Executive Summary

The project calls for an overall responsibility in the corporate environment with the primary focus on A
STUDY OF THE CONSUMER PERCEPTION ON BAJAJ FINSERV LENDING SERVICES with
reference to consumer durables and study the factors which influence the decision of consumer while
taking FMCD loans at 0% interest Rate as well as study the profit making strategy of the company at 0%
rate of interest.

The project is divided in to four stages -

1. Understanding the Products in terms of Consumer Durable Loan, Insurance Services

and EMI Cards.
2. Visiting the Company’s Partners outlets to understand the operation of work and dealing with
customers for FMCD Loans.

3. Meeting the Customers to understand the consumer perception and the

factors which influence the decision of consumer while taking FMCD loans.

4. Study the study the profit making strategy of the company at 0% rate of interest.

The Stage I involves study about the Products in terms of Consumer Durable Loan, Insurance Services and
Emi Cards, various offerings given by them to the customers and analyzed them with respect to the
offerings made by the company to gain an overall profit. How Customer can easily avail a loan for products
like LCD, LED, Color TV, Refrigerator, Washing Machine, Air Conditioner, Music System, and Microwave
amongst a host of other products.

The Stage II involves the interaction with the sales executive of company’s partners outlet to gain the in-
depth idea on the operation of the company and problems faced by them, if any.

The Stage III involves meetings with Customers to understand their perception and the
factors which influence the decision of consumer while taking FMCD loans in relation with What, Where,
How, When the buy the FMCD goods an overview regarding their decision making.

The Stage IVinvolves the study the profit making strategy of the company at 0% rate of interest in relation
with terms and conditions among their partners outlets as well as customers.

1
 CHAPTER -1

INTRODUCTION

2
INTRODUCTION

In the modern culture attraction for comfortable and luxury life among middle class and lower class is
increasing rapidly. FMCD Loans at 0%Interest rate with Low EMI and Low down payment are widely
preferred by urban as well as semi urban people. The important reason for attraction towards FMCD loans is
that these loans help to manage social status in society and second reason is easy approval. Even higher class
people are preferring importance and getting benefit from these Loans equally.

With the growing popularity of FMCD Loans, The FMCD companies are getting benefit equally because of the
increasement in sales of the products. Festival time like Diwali, Holi, Ganesh pooja and some regional festivals
becomes blessing for companies as well as customers. FMCD Loans are increasing the sales of these products rapidly
for the benefit of not only customers and FMCD companies but also loan providing companies because this 0% gives
high profit to them.

Huge profit in this segment is increasing the competition among the companies. Mostly non-banking
financial corporations are involved but banking sector also providing equal importance. Recently, finance
minister said to banks to emphasize on FMCD loans. Competition in this line is different from other
products because here no. of customers and their demand is rising and it covers whole segments.

Risk is another factor in this market where a company earns a lot of profit also has to manage risk. Proper
risk management decides the success of the company otherwise many companies has got huge loss and
disappeared from the market. Finally we can say that FMCD Loan market is very huge, prosperous, and
attractive with higher risk.

3
CHAPTER -2

INDUSTRY
PROFILE

4
Industry Profile

The Indian mortgage and loan finance market, which accounts for around 7% (cumulative) of GDP, has been
able to maintain a steady growth rate while keeping asset quality under control despite some headwinds in
the operating environment. The service economy continues to be the silver lining in an economic
environment riddled with volatility and uncertainty. While everything seems to be in a state of flux, the
growth of various lifestyle categories stays on course, largely driven by the demographic dividend, growing
disposable incomes, changing social structure and bulging middle class.

However, the spate of interest rate hikes and recent monetary policy changes dampen the Spirit and threaten
to slow things down. There are already signs of a possible slowdown in the growth of consumer Durables
category that has seen galloping growths in the recent past. Against this backdrop, 0% interest consumer
finance holds the promise to bail things out and keep the growth engine chugging. In turn, allowing people
to live their aspired lifestyles.

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 Cr 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.Declining
interest rate, less paper work, fast processing time, rebate on income tax, flexibility to repay, attractive

schemes have led for the significant growth of Indian Loan market. 

5
 CHAPTER -3
COMPANY PROFILE

6
COMPANY PROFILE

History

Bajaj auto Finance Ltd. was incorporated asa Private Limited Company on 25th March, 1987. It became a
deemed Public Limited Company by virtue of Section 43(A) of the Companies Act, 1956 w.e.f., 20th
October, 1987.

