A

PROJECT REPORT
ON
CONSUMER BEHAVIOR TOWARDS ZERO CREDIT LOAN
AT
BAJAJ FINSERV LIMITED

BY
ARJUN PATIDAR
UNDER THE GUIDENCE OF
Mr. SUNIL VERMA
SUBMITTED TO
INDIRA INSTITUTE OF MANAGEMENT PUNE
IN PARTIAL FULLFILLMENT OF THE REQUIREMENT FOR THE AWARD
OF THE DEGREE OF
POST GRADUATE DIPLOMA IN MANAGEMENT (PGDM)
YEAR 2011 TO 2013

FOR
INDIRA INSTITUTE OF MANAGEMENT

PUNEExecutive

Summary

Pre-sales activity is one of an important tool to promote sales of FMCD.

Pre-sales finance is the integral part which enables more sales of high volume items, (Consumer
Durables) and it ensure higher turnover for any retailer.
BAFL (Bajaj Finserv Ltd.) is a pre-sale financial institution which provides finance to customers
after having proper mortgage for its company.
The scheme by which finance companies give Loan to customer at MRP (Market Price) and are
the one at which gets Manufacturer and Retailer proper profit margin and simultaneously the
finance companies also get proper return on its investment from the customer.
FMCD (Fast Moving Consumer Durable) are high value product and more than 50% of FMCD
are sold via a product finance company.
My Summer Internship Report (SIP) is analysis of customer behavior towards Zero Credit
Loan. In which my objective is to understand the Customer behavior, Market trend in Zero
Percent Finance and product sales growth trend in the financial sector.

Declaration

I Arjun Patidar student of PGDM-Marketing : Reg. No. 11MK15 hereby declare that the
project work titled Customer Behavior towards the Zero Credit Finance or Loan, which has
been submitted to Indira Institute of Management Pune, is an original work of the
undersigned and has not reproduced from any other source.

Date
Place

Name- Arjun Patidar

Reg.No. - PGDM/32

Acknowledgement

Zero Credit Loan is a pre-sales promotion feature added by Bajaj Financial services, to
provide high value customer durable at Market Price (MRP). The interest component is taken
care by dealers margins and schemes provided by FMCDs company.
CUSTOMERS BEHAVIOR TOWARDS ZERO CREDIT LOAN. It has been my
privilege to have a team of project guide who have assisted me from the commencement of this
project. The success of this project is a result of sheer hard work, and determination put in by me
with the help of my project guide.
I am obligate with continues assistance by external guide (Mr. Shreeram Birla) and my
internal guide (Mr. S.K. Verma).
I am also thankful to Mr. Pranav Vyas ( Our HOD) and Dr. Pandit Mali (Director of
Indira Institute of Business Management) for their continues guidance and blessings.

Table of Contents
Chapter
Number
1
2
3
4
5
6
7
8
9
10
11
12
13

Title

Page

Introduction
Industry Overview
Company Overview
Objectives of the Study
Research Methodology
Review of Literature
Data Analysis and Interpretation
Findings
Limitation of the Study
Conclusion
Suggestion/Recommendation
Bibliography
Annexure

Number
6
7
13
21
22
25
32
47
48
49
50
51
52

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 increase in sales of the products. Festival time like Deepawali, holi, Ganesh pooja
5

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 can say that FMCD Loan market is very
huge, prosperous, and attractive with higher risk.

Industry Overview

The Indian financial services industry has a lot of scope for further penetration, and thus has
immense scope and potential to grow exponentially. The online genre, mobile explosion,
emergence of social media platforms, technologies like cloud computing and increasing pace of
convergence and interconnectivity of devices are intensely driving the growth of this industry.
These are playing pivotal roles in transforming the way financial services are delivered to the
end-consumer. Further, financial institutions are revamping their operational infrastructure and
business delivery models.
Financial services industry mainly comprises the BFSI industry, that is, banking, financial
services (such as mutual funds) and insurance. Key developments and performance pointers
pertaining to each of these sub-segments are discussed in this overview.

