Microft Office Word 2007

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PROJECT REPORT

ON

Fullerton India Credit Company

SUBMITTED TO LOVELY PROFESSIONALUNIVERSITY

faculty guide:Miss swati mehtaSUBMITTED BY:VINAYrEgd. No. 10807016mba, lsm

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ACKNOWLEDGEMENT

It gives me immense pleasure to express our sincere and whole heartedsense of gratitude to my guide for their invaluable and untiring guidanceand supervision throughout my study. To derive benefits of theirenormous experience, it is a matter of great privilege for me. I take thisopportunity to express my sincere thanks and full appreciation to my

faculty guide or Lect. Miss Swati Mehta and my Company Manager Mr.Sandeep Aggrwal who extended their wholehearted cooperation, moralsupport and rendering ungrudging assistance whenever and wheneverneeds. I wish them very best in their life.

Table of contents

1. Acknowledgement -22


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2. Research Methodology -43. Intoduction -54. Proposition and values -125. Review and litrature -166. Analysis of data -197. Sugession -448. References -469. Annexure - 47Research Methodology

Research Methodology is a way to systematically solve the research

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problem. The Research Methodology includes the various methods and techniquesfor conducting a Research.This project comes under the head of Marketing Research. The MarketingResearch is the systematic design, collection, analysis and reporting of data andfinding relevant solution to a specific marketing situation or problem.Sampling Plan Sampling can be defined as the section of some part of anaggregate or totality on the basis of which judgment or an inference aboutaggregate or totality is made. The sampling plan helps in decision making in thefollowing areas:

Sample size Sample size refers to the total numbers of items about whichthe information is desired. The sample size of the study is 100.Data Collection -Information has been collected from both Primary andSecondary Data.Primary Data Primary data are those, which are collected for the first time,and thus happen to be original in character. Primary Data has been collected inthisstudy by conducting survey through Questionnaire.

Secondary Data Secondary Data are those which have already been collectedby someone else and which already had been passed through the statistical process.

Secondary data has been collectedin this study through Magazines, Web sites, Newspaper and Journals.

Introduction

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Fullerton India Credit Company Limited(FICCL) is a Non Banking FinanceCompany (NBFC) with an A category license, issued by the Reserve Bank ofIndia. It is a fully owned subsidiary of Fullerton Financial Holdings Pvt ltd.Singapore. The Company was established in 1994. In December 2005 theManagement of this Company changed, with an investor making an investment inthe equity capital of this Company under the Foreign Direct Investment Policy.99.99% of the share capital of FICCL is held by Angelica Investment Pte. Ltd.,Singapore. Then they began their operations with new management in India inJanuary 2006. The new management team is headed by a professional CEO andManaging Director, supported by a team of professionals, with expertise in areaofConsumer Finance, Middle market lending and SME businesses. Theseprofessionals have worked in various Banks and Financial institutions, and havegood commercial experience.The company operates on a wide range of financial products and services forcustomers related to the retail markets and commercial mass markets. Thecompany provides financial support to its clients through basically two policiesnamely Fullerton India Parivaar and Fullerton India Vyapar. Fullerton IndiaParivaar provides financial security to salaried individuals where as FullertonIndia Vyapaar offers financial support to people involved in small scale businessesor firms of their own. The company follows a customer centric, community based

business model, and is committed to provide quality financial services to thegrowing Indian masses. The Company believes in a branch centric community ledrelationship based approach in meeting customer needs rather than using theservices of a third party or a vendor such as Direct Selling Agents. Under theorganizational structure, the Company has in each of its branches, a team ofRelationship Managers and Officers who meet customers to understand their

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business or profession and credit requirements.

The Company being in the financial sector provides Loans and financial servicesto customers such as Individuals, Professionals, Partnership firms, Soleproprietorship and Small and Medium companies. To service its customers, theCompany has two major divisions Vyapaar and Parivaar.

Products Offered By the Company

Fullerton India Parivaar has introduced a new concept in the Indian market.The company have branches, which cater only to the specific needs of SalariedIndividuals. Its Parivaar branches provide customized products and solutions,especially designed keeping in mind the unique circumstances and requirements ofthis segment.

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

Unsecured Personal Loans Secured Loans Home Finance Home Equity LoansUnsecured Personal Loans

An unsecured loan is a loan that is not backed by collateral, it is also known as asignature loan or personal loan. Unsecured loans are based solely upon theborrower's credit rating. An unsecured loan is considered much cheaper andcarries less risk to the borrower.

Types of Unsecured loans

There are three types of unsecured loans.

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First is a personal unsecured loan, which means a loan that, a personindividually responsible for the repayment.Second is an unsecured business loan which leaves the business responsiblefor the repayment.Third is an unsecured business loan with a personal guarantee. In this type ofunsecured loan the borrower is the business, but guarantor will be the payerif the business defaults to pay the loan.Secured Loans

A secured loan is a loan in which the borrower pledges some asset (e.g. a caror property) as collateral for the loan, which then becomes a secured debt owedtothe creditor who gives the loan. The debt is thus secured against the collateral. Inany event if the borrower defaults to repay, then the creditor takes possessionofthe asset used as collateral and may sell it to satisfy the debt by regaining theamount originally lent to the borrower. There are two purposes for a loan secured

by debt. In the first purpose, by extending the loan through securing the debt,thecreditor is relieved of most of the financial risks involved because it allows thecreditor to take the property in the event that the debt is not properly repaid.Inexchange, this permits the second purpose where the debtors may receive loans onmore favorable terms than that available for unsecured debt, or to be extendedcredit under circumstances when credit under terms of unsecured debt would notbe extended at all. The creditor may offer a loan with attractive interest ratesandrepaymentperiods for the secured debt.

Home Equity Loan

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

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the borrower uses the equity in their home as collateral. These loans are sometimesuseful to help finance major home repairs, medical bills or college education. Ahome equity loan creates a lien against the borrower's house, and reduces actualhome equity.

