SUMMER TRAINING REPORT

On
COMPARISON B/W FINANCIAL
SERVICES PROVIDED BY TATA
MOTORS & HDFC BANK
Develope Fo!
I. S MOTORS
Roorkee, Hardwar (U.K)
S"#$%&&e &o'(!) p(!&%(l *"l*%ll$en& *o! &+e ('(! o* &+e e,!ee o*
MASTER OF BUSINESS ADMINISTRATION
-./.0-./-
INSTITUTE OF MANAGEMENT STUDIES0ROORKEE
Une! &+e ,"%(n1e o*
M)2 FO3IA MEHTAB
IMS4 Roo!5ee
S"#$%&&e B6
ARPIT GUPTA
MBA-3
rd
Sem, Se1 7B8
~ 1 ~

ACKNOWLEDGEMENT
I take this opportunity to express my profound sense of gratitude and
respect to all those who helped me throughout the duration of this proect! I
acknowledge the effort of those who ha"e contri#uted significantly to my
proect! I feel pri"ileged to offer my sincere thanks and deep sense of gratitude
to M)2 Fo9%( Me+&(# :Coo!%n(&o! & &op%1 ,"%e; for expressing their
confidence in me #y letting me work on a proect of this magnitude and
pro"iding their support, help $ encouragement in this proect!!
I am grateful to all our friends for pro"iding critical feed#ack $ support
whene"er re%uired! &here are times in such proects when the clock #eats you
time $ again $ you run out of energy, you ust want to finish it once $ fore"er!
'arents made us endure such times with their unfailing humour $ warm wishes!
And last #ut not least I am &hankful to my ()*!
A+'I& (,'&A
MBA 3rd sem Sec -B.
INSTITUTE OF MANAGEMENT STUDIES0ROORKEE

~ / ~
PREFACE
0ar loan procedure as its name "ery well suggests its meaning that to know that
how car loan procedure works or what type of acti"ity and necessities comes to
take a car loan!
1or the proper study regarding car loan procedure there is need to take a
appropriate knowledge from the #oth loan pro"iders!
It is a "ery good su#ect to study! By the help of this su#ect I ha"e knew that
hoe can a person takes a car with is a minimum amount! 2ow days there are no!
of cars are purchasing #uy the customer #y the help of loan!
~ 3 ~
DECLARATIONG
I Arpit (upta student of MBA 3
rd
sem from IMS, +oorkee declare that all the
information, facts $ figure represented in this report are actual and collected #y
me in my summer training proect 3 comparison #4w financial ser"ices
pro"ided #y &ata Motors $ 5*10 Bank 6 with special reference to 3&A&A
M)&)+S 1I2A27 8IMI&7*, +))&9776
:ARPIT GUPTA;
~ : ~
T(#le o* Con&en&)
I! Acknowledgement
II! 'reface
III! *eclaration
I;! 1aculty certificate
;! 0ompany certificate
/2 In&!o"1&%on
Co$p(n6 p!o*%le<<<<<<= &. />
-2 Re)e(!1+ Me&+oolo,6 <<<<<<<2 </? &o /@
A2 C(! lo(n p!o1e"!e<<<<<<<<<<-. &o -@
B2 Co$p(!%)on <<<<<<<<<<<<2222-@ &o A>
>2 F%n%n,) <<<<<<<<<<<<<<22 A? &. AC
?2 S",,e)&%on2222222222222222222222222222222222222222222222222222222222A=
C2 Con1l")%on2222222222222222222222222222222222222222222222222222222222A@
=2 Re*e!en1e)<<<<<<<<<<<<<<B.
=2 AnneD"!e)2222222222222222222222222222222222222222222222222222222222B/ &. >?
~ < ~

~ = ~
INTRODUCTION OF
TATA MOTORS FINANCE LIMITED
)"er fi"e decades of expertise in "ehicle financing, &ata Motors 1inance 8td, is a su#sidiary
company of &ata Motors 8td! 7sta#lished in 1><?, it is engaged in financing entire range of
passenger cars $ commercial "ehicles manufactured #y &ata Motors 8td !
@ith a core purpose to reach out $ help customers realiAe the dream of owning a &A&A
"ehicle easily, it is present across 1<BC locations and at all &ata Motors 8td authoriAed
dealerships!
*ri"en #y trust of more than / million customers, company is the largest financiers of "ehicle
manufactured #y &ata Motors ltd ! schemes designed to suit e"ery customer re%uirement,
flexi#le repayment options, hassle-free eligi#ility criteria, simple documentation and fast
sanctioning process makes us the preferred choice of any customer desirous of owning a &ata
car of commercial "ehicle !
~ ? ~
ABOUT TMF
&ata Motors 8td pioneered commercial "ehicle financing in 1><? in the name of B5'0
DBureau for 5ire 'urchase and 0reditE! &ata Motors 1inance 8td D&M18E, came into
existence in Fune /BB3! &his was a common front endG ointly formed #y B5'0 DDBureau for
5ire 'urchase and 0reditE of &ata Motors and the asset financing arm of erstwhile &ata
finance 8td! &his company was "irtual entity, with #oth the di"isions maintaining their legal
identity, and was in the market for exclusi"ely financing &ata Motors "ehicle! Su#se%uently
&ata 1inance was merged &ata Motors in April /BB< &M1 #ecame a di"ision of &ata Motors!
&o date, &M1 is the largest financer of "ehicles manufactured #y &ata Motors 8td! @ith
more than / million customers financed, &M1 reaches out $ helps customers realiAe their
dream owning a &ata "ehicle easily!
At &M1, company.s "ision is to #e the most admired and successful "ehicle "ehicle finance
company adhering to the core "alues as part of the &ata group!
~ H ~
WHY TMFL
&M18 offers a com#ination of growth prospects, fairness and a great work culture! &M18
offer challenging assignments and ample opportunities to train, learn, and execute the most
demanding assignments! It #elie"e that in"esting in people.s growth reaps the #est di"idend!
