Summer Internship Project Report

“ROLE OF EXTENDED WARRANTY IN CONSUMER DURABLE

PRODUCTS AT BAJAJ FINSERV”

A report submitted to
Asian Business School, Noida
As a partial fulfillment of Full time
Post Graduate Diploma in Management (PGDM)
(Approved by AICTE, Ministry of HRD)

Submitted to: Submitted By:

MS. VEENU ARORA KARAN KUMAR
ASIAN BUSINESS SCHOOL ABS/PGDM/JULY17/073
NOIDA Batch: 2017-19

ASIAN BUSINESS SCHOOL

A2, Sector-125, Noida
Website: www.abs.edu.in
 CERTIFICATE

This is to certify that KARAN KUMAR of Asian Business School (ABS), Noida has

undergone Summer Internship in our company on Role of extended warranty in consumer

durable products at Bajaj Finserv. The project work done by the candidate is original and

has worked under my guidance. The candidate has undergone training from 05.05.2018

to15.06.2018.

Tushar Chandel
Date: (Seal/Stamp of the Organization)
 CERTIFICATE

This is to certify that the dissertation entitled Role of extended warranty in consumer durable
products at Bajaj Finserv is submitted to Asian Business School, in partial fulfillment of the
requirements for the award of the Post Graduate Diploma in Management, and is a record work
by KARAN KUMAR ABS/PGDM/JULY17/073. The project has been done under my
supervision & guidance and the project has not formed the basis for the award of any degree or
other similar title to any candidate.

SIGNATURE SIGNATURE
EXTERNAL EXAMINER INTERNAL EXAMINER
 Acknowledgement

I consider it a privilege to express a few words of gratitude and respect to all

who guided and inspired me in successful completion of this project .

I am overwhelmed with pleasure to express my gratitude towards Mr. VICKY

MEHTA (Marketing officer) BAJAJ FINSERV LENDING . For granting this
project to me and giving me an opportunity to work with such an esteemed
organization .

It is my sincere duty to do my best, so as to recognize as one amongst the most

successful professional ,which I always strive to be. This bring along and frame to
my beloved institution, the ASIAN BUSINESS SCHOOL .

I also extend particular thanks to our Director Dr. LALITYA VIR

SRIVASTAVA and my Project Guide Ms. VEENU ARORA for guiding me in my
project. I would also like to thank all the teaching and non-teaching staff member
and all others who helped me directly or indirectly in the successful completion
of this project .

There is no love like parents. I pay my most sincere regards to my parents ,deserves
a very special word of appreciation for their invaluable support ,encouragement
and pains taking efforts, without which this goal would have been a much difficult
.

KARAN KUMAR
PGDM 2017-19

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 DECLARATION

I, Karan Kumar hereby declare that this project is original piece of research work carried out by
me, under guidance and supervision of Ms. Veenu arora. The information has been collected by
me and are from genuine and authentic sources. This work has been submitted to practical
fulfillment of the course of PGDM taken up Asian Business School, Noida.

I also declare that this project has not been submitted in full of part thereof, to any university or
institutions for the reward of any degree or diploma.

Place: Delhi Karan Kumar

Asian Business School

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 TABLE OF CONTENT
EXECUTIVE SUMMARY 7
INTRODUCTION 8
SWOT ANALYSIS 14
COMPARISON TO OTHERS 16
COMPETITORS 18
OBJECTIVE 19
LITRETURE REVIEW 20
RESEARECH METHODOLOGY 37
DATA ANALYSIS 39
LEARNING 53
FINDINGS 54
SUGGESTIONS AND RECOMMENDATIONS 55
CONCLUSION 57
BIBLIOGRAPHY 58
ANNEXURE 59

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 EXECUTIVE SUMMARY

The aim of the study is to understand the level of customer satisfaction towards the Finserv
extended warranty .The study apart from knowing the customers’ satisfaction also focuses on the
scope and growth of extended warranty in Delhi where the study is being conducted. The project
focusing on Finserv Company’s branch in Delhi ensured to successfully take up the research on
knowing the customer and their views about the extended warranty.

This study will help us to get a better picture as to what customers perceive about extended
warranty plans and their awareness about the same. This study will help us in understanding
what the customers prefer really through these extended warranty plans. Also if the customers
prefer these extended warranty plans, the study brings to light the customer expectations about
the same.

The sample was decided based on simple random sampling method. The responses were
recorded by conducting a survey with the help of a questionnaire. The questionnaire has been
designed in such a way so as to bring out the most accurate data, which will enable the study to
get the closest vicinity of its objectives.

The data collected from the survey has been appropriately analyzed and has been interpreted in a
meaningful way to offer some suggestions and recommendations. The data has also been put
through a series of statistical tools that will close down the distance on the objective of the study.

