VINAYAKA MISSION UNIVERSITY SELAM A Project Study Report On Training Undertaken at

Titled“BUSINESS OF PERSONAL LOAN AND AUTO LOANS THROUGHOFF MARKETING CHANNELS” Submitted in partial fulfillment for the Award of degree of Master of Business Administration (20011-2012)

PREFACEThis project study has been conducted in the lieu of requirement laid down by Vinayaka mission University, salem, for the degree of course of master of business administration.Under this requirement, every student is supposed to undergo summer training in theindustrial unit or commercial organization. It enables the students to understand thepractical aspect of the conceptual studies learned by them in the commercial subject.The present report is result of my summer training of HDFC Bank in auto loans innagpur. The topic chosen for study is Business of personal loans through off MarketingChannels provided By HDFC. The study was conducted at the Nagpur branch by analyzingthe loan facility provided by HDFC and gathering information from Regional Manager andfrom market surveys.The duration of training was 60 days, during which I tried to understand the loanprocess of HDFC Bank, Nagpur Loan Department by observing the actual practicefollowed by bank in this regard.An effort has been made to present this report as cohesive whole of the activitiesconcerning the loan facility provided by HDFC Bank.

CONTENT

1 INTRODUCTION OF BANK2 OVERVIEW AND PROFILE OF HDFC3 SERVICE PROVIDEC4 TYPE OF LOAN5 OBJECT OF STUDY6 LOAN PROVIDED BY HDFC7 PERSONAL LOAN,AUTO LOAN (OVERVIEW)8 FEATURES AND BENEFITS9 PRODUCT OFFRING10

APPLICATION PROCESS

11

DOCUMENTATION REQUARE

12

CONTECT POINT VERIFICATION

13

OFF MARKETING CHANNEL

14

ANALYSIS OF SURVEY

15

FEEDBACK

16

SWOT

17

SUGGESTIONS

18

BIBLOGRAPHY

INTRODUCTION OF BANKBanking is a base of today’s world. The bank word is too old. The origin of the word bank isshrouded in the mystery. It is made from the word “Banchi” or from Greek word “Banque” orSoon after the people realized the importance of money as a medium of exchangethey recognized the need of storing it. This safe place ultimately evolved into financialinstitution that accept deposit and make loans i.e. the modern banking system. As per asIndia concerned the original banking operations were in the hands of the indigenousbankers who dominated the finance to the extended that they credit to the govt. as well.A bank is an institution which accepts deposits withdraw by cheque and makes loanand advances for the purpose of earning profits.The Banking Companies Regulation Act-“The accepting, for the purpose of

lending and investment, of deposits of money from the public, repayable on demand orotherwise, and withdraw able by cheq, draft and otherwise.”Kenly-“Bank is an establishment which makes to individuals such advances ofmoney as may be required and safely made, and to which individuals entrust money whennot required by them for use.”Thus the following are the functions of a bank:-Accepting depositsAdvancing moneyCollection and payment of credit and other instruments.Sale and purchase of stock exchange securities.Acting as information bankRemittance of fund

Over View & Profile of HDFC BankPROMOTOR

HDFC is India’s premier housing finance company and enjoys an impeccable track record inIndia as well as in international markets. Since its inception in 1977, the Corporation has

maintained a consistent and healthy growth in its operation is to remain the market leader inmortgages. Its outstanding loan portfolio covers well over a million dwelling units. HDFC hasdeveloped significant expertise in retail mortgage loans to different market segments andalso has a large corporate client base for its housing related credit facilities. With itsexperience in the financial markets, a strong market reputation, large shareholder base andunique consumer franchise, HDFC was ideally positioned to promote a bank in the Indianenvironment.BUSINESS FOCUSHDFC Bank’s mission is to be a World-Class Indian Bank. The objective is to build soundcustomer franchises across distinct businesses so as to be the preferred provider ofbanking services for target retail and wholesale customer segments, and to achieve healthygrowth in profitability, consistent with the bank’s risk appetite. The bank is committed tomaintain the highest level of ethical standards, professional integrity, corporate governanceand regulatory compliance. HDFC Bank’s business philosophy is based on four core values– Operational Excellence, Customer Focus, Product Leadership and People.CAPITAL STRUCTUREThe authorised capital of HDFC Bank is Rs 550 crore (Rs. 5.5 billion). The paid up capital isRs 424.6 crore (Rs. 4.2 billion). The HDFC Group holds 19.4% of the bank’s equity andabout 17.6% of the equity is held by the ADS Depository (in respect) of the bank’s AmericanDepository Shares (ADS) Issue. Roughly 28% of the equity is held by the ForeignInstitutional Investors (FIIs) and the bank has about 570,000 shareholders. The shares arelisted on the Stock Exchange, Mumbai and the National Stock Exchange. The bank’sAmerican Depository Shares are listed on the New York Stock Exchange (NYSE) under thesymbol ‘HDB’

.DISTRIBUTION NETWORK

HDFC Bank is headquartered in Mumbai. The bank at present has an enviable network ofover 1229 branches spread over 444 cities across India. All branches are linked on anonline real-time basis. Customers in over 120 locations are also serviced throughTelephone Banking. The Bank’s expansion plans take into account the need to have apresence in all major industrial and commercial centers where its corporate customers arelocated as well as the need to build a strong retail customer base for both deposits and loanproducts. Being a clearing/settlement bank to various leading stock exchanges, the Bankhas branches in the centers where the NSE/BSE has a strong and active member base.The Bank also has a network of about over 2526 networked ATMs across thesecities. Moreover, HDFC Bank’s ATM network can be accessed by all domestic andinternational Vise/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American ExpressCredit/Charge cardholders.MANAGEMENTMr. Jagdish Kapur took over as the bank’s Chairman in July 2011. Prior to this Mr. Kapurwas a Deputy Governor of the Reserve Bank of India.The managing Director, Mr. Aditya Puri, has been a professional banker for over 25years and before joining HDFC Bank in 1994 was heading Citibank’s operations inMalaysia.The Bank’s Board of Directors is composed of eminent individuals with a wealth ofexperience in public policy, administration, industry and commercial banking. Seniorexecutives representing HDFC are also on the Board.Senior banking professionals with substantial experience in India and abroad headvarious businesses and functions and report to the Managing Director. Given theprofessional expertise of the management team and the overall focus on recruiting andretaining the best talent in the industry, the bank believes that its people are a significantcompetitive strength.TECHNOLOGYHDFC Bank operates in a highly automated environment in terms of information technologyand communication systems. All the bank’s branches have online connectivity, whichenables the bank to offer speedy funds transfer facilities to its customers. Multi-branches

access is also provided to retail customers through the branch network and AutomatedTeller Machines (ATMs).The bank has made substantial efforts and investments in acquiring the besttechnology available internationally, to build the infrastructure for a world class bank. TheBank’s business is supported by scalable and robust systems which ensure that our clientsalways get the finest services we offer.The Bank has prioritised its engagement in technology and the internet as one of itskey goals and has already made significant progress in web-enabling its core businesses. Ineach of its businesses, the Bank has succeeded in leveraging its market position, expertiseand technology to create a competitive advantage and build market share.

