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PART - 1
1
INTRODUCTION OF ORGANIZATION
Fullerton India Credit Company Ltd.
Fullerton India Credit Company Ltd.(FICCL) is a non banking finance company
(NBFC) with an ‘A’ category license , issued by the RESERVE BANK OF
INDIA . The company established in FULLERTON INDIA Credit Company Ltd.
(FICCL) is a Non Banking Finance company (NBFC) with 1994 in December
2005
The company came into existence in 2005 which acquired DOVE FINANCE an
12th December 2005 in bring its operation at PAN India level . The management of
this company changed with an investor making an investment in the equity capital
of this company under foreign direct investment policy 99.99% of the share capital
of FICCL is held by ANGELINA INVESTMENT Pet. Ltd. SINGAPORE .
Fullerton India is credit company (FICCL) is 100% subsidiary of Asia
financial holding , which is turn in indirect subsidiary of TEMSEK holding
Singapore Fullerton provides financial products and solutions, customized to the
requirements of mass market and low income population segments. We follow a
customer entric, community based business model. Fullerton India is a subsidiary of
Fullerton Financial Holdings Pvt. Ltd., a wholly owned subsidiary of the US $100
Billion Temasek Holdings, Singapore.
2
Fullerton India operations commenced in January 2006, with a network of branches across
the country to source and service our customers.
Fullerton India's business is to foster sustainable economic development of the large segment
of the middle class population of India which has hitherto, not had access to quality financial
services. At Fullerton India, CARE means Compassion, Action and Responsibility for
Everyone. Community care is an integral element of our vision.
FULLERTON INDIA division
a) COMMERCIAL MASS MARKET (CMM) :-
CMM provide loan to self employed like shop-owner
b) RETAIL MASS MARKET (RMM)
RMM Provide loan to salaried like personal -micro entrepreneur engaged in small
business loan, housing loan, automobiles loans, mort gage loans etc
In late 2009 both division merged in a bank formally called as CRMM
{Commercial Retail Mass Market} which is lead by ‘’Sir
3
BRIEF HISTORY OF THE ORGANIZATION
Fort Fullerton Named after GOVERNER ROBERT FULLERTON was created to
project Singapore, Singapore was then known as TEMSEK the SEA TOWN.
Our parent company, TEMSEK holding incorporated 1974 is one the Asia biggest
investment firms with a diversified $134 Billion Portfolio, spanning various
Industries, financial service is one of the key focus area of TEMSEK, carrying
forward this legacy,
MAJOR INVESTMENT OF TEMSEK HOLDING IN WORLD
1. BANK DANAMON
4
2. ICICI BANK
3. CHINA CONSTRUSTION
4. INDONESIA
5. MAHINDRA & MAHINDRA
6. BANK AND CHINA COSCO
7. NIB BANK PAKISTAN
8. HOLDING IN CHINA
9. FULLERTON INDIA
10. TATA TELESERVICE
11. BANK DANAMON AND BANK
12. INTERNATIONAL INDONESIA
13. QUINTILES
14. TRANSNATION CORPRATION
15. STANDARD CHARTED (USA)
5
Fullerton India is deeply committed to provide quality & financial to the growing
Indian masses
IN may-June 2005 TEMSEK FORMED COMPANY “ASIA FINANCIAL
MANAGEMENT SERVICE”. But on 12th July-AUGEST 2005 it was hold by
financial, then on 12th December 2005 it is acquired dove finance to bring it is
operation at PAN INDIA LEVEL.
On 1st January 2006 came into existence FIRST INDIA CREDIT
CORPORATION and 1st may 2006 the company partnered with centurion “BANK
OF PUNJAB “. But the name of company FIRST INDIA CREDIT
CORPORATION cross with other company name so it changed the name of
company and it become “FULLERTON INDIA”. on 1st January 2007, Now it
successfully completed phase -1 branches roll out date. Of the growing Indian
masses.
The Company being in the financial sector provides Loans and financial
services to customers such as Individuals, Professionals, Partnership firms, Sole
proprietorship and Small and Medium companies. To service its customers, the
Company has two major divisions Vyapaar and Parivaar. The Vyapaar division
provides loans and advances to shop owners & micro-entrepreneurs engaged in
small business enterprises. The Parivaar division provides Loans and Advances to
Salaried Individuals, like Personal loans, Housing loans, Automobile loans,
Mortgage loans, etc.
The Company believes in a branch centric community led Relationship based
approach in meeting customer needs rather than using the services of a third party
6
or a vendor such as Direct Selling Agents. Under the organizational structure, the
Company has in each of it’s branches, a team of Relationship Managers and
Officers who meet customers to understand their business or profession and their
credit requirements. Both the Vyapaar and Parivaar divisions of the Company
leverage the relationship approach in establishing a credit relationship between the
Company and the borrower. Loans are granted on the basis of completed
applications, completing the Know-Your-Customer (KYC) norms, discussion with
the customers about the terms of their loan, rate of interest, repayment arrangement,
etc. The branch only services customers in a limited area around the physical
location of the branch.
The Company’s general policy is to be reasonable, transparent and fair
with its customers. The Company follows established procedures, understands
customer requirements and is reasonable in all its dealings with customers. The
design of the application forms and the relationship based processes, are to make
sure that the Company is transparent in its dealings and transactions. It is with this
in mind that the Company has set up the following guidelines as a Fair Practices
Code in dealing with its customers.
Till Date Successfully Completed phase 1 Branch roll out
7
Date Phase
01st January 2007 Fullerton India
01st May 2006 Partners with Conjuration bank of Punjab
01st January 2006 First India credit corporation
12th December 2005 Acquired Dove finance
12th July-August 2005 Asia financial holding
8
Direct Contact with Localized Credit customers Approval System
Dedicated relationship officer Credit approval takes into acts as a single point of
interface account local market under-with customer with deep standing.
Understanding of his needs and superior .
Under the organizational structure the Company has in each of it’s branches. A
Team Of Relationship Managers and Officers who meet customers to understand
their business or profession and their credit requirement. Both the Vyapar and
Parivaar division of the Company leverage the relationship approach in establishing
a credit relationship between the Company and the customer.
