loan_market

PART - 1

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INTRODUCTION OF ORGANIZATION

Fullerton India Credit Company Ltd.

Fullerton India Credit Company Ltd.(FICCL) is a non banking finance company

(NBFC) with an ‘A’ category license , issued by the RESERVE BANK OF

INDIA . The company established in FULLERTON INDIA Credit Company Ltd.

(FICCL) is a Non Banking Finance company (NBFC) with 1994 in December

2005                                                  

     The company came into existence in 2005 which acquired DOVE FINANCE an

12th December 2005 in bring its operation at PAN India level . The management of

this company changed with an investor making an investment in the equity capital

of this company under foreign direct investment policy 99.99% of the share capital

of FICCL is held by ANGELINA INVESTMENT Pet. Ltd. SINGAPORE .

 Fullerton India is credit company (FICCL) is 100% subsidiary of Asia

financial holding , which is turn in indirect subsidiary of TEMSEK holding

Singapore Fullerton provides financial products and solutions, customized to the

requirements of mass market and low income population segments. We follow a

customer entric, community based business model. Fullerton India is a subsidiary of

Fullerton Financial Holdings Pvt. Ltd., a wholly owned subsidiary of the US $100

Billion Temasek Holdings, Singapore.

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Fullerton India operations commenced in January 2006, with a network of branches across

the country to source and service our customers.

Fullerton India's business is to foster sustainable economic development of the large segment

of the middle class population of India which has hitherto, not had access to quality financial

services. At Fullerton India, CARE means Compassion, Action and Responsibility for

Everyone. Community care is an integral element of our vision.

FULLERTON INDIA division

a) COMMERCIAL     MASS MARKET (CMM) :-

CMM provide loan to self employed like shop-owner

b) RETAIL MASS MARKET (RMM)

 RMM Provide loan to salaried like personal  -micro entrepreneur engaged in small

business loan, housing loan, automobiles loans, mort gage loans etc 

In late 2009 both division merged in a bank formally called as CRMM

{Commercial Retail Mass Market} which is lead by ‘’Sir

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BRIEF HISTORY OF THE ORGANIZATION

Fort Fullerton Named after GOVERNER ROBERT FULLERTON was created to

project Singapore, Singapore was then known as TEMSEK the SEA TOWN.

Our parent company, TEMSEK holding incorporated 1974 is one the Asia biggest

investment firms with a diversified $134 Billion Portfolio, spanning various

Industries, financial service is one of the key focus area of TEMSEK, carrying

forward this legacy,

MAJOR INVESTMENT OF TEMSEK HOLDING IN WORLD

1. BANK DANAMON   

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2. ICICI BANK     

3. CHINA CONSTRUSTION

4. INDONESIA 

5. MAHINDRA &   MAHINDRA  

6. BANK AND CHINA COSCO

7. NIB BANK PAKISTAN  

8. HOLDING IN CHINA

9. FULLERTON INDIA     

10. TATA TELESERVICE     

11. BANK DANAMON AND BANK

12. INTERNATIONAL INDONESIA

 13. QUINTILES

  14. TRANSNATION CORPRATION  

  15. STANDARD CHARTED (USA)

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Fullerton India is deeply committed to provide quality & financial to the growing

Indian masses                            

 IN may-June 2005 TEMSEK FORMED COMPANY “ASIA FINANCIAL

MANAGEMENT SERVICE”.  But on 12th July-AUGEST 2005 it was hold by

financial, then on 12th December 2005 it is acquired dove finance to bring it is

operation at PAN INDIA LEVEL.

                       On 1st January 2006 came into existence FIRST INDIA CREDIT

CORPORATION and 1st may 2006 the company partnered with centurion “BANK

OF PUNJAB “. But the name of company FIRST INDIA CREDIT

CORPORATION cross with other company name so it changed the name of

company and it become “FULLERTON INDIA”. on 1st January 2007, Now it

successfully completed phase -1 branches roll out date. Of the growing Indian

masses.

The Company being in the financial sector provides Loans and financial

services to customers such as Individuals, Professionals, Partnership firms, Sole

proprietorship and Small and Medium companies. To service its customers, the

Company has two major divisions Vyapaar and Parivaar. The Vyapaar division

provides loans and advances to shop owners & micro-entrepreneurs engaged in

small business enterprises. The Parivaar division provides Loans and Advances to

Salaried Individuals, like Personal loans, Housing loans, Automobile loans,

Mortgage loans, etc.

The Company believes in a branch centric community led Relationship based

approach in meeting customer needs rather than using the services of a third party

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or a vendor such as Direct Selling Agents. Under the organizational structure, the

Company has in each of it’s branches, a team of Relationship Managers and

Officers who meet customers to understand their business or profession and their

credit requirements. Both the Vyapaar and Parivaar divisions of the Company

leverage the relationship approach in establishing a credit relationship between the

Company and the borrower. Loans are granted on the basis of completed

applications, completing the Know-Your-Customer (KYC) norms, discussion with

the customers about the terms of their loan, rate of interest, repayment arrangement,

etc. The branch only services customers in a limited area around the physical

location of the branch.

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

with its customers. The Company follows established procedures, understands

customer requirements and is reasonable in all its dealings with customers. The

design of the application forms and the relationship based processes, are to make

sure that the Company is transparent in its dealings and transactions. It is with this

in mind that the Company has set up the following guidelines as a Fair Practices

Code in dealing with its customers.

Till Date           Successfully Completed phase 1   Branch roll out

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Date Phase

01st January 2007 Fullerton India

01st May 2006 Partners with Conjuration bank of Punjab

01st January 2006 First India credit corporation

12th December 2005 Acquired Dove finance

12th July-August 2005 Asia financial holding

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Direct Contact with Localized Credit customers Approval System

Dedicated relationship officer  Credit approval takes into acts as a single point of

interface   account local market under-with customer with deep standing.

Understanding of his needs and superior .

      Under the organizational structure the Company has in each of it’s branches. A

Team Of Relationship Managers and Officers who meet customers to understand

their business or profession and their credit requirement. Both the Vyapar and

Parivaar division of the Company leverage the relationship approach in establishing

a credit relationship between the Company and the customer.

FAIR PRACTICES CODE AND GUIDELINES

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The current application forms capture full details of the customer – age, profession,

business, office & residential address, income details and other requirements. The

application forms indicate the criteria for minimum and maximum finance available

for personal loans, automobile loans. The application forms specify the

documentation requirements in addition to initial scrutiny of documents submitted.

The Company may call for additional documents for verification purposes. The

application forms are numbered and one section of the form is given back to the

Customer as an acknowledgement.  The Company keeps a record of acceptance of

terms and a condition by keeping the original agreements signed by the customer

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

All applications are verified and processed within a reasonable period of time. All

applications would go through a De-duplication and Fraud Check though internally

established procedures of the Company, before loans are processed or approved.

The applications which do not satisfy the De-duplication or Fraud Check criteria

would be automatically rejected. Documents needed from the customers will be

collected before disbursement of loan.

The terms and conditions of the loan are clearly spelt out in the Loan Agreement.

The Loan Agreement would specify the tenure, the amount of the loan, applicable

rate of interest, the Equated Monthly Installment (EMI) payments and other fees

charged by the Company. Processing fee, if collected would be clearly mentioned to

the customer. A Welcome Letter is also sent to our customers with Key details &

Repayment Schedule which mentions the EMIs, split by Principal and Interest

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

communicate to the Customer verbally or in writing about the rejection. The

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Relationship Managers/ Officers are empowered to convey the information of the

rejection of the loan verbally.

Customers at the time of disbursement of loan are advised about facilities available

to them and repayments they need to make from time to time. In any event the

Company undertakes to give full details of the loan, its current status, monthly or

quarterly repayments required from time to time on the basis of request made by the

Customers.

The Company would release all the securities to the customer once the loan is

repaid and no dues are outstanding to the Company.

In case of request of a transfer of a loan account from one borrower or a lender to

another Company or a Bank, the transfer would be completed within 21 days of

such a request, provided the customer pays interest and all Company dues up to

date.

As far as recoveries of loans are concerned the Company would follow its own

Collection Policy and procedure which is designed to be customer friendly. Under

the Company’s collection policy detailed guidelines are laid down for following the

Code of Conduct, with delinquent customers.  Our collection procedures are

constantly checked from a customer’s point of view.

POLICY

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Corporate governance is about commitment to values and about ethical business

conduct. It is about how an organization is managed. This includes its corporate and

other structures, its culture, policies and the manner in which it deals with various

stakeholders. Corporate governance is primarily the responsibility of the Board of

Directors as a group. The Board of Directors performs its duties with the support of

managerial staff.

Accordingly, timely and accurate disclosure of information regarding the

financial situation, performance, ownership and governance of the company is an

important part of corporate governance. This improves public understanding of the

structure, activities and policies of the organization. Consequently, the organization

is able to enhance the trust and confidence of the stakeholders..

