of two wheelers
consumer durables personal computers and personal loans. The Reserve Bank of India
classified the company as an Asset Finance Company. Bajaj Auto Finance Ltd was
incorporated on March 25 1987 as a private limited company. The company became a public
limited company on October 27 1987. Initially the company as was promoted by erstwhile
Bajaj Auto Ltd and Bajaj Auto Holdings Ltd. As per the scheme of de-merger of erstwhile
Bajaj Auto Ltd the shareholding of Bajaj Auto Ltd in the company has been vested with Bajaj
Finserv Ltd. In order to offer various finance schemes the company opened many branches in
various locations throughout the country. During the years 1991-95 the company opened their
branch offices at Hyderabad New Delhi Chennai Bangalore Mumbai Nagpur Vijayawada
Nasik Vishakhapatnam Kolkata Goa Madurai and Pune. During the year 1995-96 the
company completed their first Real Estate Project for Nayan Co-operative Housing Society
Ltd at Pune. Also they opened their branch offices at Baroda and Trivandrum. During the
year 1998-2003 they opened their branch offices at various places which include Chandigarh
Cochin Indore Ludhiana Surat Kolhapur Bhopal Bhubaneswar Calicut Erode Jalgaon
Jullundhar Kanpur Luck
Now Raipur Rajkot Salem Solapur Udaipur Tirupati Amravati Amritsar Bhavnagar Durgapur
Jamshedpur Jodhpur Kopergaon Mehsana Mysore Siliguri and Vellore. During the year
2003-04 the company entered into the financing of Personal Computers. They opened their
branch offices at Hisser Hubli Patiala Rourkela Agra Ahmednagar Ajmer Akola Alwar
Ambala Anand Bharuch Bhilai Chandrapur Dindigul Eluru Guna Gurgaon Himatnagar
Jagadhri Jamnagar Karaikudi Karimnagar Karur Kottayam Kurnool Navsari Nellore Palghat
Rajahmundry Sangli Tanjore Tirunelveli and Ujjain during the year 2004-05.During the year
2005-06 the company opened Loan Shoppes with a view to enhance their direct marketing
activity and their brand awareness. They opened 22 shoppers and 14 new branch offices
during the financial year. During the year 2006-07 the company opened 11 new branch
offices in which the total number of branches has gone up to 113. Also they cover 280 towns
through their branch network. The company launched new product lines / extensions during
the year 2007-08. They launched IPO financing for high net worth customers acquisition of
AAA rated securitization transactions personal loan cross sell programme to their existing
customers and financing for personal computers to SMEs. The company has the plan to
diversify their product offerings and grow other retail finance product lines. In 2013 the
company makes Rights issue in the Ratio of 3:19. In 2014 the company acquires Bajaj
Financial Solutions for worth Rs 17cr. In 2015 Bajaj Finance subsidiary gets license to
commence housing finance business from National Housing Bank (NHB) Kattupalli Port in
Tamil Nadu.
1.4 VARIOUS SECTORS
1.5 VARIOUS DEPARTMENTS

2 MARKETING

2.1 PRODUCT PORTFOLIO

 CONSUMER DURABLE LOAN: Consumer Durable loan is a finance option for

purchase of household items like Washing Machines, Refrigerators, AC, Color TV, LCD,
Microwaves etc. Company categorized customers into two categories:
1. New Customers
2. Existing Customers

1. New customers: New customers are those customers which do not have Bajaj Finserv
card. For new customers they have to pay Rs.530 for Card., they have to pay once. By
this customer can finance the product and they will get EMI Card.
2. Existing customers: Existing customers are the one who are having Bajaj Finserv
Card. By this card customer can avail Zero down payment scheme. Existing customers do
not pay any addition charges.