It pro"ides programmes in leadership and learning for its employees!
Addressing the e"er changing needs of its employees, &M18 has created an e-learning
solution a"aila#le to all its employees! It is a "irtual campus with a -&+AI2I2( )2
*7MA2*. facility ena#ling indi"iduals to #e in complete charge of their learning
experience!
Its appraisal process is fair an transparent! It ensures that position is decided upon #y a fair
and open merit system and not #y extraneous factor!
&M18 offers you career opportunities in core #usiness functions like sales, collection, credit,
risk, operations etc!
Its commitment to human "alues and social responsi#ility has played a significant role in its
success story so far! A career at &M18 means a lifelong opportunity to explore your
potential, continuous growth, and working with the finest minds in the industry!
~ > ~
PRODUCTS & SERVICES
0ompany is pro"iding many products $ ser"ices! Some of them are as follows -I
'ioneering the "ehicle finance #usiness since 1><?, it has dri"en #y trust and &ata 7thos!
At &ata Motors 1inance, we understand customer need and stri"e to reach out and help them
realiAe the dream of owning a &ata "ehicle, easily!
It is a largest financer "ehicle manufactured #y &ata Motors 8td and you can reach them
anywhere at :BBC outlets of the &ata Motors dealers in India!
It is pro"iding "arious product and ser"ices! &ata group is emerging in different HB
#usinesses! ;ehicle finance is a maor source for selling its "ehicles! It is ha"ing its own
financing company so a person ust has to go at the showroom of &ata Motors and he can
purchase a car easily!
~ 1B ~
/0 S(le o* ve+%1le)
0ompany sales four types of "ehicles are as follows-I
aE 'assenger cars
#E 0ommercial "ehicle
cE 5ea"y "ehicle
-0 A*&e! )(le )e!v%1e)
If a person purchases a &ata "ehicle then &ata Motors pro"ide him after sales ser"ices
ust like
aE Ser"ice of "ehicle -I after purchasing the "ehicle company gi"es : free ser"ices or
and pro"ides more ser"ices and schemes as per the policy!
#E @arranty JI 0ompany gi"es a full warranty of sold "ehicle like till / years or up
to 1,BB,BBB kms!
3- F%n(n1%n, )e!v%1e) -I 0ompany pro"ides financial ser"ices like financing of
"ehicle for those persons who are una#le to pay the whole amount at once! 0ompany
gi"es a financing facility to needy person so that the can pay the amount in the parts!
0ompany charges a interest for financing the amount! 0ompany finance all types of
"ehicles like -I passenger cars, used "ehicle, commercial "ehicles!
~ 11 ~
:- T(&( ())"!e ep(!&$en& -I 0ompany has a different department in which
company takes an old car from its customer and gi"es a market price of that on the
other hand company finance a car to customer and the "alue of old car reduces from
the price of new car! &his type of acti"ity gi"es a chance to customers to purchase a
car!
FEATURES OF ITS LOAN PRODUTS
&here are some "alua#le features of its loan products and some of them are as follows -I
1- Pe!)on(l%9e )e!v%1e (& 6o"! oo!)&ep -I If need arises to go at the
home of the customer or at the "enue where customer has comfort to meet then
company.s executi"es go there!
If customer ha"ing a pro#lem and he calls to the company then also company.s
executi"es go there!
/- T!(n)p(!en& & *(%! e(l -I 0ompany always do the transparent deal!
7"erything shows to the customer nothing keep hidden!
3- S%$ple & e()6 o1"$en&(&%on 0E &he documentation is "ery simple
and easy!
~ 1/ ~
:- F"%15 p!o1e))%n, (n )(n1&%on%n, -I 'rocessing of loan is "ery fast!
@ithin :H hours company finance the car and other ser"ices are also fast!
<- Co$pe&%&%ve !(&e) 0E 0ompany pro"ides lesser rates than other
competitors like -I
aE 8ow interest rates
#E After sales ser"ices rates is also low
cE *ocumentation charges is also low
=- No +%en 1+(!,e) 0E It does take the extra charge like other takes like -I
aE 'rocessing fees
#E Interest rates
cE *ocumentation charges
dE 8oan apply charges
eE )ther charges
?- FleD%#le !ep(6$en& op&%on !(n,%n, /- &o ?. $on&+) -I &he
loan repayment time is sufficient for e"eryone! If anyone can gi"es the payment in
early then he can this or the time can #e increase from 1/ to =B months according
to the norms and condition!
~ 13 ~
RESEARCH METHODOLOGY
1or any researcher the research methodology is the most important criteria to decide #efore
the actual research process starts! &here are many methods for conducting the research some
of them are as under!
&he design of research is a plan or a model that helps a researcher to conduct a formal
in"estigation and sur"ey! It is an application of methods and procedures for ac%uiring the
information needs for getting a desire out come!
It decides the sources data and methods for getting a data! A good designes insures that the
information o#tained is rele"ant to reserasc %uestion and that it was colleted #y o#ecti"es!
Since, research design is simply the framework or plan for a study! It is a #lue print that of a
house de"ised #y an architect!
+esearch methodology is a way to systematically sol"e the research pro#lem!
It may #e understood as a science of studying how research is done scientifically!
~ 1: ~
+esearch as the -manipulation of things, concept or sym#ols for the purpose of
generaliAing to extent correct or "erify knowledge, whate"er that knowledge aids in
construction of theory or in the practice of an art.!
-SystematiAed effort to gain new knowledge.!
~ 1< ~
OBGECTIVE OF RESEARCH
&he aim of this study is to know a#out the loan procedure of financing cars through
&A&A Motors 1inance 8imited and then comparing it with the loan procedure of
5*10 Bank!
&o know a#out the selling strategy of #oth the loan pro"ider!
&o compare the positi"e $ the negati"e points of #oth!