SERVICES PROVIDEDHDFC Bank offers a wide range of commercial and transactional banking services andtreasury products to wholesale and retail customers.The bank has three key business segments:

1. Wholesale Banking ServicesThe bank’s target market ranges from large, blue-chip manufacturing companies in theIndian corporate to small & mid-sized corporate and agri-based businesses. For thesecustomers, the Bank provides a wide range of commercial and transactional bankingservices, including working capital finance, trade services, transactional services, cashmanagement, etc. The bank is also a leading provider of structured solutions, whichcombine cash management services with vendor and distributor finance for facilitatingsuperior supply chain management for its corporate customers. Based on its superiorproduct delivery / service levels and strong customer orientation, the Bank has madesignificant inroads into the banking consortia of a number of leading Indian corporateincluding multinationals, companies from the domestic business houses and prime publicsector companies. It is recognized as a leading provider of cash management and

transactional banking solutions to corporate customers, mutual funds, stock exchangemembers and banks.2. Retail Banking ServicesThe objective of the Retail Bank is to provide its target market customers a full range offinancial products and banking services, giving the customer a one-stop window for allhis/her banking requirements. The products are backed by world-class service anddelivered to the customers through the growing branch network, as well as throughalternative delivery channels like ATMs, phone Banking, Net Banking and Mobile Banking.The HDFC Bank preferred program for high net worth individuals, the HDFC Bankplus and the investment Advisory services programs have been designed keeping in mindneeds of customers who seek distinct financial solutions, information and advice on variousinvestment avenues. The Bank also has a wide array of retail loan products including Auto

Loans, Loans against marketable securities, Personal Loans and Loans for Two-wheelers. Itis also a leading provider of Depository Participant (DP) services for retail customers,providing customers the facility to hold their investments in electronic form.HDFC Bank was the first bank in India to launch an International Debit Card inassociation with VISA (VISA Electron) and issues the MasterCard Maestro debit card aswell. The bank launched its credit card business in late 2001. The Bank is also one of theleading players in the “merchant acquiring” business with over 50,000 point-of-sale (POS)terminals for debit / credit cards acceptance at merchant establishments.3. TreasuryWithin this business, the bank has three main product areas – Foreign Exchange andDerivatives, Local Currency Money Market & Debt Securities, and Equities. With theliberalization of the financial markets in India, corporate need more sophisticated riskmanagement information, advice and product structures. These and fine pricing on varioustreasury products are provided through the bank’s Treasury team. To comply with statutoryreserve requirements, the bank is required to hold 25% of its deposits in government

securities. The Treasury business is responsible managing the returns and market risk onthis investment portfolio.

MEANING AND TYPES OF LOANMEANING OF LOANLoan means a credit facility where the money is disbursed in the beginning, mostly in onestroke, and later on only recoveries in the forms of installments take place in the account.Very often the two words ‘Loans’ and ‘Advance’ are interchangeably used without observingany difference in their meanings. But there exists a fine degree of distinction between thetwo words. Loan means a credit facility where the money is disbursed in the beginning,mostly in one stroke, and later on only recoveries in the forms of installments take place inthe account. In case of ‘Advance’, credit facility is availed of as and when needed andcontinuous debit and credit operations are made in the account, within the prescribed limit.Thus, credit facilities repayable in installments are ‘loans’ and credit facilities like cash credit

and overdrafts where cheque book facility is also given ‘advances’. In case of loan, exceptinitial disbursal, no further debits are allowed barring interest being debited by the bank. Theaccount will have credit entries only by the way of recovery and balance outstanding willgradually decline. But in case of Advance, cheque book remains with the borrower and anynumber of debits and credits are permitted with in the agreed limit. In banking parlance,mostly the deposits are payable on demand including term deposits, which too can bediscounted at any time and as such ‘Advances’ are preferred as compared to ‘Loans’ forsimple reasons that advance can be recalled on demand whilst loan will be repaid only ininstallments over a long period. Although the logic of such preference is practically notvisible since the cash credit accounts are never repaid and only limits are enhanced everyyear while the loans are at least paid back gradually. However, traditionally banks preferfacilities which are payable on demand. Moreover, for granting loans, others specializedagencies like State Financial Corporations have been promoted and they don’t sanctionadvances.

TYPES OF LOANS

Banks grant loans for different periods- short, medium and long, and for different purposes.Broadly, the loans granted by banks are classified as Error! Bookmark not defined.1. Short term loanShort term loans are granted to meet the working capital needs of the borrowers. Theseloans are granted for granted less than a year. These loans are granted against the securityof tangible assets- mainly the movable assets like goods and commodities, share,debentures etc. since April, 1995 reserve Bank of India has made in mandatory for thebanks to grant a portion of bank credit to big customers in the form of loans, which may bethe various maturities. The reserve bank of India has also permitted the banks to roll over

such loans, i.e., to extent loan for another period at the expiry of the tenor of the first loan.2. Medium term loan & long term loanMedium and long term loans are usually called ‘Term Loan’. Medium terms loans aregranted for more than a year and less than three years and long term loans are granted formore than three years and are meant for purchase of capital assets for the establishment ofnew units and for expansion or diversification of an existing unit. Bank usually grants suchloans together with specialized financial institutions like Industrial Finance Corporation ofIndia, Industrial Credit and Investment Corporation of India etc.

