personal loan by n.b.f.c

7/28/2019 personal loan by n.b.f.c

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A

REPORT

ON

To Identify, Assess Processes And Tools Adopted By

Fullerton For Loan Delivery And Customer Selection

By

NAME: Sudeep Chauhan

Enrollment No. 12BSP1263

FULLERTON INDIA CREDIT COMPANY LTD.


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A REPORT

ON

To Identify, Assess Processes And Tools Adopted By FullertonFor Loan Delivery And Customer Selection

By

NAME: Sudeep Chauhan

ENROLMENT NUMBER: 12bsp1263

FULLERTON INDIA CREDIT COMPANY LTD.

A report submitted in partial fulfilment of

The requirements of

PGPM Program of

IBS BANGLORE

Distribution List: Dr. Amit Joshi

(Faculty Guide)

Mr. Anurag Agarwal

(Company Guide)

Date of Submission: 16 June 2013


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CONTENT PAGE NO.

1 ABSTRACT 4

2 INTODUCTION 5

3 COMPANY PROFILE 6

4 CUSTOMERS 11

5 ABOUT PROJECT 13

6 MY LEARNING 22

7 REFRENCES 23


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ABSTRACT

Fullerton India Credit Company ltd is Non-Banking Financial Company which deals in

lending .The main role of company is to attract customers towards them and smoothing theprocess of lending for them so that customers become loyal customers .It is challenging job

for a company to identify prospective customers .As there is financial criteria for judging the

prospective customers.

Observing the above issue as an important part for financing I tried to learn the skills for

identify the prospective customers for personal loans and creating data records of interested

customers by tele calling prospective customers visiting them and explaining the process for

personal loan . I have also tried to understand the process done by a company at back hand to

satisfy their customer.


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INTRODUCTION

As a part of curriculum the students of PGPM have to undergo Summer Internship Program

(SIP). Wherein a student gets the knowledge about practical life, how the work is done incompanies, how to get acquainted with working conditions and other many such things,

etc.the main aim behind this program is that students get some experience with which he

could get assistance while searching the job. This program is generally provided by a

company and it lasts for at least two months. Students as per their specializations could apply

for SIP and get the opportunity to work in a company, which the college suggests.

As a management student I also have to undergo SIP. I got the opportunity to complete this

program in FULLERTON INDIA for three months. Fullerton is one of the leading NBFC in

India. First of the months was devoted to training. My training started with the session of

information about the company and sales and what is the meaning of the concept , importanceof sales and marketing was taught. The second part was about the practical knowledge about

how to get appointment of customers and how to convince them to prefer Fullerton than other

banks and NBFC .

It is not just all about to convince the customer but to analyze prospective customer is eligible

to get a loan from Fullerton India or not. This judgment is done by assessing necessary

document such as banking statement, pay slip, address proof, pan card etc for salaried person

and bank statement, address proof, pan card, balance sheet, ITR, P&L account statement etc

for business loan. The amount of loan sanction is depending on these documents.

In my project I have also come through the process of sanction of loan what are the tools used

by Fullerton India for selection of customers and converting them to loyal customer


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COMPANY PROFILE

Fullerton Ind ia is one o f the N.B.F.C -M.F .I MFI is a non-deposit it launched

commercial operations in January 2007.Itestablished itself as a financial firm

with a network of over 354 branches across the country, serving over a million

customers.

N.B.F.C

Non-Banking Financial Company (NBFC) is a company registered under the Companies

Act, 1956 engaged in the business of loans and advances, acquisition of

shares/stocks/bonds/debentures/securities issued by Government or local authority or other

marketable securities of a like nature, leasing, hire-purchase, insurance business, chit

business but does not include any institution whose principal business is that of agriculture

activity, industrial activity, purchase or sale of any goods (other than securities) or providing

any services and sale/purchase/construction of immovable property. A non-banking

institution which is a company and has principal business of receiving deposits under any

scheme or arrangement in one lump sum or in instalments by way of contributions or in any

other manner, is also a non-banking financial company (Residuary non-banking company).