Insurance Sector
There are 24 life insurers in India with about Rs 15 trillion (US$ 292.5 billion) in assets.
According to data released by the Insurance Regulatory and Development Authority (IRDA), the
life insurance industry collected Rs 89,655.83 crore (US$ 17.5 billion) during April 2011February 2012 by writing new policies while the insurers sold about 35.12 million policies
collectively. Private players sold seven million policies.

The general insurance industry continued with its growth trajectory as the gross written premium
grew 24.03 per cent during 2011-12 against the year-ago period.

Banking Services
According to the world's largest rating agency, Standard & Poor (S&P)'s Ratings Services,
India's banking system has a high level of stable, core customer deposits supported by the
system's good franchise, extensive branch networks, and large, yet growing, domestic savings.

According to the Reserve Bank of India (RBI)'s 'Quarterly Statistics on Deposits and
Credit of Scheduled Commercial Banks', September 2011, Nationalised Banks, as a
group, accounted for 52.2 per cent of the aggregate deposits, while State Bank of India
(SBI) and its associates accounted for 21.8 per cent. The share of New private sector
banks, Old private sector banks, Foreign banks and Regional Rural banks in aggregate
deposits was 13.7 per cent, 4.8 per cent, 4.6 per cent and 2.9 per cent, respectively.
With respect to gross bank credit also, nationalised banks hold the highest share of 51.6
per cent in the total bank credit, with SBI and its associates at 22.1 per cent and New
Private sector banks at 13.8 per cent. Foreign banks, Old private sector banks and
Regional Rural banks held relatively lower shares in the total bank credit with 5.2 per
cent, 4.8 per cent and 2.5 per cent, respectively.

Another statement released by the RBI stated that bank deposits grew 13.4 per cent to Rs
60.72 trillion (US$ 1.18 trillion) in the fiscal 2011-12 (the year to March 23, 2011) while
loans and advances grew 17.08 percent to Rs 47.54 trillion (US$ 927.16 billion).
8

Mutual Funds Industry in India

The Rs 6.70 trillion (US$ 130.66 billion) Indian mutual funds (MF) industry has 44 asset
management companies (AMCs). Recent data released by the Association of Mutual Funds in
India (AMFI) indicated that average assets under management (AUM) reported by these fund
houses amounted to Rs 6,68,824 crore (US$ 130.33 billion) in 2011-12.
HDFC Mutual Fund maintained its top position as the country's biggest MF with an average
AUM of Rs 89,879 crore (US$ 17.51 billion), followed by Reliance MF (Rs 78,112 crore [US$
15.22 billion]), ICICI Prudential MF (Rs 68,718 crore [US$ 13.39 billion]), Birla Sunlife MF (Rs
61,143 crore [US$ 11.92 billion]) and UTI MF (Rs 58,922 crore [US$ 11.48 billion]).

Private Equity (PE) and Mergers & Acquisitions (M&A) in India

India Inc witnessed 202 merger and acquisition (M&A) deals worth US$ 9.4 billion during the
first quarter of 2012. According to Ernst & Young (E&Y)'s latest transactions quarterly report,
deals in January-March 2012 were 22 per cent higher than those of October-December 2011
quarter in terms of volume and 4.5 times higher in terms of value. Domestic deals dominated the
M&A space as they accounted for 63 per cent of the total number of deals and contributed 88.4
per cent of the total disclosed deal value for the quarter.
According to experts, M&A landscape is likely to experience intense activity in the coming
months, owing to improving stock markets and better availability of finance options.

Private equity (PE) and venture capital (VC) investors infused a capital of US$ 1.88 billion
across 90 deals during the reported period.

Foreign Institutional Investors in India

According to the data released by Securities and Exchange Board of India (SEBI), net
investment in equities made by foreign institutional investors (FIIs) stood at Rs 47,935 crore
(US$ 9.34 billion) during the financial year ended March 31, 2012. During the reported fiscal,
foreign fund houses injected Rs 49,053 crore (US$ 9.56 billion) in the debt market taking the
collective net investments by FIIs in stocks and bonds to Rs 93,725 crore (US$ 18.26 billion).