Bajajauto Finance Ltd was promoted by erstwhile Bajaj Auto Limited and Bajaj Auto Holdings Limited.
Bajaj Auto Limited is one of the leading manufacturers of two wheelers & three wheelers in the country
and Bajaj Auto Holdings Limited is an investment company that is a wholly owned subsidiary company of
Bajaj Holdings & Investment Limited. As per the Scheme of Demerger of erstwhile Bajaj Auto Limited,
the shareholding of Bajaj Auto Limited in Bajaj auto Finance Ltd. has now been vested with Bajaj Finserv
Limited. 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.In October
2010,The Name of Bajaj auto Finance Ltd changed as Bajaj Finance Ltd. Now Bajaj Finance Ltd. is also
Known as Bajaj Finserv Lending Which is a subsidiary company of Bajaj Finserv Ltd.

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.

Bajaj Finance Ltd is engaged primarily in the business of financing of two wheelers, consumer durables,
personal loans, small business loans, mortgages, construction equipment, and loan against securities. Bajaj
Finance Ltd made a Public Issue of Equity Shares in 1994 and its Equity Shares are listed on Bombay Stock
Exchange Limited and National Stock Exchange of India Limited.

Bajaj Finance Ltd made a Preferential Issue of Equity Shares to the Promoters and a few foreign corporate
bodies and also warrants to the Promoters in 2006. Bajaj Finance Ltd made a Rights Issue of Equity Shares
and Non-Convertible Debentures with detachable warrants to the existing shareholders in 2006-07.

Head office: Pune

Bajaj Finserv Lending: Performance Highlights, FY2016

 Total income: 7,384 cr.

 Profit before tax: 1,965 cr.

 Profit after tax: 1,279 cr.

7
Board of Directors

Rahul Bajaj

(Chairman)

Sanjiv Bajaj Rajeev Jain

(Vice-Chairman) (Managing Director)

8
Organization Structure

S WOT Analysis

Strengths :
 High Profitability and Revenue
 Monetary Assistance Provided
 Reduced Labor Costs
 Experienced Business Units
 Domestic Market
Weaknesses :
 Future market size
 Future cost structure

9
Opportunities :
 New Market
 New Acquisitions
 Growing Economy

Threats :
 Cash Flow
 Growing competition and lower Profitability
 Price Changes

Achievements

Bajaj Finance Ltd is one of the few NBFCs in the country to be awarded a rating of FAAA/Stable for fixed
deposits, indicating a very strong degree of safety with regard to timely payment of interest and principal on the
instrument by the Credit Rating and Information Services India Limited (CRISIL).

In addition to this, we are also rated high in the following programs:

 P1+ rating from CRISIL for Short-Term Debt Programme

 AA+/Stable from CRISIL and LAA+ from ICRA for Long-Term Debt Programme

We have a network of over 2,500 Bajaj Auto and consumer durable dealerships and over 82 branch offices
throughout the country to cater to all the requirements of our customers. We have earned the trust and loyalty of
over 50 lac satisfied customers across the country.

Milestones
1987-1988: March 1987 incorporation of Bajaj Auto Finance Ltd.
Sept. 1988 Listed as Public Ltd. Company
1988-1999: March 1988 Registered with RBI as NBFC
1999-2000: Launch of consumer durable Loans
2007-2008: July 2007 commitment of 75 seat centralized call center inPune
Achieved highest distribusal so far of Rs. 30363 Million

Demerger from Bajaj Auto Ltd. Now Bajaj Finserv is parent Company for Bajaj Auto

Finance Ltd.

2008-2009: Jun 2008 Personal, Consumer Durable & Small Business Loans

Aug. 2008 Insurance Distribution Business

Dec. 2008 Loan Against Property Business

10
2009-2010:Launch of Construction Equipment Business Finance

Launch of Loan against Securities

GeographicalPresence : Present in more Than 83 cities with 4200 distribution Franchiseand 70 branches
across the country.

11
 CHAPTER -4
PRODUCT PROFILE

12
 PRODUCT PROFILE

1. Consumer Durable Loan

2. Insurance Services

3. EMI Cards

1. Consumer Durable Loan

Bajaj Finserv Lending is one of the leading financiers in the market offering consumer durable loans on
EMI.Now Customer can easily avail a loan for products like LCD, LED, Color TV, Refrigerator, Washing
Machine, Air Conditioner, Music System, and Microwave amongst a host of other products.