Corporate Governance Philosophy and Practice  

The Company believes in adopting, adhering and benchmarking itself

against the best recognized corporate governance practices. Good corporate

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governance practices stem from the culture and mindset of the organization. While

practicing good corporate governance the company strives to communicate, all the

material developments and its financial performance in a timely, meaningful and

truthful manner.

The Company has infused the philosophy of corporate governance into all

its activities. It has adopted 10 cardinal principles in its functioning, such as Team

Work, Open to Change, Integrity & Discipline, Transparency, Care, Risk Adjusted

Returns, Unlearn Old Ways & Learn New Ways, Innovation, Entrepreneurial

Spirit and Passion to Excel which serves as the means for implementing the

philosophy of corporate governance in letter and spirit. 

Further, the Company believes that an active, well-informed and

Independent Board of Directors is necessary to ensure the highest standards of

Corporate Governance. The Board of Directors oversees the performance of the

company and ensures shareholder protection and maximization of their long term

values. There is also an active participation of Independent Directors in the

Company. The Company voluntarily follows the spirit of Clause 49 of the Listing

Agreement, though the said clause is not applicable to the Company it being an

unlisted entity.  

For a copy of the detailed Corporate Governance Policy, please send a

written request to the Company Secretary or contact him on 022- 6749 1234.

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CORE VALUE

1. Integrity and Discipline:

It's a core commandment around which everything else revolves. Fullerton India

Credit Company Limited has to be seen by all extremely and within the

organization to be of extremely high character and integrity. Fullerton India Credit

Company Limited does not want our success to be shadowed by a perception of

lack of character and integrity

2. Passion to Excel:

What Fullerton India Credit Company Limited has set out to achieve cannot be

achieved unless all of us have an inner passion to excel individually and as a team.

When each of our cultivates and nurtures this passion. It will cascade into the

organization wanting to excel at what its doing.

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3. Innovation:

Innovation is nothing but thinking about something before others, then

implementing it and still look for ways to better what your have just implemented.

It's a continuous process and Fullerton India Credit Company Limited need to keep

thinking about our jobs with that in mind.

4.Open to change:

Biggest impediment in one's development is an inborn conviction that whatever one

knows is the only way to do other job. There were some who challenged themselves

and the making made such development

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5.Unlearn and Learn:

Fullerton India Credit Company Limited is off to achieve something that no one has

so far. So Fullerton India Credit Company Limited need to learn new things, new

perspective to some things we know. New views and ideas come from people who

did things differently from you. One has top respect them and build onto them.

6. Care:

Great communities, Great organizations are built around caring for each other. One

has to care for its customers, both internal and external as well as colleagues.

7. Transparency:

Transparency in our action and thoughts in extremely important to build some of

the other values like care, teamwork and integrity. It’s the only way Fullerton India

Credit Company Limited can ensure that all our goals and objectives are perfectly

aligned to that of the Organization.

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8.Risk Adjusted Returns:

It’s extremely important for us to evaluate the risks and returns four actions. All

new opportunities, approaches need to be evaluated from this angle in order to

deliver on our final goal of sustaining long term Shareholder value.

9. Team:

Teamwork is of paramount importance as we embark upon our journey. What

Fullerton India Credit Company Limited will achieve will be achieved as a team

and therefore it is vital to feel as a member of the team that does it. Without

teamwork and alignment within teams it will take a lot more effort to get there.

10. Entrepreneurs:

Fullerton India Credit Company Limited should not view us as employees of this

Organization but as Entrepreneurs in change four destinies. That sense of ownership

and responsibility is vital for our success.

Fort Fullerton, named after Governor Robert Fullerton, was created to protect

Singapore. Singapore was then known as Temasek - the 'sea town'. 

Our parent company, Temasek Holdings, incorporated in 1974, is one of Asia's

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biggest investment firms, with a diversified US $134 Billion portfolio, spanning

various industries. Financial services is one of the key focus area of Temasek.

Carrying forward this legacy, Fullerton India is deeply committed to provide quality

financial services to the growing Indian masses.

A company spokesman said, "This is a consolidation exercise, under which

branches have been merged and under-performers have been asked to leave." 

Another company official said those people laid-off were probationers and in the

first year of their jobs. "Most of these employees were given six to nine months to

develop their skills and were also provided with adequate training. Those who could

not come up the learning curve have been asked to leave". 

A wholly-owned subsidiary of investment major Temasek Holdings, Fullerton

specializes in lending to the mass market which consists of small & micro

entrepreneurs, small shops and trading establishments, self employed segment

(annual turnover of Rs 2.5 lakh to Rs 1.5 core) and the lower level of salaried

individuals (annual salary of Rs 36000 to Rs 3 lakh). 

The credit company had 800 branches across the country and employed around

14,000 people. Singapore-based Temasek Holdings has invested $ 300 million in

Fullerton India in the last couple of years, the last infusion was made in October last

year. 

Fullerton India has disbursed close to Rs 5,000 core since it started operations in

2006 and has an asset book of Rs. 2,500 core at present. While 70% of its lending

portfolio constitutes loans to the self-employed segment, the remainder consists of

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loans to salaried individuals and two-wheeler loans. Most of these loans are

unsecured. The company has an exclusive tie-up with Hero Honda and Honda

Motorcycles for two-wheeler financing.

  NBFC’s such as CitiFinancial and GE Money have also scaled down

operations significantly in the past six months. While CitiFinancial has brought

down its branch network from 450 branches to 170 branches, GE Money has

reduced its network from 180 branches to less than 80 branches. 

Fullerton Holdings is also planning the launch of its subsidiary Fullerton Securities,

which will provide retail broking and wealth management services to clients in the

mass affluent segment. The team is spearheaded by Rajiv Kakar, formerly head of

Citibank’s consumer banking business in Turkey, Middle East and Africa and

thereafter member of the board of Visa International for Central Europe, Middle

East and Africa and Pallav Sinha, formerly Head of Wealth Management at

Standard Chartered Bank, India.

BOARD OF DIRECTORFrancis Andrew Rozario

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Chairman

Fullerton India Credit Co Ltd

P.O. Box No. 8108

Bandra East

Mumbai 400 051

Mr.Nihal Kaviratne CBE (Independent

Director)                                      

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Mr. Francis Ribeiro (Independent

Director)                                    

Mr. SN

Menon (IndependentDirector)                                      

Mr. Parvez Vajifdar (Whole Time Director)

Mr. Rajeev Kakar (Director)

Mr. Sodano Thomas (Director)

Mr. SNG Seow Wah (Director)

Mr. Cheo Hock Kuan (Director)

Mr. Jovasky Pang Archana Parekh (Director)

Mr. Cheo

Hock Kuan (Alternate Director)

Organization PERFORMANCE

The retail finance market in India has regained its lost sheen

as loan disbursements in this space is likely to see a 29 per

cent annual growth and is expected to touch a whopping Rs

4.2 lakh core by 2011-12.

“The huge untapped demand, coupled with the rebound in

profitability for financiers, is expected to spur a boom in

retail finance in the coming years,” Infrastructure lending

major IDFC said in a research report.

Not too far in the past, regulatory forbearance and a cyclical

downturn in the economy had taken the sheen off the

lucrative retail finance industry. Pursuant to which, the

market grew by a meager 8 per cent over FY08-10 against

around 50 per cent CAGR over FY05-08

.The growth in the retail finance disbursement would be

largely driven by improving affordability, increasing

propensity to consume and the fact that the penetration level

of retail finance loans is still low.

“We expect annual disbursements in the segment to

accelerate to 29 per cent compound annual growth rate

(CAGR) over FY10-12 to a whopping Rs 4.2 lakh core in

FY12.”

India, home to one of the world’s youngest population (480

million people under the age of 40 years), offers a perfect

ground for proliferation of retail finance. On the back of

improving income demographics and thereby higher

affordability, penetration of retail assets was on the rise.

The report further highlighted the fact that the higher

income bracket in the country is growing faster. The

number of households in the lowest income bracket has

fallen in absolute terms from 41 million to 31 million.

Besides, the proportion of house holds with annual income

below Rs 10 million falling to 36 per cent from 46 per cent

over FY10-15, the report added.

“Burgeoning middle income household’s ideal market for

retail loans, at a time when asset prices are stable and

affordability is rising,” it said.

There are as many as 480 million Indians (or 41 per cent of

population) in age group of 15-40 years with high material

aspirations, on the back of increasing urbanization. Besides,

India has a high proportion of young people who are not

wary of borrowing.

There is ample scope to expand as auto penetration remains

low, as also the 2-wheeler penetration. In mortgages there is

ample scope to grow, besides credit card penetration also

lags, the report added

Comparison of FULLERTON INDIA( FICCL) with other Finance Company

Subject to FULLERTON

INDIA

TMFL

INDIABULLS

Fin. Ser. Ltd

Mahindra &

Mahindra

Fin.

Indusind

Bank

Ltd.

