This required a fist hand experience in understanding end to end process flow for loans processing to payment disbursement. Also discuss about the Baja MI Card, the Baja Fines. ‘ Lending Company which is one of the lending company they also make available MI Card option for the loan. I have collected the Secondary data from Books, Company Annual Report & internet Articles etc. Baja Finance Ltd has only one market sales of Consumer Durable Loan product provided in MI based loan. I also focus on the surrogates required for loan approval, which documents are necessary for approval of loan.
And also to show the SOOT analysis of Company. I have also tried to explain the loan procedure and its approval by enclosing some case studies. Through this project, I learn how to given a loan on consumer durable product and how to solve customer difficulties about the documentation. Was dealing with proper customer, provided them loans by completing their files and getting he approval online form Baja Server called as “Galaxies” Portal. This process helped me to better understand the Loan procedure of Consumer durable product at Baja Fines’ Lending.
What Finance? “Finance is the management of money and other valuables, which can be easily converted into cash A category of stocks containing firms that provides financial services to commercial and retail customer. This sector includes banks, investment funds, insurance companies and real estate. Financial services perform best in low interest rate environments. A large portion of this sector generates revenue from mortgages and loans, which gain value as interest rates drop.
Furthermore, when the business cycle is in an upswing, the financial sector benefits from additional investment improved economic condition usually lead to more capital projects and increased personal investing. New projects require financing, which usually leads to a large number of loans. “Finance” is often defined simply as the management of money or “funds” management. Modern finance, however, is a family of business activity that include the origination, marketing, and management of cash and money surrogates through a variety of capital accounts, instruments, and markets created for transaction and trading assets, liabilities, and risks.
Finance is conceptualized, structured, and regulated by a complex system of power relation within political economies across State and global market. 1. 2 : Who is consumer? An individual who buys products or services for personal use and not for manufacture or resale. A consumer is someone who can make the decision whether or not to purchase an item at the store, and someone who can be influenced by marketing and advertisements. Any time someone goes to a tore and purchases a toy, shirt, beverage, or anything else, they are making that decision as a consumer. Ender the consumer protection act 1985″any person who buy any goods for consideration, who include a person who obtain such goods for resale or for any commercial purpose. ” 1. 3 : Consumer Finance: “The division of retail banking that deals with lending money to consumers. This includes a wide variety of loans, including credit cards, mortgage loans, and auto loans, and can also be used to refer to loans taken out at either the prime rate or the supreme rate. ” The consumer finance is a win-win system n which everyone wins.
For the consumers it is an opportunity to upgrade standard of living here and now instead of waiting for years of savings to accumulate. For manufacturer, consumer finance stimulates demand and brings down inventories. For dealers it is one type of sales booting. For finance company it is profit generation. Consumer finance has to do with the lending process that occurs between the consumer and a lender. In some instances, the lender may be a bank or financial institution. At other times, the lender may be a business that offers in house credit in exchange for the business of the consumer.
Consumer finance can include just about any type of lending activity that result in the extension of credit to a consumer. 1. 4: Consumer Durable Finance: “Consumer durable finance means to provide the finance on the consumer durable product like, washing machinist, TV etc. It is known as consumer durable finance” The consumer durable finance provide the 0% interest on durable product to the consumer, This gives customers another compelling reason to opt for 0% interest Consumer Durables Finance for their durables purchases.
Consumer durables finance schemes are generally available at the lealer location (point of sale) or the showroom. The beneficiaries are not just customers – lenders, manufacturers, and retailers too benefit. Manufacturers gain from the resultant boost to sales and increased consumer preference towards high-margin products. Financing schemes enable customers, especially those with lower income levels, to use future income streams to buy consumer products upfront and pay in installments over a period.
