INDUSTRY PROFILE

Non Banking Finance Companies:

A Non Banking Finance Companies is a business entity whether
incorporated under the Companies Act, 1956 or not which devotes its
resources in providing to the society the financial services of various
descriptions that are distinct from normal banking services.
Non Banking Finance companies are allowed to collect Deposits from
General Public after complying with various provisions of the Companies
Act and after filing all the requirements as per the guidelines issued by the
Reserve Bank of India. It is to be noted that to raise deposits from the
general public by giving an advertisement, the person soliciting deposits
should file all the relevant documents with the Reserve Bank of India,
obtain clearances and then only issue an advertisement.
Only those NBFCs who are registered with the Reserve Bank of India
and who have complied with the requirements of credit rating satisfactory
grade and prudential norms are given freedom to offer interest rate (with
an upper ceiling of 11.00% prescribed) on deposits exceeding the period
of one year and not exceeding the period of 5 years. The above rate is
applicable to those deposits accepted or renewed by the NBFCs after 4th
March 2003. NBFCs are free to offer lesser rate of interest also at their
convenience.
NBFCs raise deposits from the general public by issuing advertisements
and thereafter invest the same in various businesses for which the
companies are formed.

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NBFCs comprise the business organizations carrying on activities
like:-
• Hire Purchase Finance
• Investment Activity
• Loan granting activity
• Mutual fund finance
• Equipment Lease finance
• Housing Finance
• Insurance Business
NBFCs not falling under the above categories are called RESIDUARY
NBFCs

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 Company Profile
Review of Literature:

Fullerton India Credit Company Limited, a fully owned subsidiary

of “Fullerton Financial Holdings”, Singapore, is the fastest growing
financial services company in India with an equity capital base of US$150
million (Rs 7 billion).
The credit company follows a relationship led, community based
business model with close proximity and engagement with the customer to
effectively reach out to them. In short span of time the company has
disbursed over 2500 crore rupees opened more than 950 branches spread
across 250 location and ahs more than 9000 employees on its rolls.
Newgen Software Technologies Limited, a market leader in Business
Process Management (BPM) and Enterprise Content Management
(ECM) with impeccable track record of implementing mission critical
workflow and Document Imaging solution, today’s announced the
successful implementation of its BPM solution based at Fullerton India
Credit Company Limited (FICCL). FICCL, one of the largest capitalized
Non Banking Finance Companies (NBFC) in the country, has rapidly
grown more than 950 branches.
Newgnes’s Implementation at FICCL covers the entire gamut of
processes including loan origination booking, collections and prospect
tracking, loan against Gold and early warning processes. FICCL currently
has more than 950 branches across the country. Numbers of concurrent
users have increased to 2000 from earliear1600 users.
Most players have gone slowly in rolling out their branches since this was
tuning out to be an expensive option. Citi Financial, which is the one of

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the largest NBFCs in the country, has a branch presence of 500 across190
cities while GE Money has 200 branches.
They have been operating for the past seven years. Among Indian NBFCs
Mahindra Finance has the biggest branch network at 500, while others
like Sundaram Finance have less than 230 branches.
Historical Analysis:
• Fullerton India Credit Company Limited provides a complete range
of financial products and solutions, customized to the requirements
of mass market and low income population segments. Fullerton
India Credit Company Limited follows a customer centric,
community based business model.
• Fullerton India a subsidiary of Fullerton Financial Holdings Ltd., a
wholly owned subsidiary of the US $80 Billion “Temasek
Holding”, Singapore.
• Fullerton India Credit Company Limited operations commenced
in January 2006, with a network of branches across the country to
Fullerton India Credit Company Limited and service Fullerton India
Credit Company Limited customers.

Fullerton India Credit Company Limited- A View

Brand Origin:
Fort Fullerton, named after Governor Robert Fullerton, was created to
protect Singapore. Singapore was then known as Temasek - the 'sea town'.
Our parent company, Temasek Holdings, incorporated in 1974, is one of
Asia's biggest investment firms, with a diversified US $80 Billion
portfolio, spanning various industries. Financial services are one of the

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key focus areas of Temasek. Carrying forward this legacy, Fullerton India
is deeply committed to provide quality financial services to the growing
Indian masses.

Company’s Offerings:
Fullerton India Credit Company Limited offers a range of
financial products and solution, tailor-made for the Salaried Individuals
(Retail Mass Market) and the Small sized Shop-owners and business man.
Entrepreneurs(Commercial Mass Market). “Fullerton India Credit
Company Limited is present through branches, separately for these two
business segments. Fullerton India Credit Company Limited branches are
always only a short distance away from Fullerton India Credit Company
Limited customer’s workplace or home.
Fullerton India Credit Company Limited service Fullerton India Credit
Company Limited customers only through Fullerton India Credit
Company Limited. Each of Fullerton India Credit Company Limited
customers are assigned a dedicated Relationship Officer who acts as the

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primary contact point for all the financial requirements of Fullerton India
Credit Company Limited customers.

Fullerton India Credit Company Limited--- Parivaar

Fullerton India Parivaar has introduced a new concept in the Indian
market. Here we have branches, which cater only to the specific needs of
Salaried Individuals. Our Parivaar branches provide customized products
and solutions, especially designed keeping in mind the unique
circumstances and requirements of this segment.
Our Parivaar Loans cover a wide range of products, which include:
• Unsecured Personal Loans
• Secured Loans

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 • Home Finance
• Home Equity Loans
We also provide Life Insurance. Our Mutual Funds products are to be
launched soon.
Some of the key advantages of entering into a relationship with us are:
• Our biggest proposition is our customer focus, both, in product
design/ customization and service. As an organization, we are
structured not around products but along customer segments. We
have separate verticals for the Salaried Individuals (Parivaar) and for
Small sized shop owners & Entrepreneurs (Vyapaar).
This model lends itself to better understanding of our customers' financial
situation and for a better products offering to them. With this holistic
understanding of our customers, we are also able to combine secured and
unsecured products and structure the loan in a manner which is ideally
suited to meet individual customer requirements.
For the first time in India, our own, company employed Relationship
Officers service the needs of the customers. There are no agents or other
intermediataries, coming in between the customer and us. These
Relationship Officers are the end-to-end solution providers and act as a
single point of contact" for all Product, Process and Service related needs
of the customer.
• Our branches do business only within a 5 km radius. Our customers'
office or residence has to be within the branch coverage area. This
closer proximity of our customers to our branches ensures better
understanding of their local environment and immediate situation.
• We participate actively in serving the community in and around the

