CAPÍTULO 2: ESTADO DEL ARTE
2.4. APROXIMACIÓN DE JING LUAN
It is the funding of products include, trucks, buses, tippers, light commercial vehicles, pick ups, 3 wheelers, etc.
Range of services: funding of new vehicles, refinance on used vehicles, balance transfer on high cost loans, top up on existing loans, Extend product, working capital loans & other banking products.
Who are eligible?
Any individual / Partnership firm / company with more than 2 years business experience. Ownership of a vehicle is not mandatory. Funding extended to First Time User, Transporters and Captive Consumers.
How much?
Loan amount can vary from a few thousands to crore depending upon the specific requirement.
Funding can be up to the extent of 100 % of the chassis, body funding can be extended on special requirement & on the past experience.
Generally undertaken is Hypothecation funding. They are also taking over an old high-interest loan and converting it into low interest loan.
Repayment:
In general repayment period is of 3 -4 years, however depending on the nature of the deal the tenure can vary from 6 - 60 months.
The repayment schedule & the amortization schedule is sent on disbursement of the loan.
Interest:
Interest is charged on a flat rate based on the scheme applicable for the particular product.
FARM EQUIPMENT LOANS
Farm equipment loan has also a big chunk in the vehicle finance.
Eligibility
:-Agricultural Users
Any individual aged above 21 years at the beginning of the tenure and below 65 years by the end of the tenure; involved in agriculture for the last 5 years.
Having minimum 2 acres of land with its value at least twice the loan amount.
Staying in the same place for at least 3 years.
Having an annual income equal to the yearly installment Mortgage of land of 2 to 3 times of the loan amount
Commercial Users
Any individual aged above 21 years at the beginning of the tenure and below 65 years by the end of the tenure; involved in business for the last 3 years.
Owns at least one tractor or commercial vehicle.
Owns either a house or an office or at least 2 acres of land.
Has a permanent phone connection either at office or at home.
Loan Amount:
The loan amount varies from customer to customer depending on the valuation of the land being mortgaged, income of the customer and tenure desired. A maximum of 100% of the cost of the tractor, 75% of the cost of the trailer and 50% of the cost of the implements is funded.
Documentation:
Agricultural use
Application form with photograph of the customer and all co applicants and/or guarantor.
Performa Invoice of the asset to be funded from an authorized dealer.
Land records of the borrower/s.
Land valuation and title search report of the land.
Residence proof of the borrower/s.
Identity proof of the borrower/s.
Signature verification of the borrower/s.
Loan agreement, duly signed by the applicants and guarantor.
2 SPDCs(Security Post Dated Cheques) for entire tenure.
Commercial Use
Application form with photograph of the customer and all co applicants and/or guarantor.
Proforma Invoice of the asset to be funded from an authorized dealer.
Proof of Income (any of the following) : - Billing statement for the past one year
- Latest Income tax Return - Last 6 months bank statement Residence proof of the borrower/s.
Identity proof of the borrower/s.
Signature verification of the borrower/s.
Loan agreement, duly signed by the applicants and guarantor.
2 SPDCs(Security Post Dated Cheques) for entire tenure.
Rates & Fees:
The rate of interest varies from customer to customer and depends on various factors like land holding, loan amount, viability of the proposition and the underlying collaterals provided.
Interest:
Interest is charged on a monthly/quarterly/half-yearly reducing balance basis as the case may be. Every installment that is paid has a component of principal as well as interest. Interest is charged on the principal outstanding after every installment payment.
TWO WHEELERS:
Two wheeler finance is comparably Simple, Friendly and Quick.
Loan Schemes are available from Rs.7500/- onwards to Rs.150000/- in easy installments over a period of 6 to 36 months.
Eligibility Criteria:
1. Salaried Individuals 2. Self Employed Individuals
3. Pensioners, Housewives & Students 4. Partnership Entities
5. Private Limited Companies 6. Public Limited Companies
Interest rates:Interest rate is charged on a monthly reducing balance . Documents:
Identity Proofs Residence Proof Income Proof Post Dated Cheques Copy of Credit Card CC billing statement Bank passbook/Statement No objection Certificate
AWARDS AND RECOGNITION
Recipient of the social responsiveness awards instituted by Business world – compaq at national level under the auspices of FICCI, Delhi.
Adjudged as the third prize winner for having rended commendable service in the areas of social welfare and rural development.
Ms. Akhila Srinivasan receiving the social responsiveness Award instituted by Business World – Company from the Hon’ble Vice – President of India Krishna Kant in the year 1999.