Recent Developments

India has launched the country's first domestic payment card network, RuPay, to compete
with multinational Visa Inc. and Master card Inc. The new development will not only
help banks reduce cost of issuing a debit card but will also lead to expansion of payment
network in rural areas. National Payments Corp of India Ltd (NPCI), the nodal agency to
manage and promote RuPay, has stated that 200,000 RuPay cards have already been
issued and the target is to have 10 million debit cards under the brand by March 2013.

10

Stating India as 'extraordinarily attractive investment destination', PE firm Bain Capital

LLC has announced that it will infuse about US$ 800 million in appropriate proposals
across four investment deals during 2012-16.

L&T Finance has decided to buy Fidelity Worldwide Investment's Indian mutual fund
business. The deal would boost L&T's assets to Rs 13,500 crore (US$ 2.63 billion),
making it the 13th biggest fund house and the 10th largest on the basis of equity.

In a recent announcement, the RBI has granted FIIs to invest in primary issuances of
companies' non-convertible debentures (NCDs), provided these papers are scheduled to
be listed on the stock exchanges within 15 days of being issued. If the instrument, that is
the NCD, does not get listed within 15 days, the foreign investor concerned would have
to sell the securities to a domestic investor.

Government Initiatives
In its Budget for 2012-13, the Government has earmarked a capital of Rs 15,888 crore (US$ 3.11
billion) to be infused in public sector banks, regional rural banks and other financial institutions.
Apart from this, the Government is also planning to set up a financial holding company that will
raise funds for public sector banks.
Furthermore, the RBI has liberalized regulations pertaining to FCAs to provide operational
flexibility to Indian entities making overseas direct investments. After satisfying stipulated
requirements and conditions, Indian entities can open, hold and maintain FCAs abroad that
would simplify the process of making overseas direct investments.
11

Road Ahead
According to a report by the Boston Consulting Group (BCG) India, prepared in association with
a leading industry organization and Indian Banks Associations (IBA), Indian banking industry
would be the world's third largest in asset size by 2025 and mobile banking would become the
second largest banking mode after ATMs. Furthermore, owing to the positive eco-system of the
industry and regulatory and Government initiatives, mobile banking is anticipated to enhance
from 0.1 per cent of transactions in a 45 per cent financial inclusion base in 2010 to 34 per cent
of the transactions with 80 per cent rural inclusion base by 2020, as per the report.
While the Indian Government projects that qualified foreign investors (QFIs) would invest US$
50-75 billion in India's equity and bond markets, G Chokkalingam, Executive director and CIO,
Centrum Wealth Management, believes that Indian markets would witness record inflows,
probably to the extent of US$ 30 billion, by FIIs in 2012.
Such positive forecasts are being made owing to monetary expansions in the West and
considering that India would remain the second-fastest growing economy in the world.

12

Company Overview

13

Bajaj Finance Ltd. (BAFL) was incorporated as a 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. 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.
14

The present Paid-up Capital of the Company is Rs. 365,960,760. Bajaj Finance Ltd. has its
headquarters at Pune (MH) and has more than 63 branches spread across the country.
Bajaj Finance Ltd offers loans for various needs. The company offer loans for Bajaj
Auto Two Wheelers under the name of Bajaj Finance Ltd. The company Consumer
Durable Loans, Personal Loans, Loan against Property, Small Business loans, construction,
Equipment Loans, Loan Against Securities and Insurance services under the name of Bajaj
Finserv Lending.

Bajaj Finserv Lending is one of the most diversified NBFCs in the market catering to more than
5 million customers across the country. Apart from being a well recognized organization. The
company product offerings include Consumer Durable Loans, Personal Loans, Loan against
Property, Small Business Loans, Two-wheeler and Three-wheeler Loans, Construction
Equipment Loans, Loan against Securities and Insurance Services. Bajaj Finance Ltd unique
products feature across all categories and offer a compelling value proposition to their customers.
The company strong presence in the Indian market for over 23 years has enabled to establish a
strong foothold here and the company aim to continuously provide their customers with premium
service and exclusive benefits.
Bajaj Finserv Group companies share common values of Reliability, Innovation and Efficiency
and

provide

customers

with

high

quality

products

and

Key focus areas for Bajaj Finserv are Lending, Investment, Protection and Advisory.

Business Segment
15

services.

