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[TYPE THE COMPANY NAME]
PROJECT REPORT 0N
SCOPE OF REFINANCE
AND NON-MAHINDRA
BUSINESS AT VARANASI
SUBMITTED TO :- SUBMITTED BY:-
SONALI DIXIT MOHIT NARAYAN SINGHM.B.A.-3rd SEMESTER
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[Type the abstract of the document here. The abstract is typically a short summary of the contents of
the document. Type the abstract of the document here. The abstract is typically a short summary of the
contents of the document.]
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DECLARATION
I am thankful to Mr. Manoj Mishra (Territory Manager)
of Mahindra and Mahindra financial services limited
Varanasi branch considering me for such valuable
project. This project is on the topic scope of Refinance
and Non Mahindra business at Varanasi.
I Mohit Narayan Singh of M.B.A. 3rd semester student ofRadha Govind Engineering College Meerut, U.P. hereby
declare that all information fact and figure produced in
this report based on own experience and study during
my internship over analysis of Mahindra Finance.
Mohit Narayan Singh
M.B.A.
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ACKNOWLEDGEMENT
Behind every successful venture there is some hand.I pay my
all regards to those who are directly or indirectly with me for
encouragement and because of there immense help and I could
complete my project successfully.
In my prior list, I would like to express my profound sense of
gratitude to the authorities of Mahindra and Mahindra
Financial Services limited, especially Mr. Manoj Mishra
(Territory Manager), Mr. Rachit Chaturvedi (Branch Manager
Varanasi), Mr. Trivesh Tripathi (Assistant Manager Varanasi)
for providing me the platform and tracks for the purpose and
under whose guidance I was able to complete my project and
got the help for the same at each and every step.
Last but not the least my special thanks to employees ofMahindra and Mahindra Financial Services limited, who helped
me towards completion of this project.
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PREFACE
Any kind of learning is incomplete till it is practically applied in
the concerned field. Only then does a person understand and
get hold of even the minutest details of what He/she has learnt
in their stay at the institute doing his or her M.B.A..So to
practically applied what I had gained in the past one year in the
M.B.A. program, I underwent summer training at Mahindra
and Mahindra Financial Services Limited, Varanasi. It has been a
wonderful learning experience, which has given me an insightinto management of modern business which requires an
appreciation of multi disciplinary concept and in depth
knowledge of specific analytical tools, geared to the solution of
real life problems. No doubt every real situation is unique but a
set of theoretical tools of knowledge, itself based on empirical
foundation can help in developing the mechanism for handlingsuch situation. So the M.B.A. curriculum has been desired to
provide to the future managers ample practical exposure to
the business world. The summer training is essential for the
fulfillment of M.B.A. curriculum it provides an opportunities to
the student to understand the industry with special emphasis
on the development skills analyzing interpreting practicalproblems through application of management.
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CONTENT
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INTRODUCTION
Practical knowledge is an important suffix to theoretical
knowledge. One cannot merely depend on theoretical
the knowledge. Classroom lecture makes the
fundamental concept of management clear. They also
facilitate the learning of practical things. However
classroom lectures must be correlated with the practical
training situations. It is in the sense that practical trainingin a company has a significant role to play in the subject
of business management. Market research is indeed an
ancient art, it has been practiced in one form of the
other since the day of Adam and Eve. Its emergence is of
relatively recent origin for success of any business and
within this relatively short period it has joined and carry a
great deal of importance.
Management in India is heading towards a better
profession as compared to other professions. The
demand for professional managers is increasing day by
day. To achieve profession competence manager ought
to be fully occupied with theory and practical exposure
of management. A comprehensive study of the principles
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will increase their decision making ability and sharpens
their tools for this purpose.
As an essential part of our course, I got the privilege totraining in Mahindra and Mahindra Financial Services
Limited, the work has carried over a span of 45 days.
My job profile includes generating business in Varanasi
from three dealer points namely Maruti AGR, Suyash
Tata Motors where my work is to aware customer aboutMahindra Finance for providing them loans with fast
service and easy documentation. We provide loan on flat
rate with minimum low rate of interest as much as
possible. We often focus on rural people and semi urban
people who may not be able to fulfill the criteria of
documentation needed with the nationalized bank.
