STEPS OF LOAN PROCESS

1. Cold calling
2. Lead generation by the sales team.
3. Documentation: The documents should contain all the required KYC documents of
the main applicant and co-applicants, ITR of the main applicant, banking statement
of the A/C from which the company will receive further payments, registry of
property, ownership proof documents of the security which is to be kept.
4. TVR (Tele-verification): In TVR the information provided b the customer in the
application of loan is verified by calling the references provided by the customer.
5. Login: After TVR, the loan is applied online or taken online for the first time. An
identity for each loan application is created. This is a numeric identity code that gets
generated after login. This LOS ID becomes the loan identity.
6. CIBIL check: After login the CIBIL score of the applicants are checked and the
decision of processing the loan further is taken at this stage. If CIBIL is found OK,
then the loan is processed further otherwise not.
7. FI verification: In FI verification, a vendor verifies the address of the customer and
whether the information provided by the customer is true or not.
8. Initiation of legal and technical test on the very next day of login (In case of LAP, EBL
and IMPL>5 lacs), the legal and technical verification is done by the company
vendors to do valuation of the property and decide the loan amount on the basis of
valuation.
9. PD (Personal Discussion with the customer) by BCM/CRM/ACM: PD is done by
BCM/CRM/ACM of the branch in which he again verifies some information.
10. Creation of CAM: All the details related to the ITR, banking statements, EMI date,
loan amount, interest etc. is mentioned in this sheet to find the average bank
balance and balance of income in ITR.
11. Decision making (Acceptance/Rejection): Financial analysis of the person’s business,
salary etc. is done and decision is made on the basis of that whether to give loan or
not. In some case in which some loans can be given with some exceptions, the mail is
sent to the higher authorities containing all the deviations and mitigations. The loan
amount to be given, the EMI amount, insurance amount, EMI dates etc. are decided
at this stage and finally the loan gets sanctioned.
12. Collection of post approval docs: After any case gets approval, the documents
required for final disbursement of loan needs to be filled and collected. These
includes loan agreement, LOD, vetting of original registry etc.
13. Disbursal of loan: The loan here finally gets disbursed. The final schedule of
repayment is prepared by BOM (Branch Operational Manager) and the loan amount
is transferred into the bank account of the customer at this stage through
RTGS/NEFT/FUND TRANSFER as applicable.

PAYMENT OPTIONS APPLICABILITY

NEFT Loan amount < INR 2,00,000
RTGS Loan amount >INR 2,00,000
FUND TRANSFER In case account is in HDFC bank
PAYMENT OPTIONS
 PROCESS OF CREDIT APPRAISAL
1. CIBIL check: CIBIL (Credit Information Bureau of India Ltd.) is an agency which has
launched a universally accepted statement called CIBIL (multi-bureau report) which
shows the credit worthiness of the customer. It includes the customer’s track record
of previous loans which helps in reducing the credit risk. A good CIBIL score is more
than 750, provided that there are no poor track records on previous loans. In CIBIL,
the name of customer, DOB and other things like PAN card no., Aadhar card no. etc.
needs to be matched.