 CARD:
Bajaj Finserv categorized cards into 3 categories:
1. EMI CARD
2. VIRTUAL CARD
3. ADD ON CARD
1. EMI CARD: The Bajaj Finserv EMI card is a unique product that helps you to convert
your purchases into easy EMIs with just a simple swipe. It acts as a pre-approved loan in
your wallet and can be used to buy your favorite electronics, appliances, furniture, gym
membership, clothes, flight & hotel bookings and much more.
2. VIRTUAL CARD: Before EMI card there was a virtual card, were customers did not
have to pay EMI card fee. And there information were already present on the website.
3. ADD ON CARD: If any customer wants to make one more card of their family
member then they can pay Rs. 199 more and they will get one more card with discount.

2.2 DISTRIBUTION NETWORK:

BAJAJ FISERV is having strong distribution network. It is highly fragmented market from
the distribution point of view. The main corporate office is situated in Pune Maharashtra.
Other than this corporate office, BAJAJ FINSERV covered PAN India.

 Current Penetration PAN India:

 They are empaneled with more over 2500 dealers.
 They are present at over 5000 counters
 The sales strength is around 6000 (Off role & on role)
 They have tied up with 45 manufactures

2.3 PRICING:
EASY MONTHLY INSTALLMENT CARD –Rs 530/-
Other down payment and extra processing fees will be dependent on the particular brand and
scheme.

2.4 PROMOTION:
 Bajaj Finserv is currently having 0% interest rate scheme.
 Cashback offers
 Festival offers too are attractive directly 7 EMIs, 10 EMIs, 12 EMIs, 16 EMI
2.5 MARKET SHARE:
According to my store guide Market share of BAJAJ FINSERV is currently between 50% to 60%.

2.6 MARKETING MIX

 PLACE:
In set up of any business place played an important role. Today’s world, any retail business is set
up based on location. It should be customers oriented. There large available of skilled manpower
to achieve the targets. Working with highly experienced sales executives helpful in learning the
skills of sales. To maintain the proper relation with the management and stores sales person it is
necessary to work as a team and communicating with them regularly, it helpful for me to
understand the features of the different products. Distribution of work is another major part of
leanings with a proper setup for customer handling. Financial support for the customers for their
present and future benefits.
 PRICE: As the model No. differs, price variation is also differs. Pricing of particular product is
based on the product features. More functions and features prefer high price. Here Market sharing
ratio is also an important part. Today’s Air Conditioner market is captured by the L.G. and
SAMSUNG Company. As the company comes with the best features, quality of product, using
latest technology of blue fins, with best price.
 PROMOTION:
Sales promotion schemes were offered by the company to the customers. For example, 5%
cash back offer by the HDFC BANK to the HDFC credit card users on LG AC. In Bajaj
Finserv zero down payments schemes on weekends allotted to the customers. Dangler, poster,
Standy, scheme pad were also used for the promotions.

 PRODUCT: To know about the Product differentiation in different branches with

different model No. and features of the product. Its helps me to learn about the brand,
how different same brand product differs. For example, Panasonic AC, Jan 2018, model
No.RKY18Y3. Same model no. AC would not be available at the different branches.

3. HUMAN RESOURCES:
3.1 ORGANISATIONAL STRUCTURE:
Organizational structure of is typically hierarchical arrangement of lines of authority,
communications, rights and duties of an organization. Organizational structure determines
how the roles, power and responsibilities are assigned, controlled, and coordinated, and how
information flows between the different levels of management. A structure depends on the
organization's objectives and strategy. In a centralized structure, the top layer of management
has most of the decision making power and has tight control over departments and divisions.
In a decentralized structure, the decision making power is distributed and the departments and
divisions may have different degrees of independence. Organisations 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 decision making framework by which job tasks
are divided grouped and coordinated.