Functions of N.B.F.C

NBFCs lend and make investments and hence their activities are akin to that of banks;however there are a few differences as given below:

i. NBFC cannot accept demand deposits;

ii. NBFCs do not form part of the payment and settlement system and cannot issuecheques drawn on itself;

iii. Deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation isnot available to depositors of NBFCs, unlike in case of banks

Different Types Of N.B.F.C

NBFCs are categorized a) in terms of the type of liabilities into Deposit and Non-Deposit

accepting NBFCs, b) non deposit taking NBFCs by their size into systemically important andother non-deposit holding companies (NBFC-NDSI and NBFC-ND) and c) by the kind of

activity they conduct. Within this broad categorization the different types of NBFCs are as

follows:

i. Asset Finance Company (AFC) : An AFC is a company which is a financialinstitution carrying on as its principal business the financing of physical assets

supporting productive/economic activity, such as automobiles, tractors, lathe

machines, generator sets, earth moving and material handling equipments, moving on

own power and general purpose industrial machines. Principal business for this

purpose is defined as aggregate of financing real/physical assets supporting economic

activity and income arising therefrom is not less than 60% of its total assets and totalincome respectively.


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ii. Investment Company (IC) : IC means any company which is a financial institutioncarrying on as its principal business the acquisition of securities,

iii. Loan Company (LC) : LC means any company which is a financial institutioncarrying on as its principal business the providing of finance whether by making loans

or advances or otherwise for any activity other than its own but does not include an

Asset Finance Company.iv. Infrastructure Finance Company (IFC) : IFC is a non-banking finance company a)

which deploys at least 75 per cent of its total assets in infrastructure loans, b) has a

minimum Net Owned Funds of Rs. 300 crore, c) has a minimum credit rating of A

or equivalent d) and a CRAR of 15%.

v. Systemically Important Core Investment Company (CIC-ND-SI) : CIC-ND-SI isan NBFC carrying on the business of acquisition of shares and securities which

satisfies the following conditions:-

a. it holds not less than 90% of its Total Assets in the form of investment inequity shares, preference shares, debt or loans in group companies;

b. its investments in the equity shares (including instruments compulsorily

convertible into equity shares within a period not exceeding 10 years from thedate of issue) in group companies constitutes not less than 60% of its Total

Assets;

c. it does not trade in its investments in shares, debt or loans in group companiesexcept through block sale for the purpose of dilution or disinvestment;

d. it does not carry on any other financial activity referred to in Section 45I(c)and 45I(f) of the RBI act, 1934 except investment in bank deposits, money

market instruments, government securities, loans to and investments in debt

issuances of group companies or guarantees issued on behalf of group

companies.

e. Its asset size is Rs 100 crore or above andf. It accepts public funds

vi. Infrastructure Debt Fund: Non- Banking Financial Company (IDF-NBFC) : IDF-NBFC is a company registered as NBFC to facilitate the flow of long term debt into

infrastructure projects. IDF-NBFC raise resources through issue of Rupee or Dollar

denominated bonds of minimum 5 year maturity. Only Infrastructure Finanace

Companies (IFC) can sponsor IDF-NBFCs.

vii. Non-Banking Financial Company - Micro Finance Institution (NBFC-MFI): NBFC-MFI is a non-deposit taking NBFC having not less than 85% of its

assets in the nature of qualifying assets which satisfy the following criteria:

a. loan disbursed by an NBFC-MFI to a borrower with a rural household annual

income not exceeding Rs. 60,000 or urban and semi-urban household incomenot exceeding Rs. 1,20,000;

b. loan amount does not exceed Rs. 35,000 in the first cycle and Rs. 50,000 insubsequent cycles;

c. total indebtedness of the borrower does not exceed Rs. 50,000;d. tenure of the loan not to be less than 24 months for loan amount in excess of

