Bajaj Finserv introduces finance for consumer durable products in Gwalior
Bajaj Finance Limited (BFL) targets 9.3% of the Consumer Durable Finance market size of Rs. 60 crore in Gwalior. Read more.
Gwalior, August, 2014: Bajaj Finance Limited (BFL), the undisputed leader of Consumer Durable Finance, announced finance on consumer durable products in Gwalior, targeting 9.3% of the market size of Rs. 60 crore. A champion of the segment, BFL enjoys a share over 15% of the Rs. 65,000 crore consumer durable industry in India. The company has plans to tie-up with over 15 branded stores in Gwalior, where consumers can avail the benefits of this unique finance option. The consumer durable finance from BFL is available in places where other finance options are not.
Bajaj Finserv, with a current loan book of 8329 crore, has been growing at a constant rate of 30%, largely due to its interest free EMI finance on consumer durable loans. With this launch in Gwalior, Bajaj Finserv continues to consolidate its position as the leading consumer durable finance organization of India.
To avail an interest free EMI finance from Bajaj Finserv, a customer needs to simply walk into any of the consumer durables stores in the country, choose the desired product, and approach the in-store Bajaj Finserv representative. Within a few minutes, the person gets an approval on the loan. The customer pays the defined down payment for the selected product and the remaining amount, is divided into equal monthly installments. The customer can also choose from a range of loan tenors, ranging from 12 to 24 months. This brings down the cost of ownership and also helps the customer trade up. For example, if a person had a budget of 40,000, in case of a cash-down option, he would have managed to get a 32inch LED. With consumer durable loan, he can now trade up to a 46 inch LED and bridge the gap. What’s more, in this case, he may choose to make a down payment of even lesser than 40,000 preserve the rest of his savings.
We intend to establish a strong foothold in the Central India and Gwalior presents us with a huge business opportunity of 60 crore. Our technology platforms allow us to approve loans within 3 minutes while the costumer is in the shop, selecting his favorite product. For the customer, this life-event should be about buying his aspirational device without having to worry about the money he may need”, says Devang Mody, President – Consumer Finance, Bajaj Finserv.
Today, BFL disburses CD loans to more than 6 million happy customers across 110 cities in India. These loans are available on all major consumer durable products, that fall in the price range of Rs. 7,000/- to Rs. 5,00,000/-.
The company has gone a step further and introduced an innovative offering through the EMI card. The EMI card is available only for existing consumer durable loan customers. The existing customer can visit any of the Bajaj Finserv Lending affiliated stores and pay for his next consumer durable purchase, by simply swiping the EMI card. The customer already has a pre-assigned loan line on his account, which is determined through the internal policy framework and past behavior on his previous loan.
“We have invested deep in technology and process innovations to create long term sustainable advantages. This has allowed us to create win-win propositions for all members in the ecosystem. Our long-term strategic intent is to do more with our existing customer. EMI card is a proof point of how we approach innovation and our internal policy framework to create compelling long term brand propositions for our customers”, says Rajeev Jain, CEO Bajaj Finserv
About Bajaj Finance Ltd.
Bajaj Finance Limited, the lending and investment arm of Bajaj Finserv group, is one of the most diversified NBFCs in the Indian market catering to more than 6 million customers across the country. Headquartered in Pune, the company’s product offering includes Consumer Durable Loans, Lifestyle Finance, Personal Loans, Loan against Property, Small Business Loans, Home loans, Credit Cards, Two Wheeler and Three Wheeler Loans, Construction Equipment Loans, Loan against Securities and Rural Finance which includes Gold Loans and Vehicle refinancing Loans. Bajaj Finance Limited prides itself for holding the highest credit rating of FAAA /Stable for any NBFC in the country today.
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