Types of Home Equity LoanClosed end home equity loan: The borrower receives a lump sum at the time of theclosing and cannot borrow further. The maximum amount of money that can beborrowed is determined by variables including credit history, income, and theappraised value of the collateral, among others. It is common to be able to borrowup to 100% of the appraised value of the home, less any liens, although there arelenders that will go above 100% when doing over-equity loans. However, state lawgoverns in this area; for example, Texas (which was, for many years, the only stateto not allow home equity loans) only allows borrowing up to 80% of equity.Closed-end home equity loans generally have fixed rates and can be amortized for

periods usually up to 15 years. Some home equity loans offer reduced amortizationwhereby at the end of the term, a balloon payment is due. These larger lump-sumpayments can be avoided by paying above the minimum payment or refinancingthe loan.

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Open end home equity loan: This is a revolving credit loan, also referred to asahome equity line of credit, where the borrower can choose when and how oftento borrow against the equity in the property, with the lender setting an initiallimit to the credit line based on criteria similar to those used for closed-endloans. Like the closed-end loan, it may be possible to borrow up to 100% of thevalue of a home, less any liens. These lines of credit are available up to 30years, usually at a variable interest rate. The minimum monthly payment canbe as low as only the interest that is due.

Typically, the interest rate is based on the Prime rate plus a margin. FullertonIndia Vyapaar strives to improve the business and lives of the small businesscommunity. Their business is focused only on small establishments with a turnoverof less than Rs.25 Mn p.a.

Relationship Approach of the Company

The Company believes in a branch centric community led Relationshipbased approach in meeting customer needs rather than using the services of a third

party or a vendor such as Direct Selling Agents. Under the organizationalstructure, the Company has in each of its branches, a team of RelationshipManagers and Officers who meet customers to understand their business orprofession and their credit requirements. Both the Vyapaar and Parivaar divisionsof the Company leverage the relationship approach in establishing a creditrelationship between the Company and the borrower. Loans are granted on thebasis of completed applications, completing the Know-Your-Customer (KYC)norms, discussion with the customers about the terms of their loan, rate of interest,

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repayment arrangement, etc. The branch only services customers in a limited areaaround the physical location of the branch.The Companys general policy is to be reasonable, transparent and fair with itscustomers.The Company follows established procedures, understands customer requirementsand is reasonable in all its dealings with customers. The design of the applicationforms and the relationship based processes, are to make sure that the Company istransparent in its dealings and transactions. It is with this in mind that theCompany has set up the following guidelines as a Fair Practices Code in dealingwith its customers

Fair Practices Code and Guidelines in Company

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

1. The current application forms capture full details of the customer i.e. age,profession, business, office & residential address, income details and otherrequirements. The application forms indicate the criteria for minimum andmaximum finance available for personal loans, automobile loans. The

application forms specify the documentation requirements in addition toinitial scrutiny of documents submitted. The Company may call foradditional documents for verification purposes. The application forms arenumbered and one section of the form is given back to the Customer as anacknowledgement. The Company keeps a record of acceptance of terms andconditions by keeping the original agreements signed by the customer andprovides a copy of the Agreement or terms and conditions to its customers.2. All applications are verified and processed within a reasonable period of10


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time. All applications would go through a De-duplication and Fraud Checkthough internally established procedures of the Company, before loans areprocessed or approved. The applications which do not satisfy the De-duplication or Fraud Check criteria, would be automatically rejected.Documents needed from the customers will be collected before disbursementof loan.

3. The terms and conditions of the loan are clearly mentioned in the LoanAgreement. The Loan Agreement would specify the tenure, the amount of theloan, applicable rate of interest, the Equated Monthly Installment (EMI)payments and other fees charged by the Company. Processing fee, if collectedwould be clearly mentioned to the customer. A Welcome Letter is also sent toour customers with Key details & Repayment Schedule which mentions theEMIs, split by Principal and Interest components.4. In the event that the loan is rejected, the Company would communicate to theCustomer verbally or in writing about the rejection. The RelationshipManagers/ Officers are empowered to convey the information of the rejectionof the loan verbally.5. Customers at the time of disbursement of loan are advised about facilitiesavailable to them and repayments they need to make from time to time. Inany event the Company undertakes to give full details of the loan, its currentstatus, monthly or quarterly repayments required from time to time on thebasis of request made by the Customers.

6. The Company would release all the securities to the customer once the loan isrepaid and no dues are outstanding to the Company.7. In case of request of a transfer of a loan account from one borrower or alender to another Company or a Bank, the transfer would be completed11


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within 21 days of such a request, provided the customer pays interest and allCompany dues up to date.

8. As far as recoveries of loans are concerned the Company would follow itsown Collection Policy and procedure which is designed to be customerfriendly. Under the Companys collection policy detailed guidelines are laiddown for following the Code of Conduct, with delinquent customers. Ourcollection procedures are constantly checked from a customers point of view.9. The Company has a detailed policy on customer satisfaction and complaintsreceived. As part of the Customer satisfaction assessment, detailed analysis ofcustomer preferences and their grievances or responses are taken intoaccount in improving our operations constantly. Complaints received arepersonally attended to by the Branch Manager and resolutions are trackedby centrally by the Corporate Office in Mumbai. All grievances andcomplaints and resolutions made are presented regularly to the Board ofDirectors for their review.Fullerton India's Propositions and Values

Propositions

The biggest proposition of Fullerton India is customer focus, both, in productdesign/ customization and service. As an organization, they are structured

not around products but along customer segments. They have separate12


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verticals for the Salaried Individuals (Parivaar) and for Small sized shopowners & Entrepreneurs (Vyapaar).

This model lends itself to better understanding of our customers' financialsituation and for a better products offering to them. With this holisticunderstanding of the customers, the company is also able to combine securedand unsecured products and structure the loan in a manner which is ideallysuited to meet individual customer requirements.The company employed Relationship Officers to service the needs of thecustomers. There are no agents or other intermediaries, coming in betweenthe customer and the company. These Relationship Officers are the end-toendsolution providers and act as a single point of contact" for all Product,Process and Service related needs of the customer.The branches do business only within a 5 km radius. The customers' office orresidence has to be within the branch coverage area. This closer proximity ofthe customers to the branches ensures better understanding of the localenvironment and immediate situation.The company participates actively in serving the community in and aroundthe vicinity of their branch. The interest of company in the locality extends

beyond just a business relationship. The company believes in participating inother aspects of development of the community as well.The business envisages setting up branches with employees dealing directlywith the customers. This offering has elicited an enthusiastic response fromcustomers as it gives higher degree of transparency and faster value delivery.The relationship model includes a deep assessment of a customers' businessresulting in an omnibus facility with a flexible combination of usage in parts,flexibility between a combination of short and long tenures, and from13


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unsecured to partially secured and fully secured facilities.