STATUS OF LOAN IMPLICATIONS

0000 Good loan track, payment is on time
0050 (or any no.) A number in DPD column indicates
that payment is late that by number
of days, here 50 days
XXXX XXXX in DPD is shown when the
information for these months is not
been shared with CIBIL by banks
STD (Standard) In this case payments are being made
within 90 days
SMA (Special Mention Account) Created for reporting standard
accounts moving towards sub-
standard
SUB (Sub-Standard) Payments being made after 90 days
DBT (Doubtful) The account which has remained
sub-standard for 12 months
LSS (Loss) An account where loss has been
identified and remains uncollectible
Settled/Write-off When loan gets finished/settled with
an amount less than the amount due
to the customer. Example- loan
payable amount is Rs 10 lacs. But
loan is settled in Rs 8 lacs.
CIBIL STATUS
2. Posidex report: In the Posidex report the number of times the customer has applied
for the loan in HDBFS or HDFC Bank and his application is rejected is mentioned.
3. Experian report: In Experian report, the track records of the past loans from HDBFS
and HDFC Bank is given.
4. Equified report: This report generally doesn’t match. It contains the information of
the enquiries done against the customers.
5. RCU report: A complete verification of the income and financial statements, banking
statements provided by the customer is done by an external vendor (Mr. Abhinav)
who generates this report mentioning whether the documents are original or
duplicate.
6. FI report: Field verification report is generated by the company’s external vendor
FINTECH ASSOCIATES, who checks whether the address residential/office/permanent
is correct or not. They also check whether the customer is actually running the
mentioned business or working in the specified company or not. The company’s
name, place etc. verified at this stage.
7. Technical report: Technical verification is done in case of LAP, EBL, IMPL of amount
above 5 lacs in which the market value of the property given by the customer is
measured so as to decide the amount of loan the company can promise give. Only
one technical verification is done in case the loan is below 15 lacs, which is done by
Neeraj Gupta. In case of loan amount more than 15 lacs, 2 verification are done. The
second valuer is Akul associates. At the time of deciding the loan amount the lower
valuation of the two, needs to be taken into account.
8. PD report: Personal Discussion report is made by BCM – Mr. Jay Pratap Karan in
which he analyses the business stability, financial stability, credit worthiness of the
customer, stock held by the customer etc. through discussion with neighbours,
people in market and personal discussion with the customer.
9. Cash flow: Cash flow by taking into account the revenues, profit margin, expenses
etc. is made by the BCM to check the financial stability of the customer to decide the
loan amount.
 Pending SEQUENCE
1. Security cheques pouch: Every customer whose loan gets disbursed has to keep 8
security cheques with the company, out of which 1 cheque is sent to ERGO DIG A/c
and 7 other cheques is kept as security.
2. Checklist with insurance checklist: There are two checklists which includes the list of
documents in which the documents collected are ticked and signed by the
concerned authorities.
3. Disbursal memo: Cheques details, repayments, deductions and bank A/c details are
mentioned in the disbursal memo.
4. CAM (Credit Approval Memo): All the details related to ITR, banking statements,
EMI dates, loan amount, interest etc. are mentioned in thus file to find the average
bank balance and balance of income in ITR in order to analyse the financials of the
customer.
5. Disbursal report: What amount of loan has to be disbursed to the customer and loan
decision is included in the disbursal report.
6. CPP application form and illustration: CPP is an insurance form which includes the
fee needs be charged from the customer. This amount is deducted from the loan
amount.
7. ERGO form an illustration (LAP & EBL case): This is a general insurance done by the
company in case of LAP & EBL case. This amount is also deducted from the loan
amount.
8. Valuation reports (LAP, EBL & IMPL >5 Lacs): Technical valuation reports.
9. LOD (In case of internal and external BT & Top-up Case) : LOD is the loan track
record of running loans of the customer.
10. Legal report (LAP, EBL, IMPL 5 Lacs & property is a plot : Legal report is provided by
an external vendor (Mr. Jay Prakash Tripathi) specifying that the property papers
provided by the customer are correct to the best of his knowledge.
11. Approval mail & waiver approval mails: When the approval needs to be taken from
the higher authorities, the information/details are shared through mails, the copy of
those mails needs to be attached in the file.
12. Deferral approval: A total of 8 cheques is collected from the customer. In case
customer fails to provide 8 cheques and provides less than 8 cheques, deferral
approval needs to be taken from the higher authorities. The copy of these approvals
needs to be attached.
13. Personal discussion sheet: PD sheet prepared by the BCM.
14. CIBIL & SAS status reports
15. RCU report
16. Stamp report
17. F.I. reports
18. Application form fee: In case where fee is charges at the time of loan application,
this fee form needs to be filled having the details of bank A/c, cheque no., currency
notes information (cash deposit) etc.
19. Tele-verification report (TVR)
20. BPI (Only dated 21st to 3rd in every month BPI required)
21. PLD (EBL case only)
22. BT kit (If other’s bank loan will be disclosed)
23. Sanction letter (Required in LAP & EBL cases)
24. Invoice/cheque/DD acknowledgement
25. Loan agreement
26. Application form
27. KYC documents
28. Income documents
29. Bank statements
30. Repayments schedule
31. Other documents
32. MOA and AOA along with list of directors and shareholdings pattern.
 ORGANISATION STRUCTURE
ORGANISATIONAL STRUCTURE OF HDBFS (SALES)

