Fullerton india credit company project report (1)

SUMMER TRAINING REPORTON

LOAN AVAILING METHODOLOGIES

ATFullerton India Credit Company

THE PARTIAL FULFILLMENT OF THE DEGREE

OF

BACHELOR OF BUSINESS ADMINISTRATION

Submitted To: Submitted By:Miss Uma Raikhola VipinKumar

(Project coordinator) BBA 5thsem.

Roll No.112294

DEVSTHALI VIDYAPEETH LALPUR , RUDRAPUR

ACKNOWLEDGEMENT

This report bears the imprint of many people. Right from the staff of my institute with out whose support and guidance. I would have not got the unique opportunity to successfully complete my summer training project.

I take this opportunity to express my sincere thanks and full appreciation to my faculty guide and Miss Uma Raikhola and my Company Manager Mr.………………………who extended their whole hearted cooperation and moral support for completion of this project work .

Last but not the least I am thankful to our parents & all those who have helped us directly or indirectly and whose name we forget to mention in the endeavor.

(Vipin Kumar)

STUDENT’S DECLARATION

I Vipin kumar student of BBA IV sem. Of DEVSTHALI VIDYAPEETH

INSTITUTE hereby declare that this project report on

“ LOAN AVAILING METHODOLOGIES ”

is written and submitted by me under the guidance of Miss Uma Raikhola

is my original work.

The entire analysis and conclusion of this report are based on the

information which is collected by me during the training period.

The empirical finding in the report are based on the data collected myself

while preparing this project. I have not copied anything from any source or

other project submitted for the similar purpose, if any.

( Vipin Kumar)

CONTENTS

CHAPTER-1

INTRODUCTION

1.1 -COMPANY PROFILE

1.2 -PRODUCT OFFERED BY THE COMPANY

1.3 -PROPOSITIONS AND VALUES

CHAPTER-2

RESEARCH METHODOLOGY

OBJECTIVES OF THE STUDY

CHAPTER-3

LITERATURE REVIEW

CHAPTER-4

ANALYSIS AND SUGGESTION

BIBLIOGRAPHY

Annexure

CHAPTER 1

INTRODUCTION

COMPANY PROFILE

Fullerton India Credit Company Limited (FICCL) is a Non-Banking

FinanceCompany (NBFC) with an “A” category license, issued by the

Reserve Bank ofIndia. It is a fully owned subsidiary of “Fullerton

Financial Holdings Pvt. ltd.”Singapore. The Company was

established in 1994. In December 2005 theManagement of this

Company changed, with an investor making an investment inthe

equity capital of this Company under the Foreign Direct Investment

Policy.

99.99% of the share capital of FICCL is held by Angelica Investment

Pte. Ltd.,Singapore. Then they began their operations with new

management in India inJanuary 2006. The new management team is

headed by a professional CEO andManaging Director, supported by a

team of professionals, with expertise in area ofConsumer Finance,

Middle market lending and SME businesses. Theseprofessionals have

worked in various Banks and Financial institutions, and havegood

commercial experience.

The company operates on a wide range of financial products

andservices forcustomers related to the retail markets and commercial

mass markets. Thecompany provides financial support to its clients

through basically two policiesnamely Fullerton India Parivaar and

Fullerton India Vyapar. Fullerton IndiaParivaar provides financial

security to salaried individuals whereas FullertonIndia Vyapar offers

financial support to people involved in small scale businessesor firms

of their own. The company follows a customer centric, community

basedbusiness model, and is committed to provide quality financial

services to thegrowing Indian masses. The Company believes in a

branch centric community ledrelationship based approach in meeting

customer needs rather than using theservices of a third party or a

vendor such as Direct Selling Agents. Under theorganizational

structure, the Company has in each of its branches, a team

ofRelationship Managers and Officers who meet customers to

understand theirbusiness or profession and credit requirements.

The Company being in the financial sector provides Loans and

financial servicesto customers such as Individuals, Professionals,

Partnership firms, Soleproprietorship and Small and Medium

companies. To service its customers, theCompany has two major

divisions Vyapar and Parivaar.

Products Offered By the Company

Fullerton India Parivaar has introduced a new concept in the Indian

market.The company have branches, which cater only to the specific

needs of SalariedIndividuals. Its Parivaar branches provide

customized products and solutions,especially designed keeping in

mind the unique circumstances and requirements ofthis segment.

The Parivaar Loans cover a wide range of products, which include:

1. Unsecured Personal Loans

2. Secured Loans

3. Home Finance

4. Home Equity Loans

1. Unsecured Personal Loans

An unsecured loan is a loan that is not backed by collateral, it is also

known as a signature loan or personal loan. Unsecured loans are

based solely upon the borrower's credit rating. An unsecured loan is

considered much cheaper andcarries less risk to the borrower.

Types of UnsecuredPersonal loans

There are three types of unsecured loans.

a) First is a personal unsecured loan, which means a loan that, a

personindividually responsible for the repayment.

b) Second is an unsecured business loan which leaves the business

responsiblefor the repayment.

c) Third is an unsecured business loan with a personal guarantee.

In this type ofunsecured loan the borrower is the business, but

guarantor will be the payerif the business defaults to pay the

loan.