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 vicinity of our branch. Our interest in the locality extends beyond
just a business relationship. We believe in participating in other
aspects of development of the community as well.
In a nutshell, the key values which we bring to the table are:
Simplicity: Easy to understand, simple processes and standard
documentation
Speed: Average turnaround time in loan processing is just two days
Neighborhood financing - Branches are located not more than 5 km away
from our customers.
One Stop Shop: For all financial requirements India has a large self-
employed population running small and basic businesses. When these
businesses need financial support to grow and realize their full potential,
the limited access to organized finance becomes a big retardant in their
growth. For a country with India's depth, the next level of growth will
come only if basic businesses (the mass market) graduate to the next level
of empowerment and self-sufficiency.
Fullerton India Vyapaar strives to improve the business and lives of the
small business community. Our business is focused only on small
establishments with a turnover of less than Rs.25 Mn per annum.

Fullerton India Credit Company Limited--- Vyapaar

India has a large self-employed population running small and basic
businesses. When these businesses need financial support to grow and
realize their full potential, the limited access to organized finance becomes
a big retardant in their growth. For a country with India's depth, the next

8
level of growth will come only if basic businesses (the mass market)
graduate to the next level of empowerment and self-sufficiency.
Fullerton India Vyapaar strives to improve the business and
lives of the small business community. Our business is focused only on
small establishments with a turnover of less than Rs.25 Mn per annum.
The key elements are as follows:
• The business envisages setting up branches with employees dealing
directly with the customers. This offering has elicited an enthusiastic
response from our customers as it gives higher degree of
transparency and faster value delivery.
• The relationship model includes a deep assessment of a customers'
business resulting in an omnibus facility with a flexible combination
of usage in parts, flexibility between a combination of short and long
tenures, and from unsecured to partially secured and fully secured
facilities. The facility set up for a customer is based on his risk
profile, repayment capacity, as well as proposed expansion plan.
• A Relationship Officer is assigned to address incremental product
needs, as well as for service requirements, through a process of
continuous
Engagement. The business strives to deliver lifelong financing
support and regular facility enhancement, based on business growth.
• Fullerton India Credit Company Limited understands that smaller
customers do not create a distinction between personal borrowing
and business borrowing; the facility is designed to cover both
needs.

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 • Businesses are built on people, and the company hires relevant local
talent to serve the market, so that there is a connect between the
employees and customers.
• The business wishes to bring a full service proposition
encompassing loans and liabilities to the small business owners.
Besides the variety of loans, life insurance has been introduced
which will also be delivered through the branch based Relationship
Officers.
• The business uses advanced technology tools to record customer
history, and leverage track record to enhance credit exposure in line
with the customer business cycle. This ensures continuous support
through seasonal peaks.
• Value to customer

Simplicity: Easy to understand, simple process and standard

Documentation.
Speed: Average turnaround time in loan processing is two days
Neighborhood financing: Branches are located in the center of business
hubs convenient from an access and timing Perspective.
One Stop Shop: For all business and personal financial needs

Working of Fullerton India Credit Company Limited:

Fullerton India Credit Company Limited is basically working on 10
commandments:-
1. Integrity and Discipline:
It's a core commandment around which everything else revolves.
Fullerton India Credit Company Limited has to be seen by all
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 extremely and within the organization to be of extremely high
character and integrity. Fullerton
India Credit Company Limited do not want our success to be
shadowed by a perception of lack of character and integrity
2. Passion to Excel:
What Fullerton India Credit Company Limited has set out to achieve
cannot be achieved unless all of us have an inner passion to excel
individually and as a team. When each of our cultivates and nurtures
this passion. It will cascade into the organization wanting to excel at
what it’s doing.
3. Innovation:
Innovation is nothing but thinking about something before others,
then implementing it and still look for ways to better what your have
just implemented. It's a continuous process and Fullerton India
Credit Company Limited need to keep thinking about our jobs with
that in mind.
4. Open to change:
Biggest impediment in one's development is an inborn conviction
that whatever one knows is the only way to do other job. There
were some who challenged themselves and the making made such
development.
5. Unlearn and Learn:
Fullerton India Credit Company Limited is off to achieve something
that no one has so far. So Fullerton India Credit Company Limited
need to learn new things, new perspective to some things we know.
New views and ideas come from people who did things differently
from you. One has top respect them and build onto them.

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6. Care:
Great communities, Great organizations are built around caring for
each other. One has to care for its customers, both internal and
external as well as colleagues.
7. Transparency:
Transparency in our action and thoughts in extremely important to
build some of the other values like care, teamwork and integrity. It's
the only way Fullerton India Credit Company Limited can ensure
that all our goals and objectives are perfectly aligned to that of the
Organization.
8. Risk Adjusted Returns:
It’s extremely important for us to evaluate the risks and returns of
our actions. All new opportunities, approaches need to be evaluated
from this angle in order to deliver on our final goal of sustaining
long term Shareholder value.
9. Team:
Teamwork is of paramount importance as we embark upon our
journey. What Fullerton India Credit Company Limited will achieve
will be achieved as a team and therefore it is vital to feel as a
member of the team that does it. Without teamwork and alignment
within teams it will take a lot more effort to get there.
10. Entrepreneur:
Fullerton India Credit Company Limited should not view us as
employees of this Organization but as Entrepreneurs in change of
our destinies. That sense of ownership and responsibility is vital for
our success

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13
 Porter’s Five Force Model: An analysis of Indian Banking System.

SUPPLIER POWER :-High

Depositors may invest elsewhere if interest rates

fall.

There are large numbers of banks and NBFC’s

and there is a rise in investment avenues like
Mutual Funds, Tax-free bonds, Equity market etc.
due to which the bargaining power of supplier is
also high.