3. Bridge loansBridge loans are essentially short term loans which are granted to industrial undertakings tomeet their urgent and essential needs during the period when formalities for availing of theterm loan sanctioned by financial institutions are being fulfilled or necessary steps are beingtaken to raise funds from the capital market. These loans are granted by banks or byfinancial institutions themselves and are automatically repaid out of amount of the term loanor the funds raised in the capital market.4. Composite loan

When a loan is granted both for buying capital assets and for working capital purposes it iscalled a composite loan. Such loans are usually granted to small borrowers, such asartisans, farmers, small industries etc.5. Consumption loanThough normally banks provide loans for productive purposes only, but as an exceptionloans are also granted on a limited scale to meet the medical needs or the educationalexpenses relating the marriages and other social ceremonies etc. of the needy persons.Such loans are called consumption loans.

OBJECTIVES OF STUDY

To study the various complexities involved in the loan the HDFC.To know the various loan provided by the HDFC bank.To know the various requirements fulfilled by customers to get from HDFC bank.To study the various facilities provided by HDFC bank to customers for taking loans.Recommend the valuable suggestion which may increase the faith of new customers.

LOANS PROVIDED BY HDFCHome LoansPersonal loanCar loanTwo wheeler loanCommercial Vehicle loanLoan against securitiesFarm Equity Loans

Construction Equipment loanOffice Equipment loanMedical Equipment loan

Personal loan (over view)

Eligibility Criteria for HDFC Bank Personal LoanAge of Applicant Min-21 years ; Max-60 years.

No. of years in employment 2 years & above

Current Experience 1 year & above

Net Monthly Income Rs. 15,000/- & above (cat-A companies) Rs. 20,000/- & above (non-listed

companies)

Loan Amount offered by HDFC BankMinimum F Funding Rs. 50,000/-

Maximum Funding Rs. 15,00,000/-

Loan Tenure offered by HDFC BankMinimum T Tenure 12 months

Maximum Tenure 60 months

Turn Around Time of HDFC Bank Personal LoanSalary bel Rs. 75,000 working days (48 hours).

Salary abo Rs. 75,000 7 working days

Processing Fee of HDFC Bank Personal LoanSalary ac Account holder 2% of loan amount

Non–sal Salary account holder 2.5% of loan amount

Prepayment Charges of HDFC Bank Personal LoanForeclosur Payment Charges 4% of outstanding principal (Can be foreclosed after 6 months only)

Salary available for making EMI’sUp to Rs. 25,000 p.m 35% of salary is considered

Bet Rs. 25,000 to Rs. 50,000 p.m. 40% of salary is considered

Above Rs. 50,000 p.m 45% - 50% of salary is considered

Documents Required for HDFC Bank Personal Loan

Identity ProofPassport/ driving license/PAN card/ Photo credit card (with embossed Signature and last two months statement)/ banker’s sign verification

Age Proof PAN Card/ Passport/ Driving Licence/ School leaving certificate/ Voter’s card/ BirthCertificate/ LIC policy (only for age Proof).

Address ProofPassport/ Telephone bill (BSNL/MTNL)/ Electricity bill/ Title deed of property/Rental agreement/ Driving license/ Election ID card/ Photo-credit card (with last two month statements)

Income Proof Latest salary slip/current dated salary Certificate with latest form 16

Job Continuity Proof Form 16/relieving letter/appointment Letter (for last two months)

Banking History Bank statements of latest 2 months/ 3 months bank passbook

AUTOLOAN (Car loans) AN OVERVIEWA basket of options available – New cars/Used cars/ Car N cash.Market leader in the auto loans business.Evolved distribution and capacities.HDFC Bank is operational in excess of 550 locations within the country.Widely experienced in the auto loans business across the value chain.Over 425 dedicated resources to handle the Auto loans business.

Loan facilities will be offered at all centers where your branch is operational (subjectto being auto approved locations).Highly process oriented. Great emphasis on customer delight.

FEATURES AND BENEFITS of AUTO LOAN

Choose any car manufactured in India within a certain age.Borrow up to 80% of the value of the car.Flexible repayment option, ranging from 12 to 60 months.Borrow up to 3 times your annual salary (for salaried professionals) and 6 timesyour annual income (for self employed professionals).

Available for almost all car models at attractive interest rates.Repay with easy EMIs.Attractive car loan plans – To Fastrack your loan, just choose the plan that is rightfor you.Additional loan on existing loan – If you are an existing HDFC Bank Auto loancustomer with a clear track record of 12 months or more, then you can get anadditional loan to the extent of your existing loan amount at attractive rate ofinterest.Customer PrivilegesSpecial benefits for HDFC Bank account holders.If you have had preferred Account or a Corporate Salary Account with HDFCBank for more than six months, you can get fast approvals on your loans withminimum documentation.

PRODUCT OFFERINGSNew Car loans: Funding of up to 100% of ex-showroom value Tenors from 12-84 months Competitive pricing Unique credit shield offered along with loan-suraksha Kawatch Insurance of car facilitated by the bankUsed car Loans: Funding of up to 85% of valuation of car Tenors from 12-60 months Competitive pricing Unique credit shield offered along with loan- suraksha Kawatch Insurance of car facilitated by the bankCar N Cash: Refinance on your existing car

APPLICATION PROCESSThe applicant may contact the nearest HDFC Bank branch for thebest deal available on the car of his choice.The applicant need not visit HDFC Bank for documentation. Thedocuments may be handed over the HDFC Bank direct marketing associate/ dealer heis dealing with.If applicant wish to cancel his loan application and the loan has notyet been disbursed, no letter is required. But if the loan has been disbursed, a letter isrequirement requesting for cancellation of the loan.The applicant can apply for another loan and HDFC Bank shallsanction the loan based to verify applicant status, contact the representative who isprocessing his loan application.