FAIR PRACTICES CODE AND GUIDELINES
9
The current application forms capture full details of the customer – age, profession,
business, office & residential address, income details and other requirements. The
application forms indicate the criteria for minimum and maximum finance available
for personal loans, automobile loans. The application forms specify the
documentation requirements in addition to initial scrutiny of documents submitted.
The Company may call for additional documents for verification purposes. The
application forms are numbered and one section of the form is given back to the
Customer as an acknowledgement. The Company keeps a record of acceptance of
terms and a condition by keeping the original agreements signed by the customer
and provides a copy of the Agreement or terms and conditions to its customers.
All applications are verified and processed within a reasonable period of time. All
applications would go through a De-duplication and Fraud Check though internally
established procedures of the Company, before loans are processed or approved.
The applications which do not satisfy the De-duplication or Fraud Check criteria
would be automatically rejected. Documents needed from the customers will be
collected before disbursement of loan.
The terms and conditions of the loan are clearly spelt out in the Loan Agreement.
The Loan Agreement would specify the tenure, the amount of the loan, applicable
rate of interest, the Equated Monthly Installment (EMI) payments and other fees
charged by the Company. Processing fee, if collected would be clearly mentioned to
the customer. A Welcome Letter is also sent to our customers with Key details &
Repayment Schedule which mentions the EMIs, split by Principal and Interest
components. In the event that the loan is rejected, the Company would
communicate to the Customer verbally or in writing about the rejection. The
10
Relationship Managers/ Officers are empowered to convey the information of the
rejection of the loan verbally.
Customers at the time of disbursement of loan are advised about facilities available
to them and repayments they need to make from time to time. In any event the
Company undertakes to give full details of the loan, its current status, monthly or
quarterly repayments required from time to time on the basis of request made by the
Customers.
The Company would release all the securities to the customer once the loan is
repaid and no dues are outstanding to the Company.
In case of request of a transfer of a loan account from one borrower or a lender to
another Company or a Bank, the transfer would be completed within 21 days of
such a request, provided the customer pays interest and all Company dues up to
date.
As far as recoveries of loans are concerned the Company would follow its own
Collection Policy and procedure which is designed to be customer friendly. Under
the Company’s collection policy detailed guidelines are laid down for following the
Code of Conduct, with delinquent customers. Our collection procedures are
constantly checked from a customer’s point of view.
POLICY
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Corporate governance is about commitment to values and about ethical business
conduct. It is about how an organization is managed. This includes its corporate and
other structures, its culture, policies and the manner in which it deals with various
stakeholders. Corporate governance is primarily the responsibility of the Board of
Directors as a group. The Board of Directors performs its duties with the support of
managerial staff.
Accordingly, timely and accurate disclosure of information regarding the
financial situation, performance, ownership and governance of the company is an
important part of corporate governance. This improves public understanding of the
structure, activities and policies of the organization. Consequently, the organization
is able to enhance the trust and confidence of the stakeholders..
Corporate Governance Philosophy and Practice
The Company believes in adopting, adhering and benchmarking itself
against the best recognized corporate governance practices. Good corporate
12
governance practices stem from the culture and mindset of the organization. While
practicing good corporate governance the company strives to communicate, all the
material developments and its financial performance in a timely, meaningful and
truthful manner.
The Company has infused the philosophy of corporate governance into all
its activities. It has adopted 10 cardinal principles in its functioning, such as Team
Work, Open to Change, Integrity & Discipline, Transparency, Care, Risk Adjusted
Returns, Unlearn Old Ways & Learn New Ways, Innovation, Entrepreneurial
Spirit and Passion to Excel which serves as the means for implementing the
philosophy of corporate governance in letter and spirit.
Further, the Company believes that an active, well-informed and
Independent Board of Directors is necessary to ensure the highest standards of
Corporate Governance. The Board of Directors oversees the performance of the
company and ensures shareholder protection and maximization of their long term
values. There is also an active participation of Independent Directors in the
Company. The Company voluntarily follows the spirit of Clause 49 of the Listing
Agreement, though the said clause is not applicable to the Company it being an
unlisted entity.
For a copy of the detailed Corporate Governance Policy, please send a
written request to the Company Secretary or contact him on 022- 6749 1234.
13
CORE VALUE
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 extremely and within the
organization to be of extremely high character and integrity. Fullerton India Credit
Company Limited does 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 its doing.
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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.
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.
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8.Risk Adjusted Returns:
It’s extremely important for us to evaluate the risks and returns four 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. Entrepreneurs:
Fullerton India Credit Company Limited should not view us as employees of this
Organization but as Entrepreneurs in change four destinies. That sense of ownership
and responsibility is vital for our success.
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
16
biggest investment firms, with a diversified US $134 Billion portfolio, spanning
various industries. Financial services is one of the key focus area of Temasek.
Carrying forward this legacy, Fullerton India is deeply committed to provide quality
financial services to the growing Indian masses.
A company spokesman said, "This is a consolidation exercise, under which
branches have been merged and under-performers have been asked to leave."
Another company official said those people laid-off were probationers and in the
first year of their jobs. "Most of these employees were given six to nine months to
develop their skills and were also provided with adequate training. Those who could
not come up the learning curve have been asked to leave".
A wholly-owned subsidiary of investment major Temasek Holdings, Fullerton
specializes in lending to the mass market which consists of small & micro
entrepreneurs, small shops and trading establishments, self employed segment
(annual turnover of Rs 2.5 lakh to Rs 1.5 core) and the lower level of salaried
individuals (annual salary of Rs 36000 to Rs 3 lakh).
The credit company had 800 branches across the country and employed around
14,000 people. Singapore-based Temasek Holdings has invested $ 300 million in
Fullerton India in the last couple of years, the last infusion was made in October last
year.
Fullerton India has disbursed close to Rs 5,000 core since it started operations in
2006 and has an asset book of Rs. 2,500 core at present. While 70% of its lending
portfolio constitutes loans to the self-employed segment, the remainder consists of
17
loans to salaried individuals and two-wheeler loans. Most of these loans are
unsecured. The company has an exclusive tie-up with Hero Honda and Honda
Motorcycles for two-wheeler financing.