Bajaj Finserv Lending consumer durable loan comes with 0% financing and with a small fee. Customer
can visit a dealership to easily avail a loan. We provide on the spot approval with minimum documentation
& fast processing.

Features

 Avail loans ranging from Rs. 7,500 to Rs. 5,00,000 for Washing Machines, Refrigerators, Colour
TVs, LCDs and other consumer durables.
 Apply Online or walk in to one of our Dealer Partner showrooms and get your loan approved in 15
minutes.

Benefits

 Part Prepayment facility **

Now, be rewarded for repaying your loan on time and reduce your EMI or tenor or both by using the
part prepayment facility .You can prepay up to 6 times in a calendar year at any interval with the
minimum amount per prepay transaction being not less than 3 EMI’s and there is no limit on the
maximum amount.
 0% finance options available (for select schemes)
 Simple process with minimum documentation.
 On the spot approvals with fastest processing.
 Flexible repayment options.
 ECS clearing, reducing hassle of arranging cheques.
 Pre-approved personal loan offers for existing customers

Eligibility

Age of salaried your person should be between 21 years to 60 years.If you are Self Employed your age
should be between 21 years to 65 year.

13
Documents

Documents required Salaried Self Employed

Photo Id Proof  

Residence proof  

One Cheques in case of ECS  

Credit program specific documents ( Any one of the following)

Credit Card front side photocopy  

Visiting Card & Employee Id proof   _

Photocopy of RC book (Not applicable for

 
vehicles registered after 2004 & commercial cars)

Bajaj Finserv Lending existing loan Repayment Loan 

Account Number / Schedule (subject to not later   
than 18 months old)

Any other Bank/NBFC Repayment Schedule  

Salary Slip   _

Banking Details (latest 6 months) Account Type- OD/ CC  _ 

Fees   & Charges

Amount Financed Slab Processing Fees

Upto 15000/- Rs.499/- to Rs.599/-*
Between Rs.15001/- & upto Rs.30,000/-* Rs.599/- to Rs.699/-
Rs.30,001/- & above Rs.699/- to Rs.799/-*

Other Charges Amount

Foreclosure Charges ** NIL
PDC Swapping Rs. 500
Cheques Bounce - Rs. 350 per cheques
Bounce Charges
Late payment penalty - Rs. 150

14
 Extended   warranty Scheme For Consumer Durables

Bajaj Allianz' Extended Warranty Policy can be purchased when you are buying a consumer durable
product. The Extended Warranty covers the cost of repair/ replacement of the consumer durable appliance
(i.e. insured asset) arising out of unforeseen defects in material or workmanship within the policy period.

Features of Extended Warranty

 Insurance coverage of up to 12 months after expiry of manufacturer’s product warranty.

 Hassle free claim settlement.
 Ensures repair at authorized service centers.
 Repair as well as replacement costs of the consumer durable appliance are covered.

2. Insurance Services

Group Term life

Group (term) Insurance Scheme provides life insurance protection to group

customers who have taken
a loan from Bajaj Finserv Lending. Administration of the scheme is on a group basis
and the cost is very low.
Under Group (Term) Insurance scheme, life insurance cover is allowed for all the
members of a group
subject to some simple insurability conditions without insisting upon any medical
evidence.
Scheme offers covers only on death and there is no maturity value at the end of the
term. Group (Term)
Insurance Scheme is at present offered under One Year Renewable Group term
assurance plan (OYRGTA).
Group Suraksha

Give your members and their families the heartening reassurance of your care,
complete reassurance of lasting financial security and peace of mind at a very low
cost in the event of his/her premature demise. Group Suraksha is an economical way
to protect ones family from the burden of loan repayment in case of death of the
loaner.
Death/ Accidental Permanent Total disability benefit
On the death of the member, the sum assured as per the schedule of Insurance shall
be payable. However, if the member has opted for the Accidental Permanent Total
Disability Benefit, then the sum assured as per the schedule of Insurance shall be
payable on Accidental Permanent Total Disability of the member. Subsequently the
membership shall be terminated.
Surrender benefit
An individual member can surrender due to resignation, ill-health, retirement and
loan repayment in case of reducing cover or in case of termination of membership.
Exclusion
No death claim will be payable in case of suicide within one year from
commencement of the membership

15
 3. EMI CARD

Introduction

At Bajaj Finance we believe in continuous innovation. It is our Endeavour to

introduce innovative products that benefit our customers keeping their convenience
in mind.