The facility set up for a customer is based on his risk profile, repaymentcapacity, as well as proposed expansion plan. A Relationship Officer isassigned to address incremental product needs, as well as for servicerequirements, through a process of continuous engagement. The businessstrives to deliver lifelong financing support and regular facility enhancement,based on business growth.Businesses are built on people, and the company hires relevant local talent toserve the market, so that there is a connect between the employees andcustomers.The business wishes to bring a full service proposition encompassing loansand liabilities to the small business owners. Besides the variety of loans, lifeinsurance has been introduced which will also be delivered through thebranch based Relationship Officers.The business uses advanced technology tools to record customer history, andleverage track record to enhance credit exposure in line with the customerbusiness cycle. This ensures continuous support through seasonal peaks.

Objectives of the Study

The study was conducted to aiming at fulfilling the following objectives:

To find the preferences of customer regarding various types of loan: Thisobjective focused on the judgment of customer preferences regarding varioustypes of loan provided by Fullerton India such as Secured Loan, Unsecuredloans and Home Equity Loan. The result of this objective will provide themost preferable type of loan among various types of loan provided by14


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Fullerton India. So this objective will help the company to Focus on mostcustomers preferable area.

To know the amount of loan generally availed by the respondents: Thisobjective include the study of the amount of loan which is generallyborrowed by the customers.To study the Advertising effectiveness in creating awareness among thepublic: This objective will help to judge the effectiveness of advertisingstrategy used by Fullerton India to create the awareness among the potentialcustomer about the products and services offered by the company.To study the satisfaction level of customer regarding different loans schemesprovided by Fullerton India Credit Company Ltd: The final objective of theresearch is to study the satisfaction level of the customer who borrowed fundunder particular scheme offered by Fullerton India.15


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Review of Literature

Trevor Richards (1996 ) Begins by defining the conversion model -amodel used as a marketing tool to identify commitment to different brands of goodsor services. Argues that there is a difference between committed and uncommittedcustomers which is not related to service quality and that this makes it difficult topredict customer retention based solely on these grounds. Other factors also drivecommitment. Presents two short case studies based on these assumptions.Kurt Matzler, Hans H. Hinterhuber, Franz Bailom, Elmar Sauerwein (1996) Howto delight your customers, Asks which product qualities are decisive for thesatisfaction of the customer and which features merely prevent dissatisfaction.Proposes Kanos model of customer satisfaction for answering these questions andfor drawing conclusions for the management of product development. In his model,Kano distinguishes between three types of product requirement which influencecustomer satisfaction in different ways when met: must-be requirements, which arebasic criteria of a product -if these requirements are not fulfilled, the customer will

be extremely dissatisfied; one-dimensional requirements, where customersatisfaction is proportional to the level of fulfillment, the higher the customerssatisfaction and vice versa; and attractive requirements, which are the productcriteria which have the greatest influence on how satisfied a customer will be with agiven product. Attractive requirements are neither explicitly expressed norexpected by the customer.

Antony Beckett, Paul Hewer, Barry Howcroft (2000) An exposition ofconsumer behaviour in the financial services industry, Deregulation and the

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emergence of new forms of technology have created highly competitive marketconditions which have had a critical impact upon consumer behaviour. Bankproviders must, therefore, attempt to better understand their customers in anattempt not only to anticipate but also to influence and determine consumer buyingbehaviour. The paper accordingly presents and develops a model which attempts toarticulate and classify consumer behaviour in the purchasing of financial productsand services. The theoretical insights generated by this model are then used toexamine qualitative research data gained from focus group discussions onconsumers attitudes to their financial providers and their financial products.Finally, these findings are examined for the potential insights they provide tobankproviders attempting to identify appropriate strategies which are conducive toincreased customer retention and profitability.

Randi Priluck (2003) Relationship marketing can mitigateproduct and service failures, Relationship marketing is beneficial to firms becauseit can foster customer loyalty and re-patronage behavior. Consumers engaged inrelational exchanges are more satisfied than those in discrete transactions because

of the ease and psychological comfort of purchasing from a familiar company. Thisresearch investigates the power of relationship marketing to mitigate in twosituations. One exposes consumers to poor product performance and examinestheir levels of trust, commitment and satisfaction. The second presents a productfailure that is followed by a lapse in service recovery and measures satisfaction andexit behavior. The findings of both studies suggest that relationships make up forincreasingly strong negative encounters, providing a level of insulation for themarketer. Implications for service firms are discussed.

Adam Lindgreen (2004) Few published empirical studies haveexamined the design, implementation, and monitoring of customer relationship

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management (CRM) programmes at a practical level. The article develops a singleembedded case study on Dagbladet Brsen (http://www.borsen.dk), the largestpublisher of business-related materials in Scandinavia. The article first introducesthe reader to the philosophy behind CRM. Following that, it considers key areasofa four-year long CRM programme and offer insights into the procedure that hasbeen developed by SJP (http://www.sjp.dk), the consulting firm that was broughtinto assist. The procedure is organized around eight areas: commitment of seniormanagement, situation report, analysis, strategy formulation, implementation,management development, employee involvement, and evaluation of loyalty-building processes. Over the four-year long CRM programme, Dagbladet Brsenincreased its newspaper circulation by 40 per cent and advertising revenue by 50per cent, while total revenue more than doubled.