Several measures have been taken to keep the study on course without any deviations. There are
certain limitations to the study that involved two primary factors – cost and time. Yet the study
has been done reaching close to the greatest possible extent of its primary objective.

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 CHAPTER -1

INTRODUCTION OF COMPANY

About Bajaj Fiserv

Bajaj Fiserv Limited is the holding company for the financial services businesses of the Bajaj
Group. Its insurance joint ventures with Allianz SE, Germany namely Bajaj Allianz Life
Insurance Company Limited and Bajaj Allianz General Insurance Company Limited are engaged
in life and general insurance business respectively. Its subsidiary Bajaj Finance Limited is a
Non-Banking Finance Company engaged in consumer finance, SME finance and commercial
lending. Bajaj Financial Solutions Limited, a wholly owned subsidiary of Bajaj Fiserv Limited is
engaged in wealth advisory business

History

Finserv was formed in April 2007 as 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.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 Business and to
strengthen the competencies.

The wind power project, the stakes in the life and general insurance companies and Consumer
finance along with their respective assets and liabilities got vested in Finserv Limited. In addition
to that cash and cash equivalent of INR 8,000 million (then market value) was also transferred to
the company. The demerger has enabled investors to hold separate Focused stock and also
facilitate transparent benchmarking of the companies to their peer in their respective industries.

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The constantly changing demographics and dynamics of the Indian economy, has led to creation
of various needs of the average Indian customer now demands proper avenues of channelizing
their savings. Financial protection and is also desirous of spending more on valuable goods and
services.

All these wants need to be met by dynamic players in the financial services space. Finserv was
formed specifically to cater to these needs. The company was also formed to touch and improve
the lives of a growing number of people in the country. And in doing so, deliver superior
corporate values to its shareholders. The operating companies carry with them the Bajaj brand,
which carries with it decades of commitment to business ethics, integrity and highest standards
of fiduciary responsibility.

NAME DESIGNATION

Rahul Bajaj Chairman

Sanjiv Bajaj Managing Director

Rajiv Bajaj Director

S H Khan Director

Nanno Pammani Vice chairman

Madhur Bajaj Director

D J BalajiRao Director

Naresh Chandra Director

Rajeev Jain Chief Executive Officer

Annant Damie Company Secretary

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Vision of Finserv

Finserv has a vision to become a full-fledged financial services company and be the financial
partner to the Indian consumer and help him across his financial needs, whether for finance, for
investment management, for protection or for post-retirement support, throughout his lifecycle.
Finserv is a consumer focused company with emphasis on profitable growth and operational
efficiency to deliver best results to all its stakeholders

Awards

 Top 3 Financial Services Company

We're proud to be ranked amongst the Top 3 Financial Services Companies to work for in India.
The ranking was conferred on us by Great Places To Work (GPTW), the gold standard in
ranking the world’s best workplaces, at a special event hosted in Mumbai on 21 June, 2013.
GPTW conducts this survey every year amongst more than 500 companies across India. This
year more than 530 companies participated in the survey.

 Aon Hewitt Best Employer 2.0 India

We are proud to be ranked amongst the Top 17 Best Employers in India, by Aon Hewitt, in
association with the Times Group. Notably we are also the only Financial Services Company to
feature in the list. This prestigious award was conferred to us at an awards ceremony in Delhi on
the 15th of Jan 2014. Aon Hewitt is a highly respected authority on measuring and improving
engagement to drive workforce performance. The company began the Best Employers research
in Asia in 2001 to explore what makes a workplace of choice and thus identify a list of best
employers in Asia and identify their innovative people practices. This year more than 120
companies participated in the survey.

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Types of finances in Finserv

The Finserv is the most diversified non-bank finance company in the country, the Bajaj finance
largest financier of consumer durables in India and one of the most profitable firms in the
category. Hereunder are summary details of our portfolio of businesses, with a brief description
on each.

Consumer Durables Finance

Lifestyle Finance

EMI Card

Consumer Finance Personal Loans Cross Sell

Co-branded Credit Cards

Two and three wheeler Finance

Salaried Personal Loans

Mortgage
SME Finance
Business Loans

Construction Equipment Finance

Commercial Lending Infrastructure Finance

Vendor Financing

Note: we focused on consumer durable finance

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 REASON TO BUY FINSERV

Finserv Limited (FINSERV): Company Profile and SWOT Analysis” contains in depth
information and data about the company and its operations. The profile contains a company
overview, key facts, major products and services, SWOT analysis, business description,
company history, key competitors, financial analysis, mergers & acquisitions, recent
developments, key employees, company locations and subsidiaries as well as employee
biographies.