The EMI card is a part of that effort at innovation to provide our existing customers
easy access to consumer durable loans at 0%

Features &   Benefits

Features
Now buy your favorite LCD, Refrigerator, Air Conditioner etc. all over again, with
amazing ease
and no additional documentation. What is EMI card?
 It’s a closed loop magnetic stripe card with all your information available on
it for us to easily identify
you.

 The product lets you purchase your favorite consumer durables with a simple
'Swipe, Sign and Go'.
 Further-more, this EMI based option of Consumer Durable purchase
empowers you to go in for that
dream product that you always desired right here right now, without having
to wait for your annual
bonus or hike.

16
Benefits

 0% finance options available (for select schemes)

 Simple process with no documentation.
 On the spot approvals with fastest processing.
 Indian Health Organization membership

Added Benefit from Indian Health Organization on the EMI Card

Bajaj Finance has tied up with Indian Health Organization for offering Health Plan
membership to its Bajaj
Finance Limited EMI Card members. The membership entitles you to benefit from
free/concessional
healthcare options which can be availed across high quality medical establishments
empanelled with
Indian Health Organization. The services are valid on both consultation and
treatment with dental, medical,
pathology and radiology practitioners.
 

CHAPTER- 5

OBJECTIVE AND
RESEARCH
METHODOLOGY
17
OBJECTIVE

PRIMARY OBJECTIVE:

1. To Find the consumer perception on Bajaj Finserv lending services with reference to consumer
durables

2. To Find the factors which influence the decision of consumer while taking FMCD loans at 0%

interest rate?

SECONDARY OBJECTIVE:

1. To study the profit making strategy of the company at 0% interest rate.

REASEARCH METHODOLOGY

Research analysis starts with a question or a problem. Its purpose is to question through the application of
the descriptive method. It is a systematic and intensive study directed a more completed knowledge of the
subject studied. Marketing research is the function which links the consumer, customer and public to the
marketer through information- information used to identify and define marketing opportunities and
problems generate, refine and evaluate marketing actions monitor marketing actions, monitor marketing
performance and improve understanding of market as a process.

18
Marketing research specifies the information required to address these issues, designs, and the method for
collection information, manage and implemented the data collection process, analyses the result and
communicate the findings and their implication.

Descriptive research includes survey and fact finding enquiries of different kinds. The major purpose of
descriptive research is description of the state of affairs as it exists at present. The main characteristics of
this method are that the researcher has no control over the variables; he can only report what happened or
what is happening

The Term Descriptive research refers to the type of research question, design and data analysis that will be
applied to a given topic. Descriptive statistics tell what is, while inferential statistics try to determine cause
and effect. We adopted Descriptive method in Research Methodology.

The Marketing Research Process:

As marketing research is a systematic and formalized process, it follows a certain sequence of research
action. Marketing process has the following step:

1. Formulating the problems

2. Developing objectives of the research
3. Designing an effective research plan
4. Data collection techniques
5. Evaluating the data and preparing a research report

Research Strategy:

According to Denscombe there are five different research strategies to

Choose from. They are as follows:

• Surveys

• Case studies

• Experiments

• Action research

Methodology:

The methodology used to achieve the objectives was divided into two stages, as follows:-

19
1. Collection of primary data

2. Collection of secondary data

Collection of Primary Data:

Primary data are those data which are new and original in nature. These data are first hand information
generated to achieve the purpose of the research. Information collected questionnaire & observation.To get
insight of the present scenario of Bajaj finserv lending primary data were collected from different sources
with direct interview.

Collection of secondary data:

These data are obtained from published or unpublished sources. Data through these sources facilitate
easier and quicker.

The secondary data was collected from Company’s website www.bajajfinservlending.in and the various
journals and articles written in different magazines, newspapers and internet.

Research Area: Pune (Reliance Digital, Aundh)

Sample Size:100 Customers

Research period: 2 months

Research instrument: This work is carried out through self-administrated questionnaires which include
open ended and close ended questions.

Sampling plan: For a successful completion and best result within in a limited time the planning was
must. In this way the first step was to design an appropriate data from we can say it questionnaire that
covers all the mandatory areas of information that is to be analyzed.