Ka-shing Woo, Henry K.Y. Fock (2004 ) The axiom that the customeris always right is no longer valid when companies realize that some of theircustomers are not right at all. Paying too much attention to these so-called wrongcustomers may jeopardize a company's survival and profitability. Right customers

have to be retained, at-risk right customers have to be recovered, and wrongcustomers have to be divested. This study attempts to operationalize the conceptofcustomer rightness and wrongness in terms of different configurations ofattribute satisfaction and overall satisfaction. Based on the result of a discriminantanalysis of satisfaction survey data, customers with different configurations ofattribute satisfaction and overall satisfaction are re-examined in terms of switchingintention, behavioral patterns and demographic characteristics in order tohighlight any significant descriptor.

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

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company that takes the time and effort to create and execute the linkages between:winning strategy; the role of products and services; the product building blocks;and, linkages to customer needs. In fact, our research and work with clientssuggests that a lack of alignment of these factors is the number one cause for thepoor performance of many new products. This article defines for the reader thefour winning strategy choices a company has Product Leader, Distribution Giant,Innovation Superstar and Customer Lover and how each of these models puts adifferent emphasis on products and services. Once a company has selected awinning strategy, executing that strategy successfully requires adherence to thebusiness model, including aligning product and services, customer imperatives andfinancial realities to that winning strategy model. Losing focus and drifting awayfrom the chosen strategy or interspersing, for example, the product priorities fromone winning strategy with the customer imperatives from another is a recipe forlackluster earnings and poor stock performance. Readers will learn how tooutsmart the competition and build products that really win in the marketplace.

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Analysis of Data

This research is based on primary and secondary data i.e. collected throughprimary and secondary sources. The primary data is collected with the help ofquestionnaire survey and the secondary data is collected from News papers,Internet, and Magazines.Therefore, the analysis of data is categorised under following two sub categoriesthat are:

Analysis of Primary Data Analysis of Secondary DataFirstly the analysis of primary data includes the analysis of data collected throughquestionnaire. The analysis of Primary Data is as follow:Parametersselected for Collecting Primary Data1. Age of the RespondentAge 18-28yrs 28-38 yrs 38-50 yrs More than50Percentage 30% 26% 24% 20.00%

The respondent of research comprises of 30% of 18-28 years, 26% of 28-38 years,

24% of 38-50 years and 20% of more than 50 years. This classification of age groupis required to know the perception of person for taking loan at different stageoflife. Generally Fullerton India provides loan to salaried individuals and newentrepreneurs, therefore our sample size is consists 56% of respondents liesbetween the age group of 18 to 38years. After setting the age group compositionforsurvey the next parameter for differentiating respondent is Income level.

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Percentage0%10%20%30%40%18-28yrs28-38yrs38-50yrsMorethan50PercentagePercentage0%10%20%30%40%18-

28yrs28-38yrs38-50yrsMorethan50Percentage2. Annual Income of the RespondentIncome Below 1 Lac 1-2 Lac 2-5 Lakh Above 5 Lakh%age 15% 40% 35% 10%

Second classification of respondent is based on the basis of their annual income.This classification is done to know that mostly which income level people havemore demand for loan. This research is targeted to know the demand of loan bysalaried individual and small entrepreneurs, therefore the sample size consistsof15% Lower Income level and 40% middle income level for judging the demand ofsalaried individual and to judge the demand of small entrepreneurs the sample sizeconsists of 35% upper middle income level and 10% that are having annualincome more than 5 lakh.

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P e r c e n t a0 %1 0 %2 0 %3 0 %4 0 %5 0 %B e l o w 1L a k h1 -2L a k h2 -5L a k hA b o ve 5L a k hP e r c e n t a3. Occupation of the RespondentOccupation GovernmentEmployeePrivate Employee BusinessmanPercentage 30.00% 25.00% 45.00%The third important consideration which helps to identify that whether therespondent is salaried individual or small entrepreneurs is occupation. The

occupation comprises of Government Employee, private employee that fall into22P e r c e n t a0 %1 0 %2 0 %3 0 %4 0 %5 0 %B e l o w 1L a k h1 -2L a k h

2 -5L a k hA b o ve 5L a k hP e r c e n t a3. Occupation of the RespondentOccupation GovernmentEmployeePrivate Employee BusinessmanPercentage 30.00% 25.00% 45.00%The third important consideration which helps to identify that whether therespondent is salaried individual or small entrepreneurs is occupation. Theoccupation comprises of Government Employee, private employee that fall into

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salaried individual category and third component of occupation is Businessmanwhich indicate small entrepreneurs. The weight provided to salaried individual i.e.to Government and private employee is 55% because Fullerton offered moreproduct to this category and For small entrepreneurs the weight assigned is 45%,because this weight can give justifiable result to divide the demand of loan onthebasis of occupation.

P e rc en t ag0 .00 %1 0 .0 0 %2 0 .0 0 %3 0 .0 0 %4 0 .0 0 %5 0 .0 0 %Government EmployeePrivateEmployeeBusinessmanP e rc e nt a g4. From which source you knew about the various schemes of Fullerton India?

Sources News Paper Television Internet Friends23


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MediaPercentage 44% 12% 20% 24%

This question is asked in order to know the effectiveness of the advertisementstrategy adopted by Fullerton India. The result found by the survey shows thatmost of the customer knew about the various loan schemes through news paper &internet. Therefore company can make more use of the news paper and internet toincrease its customer base. Secondly the company also getting the benefit of itsexisting customer to advertise its product, because 24% of customer knew aboutthe schemes of Fullerton India through their friends who had taken loan fromFullerton India.Fullerton India is not making use of Television media frequently because it is verycostly, therefore resultantly it contributed only 12% in creating the awarenessamong the customer regarding various schemes of Fullerton India.