Market Share in %

Jhansi 5% 30% 8% 10% 40%

FI done by out Side

Agency NO YES NO NO NO

TAT in Operation 2 Day’s 3 3 Day’s 2 Day’s

IRR Rate in ( % ) 13 – 16 15 – 16 17.5 13.50

Disbursement of File Chennai Agra Local Local

FCU Agency Yes Yes Yes No No

ORGANIZATION PRODUCT & SERVICES

Our Parivaar branches provide customized products

and solutions especially designed keeping in mind the

unique circumstances and requirements of this segment.

The Parivaar Loans cover a wise range of products,

which include:

Unsecured Personal Loans

Secured Loans

Home Finance

Home Equity Loans

Unsecured Personal Loans:- are the loans which are

provided by financial institution without any collateral

security, this means that there is no risk on owned property.

In India unsecured personal loans are generally taken to

manage higher standard of living, marriages, promoting

business, tours, petty expenses and investment in different

financial schemes. The amount of loan can be ranged from

Rs. 50,000 – Rs. 20 lakh & the tenure for repaying the loan

varies from 1 to 5

Benefits of personal loan

1. A Loan without security : A Personal Loan is not a

secured loan (bank doesn’t ask for any security or

collateral) as against a Secured Loan where one is

required to pledge a house or other security to

acquire a loan

2. Simple Documentation: A Personal Loan can be

accessed with minimal paperwork or documentation

& doesn’t take much time to procure as against a

Secured Loan.

3. No specification about the end use of the loan

amount: You are not required to disclose the end use of the

money borrowed, Banks are concerned about the fact that

whether the borrower is able to pay back the loan with

interest before the due date or not and they confirm this by

checking the income, employment or business & other

factors Of the borrower.

4. Big Loan amount: Personal Loan is a means to fulfill

bigger loan requirement, you can take a loan ranging from

Rs. 50,000 to Rs. 20 lakh.

Basis to Compare Personal Loans

• Compare Interest Rates : Personal Loan can be compared

primarily on the basis of interest rates which vary across

banks depending on your profile which is further linked to

your occupation, salary/income, credit history etc.

The personal loan interest rate ranges from 12% to 25%,

you must go for that loan which is offering you at the

minimum rate.

• Other Charges: You should also check on the other

charges like processing fee, pre-payment penalties and

documentation fee because they increase the overall loan

cost and vary widely across banks.

. • Evaluation of various Loan offers: You should first

calculate the entire loan cost across banks which constitutes

the rate of interest & banks other charges. Evaluate offers

keeping the tenure of the loan constant & compare the rate

of interest, EMIs & other charges. This process will help

you get the best loan deal

• EMIs: EMI is the monthly equated installment which

constitutes the principal amount and EMI Calculator to

compare EMIs across banks the interest on the principal

equally divided across each month in the loan tenure. Use

our

• Tenure: Tenure is the time frame for the personal loan

payments to be paid back to the bank; it ranges from 1 year

to 5 years. If you have a longer tenure you will end up

paying more interest & will have lower EMI, on the other

hand shorter loan tenure will carry higher EMIs & the

interest amount is less. You must compare the loan offers

by keeping the tenure constant.

• Eligibility Check: Before taking a personal loan you must

know the eligibility criteria’s offered by various banks on

the basis of which they offer loans and also compare

personal loan banks. Checking the eligibility parameters

will help you find the best loan deal Check out your

eligibility by various banks.

• Turnaround Time: It becomes one of the most important

factors in evaluation of your loan application when you are

in a dire need of money. Turnaround time is the time which

banks take in processing your loan application; you must

check this parameter which varies from bank to bank.

Charges involved in Personal Loan

The Rate of interest alone should not be judged

before you finalize your application, apart from the

rate of interest, Personal Loan also constitutes other

charges levied by the lender

Which affect the overall cost of your loan & should be

considered while comparing it across banks? Following are

the lists of charges

• Processing fee: It is a fee charged by banks from the

borrowers to process their loan application; it is normally

between 1-2 percentages of the loan amount.

• Prepayment fee: Banks charge borrowers with a fee when

they pay the loan EMIs before the tenure which normally is

between 2-5% of the outstanding loan amount. 

• Late penalties: When there is a delay in paying your

monthly EMIs of your loan, banks charge a late payment

fee with your EMIs. They normally range from 2-3% of the

EMI.

• Cheque bounce charges: Banks charge between Rs. 250-

500 for every bounced cheque given for the payment of the

loan amount owing to the insufficient funds in your

account.

• Documentation charges: These are the charges for

verifying the borrower’s documents to processing the loan

application. These vary from Rs. 500-Rs. 1000.

• You should note that the above charges vary across

different banks; you should consider these charges before

choosing the personal loan as they will determine its real

costs.

Documents required in Personal Loan

The documentation process in personal loan is very fast as

against secured loans. Following documents are required by

financial institutions to process the loan application:

Identity proof

3 to 6 months Bank statements

Residence proof

Salary slip

Guarantors & their same set of documents

In case of self-employed banks require balance sheets,

profit & loss account, partnership deed & other mandatory

documents etc years..

  Personal Loan Criteria by various banks

Banks offer Personal Loan to borrowers depending on

various factors such as income, employment, continuity of

business so as to make sure that they repay the loan with

interest before the due date. The eligibility criterion of a

Personal Loan is primarily based on the work profile of a

loan seeker which is broadly divided into the following two

classes: 

1)Self-employed

2)Salaried

In addition to the above factors banks also consider other

aspects such as age, work experience, existing relationship

with the bank, repayment capacity etc.

To find your eligibility Criteria across various banks in

accordance with the above parameters; Deal4Loans has

brought in the Eligibility Criteria Check for Personal Loan

seekers.

How does the Cibil Score affect your loan application?

This a norm wherein the banks before giving Personal Loan

checks the database of all loan borrowers in the country by

the Credit Information Bureau of India (CIBIL) which is

called the Cibil Score. If there has been a default in your

loan payment; your loan application would certainly be

rejected. Your Cibil score ranges from 100 to 999, for

instance if your credit score is 100 then your loan

application might be out rightly rejected.

On other hand if it is higher say 800, then your loan

application would be processed faster & will be rewarded

with lower interest rates & discounts in processing fee &

other charges.

You can improve your credit score by repaying your loan

EMIs on time and always pay the minimum payment on

your credit card to avert from the bad credit score.

Reducing Interest Rate or Flat Interest Rate, which is

better?

The  Personal loans Interest Rates vary between 14% and

25% depending on your profile & payment ability. There

are basically two types of interest Rates offered by banks

which are

1) Reducing Balance Interest Rate

2) Flat Interest Rate

In the Reducing Interest Rate calculation method, the

interest on your loan keeps on reducing as it is calculated

on the reduced principle amount which gets reduced daily,

monthly. Quarterly or annually. Flat Interest Rate

calculation method on other hand implies that your rate of

interest remains the same & is calculated over the entire

loan period. The outstanding loan amount is never reduced

over the loan tenure.

It is always advised to take a loan at reducing balance

interest rates as the Flat rate calculation comes out to be

really expensive.

Important pointers in Personal Loan Increase your loan.

Eligibility: You can increase your eligibility of the loan

amount by clubbing your income with your spouse’s

income.

Relationships with Banks: You can get discounts on

interest rates if you take a loan from a bank that you already

deal with for your existing relationship, in this case banks

will consider your past records of credit repayments and

your saving account balance and you will be offered

discounts on the basis of your current relationship.

Cibil Score Check: You must know that your credit history

play a very important role in the acceptance of your loan

application as CIBIL keeps a record of credit history by

collecting your credit data from various financial

institutions. A decent credit score not only gives a green

Personal Loan Rate of Interest

Bank Interest Rates

Citibank

16.5%-18.5%

HDFC Bank15.5%-22%

Fullerton India19%-28%

CitiFinancial 16%-21%

SBI16%-20%

Standard Chartered Bank15.5%-22%

Signal to your loan application but also offers you lower

interest rates by the bank.

Penalties: If you think of closing your loan earlier, this

will invite the pre-payment charges levied by the bank

which are up to 5% of the outstanding loan amount. Some

banks have this norm wherein you are not allowed to close

your loan within the first six months of your loan term. You

should also know about the charges taken by the bank for

paying your EMI late.

Home Finance Home loans are provided based on

the market value, mainly estimation given by banks or the

registration value of the property. Availing various types

of house loans to suit your individual needs at the lowest

rates & easy financing can now fulfill the need for a house

of your own.

Home loan is not a one-time decision; do review the

market periodically before availing them. Today there are

unlimited numbers of banks in the country wanting to give

out Home loans. Given this scenario, it may seem easy

getting yourself a loan. But is it really??

Buyers tend to make mistakes while entering into deals,

which may not be beneficial for them, so better compare

all the variables before signing a loan agreement by

different banks. However the loan agreement should be

finalized only after reading the terms and conditions

carefully.

Asset Products

Enjoy attractive interest rates and the convenience of

doorstep service from enquiry to disbursement. The

facility to transfer your existing higher interest rate loan to

FULLERTON INDIA Bank is also available

Homes loan

Processing fees Waived

Interest rate Preferential rate of interest

Secured Loans:- A homeowner has a better chance of

borrowing a homeowner loan and securing the amount

against his home. A secured loan is because one puts up

his home as a Collateral or security against the loan of the

lender. It gives a homeowner an added advantage of

obtaining large amount loans at minimal interest rate

payable over longer period of time.