&o know that how can a medium class person purchase a car with a minimum amount!
&o know that how the &ata Motor.s employee sales their car to the needy person
~ 1= ~
DATA COLLECTION
In this study #oth primary and secondary data has used -I
/0 P!%$(!6 (&( +() 1olle1&e #6 0E
aE By o#ser"ation
#E By company. employees -I
B1E Sales manager
B/E 1inance manager
cE By topic guide
-0 Se1on(!6 (&( '() 1olle1&e #6 0E
aE Annual and Monthly +eports of company
#E MagaAines and Articles related to the topic
cE Internet
~ 1? ~
Ho' &+e C(! Lo(n P!o1e"!e Wo!5)
0ar loan procedures in India ha"e some particular steps! Kou can directly apply to a #ank or a
financial ser"ices pro"ider of your preference! *espite the fact that loan application on paper
is the con"entional form of applying for a "ehicle loan, you can also send an online
application since maority of the #anks and financial ser"ices pro"iders prefer online
applications and offer online application facilities! &his sa"es their time and cost! &his also
sa"es money and time for the customers! 0ar loan procedures in India usually comprise the
steps gi"en #elowI
&o #egin with, you ha"e to directly apply for the automo#ile loan to the #ank or
financial ser"ices pro"ider of your choice with all the essential paperwork!
As soon as you send an application for the automo#ile loan, the #ank authority will
su#stantiate all your paperwork, residential proofs, and will also carry out some other
official procedures!
A credit appraisal will #e performed and the amount of loan will #e decided once this
is carried out, only if the applicant is deemed appropriate for the loan and all the
papers su#mitted are genuine! &he loan amount is also dependent on factors such as
your income, your age, spouseLs income Dif anyE, academic %ualification, and o"erall
num#er of dependents of the applicant! 1actors like the total amount of assets, amount
~ 1H ~
of current lia#ilities, and steadiness of employment are also considered! Kour sa"ings
and credit history is taken into account! ,ltimately, your automo#ile loan is issued!
C(! Lo(n Rep(6$en& Op&%on)
&he repayment option of your car loan differs from one #ank to another! &he interest rate and
the maximum loan term also differ from one loan product to another! &he amount of 7MI
De%uated monthly instalmentE is dependent on the interest rate, the loan term, and the amount
of the loan!
T6pe) o* In&e!e)& R(&e
&he interest rate for car loans is charged in two ways - fixed and floating! In case of a fixed
rate car loan, the interest rate stays the same during the entire term of the loan! )n the other
hand, in case of a floating rate car loan, the rate of interest differs in line with the particular
stipulations of the loan agreement!
~ 1> ~
Ne1e))(!6 Do1"$en&)
@hen you are applying for a car loan in India, you ha"e to pro"ide the following documentsI
'roof of income -I Salary slip, #ank statement Dlast six monthsE or #alance sheet Din
case of #usinessmanE
Identification proof -I 'A2 card, passport, dri"ing license, or ;oters I*
)ffice address proof -I &elephone #ill, electricity #ill, registration certificate
+esidential address proof -I property documents, electricity #ill, telephone #ill, any
proof of residence, id card
Signature proof -I specimen of signature matched with #ank account signature
~ /B ~
ELIGIBILITY & DOCUMENTATION
&M18 extends the finance for entire range of commercial "ehicles of &ata Motors 8td! &his
includes passenger carriers as wee as goods carriers2
APPLICANTS OF THE LOAN
Some of these are the applica#le for the car loan
Indi"idual -I An indi"idual can take a car loan!
'roprietorship company -I 0ar loan can #e taken #y the proprietorship company
'artnership company -I A partnership company can take a loan
'ri"ate $ pu#lic ltd company -I A pri"ate $ pu#lic limited company can take a loan!
~ /1 ~
ELIGIBILITY OF APPLICANT
&here is some eligi#ility of applicant which are as follows!
M%n%$"$ (,e +() &o #e -/ 0E &he applicant at least /1 years old!
M%n%$"$ 6e(!l6 %n1o$e +() &o #e R)2/..... o! $o!e
M(D%$"$ (,e o* &+e (ppl%1(n& (& &+e &%$e o* $(&"!%&6 o* &+e lo(n +() &o #e ?. %n
1()e o* )(l(!%e e$plo6ee (n %n 1()e o* #")%ne))$(n %) ?> 6e(!)
NECESSARY DOCUMENTS
&here are some necessary documents should ha"e a applicant and that are as follows -I
1- P!oo* o* %n1o$e 0E Salary slip
/- Ien&%*%1(&%on 0I ;oter id card, passport, I+*A license, sociality card, dri"ing
license
3- O**%1e (!e)) p!oo* 0E &elephone #ill, registration certificate
~ // ~
:- Re)%en&%(l (!e)) p!oo* 0E &elephone #ill, property document, electricity #ill,
;oter id card
<- S%,n(&"!e p!oo* 0E 'hotocopy of Bank pass#ook
?0 KYC
C0 Flee& l%)&
OTHER DOCUMENTS REFUIRED
&here are some other documents re%uired which are as follows -I
1- Age
/- 7xperience proof
3- 'roperty documents
:- I&+ for the last / years
<- Bank statement for last six months
=- +epayment track 4 statement of account for earlier finance a"ailed
~ /3 ~
?- 8etter of authority signed #y all partners $ copy partnership deed Din case of
partnership firmE
H- Board resolution $ copy of memorandum $ articles of association Din case of pri"ate
$ pu#lic 8td companyE
WHO CAN APPLY FOR A CAR LOANH
@ho can apply for a car loanM Are as follows
1- Indi"iduals
/- 'roprietorship firms
3- 'artnership firms
:- 'ri"ate $ pu#lic limited companies
~ /: ~
W+(& A!e T+e Rep(6$en& Op&%on Av(%l(#leH
1- &M18 offers. flexi#le repayment tenors ranging from 1/ to =B months!