 Sampling unit- Customers

 Sampling size -100 Customers
 Sampling method - Stratified method

Sampling Design:
a. Sample size:
Considering the time Sample size was selected as:

20
  Total No. of Consumers- 100
b. Sampling method:

1) Stratified method:-
Stratified sampling method is conducted by asking question to Consumers with help of a designed
questionnaire.
This technique or method is useful when samples are in large quantity.
c. Sample Selection:

 For this research Stratified sampling method has been used.

 Sample was selected from the different type of customer

Data collection technique: Primary data collection has done by structured questionnaire. An
appropriate questionnaire was designed to meet all the research objectives. The sample of the same has
been enclosed in the annexure.

CHAPTER -6
DATA
21
 INTERPRETATION

DATA INTERPRETATION

Q.1 What is Your Gender?

Table No. 6.1

Sr. No. No of Gender No of Respondents Percentage

1 Male 83 83%
2 Female 17 17%

Graph No. 6.1

90% 83%
80%
70%
60%
50%
40%
30% Column2
20% 17%
10%
0%
Male Female

22
Interpretation:

1. This question was to understand which gender is inclined to take FMCD Loans.

2. Mostly Male people around (83%) prefer FMCD Loans.

KEY FINDINGS

It shows that Maximum numbers of FMCD consumers are male.

Q.2 What is Your Age?

Table No. 6.2

Sr. No. Age No. of Percentage

Respondents
1 Below 25 Years 13 13%
2 25-35 Years 34 34%
3 35-50 Years 39 39%
4 50-60 Years 10 10%
5 More than 60 4 4%
Years

Graph No. 6.2

23
 Age
4%
13%
10%
Below 25 years
25-35 years
35-50 years
50-60 Years
More than 60
34%
39%

Interpretation:

1. This question helps us to understand which age groups are going for FMCD Loan.

2. From the sample survey maximum 39% of them are in the age category between 35 to 50 years.

3. We can also observe 34% of them in the age group of 25-35 years.

4. Very few people (4%) of them above 60 years go for Loan.

Key Findings

Maximum numbers of people in the age category 25 to 50 years prefer FMCD Loan.

Q.3 What is Your Occupation?

Table N0. 6.3

Sr. No. Type of No. of Percentage

Occupation Respondents
1 Pvt. 41 41%
Employee
2 Retired 4 4%

3 Self 32 32%
Employed
4 Govt. 23 23%
Employee

24
 Graph NO. 6.3

Occupation
23%
41% Pvt. Employee
Retired
Self Employed
Govt.Employee

32%

4%

Interpretation:

1. This question helps us to understand which occupational category of people prefers FMCD Loans.

2. Private employees nearly 41% are the prime customers who preferred FMCD Loans.

3. They were followed by self-employed (32%) and Govt. employees (23%)

Key Findings:

Private employees are the maximum Loan takers for FMCD products as compared to Govt. employees and
self-employee.

Q.4 What is your Income Group (Per Month)?

Table No. 6.4

Sr No. Income(per No. of Percentage
month) Responden
ts
1 Below 22 22%
20,000 Rs.
2 20,000- 47 47%
50,000 Rs.
3 50,000- 18 18%
75,000 Rs.
4 More Than 13 13%
75,000 Rs.
Graph No: 6.4

25
 47%
50%
45%
40%
35%
30% 22%
25%
20% 18%
15% Column2
13%
10%
5%
0%
Below
20,000 20,000-
50,000 50,000-
75,000 More than
75,000

Interpretation:

1. This question helps us to understand which income groups of the society are going for FMCD Loan.

2. From the sample survey maximum 47% of them are in the income category between 20,000 - 50,000
Rs. per month.

3. We can also observe that 22% of them are from below 25,000 Rs. Per month income group.

4. Small number of people (13%) is from more than 75,000 Rs. per month who go for FMCD Loans.

Key Findings:

On the basis of collected data, we can conclude that Maximum number of customers is in the income
category 20,000 – 50,000 Rs.Per month.

Q.5 Why do you prefer FMCD Loan?

Table No. 6.5

Sr. No Customer’s No. of Percentage
Response Respondents
1 Easy comfort 45 45%
Life
2 Easy to manage 16 16%
Monthly
Expenses
3 Easy To Manage 26 26%
Social Status
4 Savings are not 13 13%
affected

26
Graph No.6.5

13%

Easy Comfort Life

45% Easy to Manage Monthly
Expenses
26% Easy to Manage Social
Status
Savings are not affected

16%

Interpretation:

1. This question helps us to understand why people prefer FMCD Loan.

2. From the sample survey maximum 45% of them prefer FMCD Loan because they want to enjoy
comfortable life easily.

3. We can also observe that some families preferred FMCD loans to manage monthly expenses and social
status easily which are 16% and 26% respectively.