2. Secured Loans

A secured loan is a loan in which the borrower pledges some asset

(e.g. a caror property) as collateral for the loan, which then becomes a

secured debt owed tothe creditor who gives the loan. The debt is thus

secured against the collateral. Inany event if the borrower defaults to

repay, then the creditor takes possession ofthe asset used as collateral

and may sell it to satisfy the debt by regaining theamount originally

lent to the borrower. There are two purposes for a loan securedby

debt. In the first purpose, by extending the loan through securing the

debt, thecreditor is relieved of most of the financial risks involved

because it allows thecreditor to take the property in the event that the

debt is not properly repaid. Inexchange, this permits the second

purpose where the debtors may receive loans onmore favorable terms

than that available for unsecured debt, or to be extendedcredit under

circumstances when credit under terms of unsecured debt would notbe

extended at all. The creditor may offer a loan with attractive interest

rates andrepaymentperiods for the secured debt.

3. Home Equity Loan

A home equity loan (sometimes abbreviated HEL) is a type of loan in

whichthe borrower uses the equity in their home as collateral. These

loans are sometimes useful to help finance major home repairs,

medical bills or college education. Ahome equity loan creates a lien

against the borrower's house, and reduces actualhome equity.

Types of Home Equity Loan

a) Closed end home equity loan:The borrower receives a

lump sum at the time of theclosing and cannot borrow further.

The maximum amount of money that can beborrowed is

determined by variables including credit history, income, and

theappraised value of the collateral, among others. It is common

to be able to borrowup to 100% of the appraised value of the

home, less any liens, although there arelenders that will go

above 100% when doing over-equity loans. However, state

lawgoverns in this area; for example, Texas (which was, for

many years, the only stateto not allow home equity loans) only

allows borrowing up to 80% of equity.Closed-end home equity

loans generally have fixed rates and can be amortized forperiods

usually up to 15 years. Some home equity loans offer reduced

amortizationwhereby at the end of the term, a balloon payment

is due. These larger lump-sumpayments can be avoided by

paying above the minimum payment or refinancingthe loan.

b) Open end home equity loan:This is a revolving credit loan,

also referred to as ahome equity line of credit, where the

borrower can choose when and how oftento borrow against the

equity in the property, with the lender setting an initiallimit to

the credit line based on criteria similar to those used for closed-

endloans. Like the closed-end loan, it may be possible to borrow

up to 100% of thevalue of a home, less any liens. These lines of

credit are available up to 30years, usually at a variable interest

rate. The minimum monthly payment canbe as low as only the

interest that is due.Typically, the interest rate is based on the

Prime rate plus a margin. FullertonIndia Vyapaar strives to

improve the business and lives of the small businesscommunity.

Their business is focused only on small establishments with a

turnoverof less than Rs.25 Mn p.a.

Relationship Approach of the Company

The Company believes in a branch centric community led

Relationshipbased approach in meeting customer needs rather than

using the services of a thirdparty or a vendor such as Direct Selling

Agents. Under the organizationalstructure, the Company has in each

of its branches, a team of RelationshipManagers and Officers who

meet customers to understand their business orprofession and their

credit requirements. Both the Vyapaar and Parivaar divisionsof the

Company leverage the relationship approach in establishing a

creditrelationship between the Company and the borrower. Loans are

granted on thebasis 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 areaaround the

physical location of the branch.

The Company’s general policy is to be reasonable, transparent and

fair with itscustomers.The Company follows established procedures,

understands customer requirementsand is reasonable in all its dealings

with customers. The design of the applicationforms and the

relationship based processes, are to make sure that the Company

istransparent in its dealings and transactions. It is with this in mind

that theCompany has set up the following guidelines as a Fair

Practices Code in dealingwith its customers

Fair Practices Code and Guidelines in Company

The following are the guidelines as a fair practices code in dealing

with itscustomer.

1. The current application forms capture full details of the customer i.e.

age,profession, business, office & residential address, income details

and otherrequirements. The application forms indicate the criteria for

minimum andmaximum finance available for personal loans,

automobile loans. Theapplication forms specify the documentation

requirements in addition toinitial scrutiny of documents submitted.

The Company may call foradditional documents for verification

purposes. The application forms arenumbered and one section of the

form is given back to the Customer as anacknowledgement. The

Company keeps a record of acceptance of terms andconditions by

keeping the original agreements signed by the customer andprovides

a copy of the Agreement or terms and conditions to its customers.

2. All applications are verified and processed within a reasonable

period oftime.Allapplications would go through a De-duplication and

Fraud Checkthough internally established procedures of the

Company, before loans areprocessed or approved. The applications

which do not satisfy the DE duplicationor Fraud Check criteria, would

be automatically rejected.Documents needed from the customers will

be collected before disbursementof loan.

3. The terms and conditions of the loan are clearly mentioned in the

LoanAgreement. The Loan Agreement would specify the tenure, the

amount of theloan, applicable rate of interest, the Equated Monthly

Installment (EMI)payments and other fees charged by the Company.

Processing fee, if collectedwould be clearly mentioned to the

customer. A Welcome Letter is also sent toour customers with Key

details & Repayment Schedule which mentions theEMIs, split by

Principal and Interest components.

4. In the event that the loan is rejected, the Company would

communicate to theCustomer verbally or in writing about the

rejection. The RelationshipManagers/ Officers are empowered to

convey the information of the rejectionof the loan verbally.

5. Customers at the time of disbursement of loan are advised about

facilitiesavailable to them and repayments they need to make from

time to time. Inany event the Company undertakes to give full details

of the loan, its currentstatus, monthly or quarterly repayments

required from time to time on thebasis of request made by the

Customers.

6. The Company would release all the securities to the customer once

the loan isrepaid and no dues are outstanding to the Company.