Purpose:

There are two purposes for a loan secured by debt.

In the first purpose, by extending the loan through securing

the debt, the creditor is relieved of most of the financial

risks involved because it allows the creditor to take the

property in the event that the debt is not properly repaid. In

exchange, this permits the second purpose where

the debtors may receive loans on more favorable terms

than that available for unsecured debt, or to be

extended credit under circumstances when credit under

terms of unsecured debt would not be extended at all. The

creditor may offer a loan with attractive interest rates and

repayment periods for the secured debt.

Characteristics:

1. Larger loan amounts 

Secured lenders are more willing to give big loans. If you

need a significant amount, a secured   loan  will probably be

the way to go.

2. Longer payment period.

Many secured lenders provide long payback times. This, of

course, will make your payments smaller. If you prefer to

pay low monthly amounts for a fairly long period, you may

consider a secured loan.

3. Lower interest   rates .

Because the lender has recourse in case of default, they are

able to offer lower interest rates. Once again, this will make

your payments lower and possibly make your payback time

shorter.

The following flowchart shows the secured offered under

the RMM business:

Two Wheeler Loan

Two Wheeler Product Features

Two Wheeler loan is one of the products Fullerton offers to

its customer, let’s look at the features of the Two Wheeler

product

Target Market

The target market for the Two Wheeler product includes the

following:

Salaried individuals

Self-employed individuals

Locations

Approved location as per policy

Brand and Asset Types

There are a few selected branch/models and asset type that

are covered under Two Wheeler loan. These include the

following:

Brand

• TVS

• Suzuki

• Bajaj

• Hero Honda (this includes Activa as well)

Asset Types

• Motorbikes

• Scooters

Source of Acquisition

The sources from where Two Wheeler loan can be acquired

include the following:

• Sourcing only through authorized main dealerships

(sub dealer/DSA and broker sourcing not allowed)

Branch walk-ins

• Direct marketing

• Cross sell/marketing programs

Negative profiles are same as current programs and also

negative area as

per collection and market feedback captured in zoning

Eligibility Condition

Two Wheeler Product- Various Programs Scheme Sheets for Various Programs

Now that we are aware of the features of the Two Wheeler

product, let’s look at the various programs that come under

the Two Wheeler product.

The schemes under all programs differ in terms of:

• IRR

• Interstates

• Tenure offered

Let’s look at the various programs now

Product program-Normal LTV

Product Program-Fuller LTV

Fuller LTV will be offered to only those who have income

Doc with

regular banking and average bank balance is equal to EMI

Product Program – 85% LTV Income Dox Program

In this all income document are collected (salary

slip/certificate, ITR &

banking)

Product Program – 70% LTV No income Dox Program

Features

• The target segment for this program is customers who

are unable to

provide income documents.

•

Two CPA determines the income; 75% of the CPV –based

income is

considered for CFA purpose

•

Maximum tenure is 30 months, EMI is not more than

Rs.2000 ,and

LTV is 70% vehicles ORP

Product Program -50% LTV Fast Track No Income

Dox Program

Ownership Proof Surrogate Program – Features

•

This is a track approval program in which customers need

to submit

the ownership proof

TVR is conducted case can be approved LTV up to 50%

• Maximum tenure is 18 months

Product Program – Fast Track

Customer Value proposition

As opposed to competitors, Fullerton offers the following

benefits to its customers:

• Creates new market by offering 100% finance typically

to boost the Economy Two Wheeler Segment.

• Local credit faster TAT

• Local disbursement within 48 hours from the date-of-

delivery order (DO)

• Dedicated Relationship Officer (RO)/Relationship

Manager (RM)-Relationship Based Model

• In 2& multi-branch location –dedicated branches to

service the dealer

• Convenience to customer –Present in small locations

Additional Charges

Mentioned below are some additional charge that are levied

in case of cheque swap, prepayment / preclosure, cheque

bounce and penalty:

• In all the schemes an additional 2.5% processing fee on

total loan amount and Rs.200 stamp charges are

applicable

• Cheque swap charge: Rs 500

• Prepayment charge: 4%

• Cheque bounces charge: Rs 200

• Penal charge Rs.250

Two Wheeler – Insurance Covers

Types of Insurance Covers

Let’s look at the Two Wheeler covers offered by Fullerton

Two Wheeler- Insurance covers

Fullerton offers two types of insurance covers for Two

Wheeler product

• Bajaj Allianz

• ICICI Lombard

Fullerton has tie ups with both Bajaj Allianz and ICICI

Lombard.

Sampoorna Suraksha Two Wheeler Loans

Various offers under sampoorna suraksha two wheeler

Loans

All customers opting for the Two Wheeler

Sampoorna Suraksha are covered Personal

Accident and Disability Cover of Rs 1 lack Life

Insurance Cover of Rs 25,000

Critical illness Cover of Rs10,000

All customers aged between 20 to 40 years will be

covered for the above benefits for price of Rs.1,

299.

All customers aged between 41 to 59 years will be

covered for the above benefits for price of Rs.1,

599

Critical illness Cover will not be available for all individuals above the age of years.

Product Coverage

Life Insurance Cover: In case of any unfortunate incident

(death), the sum assured proceeds will be used to clear the

outstanding loan amount. The excess amount, post

clearance of the outstanding loan amount will be given to

the customer’s nominee.

Exclusions:

Death due to suicide will not be covered during the first 12

month

Any other exclusion will be decided on medicals only.

9Critical illnesses:

The nine critical illnesses covered under the plan are

cancer, coronary artery bypass surgery, myocardial

infarction-heart attack, end stage renal failure, major organ

transplant, stroke, paralysis, and heart value replacement

surgery and end stage liver disease. The sum assured will be

paid on occurrence of any of these illnesses.

Exclusions:

Pre –Existing condition

Any critical illness discovered within 90

days of inception of the policy

Diagnosis after end of the policy period

If the advice/recommendation for

hospitalization and post hospitalization domiciliary

treatment and the period therefore is not evidenced

by a medical certificate issued by the attending

doctor

For any period of hospitalization and or the

post-hospitalization domiciliary treatment which

may extend beyond the expiry date of period of

insurance hereunder

Accidental Death Cover:

The sum assured will be paid when the death of the insured

person is within a period of twelve months from the date of

bodily injury, and such bodily injury is the sole and direct

cause of the insured person.

Permanent Total Disability:

The sum assured will be paid in case of total disability, only

if the disablement result in inability to remain gainfully

employed. it covers bodily injury resulting solely and

directly from accident, caused by external, violent, and

visible means . if such injury shall within twelve months of

its occurrence be the sole and direct cause of the total and

irrecoverable loss of

Sight of any one eye or both eyes or of the actual

loss by physical separation of two entire hands

One foot or both feet

One entire hand and one entire foot

One entire hand

Exclusions:

Death from intentional self-injury, suicide or

attempted suicide

War and acts of terrorism

Whilst under the influence of intoxicating liquor or

drugs

Directly or indirectly caused by venereal diseases or

insanity

Directly or indirectly caused by contributed to or

aggravated or prolonged by childbirth or pregnancy

or in consequence thereof

Engagement in dangerous activities

Mental disorder or psychosomatic dysfunction

Permanent Total Disability resulting from any injury

,sickness ,or disease for which medical care,

treatment, or advice was recommended by or

received from a doctor or from which the insured

person suffered or which was present before the

commencement of the period of insurance

Difference b/w secured

loan and unsecured loan

You have decided to push the boat out and you decide on a

large purchase, which requires a loan to pay for it. And with

all the advertising on TV and in newspapers for secured

loans, unsecured loans etc it leaves you with a dilemma on

what type of loan will be best for your purchase and wallet.

So, what are the differences and what are the pros and cons

of each one.

Secured Loans

This is a loan that is secured on your property. The reason a

lender will want to secure the loan on your property is that

they want some form of collateral should you not be able to

pay your loan back. So think of these loans in a similar way

to your mortgage which is also a big loan secured against

your home. As a result the lending companies will always

make it clear with the following statement:

"THINK CAREFULLY BEFORE SECURING OTHER

DEBTS AGAINST YOUR HOME. YOUR HOME MAY

BE REPOSSESSED IF YOU DO NOT KEEP UP

REPAYMENTS ON A MORTGAGE OR ANY OTHER

DEBT SECURED ON IT"

The main advantage of a secured loan is that you will be

able to borrow larger amounts of money and also benefit

from lower interest rates than unsecured loans.

As the loan is borrowed against a property it is only open to

homeowners and tenants cannot apply.

Unsecured Loans

These types of loans are the complete opposite to secured

loans in that you don't need to put up your house as

collateral. As a result most lenders will only allow you to

borrow up to large amount although depending on your

credit history some lenders may allow you to borrow up to

the same amounts as a secured loan.