Summary

This report is a crucial resource for industry executives and anyone looking to access key
information about” Finserv Limited”

The report utilizes a wide range of primary and secondary sources, which are analysed and
presented in a consistent and easily accessible format. Trimetric strictly follows a standardized
research methodology to ensure high levels of data quality and these characteristics guarantee a
unique report.

Scope

Examines and identifies key information and issues about” Finserv Limited” for business
intelligence requirements.

Studies and presents the company’s strengths, weaknesses, opportunities (growth potential) and
threats (competition). Strategic and operational business information is objectively reported.

The profile also contains information on business operations, company history, major products
and services, key employees, and locations and subsidiaries.

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Reasons to Buy

Quickly enhance your understanding of” Finserv Limited”

Gain insight into the marketplace and a better understanding of internal and external factors
which could impact the industry.

Increase business/sales activities by understanding your competitors’ businesses better.

Recognize potential partnerships and suppliers.

Key Highlights

Finserv Limited (BFS) is a financial services holding company. The company, through its
subsidiaries, offers a range of consumer finance, SME finance, commercial lending, insurance
and wealth management products and services catering to the requirements of individual and
corporate clients. Its portfolio of products and services includes personal loans, consumer
durable loans, small business loans, construction equipment loans, loans against property and
shares, two- r and three-wheeler financing, advisory and investment planning services. It also
provides infrastructure financing focusing on roads, telecom, power, railway, ports and
associated sectors. Furthermore, it offers insurance products, including life insurance, health
insurance, auto insurance, travel insurance, property insurance and commercial insurance. The
company operates through its subsidiaries and branch offices located across India. BFS is
headquartered in Pune, Maharashtra, India.

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 SWOT ANALYSIS OF FINSERV

Strengths:

 Highly experienced management

 Product design and development capabilities
 Extensive R & D focus
 Widespread distribution network
 High performance products across all categories
 High export to domestic sales ratio
 Great financial support network (For financing the automobile)
 High economies of scale
 High economies of scope
 Hasn't employed the excess cash for long.
Weaknesses
 Still has to establish a brand
 Not a global player in spite of huge volumes.
 Not a globally recognizable brand
Opportunities:
 Double-digit growth in financial loan market.
 Untapped market above other lending companies.
 More maturity and movement towards product introduction.
 The growing and improvised schemes in the market.
 Growing demand for 0% financial schemes especially in emerging markets.
 It is also proposing to launch more other financial schemes and more product introduction

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Threats
 The competition catches-up any new innovation in no time.
 Threat of other financial lenders like future finance etc. offering the same benefits
 Margins getting squeezed from both the directions (Price as well as Cost)

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 COMPARISON TO OTHERS

Recent insurance deals warrant upgrade... The insurance sector in India has gathered steam post
FDI being raised from 26% to 49%. Stake sales by domestic insurers to their foreign partners and
new investors have surged at rich valuations for both life as well as the general insurance
business. Recently, HDFC Ergo General Insurance divested a 23% stake in its general insurance
business at valuations of 24x FY17E PAT or 35x trailing PAT (4.9x trailing P/BV). Even deals
in life insurance have happened at 2.4x to 3x forward embedded value (EV) e.g. Reliance Life
divested at 3x EV and HDFC Life at 2.4x EV. In light of this, we have the scope to upgrade both
Bajaj’s general and life insurance valuations as we valued them at lower valuations. We revise
our target upward to | 2308 vs. | 2155 earlier. Strong brand name enhances sustainability,
reliability Finserv, a financial conglomerate under the flagship brand of Bajaj and leadership of
Sanjeev Bajaj, has witnessed a sharp surge in earnings in all three key business segments. In
general insurance, it is the most profitable and efficient player among competitors. Bajaj
Finance, a niche consumer durable lender, reported a 4x increase in loan book in FY11-15 while
earnings surged at 38% CAGR. BALIC enjoys a market share of ~6.8%. We expect consolidated
revenue, PAT to grow at a CAGR of 12.9%, 22.9% to | 22996 crore, | 2551 crore, respectively,
over FY15-17E. Niche in general insurance; superior return ratios compared to peers a strong
business model generating ROE in excess of 24%, reporting underwriting profits on

Finserv:
 It is very friendly to customers.
 It providing good financial services to the customers.
 And the Bajaj providing 0% interest to the customers.
 And the Bajaj finance providing EMI facility for existing 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
 Bajaj finance is now available any shopping malls in the 62 cities with best
performance.
 In Bajaj finance we require CIBIL score minimum 750 by this we can come to know
that he is regular customer.

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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.

 They will take the processing fee from the customer.