Rs. 15,000 with prepayment without penalty;

e. loan to be extended without collateral;f. aggregate amount of loans, given for income generation, is not less than 75 per

cent of the total loans given by the MFIs;

g. loan is repayable on weekly, fortnightly or monthly instalments at the choice

of the borrower


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viii. Non-Banking Financial Company Factors (NBFC-Factors): NBFC-Factor is anon-deposit taking NBFC engaged in the principal business of factoring. The financial

assets in the factoring business should constitute at least 75 percent of its total assets

and its income derived from factoring business should not be less than 75 percent of

its gross income.

It services include financing of small and medium enterprises for working capital

and growth, loans for commercial vehicles and t wo-wheelers, home improvement

loans, loans against property, personal loans, working capital loans for urban

self-employed and loans for rural livelihood advancement and financing of

various rural micro enterprises.

It reach out to the market through more than 354 branches across 300 towns and

cities and over 12500 villages providing financial so lutions to over a millioncustomers at their doorstep.

Fullerton India Credit Company Limited is a wholly owned subsidiary

of Fullerton Financial Holdings Pte. Ltd., which in turn is a wholly owned

subsidiary of Temasek Holdings, Singapore. Fullerton Financial Holdings invests

in financial institutions in emerging markets with a focus on Business and

Consumer banking.

Corporate Governance Policy

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 respo nsibility of the Board as a group.

The Board performs its duties with the support of managerial staff. Accordingly,

timely and accurate disclosure of information regarding the financial situation,

perfo rmance, ownership and govern ance of the company is an importan t pa rt of

corporate governance. This improves public understanding of the structure,

activities and policies of the organization. Consequently, the organisation is able

to enhance the trust and confidence of the s takeholders.
http://www.fullertonfinancial.com/http://www.fullertonfinancial.com/


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(iii) Loans Against PropertyA Loan against Property from Fullerton India is an economical and affordable

way to bridge any financial need of customers, whether it is business

expansion or personal requirements such as education, marriage of children,family function, foreign travel, medical expenses, buying high cost consumer

durables or even refurnishing and renovation of home.

(iv) Home LoanDream home is one of the most important decisions of ones life and equally

important of choice of the finance company which can honestly guide and

assist you throughout the home buying process. A company which can assure

expertise, transparency, commitment, best-in-class services, full-fledged

domain knowledge and simplified loan procedures till the complete

repayment of the loan will simplify customer home buying experience.

(v ) Two-Wheeler LoanOwning a two-wheeler is the first step towards improving your standard of

living. Commuting to work or using it in your business or travelling to

someplace everything becomes easy with own two-wheeler. Those who

wont able or not interested to buy it th ey can enjoy the financial services

of Fullerton India.

Fullerton India can help their customers by easing the process of loan and can

provide loans at the door step of cus tomers whic h make it di ff erent from

others.

Rural housing Finance

Rural households aspiring for a better quality home or wanting to construct a

new home are often short of financial resources to fulfill their aspiration.

Fullerton India Gramshakti offers loans to individuals for purchase,

construction, repairs and renovation of dwelling units. We also offer loans to

the self-employed segment where formal income proofs may not be available.

The income of such applicants is appraised based on field investigation andsurrogate income proof.

We offer Housing Loans to customers in Rural India for amounts ranging

from `50,000 to `10 Lakhs with tenor extending till 7 years. The unique selling

proposition of Fullerton In dia's rural housing loans is simplified

documentation, door-step service and flexible assessment process.

We also offer Loans against Property to our customers to help them meet their

working capital and business expansion needs. The loan amounts range

from ` 50,000 to ` 10 Lakhs for a maximum tenor of 5 years.