The interest rates on an unsecured loan are also higher and

can be as much as 10%. So the repayment amount for a

RS10,000 secured loan compared to a RS10,000 unsecured

loan can be significantly lower.

Unsecured loans are also available to Tenants, which makes

the demand for them to be much higher.

So what type of loan should you try? As you can tell from

the above it depends really on whether you are a

homeowner or not and whether you want to take the risk of

securing a loan against a property. However if you want a

loan in large amount then you may have no option but to

take out a secured loan if you are a homeowner.

Armed with this information you should make a

decision based on the above factors along with whether

you can make the repayments ir-regardless of what type of

loan you try. Not keeping up with repayments on either

type of loan will give you a bad credit rating for the future

so think carefully before you apply and don't borrow any

more than you can afford.

Home Equity Loans:- A home equity loan (sometimes

abbreviated HEL) is a type of loan in which the borrower

uses the equity in their home as collateral. These loans are

useful to finance major expenses such as home repairs,

medical bills or college education. A home equity loan

creates a lien against the borrower's house, and reduces

actual home equity. Home equity loans are most

commonly second position liens (second trust deed),

although they can be held in first or, less commonly, third

position. Most home equity loans require good to

excellent credit history, and reasonable loan-to-value and

combined loan-to-value ratios. Home equity loans come in

two types, closed end and open end. Both are usually

referred to as second mortgages, because they are secured

against the value of the property, just like a traditional

mortgage. Home equity loans and lines of credit are

usually, but not

always, for a shorter term than first mortgages. In the

United States, it is sometimes possible to deduct home

equity loan interest on one's personal income taxes.

Difference between a home

equity loan and

Home Equity Line of Credit

A HELOC is a line of revolving credit with an adjustable

interest rate whereas a home equity loan is a one time lump-

sum loan, often with a fixed interest rate.

This is a revolving credit loan, also referred to as a home

equity line of credit, where the borrower can choose when

and how often to borrow against the equity in the property,

with the lender setting an initial limit to the credit line based

on criteria similar to those used for closed-end loans. Like

the closed-end loan, it may be possible to borrow up to

100% of the value of a home, less any liens. These lines of

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

interest rate. The minimum monthly payment can be as low

as only the interest that is due.

Typically, the interest rate is based on the Prime rate

plus a margin. When considering a loan, the borrower

should be familiar with the terms recourse and non recourse

loan, secured and unsecured debt, and dischargeable and

non-dischargeable debt.

US traditional mortgages are usually non recourse loans.

"Non recourse debt or a non recourse loan is a secured loan

(debt) that is secured by a pledge of collateral, typically real

property, but for which the borrower is not personally

liable."[1] A US home equity loan may be a recourse loan for

which the borrower is personally liable. This distinction

becomes important in foreclosure since the borrower may

remain personally liable for a recourse debt on a foreclosed

property.

Home equity loans are secured loans. "The debt is thus

secured against the collateral — in the event that the

borrower defaults, the creditor takes possession of the asset

used as collateral and may sell it to satisfy the debt by

regaining the amount originally lent to the borrower."Credit

card debt is an unsecured debt such that no asset has been

pledged as collateral for the loan. Using a home equity loan

to pay off credit card debt essentially converts an unsecured

debt to a secured debt.

When deciding upon a type of loan, the borrower should

also consider if the debt is dischargeable in bankruptcy. For

instance, US student loans are "practically non-

dischargeable in bankruptcy"

Home equity loan fees

A brief list of fees that may apply home equity

loans:

Appraisal fees

Originator fees

Title fees

Stamp duties

Arrangement fees

Closing fees

Early pay-off fee

Surveyor and conveyor or valuation fees may also apply to

loans but some may be waived. The survey or conveyor and

valuation costs can often be reduced, provided you find

your own licensed surveyor to inspect the property

considered for purchase.

Appraisal fees:- Charges payable to

a qualified appraiser for estimating the market value of

a property, as a fixed fee or one based on a percentage of

the estimated value.

Originator fees:-  A fee related to establishing your loan.

The exact use can be unclear, but the fee ultimately

compensates your lender or broker for putting your loan in

place.

Examples:

The average home buyer can expect to pay between 0.5% to

1% for origination fees

Title fees:- Buying or selling a home comes with closing

costs on both sides. Most commonly, these closing costs

are referred to as title fees. While some closing costs will

be incurred from a lender, when selling a home, the

majority of the fees for a seller will come from the title

company. Title companies keep on file all information

about a property, its boundaries and any liens or negative

information attached to a home or piece of land

Stamp duties : - Stamp duty in India is a tax, much like the

sales tax and income tax that are collected by the

Government. All such taxes must be paid in full and on

time. If you make delay in the payment then you have to

face the penalty. Penalty involves fine or even

imprisonment. If you want to produce any instrument or

document in the court, it needs to be done on the stamp

paper only then it is considered valid and can be used as an

evident. The court cannot admit instruments or documents

that are not properly stamped as evidence

Arrangement fees:- The arrangement fee is charged

to cover administration and primarily reserving the funds

for fixed rate and/or discounted rate mortgages. This fee

may be paid separately added to the mortgage or in rarer

cases taken from the mortgage loan.

Arrangement fee is commonly added to the spread in Euro

syndicated and syndicated loans.

Our Vyapaar branches provide customized products

and solutions, especially designed keeping in mind the

unique circumstances and requirements of this segment .

India has a large self-employed population running small

and basic businesses. When these businesses need financial

support to grow and realize their full potential, the limited

access to organized finance becomes a big retardant in their

growth. For a country with India's depth, the next level of

growth will come only if basic businesses (the mass market)

graduate to the next level of empowerment and self-

sufficiency.

Fullerton India Vyapaar strives to improve

the business and lives of the small business community.

Our business is focused only on small establishments with

turnover of less than Rs.25 Min per annum.

The key elements are as follows:

The business envisages setting up branches with

employees dealing directly with the customers.

This offering has elicited an enthusiastic response

from our customers as it gives higher degree of

transparency and faster value delivery.

The relationship model includes a deep assessment of a

customers' business resulting in an omnibus facility with a

flexible combination of usage in parts, flexibility between a

combination of short and long tenures, and from unsecured

to partially secured and fully secured facilities. The facility

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

capacity, as well as proposed expansion plan.

A Relationship Officer is assigned to address incremental

product needs, as well as for service requirements, through

a process of continuous engagement. The business strives

to deliver lifelong financing support and regular facility

enhancement, based on business growth.

We understand that smaller customers do not create a

distinction between personal borrowing and business

borrowing; the facility is designed to cover both needs.

Businesses are built on people, and the company hires

relevant local talent to serve the market, so that there is a

connect between the employees and customers.

The business wishes to bring a full service

proposition encompassing loans and liabilities to the small

business owners. Besides the variety of loans, life

insurance has been introduced which will also be

delivered through the branch based Relationship Officers.

The business uses advanced technology tools to record

customer history, and leverage track record to enhance

credit exposure in line with the customer business cycle.

This ensures continuous support through seasonal peaks.

Value to customer

Simplicity - Easy to understand, simple process and

standard documentation.

 Speed - Average turnaround time in loan processing is two

days.

 \Neighborhood financing - Branches are located in the

centre of business hubs convenient from an access and

timing perspective 

One Stop Shop - For all business and personal financial

needs 

Chareges for Two Wheeler:-

Two wheeler Charges

Processing Fees Waived

Pre approved limit(customers

having relationship > 6 months)

Up to 96% of road value

Interest Rates 1% rate lower than existing rates

Documentation No Income Proof required.

Only Identity proof required.

Special Offer Special offers with manufacturers from time to

time

Priority Processing Yes

Charges for Auto loan:-

Auto Loan

Enhanced Loan Limits Loan amount up to 95 % of Ex-

showroom value on new cars.

90% of the valuation amount for

used car loans.

Loans tenor up to 5 years.

Repayment in 60 installments.

7 years repayment option on

select models.

Documentation (for customer having

relationship > 1 year)

Interest rates

No income documents required

Preferential Rate of Interest

Special offers FULLERTON INDIA Bank enjoys

preferred financier status with 12 leading

manufacturers and has special tie- ups

with most manufacturer-dealers to ensure

the highest quality service to you.

Priority Processing Yes

Key components of the Company

process:

Some of the key advantages of entering into

a relationship with us are:

Our biggest proposition is our customer focus, both,

in product design/ customization and service. As an

organization, we are structured not around products

but along customer segments. We have separate

verticals for the Salaried Individuals (Parivaar) and

for Small sized shop owners & Entrepreneurs

(Vyapaar).

This model lends itself to better understanding of

our customers' financial situation and for a better

products offering to them. With this holistic

understanding of our customers, we are also able to

combine secured and unsecured products and

structure the loan in a manner which is ideally suited

to meet individual customer requirements.

For the first time in India, our own, company

employed Relationship Officers service the needs of

the customers. There are no agents or other

intermediate, coming in between the customer and

us. These Relationship Officers are the end-to-end

solution providers and act as a single point of

contact" for all Product, Process and Service related

needs of the customer.