 The approval time is may be too high

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 COMPETITORS OF FINSERV

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 OBJECTIVE

Primary objective

Primary objective of the study is to find out The Role of extended warranty in consumer
durable products in Bajaj Finserv-Customer Perspective.

Secondary objective

• To study the awareness of extended warranty plans in Finserv

• To study the effectiveness of advertisement of Finserv

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 CHAPTER 2

LITERATURE REVIEW

Finserv Lending launches Extended Warranty with its 0% interest Consumer Durables
Finance

Another innovation from Finserv Lending, Extended Warranty will provide additional 1 year
coverage for products after the expiry of the manufacturer warranty period

Mumbai, Maharashtra, June 2, 2012/ India PR wire/..

Finserv Lending, the market leader in Consumer Durables Finance has launched ‘Extended
Warranty’ plan with its 0% interest Consumer Durables Finance. This gives customers another
compelling reason to opt for 0% interest Consumer Durables Finance for their durables purchases.
Extended Warranty launch is an affirmation of the company’s active pursuit of innovations and
commitment to continuously enhancing the value bundle.

Product maintenance post the manufacturer’s warranty is a challenge faced by the consumers.
Finserv Lending envisages a huge scope in Extended Warranty as an opportunity to further
consolidate long term customer relationship even after the financing tenure concludes.

“Extended Warranty is a proof of their commitment to continuously enhancing the role in customer’s
life, beyond just being another financier.”

Extended Warranty will provide complete protection of the cost towards repair and replacement of
the consumer durable appliances arising out of unexpected defects in material or workmanship, post
the expiry of manufacturer’s product warranty period.

The existing Extended Warranty market in India is completely unorganized, with some retailers offering
it with lots of terms and conditions. Finserv Lending, which holds over 80% share of the consumer
durables installment finance segment, has tied up with another Finserv Group Company, Bajaj Allianz
General Insurance Company Ltd., to offer Extended Warranty for consumer durable appliances on Group
Platform basis. The offer is available for the customers who are already availing the 0% finance services

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 from Finserv Lending. The 12 month policy period of the Extended Warranty plan will commence after
the expiry of manufacturer’s product warranty period

ABOUT THE TOPIC

What are Consumer Durable Goods?

Consumer Durable Goods are a category of consumer products that do not have to be purchased
frequently because they are made to last for an extended period of time, examples are Washing Machine,
Refrigerator, etc.

Consumer durables revenues have been growing at a healthy pace

 In 2015, revenue from consumer durables sector in India stood at US$ 9.7 billion, which further
increased to US$ 12.5 billion in FY16.
 Consumer durable market expected to grow at CAGR of 13 per cent from FY05 to FY20.
 Around two third of the total revenue is generated from urban population and rest is generated
from rural population.

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The consumer durables market is expected to reach US$ 20.6 billion by 2020. Urban markets
account for the major share (65 per cent) of total revenues in the consumer durables sector in
India. There is a lot of scope for growth from rural markets with consumption expected to grow
in these areas as penetration of brands increases. Also demand for durables like refrigerators as
well as consumer electronic goods are likely to witness growing demand in the coming years in
the rural markets as the government plans to invest significantly in rural electrification.
Under the upcoming Budget Scheme 2017-18, the government is likely to retain its focus on
rural economy by continuing the pro-poor and pro-farmer schemes.
The FMCG sector has grown at an annual average of about 11 per cent over the last decade. The
overall FMCG market is expected to increase at (CAGR) of 14.7 per cent to touch US$ 110.4
billion during 2012-2020, with the rural FMCG market anticipated to increase at a CAGR of
17.7 per cent to reach US$ 100 billion during 2012-2025.Food products is the leading segment,
accounting for 43 per cent of the overall market. Personal care (22 per cent) and fabric care (12
per cent) come next in terms of market share.
Growing awareness, easier access, and changing lifestyles have been the key growth drivers for
the consumer market. The Government of India's policies and regulatory frameworks such as
relaxation of license rules and approval of 51 per cent foreign direct investment (FDI) in multi-
brand and 100 per cent in single-brand retail are some of the major growth drivers for the
consumer market.

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 ADVANTAGES OF FINSERV

As there are some disadvantages in going through BFL, but there are some
advantages as well over its competitors:-

1. BFL provides loan on consumer durable products at 0%, only a nominal amount of
file charge is taken from the customers. So any customer can take this scheme,
therefore they don’t have to pay the complete amount and also they can enjoy interest
on that amount. And thus customers are turning toward luxurious life.

2. While paying through Credit Card, that much amount is blocked from the card. As
there is monthly limit in each card, so it is wise to go for BFL.