BUSINESS HEAD
REGIONAL HEAD
ZONAL HEAD

CLUSTER HEAD

BRANCH MANAGER

SM1 SM2 SM3

SO1 SO2 SO3 SO4 SO5 SO1 SO2 SO3 SO4 SO1 SO2 SO3 SO4 SO5 SO6

ORGANISATIONAL STRUCTURE OF HDBFS AT JHANSI BRANCH (SALES)

MR. SARAB
MR. MAYANK SHARMA
MR. PANKAJ BHATIA

MR. VIKAS PACHAURI

MR. MUKUL MISHRA

MR. MOHIT SRIVASTAVA MR. SUNIL SRIVASTAVA MR. VIAKS YADAV

SARDA RAVIK PRITIS BRAJE DEEPA MAYA SACHI DEEPE GAUR PRANA DEVEN
MANU JUBED KARAN ASHISH
R ANT H NDRA K NK N NDRA AV V DRA

ORGANISATIONAL STRUCTURE OF HDBFS (CREDIT)

RCM

CCM

ACM
 BCM BOM

CRM

ORGANISATIONAL STRUCTURE OF HDBFS AT JHANSI BRANCH (CREDIT)

CRA
MR.
KARAM

MR. PRABHASH
CHANDRA
PANDEY

ACM

MR. JAY PRATAP MR. KULDEEP

KARAN SAXENA

CRM

MS. SUBHI
SHARMA

HR PRACTICES
1. Disbursal closing day: On the disbursal closing day i.e. the last day of the month, the
total disbursal cases are counted along with the loan amount under every sales
manager and sales officer. The person with highest disbursal is revealed. Last time
one sales officer achieved 1.5 crores in LAP case. So, cake was cut for this
achievement.
2. Promotions: The promotions of employees and their happiness is also enhanced by
some get-together in the organisation.
3. Birthday celebrations: The birthday of employees is also celebrated in the office.
4. Diwali/Holi: On occasions like Diwali and Holi each employee is given Cadbury
celebration kit and sometimes other gift hampers too.
5. Rewards and Achievements: When any employee achieves a high target, he/she is
motivated through rewards and recognition in the organisation. This is how the
employee's esteem needs are fulfilled by the organisation.
6. Training: As employees form a valuable and great asset to the company, the
company also takes care of the needs of its employees. Proper training is provided to
the employees according to their designations and for the different purpose they
hold in the organisation. For example: Mr. Vikas Pachauri, who is promoted to
cluster manager held the meeting at HDBFS, Jhansi and trained the sales personnel
 and told them the ways to target the customer, risky customer profiles etc. that was
one day training.
7. Scheduled training: A general training by the company’s management trainer also
happens wherein all the employees from all designations are imparted the training.
8. Performance appraisal: The company follows the policy of performance appraisal
wherein the employees have to appraise their performance and to rate themselves
on different parameters. Based on self-performance grades and grades by HR,
appraisal takes place.
9. Joining formalities: All the joining formalities, induction training, performance
observations etc. are done on HR level.
10. Resigning and financial settlement: The exit interviews, resigning formalities, salary
settlement etc. are done on HR level.
11. Dress code: All employees of the organisation follow a proper dress code specified
for the male and female executives respectively.
12. Office timings: All the employees need to reach the office by 9:30 am and proper
closing timing is also taken care of. Late sittings are generally avoided.
13. Prohibition of chewing tobacco/smoking.
14. Foul language/wrong actions/gestures or any act of insubordination is restrained
and a proper decorum in the organisation is maintained.