Recipient of outstanding woman professional for 2000 – 01 by FICCI – FICCI Ladies organisation (FLO). The award was given by Ms. Sheila dixit Chief minister Delhi.
Mother Teresa award for corporate citizenship instituted by Loyola institute of Business Administration (LIBA) Chennai, 2002.
SOCIAL WELFARE INITATIVES
They have always belived in delivering financial value with a human face. As a company firmly grounded up a middle class ethos, we take our social responsibilities very seriously.
Their corporate Social Responsibility (CSR) initiative started with the Shriram Social Welfare Trust (SSWF) that was set up in the year 1993. SSWT is today active in the following areas.
Orphan and destitute care
Primary education for the rural poor
Micro – credit financing through self- help groups for the marginalized
Empowerment and upliftment of women in villages.
OPRHAN AND DESTITUTE CHILDREN:
To swiftly help the poor and the needy to be self reliant and live with dignity, not charity. The primary focus and beneficiaries of the Trust’s activities are.
a. Abandond neglected and destitute children.
b. Juvenile delinquents in need of care and protection.
c. Children of poor and illiterate parents.
d. Disadvantaged and marginalized section of women, particularly rural women
MICRO CREDIT FINANCING THROUGH SELF-HELP GROUPS FOR THE MARGINALIZED WOMEN IN VILLAGES.
a. Launch of Shriram Rural Development Project (SRDP) to create and develop
b. Social and human capital among the poor.
c. Micro credit financing through self help groups in 156 villages in Tamil Nadu, Andhra Pradesh and Karnataka.
PRIMARY EDUCATION FOR THE RURAL POOR:
The trust runs four schools in rural areas at Thiruneermalai, Pallikaranai, Moovarasampet in Tamil Nadu and inn Prakash Nagar, Guntur Dist. In Andhra Pradesh. Over 2000 children receive free education. Schools offer education up to class VII and student will progressively move up to higher secondary level.
FUTURE PLANS :
a. To start six primary schools for the rural poor in the villages of Andhra Pradesh.
b. Government of Andhra Pradesh to hand over 3.5 acres of land to SSET in six districts.
c. Immediate Plans: to start two schools in Cudapah and Guntur districts in June 2005.
LONG TERM BENEFITS OF THE PROGRAM:
a. Reduction in rural indebtedness
b. Bank/institutional credit for investment in income – generation activities.
c. Improved household food security round the year, better nutrition.
d. Improved household income.
e. Empowerment of Women.
f. Greater leverage and status of SHG members in local communities and with the state.
THE FUTURE ACCORDING TO SHRIRAM
1. To enlarge the scope of micro credit financing activity through NBFC Shriram Investment Limited.
2. To extend activities to Bihar, Kharkand, and Eastern Uttar Pradesh.
3. To lend credit at low interest rates to 3 lakh women below poverty line in the next 3 years.
NATIONAL AWARDS WON
Business World Compaq award fota Social Responsiveness instituted by FICCI from the Hon’ble Vice – President of India Mr. Krishna Kant on 1999.
Mother Teresa award for Corporate Citizenship instituted by Loyola Institute of Business Administration (LIBA), Chennai in 2002.
PRODUCT PROFILE 1.TRUCK FINANCE
1. Shriram Truck Financing Companies. The wheels of progress.
2. Largest NBFC in the country exclusively engaged in financing of heavy commercial vehicles.
3. Monopoly position in financing of used vehicles.
4. All India presence with a branch network of 260 offices and employing over 4000 people.
5. Growing at the rate of 30% per annum.
6. Funds managed – Rs 6000 crores.
7. Equity investors - Citicorp,, UTI Banks, Reliance Capital and FMO Netherlands have added tremendous value and strength.
8. Venture capital firm Chris capital joins as a strategic partner by acquiring 21% equity.
We entered the Consumer Durable Finance business in early 2002 through 'Shriram City Union Finance Ltd., the consumer finance arm of the group.
Within a short span of 2 years, we have managed a portfolio of over Rs.584 crore.
Our monthly business amounts to over Rs.25 crore in individual loans, ranging from as little as Rs.8,000 to Rs.1,00,000, and with tenures ranging from 12
months to 36 months.
Since its inception, we have financed over 2,15,000 white goods and two-wheelers, with over 90% of the business arising out of the non-metro markets.
This financing is backed by lines of credit extended by ICICI Bank, UTI Bank and Development Credit
THE GROUP COMPANIES ATHAT CATER TO TRUCK FINANCING NEEDS A DIFFERENT PARTS OF THE COUNTRY ARE
Shriram Investments Limited in the South Shriram Transport Finance Company Limited in the West Shriram Overseas Finance Limited in Northern/Eastern regions in India.