Degree of rivalry within industry:-

BARRIERS TO ENTRY :-Low to Medium High THREAT OF SUBSTITUTES:-High

There is intense competition due to the large There are public sector banks, private sector and
number of players in the market.
Licensing requirement. foreign banks along with other non banking finance
There are 296 Commercial banks and many
Investment in technology , companies competing in similar business lines.
NBFC’s operating in India.
and branch network. In the lending side of the business,banks are seeing
Players attempt to lure clients away from
competitors by offering lower financing, preferred
Banks are fearful of being squeezed out of competition rise from unconventional companies
rates, and investment services.
the loan business, especially since it is a
good source of fee-based revenue.
The finance sector is in a race to see who can e.g. car and bike companies are offering 0% finance,
offer the better and faster services, but this also
Another trend that poses a threat is
causes the players to experience a lower ROA. why would anyone want to get a loan from the bank
companies offering other financial
services. What would it take for an
They then have an incentive to take- on high risk and pay 5-10% interest?
insurance company to start offering
projects
mortgage and loan service?

BUYER POWER

Low switching costs

For good creditworthy borrowers bargaining

power is high due to the availability of large
number of players.

There are large no. of players to choose

according to the specific requirements of the
customers due to which the level of competition is
intense among the players.

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 Process of Disbursing Loan
Product Offerings of RMM
Look at the following flowchart the display the product offering of RMM

PRODUCTS

Loans Insurance

Unsecured Loans Life Insurance

Secured Loans Group Insurance

General Insurance

We will be focusing on ‘secured loans’.

Secured loan is a loan that is backed by assets/collateral belonging to the
borrower.
Collateral is a browser’s asset that is repossessed by the lender in case of
default
The following flowchart shows the secured offered under the RMM
business:
SECURED
LOANS

Two Wheeler Mortgage

Home Loan
Insurance Cover

Home Equity Insurance

Cover

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 Two Wheeler Loan
Two Wheeler Product Features
Two Wheeler loan is one of the products Fullerton offers to its
customer, let’s look at the features of the Two Wheeler product
Target Market
The target market for the Two Wheeler product includes the following:
• Salaried individuals
• Self-employed individuals
Locations
Approved location as per policy
Brand and Asset Types
There are a few selected branch/models and asset type that are
covered under Two Wheeler loan. These include the following:
Brand
• TVS
• Suzuki
• Bajaj
• Hero Honda (this includes Activa as well)
Asset Types
• Motorbikes
• Scooters
Source of Acquisition
The sources from where Two Wheeler loan can be acquired include the
following:
• Sourcing only through authorized main dealerships (sub dealer/DSA
and broker sourcing not allowed )

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 • Branch walk-ins
• Direct marketing
• Cross sell/marketing programs
Negative profiles are same as current programs and also negative area as
per collection and market feedback captured in zoning.

Eligibility Conditions

Loan to value(LTV) LTV is one of the key risk factors that Lenders-
ratio financial institutions or non-financial
institution-assess when qualifying
borrowers/potential customers for a secured
loan. The risk of default is always at the
forefront of lending decisions, and the
likelihood of a lender absorbing a loss in the
foreclosure process increases as the amount of
equity decreases. Therefore, as the LTV ratio of
a loan increase, the qualification guidelines for
certain secured loan programs become stricter .
Lender can require borrowers of high LTV
loans to buyer default, which increases the
costs of the product offered.
LTV Ratio: Conditions
• Fuller LTV 100% finance of on road
price(on selected models)
• Income docs program 80%

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 • No income docs 70%
• Fast track program 50%
References Two mandatory references can be friends,
colleagues, or relative in the same city
(preferably in the same part where the applicant
office/residence is located).
Age • Minimum 21years (18 years with co-

applicant )
• Maximum 65 years (at the time of loan
maturity)
Minimum Income • 30,000/annum for salaried
• 48,000/annum for self-employed
Ticket size • Minimum :10,000/-
• Maximum:75,000/-
Tenure • Minimum:12 months
• Maximum:48 months
• For No Income Dox Program:30
Months
• For 50% LTV Program:8 months

Two Wheeler Product- Various Programs

Scheme Sheets for Various Programs
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Now that we are aware of the features of the Two Wheeler product, let’s
look at the various programs that come under the Two Wheeler product.
The schemes under all programs differ in terms of:
• IRR
• Interest rates
• Tenure offered
Let’s look at the various programs now.
Product Program-Normal LTV

Scheme Sheet for Normal LTV

IRR Cat Rate of Tenure
12 18 24 30 36 48
Interest
19% Metro 10.75 10.50 10.50 10.75 10.75 11.00
20% A 11.25 11.20 11.20 11.20 11.30 11.60
ROI%
22% B 12.50 12.25 12.30 12.50 12.50 13.00
24% C 13.50 13.50 13.50 13.75 13.75 14.25

Product Program-Fuller LTV

Fuller LTV will be offered to only those who have income Doc with
regular banking and average bank balance is equal to EMI.

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 Scheme Sheet for Fuller LTV
IRR Cat Rate of Tenure
12 18 24 30 36 48
Interest
25% Metro 14.20 14.20 14.20 14.20 14.50 15.00
& Cat ROI%
A
28% B 16.00 16.00 16.00 16.20 16.50 17.00
30% C 17.00 17.00 17.20 17.50 17.75 18.25

Product Program – 85% LTV Income Dox Program

In this all income document are collected (salary slip/certificate, ITR &
banking).

Scheme Sheet
Cat IRR
Metro 23%
A 24%
B 24%
C 24%

Product Program – 70% LTV No income Dox Program

Features
• The target segment for this program is customers who are unable to
provide income documents.
• Two CPA determines the income; 75% of the CPV –based income is
considered for CFA purpose.

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 • Maximum tenure is 30 months, EMI is not more than Rs.2000 ,and
LTV is 70% vehicles ORP.

Scheme Sheet
Cat IRR
Metro 19-20%
A 20%
B 22%
C 24%

Product Program -50% LTV Fast Track No Income Dox Program

Ownership Proof Surrogate Program – Features
• This is a track approval program in which customers need to submit
the ownership proof.
• TVR is conducted case can be approved LTV up to 50%
• Maximum tenure is 18 months.

