Bajaj Finance: Unsecured Loans Underwriting

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Let's take a step back. Within unsecured loans, what sort of individual products are there? I'm interested in a few different things, like the sourcing of loans, the underwriting aspect, and the collection process. Could you describe one or two large sub-segments within the eastern region, where you're currently based, and discuss the sourcing, underwriting, and collection?

This approach helped customers who had never taken loans before. For example, when funding a 20,000 rupee television, Bajaj would fund 15,000 rupees, with the customer paying 5,000 rupees. This limited risk approach allowed Bajaj to test the customer's repayment habits without prior credit history. It's like testing the waters by throwing a stone to see how far it goes.

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Let's take a step back. Within unsecured loans, what sort of individual products are there? I'm interested in a few different things, like the sourcing of loans, the underwriting aspect, and the collection process. Could you describe one or two large sub-segments within the eastern region, where you're currently based, and discuss the sourcing, underwriting, and collection?

Bajaj used this concept to evaluate customers' repayment habits over six to 12 months. They assessed the customer's behavior, repayment capacity, and discipline. Based on this, they offered personal loans, such as three lakh or two lakh rupees, depending on the product line. For instance, a customer buying an 80,000 iPhone and borrowing 60,000 might receive a higher offer of four lakh or five lakh rupees. In contrast, someone buying a 15,000 rupee mobile might get an offer of 1.5 lakh or two lakhs.

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