Bajaj Finance has recently made several strategic changes to its personal loan process. These updates are designed to streamline operations, enhance risk controls, and align disbursal processes with evolving customer profiles and regulatory expectations. Here’s a comparative overview of the Old vs New Bajaj Finance process:
1. Paperless Case Handling
- Old Process: Fully paperless journey from login to disbursement.
- New Process: Remains fully paperless, continuing Bajaj’s commitment to seamless digital processing.
No Change
2. FOIR Check (Fixed Obligation to Income Ratio)
- Old Process: FOIR check was not required, simplifying eligibility criteria.
- New Process: Mandatory FOIR check is now implemented to ensure stronger financial profiling and risk mitigation.
3. Active Personal Loans Criteria
- Old Process: Customers could have more than 2 active personal loans.
- New Process: Now restricted to a maximum of 2 active personal loans, reflecting a more conservative lending approach.
4. Minimum Bank Balance Requirement
- Old Process: Customers were required to maintain a minimum balance of ₹100.
- New Process: The minimum balance requirement has been revised to ₹1,000, ensuring better financial stability for disbursal.
5. Interest on Minimum Usage – Drop Line Loans
- Old Process: For drop line facilities, only interest was charged on minimum usage after two years.
- New Process: Now, both interest and principal are charged even on minimum usage, aligning repayment terms more closely with standard loan structures.
6. Balance Transfer (BT) Process
- Old Process:
- After the initial DD (Demand Draft) deposit, a second DD was issued post submission of the receipt.
- This second DD had to be manually deposited, adding steps and time to the process.
- New Process:
- The second DD is no longer required.
- Upon submission of the BT receipt and confirmation that the first DD is deposited, the balance transfer amount is directly credited to the customer’s account via RTGS once Bajaj’s account is debited.
7. Minimum Salary Requirement
- Old Process:
- Only listed company employees were eligible.
- Minimum accepted salary: ₹36,000.
- New Process:
- Now open to both listed and unlisted company employees.
- However, the minimum salary requirement has increased to ₹50,000, improving borrower quality and reducing default risk.
Conclusion
These updates reflect Bajaj Finance’s shift toward more robust credit risk controls, improved borrower profiling, and a smoother digital experience. While some changes tighten eligibility, they also enhance operational efficiency and align with best lending practices.
Sales teams and channel partners are advised to familiarize themselves with the new norms to ensure accurate customer qualification and efficient onboarding.
Stay updated. Stay compliant.