COMPETITIVE ANALYSIS
MAJOR COMPETITORS OF THE FIRM
1. Bajaj FinServ
About the company:
Bajaj FinServ Ltd. Is a holding organization for the different monetary administration
organizations. The company's working fragments incorporate protection, windmill, retail
financing and investment and others. It serves clients in the money related
administrations space by giving answers for the resource securing through financing,
resource assurance through general protection, family assurance and salary insurance as
life and medical coverage and retirement/funds agreements. The ranges it serves
incorporate loaning and riches administration and insurance/investment funds. It is
auxiliaries incorporate Bajaj Allianz Life insurance Company Limited, Bajaj Allianz
General Insurance Company Limited, Bajaj Finance Limited (BFL), Bajaj Housing Finance
Limited, Bajaj Financial Securities Limited, what’s more, Bajaj Financial Holdings Limited.
It’s BFL's business is organised in five categories such as consumer lending, lending to
small and medium enterprises, commercial lending, rural lending and fixed deposits and
third-party products.
Bajaj Holdings has been registered as a Non-banking financial company (NBFC) under
the Registration no. N-13.01952 dated 29 October 2009 with Reserve Bank of India (RBI).
The company is classified as a symmetrical important Non-deposit taking NBFC as per
RBI regulations.
KEY COMPETITION FEATURES:

 Competition in personal loan segment.

 Have more lenient credit process with less checks as compared to us.
 Prerequisite of CIBIL score 750.

2. Dewan Housing Finance Group (DHFL):

About the company:
DHFL was setup by Late Shri Rajesh Kumar Wadhawan (16th April, 1949 – 30th
September, 2000), a visionary Indian agent. Situated in India’s business capital Mumbai,
DHFL endeavours persistently to connect with its clients through its broad system of 349
workplaces spread over length and broadness it the nation. DHFL nationally has tie ups
with driving private part banks in particular United Bank of India, PENDING and YES Bank
to give home credits to clients through a home loan PENDING agreement. DHFL has
additionally setup agent workplaces in London and Dubai PENDING the constantly
expanding NRI populace in these areas. DHFL has energized PENDING individuals to
make that upward excursion by disentangling money related access PENDING. By
furnishing these people with the benefit of home loan products, insurance services and
unique fixed deposit schemes tailor made to suit their needs.
KEY COMPETITIVE FEATURES:

 Competitor in LAP segment.

 Also offers home loans.
 Benefit from wider range they offer.
 They offer advantage of low interest rate over us.

3. Fullerton India
About the company:
Since its launch in January 2007, Fullerton India effectively and emphatically settled
itself, spread the nation over wide money related scene, with a system of more than 478
branches and serving over a million clients.
Fullerton India Credit Company Limited is a wholly owned subsidiary of Fullerton
Financial Holdings Pvt Ltd., Which in turn is a wholly owned subsidiary of Temasek
Holdings Pvt Ltd., Singapore. Fullerton Financial Holdings invests in financial institutions
in emerging markets with its prime focus on business and consumer banking.
 KEY COMPETITION FEATURES:

 Competitor in LAP and PL segment.

 We often get balance transfer cases from them.
We have a competitive edge over them since they provide loans at higher rates than us.

ORGANISATION BUSINESS PROFILE

LOANS
Whether it is business expansion or a capital requirement, money for your child school
admission, daughter wedding or a dream vacation – our range of loans can help you fulfil
your needs and dreams alike. We at HDBFS have dedicated professionals who work for you
and appraise your exact requirements. Our efforts are directed towards understanding your
requirements and structuring loan solutions accordingly.
FEATURES AND BENEFITS
 Loans up to Rs 5 crore for any purpose.
 Repay in easy EMIs.
 Flexible repayment options, ranging from 12 to 120 months.
 Hassle free documentation and speedy loan processing.
 Service at your doorstep.
 Competitive insurance schemes to protect your loan.
 Complete transparency in processing, no hidden costs.
  Friendly and high-on-integrity customer service.