3. If a customer uses credit card on payment, and doesn’t able to maintain the minimum
balance on the next month, then he has to pay fine on the complete amount, whereas
BFL customers don’t have to pay fine on the whole amount if they are unable to pay
next time. Fine is being charged on the next month installment only.

4. Credit card is not given to every customer, so those customers who can’t afford credit
card can definitely go for BFL.

5. BFL provided loan on many types of surrogates, not all company provides loan on
these many surrogates.

6. If a company is taking finance from BFL then he will get easily insurance policy
from Bajaj Alliance without any verification on insurance part.

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 7. Flexible EMI scheme in many products are available. BFL provides many schemes
such as 12/4, 9/0, 10/0, 10/2, 18/6, 24/6 etc. Customer can choose any EMI option
according to their paying capability.

8. From the above ratios we can find that instead of not performing in several areas
Bajaj still got a good market price, this can be because of being an old player in the
market with huge brand loyalty.

9. It has also been observed that Bajaj is showing more conservative behavior by not
taking loan instead cheaper interest rate and still going for owner funds, this will not
help them in tapping new markets.

BFL regularly provides offers to its customers in festive season. Some offer even consist
schemes such as 10/0; in which customer doesn’t have to pay anything as the down
payment. Customers need to pay only few (5-15) hundreds only to make a purchase even
if the product is too costly.

There is one big myth among customers that BAJAJ will take extra charges in 0%
finance. But it’s totally false there are no any hidden charges.

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 PROCESS OF LOAN

Documentation:

1. Residential proof

2. ID Proof

3. Cancelled Cheque

4. Credit Card

5. Salary Slip Latest (For Govt. Employee and salaried)

6. Last 3 months Bank Statement (Salaried)

7. Phone Bill, latest, original and delivered by courier (Instant)

Application process for loan approval

 First pitch the customer,after pitching the customer the next process is to explore them

overall loan process of 0% interest sceheme .Once the customer is agreed, then ask the

customer for the required documents like ID-proof, Address proof i.e voter ID,driving

licence,aadhar card and cancelled cheque etc to approve the loan.After compliting the

submition procedure of documentation,the next step is to decide the surrogate of the

customer.

 Customer should be fill up the application form,then the details of customer get stored by

the executives in to the sales force softwear.

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  Once all this loan process is done, the unique case ID will be generates. Then all the

control goes in to the hand of company approval department.

 After approval of loan , customer should sign the agreement document (which includes

the terms and conditions), then next process is to generate the invoice of loan and product

amount.

 On the basis of invoice,memo of disbursement is gets generate.

 Along with the loan procedure documents, disbursment memo will get forward to the

bajaj finserv , Pune branch office premises. Then all the attached documents are scrutinze

by the operational department of bajaj finserv’s.

 Once the loan procedure of the company is satisfied then this douments get sealed by the

approval stamp.

Surrogates Required for Loan Approval:

There are three types policy are as below:

A.WOW Policy

B.WOW Lite Policy

C.WOW Extension Policy

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A.WOW Policy:

WOW Policy mostly used for those customer who are in the listed companies, have the credit
card, as per the rule of company the maximum Loan to Value(LTV) 83% to 90% it depend on
the customer document.

Following are the Surrogates included in that Policy:

2.1 Credit Card (Max LTV 83% up to 125000)

2.2 Listed Companies (Max LTV 90% up to 100000)

2.3 RC of Vehicle (Max LTV 83%)

2.5 Existing Customer (Max LTV 90% up to 50000)

2.6 CIBIL Score (Max LTV 90% up to 125000)

2.7 Salaried (Max LTV 90% up to 125000)

2.11 Instant

B.WOW Lite Policy:

WOW Lite Policy used for those customers whose net exposure is up to25000 to 35000.and as
per the company rules the maximum Loan to Value (LTV) is 83% for all surrogates.

Following are the Surrogates included in that Policy:

3.1 Credit Card (Max LTV 83% up to 35000)

3.2 Listed Companies (Max LTV 83% min salary 7500)

3.3 RC of Vehicle (Max LTV 83% up to 25000)

3.5 Existing Customer (Max LTV 83%)

3.6 CIBIL Score (Max LTV 83%)

3.7 Salaried (Max LTV 90% Min net salary 7500)

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 Figure. Surrogates Required for Loan Approval

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 EXTENDED WARRANTY

Extended warranty is a prolonged warranty on your Consumer Durable purchase, covering the
cost of repair/replacement in case of any abrupt damage within a stipulated time.

A few points to note are:

 The Policy Period, defined as 12 months commencing after expiry of manufacturer’s

product warranty period.
 Sum Insured of the insured asset is equal to the invoice price. Maximum claim
payment under the policy is equal to the Sum Insured.
 Repair services are to be performed at authorized service centres only, mentioned under
the Service Centres section.