 Types of Organizational Structure

 Functional Structure
 Divisional Structure
 Line Organizational Structure
 Matrix Organizational Structure
 Project organization
1. Functional Structure- Under the functional type of organization, all identical
activities are grouped together under one department. Each functional department is managed
by an executive who is a specialist in his own field. There may be a separate department
based on important functions such as finance, personnel, marketing.
2. Divisional structure- In divisional organization divisions operate as relatively
autonomous businesses under the larger corporate umbrella. In a conglomerate organization,
divisions may be unrelated. Divisional structures are made up of self-contained strategic
business unit each produces a single product.
3. Line Organizational Structure- A line organization has only direct, vertical
relationships between different levels in the firm. There is only line departments-departments
directly involved in accomplishing the primary goal of the organization. For example, in a
typical firm, line departments include production and marketing. In a line organization
authority follows the chain of command.
4. Matrix Organizational Structure- A matrix organizational structure is a company
structure in which the reporting relationships are set up as a grid, or matrix, rather than in the
traditional hierarchy. In other words, employees have dual reporting relationships - generally
to both a functional manager and a product manager.
5. Project Organization- line and staff and functional authority organizational structures
facilitate establishment and distribution of authority for vertical coordination and control
rather than horizontal relationships. In some projects (complex activity consisting of a
number of interdependent and independent activities) work process may flow horizontally,
diagonally, upwards and downwards. The direction of work flow depends on the distribution
of talents and abilities in the organization and the need to apply them to the problem that
exists. A project organization is a temporary organization designed to achieve specific results
by using teams of specialists from different functional areas in the organization
3.2 ORGANISATIONAL CHART:
3.3 SENIOR MANAGEMENT:
 Rahul Bajaj (Chairman)
 Nanoo Gobindram Famani (Vice Chairman)
 Sanjiv Bajaj (Managing Director)
 Madhur Bajaj (Director)
 Rajiv Bajaj (Director)
 Dr. Balaji Rao (Director)
 Dr. Gita Piramal (Independent Director)
 Dr. Naushad Forbes (Director)
 Shri Kejriwal (Director)
 Shri Anami Roy (Director)

3.4 RECRUITMENT:
In human resource management, “recruitment” is the process of finding and hiring the best
and most qualified candidate for a job opening, in a timely and cost-effective manner. It can
also be defined as the “process of searching for prospective employees and stimulating and
encouraging them to apply for jobs in an organization”
In Bajaj Finserv recruitment of Sales Executives is generally through recommendation of the
present employees, after that personal interview is conducted. Sales Executive must have
Bachelor’s degree.

 For the post of ASSISTANT SALES MANAGER company recruits

from MBA college campus, they have 3 parameters:
 Aptitude test
 Group discussion
 Personal interview.
 For the next superior level position candidates are designated by promotion.
3.5 TRAINING & DEVELOPMENT:
Overall they have increased their investments in training their employees and seeing the results in
higher productivity. 7 days of training is given. They taught sales officer theoretically, then the
officers are being allowed to go on practical training for another 7 days, after that the permanent desk
would be given to them.

4. COMPITETORS
 Tata Capital
 HDFC
 HDB
 ICICI
 IDFC FIRST

 Difference between Bajaj finance and other finance

 It is very friendly to customers.
 It providing good financial services to the customers.
 Bajaj providing 0% interest to the customers
 Simple steps for taking the consumer durable loans
 Spot approval without any delay and verification
 Flexible EMIS are offered to the customers
 They are offering low down payment.
 Less Documentation

 In any other finance

 In any other finance we can apply for the loan with CIBIL score less than 750 by this they
may face the fraud customers.
 They also go for the verification process and approval may be delayed.
 Approval process is very long.
 More Documentation
 Features and Benefits:
 0% Interest and low down payments
 Easy repayment option
 Minimal documentation
 Instant Approval
 No security deposit
 Documents required for durable loans
 Your age must be above 21 years of age
 Identity and residence proof
 Income proof
 Electricity Bill