_ Two and Three Wheeler Financing

_ Consumer Durables Financing
_ Personal Loan Cross-Sell
_ Personal and Small Business Loans
_ Vendor Financing
_ Mortgages
_ Construction Equipment Finance
_ Infrastructure Finance

16

17

Products & Services

Personal
Lifestyle Product Finance
Lifestyle products include the categories such as Home improvements, Modular
Kitchens, Jacuzzi & Bathroom Fittings, Kitchen Equipments, Home furnishings,
Luxury watches, Digital lifestyle products, High-end Cameras, Tablet PCs, Smart-phones and
many more.
Consumer Durable Loans
Bajaj Finserv Lending is one of the leading financiers in the market offering consumer durable
loans on EMI. Now you 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.
Personal Loan
Bajaj Finserv Lending personal loans can be availed for personal use without providing security
or guarantors. The company offer loans that are convenient, flexible, come with fast processing
and have superior features like Nil prepayment charges.
Credit Card
Bajaj Finserv Standard Chartered Credit Card comes in 2 variants - the World Credit Card and
the Platinum Credit Card.

18

Business
Small Business Loans
Small Business Loans come with fast approval and hassle free documentation. Like
manufacturing sector, service industry or any other field.

Loan Against Property

Bajaj Finserv Lending offers Loan against Property which helps you avail a loan between Rs. 20
lacs and Rs. 20 crores, which can be paid over a term of up to 15 years, in a convenient manner
by mortgaging the property as collateral.
Loan against Securities
The company has an approved selection of shares and mutual funds against whom offer loan
disbursement. The loans are available from Rs. 50 lacs to Rs. 10 crores and for a maximum
period of 24 months.
Construction Equipment Finance
The company offer finance for various infrastructure related equipments in the field of
Construction, Mining, and Material Handling businesses

19

Stable and Deep Management Structure

20

Achievements & Milestones

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, It is also rated high in the following
programs:

P1+ rating from CRISIL for Short-Term Debt Program

AA+/Stable from CRISIL and LAA+ from ICRA for Long-Term DebtProgramme
It has a network of over 2,500 Bajaj Auto and consumer durable dealerships and over 63 branch offices
throughout the country to cater to all the requirements of their customers. It has earned the trust
and loyalty of over 50 lakh satisfied customers across the country.

21

SWOT Analysis of Bajaj Auto Finance Limited:

Strengths:
1. Has network across 200 towns
2. Fundamentally Strong with good paying Capabilities.
5. Received the prestigious "Business Leader in Consumer Finance", award by NDTV.

Weakness:
1. Lack of penetration in rural areas
2. Smaller Infrastructure as compared to established players

Opportunities:
1. Growing rural market potential
2. Urban Youth with growing income

Threats
1. Economic crisis and economic instability
2. Entry of new NBFCs in the sector
3. Increasing awareness amongst people about securing their future

22

OBJECTIVES

To have an overview of the schemes of Bajaj Finserv Lending.

To know the customers Comments or Suggestions on policies of Bajaj Finserv Lending.
To get a firsthand knowledge as regards to the proper implementation of analyzing

customer behavior.
To provide better suggestion regarding consumer to Bajaj Finserv Lending.

23

RESEARCH METHODOLGY

The task of data collection begins after a research problem has been defined and research design/
plan chalked out. While deciding about the method of data collection to be used for study, the
researchers should keep in mind two types of data via .primary and secondary.

Primary data:
Primary data are obtained by a study specifically designed to fulfill the data of the problem at
hand .primary data is collected during the course of doing experiment by using various method
of data collection such as interview method questionnaires method .Various methods of
collections of primary data
1.

Observation method

2.

Interview method

3.

Questionnaires method

4.

Collection of data through schedules

Researcher has used questionnaires method as collection of primary data.

In this report the numbers of respondents for the study are 100. In which most of them were
purchaser of goods, visitors and some were existing customers came for post service.

24

Another type of data collected is secondary data.