7. In case of request of a transfer of a loan account from one borrower

or alender to another Company or a Bank, the transfer would be

completedwithin 21 days of such a request, provided the customer

pays interest and allCompany dues up to date.

8. As far as recoveries of loans are concerned the Company would

follow itsown Collection Policy and procedure which is designed to

be customerfriendly. Under the Company’s collection policy detailed

guidelines are laiddown for following the Code of Conduct, with

delinquent customers. Ourcollection procedures are constantly

checked from a customer’s point of view.

9. The Company has a detailed policy on customer satisfaction and

complaintsreceived. As part of the Customer satisfaction assessment,

detailed analysis ofcustomer preferences and their grievances or

responses are taken intoaccount in improving our operations

constantly. Complaints received arepersonally attended to by the

Branch Manager and resolutions are trackedby centrally by the

Corporate Office in Mumbai. All grievances andcomplaints and

resolutions made are presented regularly to the Board ofDirectors for

their review.

II. Fullerton India's Propositions and Values

Propositions

The biggest proposition of Fullerton India is customer focus,

both, in productdesign/ customization and service. As an organization,

they are structurednot around products but along customer segments.

They have separateverticals for the Salaried Individuals (Parivaar) and

for Small sized shopowners & Entrepreneurs (Vyapaar).

This model lends itself to better understanding of our customers'

financialsituation and for a better products offering to them. With this

holisticunderstanding of the customers, the company is also able to

combine securedand unsecured products and structure the loan in a

manner which is ideallysuited to meet individual customer

requirements.

The Company employed Relationship Officers to service the

needs of thecustomers. There are no agents or other intermediaries,

coming in betweenthe customer and the company. These Relationship

Officers are the end-to-endsolution providers and act as a single point

of contact" for all Product,Process and Service related needs of the

customer.

The branches do business only within a 5 km radius. The

customers' office orresidence has to be within the branch coverage

area. This closer proximity ofthe customers to the branches ensures

better understanding of the localenvironment and immediate situation.

The Company participates actively in serving the community in

and aroundthe vicinity of their branch. The interest of company in the

locality extendsbeyond just a business relationship. The company

believes in participating inother aspects of development of the

community as well.

The business envisages setting up branches with employees

dealing directlywith the customers. This offering has elicited an

enthusiastic response fromcustomers as it gives higher degree of

transparency and faster value delivery.

The relationship model includes a deep assessment of a customers'

businessresulting in an omnibus facility with a flexible combination

of usage in parts,flexibility between a combination of short and long

tenures, and fromunsecured to partially secured and fully secured

facilities.

The facility set up for a customer is based on his risk profile,

repaymentcapacity, as well as proposed expansion plan. A

Relationship Officer isassigned to address incremental product needs,

as well as for servicerequirements, through a process of continuous

engagement. The business strives to deliver lifelong financing support

and regular facility enhancement,based on business growth.

Businesses are built on people, and the company hires relevant

local talent toserve the market, so that there is a connection between

the employees andcustomers.

The business wishes to bring a full service proposition

encompassing loansand liabilities to the small business owners.

Besides the variety of loans, lifeinsurance has been introduced which

will also be delivered through thebranch based Relationship Officers.

The business uses advanced technology tools to record customer

history, andleverage track record to enhance credit exposure in line

with the customerbusiness cycle. This ensures continuous support

through seasonal peaks.

CHAPTER 2

RESEARCH METHODOLOGY

RESERCH METHODOLOGY

Research Methodology is a way to systematically solve the research

Problem. The Research Methodology includes the various methods

and techniquesfor conducting a Research.

This project comes under the head of “Marketing Research”. The

“MarketingResearch” is the systematic design, collection, analysis

and reporting of data andfinding relevant solution to a specific

marketing situation or problem”.

Sampling Plan – Sampling can be defined as the section of some part

of anaggregate or totality on the basis of which judgment or an

inference aboutaggregate or totality is made. The sampling plan helps

in decision making in thefollowing areas:

Sample size – Sample size refers to the total numbers of

items about whichthe information is desired. The sample size of

the study is 100.

Data Collection - Information has been collected from both

Primary and Secondary Data.

Primary Data –Primary data are those, which are collected for the

first time,and thus happen to be original in character.

Primary Data has been collected in thisstudy by conducting survey

through Questionnaire.

Secondary Data –Secondary Data are those which have already been

collectedby someone else and which already had been passed through

the statistical process.

Secondary data has been collectedin this study through Magazines,

Web sites, Newspaper and Journals.

Objectives of the Study

The study was conducted to aiming at fulfilling the following

objectives

To find the preferences of customer regarding various types of

loan

To know the amount of loan generally availed by the respondents

To study the Advertising effectiveness in creating awareness

among the public

To study the satisfaction level of customer regarding different

loans schemes provided by Fullerton India Credit Company Ltd.

CHAPTER 3

LITERATURE REVIEW

LITERATURE REVIEW

Trevor Richards (1996) Begins by defining the conversion model –

amodel used as a marketing tool to identify commitment to different

brands of goodsor services. Argues that there is a difference between

committed and uncommittedcustomers which is not related to service

quality and that this makes it difficult topredict customer retention

based solely on these grounds. Other factors also drivecommitment.

