PART - 1

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INTRODUCTION OF ORGANIZATION

Fullerton India Credit Company Ltd.

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

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

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

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

2005

The company came into existence in 2005 which acquired DOVE FINANCE

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

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

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

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

SINGAPORE .

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

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

Singapore Fullerton provides financial products and solutions, customized to the

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

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

of

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

Billion Temasek Holdings, Singapore.

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

the country to source and service our customers.

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

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

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

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

FULLERTON INDIA division

a) COMMERCIAL MASS MARKET (CMM):-

CMM provide loan to self employed like shop-owner

b) RETAIL MASS MARKET (RMM)

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

business loan, housing loan, automobiles loans, mort gage loans etc In late 2009

both division merged in a bank formally called as CRMM {Commercial Retail

Mass Market} which is lead by ‘’Sir

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 BRIEF HISTORY OF THE
ORGANIZATION

Fort Fullerton Named after GOVERNER ROBERT FULLERTON was created

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

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

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

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

forward this legacy,

MAJOR INVESTMENT OF TEMSEK HOLDING IN WORLD

1. BANK DANAMON

2. ICICI BANK

3. CHINA CONSTRUSTION

4. INDONESIA

5. MAHINDRA & MAHINDRA

6. BANK AND CHINA COSCO

7. NIB BANK PAKISTAN

8. HOLDING IN CHINA

9. FULLERTON INDIA

10. TATA TELESERVICE

11. BANK DANAMON AND BANK

12. INTERNATIONAL INDONESIA

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13. QUINTILES

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

Indian masses

IN may-June 2005 TEMSEK FORMED COMPANY “ASIA FINANCIAL

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

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

operation at PAN INDIA LEVEL.

On 1st January 2006 came into existence FIRST INDIA CREDIT

CORPORATION and 1st may 2006 the company partnered with centurion

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

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

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

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

masses.

The Company being in the financial sector provides Loans and financial

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

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

Company has two major divisions Vyapaar and Parivaar

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

Mortgage loans, etc.

The Company believes in a branch centric community led Relationship based

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

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

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

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

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

leverage the relationship approach in establishing a credit relationship between the

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

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

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

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

location of the branch.

. The Company follows established procedures, understands customer requirements

and is reasonable in all its dealings with customers. The design of the application

forms and the relationship based processes, are to make sure that the Company is

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

has set up the following guidelines as a Fair Practices Code in dealing with its

customers.

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Till Date Successfully Completed phase 1 Branch roll out

Date Phase

01st January 2007 Fullerton India

01st May 2006 Partners with Conjuration bank of Punjab

01st January 2006 First India credit corporation

12th December 2005 Acquired Dove finance

12th July-August 2005 Asia financial holding

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Direct Contact with Localized Credit customers Approval System

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

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

Understanding of his needs and superior .

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

Team Of Relationship Managers and Officers who meet customers to understand

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

Parivaar division of the Company leverage the relationship approach in establishing

a credit relationship between the Company and the customer.

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 FAIR PRACTICES CODE AND GUIDELINES

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

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

application forms indicate the criteria for minimum and maximum finance available

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

documentation requirements in addition to initial scrutiny of documents submitted.

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

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

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

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

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

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

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

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

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

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

collected before disbursement of loan.

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

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A Welcome Letter is also sent to our customers with Key details & Repayment

Schedule which mentions the EMIs, split by Principal and Interest components. In

the event that the loan is rejected, the Company would communicate to the

Customer verbally or in writing about the rejection. The Relationship Managers/

Officers are empowered to convey the information of the rejection of the loan

verbally.

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

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

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

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

the Customers.

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

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

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

date.

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

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

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

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

constantly checked from a customer’s point of view.

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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 responsibility of the Board of

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

managerial staff.

Accordingly, timely and accurate disclosure of information regarding the

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

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

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

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

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Corporate Governance Philosophy and Practice
The Company believes in adopting, adhering and benchmarking itself

against the best recognized corporate governance practices. Good corporate

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

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

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

truthful manner.

The Company has infused the philosophy of corporate governance into all

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

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

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

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

philosophy of corporate governance in letter and spirit.

Board of Directors oversees the performance of the company and ensures

shareholder protection and maximization of their long term values. There is also

an active participation of Independent Directors in the Company. The Company

voluntarily follows the spirit of Clause 49 of the Listing Agreement, though the

said clause is not applicable to the Company it being an unlisted entity.

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

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

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CORE VALUE

1. Integrity and Discipline:

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

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

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

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

lack of character and integrity

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2. Passion to Excel:

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

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

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

organization wanting to excel at what its doing.

3. Innovation:

Innovation is nothing but thinking about something before others, then

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

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

thinking about our jobs with that in mind.

4.Open to change:

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

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

themselves and the making made such development

.5.Unlearn and Learn:

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

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

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

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

6. Care:

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

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

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7. Transparency:

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

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

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

aligned to that of the Organization.

8.Risk Adjusted Returns:

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

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

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

9. Team:

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

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

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

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

10. Entrepreneurs:

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

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

ownership and responsibility is vital for our success.

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

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

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

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

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

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

quality financial services to the growing Indian masses.

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

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

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

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

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

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

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

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

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

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

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

last year.

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

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

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

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

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

Motorcycles for two-wheeler financing.

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

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

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

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

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

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

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

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

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

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

Standard Chartered Bank, India.

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BOARD OF DIRECTOR
Francis Andrew Rozario

Chairman

Fullerton India Credit Co Ltd

P.O. Box No. 8108

Bandra East

Mumbai 400 051

Mr.Nihal Kaviratne CBE (Independent

Director)

Mr. Francis Ribeiro (Independent

Director)

Mr. SN

Menon (IndependentDirector)

Mr. Parvez Vajifdar (Whole Time Director)

Mr. Rajeev Kakar (Director)

Mr. Sodano Thomas (Director)

Mr. SNG Seow Wah (Director)

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Mr. Cheo Hock Kuan (Director)

Mr. Jovasky Pang Archana Parekh (Director)

Organization PERFORMANCE

The retail finance market in India has regained its lost

sheen as loan disbursements in this space is likely to

see a 29 per cent annual growth and is expected to

touch a whopping Rs 4.2 lakh core by 2011-12.

“The huge untapped demand, coupled with the

rebound in profitability for financiers, is expected to

spur a boom in retail finance in the coming years,”

Infrastructure lending major IDFC said in a research

report.

Not too far in the past, regulatory forbearance and a

cyclical downturn in the economy had taken the sheen

off the lucrative retail finance industry. Pursuant to

which, the market grew by a meager 8 per cent over

FY08-10 against around 50 per cent CAGR over

FY05-08

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 .
The growth in the retail finance disbursement would be

largely driven by improving affordability, increasing

propensity to consume and the fact that the penetration

level of retail finance loans is still low.

“We expect annual disbursements in the segment to

accelerate to 29 per cent compound annual growth rate

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

in FY12.”

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

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

perfect ground for proliferation of retail finance. On

the back of improving income demographics and

thereby higher affordability, penetration of retail assets

was on the rise.

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Besides, the proportion of house holds with annual

income below Rs 10 million falling to 36 per cent from

46 per cent over FY10-15, the report added.

“Burgeoning middle income household’s ideal market

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

and affordability is rising,” it said.

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

cent of population) in age group of 15-40 years with

high material aspirations, on the back of increasing

urbanization. Besides, India has a high proportion of

young people who are not wary of borrowing.