DOCUMENTATION REQUIREDSalaried Individual Self-EmployedIndividualPartnership Firm Private/Public Ltd.Co.Application form Application Form Application Form Application FormPhotograph Photograph Photograph ofsigning partnerGuarantor’sPhotograph(for private limitedcompany only)Proof of bankaccount continuityOne proof of income(ITR for the last twoyears)Last two years’income proof(audited account orITRs+CA certifiedfinancials)Last two yearsaudited financialsOne income proof forthe last two years(ITR, Form 16, salaryslip)One proof ofresidence (drivinglicense / voters’identity card / rationcard / passport /utility bills for the last3 months)Partnership deed Certified true copy ofthe MOA & AOAOne proof of identity(driving license /voters’ identity card /Passport / PANcard / photo creditcard/ photo rationcard)

One proof ofresidence (drivinglicense / voters’identity card / rationcard / passport /utility bills for the last3 months)Partners authorityletterBoard resolution(format available onrequest)One proof ofresidence (laminateddriving license /voters’ identity card /ration card / passport/ utility bills for thelast 3 months /company ID limitedcompany orOne proof of officeaddress (Utility bill /lease deed / exciseor sales tax receipt /shops andEstablishment ActRegistration)

Self employed staying in Negative AreaCriteria Credit norms DeviationEligible borrowersegmentSalaried, Self employed individuals age > 30yrs. Sole proprietorships age> 30 yrsNo DeviationAge Salaried > 25 yrs Self Employed > 30 yrs No DeviationVehicle segment .A1, A2, A3, A4 and MUV To meet premium CarNormsMinimum income Salaried – 2 lacs annualOthers – 1.5 lacs annual income forNo DeviationRepayment Mandatory for HRP2Mandatory for A3, A4 and MUV segmentSelf Employed Staying in Negative AreaCriteria Banking and ownership proof Deviation

VehicleSegmentA1 and A2Banking 6 months banking with AQB of 1.5 time ofthe EMIL1- for HDFC Bank a/c withvintage > 3 months AQB of 1timeLTV 65% for 36 month No deviationMaximum loanamt.3 lacs for A1 and A2 No deviationProfile HRP 2 not to be funded

Others No IncomeCriteria Banking & ownership proof Only Banking DeviationVehicle Segment A1,A2 and A3 A1,A2 and A3 No deviationBanking 6 months banking with 6 months L1- For HDFC Bank a/cAQB of 1.5 time of the EMI banking withAQB of 2 timesof the EMIwith vintage > 3 monthsAQB of 1 time and 1.5time respectivelyLTV 75% for 36 month65% for 37 to 60 mts70% for 36month60% for 37 to 60monthsNo deviationMaximum loanamt.3 lacs for A1 and A24 lacs for A33 lacs for A1and A24 lacs for A3No deviationSelf Employed Individuals Age < 30 yrsCriteria Credit norms DeviationEligible BorrowersegmentSelf employed Individuals, soleproprietorships with age less than 30

yrs but greater than 21 yrs.Not to be an RCO – rented residence.No DeviationVehicle Segment A1,A2,A3,A4 and MUV L4- for any other vehicleMinimum Income 1.5 lacs annual income No deviationRepayment VehicleSegmentA3 A4 & MUV No deviationMin Repayment 3 Lacs 5 LacsLoan Eligibility Others 4 times of the annual income L1 – up to 10 & higher withrepayment trackLTV Without repayment5% lower LTV as defined in LTVmatrix10 % lower for tier 3 category ofvehicle with repaymentNormal LTV +5%L2 – up to 5% higherL3 – up to 10% higherCPV GuidelinesContact point verification (CPV) includes:Physical verification of residence and officeTele verification at residence and officeDirectory CheckPlease Note: For co-applicant also all the above has to be doneStatus of the CPV will be based on all the factors mentioned below:The address as given in the application form exitsThe applicant / Co – applicants stay / work at the given addressThe applicant is normally contact able at the given segment of the carThe standard of living is appropriate with the segment of the carThe third party confirmation are positive & there is no negative remarkDirectory check confirming the address and the name of the customer includingrelatives.The vehicle should be for self/family/company use.Please Note: Observations on Negative Area & HRP ½ would not result in the CPVbeing termed as negative. In all such cases, the agency to highlight the observations –but mark the CPV based on the above criteria only. For negative area cases, ashighlighted by CPV agency, the policy for negative area will be applicable. The CPVagency should also provide information on the usage of the asset (Personal orcommercial) and if the asset is for commercial use, the fleet size (no. of vehicles) of theoperator should also be provided.CPV Deviation MatrixIn cases where the CPV is marked as negative the below mentioned deviation grid will be

applicableCondition Deviation LevelThe address as given in the application fromdoes not existNo deviationThe correct address to be obtained at CPVconducted at the right address.The applicant/Co-applicant do not stay/workat the given addressNo deviationThe correct address to be obtained at CPVconducted at the right address.The applicants normally not contactable atthe given contact addressNo deviationThe correct address to be obtained at CPVconducted at the right address.No of times CPV fired on new addressesexcluding the application addressExceeds 2Exceeds 4L2L3The standard of living is not appropriate withthe segment of the carL2The third party confirmation are not positiveor there may be some negative remarksL2Third party usage L3As per application form vehicle for personaluse but as per CPV vehicle for commercialuseL3Any other deviations L3CPV WaiversThe CPV can be waived for cases meeting norms as mentioned below:Criteria Residence CPV Business CPV TVRInternal customer – F4 perapproved/pre qualified/Preferred/ ImperiaWaived Waived RequiredInternal liability customer – Required Waived Requiredsalaried with at least one salarycredit with the company nameInternal liability customer –

othersMin six months vintageWaived Required RequiredInternal asset customer Waived Waived RequiredCIBIL matches Waived Waived RequiredFor all liability customers There should not be any instances of cheque book returned (or) statementreturned instance of address not confirmed. The address in the bank statement / Finware should match with any one theaddress – residence / office in the application form.

For internal asset customer following conditions should be met for CPVwaivers if the loan is live Account should be live at the time of new loan origination. The address in Finnone should match with any one of the address – residence/officein the application form Closed loan – Loan should not have closed more than 6 months before theapplication date.