4. Very few families (13%) of them prefer to maintain savings.

Key Findings:

This result is showing that maximum number of buyers prefer 0% finance to enjoy comfortable life.

Q.6 Who influenced or suggested you to buy a FMCD Loan on 0 % interest rate?

Table No. 6.6

Sr. No. Customer’s No. of Percentage

Response Respondents
1 Family Member 49 49%
2 Friends & 18 18%
Colleague
3 Yourself 21 21%
4 Any Other 12 12%

Graph No. 6.6

27
 49%
50%
45%
40%
35%
30%
25% 21%
18%
20%
12%
15%
10%
5%
0%
Family Friends & Yourself Any Other
Member Colleague

Interpretation:

1. This question is for understanding that who Influenced/suggested to take FMCD loan.

2. Family members nearly 49% are influencing factor that preferred FMCD Loan.

3. They were followed by yourself (21%), Friends& colleague (18%) and any other (12%).

Key Findings:

Maximum number of buyers is influenced by the family member to take the benefit of this scheme.

Q.7 Which of the following factors influences you to purchase a FMCD loan at 0% rate of interest?

Table No.6.7
Sr. No. Customer’s No. of Percentage
Response Respondent
s
1 Income 29 29%
2 0% Interest 71 71%
Rate
Graph No.6.7

28
 29%

Low Income
0% Interest Rate

71%

Interpretation:

1. This question helps us to understand what is reason to attract for FMCD Loan at 0% rate of interest.

2. From sample survey maximum 71% of customers are attracted by 0% rate of interest.

3. We can also observe that 29% customers are influenced by low income.

Key Findings:
On the basis of this result we can conclude that maximum customers prefer FMCD Loan because of
attractive interest rate.

Q.8 What you expect from a FMCD Loan company?

Table No.6.8

Sr. No. Customer’s Response No. of Percentage

Respondents
1 No Down payment 20 20%
Graph 2 Low Interest Rate 44 44% No.6.8
3 Low EMI 23 23%
4 Low Down payment 13 13%
Interpretation:

29
1. This question helps us to understand the expectations of customers from a FMCD loan company.
2. From all sample survey, maximum 44% of customers demand for the low interest rate from a FMCD loan
company.
3. We can also observe that 23% demand for low EMI and 20% for no down payment.
4. Very few customers (13%) demand for low down payment.

Key Findings:
Maximum number of customers expects low interest rate from FMCD Loan Company.

Q.9 How do you get awareness about FMCD Loan at 0% rate of interest?

Table No.6.9

Sr. No. Customer’s Response No. of Percentage

Respondents
1 Through NEWS Paper 12 12%
2 Friends /Acquaintances 27 27%
3 By salesman at the store 61 61%

Graph No. 6.9

12% Through NEWS

Paper
27% Friends/Acquiantace
s
61% By salesman at the
store

Interpretation:
1. This question is for understanding how people get awareness about the finance services at 0% rate of
interest rate.
2. Maximum number of customers (61%) gets awareness about the FMCD Loan at the store by salesman.
3. Few number of customers gets information about that through NEWS paper and friends/ acquaintances
which is 12%, 27% respectively.

30
Key Findings:
Maximum number of customers gets awareness about the 0% finance from sales person at the store.

Q.10 Why do you prefer Bajaj Finserv Lending?

Table No. 6.10

Sr No. Customer’s Response No. of Percentage

Respondents
1 Easy Approval 45 45%
Graph No. 2 0% Interest Rate 17 17% 6.10
3 Low EMI 23 23%
15% 4 Low Down Payment 15 15%
45%
Easy Approval
23% 0% Interest Rate
Low EMI
17% Low Down Payment

Interpretation:

 This question helps us to understand the why people prefer Bajaj finserv lending for FMCD Loan at
0% rate interest rate.
 From the sample survey, main reason for preferring Bajaj finserv lending is easy approval which has
45% importance.
 We can also see that Low EMI, 0% interest rate and low down payment are another reason which
have 23%, 17%, 15%, importance respectively.

Key Findings:
Large numbers of customers prefer Bajaj finserv lending because of easy approval which includes 15 minutes
with four common documents.