NBFC’s such as CitiFinancial and GE Money have also scaled down
operations significantly in the past six months. While CitiFinancial has brought
down its branch network from 450 branches to 170 branches, GE Money has
reduced its network from 180 branches to less than 80 branches.
Fullerton Holdings is also planning the launch of its subsidiary Fullerton Securities,
which will provide retail broking and wealth management services to clients in the
mass affluent segment. The team is spearheaded by Rajiv Kakar, formerly head of
Citibank’s consumer banking business in Turkey, Middle East and Africa and
thereafter member of the board of Visa International for Central Europe, Middle
East and Africa and Pallav Sinha, formerly Head of Wealth Management at
Standard Chartered Bank, India.
BOARD OF DIRECTORFrancis Andrew Rozario
18
Chairman
Fullerton India Credit Co Ltd
P.O. Box No. 8108
Bandra East
Mumbai 400 051
Mr.Nihal Kaviratne CBE (Independent
Director)
19
Mr. Francis Ribeiro (Independent
Director)
Mr. SN
Menon (IndependentDirector)
Mr. Parvez Vajifdar (Whole Time Director)
Mr. Rajeev Kakar (Director)
Mr. Sodano Thomas (Director)
Mr. SNG Seow Wah (Director)
Mr. Cheo Hock Kuan (Director)
Mr. Jovasky Pang Archana Parekh (Director)
Mr. Cheo
Hock Kuan (Alternate Director)
Organization PERFORMANCE
The retail finance market in India has regained its lost sheen
as loan disbursements in this space is likely to see a 29 per
cent annual growth and is expected to touch a whopping Rs
4.2 lakh core by 2011-12.
“The huge untapped demand, coupled with the rebound in
profitability for financiers, is expected to spur a boom in
retail finance in the coming years,” Infrastructure lending
major IDFC said in a research report.
Not too far in the past, regulatory forbearance and a cyclical
downturn in the economy had taken the sheen off the
lucrative retail finance industry. Pursuant to which, the
market grew by a meager 8 per cent over FY08-10 against
around 50 per cent CAGR over FY05-08
.The growth in the retail finance disbursement would be
largely driven by improving affordability, increasing
propensity to consume and the fact that the penetration level
of retail finance loans is still low.
“We expect annual disbursements in the segment to
accelerate to 29 per cent compound annual growth rate
(CAGR) over FY10-12 to a whopping Rs 4.2 lakh core in
FY12.”
India, home to one of the world’s youngest population (480
million people under the age of 40 years), offers a perfect
ground for proliferation of retail finance. On the back of
improving income demographics and thereby higher
affordability, penetration of retail assets was on the rise.
The report further highlighted the fact that the higher
income bracket in the country is growing faster. The
number of households in the lowest income bracket has
fallen in absolute terms from 41 million to 31 million.
Besides, the proportion of house holds with annual income
below Rs 10 million falling to 36 per cent from 46 per cent
over FY10-15, the report added.
“Burgeoning middle income household’s ideal market for
retail loans, at a time when asset prices are stable and
affordability is rising,” it said.
There are as many as 480 million Indians (or 41 per cent of
population) in age group of 15-40 years with high material
aspirations, on the back of increasing urbanization. Besides,
India has a high proportion of young people who are not
wary of borrowing.
There is ample scope to expand as auto penetration remains
low, as also the 2-wheeler penetration. In mortgages there is
ample scope to grow, besides credit card penetration also
lags, the report added
Comparison of FULLERTON INDIA( FICCL) with other Finance Company
Subject to FULLERTON
INDIA
TMFL
INDIABULLS
Fin. Ser. Ltd
Mahindra &
Mahindra
Fin.
Indusind
Bank
Ltd.
Market Share in %
Jhansi 5% 30% 8% 10% 40%
FI done by out Side
Agency NO YES NO NO NO
TAT in Operation 2 Day’s 3 3 Day’s 2 Day’s
IRR Rate in ( % ) 13 – 16 15 – 16 17.5 13.50
Disbursement of File Chennai Agra Local Local
FCU Agency Yes Yes Yes No No
ORGANIZATION PRODUCT & SERVICES
Our Parivaar branches provide customized products
and solutions especially designed keeping in mind the
unique circumstances and requirements of this segment.
The Parivaar Loans cover a wise range of products,
which include:
Unsecured Personal Loans
Secured Loans
Home Finance
Home Equity Loans
Unsecured Personal Loans:- are the loans which are
provided by financial institution without any collateral
security, this means that there is no risk on owned property.
In India unsecured personal loans are generally taken to
manage higher standard of living, marriages, promoting
business, tours, petty expenses and investment in different
financial schemes. The amount of loan can be ranged from
Rs. 50,000 – Rs. 20 lakh & the tenure for repaying the loan
varies from 1 to 5
Benefits of personal loan
1. A Loan without security : A Personal Loan is not a
secured loan (bank doesn’t ask for any security or
collateral) as against a Secured Loan where one is
required to pledge a house or other security to
acquire a loan
2. Simple Documentation: A Personal Loan can be
accessed with minimal paperwork or documentation
& doesn’t take much time to procure as against a
Secured Loan.
3. No specification about the end use of the loan
amount: You are not required to disclose the end use of the
money borrowed, Banks are concerned about the fact that
whether the borrower is able to pay back the loan with
interest before the due date or not and they confirm this by
checking the income, employment or business & other
factors Of the borrower.
4. Big Loan amount: Personal Loan is a means to fulfill
bigger loan requirement, you can take a loan ranging from
Rs. 50,000 to Rs. 20 lakh.
Basis to Compare Personal Loans
• Compare Interest Rates : Personal Loan can be compared
primarily on the basis of interest rates which vary across
banks depending on your profile which is further linked to
your occupation, salary/income, credit history etc.
The personal loan interest rate ranges from 12% to 25%,
you must go for that loan which is offering you at the
minimum rate.
• Other Charges: You should also check on the other
charges like processing fee, pre-payment penalties and
documentation fee because they increase the overall loan
cost and vary widely across banks.