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P erc entag0%10%20%30%40%50%NewsPaperTelevisionMediaInternetFriendsP erc entag5. Which type of loan you availed from Fullerton India?The most preferred loan by customer is secured loan. This loan is easily available tocustomer because there is less risk faced by Fullerton in giving this type of loan asit is secured by some assets of customer. Second more preferred loan than securedloan is Home loan which is availed by 28% of customer other loan are availed by18% and 12% of sample size.25Types Secured Loan UnsecuredLoan

Home Loan Home equityloanPercentage 42% 18% 28% 12%P erc entag0%10%20%30%40%50%NewsPaperTelevisionMediaInternetFriends

P erc entag5. Which type of loan you availed from Fullerton India?The most preferred loan by customer is secured loan. This loan is easily available tocustomer because there is less risk faced by Fullerton in giving this type of loan asit is secured by some assets of customer. Second more preferred loan than securedloan is Home loan which is availed by 28% of customer other loan are availed by18% and 12% of sample size.25Types Secured Loan UnsecuredLoan

Home Loan Home equityloanPercentage 42% 18% 28% 12%


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P e r c e n0 %1 0 %2 0 %3 0 %4 0 %5 0 %SecuredLoanHomeLoanP e r c e n t6. Through which scheme of Fullerton India you availed loan?Type Parivaar VyapaarPercentage 62% 38%The Fullerton India offers different types of loans under two main scheme that areParivaar and Vyapaar. The Parivaar scheme is for salaried individual where as26P e r c e n0 %1 0 %2 0 %3 0 %4 0 %5 0 %

SecuredLoanHomeLoanP e r c e n t6. Through which scheme of Fullerton India you availed loan?Type Parivaar VyapaarPercentage 62% 38%The Fullerton India offers different types of loans under two main scheme that areParivaar and Vyapaar. The Parivaar scheme is for salaried individual where as26


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Vyapaar scheme available for small entrepreneurs. The result of survey shows thatmost of customer availed loan under parivaar scheme i.e 62% as compare toVyapaar. Therefore it shows that, the salaried individual are more important forcompany, so the company is require to focus on this core product andsimultaneously it require to improve the promotion of its Vyapaar scheme toattract more customers.P e r c e n t0 %2 0 %4 0 %6 0 %8 0 %P a r i va a r V y a p a a rP e r c e n t a27P e r c e n t0 %2 0 %4 0 %6 0 %8 0 %

P a r i va a r V y a p a a rP e r c e n t a27


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7. What is your amount of loan?Amount of Loan %age ofRespondents0 - 2,00,000 28%2,00,000-5,00,000 45%5,00,00010,00,00032%10,00,000 ormore5%

This question is asked to know that generally how much amount of loan is availedby the customer. The result of survey shows that 45% customer availed 2 lakh to5lakh loan, 32% availed 5 to 10 lakh, 28% availed loan up to Rs 2lakh and there arevery less customer who availed loan more than 10 lakh. So the Fullerton India isfamous for medium loan, but there are very less number of customer for largeamount loan. Therefore the company needs to focus on the schemes for largeamount loan to become famous in this segment also.

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%age of Respondents0%10%20%30%40%50%0 -2,00,0002,00,000-5,00,0005,00,000-10,00,00010,00,000or more%age ofRespondents8. What is the repayment period of your loan?Number of Years percentage of RespondentsBelow 2 Years 19%2-5 Years 43%5-10 Years 28%More than 10 Years 10%The profit of the company depends on the repayment period, because if therepayment period is long than customer will pay interest for long period so itbeneficial for company to issue loan for long repayment period. In the surveyitb was found that 19% customer availed loan for maturity period less than 2

29%age of Respondents0%10%20%30%40%50%0 -2,00,0002,00,000-5,00,0005,00,000-10,00,00010,00,000or more%age of

Respondents8. What is the repayment period of your loan?Number of Years percentage of RespondentsBelow 2 Years 19%2-5 Years 43%5-10 Years 28%More than 10 Years 10%The profit of the company depends on the repayment period, because if therepayment period is long than customer will pay interest for long period so itbeneficial for company to issue loan for long repayment period. In the surveyitb was found that 19% customer availed loan for maturity period less than 229


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years, 43% of customer availed loan for 2 to 5 years, 28% availed for 5 to 10years and only 10 % availed for the repayment period more than 10years. Themost preferred repayment period is 2 to 5 years. The company will earn moresustainable profit for long period if it increases the customer who avail loan forlong maturity period, therefore the company need to formulate some attractivescheme to attract the customer towards long repayment period loan.Percentage of Respondents0%10%20%30%40%50%Below 2Years2-5Years5-10YearsMorethan 10Years

Percentage ofRespondents9. Are you satisfied with the rate of interest charge by Fullerton India?Yes No67% 33%The Fullerton India charging different rate of interest for different type of loan.30Percentage of Respondents0%10%20%30%

40%50%Below 2Years2-5Years5-10YearsMorethan 10YearsPercentage ofRespondents

9. Are you satisfied with the rate of interest charge by Fullerton India?Yes No67% 33%The Fullerton India charging different rate of interest for different type of loan.30


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The rate of interest of unsecured loan is quite high because of risky nature whereassecured loan is available at less rate of interest. Therefore there are some customerswho are not satisfied with the rate of interest. The sample size consists of 67%customers who are satisfied with the rate of interest charging by Fullerton Indiaand only 33% are unsatisfied.0 %1 0 %2 0 %3 0 %4 0 %5 0 %6 0 %7 0 %8 0 %Y e s N oS e r i e10. What are the main factors which persuade you to avail loanfrom Fullerton India?31

0 %1 0 %2 0 %3 0 %4 0 %5 0 %6 0 %7 0 %8 0 %Y e s N oS e r i e10. What are the main factors which persuade you to avail loanfrom Fullerton India?

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Factors No. RespondentsEasy Repayment 19%Easy Documentation 26%Attractive Rate of Interest 29%Quick Processing 17%Others 9%

This question is considered to know that which service of Fullerton India attractmore and more customer. The result shows that an attractive rate of interest isthemost important factor responsible for attracting customer toward Fullerton India,then easy documentation, easy repayment and quick processing is also work assupplement to attract customer for availing loan from Fullerton India. Only 9%customers are fall in the category of others who availed loan due to the referencesof some person, such as friends and relatives.