There is ample scope to expand as auto penetration

remains low, as also the 2-wheeler penetration. In

mortgages there is ample scope to grow, besides credit

card penetration also lags, the report added

Comparison of FULLERTON
INDIA( FICCL) with other
Finance Company

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 INDIABULLS Mahindra & Indusind

Subject to FULLERTON TMFL Fin. Ser. Ltd Mahindra Bank

INDIA Fin. Ltd.

Market Share in %

Jhansi 5% 30% 8% 10% 40%

FI done by out Side

Agency NO YES NO NO NO

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

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

Disbursement of File Chennai Agra Local Local

FCU Agency Yes Yes Yes No No

ORGANIZATION PRODUCT &

SERVICES

Our Parivaar branches provide customized

products and solutions especially designed keeping

in mind the unique circumstances and requirements of

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this segment. The Parivaar Loans cover a wise

range of products, which include:

• Unsecured Personal Loans

• Secured Loans

• Home Finance

• Home Equity Loans

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Unsecured Personal Loans:- are the loans which are

provided by financial institution without any collateral

security, this means that there is no risk on owned

property. In India unsecured personal loans are

generally taken to manage higher standard of living,

marriages, promoting business, tours, petty expenses

and investment in different financial schemes. The

amount of loan can be ranged from Rs. 50,000 – Rs. 20

lakh & the tenure for repaying the loan varies from 1

to 5

Benefits of personal loan

1. A Loan without security : A Personal Loan is

not a secured loan (bank doesn’t ask for any

security or collateral) as against a Secured

Loan where one is required to pledge a house

or other security to acquire a loan

2. Simple Documentation: A Personal Loan can

be accessed with minimal paperwork or

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 documentation & doesn’t take much time to

procure as against a Secured Loan.

3. No specification about the end use of the loan

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

the money borrowed, Banks are concerned about the

fact that whether the borrower is able to pay back the

loan with interest before the due date or not and they

confirm this by checking the income, employment or

business & other factors Of the borrower.

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

fulfill bigger loan requirement, you can take a loan

ranging from Rs. 50,000 to Rs. 20 lakh.

Basis to Compare Personal Loans

• Compare Interest Rates : Personal Loan can be

compared primarily on the basis of interest rates which

vary across banks depending on your profile which is

further linked to your occupation, salary/income, credit

history etc. The personal loan interest rate ranges from

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12% to 25%, you must go for that loan which is

offering you at the minimum rate.

• Other Charges: You should also check on the other

charges like processing fee, pre-payment penalties and

documentation fee because they increase the overall

loan cost and vary widely across banks.

. • Evaluation of various Loan offers: You should first

calculate the entire loan cost across banks which

constitutes the rate of interest & banks other charges.

Evaluate offers keeping the tenure of the loan constant

& compare the rate of interest, EMIs & other charges.

This process will help you get the best loan deal

• EMIs: EMI is the monthly equated installment which

constitutes the principal amount and EMI Calculator to

compare EMIs across banks the interest on the

principal equally divided across each month in the loan

tenure. Use our

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• Tenure: Tenure is the time frame for the personal

loan payments to be paid back to the bank; it ranges

from 1 year to 5 years. If you have a longer tenure you

will end up paying more interest & will have lower

EMI, on the other hand shorter loan tenure will carry

higher EMIs & the interest amount is less. You must

compare the loan offers by keeping the tenure

constant.

• Eligibility Check: Before taking a personal loan you

must know the eligibility criteria’s offered by various

banks on the basis of which they offer loans and

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also compare personal loan banks. Checking the

eligibility parameters will help you find the best loan

deal Check out your eligibility by various banks.

• Turnaround Time: It becomes one of the most

important factors in evaluation of your loan application

when you are in a dire need of money. Turnaround

time is the time which banks take in processing your

loan application; you must check this parameter which

varies from bank to bank.

• Charges involved in Personal Loan

The Rate of interest alone should not be judged

before you finalize your application, apart from

the rate of interest, Personal Loan also

constitutes other charges levied by the lender

Which affect the overall cost of your loan & should be

considered while comparing it across banks?

Following are the lists of charges

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

borrowers to process their loan application; it is

normally between 1-2 percentages of the loan amount.

• Prepayment fee: Banks charge borrowers with a fee

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when they pay the loan EMIs before the tenure which

normally is between 2-5% of the outstanding loan

amount.

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

monthly EMIs of your loan,

banks charge a late payment fee with your EMIs. They

normally range from 2-3% of the EMI.

• Cheque bounce charges: Banks charge between Rs.

250-500 for every bounced cheque given for the

payment of the loan amount owing to the insufficient

funds in your account.

• Documentation charges: These are the charges for

verifying the borrower’s documents to processing the

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

• You should note that the above charges vary across

different banks; you should consider these charges

before choosing the personal loan as they will

determine its real costs.

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 • Documents required in Personal Loan

The documentation process in personal loan is very

fast as against secured loans. Following documents are

required by financial institutions to process the loan

application:

 Identity proof

 3 to 6 months Bank statements

 Residence proof

 Salary slip

 Guarantors & their same set of

documents

In case of self-employed banks require balance sheets,

profit & loss account, partnership deed & other

mandatory documents etc years..

Personal Loan Criteria by various banks

Banks offer Personal Loan to borrowers depending on

various factors such as income, employment,

continuity of business so as to make sure that they

repay the loan with interest before the due date. The

eligibility criterion of a Personal Loan is primarily

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based on the work profile of a loan seeker which is

broadly divided into the following two classes:

1)Self-employed

2)Salaried

In addition to the above factors banks also consider

other aspects such as age, work experience, existing

relationship with the bank, repayment capacity etc.

To find your eligibility Criteria across various banks in

accordance with the above parameters; Deal4Loans

has brought in the Eligibility Criteria Check for

Personal Loan seekers.

How does the Cibil Score affect your loan

application?

This a norm wherein the banks before giving Personal

Loan checks the database of all loan borrowers in the

country by the Credit Information Bureau of India

(CIBIL) which is called the Cibil Score. If there has

been a default in your loan payment; your loan

application would certainly be rejected. Your Cibil

score ranges from 100 to 999,

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for instance if your credit score is 100 then your loan

application might be out rightly rejected.

You can improve your credit score by repaying your

loan EMIs on time and always pay the minimum

payment on your credit card to avert from the bad

credit score.

Reducing Interest Rate or Flat Interest Rate, which is

better?

The Personal loans Interest Rates vary between 14%

and 25% depending on your profile & payment ability.

There are basically two types of interest Rates offered

by banks which are

1) Reducing Balance Interest Rate

2) Flat Interest Rate

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 In the Reducing Interest Rate calculation method,

the interest on your loan keeps on reducing as it is

calculated on the reduced principle amount which

gets reduced daily, monthly. Quarterly or annually.

Flat Interest Rate calculation method on other hand

implies that your rate of interest remains the same &

is calculated over the entire loan period. The

outstanding loan amount is never reduced over the

loan tenure.

It is always advised to take a loan at reducing balance

interest rates as the Flat rate calculation comes out to

be really expensive.

Important pointers in Personal Loan Increase your

loan.

Eligibility: You can increase your eligibility of the

loan amount by clubbing your income with your

spouse’s income.

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 Relationships with Banks: You can get discounts on

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

already deal with for your existing relationship, in this

case banks will consider your past records of credit

repayments and your saving account balance and you

will be offered discounts on the basis of your current

relationship.