Secondary data:
Secondary data means information that is already available. Secondary data means which are
not originally collected but rather obtained from published data are available in:
a) Various publications of central, state and local governments
b) Various publications of foreign govt. or of international bodies and their subsidiary
organizations.
c) Technical and trade journals.
d) Books and magazines.
Secondary data is collected with the help of:

Company documents,
Books
Published information
Webpage

Sampling technique
In research universe refers to total no. of particular items in a defined area on a particular time. In
research generally it is not possible to select whole population for survey. So researcher uses
sampling technique for research. The selection process of sampling is called sampling
technique.
Types of sampling technique:-

25

1. Probability sampling
Simple random sampling
Cluster sampling
Systematic sampling
Stratified sampling
2. Non probability sampling
Quota sampling
Judgment sampling
Convenience sampling
Deliberate sampling

26

REVIEW OF LITERATURE

The literature review provides valuable insight and help in deciding the issue on which data has
to be collected. Here one source will lead to another. The sources that are collected should be
relevant and well conversant with the theories and records. The review of literature provides
guidance in removing the gaps in the theories or whether the existing studies relevant to the
problems under study are inconsistent with each other. The study on problem provide the
difficulties which are present in the existing study and to wash out such difficulties it becomes
necessary to go for literature review.
Consumer behavior is the study of when, why, how, and where people do or do not buy
a product. It blends elements from psychology, sociology, social anthropology and economics. It
attempts to understand the buyer decision making process, both individually and in groups. It
studies characteristics of individual consumers such as demographics and behavioural variables
in an attempt to understand people's wants. It also tries to assess influences on the
consumer from groups such as family, friends, reference groups, and society in general.
Customer behavior study is based on consumer buying behavior, with the customer
playing the three distinct roles of user, payer and buyer. Research has shown that consumer
behavior is difficult to predict, even for experts in the field. Relationship marketing is an
influential asset for customer behavior analysis as it has a keen interest in the re-discovery of the
true meaning of marketing through the re-affirmation of the importance of the customer or buyer.
A greater importance is also placed on consumer retention, customer relationship management,

27

personalization, customization and one-to-one marketing. Social functions can be categorized

into social choice and welfare functions.
Each method for vote counting is assumed as social function but if Arrows possibility
theorem is used for a social function, social welfare function is achieved. Some specifications of
the

social

functions

are

decisiveness, neutrality, anonymity, monotonicity, unanimity,

homogeneity and weak and strong Pareto optimality. No social choice function meets these
requirements in an ordinal scale simultaneously. The most important characteristic of a social
function is identification of the interactive effect of alternatives and creating a logical relation
with the ranks. Marketing provides services in order to satisfy customers. With that in mind, the
productive system is considered from its beginning at the production level, to the end of the
cycle, the consumer (Kioumarsi et al., 2009).
Introduction
Bajaj Finserv Lending is one of the leading financiers in the market offering consumer durable
loans on EMI. Now we 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.
Features & Benefits
Features

Avail loans ranging from Rs. 7,500 to Rs. 5, 00,000 for Washing Machines, Refrigerators,
Colour TVs, LCDs and other consumer durables.

28

Apply Online or walk in to one of the Bajajs Dealer Partner showrooms and get 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 upto 6 times in a calendar year at
any interval with the minimum amount per prepay transaction being not less than 3 EMIs
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 cheque.

Pre-approved personal loan offers for existing customers.

Eligibility & Documentation

Eligibility

If you are a salaried person your age should be between 21 years to 60 years. If you are Self
29

Employed your age should be between 21 years to 65 years.

Documents.
Documents required

Photo Id Proof

Residence proof

One Cheque 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 TypeOD/CC

Fees & Charges

30

31

example of TV he/she sees two to five brands then he/she decide a product). After deciding the
product owner of showroom or authorized person fixed the price (after negotiating with customer
to authorized person).
At that time the authorized person of Bajaj Finserve lending will come to the customer and give
the information about finance.
There have some eligible criteria to get a loan. For these there have so many surrogating systems
and for every customer they have to submit photo copy of some documents.
When a customer wants to buy the product through finance he/ she have to go following
procedure:

Following is the process of Lending and Product Delivery to the customer through High
Technology Orientation & Robust Risk Management

32

DATA ANALYSIS AND INTERPRETATIO

33

Q1. Do you prefer to use credit (Zero Percent Finance) for buying White Goods Products?
a) Yes
b) No