Nationalized and private banks provide loans on reducing
balance for a tenure of more than five years and in which
they are unable to tell customer about how much
interest they are charging on them but we at Mahindra
Finance assures customer about how much interest wecharge on them for a maximum tenure of four years with
a fixed equated monthly installments i.e. E.M.I..We at
Mahindra Finance fixes a loan tenure for four years so
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that the customer should free himself from the burden of
loan as soon as possible and there is also a believe of
when you purchase a car by financing it from financial
institutions for a particular period of time say five to six
years that means you are paying the loan for an old car
as the value of newly car purchased by the customer will
be assessed by him after four to five years that means
still paying loans for an old car which will be ready for
resell second hand in market.
My work is also to look for the Refinance segment at
dealer point like Maruti True Value, Tata Assured where
Mahindra also finance on a purchase of second hand cars
from dealer point. The amount of funding depends upon
how much old the assest is and funding for a maximumperiod of not more than four years. In the process of
refinance we provide loan on those amount whichever is
less, on the valuation of vehicle done by these organized
sectors or by the insuarance company.
HISTORY
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The history of Mahindra Finance has been a history of
continuous ascent. Listed below are the important eventsand milestones in the story of Mahindra Finance.
We were incorporated on January 1, 1991 as Maxi Motors
Financial Services Limited and received certificate of
commencement of business on February 19, 1991. Our
name was changed to Mahindra & Mahindra Financial
Services Limited on November 3, 1992. We are registeredwith the Reserve Bank of India as an NBFC. The
Company is having a valid Certificate of Registration No.
13.00996 issued by the Reserve Bank of India under
section 45-IA of the Reserve Bank of India Act, 1934
classifying it as an Asset Finance Company Deposit
Taking.
Our Milestones:
1993
Commenced financing of Mahindra and MahindraUtility Vehicles.
1995
Opened our first branch outside Mumbai, at Jaipur.
1996
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Commenced financing M&M dealers for purchase oftractors.
1998 Launched a pilot project for retail tractor financing.
1999
Commenced tractor retail financing in rural and semi-urban areas
2001
Total Assets crossed the 10 billion mark.
2002
Commenced financing of non-Mahindra & Mahindra
vehicles. Received Tier II debt from International Finance
Corporation.
Made our first securitisation transaction of Rs438.8Million.
2004
Opened a branch in Port Blair. Received a long-term credit rating of AA+/Stable. Commenced Insurance Broking through our
subsidiary MIBL.
Securtisation of tractor assets of Rs.256.6 million.
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Listing of non convertible debentures on BSE on thewholesale
debt market segment.
2005
Tied up with HPCL Made Mahindra InsuranceBrokers Ltd our wholly owned subsidiary.
2006
Issued our IPO. Tied up with Maruti Udyog Limited.
2007
Reach extended to over 400 branches.
2008
Commenced the home loan business through oursubsidiary, Mahindra Rural Housing Finance Limited
(MRHFL)
2009
Recommenced Fixed Deposit programme. Received 12.5% equity participation from NHB for
our Subsidiary Mahindra Rural Housing Finance Ltd.
2010
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Loan against Gold launched in Kerala. Assets Under Management crosses Rs. 10000 crores. PBT crosses Rs. 500 crores. Branch network crosses 550 branches. More than 2 lakh new customer contracts in a
financial year for the first time.
2011
Crossed the benchmark of Rs. 100 billion in Total
Assets Maiden QIP Issue Joint Venture with Rabobank subsidiary for tractor
financing in USA and ventured into SME financing
2012
Crossed the benchmark of financing more than 2million customers
Consolidated the product portfolio by introducingSmall and Medium Enterprises (SME) instruments
and bank facilities
financing Maintained an 18% Capital Adequacy, complying
with the minimum requirement of 15% set by the
RBI
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CRISIL reaffirmed 'CRISIL AA+/ Stable' rating to the
Companys long-term debt.
DETAIL OF MAHINDRA FINANCE
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DOCUMENTATION REQUIRED
Car loans available for wide range of cars across several
Indian and international brands MARUTI, TATA,
HYUNDAI, HONDA etc. Mahindra Finance provides
Personalized service throughout the tenure of theloan.
Widespread network of branches ensuring promptservice.