Presents two short case studies based on these assumptions.Kurt

Matzler, Hans H. Hinterhuber, Franz Bailom, Elmar Sauerwein

(1996) Howto delight your customers, Asks which product qualities

are decisive for thesatisfaction of the customer and which features

merely prevent dissatisfaction.Proposes Kano’s model of customer

satisfaction for answering these questions andfor drawing conclusions

for the management of product development. In his model,Kano

distinguishes between three types of product requirement which

influencecustomer satisfaction in different ways when met: must-be

requirements, which arebasic criteria of a product - if these

requirements are not fulfilled, the customer willbe extremely

dissatisfied; one-dimensional requirements, where

customersatisfaction is proportional to the level of fulfillment, the

higher the customer’ssatisfaction and vice versa; and attractive

requirements, which are the productcriteria which have the greatest

influence on how satisfied a customer will be with agiven product.

Attractive requirements are neither explicitly expressed norexpected

by the customer.Antony Beckett, Paul Hewer, Barry Howcroft (2000)

An exposition ofconsumer behavior in the financial services industry,

Deregulation and theemergence of new forms of technology have

created highly competitive marketconditions which have had a critical

impact upon consumer behavior. Bankproviders must, therefore,

attempt to better understand their customers in anattempt not only to

anticipate but also to influence and determine consumer

buyingbehavior. The paper accordingly presents and develops a

model which attempts toarticulate and classify consumer behavior in

the purchasing of financial productsand services. The theoretical

insights generated by this model are then used toexamine qualitative

research data gained from focus group discussions onconsumers’

attitudes to their financial providers and their financial products.

Finally, these findings are examined for the potential insights they

provide to bankproviders attempting to identify appropriate strategies

which are conducive toincreased customer retention and profitability.

Randi Priluck (2003) Relationship marketing can mitigateproduct and

service failures, Relationship marketing is beneficial to firms because

it can foster customer loyalty and re-patronage behavior. Consumers

engaged inrelational exchanges are more satisfied than those in

discrete transactions becauseof the ease and psychological comfort of

purchasing from a familiar company. Thisresearch investigates the

power of relationship marketing to mitigate in twosituations. One

exposes consumers to poor product performance and examinestheir

levels of trust, commitment and satisfaction. The second presents a

productfailure that is followed by a lapse in service recovery and

measures satisfaction andexit behavior. The findings of both studies

suggest that relationships make up forincreasingly strong negative

encounters, providing a level of insulation for the marketer.

Implications for service firms are discussed.

Adam Lindgreen (2004) few published empirical studies

haveexamined the design, implementation, and monitoring of

customer relationshipmanagement (CRM) programs at a practical

level. The article develops a singleembedded case study on Dagbladet

Borsen (http://www.borsen.dk), the largestpublisher of business-

related materials in Scandinavia. The article first introducesthe reader

to the philosophy behind CRM. Following that, it considers key areas

ofa four-year long CRM program and offer insights into the procedure

that hasbeen developed by SJP (http://www.sjp.dk), the consulting

firm that was brought into assist. The procedure is organized around

eight areas: commitment of seniormanagement, situation report,

analysis, strategy formulation, implementation,management

development, employee involvement, and evaluation of loyalty

building processes. Over the four-year long CRM programme,

Dagbladet Borsenincreased its newspaper circulation by 40 per cent

and advertising revenue by 50 percent, while total revenue more than

doubled.

Ka-shing Woo, Henry K.Y. Fock (2004). The axiom that “the

customer is always right” is no longer valid when companies realize

that some of their customers are not right at all. Paying too much

attention to these so-called “wrong” customers may jeopardize a

company's survival and profitability. Right customers have to be

retained, “at-risk” right customers have to be recovered, and wrong

customers have to be divested. This study attempts to operationalize

the concept ofcustomer “rightness” and “wrongness” in terms of

different configurations ofattribute satisfaction and overall

satisfaction. Based on the result of a discriminant analysis of

satisfaction survey data, customers with different configurations of

attribute satisfaction and overall satisfaction are re-examined in terms

of switching intention, behavioral patterns and demographic

characteristics in order tohighlight any significant descriptor.

Susan E. Rau (2005) Building great products can be a reality for any

18company that takes the time and effort to create and execute the

linkages between:winning strategy; the role of products and services;

the product building blocks;and, linkages to customer needs. In fact,

our research and work with clientssuggests that a lack of alignment of

these factors is the number one cause for thepoor performance of

many new products. This article defines for the reader thefour

winning strategy choices a company has – Product Leader,

Distribution Giant,

Innovation Superstar and Customer Lover and how each of these

models puts adifferent emphasis on products and services. Once a

company has selected awinning strategy, executing that strategy

successfully requires adherence to thebusiness model, including

aligning product and services, customer imperatives and financial

realities to that winning strategy model. Losing focus and drifting

away from the chosen strategy or interspersing, for example, the

product priorities from one winning strategy with the customer

imperatives from another is a recipe forlackluster earnings and poor

stock performance. Readers will learn how tooutsmart the competition

and build products that really win in the marketplace.

CHAPTER 4

ANALYSIS AND SUGGESTION

ANALYSIS OF DATA

This research is based on primary and secondary data i.e. collected

throughprimary and secondary sources. The primary data is collected

with the help of questionnaire survey and the secondary data is

collected from Newspapers, Internet, and Magazines.

