Customers loan purchase

behaviour
and attitudes on other financial
products
-BY SABA KHAN
WOXSEN SCHOOL OF BUSINESS
GUIDE- MR. BIRSINGH HANSDAH
MENTOR- MR. CHARANDEEP SINGH CHAWALA
DGM MARKETING

Objective: To map the customers loan

purchase behaviour and their
attitudes towards other financial
products.
Understand the Trigger for buying, Information
Seeking Behaviour and Influence AIDA steps.
Understand from their past behaviour which
financier has provided better solutions and the
reason to choose the current financier.
To know their attitudes towards loan and other
financial products.

RESEARCH
DESIGN

DATA
ANALYSIS
Count of Yearly Income

Type of MMFSL Customer

60%
40%
20%
0%

20%

31%

49%
EXPOSED TO MULTIPLE FINANCIER
FIRST TIME
REPEAT CUSTOMER
Occupation
19%
15%
2%
4%
5%
2%
17%
7%
29%
0%

5%

10%

15%

20%

25%

30%

35%

LOAN
JOURNEY

What motivates you to get a loan?

60%
40%
20%
0%

54%

33%

13%

In Urban and Semi Urban, people tend to take a loan for

personal use (luxury)more as compared to rural.
In Rural, alternate source of
income for farmers, and
businesses likes fertilizers are
linked to agriculture.
People take refinance for crop
loans.
In rural areas, people tend to get a loan during good monsoon and

DATA
ANALYSIS

Who Influences You To Take The Loan?

SELF DECISION

50%

NEWSPAPER/TV/ OTHER MEDIA 1%

FRIENDS/RELATIVES

33%

DEALER
BANK EXECUTIVE

10%
6%

From where do you seek information from?

8%
3%
2%
5%
1%
0%

24%
44%

13%
10%

20%

30%

40%

50%

DATA
ANALYSIS

What Factor Do Consider While Availing A Loan?

TIME PERIOD

2%

QUICK LOAN PROCESS

LESS DOCUMENTATION
CUSTOMER SERVICE
AFFORDABLE INTEREST RATE

11%
4%
39%
43%

Preference of taking loan

NBFC
FRIENDS/RELATIVES
BANKS

People choose
banks for *less
interest rates
People choose
NBFCs for *less
documentation
*Personalised
service

DATA
ANALYSIS
From where have you taken the loan
other than MMFSL?
20%
18%
18%
17%
16%
14%
12%
10%
10%
8%
8%
7%
5%
5% 5%
6%
3%
3%
4%
2% 2%
2%
2%
2% 2%
2% 2% 2% 2% 2%
2%
0%

1. LOW INTEREST
RATES

2. FRIENDS WORKED IN
THAT BANK

Why you chose the mentioned

Financier?

3. APPROACHED BY THE
EXECUTIVE

4. BANK WAS IN NEARBY

LOCALITY (STATED BY
RURAL CUSTOMERS)

AWARENESS ABOUT THE SCHEMES

PRODUCTS AND SERVICES

SEEK
INFORMATION

BRANCH

OBSERVE THE GOOD RESULTS AND

EXPERIENCE OF CUSTOMERS IN THE

FINDINGS
In urban, while visiting a dealer, many people tend to ask about the
loan and financiers whereas in rural, around 68% of the people dont
ask about loans but are told by the dealers themselves.
Earn and pay customers and petty traders prefer higher funding
whereas people of more than 5 lakhs prefer less interest rate.
65% prefers long term (more than 4years) loans. Mostly 89% salaried
people prefer long term loans.
54% of the respondents take loans to expand business, 13% to start a
new business and 33% for personal use.
Among the people who want to start a new business:
* 53% are new OLA/ Uber Cab drivers in the Urban Cities of
Hyderabad and Pune.
*20% farmers
buy
alternate
source
of a vehicle like Auto rickshaws and three wheelers in
the rural
for
income.

FINDINGS
Two major factors considered while taking a loan is

Affordable interest
Customer service
rate
And around 80% Used car/ Refinance customers are unhappy with
delayed loan process
Around 44% (majority)of people seek information from the dealer
and then from friends and relatives

FINDINGS
In Rural, people are more brand loyal and have good relationship
with the management Executives.
Word of Mouth and referrals are major factors to get business in rural.
Around 78% of the respondents are satisfied with Mahindra Finance.
QUICK LOAN
PROCESS

CUSTOMISED
REPAYMENT
SCHEDULE
DELIGHTS : PERSONALISED SERVICE

SUPPORT
&UNDERSTAND
CUSTOMERS

Cause for concern :

LOW PRODUCT AWARENESS
INTEREST RATE
DELAYED NOC
UNIT

RELATIVELY HIGH
NO PRPOER CUSTOMER CARE

Are you comfortable taking loans?

15%
85%

Opportunity to fulfil desires

A Liability

DATA
ANALYSIS

Do you invest in financial products?

100%
98%
100%
82%85%100%99% 98%100%
98%
50%
0%

36%
64%

NO
YE
S

Awareness about the financial p

100% 81%
47%
50%
17%15%35% 30% 33%
32% 36%
0%

Do you invest or have invested in these financial products

DATA
ANALYSIS

20%

35% 42%

45%

35%

23%
Im comfortable with
investments that may
frequently fluctuate in value
if there is a potential for
higher return.

I would prefer to save at home rather than investing in different financial products.

53%

24%
23%

I would prefer to invest in Tools like M.F. or shares for higher returns rather than investing in Traditional ways like F.D/ PO deposits.

18%
27%

55%

I would spend on health insurance premium every year rather than ending up paying entire hospital bills later.

DATA
ANALYSIS
I would buy property for a long term benefit from it.

32%
18%

A chit fund is a good savings instrument and a reliable source in an emergency.

26%
50%

24% 50%

I invest for a long term growth.

20%

21%
16%

I find investing in gold a safe investment.

63%

19%

61%

What are your future plans?

Others: marriage/wealth
maximisation

FINDINGS
63% said they would go for long term
investment. As they longed for longer life
expectancy or planning for retirement
Most working women said that they would
prefer long term benefit rather than short
term.
More than 10 lakhs per year income group
said they take loans to reduce the tax.
In rural, there is Financial Illiteracy.
81% have life insurance and believe that it
is the most secured & risk free investment.
90% of high income group and graduate
people tend to invest more.

FINDINGS
Around 61% say that gold is a safe investment
and they invest in gold when the market is
bullish.
Few also said that they invest in gold if there
is any economic, political or social crisis like
stock crash, high inflation or any social unrest.
Age group 18-34 tend to highly agree to Im
comfortable with investments that may
frequently fluctuate in value if there is a
potential for higher return.
Stability of interest is as important as
receiving a high rate of interest as there
is a risk involved
-RAM KUMAR, STOCK BROKER (A RESPONDEDNT FROM
HYDERABAD)

My Experience

CONCLUSION

CONCLUSION

Investor has great preference for safety and this is proved

by their investments in life insurance, fixed deposit and
investment in gold.
The survey also helped to analyse the investors
awareness about various investment avenues.
Many Sutradaar were made during the field visit. And
unhappy customers miscommunication and problems
were also solved.
As maximum business is through dealers, our long term
goal should be to become SELF SUFFICIENT. The interest
rate for the customers can be minimised if the business
comes directly to MMFSL without the dealers help.
There should be financial literacy and awareness about the

THANK YOU!