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No. Respondents0%10%20%30%40%EasyRepaymentAttractiveRate ofInterestOthersNo. Respondents11. What grade you will assign to the services of Fullerton India?Grades Excellent Very Good Good Fair PoorPercentage 12% 47% 31% 6% 4%This result shows the perception of different customer toward services of FullertonIndia. The 12 % customer thinks that the service delivery of Fullerton India isexcellent whereas 47% thinks its service delivery is very good, 31% thinks thatservices delivery is only good and 6% thinks that the service delivery of FullertonIndia is fair, but as nobody can satisfy everyone at same time, so this is sameforFullerton India, 4%customer are not satisfied with the services of Fullerton India.33No. Respondents

0%10%20%30%40%EasyRepaymentAttractiveRate ofInterestOthersNo. Respondents11. What grade you will assign to the services of Fullerton India?Grades Excellent Very Good Good Fair PoorPercentage 12% 47% 31% 6% 4%This result shows the perception of different customer toward services of FullertonIndia. The 12 % customer thinks that the service delivery of Fullerton India is

excellent whereas 47% thinks its service delivery is very good, 31% thinks thatservices delivery is only good and 6% thinks that the service delivery of FullertonIndia is fair, but as nobody can satisfy everyone at same time, so this is sameforFullerton India, 4%customer are not satisfied with the services of Fullerton India.33


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P e rc e n t a0 %1 0 %2 0 %3 0 %4 0 %5 0 %ExcellentVeryGoodGoodFairPoorP e rc e n t a34P e rc e n t a0 %1 0 %2 0 %3 0 %4 0 %5 0 %ExcellentVeryGood

GoodFairPoorP e rc e n t a34


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Analysis of Secondary DataAnalysis of secondary data includes the review of the news and articles published innews paper or magazines regarding Fullerton India Credit Company Limited.

Article 1Fullerton India Credit adopts Newgens BPM solution

Newgen Software Technologies Limited announced the successful implementation ofits BPM solution (based on Newgen OmniFlow) at Fullerton India Credit CompanyLimited (FICCL)..

NEWGEN SOFTWARE Technologies Limited, a market leader in BusinessProcess Management (BPM) and Enterprise Content Management (ECM), withimpeccable track record of implementing mission-critical workflow and documentimaging solutions, announced the successful implementation of its BPM solution(based on Newgen OmniFlow) at Fullerton India Credit Company Limited(FICCL). FICCL, one of the largest capitalised Non Banking Finance Companies(NBFC) in the country has taken a steep target of setting up a total of 800 branchesin the country by the end of 2009 (Till now, the company has set up over 650branches).

Speaking of Newgens solution that has helped the FICCL in gearing up to meet itstargets, Pramod Krishnamurthy, executive vice president, technology, FICCL said,One of the key factors that has accounted for Fullerton Indias rapid growth andramping up of operations is the excellent support provided by the Newgen team.Their state of the art workflow routing and imaging system (Omniflow) has metour dynamic requirements very well; it has enabled us to provide high level ofcustomer service internally and externally. We look forward to a continued long-term association with them as a valuable partner in our growth.

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Newgens implementation at FICCL covers the entire gamut of processes includingloan origination and booking, collections and prospect tracking, loan against goldand early warning processes. FICCL currently has more than 350 branches acrossthe country. Number of concurrent users (users across the branches who can besimultaneously logged into the system), which is already over 900, is expected togrow up to 1500 in near future.

Speaking of the successful implementation at FICCL, Punit Jain, vice president,sales and marketing, Newgen Software Technologies, said, In line with ourobjective to be an end-to-end BPM solution provider, our solution has offeredFICCL continuous process improvement, rapid results, visibility and control. Withthis implementation, we are glad to support FICCL in reaching its steep targetsand establishing a strengthened network in India.

Newgen OmniFlow 5.0 is a platform independent, scalable BPM solution thatenables automation of organisational business processes. It is a complete softwaresolution to design, deploy, modify, monitor and manage business processes,involving minimal programming effort, and is easily deployable thereby enablingenterprises to streamline their business processes for greater efficiencies. Bui

ltusing open technologies Newgen OmniFlow has seamless integration abilitiesallowing it to be introduced into almost any existing IT infrastructure.

About Fullerton India Credit Company Limited

Fullerton India Credit Company Limited, a fully owned subsidiary of FullertonFinancial Holdings, Singapore, is the fastest growing financial services companyinIndia with an equity capital base of US$150 million (Rs 7 billion). The companyfollows a relationship led, community based business model with close proximityand engagement with the customer to effectively reach out to them. In a short span

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of time the company has disbursed over 1800 crore rupees, opened more than 400branches spread across 150 locations and has more than 8000 employees on itsrolls.

About Newgen Software

Newgen Software Technologies Limited is a market leader in Business ProcessManagement (BPM) and Enterprise Content Management (ECM), withimpeccable track record of implementing mission-critical workflow and documentimaging solutions. We have a global footprint, with an installation base of morethan 700 customers in over 25 countries. More than 40 of our customers are GlobalFortune 500 companies. Having domain expertise in industry verticals such asBanking, Financial Services, Insurance, BPO, Telecom, e-Governance andmanufacturing among others, we are known as one of the fastest implementers ofBPM solutions in the world.

The sales and support offices span across major cities in Asia, North America,Europe, Africa and the Middle East.Winner of several awards such as Frost and Sullivans Market Leadership Awardfor Document Management and Workflow Software & Services for 2006 andDistinguished Application Product Company by NASSCOM, Newgen Software is

an ISO 9001:2000 certified and CMM Level 4 company.

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Review of Article: 1The first review based on the article published in web site BPM.com.This article talks about the adoption of Newgens BPM solution for their Businessprocess management. NEWGEN SOFTWARE Technologies Limited is a marketleader in Business Process Management (BPM) and Enterprise ContentManagement (ECM), with impeccable track record of implementing mission-critical workflow and document imaging solutions, has announced the successfulimplementation of its BPM solution (based on Newgen OmniFlow) at FullertonIndia Credit Company Limited. Fullerton India has taken this step to achieve itstarget of setting up a total of 800 branches in the country by the end of 2009 (Tillnow, the company has set up over 650 branches).Newgens solution will help the Fullerton India to meet its targets and an anotherimportance of this step is rapid growth. It also enabling Fullerton India to providehigh level of customer service internally and externally.Newgens implementation at FICCL covers the entire gamut of processes includingloan origination and booking, collections and prospect tracking, loan against goldand early warning processes.