For CIBIL Matches The match should be a good match of an installment loan with at least a 12 monthvintage and loan amount to be >=50% of the applied loan amount, Any one of address – residence/office in the application form should match one of thelast two addresses in the CIBIL report.Contact abilitySegment Residence/ officestabilityJob/BusinessstabilityContractibilityF4 Hotkey NA NA Landline /WLL at residenceis required Or postpaid mobile in thename of applicant.Landline /WLL of office isrequired.Repayment 2 yrs at currentresidence.Not Applicable:

If residence isSalaried- 2 yrsin current jobNot applicable –If working forLandline / WLL atresidence is requiredor post paid mobile inthe name of applicantowned or for selfemployed office isowned orSalaried workingfor super Cat A,Cat A & Cat Bcompanies ORRepayment of atleast 24 monthsuper Cat A, CatA & Cat BcompaniesSelf employed –2 yrs in businessNot applicable –if office /businesspremises isownedLandline / WLL atoffice is requiredCorporates NA Self Employed –2 yrs in businessOr co-applicantto meet thenormsMandatorylandline atoffice (Max. 8digit telephonenumber)MandatoryResidencyNumber /Mobilenumber of coapplicant /

partner /directorSalaried – BigcorporatesSalaried – 1 yearin current job andtotal workexperience of 3yrs. ORPost graduatehaving 1 year ofwork experienceNA Landline atoffice ANDMobile No ORResidencenumber ofapplicantPremium Cars For self employed– 2 yrs at currentresidence AND tobe owned(Parents name isacceptable)For salaried – 5years in currentresi OR Companyleased acco(super Cat-A/CatA) OR to beownedSalaried – 1year in currentjob and totalwork experienceof 10 yrs.OrPost graduateworking forsuper Cat A, CatA and Cat Bcompanieshaving 5 yearsof workexperienceSelf Employed –

Landlinemandatory atoffice &residenceMobile phoneof applicantmandatory

5 yrs in businessExample of Higher LTV for Higher income without DeviationLTV for salaried working for super cat A companyVehicle Swift DzireLone amount 6 lacsCustomer 1 Customer 2 Customer 3 Customer 4Income 7 lacs 5 lacs 4 lacs 3 lacsLoan amount/income ratio0.86 1.20 1.50 2.00Eligible for LTV(withoutdeviations)Upto 100% Upto 10%higherUpto 5% higher Upto 5% higherLTV For self employed going for premium carVehicle Honda accordLone amount 17 lacsCustomer 1 Customer 2 Customer 3 Customer 4Income 12 lacs 10 lacs 8 lacs 5lacsLoan amount/income ratio1.42 1.70 2.13 3.40Eligible for LTV(withoutdeviations)Upto 15%higherUpto 10%higherUpto 10 %higherUpto 5% higherLTV for a salaried customer in other segmentVehicle Honda CityLone amount 7 lacsCustomer 1 Customer 2 Customer 3 Customer 4

Income 4 lacs 3 lacs 2.5 lacs 1.5 lacsLoan amount/income ratio1.75 2.33 2.80 4.67Eligible for LTV(withoutdeviations)Upto 5% higher Normal Normal Not eligible for7 lacsRepaymentDefinitionThe repayment should be from the Banks, NBFC or Financial institution, whoshare customer database with CIBIL.Valid repayment proof – CIBIL, Statement of account, 12 months Bank EMI debitMinimum 12 months clean repayment track or track of at least 50% competedtenor whichever is less requiredLoan should not have been completed before 18 months prior to the date ofapplicationThere should not be more than 2 bounces in every completed 12 monthspaymentThere should not be more than 1 bounces in the last 12 months of the loan tenorIt should not have been more than once 30 days past due and should be current iflive.Repayment – PolicyCriteria Credit norms DeviationVehicle segment A1, A2, A3 and MUV segment vehicle as defined inLTV matrixNo DeviationLoan Eligibility Please Note: Eligible loan amount will be the lower ofEMI multiplier and loan amt. multiplier for appliedtenor <= 36 months and higher if applied tenor is > 36monthL1 – for Funding> Loan eligibilityup to 5%L2 – for funding> Loan eligibilityup to 10%Product EMI multiplier Loan amt.MultiplierAL 50 times 1.5 timesPL 50 times 1.5 timesCV 25 times 0.5 timesLTV Repayment(Vintage)

Int. Repayment Ext.Repayment12-24 months Normal Normal25-36 months +10% +5% No Deviation>36months +15% +10%

Companies, Firms, HUF’s and TrustDefinition:The eligible borrower segment should have cash profit in the current year and earlier lossesshould not be more the capital (Subscribed share capital + reserves and surplus)Criteria Credit norms DeviationMinimumincome1.5 lacs income required L1 – up to10% lowerL2 – up to20% lowerLoanEligibility &LTVcriteria Income MultiplierOne car 4 3-3.99 2-2.99 <2MultipleCar6-5 4-4.99 2-3.99 <LTV Normal +5% +10% 100%VehiclecategoryALL ALL Only fortier 1 & 2Only fortier 1 & 2LTV As given above OR10 % higher than the normal LTV with Repayment satisfying theL3 – up to5 % higher30Auto Loansrepayment conditions (earlier Loan Amt to be at least 50% ofproposed loan amt)Please Note: For Multiple cars – POS of all EMI obligations – only installment loans to beconsidered (Banks, NBFC or any other – as evidenced by CIBIL / Bank statement) including

the current borrowing to be less than 6 times of the annual income.Others- With income (for 800 & Omni)Criteria Credit norms DeviationEligible borrower segment Salaried, self employed individualsage > 30 yrs,Sole proprietorships age > 30 yrsNo DeviationCategory For Maruti 800 and omniMin Income Salaried – 1.5Others – 1.0Banking 3 months banking with min. AQB of 1times of EMILTV +5% on repayment of 50% of loanamt. ORBanking with AQB > 1.5 time EMIOthers- With income below normsCriteria Credit norms DeviationEligible borrower segment All Eligible borrowers as definedunder common criteriaNo DeviationIncome proof Income proof required as defined –with the minimum income beingFor salaried – 1 lacFor other segment – Rs. 0.60 lacNo multipliers applicableNo DeviationVehicle segment Salaried – 1.5Others – 1.0No DeviationBanking 3 months banking with min. AQB of 1times of EMINo DeviationLTV +80 % for 36 months75% up to 60 monthsMax loan amount 4No DeviationOthers Contractibility and stability norms asdefined aboveNo Deviation

CONECT POINT VERIFICATION POLICYCPV GridFor all cases, the verifications to be done are:Residence verificationOffice/Business VerificationTele verification – ResidenceTele verification – OfficeDirectory checkFor cases with co-applicants, the verification is to be done as detailed above for the coapplicantalso.