OUR EQUITY PARTNERS
Citicorp financial services Ltd. An arm citigroup has taken 14.9% equity stake in Shriram investments Limited and Shriram Transport Financial Company Limited in 2002.
FMO the Dutch Government owned financial services company has recently picked up equity stake in SIL and STFC. The company has extended a long term debt of 6 million Euros each to the two companies.
Reliance Capital has also taken an equity stake in the two companies at a premium.
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AN OVERVIEW OF THE SHRIRAM GROUP TRUCK FINANCING BUSINESS IN INDIA
AREA OF OPERATION ALL INDIA
Branch offices 260
Employees 4000
Depositors 12.20 lakhs
Agency Force 15,000 plus resident representatives 1300.
Funds managed Rs. 6000 crores
Net worth Rs. 349 crores
Stock Listing Major exchanges including the BSE and the NSE.
2.CONSUMER
We entered the consumer Durable Finance Business business in early 2002. through Shriram City Union Finance Ltd. The consumer arm of the
group. Within a short span o 2 years, we have managed a profile of over rest 684 crores in this business.
Our monthly business amounts to over Rs. 25 crores in individual loans, ranging from as little as Rs.8000 to Rs. 100000 and with tenures ranging from 12 months to 36 months.
Since its inception we have financed over 215000 white goods and two wheelers with over 90% of the business arising out of the non metro markets.
This financing is backed by lines of credit extended by ICICI Band, UTI Bank and Development Credit.
3.CHIT FUNDS:-
Shriram chits – prosperity
Shriram chits is the largest chits fund in the country. We have grown to become a trusted household investment option. The growth registered by Shriram Chits recent years not only indicated the usefulness of this savings instrument, but is also a reflection our customers trust in.
Chits one of the earliest investment instrument known to man, were founded by the enlightened communities of India. These have, ever since, worked to the advantages of communities that are batting scarce capital resource.
Shriram chits started its operations in the year 1974 with a single branch that has quickly grown into trusted household name for making chits a viable form of saving and borrowing to all sections of the social.
Shriram chits operates in four states. Tamil Nadu, Andhra Pradesh, karnataka and Maharastra, where has a reputation for timely disbursement of funds and excellent customer services which differen tiates it from other companies.
Using state of the art computer systems/networks and a transparent
accounting system, Shriram Chits have transformed this contemporary mehod of savings into an attractive personalised to banking system.
4.GENERAL
INSURANCE:-Shriram group has adopted a two strategy in this segment.
1. Broking arm – Armour Consultants – floated in year 2002 2. Retail Marketing Arm: Ski Marketing flotred in year 2001.
ARMUR CONSULTANTS PRIVATE LIMITED : INSURANCE EXPERTS AT YOUR SERVICE
Amour consultant is engaged in insurance broking in corporate insurance markets and has already aggregated business volumes in excess of Rs. 200 crores ($ 44 million) in premiums.
Amour consultant comprises a team of distinguished professionals from insurance, finance, law and other management discipline, who have vast business and managerial experience. The company has handled major claims for renowned clients. There have been several claim cases that were won even in the arbitration stage.
The tern at Armun Consultants begins with an in depth evaluation of the client company’s business environment. The company’ risk profile is then studied. Based on the results of these evaluations. The team then suggests the most cist effective, integrated insurance package that is perfectly suited to the company’s risk profile.
The company plans to extend its customer base of the existing 500000 policy holders to cross the 1 million mark by the end of financial year 2005-06.
5.LIFE INSURANCE:-
The shriram group plans to enter the life insurance segment 05. Am application has already been filed with the IRDA for the same. We are also exploring the possibilities of collaborating with a foreign partner in this venture. We expect to be a major player in this very fast growing sector, as a natural corollary of business philosophy and expertise.
6.STOCK
BROKING:-Our stock broking arm operates under the insight share Brokers Pvt. Ltd. It is a member of the National Stock Exchange , India and the Multi Commodity Exchange. This unit has expended the network by 150% over the last year and today it has more than 230 terminals spread across the length and breadth of the country.
It has a retail customer base of around 50000.
The company launched its new products like Derivatives and commodity Trading in early 2004.
A QUICK LOOK AT SOME OF THE SALIENT FEATURES
Limits of all clients are fixed at a pre-calculated level.
This is benefical to them in the long run as it prevents overtrading.
Atimely payments and direct share transfer facility from NSE.
Adequate risk control research support.
The clincher. Proactivate and preventive risk control.