31
Q.11 EMI card of Bajaj Finserv Lending Beneficial for you?

Table No. 6.11 Sr. No. Customer’ No. of Percentag

s Response Respondent e
s
1 Yes 38 38%

2 No 62 62%

Graph No. 6.11

70%
62%
60%

50%

40%

30% 28%

20%

10%

0%
Yes No

Interpretation:
1. This question helps us to understand EMI card of Bajaj finserv lending is beneficial for customers.
2. Maximum number of customers which is nearly 62% are saying that it’s not beneficial for them.
3. Benefits from EMI card is followed by only 28% customers.

Key Findings
We can conclude that EMI card of Bajaj finserv lending is not beneficial for maximum customers

32
 Sr. Customer’s Response No. of Percentage
No. Respondents
1 Reduces Document Requirement 15 15%
2 IHO Facility 10 10%

3 Make availability of the Product 13 13%

Across the Country

Q.12 If Yes, Why?

Table No.6.12

Graph No.6.12

52%

60% 27%
50% 21%
40%
30%
20%
10%
0%
-10% Reduces
Document IHO Facility
Make
Requremnt availabilty of
the product
across the
country

Interpretation:
1. This question helps us to understand that how EMI card of Bajaj finserv lending is beneficial for them.
2. The main beneficial reason of EMI Card is that it makes the availability of the FMCD product across the
country which has 13% importance.
3. Some reasons for accepting benefits of EMI card are reduction in documents (15%) and IHO facility
(10%).

33
Key Findings:
Maximum number of customersisinterested in EMI card because it makes availability of products across the
country through Bajaj finserv lending.

Q .13 If No, Why?

Table No.6.13
Sr No. Customer’s No. of Percentage
Response Respondents
1 Extra charge 30 30%
2 No problem 12 12%
with
documents
3 Don’t 20 20%
require IHO
Facility

Graph No.6.13

6% 11%
Extra charge
No problem with
documents
Don't require IHO
Facility
83%

Interpretation:
1. This question helps us to understand that why customers avoid the EMI card of the company.
2. Extra charge for EMI card is main reason;it has been avoided by 30% customers who are not beneficial
from EMI cards.
3 Only few customers are followed by some another reason which are don’t require IHO facility ( 20%) and
no problem with documents ( 12% )

34
Key Findings:
The customers who are not interested in EMI card, maximum because of extra charge.

Q.14 Do you want also any other type of Loan from Bajaj Finserv Lending?

Table No.6.14
Sr. No. Customer’s No. of Percentage
Response Respondents
1 Yes 73 73%
2 No 27 27%

Graph No.6.14

80% 73%

70%

60%

50%

40%
27%
30%

20%

10%

0%
Yes No

Interpretation:
1. This question help us to understand the demand of another types of loan from Bajaj finserv lending.
2. Maximum number of customers which is nearly 73% demanded another type of loans.
3. Only a few customers which is 27% don’t want any other type of loan.

Key Findings:
Maximum number of customers expect some another type of loan from Bajaj finserv lending which are useful
for them.

35
 CHAPTER -7
FINDINGS
&
PROFIT MAKING
STRATEGY
36
Findings
1. Maximum numbers of buyers are from male category
2. The age group who preferred FMCD loan is between 35 to 50 years.
3. The people who prefer FMCDloan maximum are pvt. Employees.
4. Middle class income group (20,000- 50,000) is maximum buyer of FMCD loan
5. The reason of attraction for FMCD loan is to enjoy comfortable life.
6. Maximum number of customers is inspired by family members to take FMCD loan
7. The availability of FMCD products at 0% finance is great attraction for customers
8. Maximum customers expect low interest rate from a company
9. Mostly people get awareness about the schemes of company from sales person at store.
10. Customers prefer Bajaj finserv lending because of easy approval.
11. According to large number of customers EMI card is not beneficial for them
12. The customers who prefer EMI card because it makes availability of product across the country.
13. The customers who don’t prefer EMI card because of extra charge.
14. Maximum number of customers is demanding other types of loan from company.
15. The loan preference of customers is for 2 wheeler loan of other brands
16. According to maximum number of customers healthinsurance is not beneficial for them.
17. According to maximum number of buyers, 0% finance facility should be available for all products

37
Profit Making Strategy

Availability of FMCD loan at 0% rate of interest is a great attraction for customers. They always think how
company is

Earning profit. But it is a strategy which is followed by Bajaj Finserv Lending. When company promotes
any consumer durable product then it counts 7% of selling price as an interest from the manufacturer within
a month , while company takes down payment around 35% of selling cost from customers, meaning is that
company finances only 65% (100-35) amount Of selling price while takes interest 7% from manufacturer
on selling price .