. • Evaluation of various Loan offers: You should first
calculate the entire loan cost across banks which constitutes
the rate of interest & banks other charges. Evaluate offers
keeping the tenure of the loan constant & compare the rate
of interest, EMIs & other charges. This process will help
you get the best loan deal
• EMIs: EMI is the monthly equated installment which
constitutes the principal amount and EMI Calculator to
compare EMIs across banks the interest on the principal
equally divided across each month in the loan tenure. Use
our
• Tenure: Tenure is the time frame for the personal loan
payments to be paid back to the bank; it ranges from 1 year
to 5 years. If you have a longer tenure you will end up
paying more interest & will have lower EMI, on the other
hand shorter loan tenure will carry higher EMIs & the
interest amount is less. You must compare the loan offers
by keeping the tenure constant.
• Eligibility Check: Before taking a personal loan you must
know the eligibility criteria’s offered by various banks on
the basis of which they offer loans and also compare
personal loan banks. Checking the eligibility parameters
will help you find the best loan deal Check out your
eligibility by various banks.
• Turnaround Time: It becomes one of the most important
factors in evaluation of your loan application when you are
in a dire need of money. Turnaround time is the time which
banks take in processing your loan application; you must
check this parameter which varies from bank to bank.
Charges involved in Personal Loan
The Rate of interest alone should not be judged
before you finalize your application, apart from the
rate of interest, Personal Loan also constitutes other
charges levied by the lender
Which affect the overall cost of your loan & should be
considered while comparing it across banks? Following are
the lists of charges
• Processing fee: It is a fee charged by banks from the
borrowers to process their loan application; it is normally
between 1-2 percentages of the loan amount.
• Prepayment fee: Banks charge borrowers with a fee when
they pay the loan EMIs before the tenure which normally is
between 2-5% of the outstanding loan amount.
• Late penalties: When there is a delay in paying your
monthly EMIs of your loan, banks charge a late payment
fee with your EMIs. They normally range from 2-3% of the
EMI.
• Cheque bounce charges: Banks charge between Rs. 250-
500 for every bounced cheque given for the payment of the
loan amount owing to the insufficient funds in your
account.
• Documentation charges: These are the charges for
verifying the borrower’s documents to processing the loan
application. These vary from Rs. 500-Rs. 1000.
• You should note that the above charges vary across
different banks; you should consider these charges before
choosing the personal loan as they will determine its real
costs.
Documents required in Personal Loan
The documentation process in personal loan is very fast as
against secured loans. Following documents are required by
financial institutions to process the loan application:
Identity proof
3 to 6 months Bank statements
Residence proof
Salary slip
Guarantors & their same set of documents
In case of self-employed banks require balance sheets,
profit & loss account, partnership deed & other mandatory
documents etc years..
Personal Loan Criteria by various banks
Banks offer Personal Loan to borrowers depending on
various factors such as income, employment, continuity of
business so as to make sure that they repay the loan with
interest before the due date. The eligibility criterion of a
Personal Loan is primarily based on the work profile of a
loan seeker which is broadly divided into the following two
classes:
1)Self-employed
2)Salaried
In addition to the above factors banks also consider other
aspects such as age, work experience, existing relationship
with the bank, repayment capacity etc.
To find your eligibility Criteria across various banks in
accordance with the above parameters; Deal4Loans has
brought in the Eligibility Criteria Check for Personal Loan
seekers.
How does the Cibil Score affect your loan application?
This a norm wherein the banks before giving Personal Loan
checks the database of all loan borrowers in the country by
the Credit Information Bureau of India (CIBIL) which is
called the Cibil Score. If there has been a default in your
loan payment; your loan application would certainly be
rejected. Your Cibil score ranges from 100 to 999, for
instance if your credit score is 100 then your loan
application might be out rightly rejected.
On other hand if it is higher say 800, then your loan
application would be processed faster & will be rewarded
with lower interest rates & discounts in processing fee &
other charges.
You can improve your credit score by repaying your loan
EMIs on time and always pay the minimum payment on
your credit card to avert from the bad credit score.
Reducing Interest Rate or Flat Interest Rate, which is
better?
The Personal loans Interest Rates vary between 14% and
25% depending on your profile & payment ability. There
are basically two types of interest Rates offered by banks
which are
1) Reducing Balance Interest Rate
2) Flat Interest Rate
In the Reducing Interest Rate calculation method, the
interest on your loan keeps on reducing as it is calculated
on the reduced principle amount which gets reduced daily,
monthly. Quarterly or annually. Flat Interest Rate
calculation method on other hand implies that your rate of
interest remains the same & is calculated over the entire
loan period. The outstanding loan amount is never reduced
over the loan tenure.
It is always advised to take a loan at reducing balance
interest rates as the Flat rate calculation comes out to be
really expensive.
Important pointers in Personal Loan Increase your loan.
Eligibility: You can increase your eligibility of the loan
amount by clubbing your income with your spouse’s
income.
Relationships with Banks: You can get discounts on
interest rates if you take a loan from a bank that you already
deal with for your existing relationship, in this case banks
will consider your past records of credit repayments and
your saving account balance and you will be offered
discounts on the basis of your current relationship.
Cibil Score Check: You must know that your credit history
play a very important role in the acceptance of your loan
application as CIBIL keeps a record of credit history by
collecting your credit data from various financial
institutions. A decent credit score not only gives a green
Personal Loan Rate of Interest
Bank Interest Rates
Citibank
16.5%-18.5%
HDFC Bank15.5%-22%
Fullerton India19%-28%
CitiFinancial 16%-21%
SBI16%-20%
Standard Chartered Bank15.5%-22%
Signal to your loan application but also offers you lower
interest rates by the bank.
Penalties: If you think of closing your loan earlier, this
will invite the pre-payment charges levied by the bank
which are up to 5% of the outstanding loan amount. Some
banks have this norm wherein you are not allowed to close
your loan within the first six months of your loan term. You
should also know about the charges taken by the bank for
paying your EMI late.