Cibil Score Check: You must know that your credit

history play a very important role in the acceptance of

your loan application as CIBIL keeps a record of credit

history by collecting your credit data from various

financial institutions. A decent credit score not only

gives a green

Personal Loan Rate of Interest

Bank Interest Rates

Citibank 16.5%-18.5%

HDFC Bank 15.5%-22%

Fullerton India 19%-28%

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CitiFinancial 16%-21%

SBI 16%-20%

Standard Chartered Bank 15.5%-22%

Signal to your loan application but also offers you

lower interest rates by the bank.

Penalties: If you think of closing your loan earlier,

this will invite the pre-payment charges levied by the

bank which are up to 5% of the outstanding loan

amount. Some banks have this norm wherein you are

not allowed to close your loan within the first six

months of your loan term. You should also know about

the charges taken by the bank for paying your EMI

late.

• Home Finance Home loans are provided based on the

market value, mainly estimation given by banks or the

registration value of the property. Availing various

types of house loans to suit your individual needs at

the lowest rates & easy financing can now fulfill the

need for a house of your own.

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

36
market periodically before availing them. m easy

getting yourself a loan.

Buyers tend to make mistakes while entering into

deals, which may not be beneficial for them, so better

compare all the variables before signing a loan

agreement by different banks. However the loan

agreement should be finalized only after reading the

terms and conditions carefully.

Asset Products

Enjoy attractive interest rates and the convenience of

doorstep service from enquiry to disbursement. The

facility to transfer your existing higher interest rate

loan to FULLERTON INDIA Bank is also available

Homes loan
Processing fees Waived
Interest rate Preferential rate of interest

• Secured Loans:- A homeowner has a better

chance of borrowing a homeowner loan and securing

the amount against his home. A secured loan is

because one puts up his home as a Collateral or

security against the loan of the lender. It gives a

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homeowner an added advantage of obtaining large

amount loans at minimal interest rate payable over

longer period of time.

Purpose:

There are two purposes for a loan secured by

debt. In the first purpose, by extending the loan

through securing the debt, the creditor is relieved of

most of the financial risks involved because it allows

the creditor to take the property in the event that the

debt is not properly repaid. In exchange, this permits

the second purpose where the debtors may

receive loans on more favorable terms than that

available for unsecured debt, or to be

extended credit under circumstances when credit under

terms of unsecured debt would not be extended at all.

The creditor may offer a loan with attractive interest

rates and repayment periods for the secured debt.

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 Characteristics:

1. Larger loan amounts

Secured lenders are more willing to give big loans. If

you need a significant amount, a secured loan will

probably be the way to go.

2. Longer payment period.

Many secured lenders provide long payback times.

This, of course, will make your payments smaller. If

you prefer to pay low monthly amounts for a fairly

long period, you may consider a secured loan.

3. Lower interest rates.

Because the lender has recourse in case of

default, they are able to offer lower interest

rates. Once again, this will make your

payments lower and possibly make your

payback time shorter.

The following flowchart shows the secured offered

under the RMM business:

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Two Wheeler Loan

Two Wheeler Product Features

Two Wheeler loan is one of the products Fullerton

offers to its customer, let’s look at the features of the

Two Wheeler product

Target Market

The target market for the Two Wheeler product

includes the following:

• Salaried individuals

• Self-employed individuals

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Locations

Approved location as per policy

Brand and Asset Types

There are a few selected branch/models and asset type

that are covered under Two Wheeler loan. These

include the following:

Brand

• TVS

• Suzuki

• Bajaj

• Hero Honda (this includes Activa as well)

Asset Types

• Motorbikes

• Scooters

Source of Acquisition

The sources from where Two Wheeler loan can be

acquired include the following:

• Sourcing only through authorized main

dealerships (sub dealer/DSA and broker sourcing not

allowed)

Branch walk-ins
• Direct marketing
• Cross sell/marketing programs

41
Eligibility Condition

42
Two Wheeler Product- Various
Programs Scheme Sheets for Various
Programs

Now that we are aware of the features of the Two

Wheeler product, let’s look at the various programs

that come under the Two Wheeler product.

43
The schemes under all programs differ in terms of:

• IRR

• Interstates

• Tenure offered

Let’s look at the various programs now

Product program-Normal LTV

Product Program-Fuller LTV

Fuller LTV will be offered to only those who have

income Doc with
regular banking and average bank balance is equal to
EMI

44
Product Program – 85% LTV Income Dox
Program
In this all income document are collected (salary
slip/certificate, ITR &
banking)

Product Program – 70% LTV No income Dox

Program
Features
• The target segment for this program is customers
who are unable to
provide income documents.
•
Two CPA determines the income; 75% of the CPV –
based income is

45
considered for CFA purpose

•
Maximum tenure is 30 months, EMI is not more than
Rs.2000 ,and
LTV is 70% vehicles ORP

Product Program -50% LTV Fast Track No

Income Dox Program

Ownership Proof Surrogate Program – Features

•
This is a track approval program in which customers
need to submit
the ownership proof
TVR is conducted case can be approved LTV up to
50%
• Maximum tenure is 18 months

Product Program – Fast Track

46
Customer Value proposition

As opposed to competitors, Fullerton offers the

following benefits to its customers:

• Creates new market by offering 100% finance

typically to boost the Economy Two Wheeler

Segment.

• Local credit faster TAT

• Local disbursement within 48 hours from the date-

of-delivery order (DO)

Based Model

• In 2& multi-branch location –dedicated branches

to service the dealer

• Convenience to customer –Present in small

locations

Additional Charges

47
Mentioned below are some additional charge that are

levied in case of cheque swap, prepayment /

preclosure, cheque bounce and penalty:

• In all the schemes an additional 2.5% processing

fee on total loan amount and Rs.200 stamp charges

are applicable

• Cheque swap charge: Rs 500

• Prepayment charge: 4%

• Cheque bounces charge: Rs 200

• Penal charge Rs.250

Two Wheeler – Insurance Covers

Types of Insurance Covers

Let’s look at the Two Wheeler covers offered by

Fullerton

Two Wheeler- Insurance covers

Fullerton offers two types of insurance covers for Two

Wheeler product

• Bajaj Allianz

• ICICI Lombard

Fullerton has tie ups with both Bajaj Allianz and ICICI

Lombard.

48
Sampoorna Suraksha Two Wheeler Loans

Various offers under sampoorna suraksha two

wheeler Loans

• All customers opting for the Two Wheeler

Sampoorna Suraksha are covered Personal

Accident and Disability Cover of Rs 1 lack Life

• Insurance Cover of Rs 25,000

• Critical illness Cover of Rs10,000

• All customers aged between 20 to 40 years will

be covered for the above benefits for price of

Rs.1, 299.

• All customers aged between 41 to 59 years will

be covered for the above benefits for price of

Rs.1, 599

• Critical illness Cover will not be available for

all individuals above the age of years.

Product Coverage

Life Insurance Cover: In case of any unfortunate

incident (death), the sum assured proceeds will be used

49
to clear the outstanding loan amount. The excess

amount, post clearance of the outstanding loan amount

will be given to the customer’s nominee.

Exclusions:

Death due to suicide will not be covered during the

first 12 month

Any other exclusion will be decided on medicals only.

9Critical illnesses:

The nine critical illnesses covered under the plan are

cancer, coronary artery bypass surgery, myocardial

infarction-heart attack, end stage renal failure, major

organ transplant, stroke, paralysis, and heart value

replacement surgery and end stage liver disease. The

sum assured will be paid on occurrence of any of these

illnesses.