The most popular finance scheme prevalent in the market currently is the 12/4 scheme, where the financier collects the amount for the first four months as initial down payment from the buyer and then disburses the full amount to the dealer. The financier then recovers the balance amount in 8 monthly installments from the buyer. The interest and processing charges are generally paid upfront by the manufacturer to the financier. Consumer durables financing appears robust, continued support from manufacturers (who are effectively bearing the interest costs currently) would be critical to sustain high growth. . 5: MI Card: Baja Fingers Lending launched an innovative product for its existing Consumer Durables Finance customers. Through the MI card, an existing customer can buy any consumer durable by simply swiping the MI card across our dealer partner outlets, without the need for any repeated documentation. This is another industry first, leveraging the technology investments the company has made and is a proof point of our commitment to investing in growing our relationship with our existing customers. 1. : Advantages of Project: Schemes related to the consumer durable finance is always welcome by the customers. Tracking methodology of customer is very smoothly (by using MI card). Provision of easy, simple and adequate credit. 1. 7: Meaning of Banking: Transacting business with a bank; depositing or withdrawing funds or requesting a loan etc. Or engaging in the business of banking; maintaining savings and checking accounts and issuing loans and credit etc 1 . 7. 1 Definition of Bank: “An establishment for custody of money, which it pays out on customer’s order. ” 1. : Meaning of NBC: NBC means Non-banking financial company. A non-banking financial company (NBC) is a company registered under the Companies Act, 1956 of India and is engaged in the business of loans and advances, acquisition of shares/stock/bonds/debentures/securities issued by government or local authority or other securities of like marketable nature, leasing, hire-purchase, insurance business, chit business, but does not include any institution whose principal business is that of agriculture activity, industrial activity, sale/ purchase/construction Of immovable property.
Classification: 1. Developing finance institutions 2. Leasing companies 3. Investment companies 4. House finance companies 5. Venture capital management 18. 1: Definition of NBS: Non-banking financial companies, or NBS, are financial institutions that provide banking services, but do not hold a banking license. These institutions are not allowed to take deposits from the public. Nonetheless, all operations of these institutions are still covered under banking Table No. 1 . 1: Difference be;en NBC and Commercial Bank: Sir no.
NBC Commercial Bank It is no facility to issue queue against bank deposits. The queue can be issued against bank deposits. 2 Higher Rate of interest on loan Lesser rate of interest on loan It is specialized in one type of assets It hold variety of assets in form of loan, cash etc 1. 10: Leasing Companies: Financial leasing companies engage in financing the purchase of tangible sets. The leasing company is the legal owner of the goods, but ownership is effectively conveyed to the lessee, who incurs all benefits, costs, and risks associated with ownership of the assets.
In leasing finance, the borrower Of the capital equipment is allowed to use it, as a hire, against the payment of a monthly rent. The borrower need not purchase the capital equipment but he buys right to use it. CHAPTER – II PROFILE OF THE ORGANIZATION 2. 1: Historical Background of the Organization: Baja Fingers was formed in April 2007 which is situated in 4TH Floor, Baja Fingers Corporate Office, Pun-Endangered Road Avian Magna, Pun 411 014, Maharajah’s. As a result of its demurrer from Baja Auto Limited to act as a pure play financial services business.
The process of demurrer was completed in Feb. 2008. This demurrer 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. The wind power project, the stakes in the life and general insurance companies and consumer finance along with their respective sets and liabilities got vested in Baja Fingers Limited. In addition to that cash and cash equivalent of INNER 8,000 million (then market value) was also transferred to the company.
The demurrer has enabled investors to hold separate focused stocks and also facilitate transparent benchmarking of the companies to their peers in their respective industries. The constantly changing demographics and dynamics of the Indian economy, has led to creation of various needs of the average Indian customer. The Indian customer now demands proper avenues of channeling their savings, uncial 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. Baja Fingers 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 Baja brand, which carries with it decades of commitment to business ethics, integrity and highest standards of fiduciary responsibility. . 1 . : Area of operation: Consumer Durable Finance Two and Three Wheeler Finance Lifestyle product finance Vendor finance Construction Equipment Finance 2. 1 . 2: Vision and Mission of the Organization: Vision: Baja Fingers 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 lifestyle.
Mission: Baja Fingers aims to be the most useful, reliable and efficient provider of Financial Services. It is our continuous endeavor to be a trustworthy advisor to our clients, helping them achieve their financial goals. 2. 1. 3: Objective of the Organization: Our main objects as contained in our Memorandum of Association include: 1 .
To Finance industrial by way advance ,deposit or lend money, securities and propertied or with any Company, Body corporate, trust, firm, person or association whether falling under the same management or otherwise, with or without security and on such terms as may be determined from time to time, and to carry on and undertake the business of finance and investment ND to provide venture capital, seed capital, loan capital and to participate in equity preference share capital or to give guarantees on behalf of the company in the matter and to promote companies engaged in industrial and trading business and to act as Financial Consultants, Management Consultants, Brokers, Dealers, Agents and to carry on the business of share broking, money broking ,exchange broking, bill broking and general brokers for shares ,debentures, debenture-stock, bonds, units, obligations, securities ,commodities, bullion currencies and to manage the funds of any person, rim, body corporate or trust by investment in various avenues like Growth Fund, income fund, risk fund, tax exempt funds, pension ‘superannuation funds and to pass on the benefits of portfolio investments to the investor as dividends, bonus, interest, etc.