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About Project

To Identify, Assess Processes And Tools Adopted By Fullerton For Loan Delivery And

Customer Selection

Personal loan

A personal loan is a short-term loan to assist you with your finances. This

payday loan is secured against a future pay check. These loans have becomequite popular today, and now this is the main way to get financial assistance in

the form of a cash advance.

A personal loan is a type of debt which is made for personal, family, or

household use, and which is neither a business loan nor a long-term mortgage

loan. The lender loans money to the borrowers. The borrowers pay back this

amount, usually but not always in regular instalments. This service is generallyprovided at a cost, which is referred to as interest on the debt.

With a personal loan one can meet his financial requirements. Be it any

ceremony in the family, a surprise gift or a grand vacation, personal loans

provide a helping hand. The personal loan helps to take care of all kinds of

expenses in a short time period. This type of loan usually covers travelexpenses, holiday expenses, medical expenses, marriage expenses, honeymoon

expenses or any other personal type expenses.

Types of personal loans

There are basically Two Types of Personal Loans. They are:1. Secured Loan2. Unsecured Loan

Secured Loan:Wherein the loan involves the attachment of collateral say,

your property or any fixed/movable asset- against the sum of money borrowed.

You risk losing your home should you default on repayments.Unsecured Loan: Here the loan is not secured against the loan amount

borrowed. But consequently the lender would be charging a higher rate of

interest, taking into account the high risk involved in lending the sum. Here,failure to make regular payments would see the lender fall back on the credit

agreement, and resort to legal claims to make good the loss incurred.


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Short Term Personal LoansShort Term Personal Loans can be got through banks and online financial

companies, and a wide variety of other sources. With such a Short Term

Personal Loan:

The rate of interest involved is usually high. This is because the period of

repayment is usually for a short time.

This type of short term funding is often utilized to help individuals who

are in need of varying sums of money for a short period.

Banks, while giving this type of short term personal loan, usually require

collateral, before disbursing the same.

Because of the negative and positive aspects of short term personal loans,

it is recommended that the individual does his research thoroughly,

before he applies for funding.

A personal loan can be further classified into a secured and an unsecured loan.

The main difference between the two is that one is obtained with collateral and

the other without the collateral. But the purpose of the loan remains the samethat is to realise personal needs. As secured loan is obtained by pledging

collateral such as a house, a car, property or anything of value, on failure of

repayment of loan amount the borrower runs the risk of confiscation of the

collateral. But at the same time a secured personal loan will come to a borrower

at a low APR (Annual Percentage Rate) and a larger amount of loan will be

sanctioned due to the collateral laid out to the lender in the form of security.Since the lender has some amount of security to claim back his loan amount he

easily offers loan to the borrower. The better the value of collateral that is the

equity the better the loan terms gets.

To identify the customers for personal loans and creating data records of interested customers

by tele calling prospective customers visiting them and explaining the process for personal

loan used by Fullerton India.

For selection of prospective customer I have went to various places such as governmentschools because they are one of the safe customer to whom we can trust that they will turn

out to be faithful customer and do pay their EMI on time.


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The eligibility criteria for personal loan differ from one bank to another. This is because the

different lenders have different perceptions of risk. Also, the ability of different banks to keep

track of the loan and recovery in case of defaults vary. For example, the eligibility criteria

employed by public sector banks is more stringent than that followed by private sector banks.

Nearly all banks divide the potential borrowers into either one of the below three categories:

Salaried individuals

Self employed individuals

Self employed professionals

Salaried Individuals include employees of selected public and private limited companies,

government employees including public sector undertakings, central, state, and local bodies.

However, some banks exclude salaried employees of smaller companies by maintaining a list

of approved companies. If your company is not in this list, it may be difficult for you to get a

loan. The approved list varies from bank to bank. Some banks do provide loans to employees

of companies that are not in the approved list, but at higher interest rate.

Eligibility criteria for salaried employees are broadly along the following lines:

Minimum age of applicant: 25 years

Maximum age of applicant at the time of loan maturity: 60 years

Minimum Gross Monthly Income: Rs. 10000 p.m.