50
Exclusions:

Pre –Existing condition

 Any critical illness discovered within 90 days

of inception of the policy

 Diagnosis after end of the policy period

 If the advice/recommendation for

hospitalization and post hospitalization

domiciliary treatment and the period therefore

is not evidenced by a medical certificate issued

by the attending doctor

51
Accidental Death Cover:

The sum assured will be paid when the death of the

insured person is within a period of twelve months

from the date of bodily injury, and such bodily injury

is the sole and direct cause of the insured person.

Permanent Total Disability:

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

only if the disablement result in inability to remain

gainfully employed. it covers bodily injury resulting

solely and directly from accident, caused by external,

violent, and visible means . if such injury shall within

twelve months of its occurrence be the sole and direct

cause of the total and irrecoverable loss of

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

actual loss by physical separation of two entire

hands

 One foot or both feet

 One entire hand and one entire foot

 One entire hand

52
Exclusions:

 Death from intentional self-injury, suicide or

attempted suicide

 War and acts of terrorism

 Whilst under the influence of intoxicating

liquor or drugs

 Directly or indirectly caused by venereal

diseases or insanity

 Directly or indirectly caused by contributed to

or aggravated or prolonged by childbirth or

pregnancy or in consequence thereof

 Engagement in dangerous activities

 Mental disorder or psychosomatic dysfunction

 Permanent Total Disability resulting from any

injury ,sickness ,or disease for which medical

care, treatment, or advice was recommended by

or received from a doctor or from which the

insured person suffered or which was present

before the commencement of the period of

insurance

53
Difference b/w secured

loan and unsecured loan

You have decided to push the boat out and you decide

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

And with all the advertising on TV and in newspapers

for secured loans, unsecured loans etc it leaves you

with a dilemma on what type of loan will be best for

your purchase and wallets, what are the differences

and what are the pros and cons of each one.

Secured Loans

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

reason a lender will want to secure the loan on your

property is that they want some form of collateral

should you not be able to pay your loan back. So think

of these loans in a similar way to your mortgage which

is also a big loan secured against your home. As a

result the lending companies

will always make it clear with the following statement:

54
"THINK CAREFULLY BEFORE SECURING

OTHER DEBTS AGAINST YOUR HOME. YOUR

HOME MAY BE REPOSSESSED IF YOU DO NOT

KEEP UP REPAYMENTS ON A MORTGAGE OR

ANY OTHER DEBT SECURED ON IT"

The main advantage of a secured loan is that you will

be able to borrow larger amounts of money and also

benefit from lower interest rates than unsecured loans.

As the loan is borrowed against a property it is only

open to homeowners and tenants cannot apply.

Unsecured Loans

These types of loans are the complete opposite to

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

house as collateral. As a result most lenders will only

allow you to borrow up to large amount although

depending on your credit history some lenders may

allow you to borrow up to the same amounts as a

secured loan.

The interest rates on an unsecured loan are also higher

and can be as much as 10%. So the repayment amount

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

unsecured loan can be significantly lower. Unsecured

loans are also available to Tenants, which makes the

55
demand for them to be much higher.So what type of

loan should you try? As you can tell from the above it

depends really on whether you are a homeowner or not

and whether you want to take the risk of securing a

loan against a property.

Armed with this information you should make a

decision based on the above factors along with

whether you can make the repayments ir-regardless of

what type of loan you try. Not keeping up with

repayments on either type of loan will give you a bad

credit rating for the future so think carefully before

you apply and don't borrow any more than you can

afford.

• Home Equity Loans:- A home equity

loan (sometimes abbreviated HEL) is a type of loan in

which the borrower uses the equity in their home

as collateral. These loans are useful to finance major

expenses such as home repairs, medical bills or

college education. A home equity loan creates a lien

56
against the borrower's house, and reduces actual home

equity. Home equity loans are most commonly second

position liens (second trust deed), although they can

be held in first or, less commonly, third position.

Most home equity loans require good to

excellent credit history, and reasonable loan-to-value

and combined loan-to-value ratios. Home equity loans

come in two types, closed end and open end. Both are

usually referred to as second mortgages, because they

are secured against the value of the property, just like

a traditional mortgage. Home equity loans and lines

of credit are usually, but not always, for a shorter

term than first mortgages. In the United States, it is

sometimes possible to deduct home equity loan

interest on one's personal income taxes.

Difference between a

home equity loan and

Home Equity Line of

Credit

57
 A HELOC is a line of revolving credit with an

adjustable interest rate whereas a home equity loan is a

one time lump-sum loan, often with a fixed interest

rate.

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

home equity line of credit, where the borrower can

choose when and how often to borrow against the

equity in the property, with the lender setting an initial

limit to the credit line based on criteria similar to those

used for closed-end loans. Like the closed-end loan, it

may be possible to borrow up to 100% of the value of

a home, less any liens. These lines of credit are

available up to 30 years, usually at a variable interest

rate. The minimum monthly payment can be as low as

only the interest that is due.

Typically, the interest rate is based on the Prime

rate plus a margin. When considering a loan, the

borrower should be familiar with the terms recourse

and non recourse loan, secured and unsecured debt,

and dischargeable and non-dischargeable debt.

US traditional mortgages are usually non recourse

loans. "Non recourse debt or a non recourse loan is a

secured loan (debt) that is secured by a pledge of

collateral, typically real property, but for which the

58
borrower is not personally liable."[1] A US home equity

loan may be a recourse loan for which the borrower is

personally liable. This distinction becomes important

in foreclosure since the borrower may remain

personally liable for a recourse debt on a foreclosed

property.

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

secured against the collateral — in the event that the

borrower defaults, the creditor takes possession of the

asset

59
used as collateral and may sell it to satisfy the debt by

regaining the amount originally lent to the

borrower."Credit card debt is an unsecured debt such

that no asset has been pledged as collateral for the

loan. Using a home equity loan to pay off credit card

debt essentially converts an unsecured debt to a

secured debt.

When deciding upon a type of loan, the borrower

should also consider if the debt is dischargeable in

bankruptcy. For instance, US student loans are

"practically non-dischargeable in bankruptcy"

Home equity loan fees

A brief list of fees that may

apply home equity loans:

 Appraisal fees

 Originator fees

 Title fees

 Stamp duties

60
  Arrangement fees

 Closing fees

 Early pay-off fee

.Appraisal fees:- Charges payable to

a qualified appraiser for estimating the market value of

a property, as a fixed fee or one based on

a percentage of the estimated value.

Originator fees:- A fee related to establishing your

loan. The exact use can be unclear, but the fee

ultimately compensates your lender or broker for

putting your loan in place.

Examples:

The average home buyer can expect to pay between

0.5% to 1% for origination fees

Title fees:- Buying or selling a home comes with

closing costs on both sides. Most commonly, these

closing costs are referred to as title fees. While some

closing costs will be incurred from a lender, when

61
selling a home, the majority of the fees for a seller

will come from the title company. Title companies

keep on file all information about a property, its

boundaries and any liens or negative information

attached to a home or piece of land

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

like the sales tax and income tax that are collected by

the Government. All such taxes must be paid in full

and on time. If you make delay in the payment then

you have to face the penalty. Penalty involves fine or

even imprisonment. If you want to produce any

instrument or document in the court, it needs to be

done on the stamp paper only then it is considered

valid and can be used as an evident. The court cannot

admit instruments or documents that are not properly

stamped as evidence

Arrangement fees:- The arrangement fee is

charged to cover administration and primarily

reserving the funds for fixed rate and/or

discounted rate mortgages. This fee may be

paid separately added to the mortgage or in

rarer cases taken from the mortgage loan.

Arrangement fee is commonly added to

62
 the spread in Euro syndicated and syndicated

loans.