Home Finance Home loans are provided based on
the market value, mainly estimation given by banks or the
registration value of the property. Availing various types
of house loans to suit your individual needs at the lowest
rates & easy financing can now fulfill the need for a house
of your own.
Home loan is not a one-time decision; do review the
market periodically before availing them. Today there are
unlimited numbers of banks in the country wanting to give
out Home loans. Given this scenario, it may seem easy
getting yourself a loan. But is it really??
Buyers tend to make mistakes while entering into deals,
which may not be beneficial for them, so better compare
all the variables before signing a loan agreement by
different banks. However the loan agreement should be
finalized only after reading the terms and conditions
carefully.
Asset Products
Enjoy attractive interest rates and the convenience of
doorstep service from enquiry to disbursement. The
facility to transfer your existing higher interest rate loan to
FULLERTON INDIA Bank is also available
Homes loan
Processing fees Waived
Interest rate Preferential rate of interest
Secured Loans:- A homeowner has a better chance of
borrowing a homeowner loan and securing the amount
against his home. A secured loan is because one puts up
his home as a Collateral or security against the loan of the
lender. It gives a homeowner an added advantage of
obtaining large amount loans at minimal interest rate
payable over longer period of time.
Purpose:
There are two purposes for a loan secured by debt.
In the first purpose, by extending the loan through securing
the debt, the creditor is relieved of most of the financial
risks involved because it allows the creditor to take the
property in the event that the debt is not properly repaid. In
exchange, this permits the second purpose where
the debtors may receive loans on more favorable terms
than that available for unsecured debt, or to be
extended credit under circumstances when credit under
terms of unsecured debt would not be extended at all. The
creditor may offer a loan with attractive interest rates and
repayment periods for the secured debt.
Characteristics:
1. Larger loan amounts
Secured lenders are more willing to give big loans. If you
need a significant amount, a secured loan will probably be
the way to go.
2. Longer payment period.
Many secured lenders provide long payback times. This, of
course, will make your payments smaller. If you prefer to
pay low monthly amounts for a fairly long period, you may
consider a secured loan.
3. Lower interest rates .
Because the lender has recourse in case of default, they are
able to offer lower interest rates. Once again, this will make
your payments lower and possibly make your payback time
shorter.
The following flowchart shows the secured offered under
the RMM business:
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)
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 Condition
Two Wheeler Product- Various Programs Scheme Sheets for Various Programs
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
• Interstates
• Tenure offered
Let’s look at the various programs now
Product program-Normal LTV
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
Product Program – 85% LTV Income Dox Program
In this all income document are collected (salary
slip/certificate, ITR &
banking)
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
•
Maximum tenure is 30 months, EMI is not more than
Rs.2000 ,and
LTV is 70% vehicles ORP
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
Product Program – Fast Track
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 Model
• 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%
• Cheque bounces 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 Personal
Accident and Disability Cover of Rs 1 lack Life
Insurance Cover of Rs 25,000
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
Critical illness Cover will not be available for all individuals above the age of 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:
Death due to suicide will not be covered during the first 12
month
Any other exclusion will be decided on medicals only.
9Critical 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:
Pre –Existing condition
Any critical illness discovered within 90
days of inception of the policy
Diagnosis after end of the policy period
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
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
Sight of any one eye or both eyes or of the actual
loss by physical separation of two entire hands
One foot or both feet
One entire hand and one entire foot
One entire hand
Exclusions:
Death from intentional self-injury, suicide or
attempted suicide
War and acts of terrorism
Whilst under the influence of intoxicating liquor or
drugs
Directly or indirectly caused by venereal diseases or
insanity
Directly or indirectly caused by contributed to or
aggravated or prolonged by childbirth or pregnancy
or in consequence thereof
Engagement in dangerous activities
Mental disorder or psychosomatic dysfunction
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
Difference b/w secured
loan and unsecured loan
You have decided to push the boat out and you decide on a
large purchase, which requires a loan to pay for it. And with
all the advertising on TV and in newspapers for secured
loans, unsecured loans etc it leaves you with a dilemma on
what type of loan will be best for your purchase and wallet.
So, what are the differences and what are the pros and cons
of each one.
Secured Loans
This is a loan that is secured on your property. The reason a
lender will want to secure the loan on your property is that
they want some form of collateral should you not be able to
pay your loan back. So think of these loans in a similar way
to your mortgage which is also a big loan secured against
your home. As a result the lending companies will always
make it clear with the following statement:
"THINK CAREFULLY BEFORE SECURING OTHER
DEBTS AGAINST YOUR HOME. YOUR HOME MAY
BE REPOSSESSED IF YOU DO NOT KEEP UP
REPAYMENTS ON A MORTGAGE OR ANY OTHER
DEBT SECURED ON IT"
The main advantage of a secured loan is that you will be
able to borrow larger amounts of money and also benefit
from lower interest rates than unsecured loans.
As the loan is borrowed against a property it is only open to
homeowners and tenants cannot apply.
Unsecured Loans
These types of loans are the complete opposite to secured
loans in that you don't need to put up your house as
collateral. As a result most lenders will only allow you to
borrow up to large amount although depending on your
credit history some lenders may allow you to borrow up to
the same amounts as a secured loan.
The interest rates on an unsecured loan are also higher and
can be as much as 10%. So the repayment amount for a
RS10,000 secured loan compared to a RS10,000 unsecured
loan can be significantly lower.
Unsecured loans are also available to Tenants, which makes
the demand for them to be much higher.
So what type of loan should you try? As you can tell from
the above it depends really on whether you are a
homeowner or not and whether you want to take the risk of
securing a loan against a property. However if you want a
loan in large amount then you may have no option but to
take out a secured loan if you are a homeowner.
Armed with this information you should make a
decision based on the above factors along with whether
you can make the repayments ir-regardless of what type of
loan you try. Not keeping up with repayments on either
type of loan will give you a bad credit rating for the future
so think carefully before you apply and don't borrow any
more than you can afford.