Scheme Sheet
Cat IRR
Metro 19-20%
A 20%
B 22%
C 24%

Product Program – Fast Track

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 Scheme Sheet for Fast Track
IRR Cat Rate of Tenure (in %)
12 18
Interest
19% Metro 10.75 10.50
20% A 11.25 11.20
ROI%
22% B 12.50 12.25
24% C 13.50 13.50

Customer Value proposition

As opposed to competitors, Fullerton offers the following benefits to its
customers:
• Creates new market by offering 100% finance typically to boost the
Economy Two Wheeler Segment.
• Local credit faster TAT
• Local disbursement within 48 hours from the date-of-delivery
order(DO)
• Dedicated Relationship Officer(RO)/Relationship Manager(RM)-
Relationship Based Modal
• In 2& multi-branch location –dedicated branches to service the
dealer
• Convenience to customer –Present in small locations
Additional Charges
Mentioned below are some additional charge that are levied in case of
cheque swap, prepayment / preclosure, cheque bounce and penalty:
• In all the schemes an additional 2.5% processing fee on total loan
amount and Rs.200 stamp charges are applicable
• Cheque swap charge : Rs 500
• Prepayment charge :4%

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 • Cheque bounce charge : Rs 200
• Penal charge Rs.250
Two Wheeler – Insurance Covers
Types of Insurance Covers
Let’s look at the Two Wheeler covers offered by Fullerton
Two Wheeler- Insurance covers
Fullerton offers two types of insurance covers for Two Wheeler product
• Bajaj Allianz
• ICICI Lombard
Fullerton has tie ups with both Bajaj Allianz and ICICI Lombard.

Sampoorna Suraksha Two Wheeler Loans

Various offers under sampoorna suraksha two wheeler Loans
• All customers opting for the Two Wheeler Sampoorna Suraksha are
covered for:
o Personal Accident and Disability Cover of Rs 1 lac
o Life Insurance Cover of Rs 25,000
o Critical illness Cover of Rs10,000
• All customers aged between 20 to 40 years will be covered for the
above benefits for price of Rs.1, 299.
• All customers aged between 41 to 59 years will be covered for the
above benefits for price of Rs.1, 599.

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 • Critical illness Cover will not be available for all individuals above
the age of 50 years.
Product Coverage
• Life Insurance Cover: In case of any unfortunate incident (death ),
the sum assured /proceeds will be used to clear the outstanding loan
amount. The excess amount ,post clearance of the outstanding loan
amount will be given to the customer’s nominee.
Exclusions:
o Death due to suicide will not be covered during
the first 12 month
o Any other exclusion will be decided on medicals
only.
• 9 Critical illnesses: The nine critical illnesses covered under the
plan are cancer, coronary artery bypass surgery, myocardial
infarction-heart attack, end stage renal failure, major organ
transplant, stroke, paralysis, and heart value replacement surgery
and end stage liver disease. The sum assured will be paid on
occurrence of any of these illnesses.
Exclusions:
o Pre –Existing condition
o Any critical illness discovered within 90 days of inception of the
policy
o Diagnosis after end of the policy period
o If the advice/recommendation for hospitalization and post-
hospitalization domiciliary treatment and the period therefore is not
evidenced by a medical certificate issued by the attending doctor

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 o For any period of hospitalization and or the post-hospitalization
domiciliary treatment , which may extend beyond the expiry date of
period of insurance hereunder
• Accidental Death Cover: The sum assured will be paid when the
death of the insured person is within a period of twelve months from
the date of bodily injury, and such bodily injury is the sole and direct
cause of the insured person.
• Permanent Total Disability: The sum assured will be paid in case of
total disability, only if the disablement result in inability to remain
gainfully employed. it covers bodily injury resulting solely and
directly from accident, caused by external, violent, and visible
means . if such injury shall within twelve months of its occurrence
be the sole and direct cause of the total and irrecoverable loss of
o Sight of any one eye or both eyes or of the actual
loss by physical separation of two entire hands
o One foot or both feet
o One entire hand and one entire foot
o One entire hand
Exclusions:
o Death from intentional self-injury, suicide or
attempted suicide
o War and acts of terrorism
o Whilst under the influence of intoxicating liquor or
drugs
o Directly or indirectly caused by venereal diseases
or insanity

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 o Directly or indirectly caused by contributed to or
aggravated or prolonged by childbirth or
pregnancy or in consequence thereof
o Engagement in dangerous activities
o Mental disorder or psychosomatic dysfunction
o Permanent Total Disability resulting from any
injury ,sickness ,or disease for which medical
care, treatment, or advice was recommended by
or received from a doctor or from which the
insured person suffered or which was present
before the commencement of the period of
insurance

RESEARCH METHODOLOGY

Research Methodology is a way to systematically solve the research

problem. The Research Methodology includes the various methods and
techniques for conducting a Research.
This project comes under the head of “Marketing Research”. The
“Marketing Research” is the systematic design, collection, analysis and
reporting of data and finding relevant solution to a specific marketing
situation or problem”.

Objectives of the Study

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The study was conducted to aiming at fulfilling the following objectives:
• To know about the age group of the respondents who could be
potential customers of the company.
• To know the amount of loan which has already been availed by the
respondents: This objective include the study of the amount of loan
which borrowed by the customers to find the chances of
delinquency.
• To study the Advertising effectiveness in creating awareness among
the public: This objective will help to judge the effectiveness of
advertising strategy used by Fullerton India to create the awareness
among the potential customer about the products and services
offered by the company.
• To study the satisfaction level of customer regarding different 2
wheeler loan schemes provided by Fullerton India Credit Company
Ltd: The final objective of the research is to study the satisfaction
level of the customer who borrowed or want to borrow funds under
particular scheme offered by Fullerton India.
Sampling design:
Target population:
• The target population in this research refers to the prospective
customers visiting the outlets with a view to purchase two wheeler
on loan due to the convenience in collecting the data. The
respondents can be any gender, any income level, any occupation
and any education level.
Sampling unit

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 • The sampling units are prospective customers who want to purchase
two wheeler through finance scheme.
Sampling method
 For this research we used have probability sampling. Probability or
random sampling gives all members of the population a known
chance of being selected for inclusion in the sample and this does
not depend upon previous events in the selection process. In other
words, the selection of individuals does not affect the chance of
anyone else in the population being selected Simple Random
Sampling has been used in this research. Using this method,
individuals are randomly selected from a list of the population and
every single individual has an equal chance of selection.
Sample Size: - We had taken sample size of 200 Respondent.
Total number of Samples Rejected = 00
Total number of Samples Accepted = 200

Location: - We had conducted our survey in various dealers outlet of

major two wheeler manufacturers across Jodhpur.