Therefore, the analysis of data is categorized under following two sub

categoriesthat are:-

Analysis of Primary Data

Analysis of Secondary Data

Firstly the analysis of primary data includes the analysis of data

collected throughquestionnaire. The analysis of Primary Data is as

follow:-

Parameters selected for Collecting Primary Data

1. Age of the Respondent

Age 18-28yrs 28-38 yrs 38-50 yrs More than50 yrs

Percentage 30% 26% 24% 20.00%

The respondent of research comprises of 30% of 18-28 years, 26% of

28-38 years,24% of 38-50 years and 20% of more than 50 years. This

classification of age groupis required to know the perception of

person for taking loan at different stage oflife. Generally Fullerton

India provides loan to salaried individuals and newentrepreneurs,

therefore our sample size is consists 56% of respondents liesbetween

the age group of 18 to 38years. After setting the age group

composition for survey the next parameter for differentiating

respondent is Income level.

2. Annual Income of the Respondent

Income Below 1 Lac 1-2 Lac 2-5 Lakh Above 5 Lakh

% age 15% 40% 35% 10%

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 havemore demand for loan. This research is

targeted to know the demand of loan bysalaried individual and small

entrepreneurs, therefore the sample size consists of15% Lower

Income level and 40% middle income level for judging the demand

ofsalaried individual and to judge the demand of small entrepreneurs

the sample sizeconsists of 35% upper middle income level and 10%

that are having annualincome more than 5 lakh.

3. Occupation of the Respondent

Occupation Government

Employee

Private

Employee

Businessman

Percentage 30.00% 25.00% 45.00%

The third important consideration which helps to identify that whether

therespondent is salaried individual or small entrepreneurs is

occupation. Theoccupation comprises of Government Employee,

private employee that fall intosalaried individual category and third

component of occupation is Businessmanwhich indicate small

entrepreneurs. The weight provided to salaried individual i.e.to

Government and private employee is 55% because Fullerton offered

moreproduct to this category and for small entrepreneurs the weight

assigned is 45%,because this weight can give justifiable result to

divide the demand of loan on thebasis of occupation.

4. From which source you knew about the various

schemes of Fullerton India?

Sources News

Paper

Television

Media

Internet Friends

Percentage 44% 12% 20% 24%

This question is asked in order to know the effectiveness of the

advertisementstrategy adopted by Fullerton India. The result found by

the survey shows thatmost of the customer knew about the various

loan schemes through newspaper &internet. Therefore company can

make more use of the newspaper and internet toincrease its customer

base. Secondly the company also getting the benefit of itsexisting

customer to advertise its product, because 24% of customer knew

aboutthe schemes of Fullerton India through their friends who had

taken loan fromFullerton India.Fullerton India is not making use of

Television media frequently because it is verycostly, therefore

resultantly it contributed only 12% in creating the awarenessamong

the customer regarding various schemes of Fullerton India.

5. Which type of loan you availed from Fullerton India?

The most preferred loan by customer is secured loan. This loan is

easily available to customer because there is less risk faced by

Fullerton in giving this type of loan as it is secured by some assets of

customer. Second more preferred loan than secured loan is Home loan

which is availed by 28% of customer other loan are availed by18%

and 12% of sample size.

Types Secured

Loan

Unsecured

Loan

Home

Loan

Home equity

loan

Percentage 42% 18% 28% 12%

6. Through which scheme of Fullerton India you availed

loan?

Type Parivaar Vyapaar

Percentage 62% 38%

The Fullerton India offers different types of loans under two main

scheme that areParivaar and Vyapaar. The Parivaar scheme is for

salaried individual whereasVyapaar scheme available for small

entrepreneurs. The result of survey shows thatmost of customer

availed loan under Parivaar scheme i.e. 62% as compare toVyapaar.

Therefore it shows that, the salaried individual are more important

forcompany, so the company is require to focus on this core product

andsimultaneously it require to improve the promotion of its Vyapaar

scheme toattract more customers.

7. What is your amount of loan?

Amount of Loan %age ofRespondents

0 - 2,00,000 28%

2,00,000-5,00,000 45%

5,00,000-10,00,000 32%

10,00,000 ormore 5%

This question is asked to know that generally how much amount of

loan is availedby the customer. The result of survey shows that 45%

customer availed 2 lakh to 5lakh loan, 32% availed 5 to 10 lakh, 28%

availed loan up to Rs 2lakh and there arevery less customer who

availed loan more than 10 lakh. So the Fullerton India isfamous for

medium loan, but there are very less number of customer for

largeamount loan. Therefore the company needs to focus on the

schemes for largeamount loan to become famous in this segment also.

8. What is the repayment period of your loan?

Number of Years percentage of Respondents

Below 2 Years 19%

2-5 Years 43%

5-10 Years 28%

More than 10 Years 10%

The profit of the company depends on the repayment period, because

if therepayment period is long than customer will pay interest for long

period so itbeneficial for company to issue loan for long repayment

period. In the survey it was foundthat 19% customer availed loan for

maturity period less than 2years, 43% of customer availed loan for 2

to 5 years, 28% availed for 5 to 10years and only 10 % availed for the

repayment period more than 10years. Themost preferred repayment

period is 2 to 5 years. The company will earn moresustainable profit

for long period if it increases the customer who avail loan forlong

maturity period, therefore the company need to formulate some

attractivescheme to attract the customer towards long repayment

period loan.

9. Are you satisfied with the rate of interest charge by

Fullerton India?

Yes No

67% 33%

The Fullerton India charging different rate of interest for different

type of loan.The rate of interest of unsecured loan is quite high

because of risky nature whereassecured loan is available at less rate of

interest. Therefore there are some customerswho are not satisfied with

the rate of interest. The sample size consists of 67%customers who

are satisfied with the rate of interest charging by Fullerton Indiaand

only 33% are unsatisfied.