[ ]
[ ]
Table no -1

Options

Response of consumer

Percentage (%)

Yes
No

90
10

90
10

Graph-1

Customer Preference to use Credit

10%
YES
NO
90%

Data Interpretation: - Most of customers prefer to purchase high value customer durables at
Zero Finance. Due to Zero Credit Loan the middle & lower middle class customers are able to
propones their purchase.
Q2. If the answer of before said question is yes, then which of the following (financial) product
you prefer most?
34

a) Zero Percent Finance Scheme

b) Loan
Table no -2

Options

Response of consumer

Zero percent finance scheme 99

Loan
1

Percentage (%)
99
1

Graph- 2

Financial Products

1%

Zero Percentage of
finanace Scheme
Loan

99%

Data interpretation: - Zero Credit loan is a sales promotion tool and technique which helps to
increase sales volume. Financial service companies also earn due to this Zero Credit Loan
Q3. Please select your credit requirement in general when you purchase White Goods or
Automobiles or Other related product on credit.
A) 20000

B) 35000

C) 50000

D) 75000

Table no - 3
35

E) More than 100000

Option
20000
35000
50000
75000
More than 100000

Response of consumer
10
15
22
25
28

%
10
15
22
25
28

Graph-3

Customer Credit Requirement

30
25
20
15
10
Response of Customer 5
0

Credit Amount (Rs)

Data interpretation: - High value prestigious branded products are mostly sold with the help of
pre-sales finance availability. It increase customer purchase and financial services company also
get more profitable turnover.
Q4. In general, while opting 0% credit finance, which of the following product range you
prefer?

Consumer durable (TV / Washing Machine / AC etc.)

Mobile phones/camera
House Interior related
If other specify.......................................
Table no - 4
Option

Response of consumer
36

Consumer durable
Auto( Two wheeler)
House Interior related
If other

50
20
10
20

50
20
10
20

Product range of Credit Finance

Re sponse of Custome r

50
45
40
35
30
25
20
15
10
5
0

Data interpretation:- Customer Durables ( T.V., LCD, Refrigerators are mostly sold in finance
only. High value Auto (Two Wheeler) and Home Interiors also needs finance as presales tool to
increase sales.
Q5. Which of the following Finance company do you prefer while selecting Credit Finance?

Bajaj Finance
Future group
Tata Finance
If other please specify
Table no - 5

Option
Bajaj Finance
Future group
Tata Finance
If other

Response of consumer
65
5
20
10
37

Percentage (%)
65
5
20
10

Graph -5

Credit Finance Company

Bajaj Finance

10%

Future group
20%
5%

Tata Finance
65%

If other

Data interpretation:- out of 100 consumer 65% of consumer choose Bajaj finance for credit
finance because Bajaj finance have different types of surrogate through consumer can easily get
finance other dont have that much surrogates as compare to Bajaj finance.

Q6. What comes in your mind first while selecting finance for a purchase of product?

Rate of interest
Tenure of Credit
Hidden charges
Schemes
Table no - 6
Option
Rate of interest
Tenure of Credit
Hidden charges
Schemes

Response of consumer
25
20
40
15

38

Percentage (%)
25
20
40
15

Graph - 6
40
35
30
25
20

Customer Response

15
10
5
0

Data interpretation:- out of 100 consumer 40% of them always think about hidden Charges
added to their Emi, and 25% of consumer think for what is rate of interest ,and then about tenure
(months), after at the end different finance scheme.
Q7. Do you think there is any risk involved while opting for Credit Finance?

Yes
No

If yes please specify

Table no - 7
Option
Yes
No

Response of consumer
60
40
Graph- 7

39

Percentage (%)
60
40

Risk Involved for Credit Finance

20%

Yes
No

80%

Data interpretation:- out of 100 consumer 60% of them thinks that there is risk involved while opting
for finance, risk like rate of interest, hidden charges, these things only happen to new customer, remaining
40% dont things as such some risk involve.

Q8. Have you gone through any obstacle (s) while paying back your EMI?