Self Employed Individuals include self-employed businessmen.

Broad eligibility criteria for self-employed employees:


Maximum age of applicant at the time of loan maturity: 65 years Minimum Annual Income: Rs. 100000 p.a.

Self Employed Professionals include self-employed doctors (MBBS, MD, BDS, MDS) and

chartered accountants.




Minimum Annual Income: Rs. 100000 p.a.

Age Criteria:

Many banks prescribe a minimum age of 21 years and maximum age of 65 years for personal

loans. But these criteria are not set in stone. If you prove your income earning capability,

many banks are willing to overlook this factor.


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Residence:

Lenders evaluate the number of years staying in the same residence, which can be rental or

owned place. If you are staying as a paying guest, you find it difficult to get the loan. Some

banks have set geographical limits - customers living beyond this point simply aren't eligible

for the loan.

Banks often internally term certain areas in a city as high-risk. These areas typically reporthigh crime rates and lesser safety. If you happen to stay in such an area, you find it difficult

to get a personal loan. Banks do not publicly admit to such classifications for many obvious

pragmatic reasons.

Tenure of work experience:

If you are salaried/self-employed, banks take into account the number of years you have

remained in service/profession.

Repayment Capacity:

This is the most important criteria for a personal loan. The lender evaluates your repayment

capacity based on your income, savings, and debt obligations, other than household expenses.

Based on this information the lender decides on the amount of loan that you are eligible, afterconsidering your previous debts and obligations. The lender verifies income by scrutinising

your salary/income statements, Form 16, and bank statements.

The minimum income criterion for salaried individuals is generally between Rs 96000-

120000 per year and that of self-employed is Rs 60000-80000 per year. The lower income

criteria for the self-employed is because banks reckon that a self-employed person may be

earning more but shows a lower income for tax-saving purposes.

Past obligations:

The bank will do a thorough check on your past and present financial obligations that will

include your other loans. Some of the parameters the bank checks are whether you have been

a prudent borrower and that all your dues have been paid on time. They also check yourcredit card statements to see whether you pay your dues on time or you habitually exceed

limits. This is to check on your willingness to repay the loan. Most banks have access to your

past credit information through your credit report maintained by credit bureaus.

Your clear past credit background is very important for banks to take a decision to sanction

your loan.

Place of work:

The place where you work is very important. Your ability to get a loan as well as better

interest rates depends on the strength of the company where you are employed. It is for this

purpose that banks maintain lists of companies which they consider favourably and less

favourably. This list plays an important role in your loan's interest rate.

Since I was exposed to the market from starting of my internship I have done talk to 100s of

persons from which about one fourth are eligible to get a loan from Fullerton India on basis

of their salaries as well as according to age and registration of their firm s. from which Ill

able to convince 6 prospective customers to take a loan from Fullerton India .till date I have

create a revenue of Rs 4, 67,000 for the company for that I got an incentive of Rs 7,000.


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Tools Adopted By Fullerton India

BRANCH SCREENING

CIBIL REPORT

FINANCIALINVESTIGATION

PROPOSAL

APPROVAL

PRESENTATION

SANCTION OF

LOAN

CUSTOMER

FEEDBACK


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Branch Screening

After collecting all the required documents branch screening of documents is done by

personal inspection of customer details and checking the documents are genuine.

CIBIL Report

A CIBIL credit report is a month on month record of an individuals loan related EMI or

credit card payments. Loans can include home loans, credit cards, personal loans, automobile

loans and overdraft facilities. Other information included in a credit report is as follows:

Personal information related to an individual such as name, date of birth, address and

identification numbers like PAN number, Passport number, Voters id and Telephone number

Account information such as the type of loan taken (home, auto, personal, overdraft, etc),

the size of the loan, the current balance outstanding, overdue amount (if any), number of days

a payment is overdue (if there is an overdue amount) and so on.