Our branches do business only within a 5 km radius.

Our customers' office or residence has to be within

the branch coverage area. This closer proximity of

our customers to our branches ensures better under

standing of their local environment and immediate

situation.

We participate actively in serving the community in

and around the vicinity of our branch. Our interest

in the locality extends beyond just a business

relationship. We believe in participating in other

aspects of development of the community as well.

Loan Disbursement process of Fullerton

India

MAJOR CHALLENGES OF THE

ORGANIZATION

Challenges in the growth path

The finance industry is going to observe polarization of the

players

For survival, the Housing Finance Institution should have-:

Good investment in people and system

Should have strong Business Origination process in

place

Excellent Credit Appraisal Skills

Monitoring the Systems in place

Strong Collection mechanism in place

HFI’s survival can be at stake

PART - 2

INTRODUCTION OF PROBLEM

FULLERTON INDIA offers wide variety of Loans

Products to suit your requirements. Coupled with

convenience of networked branches and facility of E-

channels like Internet, FULLERTON INDIA Bank brings

loan at your doorstep. Select any of our loan product and

provide your details online and our representative will

contact you for getting loans.

The No. 1 Home Loans Provider in the country,

FULLERTON INDIA Bank Home Loans offers some

unbeatable benefits to its customers - Doorstep Service,

Simplified Documentation and Guidance throughout the

Process.  It's really easy!

The NO 1 financier for car loans in the country. Network of

more than 1500 channel partners in over 780 locations. Tie-

ups with all leading automobile manufacturers to ensure the

best deals. Flexible schemes & quick processing. Hassle-

free application process on the click of a mouse.

   Range of services on existing loans & extended products

like funding of new vehicles, refinance on used vehicles,

balance transfer on high cost loans, top up on existing

loans, Extend product, working capital loans & other

banking products. Farm EquipmenAvail attractive

schemes at competitive interest rates from the No 1

Financier for Two Wheeler Loans in the country. Finance

facility up to 90% of the On Road Cost of the vehicle,

repayable in convenient repayment options and comfortable

tenors from 6 months to 36 months. Ride home on your

Dream Two Wheeler with our hassle free finance.

Preferred financier for almost all leading tractor

manufacturers in the country. Flexible repayment options in

tandem with the farmer's seasonal liquidity. Monthly,

Quarterly and Half-yearly repayment patterns to choose

from. Comfortable repayment tenures from 1 year to 9

years.

OBJECTIVES OF STUDY

To find the preferences of customer regarding

various types of loan:

This objective focused on the judgment of customer

preferences regarding various types of loan provided by

Fullerton India such as Secured Loan, Unsecured loans and

Home Equity Loan.

To know the amount of loan generally availed by

the respondents: This objective include the study of

the amount of loan which is generally borrowed by

the customers

To study the Advertising effectiveness in creating

awareness among the public: This objective will

help to judge the effectiveness of advertising

strategy used by Fullerton India to create the

awareness among the potential customer about the

products and services offered by the company.

To study the satisfaction level of customer regarding

different loans schemes provided by Fullerton India

Credit Company Ltd.

STUDY LITERATURE OF

Products of the Organization:

Unsecured Personal Loans

Secured Loans

Home Finance

Home Equity Loans

Insurance

Competitors:

INDIABULLS Fin. Ser. Ltd

Mahindra & Mahindra Fin.

Induslnd Bank Ltd.

TMFL

STATEMENT OF HYPOTHESIS

A hypothesis is a specific statement of prediction. It

describes in concrete terms what you expect to happen in

your study. Not all studies have hypothesis. There is no

formal hypothesis, and perhaps the purpose of study is to

explore some area more thoroughly to develop some

specific hypothesis or prediction they can be tested in future

research.

Two kinds of hypothesis, these are as follows

Alternative hypothesis, usually the hypothesis we support

and the hypothesis that describes the remaining possible

outcomes are termed the null hypothesis.

Alternative hypothesis is denoted from HA or H1

Null Hypothesis is denoted from HO or H0.

For this study researcher found general or alternative

hypothesis suitable and according to researcher the

alternative hypothesis for this study is:

According to research to performance appraisal in

FULLERTON INDIA, the hypothesis is mention below:

Method of performance appraisal is faire enough.

Performance appraisals by experts or staff

managers are more accurate than appraisal done

by peer group.

Monthly performance appraisal keeps employees in

discipline and dedicated towards their jobs.

4. Performance appraisal has considerable impact on

satisfactions of employees.

Scope of study

In present scenario with the growing complexities of

the industrial society, work is simply a means of

earning a living this appears to be an over

simplification. Work serves many other functions

for an Individual. An individual sense of well being,

of doing something worthwhile, of having some

considerations, may be so compulsive that man may

continue to work even if they are not pressed by

Economic needs.

Performance appraisal provide needful helping for

the following:

Status

Job Security

Feelings of Recognition

Feeling of Achievement

Feeling of Possible Growth

Feeling of Responsibility

Group Feelings

Feeling of Interest in the performance of Job.

Feeling of Increase Status

Performance Effects

Change in rate of output.

Change in Quality of Work

Effects on Interpersonal Relationships

Research design

Methodology is the study of methods it deals with the

philosophical assumption underlying the process of

research.

A method is specific technique for data collection under

certain philosophical assumptions.

The practical work that lies between the theoretical

framework and practical analysis.

MOTIVATION IN RESEARCH

Desire to get a MBA degree as well as

research certificate from the respected

divisions.

Desire to face the challenge in solving the

unsolved problems i.e. to help Fullerton

India in performance appraisal.

Desire to get intellectual joy of doing some

creative work in Fullerton India.

Desire to be of service to society i.e. making

other banking sector to realize use of

performance appraisal.

DATA PRESENTATION:-

There are two basic approaches to research via, quantitative

approach and qualitative approach. The former involves the

generation of data in quantitative form, which can be

subjected to regress quantitative analysis in a formal and

rigid fashion. This approach can be further sub classified

into inferential, experimental and simulation approaches to

research.

This project research is based on qualitative approach

where research is concerned with subjective assessment of

attitudes, opinions and behavior of the employees, the

knowledge they have related with their job or having extra

knowledge which will be helpful for the organization.

Basically two type of method

1- Primary data

2- Secondary data

Primary Data

Primary Data are those, which are collected afresh and for

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

We collect primary data during the course of doing

experiments in an experimental research but in case we do

research of the descriptive type and perform survey s

whether sample survey or census surveys, then we can

obtain primary data either through observation or through

personal interviews. In other words, means there are several

methods of collecting data.

Primary data is the nerve of any research, on the basis of

which one can explore the realities hidden insight. In this

present research, on the basis of the nature of this research

structured mixed questionnaire have been formulated by

various item analysis. Questionnaires have been sending

through e- mail to various places to employees for response.

Secondary Data

Analysis of secondary data includes the review of the news

and articles published in newspaper or magazines regarding

Fullerton India Credit Company Limited.

Article 1

Fullerton India Credit adopts Newgen’s BPM solution

Newgen Software Technologies Limited announced the

successful implementation of its BPM solution (based on

Newgen Omni Flow™) at Fullerton India Credit Company

Limited (FICCL).

NEWGEN SOFTWARE Technologies Limited, a

market leader in Business Process Management (BPM) and

Enterprise Content Management (ECM), with impeccable

track record of implementing mission-critical workflow and

document imaging solutions, announced the successful

implementation of its BPM solution (based on Newgen

Omni Flow™) at Fullerton India Credit Company Limited

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

Banking Finance Companies(NBFC) in the country has

taken a steep target of setting up a total of 800branches in

the country by the end of 2009 (Till now, the company has

setup over 650 branches).

Speaking of Newgen’s solution that has helped the

FICCL in gearing up to meet its targets, Pramod

Krishnamurthy, executive vice president, technology,

FICCL said, “One of the key factors that has accounted for

Fullerton India’s rapid growth and ramping up of operations

is the excellent support provided by the Newgen team.

Their state of the art workflow routing and imaging system

(Omni flow) has met our dynamic requirements very well;

it has enabled us to provide high level of customer service

internally and externally. We look forward to a continued

long-term association with them as a valuable partner in our

growth.”

Newgen’s implementation at FICCL

covers the entire gamut of processes including loan

origination and booking, collections and prospect tracking,

loan against gold and early warning processes. FICCL

currently has more than 350 branches across the country.

Number of concurrent users (users across the branches who

can be simultaneously logged into the system), which is

already over 900, is expected to grow up to 1500 in near

future.

Speaking of the successful implementation at FICCL, Punit

Jain, vice

president, sales and marketing, Newgen Software

Technologies, said, “In

line with our objective to be an end-to-end BPM solution

provider, our solution has offered FICCL continuous

process improvement, rapid results, visibility and control.

With this implementation, we are glad to support FICCL in

reaching its steep

targets and establishing a strengthened network in India.”