10. What are the main factors which persuade you to

avail loanfrom Fullerton India?

Factor No. of Respondents

Easy repayment 19%

Easy Documentation 26%

Attractive Rate of Interest 29%

Quick Processing 17%

Others 9%

This question is considered to know that which service of Fullerton

India attractmore and more customer. The result shows that an

attractive rate of interest is themost important factor responsible for

attractingcustomer toward Fullerton India,then easy documentation,

easy repayment and quick processing is also work assupplement to

attract customer for availing loan from Fullerton India. Only

9%customers are fall in the category of others who availed loan due

to the referencesof some person, such as friends and relatives.

11. What grade you will assign to the services of

Fullerton India?

Grades Excellent Very

Good

Good Fair Poor

Percentage 12% 47% 31% 6% 4%

This result shows the perception of different customer toward services

of FullertonIndia. The 12 % customer thinks that the service delivery

of Fullerton India isexcellent whereas 47% thinks its service delivery

is very good, 31% thinks thatservices delivery is only good and 6%

thinks that the service delivery of FullertonIndia is fair, but as nobody

can satisfy everyone at same time, so this is same forFullerton India,

4%customer are not satisfied with the services of Fullerton India.

Analysis of Secondary Data

Analysis of secondary data includes the review of the news and

articles published innewspaper 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 ofits BPM solution (based on Newgen OmniFlow™)

at Fullerton India Credit CompanyLimited (FICCL).

NEWGEN SOFTWARE Technologies Limited, a market leader in

BusinessProcess Management (BPM) and Enterprise Content

Management (ECM), withimpeccable track record of implementing

mission-critical workflow and documentimaging solutions,

announced the successful implementation of its BPM solution(based

on Newgen OmniFlow™) at Fullerton India Credit Company

Limited(FICCL). FICCL, one of the largest capitalized Non-Banking

Finance Companies

(NBFC) in the country has taken a steep target of setting up a total of

800 branchesin the country by the end of 2009 (Till now, the

company has set up over 650branches).

Speaking of Newgen’s solution that has helped the FICCL in gearing

up to meet itstargets, Pramod Krishnamurthy, executive vice

president, technology, FICCL said,

“One of the key factors that has accounted for Fullerton India’s rapid

growth andramping up of operations is the excellent support provided

by the Newgen team.

Their state of the art workflow routing and imaging system

(OmniFlow) has metour dynamic requirements very well; it has

enabled us to provide high level ofcustomer service internally and

externally. We look forward to a continued long-termassociation with

them as a valuable partner in our growth.”

Newgen’s implementation at FICCL covers the entire gamut of

processes includingloan origination and booking, collections and

prospect tracking, loan against goldand early warning processes.

FICCL currently has more than 350 branches acrossthe country.

Number of concurrent users (users across the branches who can

besimultaneously logged into the system), which is already over 900,

is expected togrow 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 ourobjective to be an end-to-end BPM solution provider,

our solution has offeredFICCL continuous process improvement,

rapid results, visibility and control. Withthis implementation, we are

glad to support FICCL in reaching its steep targetsand establishing a

strengthened network in India.”

Newgen OmniFlow™ 5.0 is a platform independent, scalable BPM

solution thatenables automation of organizational business processes.

It is a complete softwaresolution to design, deploy, modify, monitor

and manage business processes,involving minimal programming

effort, and is easily deployable thereby enablingenterprises to

streamline their business processes for greater efficiencies. Builtusing

open technologies Newgen OmniFlow™ has seamless integration

abilitiesallowing it to be introduced into almost any existing IT

infrastructure.About Fullerton India Credit Company

LimitedFullerton India Credit Company Limited, a fully owned

subsidiary of FullertonFinancial Holdings, Singapore, is the fastest

growing financial services company inIndia with an equity capital

base of US$150 million (Rs 7 billion). The companyfollows a

relationship led, community based business model with close

proximityand engagement with the customer to effectively reach out

to them. In a short spanof time the company has disbursed over 1800

crore rupees, opened more than 400branches spread across 150

locations and has more than 8000 employees on itsrolls.

About Newgen SoftwareNewgen Software Technologies Limited is a

market leader in Business ProcessManagement (BPM) and Enterprise

Content Management (ECM), withimpeccable track record of

implementing mission-critical workflow and documentimaging

solutions. We have a global footprint, with an installation base of

morethan 700 customers in over 25 countries. More than 40 of our

customers are GlobalFortune 500 companies. Having domain

expertise in industry verticals such asBanking, Financial Services,

Insurance, BPO, Telecom, e-Governance andmanufacturing among

others, we are known as one of the fastest implementers ofBPM

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 Awardfor Document Management and Workflow

Software & Services for 2006’ and ‘DistinguishedApplication Product

Company’ by NASSCOM, Newgen Software isan 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 Businessprocess management. NEWGEN SOFTWARE

Technologies Limited is a marketleader in Business Process

Management (BPM) and Enterprise ContentManagement (ECM),

with impeccable track record of implementing mission

criticalworkflow and document imaging solutions, has announced the

successfulimplementation of its BPM solution (based on Newgen

OmniFlow™) at “FullertonIndia Credit Company Limited”. Fullerton

India has taken this step to achieve itstarget of setting up a total of

800 branches in the country by the end of 2009 (Tillnow, the

company has set up over 650 branches).