Our Vyapaar branches provide customized products

and solutions, especially designed keeping in mind

the unique circumstances and requirements of this

segment . India has a large self-employed population

running small and basic businesses. When these

businesses need financial support to grow and realize

their full potential, the limited access to organized

finance becomes a big retardant in their growth. For a

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

will come only if basic businesses (the mass market)

graduate to the next level of empowerment and self-

sufficiency.

Fullerton India Vyapaar strives to

improve the business and lives of the small business

community. Our business is focused only on small

63
establishments with turnover of less than Rs.25 Min

per annum.

The key elements are as follows:

• The business envisages setting

up branches with employees dealing

directly with the customers. This offering has

elicited an enthusiastic response from our

customers as it gives higher degree of

transparency and faster value delivery.

• The relationship model includes a deep

assessment of a customers' business resulting in

an omnibus facility with a flexible combination

of usage in parts, flexibility between a

combination of short and long tenures, and

from unsecured to partially

secured and fully secured facilities. The facility set up

for a customer is based on his risk profile, repayment

capacity, as well as proposed expansion plan.

A Relationship Officer is assigned to address

incremental product needs, as well as for service

64
requirements, through a process of continuous

engagement. The business strives to deliver lifelong

financing support and regular facility enhancement,

based on business growth.

We understand that smaller customers do not create a

distinction between personal borrowing and business

borrowing; the facility is designed to cover both needs.

• The business wishes to bring a full service

proposition encompassing loans and liabilities to the

small business owners. Besides the variety of

loans, life insurance has been introduced which will

also be delivered through the branch based

Relationship Officers.

• The business uses advanced technology

tools to record customer history, and leverage track

record to enhance credit exposure in line with the

customer business cycle. This ensures continuous

support through seasonal peaks.

• Value to customer

Simplicity - Easy to understand, simple process and

standard documentation.

Speed - Average turnaround time in loan processing is

two days.

65
 \Neighborhood financing - Branches are located in

the centre of business hubs convenient from an access

and timing perspective

One Stop Shop - For all business and personal

financial needs

Charges for Two Wheeler:-

Two wheeler Charges

Processing Fees Waived

Pre approved limit(customers Up to 96% of road value

having relationship > 6 months)

Interest Rates 1% rate lower than existing rates

Documentation No Income Proof required.

Only Identity proof required.

66
Special Offer Special offers with manufacturers from time to

time

Priority Processing Yes

Charges for Auto loan:-

Auto Loan

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

showroom value on new cars.
• 90% of the valuation amount for
used car loans.
• Loans tenor up to 5 years.
Repayment in 60 installments.
• 7 years repayment option on
select models.

Documentation (for customer having No income documents required

relationship > 1 year)

Interest rates
Preferential Rate of Interest

67
Special offers FULLERTON INDIA Bank enjoys

preferred financier status with 12 leading

manufacturers and has special tie- ups

with most manufacturer-dealers to ensure

the highest quality service to you.

Priority Processing Yes

Key components of the Company

process:

68
Some of the key advantages of entering

into a relationship with us are:

• Our biggest proposition is our customer focus,

both, in product design/ customization and

69
 service. As an organization, we are structured

not around products but along customer

segments. We have separate verticals for the

Salaried Individuals (Parivaar) and for Small

sized shop owners & Entrepreneurs (Vyapaar).

• This model lends itself to better understanding

of our customers' financial situation and for a

better products offering to them. With this

holistic understanding of our customers, we are

also able to combine secured and unsecured

products and structure the loan in a manner

which is ideally suited to meet individual

customer requirements.

• For the first time in India, our own, company

employed Relationship Officers service the

needs of the customers. There are no agents or

other intermediate, coming in between the

customer and us. These Relationship Officers

are the end-to-end solution providers and act as

a single point of contact" for all Product,

Process and Service related needs of the

customer.

• Our branches do business only within a 5 km

radius. Our customers' office or residence has

to be within the branch coverage area. This

70
closer proximity of our customers to our

branches ensures better under standing of their

local environment and immediate situation.

Loan Disbursement process of

Fullerton India

71
MAJOR CHALLENGES OF THE

ORGANIZATION

72
Challenges in the growth path

The finance industry is going to observe polarization

of the players
For survival, the Housing Finance Institution should
have-:

• Good investment in people and system

• Should have strong Business Origination

process in place

• Excellent Credit Appraisal Skills

• Monitoring the Systems in place

• Strong Collection mechanism in place

• HFI’s survival can be at stake

73
PART
-2

74
INTRODUCTION OF PROBLEM

FULLERTON INDIA offers wide variety of Loans

Products to suit your requirements. Coupled with

convenience of networked branches and facility of E-

channels like Internet, FULLERTON INDIA Bank

brings loan at your doorstep. Select any of our loan

product and provide your details online and our

representative will contact you for getting loans.

The No. 1 Home Loans Provider in the country,

FULLERTON INDIA Bank Home Loans offers some

unbeatable benefits to its customers - Doorstep

Service, Simplified Documentation and Guidance

throughout the Process. It's really easy!

The NO 1 financier for car loans in the country.

Network of more than 1500 channel partners in over

780 locations. Tie-ups with all leading automobile

manufacturers to ensure the best deals. Flexible

schemes & quick processing. Hassle-free application

process on the click of a mouse.

Range of services on existing loans & extended

products like funding of new vehicles, refinance on

75
used vehicles, balance transfer on high cost loans, top

up on existing loans, Extend product, working capital

loans & other banking products. Farm EquipmAvail

attractive schemes at competitive interest rates from

the No 1 Financier for Two Wheeler Loans in the

country. Finance facility up to 90% of the On

Road Cost of the vehicle, repayable in convenient

repayment options and comfortable tenors from 6

months to 36 months. Ride home on your Dream Two

Wheeler with our hassle free finance.

Preferred financier for almost all leading tractor

manufacturers in the country. Flexible repayment

options in tandem with the farmer's seasonal liquidity.

Monthly, Quarterly and Half-yearly repayment

patterns to choose from. Comfortable repayment

tenures from 1 year to 9 years.

76
OBJECTIVES OF STUDY

77
To find the preferences of customer

regarding various types of loan:

This objective focused on the judgment of customer

preferences regarding various types of loan provided

by Fullerton India such as Secured Loan, Unsecured

loans and Home Equity Loan.

78
• To know the amount of loan generally availed

by the respondents: This objective include the

study of the amount of loan which is generally

borrowed by the customers

• To study the Advertising effectiveness in

creating awareness among the public: This
objective will help to judge the effectiveness of
advertising strategy used by Fullerton India to
create the awareness among the potential
customer about the products and services
offered by the company.

• To study the satisfaction level of customer

regarding different loans schemes provided by
Fullerton India Credit Company Ltd.

79
STUDY LITERATURE OF

Products of the Organization:

• Unsecured Personal Loans

• Secured Loans

• Home Finance

• Home Equity Loans

• Insurance

Competitors:

80
 • INDIABULLS Fin. Ser. Ltd

• Mahindra & Mahindra Fin.

• Induslnd Bank Ltd.

• TMFL

STATEMENT OF HYPOTHESIS

A hypothesis is a specific statement of prediction. It

describes in concrete terms what you expect to happen

in your study. Not all studies have hypothesis. There is

no formal hypothesis, and perhaps the purpose of study

is to explore some area more thoroughly to develop

some specific hypothesis or prediction they can be

tested in future research.

Two kinds of hypothesis, these are as follows

• Alternative hypothesis, usually the

hypothesis we support and the hypothesis that

describes the remaining possible outcomes

are termed the null hypothesis.