Yes
No

If yes please specify

Table no - 8
Option
Yes
No

Response of consumer
30
70
Graph - 8

40

%
30
70

Obstacle while Repaying (EMI)

33%

Yes
No

67%

Data interpretation:- out of 100 consumer 30 % of consumer of consumer have gone through
obstacle during their Emi like excess amount cut off , & remaining 70% have Said No, they are
not facing any problem while paying the EMI.
Q9. Overall, how satisfied are you with Services offered by Bajaj Finance?

Satisfied
Neutral
Dissatisfied
Table no - 9
Option

Response of consumer

Percentage (%)

Satisfied
Neutral
Dissatisfied

55
15
30

55
15
30

Graph -9

41

Level Of Satisfaction
60
50
40

Customer Response 30
20
10
0

Satisfied

Neutral

Dissatisfied

Data interpretation: - out of 100 consumer 55% consumer are satisfied with services offered
by Bajaj finance, and 30% are dissatisfied due excess Emi cut And remaining are neutral.

Q10.Did Zero Percent Finance Scheme influence your buying pattern?

Yes
No

If yes please specify in what way

Table no - 10
Option
Yes
No

Response of consumer
80
20

42

%
80
20

Influence in Buying Pattern by Credit Finance

20%

Yes
No

80%

Data interpretation:- out 100 consumer 80% of consumers buying behaviors effect due to 0%
scheme, remaining 20% said no.

Q11. Please specific why do you opt for Credit finance? (Can select more than one option)

Easy availability of Credit

Attractive Interest Rate
Easy EMI with no Interest Rate (Zero % Finance)
Very Less Documentation
Increases buying power
A (can purchase more than one product at same time)
B (can purchase higher price product)

Table no - 11
Option
Easy availability of Credit
Attractive Interest Rate
Easy EMI with no Interest Rate
Very Less Documentation
Increases buying power A
Increases buying power B

Percentage (%)
10
10
40
10
20
10
43

Reason For Opting Credit finance

45
40
35
30
25
20
15
10
5
0

Customer Response

Data interpretation:-out of 100 consumer maximum number of consumer opt for credit finance
because of Easy Emi with no interest rate after that consumer opt due to buy more than one
product.

44

Q12. Do you prefer to opt for the other offers with the Credit Finance? (Can select more than one
option)

EMI card
Health insurance
Extended warranty
Any other Offer ..
Table no - 12

Option
EMI card
Health insurance
Extended warranty
Any other Offer

Response of consumer
50
10
30
10

%
50
10
30
10

Graph -12

Other Offer With Credit Finance

Customer Response

50
40
30
20
10
0

Data interpretation:- out of 100 consumer 50% of them opt for EMI card because of future
benefits while taking credit finance, 30% opt for ext. warranty ,10% for health insurance,10% for
other offer.

45

Q13.Do you think company should change schemes at regular interval?

Yes
No

If Yes please specify

Table no - 13
Option
Yes
No

Response of consumer
70
30

%
60
40

Graph-13

Requires Changes in Schemes

No; 30%

Yes; 70%

Data interpretation:- Out of 100 consumer 70% thinks that company should change at regular
interval due to Change in scheme variety, remaining 30% Said No due to changes in tenure
(month).

46

Q14. Please comment on - What is your expected time frame for getting credit finance (after
completion of documentation process)?
Data interpretation: - Average answer from consumers was 10 to 15 min.

47

Findings

Most of customers are satisfied with the pre sales financial services of loan provided by

Bajaj Finserv Limited.

It has been found that most of middle & lower class buyers need Zero Percent Finance

for their purchase of durables.

The banks security criteria for loan application sanctions are too rigid; many genuine,

honest and needy customers are deprived of loan assistance for their purchases.
Poor customers could not bear additional processing charge on and above MRP, so
Zero Percent Finance has public service utility too.

48

LIMITATION OF PROJECT
Followings are the limitations while completing this research:

The time available for doing this report was not sufficient because the term of Summer
Project was 60 days only, which was insufficient for observing bigger data of dealers and

customers.
There was little bit of language problem while handling customers.
Internet server problem during Log in.
Problems occur while swiping EMI card.
Most of the customers are not willing to fill the questionnaire.