/- Kou can pay your monthly 7MI through Auto *e#it 4 70S Delectronic clearing
systemE 4 '*0.s Dpostdated che%uesE!
Ho' C(n Appl6 Fo! C(! Lo(nH
1- Apply online -I A person can apply for a loan #y online through the help of
internet!
/- SMS -&M1. to <:=:= -I &hrough the help of sms can also apply for a loan
3- 0all them on 1HBB-/B>-B1HH -I Kou can call to the company and company.s
executi"e will reach at you!
:- By "isit at nearest #ranch -I &ata Motors ha"ing :BBC and you can go at any
#ranch of them to get a car
<- A credit appraisal will #e performed and the amount of loan will #e decided!
~ /< ~
WHAT IS THE LOAN PROCESSING TIMEH
-I 1or an application completed with all re%uisite documents, it generally takes :H hours for
sanctioning a loan!
WHAT IS THE LOAN SENCTIONING
PROCESSH
1- Application -I ;ery first you ha"e to apply for a car loan
/- 're *ocumentation -I After applying a car loan you ha"e to su#mit all the documents
which are important!
3- 'rocessing -I After su#mitted the documents company.s employees check them and
"erify that all documents and information are true or not
:- Sanctioning of loan -I After "erifying the documents if that are ok than company
sanctions a loan or pass the loan!
<- 'ost *ocumentation -I After sanction the loan company.s employees recheck the
documents!
~ /= ~
=- Issue of deli"ery order to dealer $ dis#ursement -I At last after the documentation and
passing the loan company gi"es the order to dealer that a car which customer wants
should #e gi"en to him!
WHO CAN BE A CO0APPLICANT FOR THE
LOANH
1- If one has crossed age limit D=B Br =< yearE or if anyone wants to purchase the "ehicle
#y his or her relati"e.s name then company makes a co-applicant for the customer!
/- 0o-applicant can #e any mem#er of the customer.s family who is #lood relati"e with
customer in the same address as customer can #e a co-applicant!
A LOAN CONTRACT CAN BE PRE0CLOSED
A loan can #e pre-closed in full! 'art payments are not accepted! 're-closed charges will #e
applica#le! DIf anyone wants to #e gi"e the full payment at once after sanctioning the loan
than he can do that, #ut the condition is that the loan cannot #e close #efore = months, and for
closing a loan #efore the time customer has to pay some chargesE!
~ /? ~
GUARANTOR
&here is no need for any guaranty for purchasing a car on finance or loan! 0ustomer only has
to gi"e the necessary documents which ha"e mentioned in this report!
COMPARASION BETWEEN TMFL & HDFC
/0 INTEREST RATES
TMFL F%D V(!%(#le
1 to /!< 8akh 11!<N 11!1<N
/!< to < 8akh 1/!BN 11!<N
< to 1B 8akh 1/!3N 11!?<N
A#o"e 1B 8akh 1/!?<N 1/!BN


~ /H ~

HDFC BANK 1ix ;aria#le
1 to /!< 8akh 1/N 11!?<N
/!< to < 8akh 1/!<N 1/N
< to 1B 8akh 13!<N 13N
A#o"e 1B 8akh 1:!?<N 1:N

In&e!p!e&(&%on 0E As we can see that the interest rates of &M18 are lower than
5*10 #ank! So we can say that it is #eneficial to take car loan #y the &M18 than 5*10!
~ /> ~
PROCESSING FEES
'rocessing fee are "aries to different le"els of le"el of loan amount
2 TMFL
1- ,p to +s! /!< lakh J +s!/=/<4-
/- +s!/!< lakh to : lakh- +s!3=<B4-
3- +s!: lakh to < lakh- +s!:1BB4-
:- +s!< lakh to 1B lakh- +s!::<B4-
<- A#o"e +s!1B lakh- +s!:><B4-
HDFC
1- ,p to +s!/!< lakh J +s!/HBB4-
/- +s!/!< lakh to +s!: lakh J +s!3>BB4-
3- +s!: lakh to < lakh J +s!:<BB4-
:- +s!< lakh to +s!1B lakh J +s!:>BB4-
<- A#o"e +s!1B lakh J <=BB4-
~ 3B ~
In&e!p!e&(&%on 0E As we can see that up to the loan of +s!1B lakh
processing fee of &M18 is higher than the 5*10 #ank! But a#o"e +s!1B lakh
processing fee is lesser than the 5*10 #ank!
PREPAYMENT CHARGES :TMFL;
= N of remaining amount within 1 year from 1st 7MI
<N of remaining amount within 13-/: months from 1st 7MI
3N of remaining amount post /: months from 1st 7MI
2o foreclosure allowed within = months from date of a"ailing the car loan
PREPAYMENT CHARGES :HDFC;
HN of remaining amount within 1 year from 1st 7MI
=!?<N of remaining amount within 1 year from 1st 7MI
~ 31 ~
<N of remaining amount within 1 year from 1st 7MI
In&e!p!e&(&%on 0E As we can see that &M18 is ha"ing more sla#s in case of
preclosing the loan than 5*10 and also &M18 charges is lesser than the 5*10 #ank!
OTHER EIPENSES
&here are some other expenses also ha"e to do for documentation is as follows -I
TMFL HDFC
0he%ue swapping charges
+s!<BB4-
8ate 'ayment 'enalty- /N
per month
0he%ue return charges- +!
:BB4- per return
&ransaction fees +s!<BB4-
2)0 +s!<BB4-
Special 2)0 +s!<BB4- per
re%uest
0he%ue Swapping 0harges-
+s!=<B4- per transaction
8ate payment penalty- /N
per month on the
outstanding installment
0he%ue return charges-
+s!:3B4- per return
&ransaction fees +s!<BB4-
2)0 0harges- +s!=BB4- per
2)0
2)0 for con"ersion from
'etrol to 8'(402(-
+s!HBB4- per 2)0
~ 3/ ~
2)0 to con"ert from
'ri"ate to 0ommercial-
+egistration +s!1<BB4- per
2)0
2)0 to con"ert from
0ommercial to 'ri"ate-
+egistration +s!1<BB4- per
2)0
0harges for changing from
fixed to floating rates of
interest- 2ot Applica#le!