Newgen Omni Flow™ 5.0 is a platform independent,

scalable BP solution that enables automation of

organizational business processes. It is a complete software

solution to design, deploy, modify, monitor and manage

business processes, involving minimal programming effort,

and is easily deployable thereby enabling enterprises to

streamline their business processes for greater efficiencies.

Built using open technologies Newgen Omni Flow™ has

seamless integration abilities allowing it to be introduced

into almost any existing IT infrastructure. About Fullerton

India Credit Company Limited Fullerton India Credit

Company Limited, a fully owned subsidiary of Fullerton

Financial Holdings, Singapore, is the fastest growing

financial services company in India with an equity capital

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

follows a relationship led, community based business model

with close proximity and engagement with the customer to

effectively reach out to them. In a short span of time the

company has disbursed over 1800 core rupees, opened more

than 400 branches spread across 150 locations and has more

than 8000 employees on its rolls.

Newgen Software Technologies Limited is a

market leader in Business Process Management (BPM) and

Enterprise Content Management (ECM), with impeccable

track record of implementing mission-critical workflow and

document imaging solutions. We have a global footprint,

with an Installation base of more than 700 customers in

over 25 countries. More than 40 of our customers are

Global Fortune 500 companies. Having domain expertise in

industry verticals such as Banking, Financial Services,

Insurance, BPO, Telecom, e-Governance and

manufacturing among others, we are known as one of the

fastest implementers of BPM solutions in the world. The

sales and support offices span across major cities in Asia,

North America, Europe, Africa and the Middle East.

Winner of several awards such as ‘Frost and Sullivan’s

Market Leadership Award for Document Management and

Workflow Software & Services for2006’ and

‘Distinguished Application Product Company’ by

NASSCOM ,Newgen Software is an ISO 9001:2000

certified and CMM Level 4 company

Review of Article 1:

The first review based on the article published in web site

BPM.com. This article talks about the adoption of Newgen’s

BPM solution for their Business process management.

NEWGEN SOFTWARE Technologies Limited is a market

leader in Business Process Management (BPM) and Enterprise

Content Management (ECM), with impeccable track record of

implementing mission-critical workflow and document imaging

solutions, has announced the successful implementation of its

BPM solution (based on Newgen Omni Flow™) at “Fullerton

India Credit Company Limited”. Fullerton India has taken this

step to achieve its target of setting up a total of 800 branches in

the country by the end of 2009 (Till now, the company has

set up over 650 branches).

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

targets and another importance of this step is rapid growth. It also

enables Fullerton India to provide high level of customer service

internally and externally .Newgen’s implementation at FICCL

covers the entire gamut of processes including loan origination

and booking, collections and prospect tracking, loan against gold

and early warning processes.

Article: 2

Fullerton India Credit Company Limited (FICCL) has

bagged the Gold award for Excellence in Business Process

Management (BPM)

Fullerton India Credit Company Limited (FICCL) has bagged the

Gold award for Excellence in Business Process Management

(BPM) and Workflow with Newgen Software’s BPM solutions.

The company has bagged the award for the Pacific Rim region.

The Global Awards for Excellence in BPM and Workflow

recognizes user organizations that have demonstrably excelled in

implementing innovative business process solutions to meet

strategic business objectives. The awards are given for five

geographical regions: Europe, Middle East Africa, North

America, Pacific Pacific Rim, and South & Central America with

each region receiving one Gold and one Silver Award. In order to

streamline the workflow and imaging process, Fullerton

deployed the BPM solutions provided by Newgen. The

implementation by Newgen Software at FICCL covered the

entire gamut of processes including loan origination and booking,

collections and prospect tracking, loan against gold and early

warning processes. FICCL currently has more than 825

branches across the country.” We are honored to have been

presented with this award. One of the most important factors

which contributed to our success has been the ease with which

business process change has been enabled through Newgen’s

Omni Flow. The solution has enabled us to do this quickly and

economically”, said Pramod Krishnamurthy, executive vice

president, technology ,FICCL.Speaking of the successful

implementation of their solution Rajvinder Kohli, VP—Sales,

Newgen Software Technologies, said, “The recognitions a

reflection of our commitment towards our customers to provide

them with best services. The deployment of Omni Flow BPM

Suite at Fullerton India Credit has created history by enabling

them to open more than 800branches in just two years. The

solution provides total automation for Loan Origination, CRM

and Collection processes, including implementation of a unified

interface that integrates four different core applications

seamlessly.” About the awards The annual Global Awards for

Excellence in BPM and Workflow is co-sponsored by WFMC,

BPMFocus.org and BPM.com and now in their 15thyear. While

judging the winners, particular attention is paid to

implementations that have showed processes extending beyond

the corporate boundaries to support customers, suppliers, trading

partners and more. There are five geographical regions: Europe,

Middle East Africa, North America, Pacific Pacific Rim, and

South and Central America. Each region receives one Gold and

one Silver Award.

About Newgen Software: Newgen Software Technologies

Limited is the market leader in Business Process

Management (BPM) and Document Management System

(DMS),with a global footprint of about 700 installations in

over 30 countries .More than 100 of these implementations

are large, mission-critical solutions deployed at world's

leading BFSI, BPO and Fortune Global 500companies.

Newgen is recognized by distinguished analyst firm IDC in

its exclusive report “Newgen Software: Global Leader in

Business Process Management and Document Management

Solutions.” Winner of prestigious awards, such as CNBC-

TV18 “Emerging India Award 2008”, Frost and Sullivan's

“Market Leadership Award for Document Management

System and Workflow Software & Services” and”

Distinguished Application Product Company” by

NASSCOM, Newgen Software is an ISO 9001:2000, ISO

27001 certified and CMM Level 4company.

Review of Article: 2

Second Review is based on the article published in similar

web site i.eBPM.com. This article reveal about the gold

award won by Fullerton India Credit Company Limited

(FICCL) for Excellence in Business Process Management

(BPM) and Workflow with Newgen Software’s BP

solutions. The company has bagged the award for the

Pacific Rim region. This Awards for Excellence in BPM

and Workflow recognizes user organizations that have

demonstrably excelled in implementing innovative business

process solutions to meet strategic business objectives. The

awards are given for five geographical regions: Europe,

Middle East Africa, North America, Pacific. Pacific Rim,

and South & Central America with each region receiving

one Gold and one Silver Award

ANALYSIS OF DATA:-

The following information contains the data interpretation

of the questionnaires. The respondent’s responses for the

questions have been interpreted and a finding has been

made based on the respondents responses

.

Table 1: Age of the Respondent

Interpretation: - The respondent of research comprises of

30% of 18-28

Years, 26% of 28-38 years, 24% of 38-50 years and 20% of

more than 50years. This classification of age group is

required to know the perception of person for taking loan at

different stage of life. Generally Fullerton India provides

loan to salaried individuals and new entrepreneurs, hence

the company should focus on respondents’ b/w 18-38 yrs of

age.

Table 2:- Annual Income of the Respondent

Interpretation: - Second classification of respondent is

based on the basis

Of their annual income. This classification is done to know

that mostly which income level people have more demand

for loan. This research is targeted to know the demand of

loan by salaried individual and small entrepreneurs. The

company should focus on respondents with an annual

income of 1-5 lakhs in order to avoid delinquency.

Table 3:- Occupation of the Respondent

Occupation Percentage

Government Employee 30.0%

Private Employee 25.00%

Businessman 45.0

Interpretation:- The third important consideration which

helps to identify

That whether the respondent is salaried individual or small

entrepreneurs is occupation. The occupation comprises of

Government Employee, private employee that fall into

salaried individual category and third component of

occupation is Businessman which indicates small

entrepreneurs.

Table 4:- From which source you knew about the various

schemes of Fullerton India?

Interpretation: - This question is asked in order to know

the effectiveness.

Of the advertisement strategy adopted by Fullerton India.

The result found by the survey shows that most of the

customer knew about the various loan schemes through

news paper & internet. Therefore company can make more

use of the news paper and internet to increase its customer

base. Secondly the company also getting the benefit of its

existing customer to advertise its product, because 24% of

customer knew about the schemes of Fullerton India

through their friends who had taken loan from

Fullerton India. Fullerton India is not making use of

Television media frequently because it is very costly;

therefore resultantly it contributed only 12% in creating the

awareness among the customer regarding various schemes

of Fullerton India

Table 5:- Table of Customers having loan or no

Interpretation:-The answer to the above question reveals

the fact.

Whether the respondents have taken some kind of loan from

any source or not. The findings reveal that 70% of the

respondents have taken loan while30% have not taken any

kind of loan.

Table 6:- How much respondent having loan from other

companies?

Interpretation:-The findings reveal that out of the total

respondents

Having loans, 70% have taken one type of loan, 20% have

taken two types of loan while 10% have taken more than

two types of loan. This fact has to be considered by the

company while accessing whether to provide loan to the

respondents or not

Table 7:- How much loan amount that you have taken?