CPV WolversFor the cases meeting the following norms, the verifications can be waived:Residence CPV Business CPV TVRInternal customer – F4preapproved / prequalified /preferred/ imperiaWaived Waived RequiredInternal liability customer –salaried with at least one salaryRequired Waived Requiredcredit with the company nameInternal liability customer –others Min Six months vintageWaived Required RequiredInternal asset customer Waived Waived RequiredCIBIL Matches Waived Waived RequiredFor liability customer:There should not be any instances of cheque book returned (or_ statement returnedinstance of address not confirmed.)The address in the bank statement / Finware should match with any one the addressresidence/office in the application formFor internal asset customer following conditions should be met for CPV waivers ifthe loan is live:Account should be live at the time of new loan origination.The address should be match with any one of the address – residence/office inthe application form.Closed loan – Loan should not have closed more than 6 months before theapplication date.For CIBIL Matches:

The match should be a good match of an installment loan with at least a 12month vintage and loan amount to be >= 50% of the applied loan amount.Any loan of address – residence/office in the application form should matchone of the last two addresses in the CIBIL report.For all cases where CPV has been waived, and TVR is negative, both CPV’s to be done &the same would be treated as per the normal CPV policy.CPV CriteriaThe CPV would be considered positive only if (all conditions to be met)The address as given in the application form existsThe applicant/co-applicant stay/work at the given addressThe applicant is normally contactable at the given contact addressThe standard of living is appropriate with the segment of the carThe third party confirmations are positive & there is no negative remarkDirectory check confirming the address and the name of the customer includingrelatives.The vehicle should be for self/family/company use.Observation on Negative Area & HRP ½ would not result in the CPV being termed asnegative in all such cases, the agency to highlight the observations – but mark the CPVbased on the above criteria only. For negative area cases, as highlighted by CPV agency,the policy for negative area will be applicable. The CPV agency should also provideinformation on the usage of the asset (personal or commercial) and if the assets forcommercial use, the fleet size (no. of vehicles) of the operator should also be provided.In cases where the CPV is marked as negative basis failure on one of the above criteria, thedeviation grid for the same would be as detailed below:In cases where the CPV is marked as negative the below mentioned deviation grid will beapplicableCondition Deviation LevelThe address as given in the application fromdoes not existNo deviationThe correct address to be obtained at CPVconducted at the right address.The applicant/Co-applicant do not stay/workat the given addressNo deviationThe correct address to be obtained at CPVconducted at the right address.The applicants normally not contactable at

the given contact addressNo deviationThe correct address to be obtained at CPVconducted at the right address.No of times CPV fired on new addressesexcluding the application addressExceeds 2Exceeds 4L2L3The standard of living is not appropriate withthe segment of the carL2The third party confirmation are not positiveor there may be some negative remarksL2Third party usage L3As per application form vehicle for personaluse but as per CPV vehicle for commercialuseL3Any other deviations L3Within these broad guidelines, the CPV policy would be rolled out for each region – and anychanges to that would be authorized by the regional credit head. Any change to aboveparameters would require PRH approval.CONTANCT POINT VERIFICATIONCPV requirement:ResidenceCPVBusinessCPVTelephoneCPVIndividual SelfEmployedYes Yes YesIndividual salaried Yes Yes YesPartnership Yes Yes YesPrivate limited Yes Yes YesPublic limited-DeemedNo Yes YesPublic Ltd co-listed No No YesCat A list of PL product

1. Telephone verification:PP numbers are not accepted.Post paid mobile are acceptable subject of landline/WLL at residence/officeApplicant must have Landline/WLL at either residence (or) office to quality fora loan.2. Residence CPVs:For private limited companies, residence CPV of the director being taken asguarantor would be required. In a public Limited co., residence CPV of a directoris not required but when the director is taken as a guarantor the same will berequired.For partnership, residence CPV of the authorized partner would be required3. If the CPV has been done by a Credit Manager/CPA manager, then a CPV sheetneeds to be duly filled by the concerned officer. Such a sheet can be taken inaddition to the regular CPV but not in lieu of the same. The same would need tobe reviewed.4. Reference checks through TVR5. In the case of salaried customers telephonic CPV at the office address has beenmade mandatory or HR confirmation mail marked to Credit / Ops in the originatingmail. Since in the case of salaried business CPV cannot be conducted, such atelephonic CPV will ad act a good surrogate to determine the existence/continuityof the employment of the customer PL cat A list to be attached.OBJECTIVEThe objective of CPV policy is to serve as a guide and reference point for Auto CPVagencies, CP’V stands for CONTACT POINT VERIFICATION.PurposeCPV is a very critical tool and only physical touch point in the transaction to determinewhether to lend to the applicant, based on certain sub criteria as mentioned below:From credit perspectiveEvaluate car capabilityAssess the standard of living of the applicantJob / business profileResidence stabilityLevel of business activityThird party validation through Neighbor checkCollect negative market information, if any, availableRe-confirm certain details of loan applicationCollections Perspective:Contact ability of the customerAccess and verification of the Asset/CarCPV agency is expected to deliver quality service while collecting information on the above.Service delivery parameters essentially cover the following aspects:Adherence to product and process guidelines:The following pages will detail various processes that are to be followed. The agency

proprietor/ supervisor will be responsible for management of day to day activities includingtelecalling, field activities, data collation, data entry, report accuracy and generaladministration.Scope of policy:Physical verification at residencePhysical verification at officeCD ROM/BSNL Check at the given telephone nos .Tele verification at the given nos .CPV GuidelinesResidence VerificationObjective Positive criteria Negative criteria (Any one)Address confirmation Identify AddressReach physicallyOGLDoes not ExistNot reachable / DifficultSlum areaSuspicious case / stage managedDoes not reside / resident on atemporary basisContact ability(Current & Future) Met applicant OR Met family MemberOR Neighbor confirmedwith details Under construction –stays there Met servant Met watchman Entry not allowed inquarters detailsconfirmed overintercom Permanent / parents/in laws residence Family staysapplicantcomes only No such person Not a residence Door locked- unable toconfirm even from third party Guest house Shifted

Relative address Contact address Under construction – does notstay there PG Acc. / lodge Bachelor Accommodation Met a person who refuses toreveal identityon weekendsResidence stabilitynorms Stability norms metelse, Salaried with CAT A company Owned residenceConfirmation of Application Positive Response toCPV Family member / Applicantsays not applied Applicant not interested forother reasonsProfile SOL Average &Above Profile mismatch Politically active area Slum area Community Dominated AreaReputation Positive Third partyCheck Active Politician Negative remarks from familymembers Met recovery AgencyExecutive of other FinancialInstitutions In neg. base of AgencyBusiness VerificationObjective Positive criteria Negative criteria (Any one)Address confirmation Identify Address Reach physically Different NameBoard/ No NameBoard, but applicant

met and TPCconfirmation OGL Does not Exist Not reachable / Difficult Unable to TraceContact ability(Current & Future) Met applicant OR Colleague confirmedwith details Receptionist in Big /Busy office Confirms Resident Office Met Security (cm’sname reflects onownership Nameplate) Entry Not allowedeven into receptionDetails confirmed In Night Shift only C&F agency premises Posted on Site /Location (exceptconstruction cos) Receptionist in small No such person Not a office Door locked Does not work here Transferred / Resigned Office dues not functionregularly Dealer premises Always on Field/tourfirms confirmsHO/Branch AddressConfirmation ofApplication Positive Response toCPV Not interested due torepeated verification Colleague Refused to ProvideDetails