Information on the number of Enquiries made by loan providers on an individual. An

Enquiry is created on your credit report every time the Credit Institution requests the credit

bureau for your credit report.

Financial Investigation

FI is the gathering of information about the financial affairs of entities of interest, tounderstand their nature and capabilities, and predict their intentions. Generally the term

applies in the context of law enforcement and related activities. There is a form of FI in

which various sets of query is put so that financial capabilities of customer can be understand

Proposal

After all inquires a proposal is made for a customer in which amount of loan can be sanction,

rate of interest, tenure of loan is included. Proposal is made with in a branch by credit

manager such that it may satisfy the customer need as well as company norms.

Approval

A proposal is send to head office of Fullerton India which is in Mumbai along with required

documents from where approval is given for the loan amount and rate interest. Approval is

done on the basis of CIBIL score and report.


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Presentation

After getting the approval from head office customer is being called to branch so that

presentation about the deal in which amount of loan, tenure period, rate of interest and

payment mode is explain to customer if customer agree to the proposal the deal is sign byhim.

Sanction Of loan

Loan amount is given to customer within 3 days after signing a deal with him in the mean

while checks is collected from him from which company can recover their EMI which is

along with deal is send to head office Mumbai.

LIST OF TOP PERSONAL LOAN FINANCE COMPANIES IN INDIA

1. State Bank of India: SBI offers SBI Saral personal loan customized in a manner thathelps an individual meet varied kinds of personal expenses. The interest rates at which these

loans are offered are quite competitive with no hidden costs or administrative charges, no

prepayment penalties. It also comes with easy repayment term.

(` in crores)

Particulars 31-03-08 31-03-09

Net Profit 6729 9121

Personal Loan Advances 32168 36557

Highlights of SBI Personal Loans

? Salaried Self Employed

Loan Scheme Saral Personal Loan Saral Personal Loan

Loan Type Term Loan Term Loan

Loan AmountMax Loan: 12 times the

monthly income

Max Loan: 12 times the

monthly income

Tenure Min. 12 Yrs. Min. 12 Yrs.

Interest RateMin. 16 % Max. 16 %

Min. 16 % Max. 16 %

Time to process

Loan2 days 2 days

2.AXIS Bank: Axis bank's personal loans are meant for salaried persons, self


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employed individuals and also professionals. The processing of the loan is simplewith easy documentation and fast approval.

(` in crores)

Particulars 31-03-08 31-03-09

Net Profit 1071 1815

Personal Loan as a % of Retail Assets 16% 12%

Retail Assets 13591.68 16051.78

Highlights on AXIS Bank Personal Loans


LoanScheme

Personal Power Personal Power

Loan

TypeTerm Loan Term Loan

Loan

Amount

The loan amount approved

depends on income and also other

eligibility criteria of applicants.

The loan amount approved

depends on income and also other

eligibility criteria of applicants.


InterestRate

Min.

15 % Max.

23 %Min. 15 % Max. 23 %

3.ICICI Bank: ICICI bank's personal loan comes at attractive interest rates alongwith 12-60 months repayment choices. The processing is fast.

(` in bn)

Particulars 31-03-08 31-03-09

Profit After Tax (PAT) 41.58 37.58Personal Loans Total retail advances % of retail advances

Total retail advances % of retail advances 144.13

10.7 108.66 9.9


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Highlights of ICICI Bank Personal Loans


Loan Scheme Personal Loan Personal Loan


Loan AmountMin. ` 50000 Max. ` 1500000

Min. ` 50000 Max. ` 1500000



Min. 14 % Max. 24 %

Time to Process Loan 3 days 2 days

Fullerton India: personal loans are meant for salaried persons, self employed

individuals and also professionals. The processing of the loan is simple with easy

documentation and fast approval.