BENEFITS OF EXTENDED WARRANTY

We deploy technology and apply innovation to create unique and compelling propositions that
help you do what you always wanted to do. Here under are a host of unique features and benefits
that you enjoy with Extended Warranty from Bajaj Finserv Lending. Most of these features are
industry firsts and come only with our portfolio of offerings. Read on to know more: Listed here
are a host of unique features and benefits that you enjoy with Extended Warranty from Bajaj
Finserv Lending. Most of these features are industry firsts and come only with our portfolio of
offerings. Read on to know more.

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 Products Covered

List of products covered under the Extended Warranty program are:

Colour television (CTV, LCD, LED) Music system

Refrigerator Handy cam

Washing machine Water purifier

Air conditioner Vacuum cleaner

Camera Dish washer

Microwave oven Cloth dryer

Personal computer Air purifier

Laptop Condenser dryer

IPod Kitchen appliances

How to Apply

 Extended Warranty can be availed within 6 months of purchasing the Consumer Durable
product.
 For more details, you can give a missed call to us at 09289208888

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http://www.complaintboard.in/complaints-reviews/bajaj-finserv-lending-consumer-durable-l244105.html

 To identify the customer relationship management programs being run by FINSERV.

 To ask the people how much they are aware about EXTENDED WARRATY.

What is an EMI card? Advantages of EMI card

What is an EMI card?

Bajaj Fiserv Lending EMI card is a pre-loaded card with a pre-approved * Consumer Durable &
Lifestyle Product Loan. We can use this card to buy our favorite consumer durable (or lifestyle
products) at * by simply swiping your card at our partner retail outlet

Advantages of EMI card

 The Bajaj finance providing good opportunity to customers buy offering EMI card to the
customers their benefiting they Are getting very good services and it is very useful to use
and it also avoid the ford cases.

 With this card we can come to know that the customer is existing customer for more than
three month.

 For their next purpose of buying products thy do not need to bring all the documents
which was given before

 Now simply Swipe, Sign and Buy any consumer durable or life style product of your
choice with your EMI (Existing Member Identification Card), only from Finserv
Lending. No need to gather another set of documents or go through the process of
applying for a loan.

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  The pre-approved loan amount on our EMI card depends on the loan amount assigned to
BFL at the time of we are taking a Consumer Durable or Lifestyle product loan. This loan
amount varies from Rs. 30,000 to Rs. 1,25,000/-

 We can use the EMI card at any of our partner retail outlets across 65 cities in India.

Features and Benefits

The Bajaj finance EMI card is the innovation to bring new technology to consumer durable loans
It is very easy to communicate with customer.

 Pre-Approved eligibility:

The EMI card carries a pre-approved loan in our wallet. We can avail of our loan facility
to purchase any consumer durable & lifestyle product of our choice.

 Instant approval:

Simply Swipe, Sign and Buy with our EMI card. The moment we swipe our card, we can
get instant approval, subject to the amount pre-approved for you.

 Minimum documentation:

For using your EMI card, we don't want to give any documents. Our EMI card carries all
the necessary information required.

 Preapproved Offers:

As an existing customer, we can get exclusive preapproved offers from time to time
across a host of your partner retailers and manufacturers.

 Online Account Access:

Get all information about our loan like repayment track, interest certificate, payment
schedule etc. through your digital customer portal. Just log in with our loan account
number and access whatever information you want about our loan.
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How to Apply 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 3 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.412 and our EMI card will come within 3 month.

Eligibility and Documents for EMI card

EMI Card is issued only to our existing customers

Only the following documents are required for getting your EMI card:

 Open ECS mandate duly signed (Open ECS is same as other ECS with an extended
period so that we don’t have to give fresh ECS for your purchases in future.)
 One cancelled cheque
 KYC formalities (valid photo id proof and address proof)

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Fees and Charges

All the customers have to pay is a onetime charge of Rs.412 (to enjoy lifetime membership of
EMI card).

Note: some customers are existing and new for Bajaj but they don’t have the EMI card because
EMI limit not there. The EMI limit is there for new and existing they are Eligible for the EMI
card

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 AUTHORISED DEALERS OF FINSERV IN DELHI

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 CHAPTER 3

RESEARCH METHODOLOGY

The method used for data collection is Survey Research, which is Exploratory in nature.

DATA COLLECTION PROCEDURE

Sampling Method

Universe:

Finserv extended warranty users in PASCHIM VIHAR Delhi

Sampling Unit:

Personnel from the extended warrant y were interviewed and quest ionnaires were
used to get informat ion from them and also from the people availing BAJAJ services.