Article: 2

Fullerton India Credit Company Limited (FICCL) has bagged the Gold awardfor Excellence in Business Process Management (BPM) and Workflow withNewgen Softwares BPM solutions. The company has bagged the award for thePacific Rim region.The Global Awards for Excellence in BPM and Workflow recognizes userorganizations that have demonstrably excelled in implementing innovative

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business process solutions to meet strategic business objectives. The awards aregiven for five geographical regions: Europe, Middle East Africa, NorthAmerica, Pacific Pacific Rim, and South & Central America with each regionreceiving one Gold and one Silver Award.In order to streamline the workflow and imaging process, Fullerton deployedthe BPM solutions provided by Newgen. The implementation by NewgenSoftware at FICCL covered the entire gamut of processes including loanorigination and booking, collections and prospect tracking, loan against goldand early warning processes. FICCL currently has more than 825 branchesacross the country.

We are honoured to have been presented with this award. One of the mostimportant factors which contributed to our success has been the ease withwhich business process change has been enabled through Newgens OmniFlow.The solution has enabled us to do this quickly and economically, said PramodKrishnamurthy, executive vice president, technology, FICCL.Speaking of the successful implementation of their solution Rajvinder Kohli,VPSales, Newgen Software Technologies, said, The recognition is areflection of our commitment towards our customers to provide them with bestservices. The deployment of OmniFlow BPM Suite at Fullerton India Credithas created history by enabling them to open more than 800 branches in justtwo years. The solution provides total automation for Loan Origination, CRM

and Collection processes, including implementation of a unified interface thatintegrates four different core applications seamlessly.About the awardsThe annual Global Awards for Excellence in BPM and Workflow is co

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sponsored by WfMC, BPMFocus.org and BPM.com and now in their 15thyear. While judging the winners, particular attention is paid toimplementations that have showed processes extending beyond the corporateboundaries to support customers, suppliers, trading partners and more. Thereare five geographical regions: Europe, Middle East Africa, North America,Pacific Pacific Rim, and South and Central America. Each region receives oneGold and one Silver Award.About Newgen SoftwareNewgen Software Technologies Limited is the market leader in BusinessProcess Management (BPM) and Document Management System (DMS), witha global footprint of about 700 installations in over 30 countries. More than 100of these implementations are large, mission-critical solutions deployed atworld's leading BFSI, BPO and Fortune Global 500 companies.Newgen is recognized by distinguished analyst firm IDC in its exclusive reportNewgen Software: Global Leader in Business Process Management andDocument Management Solutions.Winner of prestigious awards, such as CNBC-TV18 Emerging India Award2008, Frost and Sullivan's Market Leadership Award for DocumentManagement System and Workflow Software & Services and DistinguishedApplication Product Company by NASSCOM, Newgen Software is an ISO9001:2000, ISO 27001 certified and CMM Level 4 company.

Review of Article: 2

Second Review is based on the article published in similar web site i.e BPM.com.This article reveal about the gold award won by Fullerton India Credit CompanyLimited (FICCL) for Excellence in Business Process Management (BPM) and

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Workflow with Newgen Softwares BPM solutions. The company has bagged theaward for the Pacific Rim region.This Awards for Excellence in BPM and Workflow recognizes user organizationsthat have demonstrably excelled in implementing innovative business processsolutions to meet strategic business objectives. The awards are given for fivegeographical regions: Europe, Middle East Africa, North America, Pacific PacificRim, and South & Central America with each region receiving one Gold and oneSilver Award.

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Findings of the Study

From the above study it is clear that 62% of the respondents havetaken loan under parivaar scheme and only 38% taken loan underVaypaar scheme. Therefore it shows that Fullerton India is favourablein short term loan segment which is provided by Fullerton India underParivar scheme and especially for salaried individual. From the abovestudy it is clear that majority of the respondents got aware of differentloan scheme provided by Fullerton India through News paper.Therefore company is require to advertise its schemes more frequentlyin News paper which will help company in getting more newcustomers.The above study depicts that most of the respondents availed loan ofamount ranging from Rs.2-5-Lakh. Therefore, if Fullerton Indiaintroduce more scheme under this range to meet the different demandof customers. The above study depicts that mostly the respondents preferred theloan having repayment period from 2-5. Therefore the company needsto add some more benefits to the long term period loan so that thedemand of long term loan will increase which increase the profit ofcompany, because as the repayment period is long than the source of

income (Interest) is sustain for long period.Most of the people are satisfied with the rate of interest charged andby Fullerton India.Fullerton India mostly disbursed loan as secured loan, this willprovide the safety and it will avoid the increasing number of Non42


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performing asset and bad debts.

Customers are the main source of new ideas, and thus theirsuggestions are vital for every Company. From the above figure it isclear that majority of the respondents are satisfied with the services oftheir present bank so they do not want any change in the rate of interestand services, but no one can satisfy everyone at same time, Fullertonhaving respondents who are not satisfied with rate of interest andservices of Fullerton India.Suggestions

The following suggestions have been formulated on the basis of above study. Theseset of suggestions might help the Fullerton India to improve the quality of serviceregarding loan provisions and simultaneously these suggestions help the FullertonIndia to tackle the competition prevailing in the market, thereby achieving successin the future.

Firstly Fullerton India should create awareness among the common publicabout the various loan schemes of they are providing..In order to create awareness regarding the loan schemes an electronicmedium of media can put to use to advertise about the schemes andservices provided by Fullerton India. This would help to change theattitude of the people regarding the Fullerton India.43


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The interest rates should be regularly revised in order to attract more andmore customer. Some new plans should be introduced regularly to caterthe special needs of customer which provides them more offerings andbenefits.New strategies should be made by the company which enables them toface the competition with other private leading Non Banking Financialcompanies.The company needs to focus more on providing value added services to itscustomer. This will create Brand loyalty among customer which indirectlyattract more and more customer because a satisfied customer will alwaysbring two more new customers.The management of company should be more efficient which enables inquick processing of the task regarding loans disbursement and loancollection, This will enable efficiency in the working capital cycle of thecompany.There should be customer relationship management concept in thecompany which help the company to understand the special need ofcustomer. Accordingly company formulate schemes should be maintained.