0harges for changing from
floating to fixed rates of
interest- 1!<BN on principal
outstanding
2)0 to con"ert from
'ri"ate to 0ommercial-
+egistration +s!//BB4- per
2)0
2)0 to con"ert from
0ommercial to 'ri"ate-
+egistration +s!//BB4- per
2)0
0harges for changing from
fixed to floating rates of
interest- as per the #ank.s
rule!
0harges for changing from
floating to fixed rates of
interest- 1!?<N on principal
outstanding
INTERPRETATION 0E As we can see that &M18.s charges is much lesser than
the 5*10 Bank! So it will #e #eneficial for a customer to purchase a car on loan from the
&M18 than 5*10 Bank!
~ 33 ~
FINDINGS
As I had worked in &M18 I ha"e seen many different things some most important in them
are as follows -I
1- 0ompany is ha"ing a different department which name is TATA ASSURED! &he
work of this department is to purchase the old car of customer and the "alue of old car
decreases #y the "alue of new car! It makes easy to purchase a car #y the customers!
/- &here is no need of the G"(!(n&o! #y this a customer can easily purchase a car #y
su#mitting the other necessary documents, on the other hand in other #anks or
institutions guarantor is must!
3- A*&e! )(le )e!v%1e o* T(&( Mo&o!) is "ery effecti"e! If a customer ha"ing the
pro#lem in his or her car company pro"ides a fast and effecti"e ser"ice to him!
0ompany also gi"es the warranty on e"ery car till / years after the purchasing date or
up to 1,BB,BBB 9Ms! )n the other hand any #ank or any institution does not pro"ide
this type of facility!
:- F()& p!o1e))%n, 0E &M18 ha"ing a fast processing of work, if a person su#mit
the all documents with in time then company deli"er the car with in :H hours!
<- T+e F%n(n1%(l Se!v%1e of &M18 is "ery good then other #anks!
~ 3: ~
=- 0ompany is B..J o"&le&) so if a customer ha"ing the pro#lem then he can easily
reach at nearest outlet for sol"ing the pro#lem!
?- 0on"ersion from fixed to floating $ "ice-"ersa is much easier in &M18 than 5*10!
H- &M18 charge less processing fees and interest rate on #igger amount of loan! It
means if you want to #uy a luxury car which prices are high and you are not ha"ing
much amount than company pro"ides the any amount of loan!
>- 0ompany gi"es a loan up to >BN of "alue of the car! It "aries according to the
customer creditworthiness!
1B- &he other #anks profits are depends upon the loan #ut &M18 profits are depend upon
the selling of their "ehicle!
11- &ata Motors has #een sold no! of cars #ut many of them has #een financed #y the
&M18! &M18 playing a maor role in the success of &ata Motors!
~ 3< ~
SUGGESTIONS
1- &A&A Motors should organiAe more promotional acti"ities to increase the sale of the
company!
/- It should minimiAe the interest rates a little #it to #eat the ongoing competition in the
market!
3- It should increase the maturity period of loan to attract that customer who wants to
take loan for longer duration!
:- 0ompany should increase the age limit of #orrower in case of #usinessman from =<
years to ?B years #ecause some persons which are ha"ing the #usiness they don.t
retire at the age of =< years so company should gi"e a relaxation in this area and also
in case of salaried person!
~ 3= ~
CONCLUSION
&here are some limitation #4w the car loan procedure of #oth &M18 and 5*10 #ank! Such
as documents re%uired for the initial proceedings of loan are moreo"er similar! +epayment
option gi"en #y #oth of them is %uite similar to each other!
But there are some differences also like interest rates offer #y #oth the companies differ a
little #id!
In &M18, there is a #enefit that its interest rates are lower as compared to 5*10 #ank in case
of #ig amount loans!
&he processing of loan in &M18 is much easier and faster as compared to other pro"iding
companies!
&here is no need of guarantor in &M18 #ut in other #anks it is necessary!
But, at last, I want to conclude my study on that in my "iew, the financing of cars is much
easier in &M18, the after sale ser"ice to the customer is also "ery good!
In short, &M18 is "ery effecti"ely full fill the dream of a common man to own his car either
#ig or small according to his #udget! Because the other #anks profits are depends upon the
loan #ut &M18 profits are depend upon the selling of their "ehicle!
2ow a day.s no! of cars are sold #y the &ata Motors #ut most of them are financed from
&M18!
~ 3? ~
REFERENCES
1- @I9I'7*IA
/- @@@!&M18!0)M
3- @@@!5*10BA29!0)M
:- +7S7A+05 M7&5)*)8)(K -0!+ 9)&5A+I.
',B8IS57* BK 27@ A(7 I2&7+2A&I)2A8
',B8IS57+S!
~ 3H ~
ANEIIURES
PERFORMA OF BOARD RESOLUTION FOR
COMPANIES
@e here#y certify that the following is a true copy of a resolution adopted #y the #oard of
directors of the said company in accordance with their authority, at meeting duly held on
OOOOO!! And not su#se%uently rescinded or modified! +esol"ed that the company to
o#tain for the loan 4 gi"en guaranty for loan of +sOOOOOO in fa"our of
Mr!4Ms!4m4sOOOOOOOOOOOOOOOOOO
&aken from TATA MOTORS FINANCED LIMITED for purchase of Motor "ehicle 4
"ehicle chassis 4 constructing #ody of the shassis 4 e%uipment on the following terms and
conditions -I
AE &he "ehicles are pro"ided as security to secure the a#o"e #orrowing!