Size of Sampling:

100 (78 regular customer and 22 new customer)

Data Sources
Due to the limitation of time and scope of the study the number of respondents from which the
data is collected is 100

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 Research Tools

Tools of analysis
Analytical techniques are used to obtain findings and arrange information in a logical sequence
from the data collected. After tabulation of the data, researcher used the following quantitative
techniques

1. Percentage Analysis
The data that is obtained is from the questionnaire is analysed through percentage analysis. The
results are shown on the percentage basis

2. Graphs
Graphical representations are used to show the results in simple form. The graphs are prepared
on the basis of data that is received from the percentage analysis

Primary Data:

The information was obtained by means of the following tools for data collection.

 Interview Schedule
 Structured Questionnaires

Secondary Data:

Relevant data collected from

 Journals and Business Magazines

 Text Book
 World Wide Web
 Company Broachers and Pamphlets etc.

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 CHAPTER 4

DATA ANALYSIS AND INTERPRETATION

1. Are you existing customer or new customer

A) Yes B) No

20%

a
b
80%

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2. How is your experience regarding FINSERVSERVICES?

A) Good B) Best

C) Bad

20

40
a
b
c

40

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 3. Sex
a) Male b) Female

20

a
b

80

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4. Monthly income

a) 5000 – 10000 b) 10000- 15000

c) 15000 – 20000 d) Above 20000

10

20
45 a
b
c
d

25

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5. Do you feel extended warranty is essential for one’s life?

a) Yes b) No

25

75

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6. Tick out the reasons for why you feel extended warranty is essential?

a) Tax advantage
b) Security purpose c) Others

5
10

a
b
c

85

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 7. When you think of extended warranty, which company comes to your mind?

a) Finserv b) ICICI
C) HDFC

20

a
10 b
c

70

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 8. Are you aware of Bajaj Finserv extended warranty plan?

a) Yes b) no

25%

a b

75%

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 9. Through which media did you come to know about Finserv extended warranty plan?

a) Newspaper b) Television
c) Radio d) Hoardings

25
a
b
50
c
d

20

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10. Are you aware of the various extended warranty plans offered by Finserv?

a) Yes b) No

40

a
b

60

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11. How do you feel about these particular extended warranty schemes?

a) Excellent b) Good
c) Satisfactory d) Poor

15

a
b
c
20 d
60

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12. How did you come to know about these plans?

a) Friends and Relatives

b) Advertisements c) Newspapers
d) Others

20 20

a
b
c
20 d

40

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13. Are you satisfied with the service provided by Finserv?

a) Yes b) no

20

a
b

80

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14. How long do you wish to be associated with Bajaj Finserv?
a) 3 years b) 5 years

c) 10years d) above 10 years

10%
20%

30%

40%

a b c d

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 CHAPTER 5

LEARNINGS

1. Dealing with customers:-

I got to know about how to generate interest in finance, how to deal with customer, how
to offer them different schemes, how to keep them aware about the profits of finance
over cash purchasing and how to handle their queries effectively.

2. Pitching customers for various other products:

Other product includes extended warranty, Open extended warranty; EMI card, health
risk cover etc. are being provided by Finserv. We got to know how to approach
customers and how to pitch them accordingly.

3. Process of granting loan:

a. Documentation: documentation like credit card, driving license ,PAN card etc. is
required to provide loan to the customers

b. Various requirements: As mentioned in surrogates various slabs are there according

to with customers are provided loan.

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 FINDINGS
 While paying through credit card, it is a trouble if the card is blocked. So, it is wise to go for
BFL.

 The lack of on the job training of the sales executive is making them less effective and dull.
 Needs better co-ordination between the dealer and the sales executive.
 The whole process of lodging a case needs to be more fast and effective so that the customer
does not feel boredom.
 The transparency should be more regarding the various aspects of the case for the customer so
that he does not feel being defrauded.
 The credit worthiness of the consumer should be checked with more care.
 Should work on reducing the paper work more to make it fast and easy.
 Lack of conducive work environment for the sales executives make them demotivated.
 Work load on the sales executives are gaining which is making them more stressful which is
not good in a long run as he/she may think of moving on to another company.
 Lack of better after sale services which leads in the inability to retain customers.
 Needs more flexible installment payment schemes in keeping in mind the customer.

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 CHAPTER 6

SUGGESTIONS AND RECOMMENDATIONS

1. Filling up of questionnaire from customer is very hectic from customer point of view.
The questionnaire should be attractive so that it wouldn’t affect the sales.

2. Unawareness of customer about 0% finance scheme. Therefore, Bajaj should make its
customers aware about the new schemes.

3. Customer thinking that Bajaj will take some hidden charges from them, if they take loan
at 0% from Bajaj. This can be possible by removing wrong myth in the minds of the
customers. Therefore, Bajaj should promote them as a good brand.