5. ENVIRONMENT:
 The internal and external environment of Bajaj Finserv is very good because company
has created a mind-set to the customers that there is zero percent interest on product.
 Most of the customers only want to purchase a product because to get an EMI card of
Bajaj so that they can get loan very easily and on zero down payment.
 Bajaj Finserv has created a very good environment because of extended warranty scheme,
due to this reason more and more customers are interested to purchase with finance
because those customers who will purchase through cash they couldn’t get the benefit of
this scheme.
 If any customers didn’t pay his EMI, Bajaj has a very strong team to collect money from
the customers.
 Working culture of Bajaj Finserv is also good; employees are freely work from morning
11 am to evening 9.30 pm with his interest because they get time to time motivation from
senior and higher incentive that forces them to work efficiently.
 Even the dealers like sales India, Vijay sales, Croma have a very good relationship with
Bajaj Finserv as compare to that of the relationship with that of the capital first so it’s a
very good feeling for the employees of the Bajaj so they work freely.
6. TECHNOLOGY
 Bajaj Finserv has started Fiorano software to reduce the maintenance and monitoring
effort involved in business process integrations between multiple systems. Business
process orchestration is now more easily monitored and updated using this software. The
partnership with Fiorano is a proof point of how the company approaches innovation and
its internal policy framework to create compelling long term brand propositions for its
customers. Fiorano was chosen by Bajaj after a careful analysis of integration platforms
including offerings from IBM and Oracle.
 For checking EMI card status either through card or through mobile number there is
another android app named “Galaxies app” this app is for employees of Bajaj Finserv
 For checking EMI status there is another app for customer that is Bajaj Experian app
through customer can easily check how many EMI is still dues and how many EMI he has
already paid.
 Bajaj Finance Limited has invested deep in technology and process innovations to create
long term sustainable advantages. This has allowed the company to create win-win
propositions for all members in the ecosystem.
 The company's long-term strategic intent is to do more with their existing customer.

7. SWOT ANALYSIS:
 STRENGTH:
 Strong management: strong management can help Bajaj Finserv to reach its
potential by utilizing strength and eliminating weakness.
 Size advantage: - Size advantages lower Bajaj Finserv lending’s risks. The larger
Bajaj Finserv lending gets, the more resources they have to pursue new markets and
defend themselves against rivals. It’s like portfolio risk.
 Brand name: - A strong brand name is a major strength of Bajaj finserv lending. This
gives Bajaj finserv the ability to charge higher prices for their products because
consumers place additional value in the brand.
 Technology: - Superior technology allows Bajaj finserv lending to better meet the
needs of their customers in ways that competitors can’t imitate.
 Customer loyalty: - When given a choice, customers are loyal to Bajaj finserv
lending. Instead of targeting all customers, Bajaj finserv lending only needs to target new
customers in order to grow their business.
 Cost advantages: - Lower costs lead to higher profits for Bajaj finserv lending. A low
cost leader can undercut rivals on price.
 Interest rate: - Bajaj finserv did not charge any interest on any product this is a strong
reason that more and more customers come to purchase product from Bajaj finserv.

 WEAKNESS:
 Terms and conditions: - In Bajaj finserv terms and conditions are more and more as
compare to other finance company like capital first limited, this is the reason why other
company get the benefit of this terms and conditions, the rejected customer of Bajaj
finance becomes the new customer of capital first limited.
 Case rejection: - In Bajaj finserv 25% of case is rejected so it’s negative factor for
Bajaj finserv, because in a company like capital first less than 5% case is rejected.
 Customer service: - Weak customer service hurts Bajaj finserv reputation and causes
customers to flee to competitors, who are more respondent.
 Cost structure: - A weak cost structure means Bajaj finserv lending’s costs are high in
comparison to their competitors.
 OPPORTUNITIES
 Good market value: - good market value has a significant impact, so an analyst
should put more weight into it. "Good market value" will have a long-term positive
impact on this entity, which adds to its value.
 Emerging market: - Emerging markets are fast growing regions of the world that
enable Bajaj finserv to quickly expand.
 New products: - New products can help Bajaj finserv lending to expand their business
and diversify their customer base.
 Innovation: - Greater innovation can help Bajaj finserv lending to produce unique
products and services that meet customer’s needs.
 International expansion: - Greater innovation can help Bajaj finserv lending to
produce unique products and services that meet customer’s needs.
 New markets: - New markets allow finserv Bajaj lending to expand their business and
diversify their portfolio of products and services.
 New technology: - New technology helps Bajaj finserv lending to better meet their
customer’s needs with new and improved products and services. Technology also builds
competitive barriers against rivals.