Newgen’s solution will help the Fullerton India to meet its targets and

anotherimportance of this step is rapid growth. It also enabling

Fullerton India to providehigh 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)

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 38 business process solutions to meet strategic business

objectives. The awards are given for five geographical regions:

Europe, Middle East Africa, NorthAmerica, Pacific Rim, and South &

Central America with each regionreceiving one Gold and one Silver

Award.

In order to streamline the workflow and imaging process, Fullerton

deployedthe BPM solutions provided by Newgen. The

implementation by NewgenSoftware at FICCL covered the entire

gamut of processes including loanorigination and booking, collections

and prospect tracking, loan against goldand early warning processes.

FICCL currently has more than 825 branchesacross the country.

“We are honored to have been presented with this award. One of the

mostimportant factors which contributed to our success has been the

ease withwhich business process change has been enabled through

Newgen’s OmniFlow.

The solution has enabled us to do this quickly and economically”,

said PramodKrishnamurthy, executive vice president, technology,

FICCL.

Speaking of the successful implementation of their solution Rajvinder

Kohli,VP—Sales, Newgen Software Technologies, said, “The

recognition is areflection of our commitment towards our customers

to provide them with best services. The deployment of OmniFlow

BPM Suite at Fullerton India Credithas created history by enabling

them to open more than 800 branches in justtwo 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 WMC, BPMFocus.org and BPM.com and now in

their 15thyear. While judging the winners, particular attention is paid

toimplementations 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 Rim, and South and Central America.

Each region receives oneGold 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), witha global footprint of about 700 installations in over 30

countries. More than 100of these implementations are large, mission-

critical solutions deployed atworld’s leading BFSI, BPO and Fortune

Global 500 companies.

Newgen is recognized by distinguished analyst firm IDC in its

exclusive report“Newgen Software: Global Leader in Business

Process Management andDocument Management Solutions.”

Winner of prestigious awards, such as CNBC-TV18 “Emerging India

Award2008”, Frost and Sullivan's “Market Leadership Award for

DocumentManagement System and Workflow Software & Services”

and “DistinguishedApplication Product Company” by NASSCOM,

Newgen Software is an ISO9001:2000, ISO 27001 certified and

CMM Level 4 company.

Review of Article: 2

Second Review is based on the article published in similar web site

i.e. BPM.com.

This article reveal about the gold award won by Fullerton India Credit

CompanyLimited (FICCL) for Excellence in Business Process

Management (BPM) andWorkflow with Newgen Software’s BPM

solutions. The company has bagged theaward for the Pacific Rim

region.

This Awards for Excellence in BPM and Workflow recognizes user

organizationsthat have demonstrably excelled in implementing

innovative business processsolutions to meet strategic business

objectives. The awards are given for fivegeographical regions:

Europe, Middle East Africa, North America, PacificRim, and South &

Central America with each region receiving one Gold and oneSilver

Award.

Findings of the Study

From the above study it is clear that 62% of the respondents

havetaken loan under Parivaar scheme and only 38% taken loan

underVyapaar scheme. Therefore it shows that Fullerton India is

favorablein short term loan segment which is provided by Fullerton

India underParivaar scheme and especially for salaried individual.

From the abovestudy it is clear that majority of the respondents got

aware of differentloan scheme provided by Fullerton India through

News paper.

Therefore company is require to advertise its schemes more

frequentlyin Newspaper which will help company in getting more

newcustomers.

The above study depicts that most of the respondents availed loan

of amount ranging from Rs. 2 - 5 Lakh. Therefore, if Fullerton

Indiaintroduce more scheme under this range to meet the different

demand of customers.

The above study depicts that mostly the respondents preferred

theloan having repayment period from 2-5. Therefore the company

needs

to add some more benefits to the long term period loan so that

thedemand of long term loan will increase which increase the profit

ofcompany, because as the repayment period is long than the source

ofincome (Interest) is sustain for long period.

Most of the people are satisfied with the rate of interest charged

andby Fullerton India.

Fullerton India mostly disbursed loan as secured loan, this

willprovide 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. From the above figure it

isclear that majority of the respondents are satisfied with the services

oftheir present bank so they do not want any change in the rate of

interestand services, but no one can satisfy everyone at same time,

Fullertonhaving respondents who are not satisfied with rate of interest

andservices of Fullerton India.

SUGGESTION

The following suggestions have been formulated on the basis of

above study. Theseset of suggestions might help the Fullerton India to

improve the quality of serviceregarding loan provisions and

simultaneously these suggestions help the FullertonIndia to tackle the

competition prevailing in the market, thereby achieving successin the

future.

Firstly Fullerton India should create awareness among the

common public about the various loan schemes of they are providing.

In order to create awareness regarding the loan schemes an

electronic medium of media can put to use to advertise about the

schemes andservices provided by Fullerton India. This would help to

change theattitude of the people regarding the Fullerton India.

The interest rates should be regularly revised in order to attract

more andmore customer. Some new plans should be introduced

regularly to caterthe special needs of customer which provides them

more offerings andbenefits.

New strategies should be made by the company which enables

them toface the competition with other private leading Non-Banking

Financialcompanies.

The Company needs to focus more on providing value added

services to itscustomer. This will create Brand loyalty among

customer which indirectlyattract more and more customer because a

satisfied customer will alwaysbring two more new customers.

The management of company should be more efficient which

enables inquick processing of the task regarding loans disbursement

and loancollection, this will enable efficiency in the working capital

cycle of thecompany.

There should be customer relationship management concept in the

Company which help the company to understand the special need

ofCustomer. Accordingly company formulate schemes should be

maintained.