Home Equity Loans:- A home equity loan (sometimes
abbreviated HEL) is a type of loan in which the borrower
uses the equity in their home as collateral. These loans are
useful to finance major expenses such as home repairs,
medical bills or college education. A home equity loan
creates a lien against the borrower's house, and reduces
actual home equity. Home equity loans are most
commonly second position liens (second trust deed),
although they can be held in first or, less commonly, third
position. Most home equity loans require good to
excellent credit history, and reasonable loan-to-value and
combined loan-to-value ratios. Home equity loans come in
two types, closed end and open end. Both are usually
referred to as second mortgages, because they are secured
against the value of the property, just like a traditional
mortgage. Home equity loans and lines of credit are
usually, but not
always, for a shorter term than first mortgages. In the
United States, it is sometimes possible to deduct home
equity loan interest on one's personal income taxes.
Difference between a home
equity loan and
Home Equity Line of Credit
A HELOC is a line of revolving credit with an adjustable
interest rate whereas a home equity loan is a one time lump-
sum loan, often with a fixed interest rate.
This is a revolving credit loan, also referred to as a home
equity line of credit, where the borrower can choose when
and how often to borrow against the equity in the property,
with the lender setting an initial limit to the credit line based
on criteria similar to those used for closed-end loans. Like
the closed-end loan, it may be possible to borrow up to
100% of the value of a home, less any liens. These lines of
credit are available up to 30 years, usually at a variable
interest rate. The minimum monthly payment can be as low
as only the interest that is due.
Typically, the interest rate is based on the Prime rate
plus a margin. When considering a loan, the borrower
should be familiar with the terms recourse and non recourse
loan, secured and unsecured debt, and dischargeable and
non-dischargeable debt.
US traditional mortgages are usually non recourse loans.
"Non recourse debt or a non recourse loan is a secured loan
(debt) that is secured by a pledge of collateral, typically real
property, but for which the borrower is not personally
liable."[1] A US home equity loan may be a recourse loan for
which the borrower is personally liable. This distinction
becomes important in foreclosure since the borrower may
remain personally liable for a recourse debt on a foreclosed
property.
Home equity loans are secured loans. "The debt is thus
secured against the collateral — in the event that the
borrower defaults, the creditor takes possession of the asset
used as collateral and may sell it to satisfy the debt by
regaining the amount originally lent to the borrower."Credit
card debt is an unsecured debt such that no asset has been
pledged as collateral for the loan. Using a home equity loan
to pay off credit card debt essentially converts an unsecured
debt to a secured debt.
When deciding upon a type of loan, the borrower should
also consider if the debt is dischargeable in bankruptcy. For
instance, US student loans are "practically non-
dischargeable in bankruptcy"
Home equity loan fees
A brief list of fees that may apply home equity
loans:
Appraisal fees
Originator fees
Title fees
Stamp duties
Arrangement fees
Closing fees
Early pay-off fee
Surveyor and conveyor or valuation fees may also apply to
loans but some may be waived. The survey or conveyor and
valuation costs can often be reduced, provided you find
your own licensed surveyor to inspect the property
considered for purchase.
Appraisal fees:- Charges payable to
a qualified appraiser for estimating the market value of
a property, as a fixed fee or one based on a percentage of
the estimated value.
Originator fees:- A fee related to establishing your loan.
The exact use can be unclear, but the fee ultimately
compensates your lender or broker for putting your loan in
place.
Examples:
The average home buyer can expect to pay between 0.5% to
1% for origination fees
Title fees:- Buying or selling a home comes with closing
costs on both sides. Most commonly, these closing costs
are referred to as title fees. While some closing costs will
be incurred from a lender, when selling a home, the
majority of the fees for a seller will come from the title
company. Title companies keep on file all information
about a property, its boundaries and any liens or negative
information attached to a home or piece of land
Stamp duties : - Stamp duty in India is a tax, much like the
sales tax and income tax that are collected by the
Government. All such taxes must be paid in full and on
time. If you make delay in the payment then you have to
face the penalty. Penalty involves fine or even
imprisonment. If you want to produce any instrument or
document in the court, it needs to be done on the stamp
paper only then it is considered valid and can be used as an
evident. The court cannot admit instruments or documents
that are not properly stamped as evidence
Arrangement fees:- The arrangement fee is charged
to cover administration and primarily reserving the funds
for fixed rate and/or discounted rate mortgages. This fee
may be paid separately added to the mortgage or in rarer
cases taken from the mortgage loan.
Arrangement fee is commonly added to the spread in Euro
syndicated and syndicated loans.
Our Vyapaar branches provide customized products
and solutions, especially designed keeping in mind the
unique circumstances and requirements of this segment .
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
turnover of less than Rs.25 Min 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.
We understand that smaller customers do not create a
distinction between personal borrowing and business
borrowing; the facility is designed to cover both needs.
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
centre of business hubs convenient from an access and
timing perspective
One Stop Shop - For all business and personal financial
needs
Chareges for Two Wheeler:-
Two wheeler Charges
Processing Fees Waived
Pre approved limit(customers
having relationship > 6 months)
Up to 96% of road value
Interest Rates 1% rate lower than existing rates
Documentation No Income Proof required.
Only Identity proof required.
Special Offer Special offers with manufacturers from time to
time
Priority Processing Yes
Charges for Auto loan:-
Auto Loan
Enhanced Loan Limits Loan amount up to 95 % of Ex-
showroom value on new cars.
90% of the valuation amount for
used car loans.
Loans tenor up to 5 years.
Repayment in 60 installments.
7 years repayment option on
select models.
Documentation (for customer having
relationship > 1 year)
Interest rates
No income documents required
Preferential Rate of Interest
Special offers FULLERTON INDIA Bank enjoys
preferred financier status with 12 leading
manufacturers and has special tie- ups
with most manufacturer-dealers to ensure
the highest quality service to you.
Priority Processing Yes
Key components of the Company
process:
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
intermediate, 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 under
standing of their local environment and immediate
situation.
We participate actively in serving the community in
and around the 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.