Alternative hypothesis is denoted from HA or

H1

• Null Hypothesis is denoted from HO or H0.

81
For this study researcher found general or alternative

hypothesis suitable and according to researcher the

alternative hypothesis for this study is:

According to research to performance appraisal in

FULLERTON INDIA, the hypothesis is mention

below:

82
Method of performance appraisal is faire enough.

Performance appraisals by experts or staff managers

are more accurate than appraisal done by

peer group.

Monthly performance appraisal keeps employees in

discipline and dedicated towards their jobs.

4. Performance appraisal has considerable impact on

satisfactions of employees.

Scope of study
83
• In present scenario with the growing

complexities of the industrial society, work is

simply a means of earning a living this appears

to be an over simplification. Work serves many

other functions for an Individual. An individual

sense of well being, of doing something

worthwhile, of having some considerations,

may be so compulsive that man may continue

to work even if they are not pressed by

Economic needs.

84
• Performance appraisal provide needful helping

for the following:

• Status

• Job Security

• Feelings of Recognition

• Feeling of Achievement

• Feeling of Possible Growth

• Feeling of Responsibility

• Group Feelings

• Feeling of Interest in the performance of Job.

• Feeling of Increase Status

• Performance Effects

• Change in rate of output.

• Change in Quality of Work

• Effects on Interpersonal Relationships

85
Research design

Methodology is the study of methods it deals with the

philosophical assumption underlying the process of

research.

A method is specific technique for data collection

under certain philosophical assumptions.

The practical work that lies between the theoretical

framework and practical analysis.

MOTIVATION IN RESEARCH

• Desire to get a MBA degree as well as

research certificate from the respected

divisions.

• Desire to face the challenge in solving

the unsolved problems i.e. to help

Fullerton India in performance

appraisal.

• Desire to get intellectual joy of doing

some creative work in Fullerton India.

86
 • Desire to be of service to society i.e.

making other banking sector to realize

use of performance appraisal.

DATA PRESENTATION:-

There are two basic approaches to research via,

quantitative approach and qualitative approach. The

former involves the generation of data in quantitative

form, which can be subjected to regress quantitative

analysis in a formal and rigid fashion. This approach

can be further sub classified into inferential,

experimental and simulation approaches to research.

This project research is based on qualitative approach

where research is concerned with subjective

assessment of attitudes, opinions and behavior of the

employees, the knowledge they have related with their

87
job or having extra knowledge which will be helpful

for the organization.

Basically two type of method

1- Primary data

2- Secondary data

Primary Data

Primary Data are those, which are collected afresh and

for the first time, and thus happen to be original in

character. We collect primary data during the course

of doing experiments in an experimental research but

in case we do research of the descriptive type and

perform survey s whether sample survey or census

surveys, then we can obtain primary data either

through observation or through personal interviews. In

other words, means there are several methods of

collecting data.

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

of which one can explore the realities hidden insight.

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

this research structured mixed questionnaire have been

formulated by various item analysis. Questionnaires

88
have been sending through e- mail to various places to

employees for response.

Secondary Data

Analysis of secondary data includes the review of the

news and articles published in newspaper or magazines

regarding Fullerton India Credit Company Limited.

Article 1

Fullerton India Credit adopts Newgen’s BPM solution

Newgen Software Technologies Limited announced the

successful implementation of its BPM solution (based

on Newgen Omni Flow™) at Fullerton India Credit

Company Limited (FICCL).

NEWGEN SOFTWARE Technologies

Limited, a market leader in Business Process

Management (BPM) and Enterprise Content

Management (ECM), with impeccable track record of

implementing mission-critical workflow and document

imaging solutions, announced the successful

implementation of its BPM solution (based on Newgen

Omni Flow™) at Fullerton India Credit Company

Limited (FICCL).FICCL, one of the largest capitalized

Non-Banking Finance Companies(NBFC) in the

country has taken a steep target of setting up a total of

89
800branches in the country by the end of 2009 (Till

now, the company has setup over 650 branches).

Speaking of Newgen’s solution that has helped the

FICCL in gearing up to meet its targets, Pramod

Krishnamurthy, executive vice president, technology,

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

for Fullerton India’s rapid growth and ramping up of

operations is the excellent support provided by the

Newgen team. Their state of the art workflow routing

and imaging system (Omni flow) has met our dynamic

requirements very well; it has enabled us to provide

high level of customer service internally and

externally. We look forward to a continued long-term

association with them as a valuable partner in our

growth.”

Newgen’s implementation at FICCL

covers the entire gamut of processes including loan

origination and booking, collections and prospect

tracking, loan against gold and early warning

processes. FICCL currently has more than 350

branches across the country. Number of concurrent

users (users across the branches who can be

simultaneously logged into the system), which is

90
already over 900, is expected to grow up to 1500 in

near future. Speaking of the successful implementation

at FICCL, Punit Jain, vice-president, sales and

marketing, Newgen Software Technologies, said,

“Inline with our objective to be an end-to-end BPM

solution provider, our solution has offered FICCL

continuous process improvement, rapid results,

visibility and control. With this implementation, we

are glad to support FICCL in reaching its steep targets

and establishing a strengthened network in India.”

Newgen Omni Flow™ 5.0 is a platform

independent, scalable BP solution that enables

automation of organizational business processes. It is a

complete software solution to design, deploy, modify,

monitor and manage business processes, involving

minimal

programming effort, and is easily deployable thereby

enabling enterprises to streamline their business

processes for greater efficiencies. Built using open

technologies Newgen Omni Flow™ has seamless

integration abilities allowing it to be introduced into

almost any existing IT infrastructure. About Fullerton

India Credit Company Limited Fullerton India Credit

91
Company Limited, a fully owned subsidiary of

Fullerton Financial Holdings, Singapore, is the fastest

growing financial services company in India with an

equity capital base of US$150 million (Rs 7 billion).

The company follows a relationship led, community

based business model with close proximity and

engagement with the customer to effectively reach out

to them. In a short span of time the company has

disbursed over 1800 core rupees, opened more than

400 branches spread across 150 locations and has more

than 8000 employees on its rolls.

Newgen Software Technologies Limited is

a market leader in Business Process Management

(BPM) and Enterprise Content Management (ECM),

with impeccable track record of implementing

mission-critical workflow and document imaging

solutions. We have a global footprint, with an

Installation base of more than 700 customers in over

25 countries. More than 40 of our customers are

Global Fortune 500 companies. Having domain

expertise in industry verticals such as Banking,

Financial Services, Insurance, BPO, Telecom, e-

Governance and manufacturing among others, we are

known as one of the fastest implementers of BPM

solutions in the world. The sales and support offices

92
span across major cities in Asia, North America,

Europe, Africa and the Middle East.

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

Market Leadership Award for Document Management

and Workflow Software & Services for2006’ and

‘Distinguished Application Product Company’ by

NASSCOM ,Newgen Software is an ISO 9001:2000

certified and CMM Level 4 company

Review of Article 1:

The first review based on the article published in web site

BPM.com. This article talks about the adoption of

Newgen’s BPM solution for their Business process

management. NEWGEN SOFTWARE Technologies

Limited is a market leader in Business Process Management

(BPM) and Enterprise Content Management (ECM), with

impeccable track record of implementing mission-critical

workflow and document imaging solutions, has announced

the successful implementation of its BPM solution (based

on Newgen Omni Flow™) at “Fullerton India Credit

Company Limited”. Fullerton India has taken this step to

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

93
the country by the end of 2009 (Till now, the company

has set up over 650 branches).

