Bajaj Finance stopped financing IT Dealers in Nashik?

Priyanka Pugaokar
New Update



Finance is a backbone of IT hardware industry in India. Hardware industry has been going through tough times where dealers are facing tough challenge from LFRs and E Commerce and struggling hard to recover their cost.  In such scenario getting financial assistance to survive in the market becomes a necessity. However, if finance companies turn their back towards IT dealers where will they go? IT dealers in Nashik are asking this question to Bajaj Finance who has allegedly stopped financing IT dealers. IT dealers in Nashik have alleged that Bajaj Finance has stopped giving financial assistance to IT dealers. However, the finance company is allegedly financing LFRs and certain selected dealers who are into sales of Consumer durables along with IT products such as laptops.

Vineet Kankaria, Secretary of Computer Association of Nashik (CAN) said, “Bajaj Finance is not giving finance to IT Dealers in Nashik. But they are giving Finance to CEs (Consumer Electronics), who also sell laptops along with TV, Fridge etc. Beside, LFR also get finance from Bajaj. This is hampering the business of lot of small dealers in Nasik.”

Mr. Kankaria alleged that even after several requests, representatives of Bajaj Finance refused to meet the CAN members.


He said, “I, as a secretary of CAN had met the manager of Bajaj Finance regarding finance for IT hardware dealers. But he straight away refused to discuss on the issue. Three months back, Secretary, President and few senior CAN members went to Bajaj Office. We waited there for one hour, but there was no response.”

“We also sent mail to Bajaj Finance on 16.09.02014 and we are still awaiting their reply”, he said.

“We want Bajaj Finance to clarify that whether it has stopped giving finance for laptops for certain selected dealers or computer dealers as a whole in Nashik”, he added.


DQ Week approached Bajaj Finance and tried to understand their take on the entire controversy. When contacted Bajaj Finance representative said, "We have informed you that we had stopped financing IT products in year 2009  and as per our policy we are unable to disclose the reason."

CAN has taken up the matter with the Federation of IT Associations of Maharashtra (FITAM) and sought federation’s help in resolving the issue.

“We have approached FITAM. We have also written mails to various associations in Maharashtra and tried to find out whether other cities are also facing similar issue with Bajaj Finance”, Mr. Kankaria said.


DQ Week also approached FITAM president Mr. Champakraj Gurjar and sought his stand over the issue. Mr. Gurjar said, “This issue is not new. Bajaj Finance has stopped giving finance to IT hardware dealers. CAN members have approached us. As a federation we will definitely take appropriate steps to resolve the issue. All the prominent members of FITAM will be meeting next month and we will come up with a solution.”

IT hardware dealers in other parts of Maharashtra are also facing same issue with Bajaj Finance.

Sanjay Gaurkar, president of Chandrapur IT Association said that IT dealers in Chandrapur are facing same issue. Dipak Mortale, President of Nanded IT Association said that Bajaj finance suddenly stopped financing IT hardware dealers three years back without any official announcement.


Pankaj Shah, vice president of Mumbai based association of System Integrators, ASIRT said that in Mumbai, Bajaj Finance besides other such finance providers for IT products, have stopped Loans for IT, PCs, Notebooks through Channel Sales more than 3 Years back. They said bad loans was a major hindrance from average profit point of view and buyback value of IT products was comparatively less than what was due and they stationed their executives in LFRs, where there were many Walk in Customers to cater to at a single point.

Rajesh Kshatriya, president of CAN said, “Small dealers are in actual need of finance. Bajaj finance should provide financial assistance to IT dealers who are facing tough challenge for survival from big LFRs and online business portals. Also they should clear their terms and policies of financing IT dealers”

CAN has appealed all the IT associations in Maharashtra to stand together and collectively take legal action against Bajaj Finance.