Loan Disbursement process of Fullerton
India
MAJOR CHALLENGES OF THE
ORGANIZATION
Challenges in the growth path
The finance industry is going to observe polarization of the
players
For survival, the Housing Finance Institution should have-:
Good investment in people and system
Should have strong Business Origination process in
place
Excellent Credit Appraisal Skills
Monitoring the Systems in place
Strong Collection mechanism in place
HFI’s survival can be at stake
PART - 2
INTRODUCTION OF PROBLEM
FULLERTON INDIA offers wide variety of Loans
Products to suit your requirements. Coupled with
convenience of networked branches and facility of E-
channels like Internet, FULLERTON INDIA Bank brings
loan at your doorstep. Select any of our loan product and
provide your details online and our representative will
contact you for getting loans.
The No. 1 Home Loans Provider in the country,
FULLERTON INDIA Bank Home Loans offers some
unbeatable benefits to its customers - Doorstep Service,
Simplified Documentation and Guidance throughout the
Process. It's really easy!
The NO 1 financier for car loans in the country. Network of
more than 1500 channel partners in over 780 locations. Tie-
ups with all leading automobile manufacturers to ensure the
best deals. Flexible schemes & quick processing. Hassle-
free application process on the click of a mouse.
Range of services on existing loans & extended products
like funding of new vehicles, refinance on used vehicles,
balance transfer on high cost loans, top up on existing
loans, Extend product, working capital loans & other
banking products. Farm EquipmenAvail attractive
schemes at competitive interest rates from the No 1
Financier for Two Wheeler Loans in the country. Finance
facility up to 90% of the On Road Cost of the vehicle,
repayable in convenient repayment options and comfortable
tenors from 6 months to 36 months. Ride home on your
Dream Two Wheeler with our hassle free finance.
Preferred financier for almost all leading tractor
manufacturers in the country. Flexible repayment options in
tandem with the farmer's seasonal liquidity. Monthly,
Quarterly and Half-yearly repayment patterns to choose
from. Comfortable repayment tenures from 1 year to 9
years.
OBJECTIVES OF STUDY
To find the preferences of customer regarding
various types of loan:
This objective focused on the judgment of customer
preferences regarding various types of loan provided by
Fullerton India such as Secured Loan, Unsecured loans and
Home Equity Loan.
To know the amount of loan generally availed by
the respondents: This objective include the study of
the amount of loan which is generally borrowed by
the customers
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 loans schemes provided by Fullerton India
Credit Company Ltd.
STUDY LITERATURE OF
Products of the Organization:
Unsecured Personal Loans
Secured Loans
Home Finance
Home Equity Loans
Insurance
Competitors:
INDIABULLS Fin. Ser. Ltd
Mahindra & Mahindra Fin.
Induslnd Bank Ltd.
TMFL
STATEMENT OF HYPOTHESIS
A hypothesis is a specific statement of prediction. It
describes in concrete terms what you expect to happen in
your study. Not all studies have hypothesis. There is no
formal hypothesis, and perhaps the purpose of study is to
explore some area more thoroughly to develop some
specific hypothesis or prediction they can be tested in future
research.
Two kinds of hypothesis, these are as follows
Alternative hypothesis, usually the hypothesis we support
and the hypothesis that describes the remaining possible
outcomes are termed the null hypothesis.
Alternative hypothesis is denoted from HA or H1
Null Hypothesis is denoted from HO or H0.
For this study researcher found general or alternative
hypothesis suitable and according to researcher the
alternative hypothesis for this study is:
According to research to performance appraisal in
FULLERTON INDIA, the hypothesis is mention below:
Method of performance appraisal is faire enough.
Performance appraisals by experts or staff
managers are more accurate than appraisal done
by peer group.
Monthly performance appraisal keeps employees in
discipline and dedicated towards their jobs.
4. Performance appraisal has considerable impact on
satisfactions of employees.
Scope of study
In present scenario with the growing complexities of
the industrial society, work is simply a means of
earning a living this appears to be an over
simplification. Work serves many other functions
for an Individual. An individual sense of well being,
of doing something worthwhile, of having some
considerations, may be so compulsive that man may
continue to work even if they are not pressed by
Economic needs.
Performance appraisal provide needful helping for
the following:
Status
Job Security
Feelings of Recognition
Feeling of Achievement
Feeling of Possible Growth
Feeling of Responsibility
Group Feelings
Feeling of Interest in the performance of Job.
Feeling of Increase Status
Performance Effects
Change in rate of output.
Change in Quality of Work
Effects on Interpersonal Relationships
Research design
Methodology is the study of methods it deals with the
philosophical assumption underlying the process of
research.
A method is specific technique for data collection under
certain philosophical assumptions.
The practical work that lies between the theoretical
framework and practical analysis.
MOTIVATION IN RESEARCH
Desire to get a MBA degree as well as
research certificate from the respected
divisions.
Desire to face the challenge in solving the
unsolved problems i.e. to help Fullerton
India in performance appraisal.
Desire to get intellectual joy of doing some
creative work in Fullerton India.
Desire to be of service to society i.e. making
other banking sector to realize use of
performance appraisal.
DATA PRESENTATION:-
There are two basic approaches to research via, quantitative
approach and qualitative approach. The former involves the
generation of data in quantitative form, which can be
subjected to regress quantitative analysis in a formal and
rigid fashion. This approach can be further sub classified
into inferential, experimental and simulation approaches to
research.
This project research is based on qualitative approach
where research is concerned with subjective assessment of
attitudes, opinions and behavior of the employees, the
knowledge they have related with their job or having extra
knowledge which will be helpful for the organization.
Basically two type of method
1- Primary data
2- Secondary data
Primary Data
Primary Data are those, which are collected afresh and for
the first time, and thus happen to be original in character.
We collect primary data during the course of doing
experiments in an experimental research but in case we do
research of the descriptive type and perform survey s
whether sample survey or census surveys, then we can
obtain primary data either through observation or through
personal interviews. In other words, means there are several
methods of collecting data.
Primary data is the nerve of any research, on the basis of
which one can explore the realities hidden insight. In this
present research, on the basis of the nature of this research
structured mixed questionnaire have been formulated by
various item analysis. Questionnaires have been sending
through e- mail to various places to employees for response.
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 Omni Flow™) at Fullerton India Credit Company
Limited (FICCL).