Sampling plan:
The data has been collected by approaching the prospective
customers across various dealer’s outlets.
Research Design: Descriptive Research design.

Sources of data:

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Primary Data – Primary data are those, which are collected for the first
time, and thus happen to be original in character. Primary Data has been
collected in this study by conducting survey through Questionnaire.

Secondary Data – Secondary Data are those which have already been
collected by someone else and which already had been passed through the
statistical process. Secondary data has been collected in this study through
Magazines, Web sites, Newspaper and Journals.
Data Collection Method:
 Our communication approach was basically structured questioning,
that is personal interview with the aid of printed questionnaires.
Data Analysis:
Appropriate statistical analysis will be adopted. The data will be
tabulated and analyzed.

Limitations of the Study:

 The study is limited to only a few dealer’s outlet which may not
reveal the actual market scenario and customer’s preferences.
 Since the time is less the researcher has taken a sample of 200
people and it will not reveal the whole population of a country.

Analysis of Data
This research is based on primary and secondary data i.e. collected through
primary and secondary sources. The primary data is collected with the help

29
of questionnaire survey and the secondary data is collected from
Newspapers, Internet, and Magazines.
Therefore, the analysis of data is categorized under following two sub
categories that are:-
• Analysis of Primary Data
• Analysis of Secondary Data

Data Analysis and Interpretation

The following information contains the data interpretation of the
questionnaires. The respondent’s responses for the questions have been
interpreted and a finding has been made based on the respondents
responses.

Table 1 : Age of the Respondent

Age Percentage
18-28yrs 30%

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 28-38 yrs 26%
38-50 yrs 24%
More than 50 20%

Interpretation:- The respondent of research comprises of 30% of 18-28

years, 26% of 28-38 years, 24% of 38-50 years and 20% of more than 50
years. This classification of age group is required to know the perception
of person for taking loan at different stage of life. Generally Fullerton
India provides loan to salaried individuals and new entrepreneurs, hence
the company should focus on respondents b/w 18-38 yrs of age.

Table 2:- Annual Income of the Respondent

Income %age
Below 1 Lac 15%
1-2 Lac 40%
2-5 Lakh 35%
Above 5 Lakh 10%

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Interpretation:- Second classification of respondent is based on the basis
of their annual income. This classification is done to know that mostly
which income level people have more demand for loan. This research is
targeted to know the demand of loan by salaried individual and small
entrepreneurs. The company should focus on respondents with an annual
income of 1-5 lakh in order to avoid delinquency.

Table 3 :- Occupation of the Respondent

Occupation Percentage
Government Employee 30.00%
Private Employee 25.00%
Businessman 45.00%

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Interpretation:- The third important consideration which helps to identify
that whether the respondent is salaried individual or small entrepreneurs is
occupation. The occupation comprises of Government Employee, private
employee that fall into salaried individual category and third component of
occupation is Businessman which indicates small entrepreneurs.

Table 4 :- From which source you knew about the various schemes of
Fullerton India?

Sources Percentage
News Paper 44%
Television Media 12%
Internet 20%
Friends 24%

33
Interpretation:- This question is asked in order to know the effectiveness
of the advertisement strategy adopted by Fullerton India. The result found
by the survey shows that most of the customer knew about the various loan
schemes through news paper & internet. Therefore company can make
more use of the news paper and internet to increase its customer base.
Secondly the company also getting the benefit of its existing customer to
advertise its product, because 24% of customer knew about the schemes of
Fullerton India through their friends who had taken loan from Fullerton
India.
Fullerton India is not making use of Television media frequently because it
is very costly , therefore resultantly it contributed only 12% in creating the
awareness among the customer regarding various schemes of Fullerton
India.

Table 5 :- Table of Customers having loan or not

Particular Yes/No Percentage (%)

Loan Taken Yes 70%
No 30%

34
Interpretation:-The answers to the above question reveals the fact
whether the respondents have taken some kind of loan from any source or
not. The findings reveal that 70% of the respondents have taken loan while
30% have not taken any kind of loan.

Table 6 :- How much respondent having loan from other companies.

Particular Loan Percentage

Loan Taken One 70%

Two 20%
Two and above 10%

35
Interpretation:-The findings reveals that out of the total respondents
having loans , 70% have taken one type of loan , 20% have taken two
types of loan while 10% have taken more than two types of loan. This
fact has to be considered by the company while accessing whether to
provide loan to the respondents or not.
Table 7 :- How much loan amount that you have taken

Loan Amount Percentage

Up to 50,000 35%
50,001 to 100,000 45%
1,00,000 and above 20%

36
50,001
1,Up
00,000
toto and
Interpretation:-The above findings reveals that out of the respondents
1,00,000
50000
Above having loan , 35% have taken loan of 50,000 or less , 45% have taken
loan from 50,001 to 1,00,000 and the remaining 20% have taken a loan
of 1,00,000 and above. This parameter gives more knowledge to the
company regarding the probability of default by the respondents and
should be given more weightage by the company compared to the no.
of loans taken by the respondents while deciding whether to provide
loan to the respondent or not.
Table 8 :- Type of loan Customer have

Loan Type Percentage

Personal Loan 50%
Mortgage loan 20%
Home Loan 15%
Two wheeler 10%
Loan
Others 5% 37
Interpretation:- The findings reveals that 50% of the respondents have
taken personal loan , 20% have taken mortgage loan , 15% have taken
home loan , 10% have taken two wheeler loan while remaining 5% have
taken other type of loans.
Table 9 : - Duration of period which the respondent prefer for paying the
loan amount

Duration of period Percentage

12 months 65%
18 months 22%
24 months 8%
36 months or more 5%

38
Interpretation:- The finding reveals that most of the respondents (87%)
want to take only short term loan up to 18 months since short term loan
carries a comparatively low rate of interest.