The Fullerton India need to concentrate on new target market byexpanding its business through introducing new loan schemes andservices. Currently the company is proving loans under main two categoryi.e Parivaar and vyapaar so, it looks limited. Therefore the company needsto introduce new schemes to enter in to new target market.44


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References

.http://www.emeraldinsight.com/10.1108/02652320010315325.http://www.emeraldinsight.com/10.1108/10610429610119469.http://www.emeraldinsight.com/10.1108/08944310510556982.http://www.emeraldinsight.com/10.1108/08876040410536495.http://www.emeraldinsight.com/10.1108/02634500410525841.http://www.emeraldinsight.com/10.1108/09604529610120294.www.fullertonindia.com/.www.fullertonindia.com/index.php?

option=com_facileforms&Itemid=225

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Annexure:

Fullerton India Credit adopts Newgens BPM solution

Newgen Software Technologies Limited announced the successful implementation ofits BPM solution (based on Newgen OmniFlow) at Fullerton India Credit CompanyLimited (FICCL)..

CJ: Charu, 19 Oct 2007 Views:3306

NEWGEN SOFTWARE Technologies Limited, a market leader in BusinessProcess Management (BPM) and Enterprise Content Management (ECM), withimpeccable track record of implementing mission-critical workflow and documentimaging solutions, announced the successful implementation of its BPM solution(based on Newgen OmniFlow) at Fullerton India Credit Company Limited(FICCL). FICCL, one of the largest capitalised Non Banking Finance Companies(NBFC) in the country has taken a steep target of setting up a total of 500 branchesin the country by the end of 2007 (Till now, the company has set up over 350branches).

Speaking of Newgens solution that has helped the FICCL in gearing up to meet itstargets, Pramod Krishnamurthy, executive vice president, technology, FICCL said,

One of the key factors that has accounted for Fullerton Indias rapid growth andramping up of operations is the excellent support provided by the Newgen team.Their state of the art workflow routing and imaging system (Omniflow) has metour dynamic requirements very well; it has enabled us to provide high level ofcustomer service internally and externally. We look forward to a continued long-term association with them as a valuable partner in our growth.

Newgens implementation at FICCL covers the entire gamut of processes includingloan origination and booking, collections and prospect tracking, loan against goldand early warning processes. FICCL currently has more than 350 branches acrossthe country. Number of concurrent users (users across the branches who can be

simultaneously logged into the system), which is already over 900, is expected togrow up to 1500 in near future.

Speaking of the successful implementation at FICCL, Punit Jain, vice president,sales and marketing, Newgen Software Technologies, said, In line with ourobjective to be an end-to-end BPM solution provider, our solution has offeredFICCL continuous process improvement, rapid results, visibility and control. With

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this implementation, we are glad to support FICCL in reaching its steep targetsand establishing a strengthened network in India.

Newgen OmniFlow 5.0 is a platform independent, scalable BPM solution thatenables automation of organisational business processes. It is a complete softwaresolution to design, deploy, modify, monitor and manage business processes,involving minimal programming effort, and is easily deployable thereby enablingenterprises to streamline their business processes for greater efficiencies. Builtusing open technologies Newgen OmniFlow has seamless integration abilitiesallowing it to be introduced into almost any existing IT infrastructure.

About Fullerton India Credit Company Limited

Fullerton India Credit Company Limited, a fully owned subsidiary of FullertonFinancial Holdings, Singapore, is the fastest growing financial services companyinIndia with an equity capital base of US$150 million (Rs 7 billion). The companyfollows a relationship led, community based business model with close proximityand engagement with the customer to effectively reach out to them. In a short spanof time the company has disbursed over 1800 crore rupees, opened more than 400

branches spread across 150 locations and has more than 8000 employees on itsrolls.

About Newgen Software

Newgen Software Technologies Limited is a market leader in Business ProcessManagement (BPM) and Enterprise Content Management (ECM), withimpeccable track record of implementing mission-critical workflow and documentimaging solutions. We have a global footprint, with an installation base of morethan 700 customers in over 25 countries. More than 40 of our customers are GlobalFortune 500 companies. Having domain expertise in industry verticals such as

Banking, Financial Services, Insurance, BPO, Telecom, e-Governance andmanufacturing among others, we are known as one of the fastest implementers ofBPM solutions in the world.

The sales and support offices span across major cities in Asia, North America,Europe, Africa and the Middle East.Winner of several awards such as Frost and Sullivans Market Leadership Awardfor Document Management and Workflow Software & Services for 2006 andDistinguished Application Product Company by NASSCOM, Newgen Software is

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an ISO 9001:2000 certified and CMM Level 4 company.

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Questionnaire

Name: Contact No:

1. Age of the Respondent:a.18-28yrs . b. 28-38 yrs .c. 38-50 yrs . d. More than 50 .2. Annual Income of the Respondent:a. Below 1 Lakh . b. 1-2 Lakh .c. 2-5 Lakh . d. 2-5 Lakh .3. Occupation of the Respondent:a.Government Employee .b. Private Employee .c. Businessman .4. From which source you knew about the various schemes of Fullerton India?a. News Paper . b. Television Media .c. Internet . d. Friends .5. Which type of loan you availed from Fullerton India?a. Secured Loan . b. Unsecured Loan .c. Home Loan . d. Home equity loan .49


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6. Through which scheme of Fullerton India you availed loan?a. Parivaar . b. Vyapaar .7. What is your amount of loan?a. 0 - 2,00,000 . b. 2,00,000-5,00,000 .c. 5,00,000-10,00,000 . d. 10,00,000 or more .8. What is the repayment period of your loan?a. Below 2 Years . b. 2-5 Years .c. 5-10 Years . d. More than 10 Years .9. Are you satisfied with the rate of interest charge by Fullerton India?a. Yes . b. No .10. What are the main factors which persuade you to avail loanfrom Fullerton India?a. Easy Repayment . b. Easy Documentation.c. Attractive Rate of Interest . d. Quick Processing.e. Others .

11. What grade you will assign to the services of Fullerton India?a. Excellent . b. Very Good .50


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c. Good . d. Fair.

e. Poor .51

Thank You


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