BE &he instalments will #e repaya#le in instalments for tenor not exceeding OOO!!
months!
0E &he loan shall #e as per terms and condition specified in the loan agreement dated
OOO!! Signed #etween the #orrower, the guarantor and &A&A M)&)+S
1I2A207 8&*!
~ 3> ~
And with reference to the a#o"e transaction the #oard authoriAes
Mr OOOOOOOO to make, execute and deli"er to &A&A M)&)+S 1I2A207
8IMI&7* all documents including the loan agreements, promissory note, and other
documents!
&he specimen signature of
Mr OOOOOOOOOO!!!!!!!!!!!!!! is attested #elow
0hairman4director4secretary Attested signature of
Mr OOOOOOOOOOOO
0ompany seal!

~ :B ~
FLEET LIST
1leet list contains the list of all "ehicles owned #y the indi"idual or tra"el agency
whether financed or non J financed in case of more than one car!
PERFORMA OF FLEET LIST
S!2)
2AM7 )1
0,S&)M7+
M)*78 4
K7A+
1+77 4
1I2A207*
8)A2 A40
2)!
+0! 2)
1
MA2)F 9,MA+
SAI2I
1)+* I9)2
1!H 7PI /BB<
1+77
8A+))9BBB
3<=:H>
,'-11-M-
:<=/
/
MA2)F 9,MA+
SAI2I
5)2*A
0I&K - /BB<
1+77
8A+))9BBB
?H<>/<
<<
3
MA2)F 9,MA+
SAI2I
&A&A
I2*I()
/BB=
1+77
8A+))9BBB
:<>H?<
<22
:
MA2)F 9,MA+
SAI2I
&)K)&A
I22);A
/BB=
1I2A207*
1+)M I0I0I
BA29
8A+))9BBB
3<=:H?
<<
<
MA2)F 9,MA+
SAI2I
I9)2
/BB<
1+77
8A+))9BBB
<:?H>=
<<
~ :1 ~
=
MA2)F 9,MA+
SAI2I
I2*I()
/BB=
1+77
8A+))9BBB
:</1<H
<<
?
MA2)F 9,MA+
SAI2I
I22);A
/BB=
1+77
8A+))9BBB
1:<H?>
<<
H
S,2I&A I2*I()
/BBH
1I2A207*
1+)M &M18
8A+))9BBB
?<>H:<
<<
>
MA2)F 9,MA+
SAI2I
I2*I()
/BBH
1I2A207*
1+)M &M18
8A+))9BBB
1/B3=>
<<
1B
MA2)F 9,MA+
SAI2I
S,M)
(+A2*7
/BBH
1I2A207*
1+)M &M18
8A+))9BBB
:<1?H<
<<
11
MA2)F 9,MA+
SAI2I
&A;7+A
/BB?
1+77
8A+))9BBB
1:<=>H
,'-11-&-
:<H<
1/
S,2I&A I22);A
/BB?
8A+))9BBB
1:<H?:
,'-11-&-
1<<3
~ :/ ~
CUSTOMER IDENTIFICATION PROCEDURE
1- +ecent photograph of all applicants Dincluding guarantorsE for all products on the
application form in case of indi"iduals and authoriAed signatories in case of non-
indi"idual entities!
/- Identity proof of all applicants Dincluding guarantorsE and authoriAed signatories!
3- Address proof documents of all applicants Dincluding guarantorsE and authoriAed
signatories matching the communication address mentioned in the application form!
:- Signature "erification documents!
<- 9K0 documents must #e seen in original and signed #y concerned person of either
channel or dealer or employee of &M18!
=- +emark Doriginal seen and "erifiedE and signature along with name of person, name of
organiAation, location, and employee no! Dif anyE must #e put in on all the documents!
~ :3 ~
KYC :Kno' Yo"! C")&o$e!;
It is a procedure to collect proper information a#out the customer applying for loan
with the help of ongoing account of customer -I
'roof of income
Identification proof
1- ;oter.s I card
/- *ri"ing license
3- 'assport
:- 'en card
<- 'hoto ration card
=- 'hoto social card
?- I+*A license
~ :: ~
)ffice address proof
+esident address proof
Signature proof
Bank statement
~ :< ~
G"%el%ne) on KKno' Yo"! C")&o$e!K
no!$) (n KC()+ &!(n)(1&%on)K
As part of -9now Kour 0ustomer. D9K0E principle, +BI has issued se"eral guidelines
relating to identification of depositors and ad"ised the #anks to put in place systems and
procedures to help control financial frauds, identify money laundering and suspicious
acti"ities, and for scrutiny4monitoring of large "alue cash transactions! Instructions ha"e also
#een issued #y the +BI from time to time ad"ising #anks to #e "igilant while opening
accounts for new customers to pre"ent misuse of the #anking system for perpetration of
frauds! A gist of the past circulars issued on the su#ects under reference is listed in the
Annexure! &aking into account recent de"elopments, #oth domestic and international, it has
#een decided to reiterate and consolidate the extant instructions on 9K0 norms and cash
transactions! &he following guidelines reinforce our earlier instructions on the su#ect with a
"iew to safeguarding #anks from #eing unwittingly used for the transfer or deposit of funds
deri"ed from criminal acti"ity D#oth in respect of deposit and #orrowa#le accountsE, or for
financing of terrorism! &he guidelines are also applica#le to foreign currency
accounts4transactions!
~ := ~
KKno' Yo"! C")&o$e!K :KYC; ,"%el%ne) *o! Ne'
(11o"n&)
&he following 9K0 guidelines will #e applica#le to all new accounts with immediate effect!
/!1 9K0 'olicy
DiE Q9now Kour 0ustomerQ D9K0E procedure should #e the key principle for identification
of an indi"idual4corporate opening an account! &he customer identification should entail
"erification through an introductory reference from an existing account holder4a person
known to the #ank or on the #asis of documents pro"ided #y the customer!