Table 10 :- Are you satisfied with the rate of interest charge by Fullerton
India?

Yes No
67% 33%

39
Interpretation:- The Fullerton India charges different rate of interest for
different programs for two wheeler loans. Therefore there are some
customers who are not satisfied with the rate of interest. The findings
suggest that 67% customers are satisfied with the rate of interest charging
by Fullerton India and only 33% are unsatisfied. But the company should
review its interest rates from time to time in order to be competitive in the
market and to improve customer satisfaction continually.

Analysis of Secondary Data

Analysis of secondary data includes the review of the news and articles
published in newspaper or magazines regarding Fullerton India Credit
Company Limited.
Article 1
Fullerton India Credit adopts Newgen’s BPM solution
Newgen Software Technologies Limited announced the successful
implementation of its BPM solution (based on Newgen OmniFlow™) at
Fullerton India Credit Company Limited (FICCL)..

40
NEWGEN SOFTWARE Technologies Limited, a market leader in
Business Process Management (BPM) and Enterprise Content
Management (ECM), with impeccable track record of implementing
mission-critical workflow and document imaging solutions, announced the
successful implementation of its BPM solution (based on Newgen
OmniFlow™) at Fullerton India Credit Company Limited (FICCL).
FICCL, one of the largest capitalized Non-Banking Finance Companies
(NBFC) in the country has taken a steep target of setting up a total of 800
branches in the country by the end of 2009 (Till now, the company has set
up over 650 branches).
Speaking of Newgen’s solution that has helped the FICCL in gearing up to
meet its targets, Pramod Krishnamurthy, executive vice president,
technology, FICCL said, “One of the key factors that has accounted for
Fullerton India’s rapid growth and ramping up of operations is the
excellent support provided by the Newgen team. Their state of the art
workflow routing and imaging system (Omniflow) has met our dynamic
requirements very well; it has enabled us to provide high level of customer
service internally and externally. We look forward to a continued long-
term association with them as a valuable partner in our growth.”
Newgen’s implementation at FICCL covers the entire gamut of processes
including loan origination and booking, collections and prospect tracking,
loan against gold and early warning processes. FICCL currently has more
than 350 branches across the country. Number of concurrent users (users
across the branches who can be simultaneously logged into the system),
which is already over 900, is expected to grow up to 1500 in near future.
Speaking of the successful implementation at FICCL, Punit Jain, vice
president, sales and marketing, Newgen Software Technologies, said, “In

41
line with our objective to be an end-to-end BPM solution provider, our
solution has offered FICCL continuous process improvement, rapid
results, visibility and control. With
this implementation, we are glad to support FICCL in reaching its steep
targets and establishing a strengthened network in India.”
Newgen OmniFlow™ 5.0 is a platform independent, scalable BPM
solution that enables automation of organizational business processes. It is
a complete software solution to design, deploy, modify, monitor and
manage business processes, involving minimal programming effort, and is
easily deployable thereby enabling enterprises to streamline their business
processes for greater efficiencies. Built using open technologies Newgen
OmniFlow™ has seamless integration abilities allowing it to be introduced
into almost any existing IT infrastructure.
About Fullerton India Credit Company Limited
Fullerton India Credit Company Limited, a fully owned subsidiary of
Fullerton Financial Holdings, Singapore, is the fastest growing financial
services company in India with an equity capital base of US$150 million
(Rs 7 billion). The company follows a relationship led, community based
business model with close proximity and engagement with the customer to
effectively reach out to them. In a short span of time the company has
disbursed over 1800 crore rupees, opened more than 400 branches spread
across 150 locations and has more than 8000 employees on its rolls.
About Newgen Software
Newgen Software Technologies Limited is a market leader in Business
Process Management (BPM) and Enterprise Content Management (ECM),
with impeccable track record of implementing mission-critical workflow
and document imaging solutions. We have a global footprint, with an

42
installation base of more than 700 customers in over 25 countries. More
than 40 of our customers are Global Fortune 500 companies. Having
domain expertise in industry verticals such as Banking, Financial Services,
Insurance, BPO, Telecom, e-Governance and manufacturing among
others, we are known as one of the fastest implementers of BPM solutions
in the world.
The sales and support offices span across major cities in Asia, North
America, Europe, Africa and the Middle East.
Winner of several awards such as ‘Frost and Sullivan’s Market Leadership
Award for Document Management and Workflow Software & Services for
2006’ and ‘Distinguished Application Product Company’ by NASSCOM,
Newgen Software is an ISO 9001:2000 certified and CMM Level 4
company.

Review of Article 1:
The first review based on the article published in web site BPM.com. This
article talks about the adoption of Newgen’s BPM solution for their
Business process management. NEWGEN SOFTWARE Technologies
Limited is a market leader in Business Process Management (BPM) and
Enterprise Content Management (ECM), with impeccable track record of
implementing mission-critical workflow and document imaging solutions,
has announced the successful implementation of its BPM solution (based
on Newgen OmniFlow™) at “Fullerton India Credit Company Limited”.
Fullerton India has taken this step to achieve its target of setting up a total
43
of 800 branches in the country by the end of 2009 (Till now, the company
has set up over 650 branches).
Newgen’s solution will help the Fullerton India to meet its targets and
another importance of this step is rapid growth. It also enables Fullerton
India to provide high level of customer service internally and externally.
Newgen’s implementation at FICCL covers the entire gamut of processes
including loan origination and booking, collections and prospect tracking,
loan against gold and early warning processes.
Article: 2
Fullerton India Credit Company Limited (FICCL) has bagged the Gold
award for Excellence in Business Process Management (BPM)