Any one document of proof from each of the given
categories will be required.
5 photos of borrower. Proof of identity:
Pan card, Voter ID card, Driving License,
Passport, Pass Book, Local Panchayat ID card.
Proof of address:Ration card, Electricity bill, Yellow card,
Driving License, Voter ID card.
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Bank Passbook with six months latest statement. Bank Cheques if needed. Proof of income:
Latest income tax returned filed, Details of
documents certifying land owned by customers
(khatauni), Salary slip, etc.
Proof of property.
3 stamps of Rs. 100 needed.One each in the name of borrower, Mahindra
& Mahindra Financial Services Limited, guarantor.
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PRODUCT WISE DEALER WISE
INFORMATION
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MARKET SHARE OF MAHINDRA FINANCE
AT EACH NON MAHINDRA AND
MAHINDRA COUNTER
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AGR MARUTI SUZUKI
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ELDEE MOTORS CHEVROLET
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SUYASH TATA MOTORS
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AREA OF IMPROVEMENT TO
INCREASE MARKET SHARE
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Scope Of Non Mahindra Cars
We can increase our business by converting cash
customers into finance customers as such customers do
not have financial problems so we should need toconvince them for purchasing a new car by paying half
down payment and increase the number of business.
Thus we can see from below our new market share as it
increases at each and every dealer point as we convinced
only 10 customers to purchase in finance instead of cash.
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MARKET SHARE
CASH(36.36%)
MMFSL(17.48%)
OTHER
FINANCERS(46.15%)
AGR MARUTI SUZUKI
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SUYASH TATA MOTORS
MARKET SHARE
CASH(34.37%)
MMFSL(34.37%)
OTHERFINANCERS(31.25%)
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REFINANCE
We provide fast and easy loan for the purchase of used
cars, utility vehicles, and commercial vehicles and used
tractors. Thus providing liquid cash to the family for the
need/emergency.
Refinance is divided into two sectors namely
Non organized groups. Organized groups. groups includes those customers for refinance
who have excellent track records with Mahindra
Finance and they be existing tractor customer
or commercial vehicles customer. Here,excellent track records refers to those
customers who had timely paid their dues
installments.
Organized groups includes Maruti True Value,Tata Assured, Chevrolet Eldee second hand alldealing with purchase of second hand cars. In
the process of refinance, Mahindra provides
loans on those amounts whichever is less on the
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valuation of vehicles either done by these
organized groups or by the insurance company.
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AREA OF IMPROVEMENT TO INCREASE
MARKET SHARE OF REFINANCE
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1.Improved data base:The information of customers should be well
in data bases so that the existing customers of
Mahindra should be easily tracked.
2.Telecalling:With the help of telecalling we can create a
new customer from the existing customers by
making them aware about our funding schemes and
low interest rates as compared to other unsecured
loans.
3.Awareness:It is one of the activity in which we can
spread the name of Mahindra Finance as much as
possible.
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4.Direct Marketing:It is also an activity like loan mela that we
perform with dealers to aware customers in ruraland urban sectors.
5.Advertisement:To provide information and to aware the
customers through print media.
6.Channel partner development:To grab more customers and
increase business it is necessary to take care of
channel partners like broker direct sales executives,
insurance agent etc. by providing them good amountof commission on time. As they are those people
who may increases the business.
7.Repeat existing customer:Those customer whose N.O.C. is cleared
and there are no dues to pay we can provide morefinance to those existing customers for purchase and
increase our business.
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DIFFERENCE/COMPARATIVE ANALYSIS
BETWEEN MAHINDRA FINANCE AND
OTHER FINANCERS
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COMPARATIVE ANALYSIS
MAHINDRA FINANCE
1. To increase business we focuson those customers who areavoided by other financersdue to there paper work esp.
rural people.2. Provides flexibility indocumentationrequirement.
3. Speedy loan disbursementprocess.
4. Low rate of interest ascompared to others.
5. Maximum flexibility inschemes as per requirementof customers.
OTHER FINANCERS
1. Generally they do not care
about the rural people.
2. Very often they provide
non-flexibility indocumentation
requirement.
3. Slow loan disbursement
process.
4. High rate of interest.
5. Minimum flexibility in
schemes.