Highlights of Fullerton India Personal Loans


Loan Scheme Saral Personal Loan Saral Personal Loan


Loan AmountMax Loan: 60% times the

yearly income

Max Loan: 60% times the

yearly income



Min. 18 % Max. 25 %

Time to process

Loan

2 days 2days


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My Learning

Due to our curriculum Im able grab the opportunity to work in a finance company which

majorly deals in lending. Im able to get an opportunity to study the market of personal loan

in haridwar and the internal process carried out by the company so that they may able check

the capacity of customer to pay back.

Market Explore

Since Im working as an intern in Fullerton India Im allowed to work in a market and select

a prospective customer for a company by telephonic calling and fixed a meeting with them

and explain the process of lending to them.

Im able to interact with 100s of prospective customers and out of which I had carried out

the lending process of company for 10 of them. I had work from calling the prospective

customer to collecting of documents to the feedback taken from customer after sanction ofthe loan.

Learning The Process Of Company

In the whole process I have came across through various process perform by a company after

collecting the documents from customer we have to enter it in the login process of Fullerton

in which all documents are verified at Mumbai after which the amount of lending is

calculated according to company rules maximum amount of its package and also depend on

banking of customer as well as on the basis of income tax return filed by them.

CIBIL report of a customer is generated after collection of documents from customer. A

CIBIL credit report is a month on month record of an individuals loan related EMI or credit

card payments. Loans can include home loans, credit cards, personal loans, automobile loans

and overdraft facilities. Other information included in a credit report is as follows:

Personal information related to an individual such as name, date of birth, address and

identification numbers like PAN number, Passport number, Voters id and Telephone number

Account information such as the type of loan taken (home, auto, personal, overdraft, etc),

the size of the loan, the current balance outstanding, overdue amount (if any), number of days

a payment is overdue (if there is an overdue amount) and so on.

The whole process from collection of documents to sanction of loan takes 10 to 15 days in

between customer is provided by processing details so that they wont lose the interest and

remain in touch with the company. Feedback is also taken from the customer after payment

so that further improvement is done in the process and help in creating more loyal customers

by customer satisfaction.


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When the loan amount is sanction to a customer 12 checks is taken from him so that EMI is

easily recover from him as if he try to default one additional check is take which is deposit in

the bank so that legal action can be taken against him.

Market of personal loan

Since Im working in one of theN.B.F.C whose rate of interest is much more than banking

firm so it is very difficult for N.B.F.C to attract customers they can only satisfy the customer

by fast process with less of difficulties and provide loan as fast as possible to customer which

may help a lot to N.B.F.C to do business instead of banking firms.

Most of the customers prefer to have a personal loan from banking firm since their rate of

interest is less as compare to N.B.F.C but most of the time the process is time consuming in

case of banks so those customer want fast loan they prefer N.B.F.C.

Non-Banking Financial Company (NBFC) is a company registered under the Companies

Act, 1956 engaged in the business of loans and advances, acquisition of

shares/stocks/bonds/debentures/securities issued by Government or local authority or other

marketable securities of a like nature, leasing, hire-purchase, insurance business, chit

business but does not include any institution whose principal business is that of agriculture

activity, industrial activity, purchase or sale of any goods (other than securities) or providing

any services and sale/purchase/construction of immovable property.

Eligibility Criteria for Personal Loan

Salaried Individuals



Minimum Gross Monthly Income: Rs. 10000 p.m.

Self Employed Individuals include self-employed businessmen.




Minimum Annual Income: Rs. 100000 p.a.

This is the basic eligibility criteria for personal loan on addition to it residence location,

payback capacity, past obligation type of industry and experience of the customer also

matters a lot.


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REFRENCES

www.fullertonindia.com

www.fitchindia.com

www.rbi.org.in

www.businessworld.in

www.moneycontrol.com

www.dnd.co.in

www.personalloan.net.in/what-is-personal-loan/

www.foxsymes.com.au
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