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
Omni Flow™) 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 800branches in
the country by the end of 2009 (Till now, the company has
setup 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
(Omni flow) 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
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 Omni Flow™ 5.0 is a platform independent,
scalable BP 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 Omni Flow™ 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 core rupees, opened more
than 400 branches spread across 150 locations and has more
than 8000 employees on its rolls.
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 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 for2006’ 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 Omni Flow™) at “Fullerton
India Credit Company Limited”. Fullerton India has taken this
step to achieve its 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).
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 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
Omni Flow. 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 recognitions 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 800branches 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 15thyear. 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: 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 500companies.
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 4company.
Review of Article: 2
Second Review is based on the article published in similar
web site i.eBPM.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 BP
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 Africa, North America, Pacific. Pacific Rim,
and South & Central America with each region receiving
one Gold and one Silver Award
ANALYSIS OF DATA:-
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
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 50years. 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
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 lakhs in order to avoid delinquency.
Table 3:- Occupation of the Respondent
Occupation Percentage
Government Employee 30.0%
Private Employee 25.00%
Businessman 45.0
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?
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 no
Interpretation:-The answer 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 while30% have not taken any
kind of loan.
Table 6:- How much respondent having loan from other
companies?
Interpretation:-The findings reveal 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?
Interpretation:-The above findings reveal that out of the
respondents
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 weight age 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 has?
Interpretation: - The finding reveals that 50% of the
respondents have
Taken personal loan, 20% have taken mortgage loan, 15%
have taken home loan, and 10% have taken two wheeler
loans while remaining 5% havetaken other type of loans.
Table 9: - Duration of period which the respondent prefer
for paying the
Loan amount?
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%
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
Findings
From the above study it is clear that 62% of the respondents
have taken loan under parivaar scheme and only 38% taken
loan under Vaypaar scheme. Therefore it shows that
Fullerton India is favorable in short term loan segment
which is provided by Fullerton India under Parivar scheme
and especially for salaried individual.
The above study depicts that most of the
respondents availed loan of amount ranging from Rs
.2-5 Lakh .Therefore, if Fullerton India introduce
more scheme under this range to meet the different
demand of customers
The above study depicts that mostly the respondents
preferred the loan having repayment period from 2-
5.Therefore the company needs to add some more
benefits to the long term period loan so that the
demand of long term loan will increase which
increase the profit of company, because as the
repayment period is long than the source of income
(Interest)is sustain for long period.
Most of the people are satisfied with the rate of
interest charged and by Fullerton India
Fullerton India mostly disbursed loan as secured
loan, this will provide the safety and it will avoid the
increasing number of Non-performing asset and bad
debts.
Customers are the main source of new ideas, and
thus their suggestions are vital for every
Company .Majority of the respondents are satisfied
with the services of their present bank so they do not
want any change in the rate of interest and services,
but no one can satisfy everyone at same time,
Fullerton having respondents who are not satisfied
with rate of interest
Suggestions
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.
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 inorder 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 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
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
Primary contact point for all the financial requirements of
Fullerton India Credit Company Limited customers.
Limitation
of Liability
.1- These terms and conditions shall be governed by and
construed in accordance with Indian law. In the event of
disputes, controversies, differences of opinion and claims
arising out of or in connection with Fullerton India
Privilege Program or in any way relating hereto or any
term, condition or provision herein mentioned or the
construction or interpretation thereof or otherwise in
relation hereto, Fullerton India and Member shall first
endeavor to settle such differences, disputes, claims or
questions by friendly consultation and failing such
settlement, the same shall be referred to Arbitration of sole
Arbitrator, to be appointed by Fullerton India for
determination of specific issues/disputes. Such arbitration
shall be held in accordance with the Arbitration and
Conciliation Act, 1996 or any statutory modification or re-
enactment thereof for the time being in force and shall be
held in Mumbai and be conducted in the English language.
Subject to the provisions of this clause, for matters referable
to civil court, Fullerton India and each Member submit to
the exclusive jurisdiction of the competent courts at
Mumbai.
2-The Fullerton India Privilege Program shall be subject to
usual force majeure events and on occurrence of such event,
the scheme shall deem to be automatically withdrawn.
3-. All communication /notice with regard to this scheme
should be addressed to:
4- In all matters relating to the Fullerton India Privilege
scheme, the decision of the Company shall be final and
binding in all respect.
5- The Fullerton India Privilege Program is not available
wherever prohibited
Summary conclusion:-
A charge applied by the company is low which is very good
for the company. It helps to make the company work better
and show good result. This will help the company grow
financially The analysis suggests that Fullerton will benefit and
recover its investment in a shorter time compares to its original
plans as the company fulfill its agenda to roll out the system to
more branches in coming years opening of more branches will
help company to connect to the people more easily . the growth
rate of company is good as compare with the other finance
company .company is also planning to make paper less so that its
customer feel more easy to apply for the loan Quick View tool
helped Fullerton India users to view the most current
information which enables them to focus on areas requiring
immediate attention. “It is easier for the users to see the
data graphically and slice and dice information quickly. Its
intuitive user-interface, ease of use and
Flexible features helped them to drill down the data and
make easy access to all book keeping records in a summary
form Fullerton plans to deliver additional products and services
via
Biometric solutions, will likely increase the benefits of the product
delivery system further for both Fullerton and the end customers
PART -
3
BIBLIOGRAPHY
Research Methodology by Kothari
(C.R. “:
Methods and Techniques”)
Marketing management by Philip
Kotler
Business world
Websites referred:
• http://www.emeraldinsight.com
• www.icicibank.com
• www.hdfcbank.com
• www.fullertonindia.com
• www.fullertonindia.com
Annexure:-
QUESTIONNAIRE
Respected Sir/Madam,
I am a student of R.K.G.I.T. (GZH.) As per my course
curriculum, I am doing the market research on “business
loan and personal loan 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?
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
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 prefers for paying the loan
Amount?
A.12Months.
B.18Months.
C.24Months.
D. 36 Months and more.
10. Are you satisfied with the rate of
interest charged by Fullerton India ?
A. Yes
B. No