Fullerton India Credit Company Limited (FICCL) has bagged the Gold
award for Excellence in Business Process Management (BPM) and
Workflow with Newgen Software’s BPM solutions. The company has
bagged the award for the Pacific Rim region.
The Global Awards for Excellence in BPM and Workflow recognizes user
organizations that have demonstrably excelled in implementing innovative
business process solutions to meet strategic business objectives. The
awards are given for five geographical regions: Europe, Middle East
Africa, North America, Pacific Pacific Rim, and South & Central America
with each region receiving one Gold and one Silver Award.
In order to streamline the workflow and imaging process, Fullerton
deployed the BPM solutions provided by Newgen. The implementation by
Newgen Software at FICCL covered the entire gamut of processes
including loan origination and booking, collections and prospect tracking,
loan against gold and early warning processes. FICCL currently has more
44
than 825 branches across the country.
“We are honored to have been presented with this award. One of the most
important factors which contributed to our success has been the ease with
which business process change has been enabled through Newgen’s
OmniFlow. The solution has enabled us to do this quickly and
economically”, said Pramod Krishnamurthy, executive vice president,
technology,FICCL.
Speaking of the successful implementation of their solution Rajvinder
Kohli, VP—Sales, Newgen Software Technologies, said, “The recognition
is a reflection of our commitment towards our customers to provide them
with best services. The deployment of Omni Flow BPM Suite at Fullerton
India Credit has created history by enabling them to open more than 800
branches in just two years. The solution provides total automation for
Loan Origination, CRM and Collection processes, including
implementation of a unified interface that integrates four different core
applications seamlessly.”
About the awards
The annual Global Awards for Excellence in BPM and Workflow is co-
sponsored by WFMC, BPMFocus.org and BPM.com and now in their 15th
year. While judging the winners, particular attention is paid to
implementations that have showed processes extending beyond the
corporate boundaries to support customers, suppliers, trading partners and
more. There are five geographical regions: Europe, Middle East Africa,
North America, Pacific Pacific Rim, and South and Central America. Each
region receives one Gold and one Silver Award.
About Newgen Software:-

45
Newgen Software Technologies Limited is the market leader in Business
Process Management (BPM) and Document Management System (DMS),
with a global footprint of about 700 installations in over 30 countries.
More than 100 of these implementations are large, mission-critical
solutions deployed at world's leading BFSI, BPO and Fortune Global 500
companies.
Newgen is recognized by distinguished analyst firm IDC in its exclusive
report “Newgen Software: Global Leader in Business Process
Management and Document Management Solutions.”
Winner of prestigious awards, such as CNBC-TV18 “Emerging India
Award 2008”, Frost and Sullivan's “Market Leadership Award for
Document Management System and Workflow Software & Services” and
“Distinguished Application Product Company” by NASSCOM, Newgen
Software is an ISO 9001:2000, ISO 27001 certified and CMM Level 4
company.

Review of Article: 2
Second Review is based on the article published in similar web site i.e
BPM.com. This article reveal about the gold award won by Fullerton India
Credit Company Limited (FICCL) for Excellence in Business Process
Management (BPM) and Workflow with Newgen Software’s BPM
solutions. The company has bagged the award for the Pacific Rim region.
This Awards for Excellence in BPM and Workflow recognizes user
organizations that have demonstrably excelled in implementing innovative
business process solutions to meet strategic business objectives. The
awards are given for five geographical regions: Europe, Middle East

46
Africa, North America, Pacific Pacific Rim, and South & Central America
with each region receiving one Gold and one Silver Award.

Comparative Analysis
Various banks and non banking finance companies have their own set of
offerings as far as the best possible two wheeler loan interest rates in India
are concerned. We will critically analyze the offerings of a few important
players providing two wheeler financing facility. There are various factors
which the companies consider before deciding the amount of finance to be
provided such as:-
a) Age
b) Income / Salary
c) Qualifications
47
 d) Dependant/(s)
e) Assets / Liabilities
f) Credit History etc.
Various features of a few two wheeler loan providers are analyzed below:-
FICCL TWO WHEELER LOANS
• Provides finance facilities for motorbikes and scooters including
Activa.
• Finance from 50% of on road price to 100% finance of on road price
(on selected models) under various schemes.
• 2 mandatory references required in the same city for availing loan
facility.
• Repayment option available from 12 months to 48 months with one
fixed tenure for some schemes.
• Certain special schemes to suit customer’s need.
• Also provides various kinds of insurance covers apart from two
wheeler insurance.
HDFC TWO WHEELER LOANS
• Flexible repayment options, ranging from 12 to 48 months available
even at the point of purchase.
• Repay through post-dated cheques with easy EMIs.
• Hassle free loans - No guarantor required
• Speedy loan approval.
• Available for almost all models at attractive interest rates.
• Free gifts from time to time on approval of Two Wheeler Loan.
• Special Schemes to suit customer’s needs

48
  Fast Track - If a spot approval is what you need, this highly
flexible scheme provides customers a loan of up to 70% with
minimum interest rates.
 Easy Loan - This great scheme provides customers a loan of
up to 85% with minimal documentation. All they need as a
Surrogate Income proof is:
• A copy of credit card and credit card billing statement for
the last 2 months OR
• A repayment track record OR
• Last 3 months bank statements.
ICICI Two Wheeler Loan
ICICI bank avail attractive schemes at competitive interest rates from the
No 1 Financier for Two Wheeler Loans in the country . Finance facility
upto 90% of the On Road Cost of the vehicle, repayable in convenient
repayment options and comfortable tenors from 6 months to 36 months .
ICICI Bank offers the Best Deals on Two Wheeler Loans:
• Finance facility available for all two wheelers ranging from mopeds
to motor bikes.
• Finance up to 90% of the On Road Cost of the vehicle, repayable
in convenient tenure options ranging from 6 months to 36 months.
• Ride Easy Pay Easy with ICICI Bank Two Wheeler Loans.
• In an unlikely case of not meeting norms - one can still avail loan,
any blood relative can be the co-applicant.
• Existing ICICI Bank Customers ride away on favourite Two
Wheeler by availing Loan On Phone.