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

targets and another importance of this step is rapid growth.

It also enables Fullerton India to provide high level of

customer service internally and externally .Newgen’s

implementation at FICCL covers the entire gamut of

processes including loan origination and booking,

collections and prospect tracking, loan against gold and

early warning processes.

Article: 2

Fullerton India Credit Company Limited (FICCL) has

bagged the Gold award for Excellence in Business Process

Management (BPM) and Workflow with Newgen

Software’s BPM solutions. The company has bagged the

award for the Pacific Rim region.

The Global Awards for Excellence in BPM and Workflow

recognizes user organizations that have demonstrably

excelled in implementing innovative business process

solutions to meet strategic business objectives. The awards

are given for five geographical regions: Europe, Middle

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

& Central America with each region receiving one Gold

94
and one Silver Award. In order to streamline the workflow

and imaging process, Fullerton deployed the BPM solutions

provided by Newgen. The implementation by Newgen

Software at FICCL covered the entire gamut of processes

including loan origination and booking, collections and

prospect tracking, loan against gold and early warning

processes. FICCL currently has more than 825 branches

across the country.” We are honored to have been

presented with this award. One of the most important

factors which contributed to our success has been the ease

with which business process change has been enabled

through Newgen’s Omni Flow. The solution has enabled us

to do this quickly and economically”, said Pramod

Krishnamurthy, executive vice president, technology

,FICCL.Speaking of the successful implementation of their

solution Rajvinder Kohli, VP—Sales, Newgen Software

Technologies, said, “The recognitions a reflection of our

commitment towards our customers to provide them with

best services. The deployment of Omni Flow BPM Suite at

Fullerton India Credit has created history by enabling them

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

solution provides total automation for Loan Origination,

CRM and Collection processes, including implementation

of a unified interface that integrates four different core

applications seamlessly.” About the awards The annual

Global Awards for Excellence in BPM and Workflow is co-

sponsored by WFMC, BPMFocus.org and BPM.com and

95
now in their 15thyear. While judging the winners, particular

attention is paid to implementations that have showed

processes extending beyond the corporate boundaries to

support customers, suppliers, trading partners and more.

About Newgen Software: Newgen Software

Technologies Limited is the market leader in Business

Process Management (BPM) and Document

Management System (DMS),with a global footprint of

about 700 installations in over 30 countries .More than

100 of these implementations are large, mission-

critical solutions deployed at world's leading BFSI,

BPO and Fortune Global 500companies.

Newgen is recognized by distinguished analyst firm

IDC in its exclusive report “Newgen Software: Global

Leader in Business Process Management and

Document Management Solutions.” Winner of

prestigious awards, such as CNBC-TV18 “Emerging

India Award 2008”, Frost and Sullivan's “Market

Leadership Award for Document Management System

and Workflow Software & Services” and”

Distinguished Application Product Company” by

NASSCOM, Newgen Software is an ISO 9001:2000,

ISO 27001 certified and CMM Level 4company.

96
Review of Article: 2

Second Review is based on the article published in

similar web site i.eBPM.com. This article reveal about

the gold award won by Fullerton India Credit

Company Limited (FICCL) for Excellence in Business

Process Management (BPM) and Workflow with

Newgen Software’s BP solutions. The company has

bagged the award for the Pacific Rim region. This

Awards for Excellence in BPM and Workflow

recognizes user organizations that have demonstrably

excelled in implementing innovative business process

solutions to meet strategic business objectives

ANALYSIS OF DATA:-

The following information contains the data

interpretation of the questionnaires. The respondent’s

responses for the questions have been interpreted and a

finding has been made based on the respondents

responses

.
Table 1: Age of the Respondent

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Interpretation: - The respondent of research

comprises of 30% of 18-28

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

20% of more than 50years. This classification of age

group is required to know the perception of person for

taking loan at different stage of life. Generally

Fullerton India provides loan to salaried individuals

and new entrepreneurs, hence the company should

focus on respondents’ b/w 18-38 yrs of age.

Table 2:- Annual Income of the Respondent

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Interpretation: - Second classification of respondent

is based on the basis

Of their annual income. This classification is done to

know that mostly which income level people have

more demand for loan. This research is targeted to

know the demand of loan by salaried individual and

small entrepreneurs. The company should focus on

respondents with an annual income of 1-5 lakhs in

order to avoid delinquency.

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Table 3:- Occupation of the Respondent

Occupation Percentage

Government Employee 30.0%

Private Employee 25.00%
Businessman 45.0

Interpretation:- The third important consideration

which helps to identify
That whether the respondent is salaried individual or
small entrepreneurs is occupation. The occupation
comprises of Government Employee, private employee
that fall into salaried individual category and third
component of occupation is Businessman which
indicates small entrepreneurs.

Table 4:- From which source you knew about the

various schemes of Fullerton India?
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Interpretation: - This question is asked in order to

know the effectiveness.

Of the advertisement strategy adopted by Fullerton

India. The result found by the survey shows that most

of the customer knew about the various loan schemes

through news paper & internet. Therefore company

can make more use of the news paper and internet to

increase its customer base. Secondly the company also

getting the benefit of its existing customer to advertise

its product, because 24% of customer knew about the

schemes of Fullerton India through their friends who

had taken loan from Fullerton India. Fullerton India is

101
not making use of Television media frequently because

it is very costly; therefore resultantly it contributed

only 12% in creating the awareness among the

customer regarding various schemes of Fullerton India

Table 5:- Table of Customers having loan or no

Interpretation:-The answer to the above question

reveals the fact.

102
Whether the respondents have taken some kind of loan

from any source or not. The findings reveal that 70%

of the respondents have taken loan while30% have not

taken any kind of loan.

Table 6:- How much respondent having loan from

other companies?

Interpretation:-The findings reveal that out of the

total respondents

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

have taken two types of loan while 10% have taken

103
more than two types of loan. This fact has to be

considered by the company while accessing whether to

provide loan to the respondents or not

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

104
Interpretation:-The above findings reveal that out of
the respondents
Having loan, 35% have taken loan of 50,000 or less,
45% have taken loan from 50,001 to 1, 00,000 and the
remaining 20% have taken a loan of 1,00,000 and
above. This parameter gives more knowledge to the
company regarding the probability of default by the
respondents and should be given more weight age by
the company compared to the no. of loans taken by the
respondents while deciding whether to provide loan to
the respondent or not

Table 8:- Type of loan Customer has?

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Interpretation: - The finding reveals that 50% of the
respondents have
Taken personal loan, 20% have taken mortgage loan,
15% have taken home loan, and 10% have taken two
wheeler loans while remaining 5% havetaken other
type of loans.

Table 9: - Duration of period which the respondent

prefer for paying the
Loan amount?

106
Interpretation: - The finding reveals that most of the
respondents (87%) want to take only short term loan
up to 18 months since short term loan carries a
comparatively low rate of interest.

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

charge by Fullerton
India?

YES NO

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67% 33%

Interpretation:- The Fullerton India charges different

rate of interest for
Different programs for two wheeler loans. Therefore
there are some customers who are not satisfied with
the rate of interest. The findings suggest that 67%
customers are satisfied with the rate of interest
charging by Fullerton India and only 33% are
unsatisfied. But the company should review its interest
rates from time to time in order to be competitive in
the market and to improve customer satisfaction
continually

108
Findings

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

respondents have taken loan under parivaar scheme

and only 38% taken loan under Vaypaar scheme.