CONCLUSION

Maximum Consumer are satisfied with the services provided by Bajaj finserv.
0% scheme affect consumer buying behavior.
According to analysis most consumer are satisfied but some are not satisfied with bajaj

finance.
If customer comes to take one product, when he comes to know about 0% finance he take
more than one product or he/she takes higher price product.
49

Many customers dont know about 0% finance scheme.

Consumers are not aware of insurance scheme provided with Bajaj credit finance.
Consumers are not ready to pay the extra charges (processing fees).
0% finance scheme effect consumer buying pattern.
Most of consumer is not aware of extended warranty provided by Bajaj finance.
Due to 0% finance scheme consumer regularly (every 4-5 months) purchase product.
Consumer is ready to take credit finance due to 0% of rate of interest.

50

RECOMMENDATIONS

Bajaj finance should do more promotional activities for awareness of 0%

Finance scheme.
Bajaj finance should introduce some special schemes for their existing customers.
Bajaj finance should not change tenure frequently because it affect consumer buying

pattern.
Processing fees and DBD on some product are high so it should be low because

consumers are not ready to pay that.

Bajaj finance should introduce Zero Rs. down payment schemes to our EMI card

customers.
Bajaj finance should do advertisement n newspaper, road events to increase awareness
and sales.

51

BIBLOGRAPHY

Website: - www.bajajfinance.com
www.bajajfinservlending.in
www.wikipedia.com
www.economictimes.indiatimes.com

Books: - Introduction to marketing by Philip kotler

52

Questionnaire
Personal Detail
The information you are providing in below survey will be treated strictly confidential and will
be used only for analysis of Consumer buying pattern for Credit Finance Industry. You are
requested to supply below data for the said purpose.
Name: (optional) ______________________________________________
Age:

] 18-24 Year

] 25-31 Year

] 32-38 Year

] 39-45 Year

] 45 Year & Above

] Male

] Female

Gender:

Occupation:
[

] Student

] Govt. Service

] Businessman

] Housewife

[
[

] Professional

] Pvt. Service

] other please specify ______________

Monthly Income (please tick the appropriate option)

[

] Less than 20000

] 20000 to 35000

53

] 35000 to 50000

] More than 50000

Q1. Do you prefer to use credit (Zero percent finance or Loan) for buying White Goods /
Automobiles related products?
c) Yes b) No
If No please specify
..
..
Q2. If the answer to aforesaid question is yes, then which of the following (financial) product
you prefer most?
b) Zero Percent Finance Scheme b) Loan
Q3. Please select your credit requirement in general when you purchase White Goods or
Automobiles or Other related product on credit.

20000
35000
50000
75000
More than 100000

Q4. In general, while opting credit finance, which of the following product range you prefer?

Consumer durable (TV / Washing Machine / AC etc)

Auto (Two wheeler)
House Interior related
If other specify.

Q5. Which of the following Finance company do you prefer while selecting Credit Finance?
54

Bajaj Finance
Future group
Tata Finance
If other please specify

Q6. Which of the following you prefer while selecting finance for a purchase of product?

Rate of interest
Tenure of Credit
Hidden charges
Schemes

Q7. Do you think there is any risk involved while opting for Credit Finance?

Yes
No

If yes please specify .

Q8. Have you gone through any obstacle (s) while paying back your EMI?

Yes
No

If yes please specify

Q9. Overall, how satisfied are you with SERVICES offered by various Finance Companies?

Satisfied
55

Neutral
Dissatisfied

Q10.Did Zero Percent Finance Scheme influence your buying pattern?

Yes
No

If yes please specify in what way

...............................................

Q11. Please specific why do you opt for Credit finance? (can select more than one option)

Easy availability of Credit

Attractive Interest Rate
Easy EMI with no Interest Rate (Zero % Finance)
Very Less Documentation
Increases buying power (can purchase more than one product at same time)
Increases buying power (can purchase higher price product)

Q12. Do you prefer to opt for the other offers with the Credit Finance ? (can select more than one
option)

EMI card
Health insurance
Extended warranty
Any other Offer ..

56

Q13.Do you think company should change schemes at regular interval?

Yes
No

If Yes please specify

Q14. Please comment on - What is your expected time frame for getting credit finance (after
completion of documentation process)?

57