49
Table:-Additional charges levied by the financial institutions under
consideration

Description of FICCL HDFC BANK ICICI BANK

Charges
Loan Processing 2.5%processing Maximum - 2.50 % of loan
Charges/ fee on total 4% of Loan amount (in
Renewal loan amount Amount or select cities, it
Charges and Rs.200 Rs.600/- can be up to
stamp charges whichever is 5%) or Rs.
are applicable higher 750/-whichever
is higher
Prepayment 4% on the Within 1 year 4% on the
Charges principal from 1st EMI principal
outstanding -6% of outstanding
principal
outstanding
13-24 months
from 1st EMI
- 5% of
principal
outstanding
Post 24
months from
1st EMI - 3%
of principal
outstanding

50
 No foreclosure
allowed within
6 months from
date of
availing the
Two Wheeler
loan
Charges for late Rs.250/- 2.50 % per 2% per month
payment (loans) month on
overdue
principal
Cheque Swap Rs. 500/- Rs 500/- Rs. 500/-
Charges
Cheque bounce Rs 200/- Rs 450/- Rs 200/-
charges
Statement of Rs.400/- per Rs 500/- per Rs. 200/- per
Account Statement Statement Statement
Charges
Revalidation of Rs. 250/- Rs 250/-
Rs. 200/-
NOC charges

51
Findings of the Study:-
• In the analysis of collected data, I found that those customer who
have already taken some type of loan have chances to be delinquent.
• Mainly delinquent customers related to 2-3 or more loan track, we
have to focus on minimum loan track customers.
• Most of the people are satisfied with the rate of interest charged by
Fullerton India.
• FICCL provides finance facilities only on motorbikes and scooters
whereas ICICI and HDFC bank provides loans for all kinds of two
wheelers.
• Two mandatory references are required by FICCL while HDFC and
ICICI do not require any kind of references from friends or relatives
for providing two wheeler loans.
• Norms for eligibility of two wheeler loans are stricter in FICCL
52
 compared to other players.
• Late payment charges are fixed for FICCL while these are variable
depending on the principal amount due for ICICI and HDFC.
• Loan processing charges are cheaper in case of FICCL.
• Customers are the main source of new ideas, and thus their
suggestions are vital for every Company. From the above figure it is
clear that majority of the respondents are satisfied with the services
of FICCL , but no one can satisfy everyone at same time, so
Fullerton India have respondents who are not satisfied with rate of
interest and services of Fullerton India.

Suggestions and Recommendations:-

The following suggestions have been formulated on the basis of above
study. These set of suggestions might help the Fullerton India to improve
the quality of service regarding loan provisions and simultaneously these
suggestions help the Fullerton India to tackle the competition prevailing in
the market, thereby achieving success in the future.
• Firstly Fullerton India should create awareness among the
common public about the various loan schemes which they are
providing.
• Provide management with information to monitor delinquency.
• We have to consider about the living standard of the customers.
• Trade of the customer should be analyzed and residential
information also be strongly analyzed.
• Defining acceptable level of delinquency.

53
• In order to create awareness regarding the loan schemes an
electronic medium of media can put to use to advertise about the
schemes and services provided by Fullerton India. This would
help to change the attitude of the people regarding Fullerton
India.
• FICCL may adopt somewhat lenient procedure regarding norms
for eligibility to two wheeler loan facility to attract more
customers.
• FICCL may provide attractive gift schemes from time to time in
order to enhance customer satisfaction and to deal with the
prevailing competition.

• Fullerton must consider all the products in the two wheeler

segment for providing loan to fully tap the available market
potential.
• Variable late payment charges should be levied by the company
in order to provide greater customer satisfaction and increase
customer loyalty among the customers who make the payment
generally on time.
• The interest rates should be regularly revised in order to attract
more and more customer. Some new plans should be introduced
regularly to cater the special needs of customer which provides
them more offerings and benefits.
• New strategies should be made by the company which enables
them to face the competition with other private leading Non
Banking Financial companies.
• The company needs to focus more on providing value added
54
 services to its customer. This will create Brand loyalty among
customer which indirectly attract more and more customer
because a satisfied customer will always bring more new
customers.
The management of company should be more efficient which enables in
quick processing of the task regarding loans disbursement and loan
collection. This will enable efficiency in the working capital cycle of the
company.

Annexure:-
Questionnaire
Respected Sir/Madam,
I am a student of R.A.P.I.M , Jaipur . As per my course curriculum, I
am doing the market research on “Two wheeler loans, process of
disbursing loan and sales”. So, I need your valuable view for the
questions given below. I shall be grateful to you.

Name :- ________________________
Address :-
________________________
________________________
________________________

1. Age of the Respondent?

55
 A. 18-28yrs
B. 28-38 yrs
C. 38-50 yrs
D. More than 50
2. Annual Income of the Respondent?
A. Below 1 Lakh
B. 1-2 Lakh
C. 2-5 Lakh
D. 5 Lakh and above

3. Occupation of the Respondent?

A. Government Employee
B. Private Employee
C. Businessman

4. From which source you knew about the various schemes of Fullerton
India?
A. News Paper
B. Television Media
C. Internet
D. Friends

5. Do you have a loan?

A. Yes
B. No

56
6. How many Loans do you have?
A. One
B. Two
C. Two and above

7. How much loan amount you have?

A. Up to 50,000
B. 50,001 to 1,00,000
C. 1,00,001 and above

8. Which loan do you have?

A. Personal Loan
B. Mortgage Loan
C. Home Loan
D. Two Wheeler Loan
E. Other Loans

9. Duration of period which the respondent prefer for paying the loan
amount ?
A. 12 Months
B. 18 Months
C. 24 Months
D. 36 Months and more.

57
 10. Are you satisfied with the rate of interest charged by Fullerton
India ?
A. Yes
B. No

Bibliography
Books:-

Kothari ,C.R. “Research Methodology: Methods and Techniques” , New

Age International , Second revised edition , 2008

Websites :-
• http://www.emeraldinsight.com
• www.icicibank.com
• www.hdfcbank.com
• www.fullertonindia.com
• www.fullertonindia.com/index.php?option=com_facileforms&Itemid=2

58
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