Therefore it shows that Fullerton India is favorable in

109
short term loan segment which is provided by

Fullerton India under Parivar scheme and especially

for salaried individual.

• The above study depicts that most of the

respondents availed loan of amount ranging

from Rs .2-5 Lakh .Therefore, if Fullerton

India introduce more scheme under this range

to meet the different demand of customers

• The above study depicts that mostly the

respondents preferred the loan having

repayment period from 2-5.Therefore the

company needs to add some more benefits to

the long term period loan so that the demand of

long term loan will increase which increase the

profit of company, because as the repayment

period is long than the source of income

(Interest)is sustain for long period.

110
• Most of the people are satisfied with the rate of

interest charged and by Fullerton India

• Fullerton India mostly disbursed loan as

secured loan, this will provide the safety and it

will avoid the increasing number of Non-

performing asset and bad debts.

• Customers are the main source of new ideas,

and thus their suggestions are vital for every

Company .Majority of the respondents are

satisfied with the services of their present bank

so they do not want any change in the rate of

interest and services, but no one can satisfy

everyone at same time, Fullerton having

respondents who are not satisfied with rate of

interest

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Suggestions

The following suggestions have been formulated on

the basis of above study. These set of suggestions

might help the Fullerton India to improve the quality

of service regarding loan provisions and

simultaneously these suggestions help the Fullerton

India to tackle the competition prevailing in the

market, thereby achieving success in the future.

• Firstly Fullerton India should create awareness

among the common public about the various

loan schemes which they are providing.

• Provide management with information to

monitor delinquency.

• We have to consider about the living standard

of the customers.

• Trade of the customer should be analyzed and

residential information also be strongly

analyzed.

Defining acceptable level of delinquency.

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In order to create awareness regarding the loan

schemes an electronic medium of media can put to use

to advertise about the schemes and services provided

by Fullerton India. This would help to change the

attitude of the people regarding Fullerton India.

• FICCL may adopt somewhat lenient procedure

regarding norms for eligibility to two wheeler loan

facility to attract more customers.

• Fullerton must consider all the products in the

two wheeler segment for providing loan to

fully tap the available market potential.

• Variable late payment charges should be levied

by the company in order to provide greater

customer satisfaction and increase customer

loyalty among the customers who make the

payment generally on time.

• The interest rates should be regularly revised in

order to attract more and more customer. Some

new plans should be introduced regularly to

cater the special needs of customer which

provides them more offerings and benefits.

113
 • New strategies should be made by the company

which enables them to face the competition

with other private leading Non Banking

Financial companies.

• The company needs to focus more on providing

value added services to its customer. This will

create Brand loyalty among customer which

indirectly attract more and more customer

because a satisfied customer will always bring

more new customers.

• The management of company should be more

efficient which enables in quick processing of

the task regarding loans disbursement and loan

collection. This will enable efficiency in the

working capital cycle of the company

Company’s Offerings:

Fullerton India Credit Company Limited

offers a range of financial products and solution, tailor-

114
made for the Salaried Individuals (Retail Mass Market)

and the Small sized Shop-owners and business man.

Entrepreneurs (Commercial Mass

Market). “Fullerton India Credit Company Limited is

present through branches, separately for these two

business segments. Fullerton India Credit Company

Limited branches are always only a short distance

away from Fullerton India Credit Company Limited

customer’s workplace or home.

Fullerton India Credit Company Limited service

Fullerton India Credit Company Limited customers

only through Fullerton India Credit Company Limited.

Each of Fullerton India Credit Company Limited

customers are assigned a dedicated Relationship

Officer who acts as the

Primary contact point for all the financial requirements

of Fullerton India Credit Company Limited customers.

115
 Limitation of Liability
.1- These terms and conditions shall be governed by

and construed in accordance with Indian law. In the

event of disputes, controversies, differences of opinion

and claims arising out of or in connection with

Fullerton India Privilege Program or in any way

relating hereto or any term, condition or provision

herein mentioned or the construction or interpretation

thereof or otherwise in relation hereto, Fullerton India

and Member shall first endeavor to settle such

differences, disputes, claims or questions by friendly

consultation and failing such settlement, the same shall

be referred to Arbitration of sole Arbitrator, to be

appointed by Fullerton India for determination of

specific issues/disputes. Such arbitration shall be held

in accordance with the Arbitration and Conciliation

Act, 1996 or any statutory modification or re-

enactment thereof for the time being in force and shall

be held in Mumbai and be

conducted in the English language.

116
2-The Fullerton India Privilege Program shall be

subject to usual force majeure events and on

occurrence of such event, the scheme shall deem to be

automatically withdrawn.

3-. All communication /notice with regard to this

scheme should be addressed to:

4- In all matters relating to the Fullerton India

Privilege scheme, the decision of the Company shall

be final and binding in all respect.

5- The Fullerton India Privilege Program is not

available wherever prohibited

Summary conclusion:-

A charge applied by the company is low which is very

good for the company. It helps to make the company

work better and show good result. This will help the

company grow financially The analysis suggests

that Fullerton will benefit and recover its

investment in a shorter time compares to

its original plans as the company fulfill its

117
agenda to roll out the system to more

branches in coming years opening of more

branches will help company to connect to

the people more easily . the growth rate

of company is good as compare with the

other finance company .company is also

planning to make paper less so that its

customer feel more easy to apply for the

loan Quick View tool helped Fullerton India users to

view the most current information which enables them

to focus on areas requiring immediate attention. “It is

easier for the users to see the data graphically and slice

and dice information quickly. Its intuitive user-

interface, ease of use and

Flexible features helped them to drill down the data

and make easy access to all book keeping records in a

summary form Fullerton plans to deliver

additional products and services via

Biometric solutions, will likely increase the

benefits of the product delivery system

further for both Fullerton and the end

customers

118
 PA

RT - 3
119
 BIBLIOGRAPHY

Research Methodology by

Kothari

(C.R.

“: Methods and Techniques”)

Marketing management by

Philip Kotler

Business world

Websites referred:
120
 • http://www.emeraldinsight.com

• www.icicibank.com

• www.hdfcbank.com

• www.fullertonindia.com

• www.fullertonindia.com

Annexure:-

QUESTIONNAIRE

Respected Sir/Madam,

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

course curriculum, I am doing the market research

on “business loan and personal loan disbursing loan

and sales”. So, I need your valuable view for the

questions given below. I shall be grateful to you.

Name:-________________________

Address:-________________________

121
________________________

________________________

1 .Age of the Respondent?

A. 18-28yrs

B. 28-38 yrs

C. 38-50 yrs

D. More than 50

2. Annual Income of the Respondent?

A. Below 1 Lakh

B. 1-2 Lakh

C. 2-5 Lakh

D. 5 Lakh and above

3. Occupation of the Respondent?

A. Government Employee

B. Private Employee

C. Businessman

122
4. From which source you knew about

the various schemes of Fullerton

India?

A. News Paper

B. Television Media

C. Internet

D. Friends

5. Do you have a loan?

A. Yes

B. No

6. How many Loans do you have?

A. One

B. Two

C. Two and above

7. How much loan amount you have?

A. Up to 50,000

B. 50,001 to 1,00,000

C. 1,00,001 and above

123
8. Which loan do you have?

A. Personal Loan

B. Mortgage Loan

C. Home Loan

D. Two Wheeler Loan

E. Other Loans

9. Duration of period which the

respondent prefers for paying the loan

Amount?

A.12Months.

B.18Months.

C.24Months.

D. 36 Months and more.

10. Are you satisfied with the rate of

interest charged by Fullerton India ?

A. Yes

B. No

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