Profile Profile mismatch to be flaggedfor poor SOL. segment A2(segment B) No / Low Biz activity No office infrastructure Designation differssubstantially No employees found Trader / Manufacturer – Nostocks Found Office Cum Residence – withNo clearly defined Biz space(exclusive CA, Doctors,Advocates) Office appearance poor Office Area < 150 sq. ft Shared Biz premises NTP Biz – Wine shops etc.Reputation Colleague confirms app alreadyowes money to lot of people Political flags/photos sightedPolitical contacts

Note: HRP/ NTS Profiles Negative AreaFor above cases the CPV would not be flagged as negative but the report should carry it asBOLD qualitative comment.Residence Telephone VerificationObjective Positive criteria Negative criteria (Any one)Address confirmation Phone callconnected to theNumber SDCA No (95,91calls) Mobile / Will no RNR Does not Exist Perpetually Engaged STD Call PP No Service Temporarily Withdrawn Disconnected

Number ChangedContact ability(Current & Future) Spoke to Applicant Family Member Spoke to servant Permanent /Parent / In LawsResidence Wrong No Not a Residence Unable to Confirm No such person Shifted Relative Address Guest House Bachelor Accommodation PG Accommodation Person who refuses to revealidentityConfirmation ofApplication Positive Responseto CPV Not interested dueto repeatedverification Family member / Applicant saysnot applied Applicant says not interested Family Member Refused toprovide Details Details do no tallyReputation Family member saying don’t Give Indicates applicant is beingfollowed up by collectionagencies of other banksResidence Telephone VerificationObjective Positive criteria Negative criteria (Any one)Address confirmation Phone call connectedto the Number SDCA No (95,91calls) Mobile / Will no RNR Does not Exist

Perpetually Engaged STD Call PP No Shared No Service Temporarily Withdrawn Disconnected Number ChangedContact ability(Current & Future) Spoke to ApplicantOR Colleague Spoke to Receptionist OR Security OR a person whorefuses to reveal Wrong No Not an office Unable to Confirm Required Extension / Dept toconnect No such person Shifted Friends / Relatives Noidentity Permanent / parents /In Laws Residence Dealer NoConfirmation ofApplication Positive Response toCPV Not interested due torepeated verification Applicant says not interested /Applied Details do not tally Colleague Refused to ProvideDetailsProfile NTP Biz / SalariedReputation Colleague says don’t Give CD Rom Check mandatory and status to be updated in TVR Positive / NegativeCD ROM / BSNL checkName & AddressmatchesNamematchesOnly

addressmatchesName &address doesnot matchNot found /other TELCOSPositive Negative(Positive ifownership proofprovided of thesame address)Positive Negative NeutralOnly address matches required proof of relationshipThe status as per matrix be updated in TVR in LOSFor negative flagged cases proper reasoning to be documented in CAM if overriddenCPV WaiverResidenceCPVBusinessCPVTVRInternal liability customer - salaried Waived Waived RequiredInternal liability customer - self employed Waived Required RequiredInternal asset customer – salaried Waived Waived RequiredInternal asset customer – self employed Waived Waived RequiredInternal customer asset and liability- firms& companiesWaived Required RequiredCIBIL matches – salaried Waived Required RequiredCIBIL matches – self employed Waived Required RequiredCIBIL matches – firms & companies Waived Required RequiredConditions1. For internal liability customer minimum account vintage should be 3 months andthere should be minimum six transactions in last 3 months excluding interest and anyother charges debited or credit in the account. There should not be any instances of cheque book returned (or) statementreturned instance of address not confirmed. The address in the bank statement / Finware should match with the address inthe application form2. Internal asset customer following conditions should be met for CPV waivers. Account should be live at the time of new loan origination. The address in finnone should match with the address in the application form3. For CIBIL Matches:

The address in the CIBIL report should match with the application form The proof of the same should be in the file. Should not be a bad matchInterpretation of CPV: Base don above criteria on each of the parameters over all status of the CPVreport has to be marked positive/Neutral/NegativePositive: Address confirmed and reachable Customer to be Residing/Employed/Business exists at the given address andshould not be figuring in the negative criteria as per the grid Third party confirmation of the customer details Residence/Business/EmploymentNegative: Customer and Address doesn’t exists (or) does not live there Negative feedback on profile & reputation parameters in the gridBelow are the minimum credit parameters which are required at the time of Login.A) Common Credit parameters Residence ownership proof required in the name of applicant or blood relative inresi cum office cases. In NRI and foreign national cases, resident Indian having owned residence inIndia must stand as co applicant. Net worth of Pvt. Ltd. Company/Ltd Company must be positive. (Subscribed sharecapital + reserves – Amount not written standing in asset side of balance sheet.)B) Program wise Credit parameters1. F4 Hockey program – Pre approved and pre qualified Landline/WLL at office is compulsory required in addition to Landline/WLL/postpaid mobile the name of applicant at residence. Firm/company should stand as co applicant if partner/director wants loanbased on income of business entities and vice versa. Not to be funded to Trust and HUF, hence file not to be login.2. Repayment Track program Minimum 12 months repayment track or track of at least 50% completed tenorwhichever is less required. Loan should not have been completed before 18 months prior to the date ofapplication. A4 segment vehicles not eligible under repayment track program, hence nofile to be logged in. Self employed individuals having residence in negative area, HRP 1 and HRP2 not to be funded under the program, hence no file to be logged in. Only one vehicle can be funded under this program but can fund maximum 2vehicles to CV customer. Minimum repayment of Rs. 1 Lacs for A1 and A2 segment car, Rs. 3 lacs forA3 segment car and Rs. 5 Lacs for MUV required at the time of login. Not to be funded to Trust and HUF, hence files not to be logged in.