The Fullerton India need to concentrate on new target market

byexpanding its business through introducing new loan schemes

andservices. Currently the company is proving loans under main two

categoryi.e. Parivaar and Vyapaar so, it looks limited. Therefore the

company needsto introduce new schemes to enter in to new target

market.

References

http://www.emeraldinsight.com/10.1108/02652320010315325

http://www.emeraldinsight.com/10.1108/10610429610119469

http://www.emeraldinsight.com/10.1108/08944310510556982

http://www.emeraldinsight.com/10.1108/08876040410536495

http://www.emeraldinsight.com/10.1108/02634500410525841

http://www.emeraldinsight.com/10.1108/09604529610120294

www.fullertonindia.com/

www.fullertonindia.com/index.php?

option=com_facileforms&Itemid=225

Annexure:

Fullerton India Credit adopts Newgen’s BPM solution

Newgen Software Technologies Limited announced the successful

implementation ofits BPM solution (based on Newgen OmniFlow™)

at Fullerton India Credit CompanyLimited (FICCL)..

CJ: Charu, 19 Oct 2007 Views: 3306

NEWGEN SOFTWARE Technologies Limited, a market leader in

BusinessProcess Management (BPM) and Enterprise Content

Management (ECM), withimpeccable track record of implementing

mission-critical workflow and documentimaging solutions,

announced the successful implementation of its BPM solution(based

on Newgen OmniFlow™) at Fullerton India Credit Company

Limited(FICCL). FICCL, one of the largest capitalizedNon-Banking

Finance Companies

(NBFC) in the country has taken a steep target of setting up a total of

500 branchesin the country by the end of 2007 (Till now, the

company has set up over 350branches).

Speaking of Newgen’s solution that has helped the FICCL in gearing

up to meet itstargets, Pramod Krishnamurthy, executive vice

president, technology, FICCL said,“One of the key factors that has

accounted for Fullerton India’s rapid growth andramping up of

operations is the excellent support provided by the Newgen team.

Their state of the art workflow routing and imaging system

(OmniFlow) has metour dynamic requirements very well; it has

enabled us to provide high level ofcustomer service internally and

externally. We look forward to a continued long-termassociation with

them as a valuable partner in our growth.”

Newgen’s implementation at FICCL covers the entire gamut of

processes includingloan origination and booking, collections and

prospect tracking, loan against goldand early warning processes.

FICCL currently has more than 350 branches acrossthe country.

Number of concurrent users (users across the branches who can

besimultaneously logged into the system), which is already over 900,

is expected togrow 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 ourobjective to be an end-to-end BPM solution provider,

our solution has offeredFICCL continuous process improvement,

rapid results, visibility and control. Withthis implementation, we are

glad to support FICCL in reaching its steep targetsand establishing a

strengthened network in India.”

Newgen OmniFlow™ 5.0 is a platform independent, scalable BPM

solution thatenables automation of organizational business processes.

It is a complete softwaresolution to design, deploy, modify, monitor

and manage business processes,involving minimal programming

effort, and is easily deployable thereby enablingenterprises to

streamline their business processes for greater efficiencies. Builtusing

open technologies Newgen OmniFlow™ has seamless integration

abilitiesallowing 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

FullertonFinancial Holdings, Singapore, is the fastest growing

financial services company inIndia with an equity capital base of

US$150 million (Rs 7 billion). The company follows a relationship

led, community based business model with close proximityand

engagement with the customer to effectively reach out to them. In a

short spanof time the company has disbursed over 1800 crore rupees,

opened more than 400branches spread across 150 locations and has

more than 8000 employees on itsrolls.

About Newgen Software

Newgen Software Technologies Limited is a market leader in

Business ProcessManagement (BPM) and Enterprise Content

Management (ECM), withimpeccable track record of implementing

mission-critical workflow and documentimaging solutions. We have a

global footprint, with an installation base of morethan 700 customers

in over 25 countries. More than 40 of our customers are

GlobalFortune 500 companies. Having domain expertise in industry

verticals such as

Banking, Financial Services, Insurance, BPO, Telecom, e-Governance

andmanufacturing among others, we are known as one of the fastest

implementers ofBPM 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 Awardfor Document Management and Workflow

Software & Services for 2006’ and ‘Distinguished Application

Product Company’ by NASSCOM, Newgen Software isan ISO

9001:2000 certified and CMM Level 4 company.

Questionnaire

(Customer’s)

Name:…………… Contact No:……………

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. 2-5 Lakh □

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. Which type of loan you availed from Fullerton

India?

a. Secured Loan □

b. Unsecured Loan □

c. Home Loan □

d. Home equity loan □

6. Through which scheme of Fullerton India you

availed loan?

a. Parivaar □

b. Vyapaar □

7. What is your amount of loan?

a. 0 - 2,00,000 □

b. 2,00,000-5,00,000 □

c. 5,00,000-10,00,000 □

d. 10,00,000 or more □

8. What is the repayment period of your loan?

a. Below 2 Years □

b. 2-5 Years □

c. 5-10 Years □

d. More than 10 Years □

9. Are you satisfied with the rate of interest charge by

Fullerton India?

a. Yes □

b. No □

10. What are the main factors which persuade you to

avail loanfrom Fullerton India?

a. Easy Repayment □

b. Easy Documentation □

c. Attractive Rate of Interest □

d. Quick Processing □

e. Others □

11. What grade you will assign to the services of

Fullerton India?

a. Excellent □ b. Very Good □

c. Good □ d. Fair □

e. Poor □

Thank You…