Along with this earning, company sells a EMI {Existing Member Identification} card to every loan
customer at the price Rs. 349. With strategy company is earning around 20% profit from the core product.
Company also sells extended warranty schemes in which Bajaj finserv gives one year extra warranty after
manufacturer’s warranty period and health insurance schemes to the same customers.

If any customer does not pay EMI regularly then company charges Rs.350 as a bouncing charge and Rs.150
as late penalty. By including cross selling of insurances, extended warranty and other charges, company is
earning around 35% profit from each FMCD product.

With this profit making Strategy Company is taking higher growth in the finance industry and became
Largest Consumer electronics lender in India. The largest new client acquirers in India, and profit went by
1,279cr. in FY16.

38
 CHAPTER -8
CONCLUSION

39
Conclusion

1. FMCD Loans are preferred by all types of persons, families and different occupants.
2. Reason for FMCD Loan attraction is 0% rate of interest.
3. Companies are not running any awareness/promotional campaign.
4. FMCD loan is mostly influenced tomaintain social status and enjoying comfortable life.
5. Company is earning huge profit by pursuing customers that we are not earning anything from
You.
6. Customers are avoiding EMI card because of extra charge.
7. Customers are not in the favor of health insurance service of the company

40
 CHAPTER -9

LIMITATIONS OF
THE PROJECT

41
 LIMITATION OF STUDY:
Some of the difficulties and limitations by me during my training are as follows:

1. Lack of awareness among the people-this is biggest limitation found in this sector. Sometime peoples do
not have enough time to give the response.so sometimes people used to avoid survey.

2. Perceptions of the people towards FMCD Loan people have different-different perception in market
regarding the any financing company. So make positive strategy for the market.

3. Increase competition- Today the competition in the financial sector has become very stiff. Currently there
is a huge competition in financial sector who are providing the same offerings such as FMCD loan at 0%
interest with easy approval.so it was very difficult to convince customers.

42
 CHAPTER-10
SUGGESTIONS

Suggestions
43
1. Company should not charge the price of EMI card
2. Company should provide some return of Insurance value like LIC.
3. Company should expand the number of stores from metro cities to district level&rural areas.
4. Company should make availability of all FMCD products at 0% finance
5. Company should consider about another types of loan like Education loan

44
 CHAPTER -11
ANNEXURE

BIBLIOGRAPHY:

WWW.GOOGLE.COM

45
www.bajajfinservlending.in

https://www.bajajfinserv.in

www.swotanalysis24.com

Questionnaire for Customer

1. What is Gender?

a. Male b. Female
46
2. What is your Age Group?

a. Below 25 Years b. 25 years – 35 years c. 35 years – 50 years

d. 50-60 Years e. Above 60 Years

3. What is your Occupation?

a. Pvt. Employee b. Retired c. Self employed

d. Govt. employee

4. What is your Income Group (p. m)?

a. Below than 20,000 b. 20,000-50,000 c. 50,000 – 75,000

d. More than 75,000

5. Why do you prefer FMCD Loan?

a. Easy Comfortable Life b. Easy to manage monthly expenses

c. Easy to manage social status d. Savings are not affected

6. Which of the following Factor influence or suggest you to buy a FMCD product on loan?

a. Family member b. Friend & colleagues

c. yourself d. Any other…………..

7. Which of the following factors influence you to purchase a FMCD product on loan ?

a. Income b. Interest Rate

8. What you expect from a FMCD Loan company ?

a. No down payment b. Low Interest Rate c. Low EMI

d. Low down payment

9. How do you get awareness about Bajaj Finserv Lending?

a. Through News Paper b. Friends / Acquaintances

c. By sales Executive at the store

10. Why do you prefer Bajaj Finserv Lending?

a. Easy approval b. 0% Interest Rate

c. Low EMI d. Low down payment

47
11. Is EMI card of Bajaj Finserv Lending Beneficial for you ?

a. Yes b. No

12. If Yes, Why?

a. Reduces document Requirements

b. I.H.O Facility

c. Make availability of the product across the country

d. Any other……………

13. If No, Why?

a. Extra charge b. No problem with documents

c. Don’t Required I.H.O facility d. Any other…………….

14. Do you want also any other type of Loan from Bajaj Finserv Lending?

a. Yes b. No

48