3. Companies, Firms, HUF’s and Trust Customer should have cash profit in the current year and earlier losses should notbe more than the capital (subscribed share capital + Reserves and surplus). One of director/partner/karta/trustee should be co applicant. Co applicant not required for companies having turnover > 100 crores OR Profit >1 Crore. Landline at office (8 digits) compulsory required along with Landline/Mobile/WLLat residence of partner/director/karta/trustee. HUF cannot be a partner in partnership firm and hence files not to be logged in.4. Salaried-Big corporate Applicant should be employed with super CAT A/ CAT A/ CAT B/ CSA holder withHDFC bank with 6 consecutive salary credits are eligible. If applicant is not working at above companies but if blood relatives (parents,spouse or children) are employed with above companies and stands as coapplicant then can be logged in with income of co applicant.5. Premium cars Minimum annual income should be 7.5 lac for salaried and Rs 5 Lac for others Repayment of ½ of proposed loan or salaried having credit card limit of 3 lacdocumentary proof should be there. Bank statement should be provided at the time of login.

6. Deep geography Vehicle segment under this category should be A1, A2, A3, A4 and MUV no othervehicle should be logged in. Land line and resident and office mandatory Resident ownership proof mandatory Banking with 3 Months statement at the time of login7. Taxi Segment Salaried employees file under this program should not be logged in. No of RC should be there as per the policy norms To calculate the DSCR and D/E ration financials are must for logged in thefiles. Repayments should be there.8. NID (other than HRP/NTS) Only eligible models A1, A2 and A3 should come for logged in with cap on MaxLoan amount and LTV should be adhere. 6 month bank statement should be provided at the time of logged in.9. HRP1 And HRP Appl. Should come for eligible vehicle segment A1,A2,A3,A4 and MUV Repayment mandatory for HRP 2 Min age norms of 25 yrs for salaried and>30 yrs for self employed should

adhere.10.Self employed>30 yrs Repayment for A3 and MUV is mandatory No rented resi cum office should be logged in.

OFF MARKETING CHANNELSOFF MARKETING CHANNELS are basically involve into their primary business orprofession like Chartered accountants, stock Brokers and as an extra source of income theywork as the channel partners for different companies or financial institutes by selling theirdifferent products. E.g. Loan investment etc. to their own existing customer base.This leads to a two way benefit both to the channels as well as the companies theyare associated to. For these channels it is an extra source of income for which they need tosearch customers as they are existing customers for the financial institutes. Resulting itleads to a low cost business as they need not to pay high commission to these channelsand most importantly it gives a non delinquent customer base to these institutes.

Identified Off-Marketing channels till date:-1. KARVY2. ANAND RATHI SECURITIES3. HDFC LTD.4. BAJAJ CAPITAL5. CHARTERED ACCOUNTANTSCHARTERED ACCOUNTANTS Benefits cost efficient Business gained is at low cost as compared to marketing channels. Commission given to marketing channels is near about 4-5% whereas in thecase of off-marketing channels it is about 2%. More clientage High profile clientage Good business

ANALYSIS OF SURVEY- UNIVERSE (MAHARASHTRA) – 5089- SAMPLE TAKEN (MAHARASHTRA) -294- BIZ SOURCE (MAHARASHTRA) 88MAYTGT V/S ACHIVEMENTOPENLocation Business volume Total DSA DDSA HBL CAMUMBAI 800 596 238.06 357.94600 543.71 344.15 199.56200 25.9 25.9 0400 357.15 0 0 357.15 0NASIK 100 86.18 34.94 19.1 32.14 0AHMEDNAGAR 300 290.82 176.05 43.82 70.95 7.75NAGPUR 300 293.12 199.78 67.44 25.9 4.8AURANGABAD 225 185.67 131.54 0 54.13 13.77PUNE 500 459.38 3852.21 19.87 57.3 16.31VARDHA 525 531.54 305 119.25 107.29 8.1AAKOLA 150 123.21 49.62 0 73.59 0MAHARASHTRA 4100 3492.68 1887.25 826.98 778.45 50.73JUNETGT V/S ACHIVEMENTOPENLocation Business volume Total DSA DDSA HBL CAMUMBAI 600 513.05 258.89 254.16600 538.1 348.19 189.91

65 0 0 27.96285 339.2 339.2AAKOLA 80 103.51 23.91 2 77.6 0AURANGABAD 225 238.54 91.92 96.04 50.58 7.05NASIK 250 317.71 152.48 117.64 47.59 1.8 VARDHA225 156.28 98.92 3.04 54.32 18.99PUNE 400 360.31 251.77 33.81 74.73 8.25NAGPUR 450 441.56 204.97 155.43 81.16 15BHANDARA 120 103.34 41.45 0 61.89 7.23 3300 3111.6 1472.5 852.03 787.07 86.28

CONCLUSIONAs the result of the survey, a positive feedback was observed. The CA’s are excited bythe new avenues of the income. According to them it gave them an effortless extrasource of income on one side and also helps them to strengthen their relationship withexisting customers.The customers are also benefited with this venture as previously they had to dealwith the dealers but now they can avail the products and services with the help of thetype between the bank and the channel. Moreover this also gives an additional customerbase to these channels as they get references from their existing customers who availthese services.CA’s are happy to be a channel of the bank. They showed excitement andsatisfaction towards the work process and the services of HDFC. In total to sum up it canbe said that this new channel policy seems to be beneficial and fruitful for all the threeparties i.e. company, channel and customers.

SWOT ANALYSISSTRENGTHS Low in cost Quality business High profile clientsWEAKNESS CA’s generally tend to be busy, so approaching them is difficult. Gaining attention towards the proposal becomes difficultOPPURTUNITY Anand Rathi securities Karvy HDFC ltd. Bajaj capitalTHREAT Delinquency control Collateral on records.

SUGGESTIONS Loans should be provided very easily. There should be less formality for taking loan. Terms and conditions should be easily understandable.

Loan should be provided as soon as possible. Interest rate should be less as compare to other banks. The customers should be comfortable while taking loans as compared other banks.

BIBLIOGRAPHYBy the help of ManualsHDFC Bank report 2011 and internetBy the help of Other SourcesBy the Heads & the consultant of HDFC bankBy Personal SurveysBy the helps of Websiteswww.HDFCBank.comwww.google.com