Interpretation:-The above findings reveal that out of the

respondents

Having loan, 35% have taken loan of 50,000 or less, 45%

have taken loan from 50,001 to 1, 00,000 and the remaining

20% have taken a loan of 1,00,000 and above. This

parameter gives more knowledge to the company regarding

the probability of default by the respondents and should be

given more weight age by the company compared to the no.

of loans taken by the respondents while deciding whether to

provide loan to the respondent or not

Table 8:- Type of loan Customer has?

Interpretation: - The finding reveals that 50% of the

respondents have

Taken personal loan, 20% have taken mortgage loan, 15%

have taken home loan, and 10% have taken two wheeler

loans while remaining 5% havetaken other type of loans.

Table 9: - Duration of period which the respondent prefer

for paying the

Loan amount?

Interpretation: - The finding reveals that most of the

respondents (87%) want to take only short term loan up to

18 months since short term loan carries a comparatively low

rate of interest.

Table 10:-Are you satisfied with the rate of interest charge

by Fullerton

India?

YES NO

67% 33%

Interpretation:- The Fullerton India charges different rate

of interest for

Different programs for two wheeler loans. Therefore there

are some customers who are not satisfied with the rate of

interest. The findings suggest that 67% customers are

satisfied with the rate of interest charging by Fullerton India

and only 33% are unsatisfied. But the company should

review its interest rates from time to time in order to be

competitive in the market and to improve customer

satisfaction continually

Findings

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

have taken loan under parivaar scheme and only 38% taken

loan under Vaypaar scheme. Therefore it shows that

Fullerton India is favorable in short term loan segment

which is provided by Fullerton India under Parivar scheme

and especially for salaried individual.

The above study depicts that most of the

respondents availed loan of amount ranging from Rs

.2-5 Lakh .Therefore, if Fullerton India introduce

more scheme under this range to meet the different

demand of customers

The above study depicts that mostly the respondents

preferred the loan having repayment period from 2-

5.Therefore the company needs to add some more

benefits to the long term period loan so that the

demand of long term loan will increase which

increase the profit of company, because as the

repayment period is long than the source of income

(Interest)is sustain for long period.

Most of the people are satisfied with the rate of

interest charged and by Fullerton India

Fullerton India mostly disbursed loan as secured

loan, this will provide the safety and it will avoid the

increasing number of Non-performing asset and bad

debts.

Customers are the main source of new ideas, and

thus their suggestions are vital for every

Company .Majority of the respondents are satisfied

with the services of their present bank so they do not

want any change in the rate of interest and services,

but no one can satisfy everyone at same time,

Fullerton having respondents who are not satisfied

with rate of interest

Suggestions

The following suggestions have been formulated on the

basis of above study. These set of suggestions might help

the Fullerton India to improve the quality of service

regarding loan provisions and simultaneously these

suggestions help the Fullerton India to tackle the

competition prevailing in the market, thereby achieving

success in the future.

Firstly Fullerton India should create awareness

among the common public about the various loan

schemes which they are providing.

Provide management with information to monitor

delinquency.

We have to consider about the living standard of the

customers.

Trade of the customer should be analyzed and

residential information also be strongly analyzed.

Defining acceptable level of delinquency.

In order to create awareness regarding the loan schemes an

electronic medium of media can put to use to advertise

about the schemes and services provided by Fullerton India.

This would help to change the attitude of the people

regarding Fullerton India.

FICCL may adopt somewhat lenient procedure

regarding norms for eligibility to two wheeler loan

facility to attract more customers.

FICCL may provide attractive gift schemes from

time to time inorder to enhance customer

satisfaction and to deal with the prevailing

competition.

Fullerton must consider all the products in the two

wheeler segment for providing loan to fully tap the

available market potential.

Variable late payment charges should be levied by

the company in order to provide greater customer

satisfaction and increase customer loyalty among

the customers who make the payment generally on

time.

The interest rates should be regularly revised in

order to attract more and more customer. Some new

plans should be introduced regularly to cater the

special needs of customer which provides them

more offerings and benefits.

New strategies should be made by the company

which enables them to face the competition with

other private leading Non Banking Financial

companies.

The company needs to focus more on providing

value added services to its customer. This will create

Brand loyalty among customer which indirectly

attract more and more customer because a satisfied

customer will always bring more new customers.

The management of company should be more

efficient which enables in quick processing of the

task regarding loans disbursement and loan

collection. This will enable efficiency in the

working capital cycle of the company

Company’s Offerings:

Fullerton India Credit Company Limited offers

a range of financial products and solution, tailor-made for

the Salaried Individuals (Retail Mass Market) and the Small

sized Shop-owners and business man. Entrepreneurs

(Commercial Mass Market). “Fullerton India Credit

Company Limited is present through branches, separately

for these two business segments. Fullerton India Credit

Company Limited branches are always only a short distance

away from Fullerton India Credit Company Limited

customer’s workplace or home.

Fullerton India Credit Company Limited service Fullerton

India Credit Company Limited customers only through

Fullerton India Credit Company Limited. Each of Fullerton

India Credit Company Limited customers are assigned a

dedicated Relationship Officer who acts as the

Primary contact point for all the financial requirements of

Fullerton India Credit Company Limited customers.

Limitation

of Liability

.1- These terms and conditions shall be governed by and

construed in accordance with Indian law. In the event of

disputes, controversies, differences of opinion and claims

arising out of or in connection with Fullerton India

Privilege Program or in any way relating hereto or any

term, condition or provision herein mentioned or the

construction or interpretation thereof or otherwise in

relation hereto, Fullerton India and Member shall first

endeavor to settle such differences, disputes, claims or

questions by friendly consultation and failing such

settlement, the same shall be referred to Arbitration of sole

Arbitrator, to be appointed by Fullerton India for

determination of specific issues/disputes. Such arbitration

shall be held in accordance with the Arbitration and

Conciliation Act, 1996 or any statutory modification or re-

enactment thereof for the time being in force and shall be

held in Mumbai and be conducted in the English language.

Subject to the provisions of this clause, for matters referable

to civil court, Fullerton India and each Member submit to

the exclusive jurisdiction of the competent courts at

Mumbai.

2-The Fullerton India Privilege Program shall be subject to

usual force majeure events and on occurrence of such event,

the scheme shall deem to be automatically withdrawn.

3-. All communication /notice with regard to this scheme

should be addressed to:

4- In all matters relating to the Fullerton India Privilege

scheme, the decision of the Company shall be final and

binding in all respect.

5- The Fullerton India Privilege Program is not available

wherever prohibited

Summary conclusion:-

A charge applied by the company is low which is very good

for the company. It helps to make the company work better

and show good result. This will help the company grow

financially The analysis suggests that Fullerton will benefit and

recover its investment in a shorter time compares to its original

plans as the company fulfill its agenda to roll out the system to

more branches in coming years opening of more branches will

help company to connect to the people more easily . the growth

rate of company is good as compare with the other finance

company .company is also planning to make paper less so that its

customer feel more easy to apply for the loan Quick View tool

helped Fullerton India users to view the most current

information which enables them to focus on areas requiring

immediate attention. “It is easier for the users to see the

data graphically and slice and dice information quickly. Its

intuitive user-interface, ease of use and

Flexible features helped them to drill down the data and

make easy access to all book keeping records in a summary

form Fullerton plans to deliver additional products and services

via

Biometric solutions, will likely increase the benefits of the product

delivery system further for both Fullerton and the end customers

PART -

3

BIBLIOGRAPHY

Research Methodology by Kothari

(C.R. “:

Methods and Techniques”)

Marketing management by Philip

Kotler

Business world

Websites referred:

• http://www.emeraldinsight.com

• www.icicibank.com

• www.hdfcbank.com

• www.fullertonindia.com

• www.fullertonindia.com

Annexure:-

QUESTIONNAIRE

Respected Sir/Madam,

I am a student of R.K.G.I.T. (GZH.) As per my course

curriculum, I am doing the market research on “business

loan and personal loan disbursing loan and sales”. So, I

need your valuable view for the questions given below. I

shall be grateful to you.

Name:-________________________

Address:-________________________

________________________

________________________

1 .Age of the Respondent?

A. 18-28yrs

B. 28-38 yrs

C. 38-50 yrs

D. More than 50

2. Annual Income of the Respondent?

A. Below 1 Lakh

B. 1-2 Lakh

C. 2-5 Lakh

D. 5 Lakh and above

3. Occupation of the Respondent?

A. Government Employee

B. Private Employee

C. Businessman

4. From which source you knew about the

various schemes of Fullerton

India?

A. News Paper

B. Television Media

C. Internet

D. Friends

5. Do you have a loan?

A. Yes

B. No

6. How many Loans do you have?

A. One

B. Two

C. Two and above

7. How much loan amount you have?

A. Up to 50,000

B. 50,001 to 1,00,000

C. 1,00,001 and above

8. Which loan do you have?

A. Personal Loan

B. Mortgage Loan

C. Home Loan

D. Two Wheeler Loan

E. Other Loans

9. Duration of period which the

respondent prefers for paying the loan

Amount?

A.12Months.

B.18Months.

C.24Months.

D. 36 Months and more.

10. Are you satisfied with the rate of

interest charged by Fullerton India ?

A. Yes

B. No