 THREAT:
 Intense competition: - New technology helps Bajaj finserv lending to better meet
their customer’s needs with new and improved products and services. Technology also
builds competitive barriers against rivals.
 Change in tastes: - Consumers can change their tastes very quickly. Bajaj finserv
lending depends on knowing which goods and services consumers want.
 Mature markets: - Mature markets are competitive. In order for Bajaj finserv to grow
in a mature market, it has to increase market share, which is difficult and expensive.
 Government regulations: - Changes to government rules and regulations can negatively
affect Bajaj finserv lending.
 Bad economy: - A bad economy can hurt Bajaj finserv lending’s business by decreasing
the number of potential customers, this statement will lead to a decrease in profits.
 Political risk: - Politics can increase Bajaj finserv lending’s risk factors, because
governments can quickly change.

8. OPERATIONS:
 Process

Walk Surrogates
Approved/
Rejected
in

Demonstration Login of Documents

Case Collection

Scheme
Document
Checking
Delivery
Order
Finance

9. FINANCE:
Bajaj Finserv half yearly report of FY2019
The Company produced its highest ever half yearly profit of J 1,759 crore and crossed
important milestones of J 1,00,000 crore of assets under management and J 10,000 crore of
deposits book in H1 FY19.
9.1 Performance highlights of H1 FY19 vs. H1 FY18
 New loans booked during H1 FY19 ↑56% to 10.90 million from 7.00 million in H1
FY18.
 Assets under management (AUM) crossed a milestone of H 1,00,000 crore in H1 FY19
and were ↑38% to H 1,00,217 crore as of 30 September 2018 from H 72,669 crore as of
30 September 2017.
 Total income for H1 FY19 ↑40% to H 8,238 crore from H 5,900 crore in H1 FY18.
 Profit after tax for H1 FY19 ↑66% to H 1,759 crore from H 1,059 crore in H1 FY18.
 Gross NPA and Net NPA, recognized as per extant RBI prudential norms and
provisioned as per Expected Credit Loss (ECL) method prescribed in Ind AS, as of 30
September 2018 stood at 1.49% and 0.53% respectively. The provisioning coverage ratio
stood at 65%.
 Capital adequacy ratio (including Tier-II capital) stood at 22.13% as on 30 September
2018. The Tier-I capital stood at 17.17%. The Company continues to be well capitalized
to support its strong growth.
10. METHODOLOGY

10.1 The loan process

 How to participate?
The loan process is simple in Bajaj finance the few steps are to participative by both customer and
Executive.
 First step :The Bajaj executive asks that the customer has any previous loans in the Bajaj finance or
in else any financial companies or the customer is credit card user.
 Second step: The response from the customer with respective to previous loans is gained by the
executive.
 Third step: The executive asks about the necessary documents require in the loan process. Then the
executive explains about their schemes with respective to the products purchasing by the customer.
 How to apply for EMI card?
 We can apply for our EMI card at the time of the purchase (or through your Customer Portal login on
Bajaj finance website, if we are an existing customer of consumer durable loan or lifestyle finance).
Our EMI card will come after the completion of three EMIs.
 Buying your consumer durable / life style product: We can sign up for our EMI card when we buy
your consumer durable through any of your retail partners. Our EMI card will be sent to you after 4
months of loan repayment, subject to timely repayments of our loan installments.
 Online through Digital Customer Portal: we can apply online anytime through your customer portal.
Make an online payment of Rs.249 and our EMI card will come within 3 months.