DiiE &he Board of *irectors of the #anks should ha"e in place ade%uate policies that esta#lish
procedures to "erify the #onafide identification of indi"idual4corporates opening an account!
&he Board should also ha"e in place policies that esta#lish processes and procedures to
monitor transactions of suspicious nature in accounts and ha"e systems of conducting due
diligence and reporting of such transactions!
/!/ 0ustomer identification
DiE &he o#ecti"es of the 9K0 framework should #e two fold, DiE to ensure appropriate
customer identification and DiiE to monitor transactions of a suspicious nature! Banks should
o#tain all information necessary to esta#lish the identity4legal existence of each new
customer, #ased prefera#ly on disclosures #y customers themsel"es! &ypically easy means of
esta#lishing identity would #e documents such as passport, dri"ing license etc! 5owe"er
where such documents are not a"aila#le, "erification #y existing account holders or
~ :? ~
introduction #y a person known to the #ank may suffice! It should #e ensured that the
procedure adopted does not lead to denial of access to the general pu#lic for #anking ser"ices!
DiiE In this connection, we also in"ite a reference to a +eport on Anti Money 8aundering
(uidelines for Banks in India prepared #y a @orking (roup, set up #y IBA, for your
guidance! It may #e seen that the IBA @orking (roup has made se"eral recommendations for
strengthening 9K0 norms with anti-money laundering focus and has also suggested formats
for customer profile, account opening procedures, esta#lishing relationship with specific
categories of customers, as well as an illustrati"e list of suspicious acti"ities!
A2 KKno' Yo"! C")&o$e!K p!o1e"!e) *o! eD%)&%n,
1")&o$e!)
Banks are expected to ha"e adopted due diligence and appropriate 9K0 norms at the time of
opening of accounts in respect of existing customers in terms of our extant instructions
referred to in the Annexure! 5owe"er, in case of any omission, the re%uisite 9K0 procedures
for customer identification should #e got completed at the earliest!
B2 Ce%l%n, (n $on%&o!%n, o* 1()+ &!(n)(1&%on)
&he extant +BI guidelines on the su#ect are as underI
DiE Banks are re%uired to issue tra"ellers che%ues, demand drafts, mail transfers, and
telegraphic transfers for +s!<B,BBB and a#o"e only #y de#it to customers. accounts or against
che%ues and not against cash D0ircular *B)*!B'!B0!11:40!:=> DH1E->1 dated April 1>,
1>>1E 1urther, the applicants Dwhether customers or notE for the a#o"e transactions for
amount exceeding +s!1B,BBB should affix permanent DIncome taxE account num#er on the
applications D0ircular *B)*!B'!B0!>/40:=>-?= dated August 1/, 1>?=E! Since 9K0 is now
expected to esta#lish the identity of the customer and as the issue of demand draft etc! for
~ :H ~
+s!<B,BBB and a#o"e is #y de#it to account, the re%uirement for furnishing 'A2 stands
increased uniformly to +s!<B,BBB4-!
DiiE &he #anks are re%uired to keep a close watch of cash withdrawals and deposits for +s!1B
lakhs and a#o"e in deposit, cash credit or o"erdraft accounts and keep record of details of
these large cash transactions in a separate register! D0ircular *B)*!B'!B0!<?4/1!B1!BB14><
dated May :, 1>><E!
DiiiE Branches of #anks are re%uired to report all cash deposits and withdrawals of +s!1B lakhs
and a#o"e as well as transactions of suspicious nature with full details in fortnightly
statements to their controlling offices! Besides, controlling offices are also re%uired to apprise
their 5ead offices regarding transactions of suspicious nature! D0ircular *B)*!B'!B0!1B1 4
/1!B1!BB14>< dated Septem#er /B, 1>><E! 7arly computeriAation of #ranch reporting will
facilitate prompt generation of such reports!
<! R%)5 $(n(,e$en& (n $on%&o!%n, p!o1e"!e)
In order to check possi#le a#use of #anking channels for illegal and anti-national acti"ities,
the Board should clearly lay down a policy for adherence to the a#o"e re%uirements
comprising the followingI
<!1 Internal 0ontrol Systems
*uties and responsi#ilities should #e explicitly allocated for ensuring that policies and
procedures are managed effecti"ely and that there is full commitment and compliance to an
effecti"e 9K0 programed in respect of #oth existing and prospecti"e deposit accounts!
~ :> ~
0ontrolling offices of #anks should periodically monitor strict adherence to the laid down
policies and procedures #y the officials at the #ranch le"el!
<!/ &errorism 1inance
+BI has #een circulating lists of terrorist entities notified #y the (o"ernment of India to
#anks so that #anks may exercise caution if any transaction is detected with such entities!
&here should #e a system at the #ranch le"el to ensure that such lists are consulted in order to
determine whether a person4organiAation in"ol"ed in a prospecti"e or existing #usiness
relationship appears on such a list! &he authority to whom #anks may report accounts
suspected to #elong to terrorist entities will #e ad"ised in consultation with (o"ernment!
<!3 Internal Audit 4 Inspection
DiE An independent e"aluation of the controls for identifying high "alue transactions should
#e carried out on a regular #asis #y the internal audit function in the #anks!
DiiE 0oncurrent4internal auditors must specifically scrutiniAe and comment on the
effecti"eness of the measures taken #y #ranches in adoption of 9K0 norms and steps towards
pre"ention of money laundering! Such compliance report should #e placed #efore the Audit
0ommittee of the Board of #anks at %uarterly inter"als! &his may #e included in the 0alendar
of +e"iews ad"ised in our 0ircular *B)*!2o!B'!B0!34/1!B3!B3H4/BBB dated 1:
th
Fuly /BBB!