ADVANTAGES OF HDB FINANCIAL SERVICES:

 One-stop shop for all your loan requirements.
 Personalised solutions: We work with you to structure a loan solution based on your
requirements.
 Doorstep service: Our employees assist you on all documentation, at your doorstep.
 Quick turnaround: Loan approvals within 72 hours of receiving the documents.
 Single window: Dedicated service for all your loan requirements and queries.

SWOT ANALYSIS
STRENGTHS
 Comes from a trusted family of HDFC. So, it enjoys the sales carryover effects.
People are already familiar with the parent company “HDFC”, therefore the
employees of HDBFS need not to do much to make promotion and gaining
customer’s faith. The products of HDBFS can be easily purchased and trusted by
people due to the sales carryover effect.
 Wide range of financial products: HDB Financial Services offers a wide variety of
loans to its customers. It provides various loans like home loan, gold loans, loan
against property, loan against securities, etc. So, the customer has wide range of
products to choose from according to the needs and assets he has.
 Easy and fast appraisal and disbursements: The loan procedure adopt by HDBFS is
quite easy and document collection is an easy process. It ensures that TAT remains in
 limits and doesn’t cross more than the specified limits. In this way they ensure fast
appraisal and disbursement.
 Personalised solutions: HDBFS has personalised solutions for every one accounting
to the customer’s need. It has Doctors loan-for doctor, Gold loan-In case of
immediate cash is needed as it has TAT of 1-2 days only, those who need large
amount of cash -LAP and EBL Loans, etc. Also, sometimes the interest rates and
tenure of loan is also fluctuated to match the needs of the customer by taking
approval from higher authorities of HDBFS.
 Doorstep service: The customer need not to go the office, an executive of the
company would come at the doorstep for filling application from, collection of
documents, payment of EMI, collection of other fees, etc.

WEAKNESS
 Increased regulatory coverage.
 Too much of diversification from core business.
 No access to tools for recovery from bad loans.

OPPORTUNITIES
 Large untapped market, both rural & urban.
 HDBFS can tie or merge with other global MNC’s to increase its market share
here and abroad.

THREATS
 Large competition - Growing retail thrust within banks, NBFC’s and unorganised
money lenders.
 Increased risk of NPA due to demonetization recently.
 High cost of funds.
 PESTLE ANALYSIS
 Political: Some actions of the political parties for example Demonetization, affects
the interest rates, and thus, working and strategies of the organisations.
 Economical: The economic parameters like GDP, NNP, Inflation rate, etc, affects the
on for example If the inflation in the company affects the interest rates of loans
which directly impacts people’s borrowings.
 Social: The types of Loans which the customer applies for can be sometimes
influenced by peers. Also, the loan your relative takes will also affect your choice of
NBFC.
 Technological: With more advanced technology and system upgradation, the
process of loans can become much easier. The TAT can be reduced with better
technological tools.
 Legal: The rules and regulations implemented by law has a direct impact on loans.
The types of Loans, the eligibility, etc. Such parameters may get affected.
 Environmental: The environmental factors don’t have much impact on loan
segment.

MICHAEL PORTER'S 5 FORCES MODEL – INDUSTRY ANALYSIS

 Rivalry amongst existing competitors: Since there are lots of NBFC's existing in the
market. There are many competitors of HDBFS like Bajaj Finance, Fullerton India,
Bajaj FinServ, M&M Finance, Power Housing Finance etc. They are close competitors
so there is a substantial amount of rivalry among existing competitors.
 Threats from new market entrants: NBFC is a sector in which there are not so many
restrictions to enter into. Also, there are easy entry and exit norms. Therefore, there
exists a huge threat from new entrants.
 Bargaining power of suppliers: The company HDBFS is strictly regulated by RBI so
the bargaining power of supplier is high.
 Bargaining power of customers: Since there are many firms dealing into NBFC, the
bargaining power of customers is high.
 Threats of substitutes: There are as such no close substitutes of loans. Therefore,
there exists low threat of substitutes in loan segment. Since, people cannot get high
amount of loans from their friends or relatives. Moreover, people cannot arrange for
large amount of funds from any other sources. Therefore, there is less threat of
substitute.