Post on 28-Apr-2015
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ON THE TOPIC
“STUDY OF VEHICLE FINANCING PROCESS’’
SUMMER INTERNSHIP PROJECT AT
JAIKA MOTORS LTD.
STERLING INSTITUTE OF MANAGEMENT STUDIES
Faculty Guide:RAKHI SHRIVSTAVAFaculty: Finance
Presented By:NITESH VAZEKARROLL NO. B-71FINANCE
JAIKA MOTORS LTD
The Jaika Group began its journey on 2 November, 1954, with the founding of Jaika Motors Ltd., in association with Tata Motors
Today, the Group has completed over 5 decades of mutual trust with Tata Motors. It has diversified and grown into a conglomerate of 10 companies with a combined annual turnover of over Rs.750 cr
In the process, the group has also established tie-ups with a number of world class companies such as Hyundai, TVS, Bharat Petroleum, Whirlpool, TCL, ILFS etc
TATA MOTORS FINANCE LTD.
Tata Motors Ltd pioneered commercial vehicle financing in 1957 in the name of BHPC (Bureau for Hire Purchase and Credit)
Tata Motors Finance Ltd (TMFL), came into existence in June 2003
This was a common front-end, jointly formed by BHPC of Tata Motors and the asset financing arm of erstwhile Tata Finance Ltd
Subsequently Tata Finance was merged with Tata Motors and in April 2005 TMF became a division of Tata Motors
STEPS FOR FINANCING THE VEHICLE
Jaika Motors Sales Team
Jaika Motors Finance Department
TATA Motors Finance
Jaika Motors File disbursement (TATA Invoice + Jaika Invoice +
Insurance)
Minimum Rates for BHPC March 2012
Sr.No. Vehicle Model IRR% 1 2 3 4 5
CARS ADV NIL ADV NIL ADV NIL ADV NIL ADV NIL
1 INDICA DLS 16 6.76 8.18 7.63 8.38 8.05 8.6 8.05 8.06 8.64 9.02
2 INDICA XETA 16 6.76 8.18 7.63 8.38 8.05 8.6 8.37 8.82 8.64 9.02
3 INDICA VISTA 14 5.91 7.14 6.64 7.30 7 7.48 7.24 7.63 7.46 7.78
4 INDIGO CS 14 5.91 7.14 6.64 7.3 7 7.48 7.24 7.63 7.46 7.78
5 TATA SAFARI 16 6.76 8.18 7.63 7.63 8.05 8.6 8.37 8.82 8.64 9.02
Format of Rate of Interest of Finance
CIBIL
CIBIL – Credit Information Bureau (India) Limited
India's first credit information bureau- which contains the credit history of commercial and consumer borrowers. CIBIL provides this information to its Members in the form of credit information reports
Banks, Financial Institutions, State Financial Corporations, Non-Banking Financial Companies, Housing Finance Companies and Credit Card Companies are Members of CIBIL
Specimen o
f CIB
IL
TATA DEDUPE
Dedupe is a database created of all the customers of TATA group
It contains the financial data of individuals as well as corporate customers of TATA Group for all products
Specimen of DEDUPE
FIELD INVESTIGATION
Field Investigation is done to get following details:
Applicant’s personal information
Residence verification (RVR)
Work place details (OVR)
Finance requirement
Guarantor details (if there is Guarantor in the case)
CALCULATION OF DOWN PAYMENT AND EMI
The Jaika Motors Finance department calculates the expected amount that can be finance and the EMI
RISK SCORING PRICING MODULE
This is a questionnaire designed such that it helps the company to know their customers financial condition to avail the finance
Total Income and assets held by customer
RSPM gives 3 decisions for forward processing Yes – Approval for finance (Telephone bill is necessary or its waiver) Refer to credit – the case is refer to the Credit Processing Agency
to clarifies the deviations and reduce the risk No – Mandatory rejection
RISK CONTAINMENT UNIT
It sample the doubtful documents and verify with original It minimize the risk of financing by carefully observing
the documents of customers
If any report found negative , it return the case to Jaika for clarification
RELEASE ORDER
After getting the approval from all the departments, a Releasing Order is passed for final processing to Sales Team of Jaika Motors
Sales Team prepares the following documents:TATA InvoiceJaika InvoiceInsurance
The customer is handed over the Vehicle and photocopies of above three documents
Conclusion