<!: Identification and +eporting of Suspicious
&ransactions
Banks should ensure that the #ranches and controlling offices report transactions of
suspicious nature to the appropriate law enforcement authorities designated under the
rele"ant laws go"erning such acti"ities! &here should #e well laid down systems for freeAing
~ <B ~
of accounts as directed #y such authority and reporting thereof to the controlling office and
head office! Being matters of sensiti"e nature, there must #e a %uarterly reporting of such
aspects to the audit committee of the #oard or the #oard of directors!
<!< Adherence to 1oreign 0ontri#ution +egulation Act
D10+AE, 1>?=
DiE Banks should also adhere to the instructions on the pro"isions of the 1oreign 0ontri#ution
+egulation Act, 1>?= cautioning them to open accounts or collect che%ues only in fa"our of
association which are registered under the Act i#id #y (o"ernment of India! A certificate to
the effect that the association is registered with the (o"ernment of India should #e o#tained
from the concerned associations at the time of opening of the account or collection of
che%ues!
DiiE Branches of the #anks should #e ad"ised to exercise due care to ensure compliance and
desist from opening accounts in the name of #anned organiAations and those without re%uisite
registration!
?2 Re1o! Keep%n,
1inancial intermediaries should prepare and maintain documentation on their customer
relationships and transactions to meet the re%uirements of rele"ant laws and regulations, to
ena#le any transaction effected through them to #e reconstructed! In the case of wire transfer
transactions, the records of electronic payments and messages must #e treated in the same
way as other records in support of entries in the account! All financial transactions records
should #e retained for at least fi"e years after the transaction has taken place and should #e
a"aila#le for perusal and scrutiny of audit functionaries as well as regulators as and when
re%uired!
~ <1 ~
C2 T!(%n%n, o* )&(** (n $(n(,e$en&
It is crucial that all the operating and management staff fully understand the need for strict
adherence to 9K0 norms! All institutions must, therefore, ha"e an ongoing training
programme so that staff are ade%uately trained for their roles and responsi#ilities as
appropriate to their hierarchical le"el in complying with anti-money laundering guidelines
and for implementing 9K0 policies consistently!
H! &hese guidelines are issued under Section 3< DAE of the Banking +egulation Act, 1>:> and
any contra"ention of the same will attract penalties under the rele"ant pro"isions of the Act!
Banks are ad"ised to #ring the guidelines to the notice of their #ranches and controlling
offices!
>! &he steps initiated in compliance with the "arious guidelines contained in the circular may
#e ad"ised to &he 0hief (eneral Manager, Anti Money 8aundering 0ell, *epartment of
Banking )perations $ *e"elopment, +eser"e Bank of India, 0entral )ffice, 0entre 1, @orld
&rade 0entre, 0uffe 'arade, Mum#ai :BB BB< within a month from the date of receipt of this
circular! &he implementation of the instructions contained in the circular will #e re"iewed #y
+BI in a meeting with #ankers after a period of six months and issuance of a Master 0ircular
will #e considered thereafter!
1B! 2B10s ha"e #een further ad"ised in terms of extent instructions that 9K04AM8
guidelines issued #y +eser"e Bank of India shall also apply to their #ranches and maority
owned su#sidiaries located outside India, especially, in countries which do not or
insufficiently apply the 1A&1 +ecommendations, to the extent local laws permit! It is further
clarified that in case there is a "ariance in 9K04AM8 standards prescri#ed #y the +eser"e
~ </ ~
Bank and the host country regulators, #ranches4o"erseas su#sidiaries of 2B10s are re%uired
to adopt the more stringent regulation of the two!
//2 Co$#(&%n, *%n(n1%n, o* &e!!o!%)$
aE In terms of 'M8A +ules, suspicious transaction should include inter alia transactions
which gi"e rise to a reasona#le ground of suspicion that these may in"ol"e financing of the
acti"ities relating to terrorism! 2B10s are, therefore, ad"ised to de"elop suita#le mechanism
through appropriate policy framework for enhanced monitoring of accounts suspected of
ha"ing terrorist links and swift identification of the transactions and making suita#le reports
to the 1inancial Intelligence ,nit J India D1I,-I2*E on priority!
#E As and when list of indi"iduals and entities, appro"ed #y Security 0ouncil 0ommittee
esta#lished pursuant to "arious ,nited 2ationsL Security 0ouncil +esolutions D,2S0+sE, are
recei"ed from (o"ernment of India, +eser"e Bank circulates these to all #anks and financial
institutions Dincluding 2B10sE! 2B10s should ensure to update the consolidated list of
indi"iduals and entities as circulated #y +eser"e Bank! 1urther, the updated list of such
indi"iduals4entities can #e accessed in the ,nited 2ations we#site at httpI44www!un car loan
procedure!doc !org4sc4committees41/=?4consolist!shtml ! 2B10s are ad"ised that #efore
opening any new account it should #e ensured that the name4s of the proposed customer does
not appear in the list! 1urther, 2B10s should scan all existing accounts to ensure that no
account is held #y or linked to any of the entities or indi"iduals included in the list! 1ull
details of accounts #earing resem#lance with any of the indi"iduals4entities in the list should
immediately #e intimated to +BI and 1I,-I2*!

1/! It may #e appreciated that 9K0 norms4AM8 standards401& measures ha"e #een
prescri#ed to ensure that criminals are not allowed to misuse the #anking4financial channels!
~ <3 ~
It would, therefore, #e necessary that ade%uate screening mechanism is put in place #y
2B10s as an integral part of their recruitment4hiring process of personnel!
13! In the context of creating 9K04AM8 awareness among the staff and for generating alerts
for suspicious transactions, 2B10s may consider the indicati"e list of suspicious acti"ities
contained in Annex-; of the 00 2o!1/= dated August B<, /BBH!
1:! &hese guidelines are issued under Sections :<9 and :<8 of the +eser"e Bank of India
Act, 1>3: and any contra"ention of or non-compliance with the same may attract penalties
under the rele"ant pro"isions of the Act!
~ <: ~