Opportunity In Recession !
Bajaj Finance is a lending company for consumer essential and other products. Bajaj is a vehicle company, since it started with lending to vehicles. But then it became a company catering to all the small financial needs. This company raises money from the market and gives it to the customer in debt.
This company has raised Rs 10,000 crore from the market recently.Stock markets hit a blow early last year as non-banking finance companies got into trouble.But in the same period, this company crossed new parameters of progress.Today the market value of the company has reached the 5th position in the finance and bank sectors.It is the 5th largest company in the world with the highest growth in the last year.Over the past five years, the company’s share has risen by 1,318 percent.The company, which has a capital inflow of Rs 2,500 crore, has a capital of Rs 1.5 lakh crore today and has made a profit of Rs 8,000 crore this year.It has an office in 2000 cities in the country and is currently a lending company of 4 million customers.
The office is preparing to open 450 more cities in the future. Elsewhere, the proportion of borrowers has declined during the last year, but in the same period, the company has distributed 38 percent more loans than last year.This means that the company’s progress has not stopped under any financial criteria.
The company focuses on the middle and
the focus is on the lower- middle class in India.This category requires low-cost loans to buy TVs, fridges, air conditioners, household items .These banks are unable to meet this requirement .The loan is six months to three years.Given the credit history and potential of such customers, the company made small loans. As far as experience is concerned that small loans are less likely to debt immersion and ordinary people do not usually do so. The company has taken advantage of the digital transactions , which made the loan disbursement process easy and cost effective. No one immediately believes that a company can make such a profit by distributing small loans. But the number of borrowers is around four crore and the price has reached the company in 2000 cities, it should be noted that it is not surprising then that the small lending companies are leading the economy.