4. Customers don’t carry all the required documents all the time and some of them don’t
want to come again. This happens mainly due to lack of proper information.

5. Sometimes Customer executives have to sell Bajaj Allianz insurance along with the
finance scheme. So they focus mainly on those customers who are interested in taking
insurance plan.

6. Bajaj should work on its HR part as I found it is a bit demotivating for the employees
when they don’t receive their incentive when any file get blocked, they have to work out
any other way to deal with these situations.

7. The quality of hiring of support staff is not up to the mark as they fail to serve the
customer in the absence of SE.

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8. More scheme plan should be incorporated for non- credit card user as they are more in
number and are more prospecting customer.

9. Finserv initially have the system of swiping of EMI card but due to some difficulty they
stopped it, I think Bajaj should work upon this as this can save more time for customer as
well as for SE and he can serve more non EMI card user and convert them into EMI card
holder.

10. Bajaj also doesn’t release NOC on time. NOC is released when customer pays all his
debts. I found some customers complaining that even after 5 years they haven’t got any
certificate for paying their debts.
.

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 CHAPTER 7

CONCLUSION

The initiative taken by BAJAJ in extended warranty has helped BAJAJ to achieve great amount
of success. On measuring the effectiveness of the services provided by BAJAJ in terms of
responsiveness, reliability, empathy, and assurances it was found that the overall perception
about its services quality is quiet high. Born a leader, the first good extended warranty service in
Delhi, Bajaj has maintained leadership through constant innovations, which have redefined
standards of extended warranty in India. To enhance the convenience of its subscribers has been
able to achieve the title of best extended warranty provider for five consecutive years. By means
of relationship marketing BAJAJ has been able to reduce the rate of churn. Bajaj is making use
of the latest technology and focusing on building long term relationship with the customers as a
result of which most of the people perceive Bajaj as the best extended warranty provider in
Delhi.

The constantly changing demographics and dynamics of the Indian economy, has led to creation
of various needs of the customer. The Indian customer now demands proper avenues of
channelizing their savings, financial protection and is also desirous of spending more on
valuable goods and services. All these wants need to be met by dynamic players in the financial
services space. Bajaj Finserv was formed specifically to cater to these needs. The company was
also formed to touch and improve the lives of a growing number of people in the country, and in
doing so, deliver superior corporate values to its shareholders

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 BIBLIOGRAPHY

Book:

 Kulkarni M.V., (2010), Research methodology, Everest publishing house.

 Srivastava T.N., (2011), Business research methodology, Tata McGraw - Hill Education

private limited.

Online References:

www.google.com

www.moneycontrol.com

www.bajajfinserv.in

www.indiainfoline.com

http://www.economictimes.indiatimes.com/bajaj-finserv-
ltd/stocks/companyid-21426.cms

http://www.bajajfinserv.in/all-boardofdirectors.asp

Wikipedia/bajajfinserv

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 ANNEXURE:

 Process of Granting Loan:

1. Documentation- Documentation like Credit card, driving license, PAN card, etc. is required to

provide loan to the customers.

2.. Various requirements- As mentioned in surrogates various slabs are there according to which

customers are provided loan.

Application Form for EMI Card

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 Loan Term Sheet

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 Application Form for Consumer Finance

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 Electronic Clearing Form (ECS)

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 CKYC FORM

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 QUESTIONNAIRE

1. Are you existing costumer or new customer

a) Yes b) No

2. How is your experience regarding FINSERV services?

A) Good b) Best

C) Bad

3. Sex
a) Male b) Female

4. Monthly income
a) 5000 – 10000 b) 10000- 15000
c) 15000 – 20000 d) Above 20000

4. Do you feel extended warranty is essential for one’s life?

a) Yes b) No

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6. Tick out the reasons for why you feel extended warranty is essential?

a) Tax advantage b) Security purpose c) Others

7. When you think of extended warranty, which company comes to your mind?

a) Finserv b) ICICI

c) HDFC

8. Are you aware of Finserv Company extended warranty plan?

a) yes b)no

9. Through which media did you come to know about Finserv extended warranty plan?

a) Newspaper b) Television
c) Radio d) Hoardings

10. Are you aware of the various extended warranty plans offered by Finserv?

a) Yes b) No

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11. How do you feel about these particular extended warranty schemes?

a) Excellent b) Good b) Satisfactory

d) Poor

12. How did you came to know about these plans

a) Friends and Relatives b) Advertisements

c) Newspapers d) Others

13. Are you satisfied with the service provided by Finserv?

a) yes b)no

14. How long do you wish to be associated with Bajaj Finserv?

a) 3 years b) 5 years

c) 10years d) above 10 years

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