A

PROJECT REPORT ON

TO STUDY REGARDING THE IIFL GOLD LOAN IN LUDHIANA CITY (GILL ROAD)

Submitted to (Shoolini University, Solan, H.P)

In partial fulfilment of the degree of

Master of business administration (MBA)

(Session 2011-2013)

Submitted To: -

School of Business Management Submitted By: - Jai Prakash (Shoolini University, Solan, H.P) M.B.A 3th year

School of Business Management

(Shoolini University, Solan, H.P)

Declaration

I jai Prakash that this study report title, “ Gold Loan” submitted in partial fullment requirement for the degree of Master of Business Administration (M.B.A) is the record of organizer project study conducts by me under the guidance Mr. Atul Khosla” the ‘Present Dean’ of School of Business management Shoolini University, Solan, Himachal Pradesh, India.

Place: - Solan, H.P Dean Signature:-

Date: - Candidate Signature:-

Certificate

This is to certify that the project report title, “Gold Loan” in the Gill road, Ludhiana city, Punjab, India is submitted to “IIFL” in the partial fulfillment of the Degree of M.B.A of session(2012). This research work carried on by Jai Prakash under university Roll No 11359 under my supervision. The assistance and help received during the course of investigation has been fully acknowledged.

Major Advisor:-

Mr. Gagan Deep,

Branch Manager,

IIFL, Gill Road,

Ludhiana, Punjab,

Acknowledgment

I would like to thanks to India info line finance ltd. Ludhiana (Punjab) for giving opportunity to carry out the summer internship program in their organization the whole period spent with the organization has been immense learning experience about the gold loan

Preparing a project of such kind is not an easy task in itself in and i am sincerely thankful to all those people who helped me lot in preparing and completing this project

I am grateful to India info line finance lit who has given me this opportunity to carry out the project "to study regarding the IIFL gold loan in Ludhiana city" (Gill road)

Last but not least my sincere thanks to my parents and friends who directly or indirectly helped me to bring this project into the final shape

Table of content

CHAPTER No.

PARTICULARS PAGE No.

Declaration

16- Acknowledgement 1 Introduction 1-15

2 History of GOLD loan 16-30

3 Review of literature 31-33

4 Research Methodology Objective 34- 36

5 Data Analysis &Interpretation 37-48

6 Findings & Suggestions 49-52

7 Bibliography 53-55

8 APPENDIX 56-58

CHAPTER 1

INTRODUCTION

Every modern economy is based on a sound financial system a financial system. a set off institutional arrangements through which financial surpluses are mobilized from the unit generating surplus income and transferring them to the others in need of them. The activities which include production, distribution, exchange and holding of financial assets instruments of different kinds by financial institutions, banks and other intermediaries, of other market. Among these organizations, are banks, credit card companies, insurance companies, consumer finance companies, stock brokerages, investment funds and some government sponsored enterprises?

The financial markets have two major components; they are money market and capital market.

Money market

The money market refers to the market where borrowers and lenders exchange short-term funds to solve their liquidity needs.

Capital market

The capital market is a market for financial investments that are direct or indirect claims to capital.

Securities market

It refers to the markets for those financial instruments claims obligations that are commonly and readily transferable by sale. It has two inter dependent and inseparable segments the new issues

(primary) market and the stock (secondary) market. the secondary market enables those who hold securities to adjust their holdings in response to changes on their assessment of risk and return. The primary markets provide the channel of sale of new securities.

Stock market

A stock market, or equity market, is a private or public. Market for the trading of company stock and derivatives at an agreed price, these are securities listed on a stock exchange as well as those only traded privately. The size of the world stock market is estimated at about $36.6 trillion us at the beginning of october2008

FOREX MARKET

The foreign exchange market (currency, forex , or FX) market is where currency trading takes place .it is where banks and other official institutions facilitate the buying and selling of foreign currencies . The FX market is one of the largest and most liquid financial markets in the world, and includes trading between large banks, central banks, currency speculators , corporations, governments, and other institutions.

INDIA INFOLINE

India info line is one stop financial services shop, most respected for quality if its advice, personalized service and cutting edge technology. Listed in Bombay and national stock exchange with a net worth of INR 200 corer and a market cap of over INR 1970 corer. The company has a network of 976 business locations (branches and sub brokers) spread across 365 cities and towns. It has more than 8000000 customers .it is registered with NSDL as well as CDSL as a depository participant, providing a one stop solution for clients

trading in the equities market first company in India to foray into the online distribution of mutual funds.

Chapter 2

History of GOLD loan

Gold is a brilliant yellow precious metal that is resistant to air and water corrosion. It is a very soft and pure metal. Gold is the most malleable and ductile metal found on earth. That’s why it is expensive and it is alloyed with other metals, usually copper and silver to make it less expensive and harder, a karat is the unit that measures the purity of gold jewellery or else it is hallmarked with a three digit number that indicates the parts per thousand of gold. Some countries hallmark gold with a three digit number that indicates the parts per thousand of gold. The alloyed gold comes in

many colours and may not be bright yellow all the time. It has long been a values commodity, particularly in India where it is considered auspicious, and had been in use for centuries in the form of jewellery, coins, bullions, electronics, and dentistry, also for other medical purposes. Though gold is a highly liquid asset, it wasn’t until recently that consumers leveraged it effectively to meet their liquidity needs.

Lenders provide loans by securing gold assets as collateral. Compared with the rest of the world in India the gold loan market is big business. Until a decade back, most of the lending was in the unorganized sector through pawnbrokers and money lenders. However this scenario changed with the entrance of organized sector players such as banks and non banking finance companies (NBFCs) which now command more than 25% of the market. The organized gold loan market has grown at 40% CAGR form 2002 to 2010. NBFCs have been a major driving force behind this growth given their extensive network. Faster turnaround time, higher loan to value ratios and the ability to serve non-bankable customers. Of late, banks have improved their gold loan product features and services.Coupled with comparatively lower interest rates charges, bank stand to gain market share at the expanses of NBFCs in the near future.

The eligibility criteria required to apply for gold lone in India includes three factors. Firs-tly, the person has to be above 18 years of age. Secondly, the person applying or a gold loan in india should have a ID & address proof and last but not the least the applicant should be working on a regular salary basis , means there should be a constant flow of income.

BACKGROUND: GOLD AND THE INDIAN SOCIETY

Gold has traditionally been among the most liquid asset and is an accepted universal currency. it has traditionally been consumed by individuals in the form of jewellery, especially in India were it is considered auspicious. Gold is presumed to be a safe haven in times of economic uncertainty, a fact exemplified by a 30% increases the value of gold over the past year India is one of the largest market of gold accounting for approximately 10% of the total world gold stock as of 2010. Rural India accounts for 65% of this gold stock. Though gold price have increased 19% CAGR from 2002 to 2010, gold stock in India has grown at 22% CAGR During the same period to 18000 tons (Rs.32000 billion). The demand for gold has followed a regional trend with southern India accounting for 40% of annual demand, followed by the west (25%), north (20-25%) and east (10-15%).

Looking for Gold Loan Market

Major Players

The Key Players in the Indian gold loan market include the unorganized sector, banks _ public/private/cooperatives and NBFCs. While the unorganised sector, comprising local pawnbroker and money leader has traditionally dominated the gold loan market for money decades and still commands nearly 75% of the market the organized sector led by NBFCs is catching up fast. The organized sector has grown at a rapid paces of 40% CAGR form the 2002 to 2010 and is expected to grow by 33% to41% CAGR in 2011

And in doing so these companies are challenges the dominance of the large unorganised sector within the organized sector, NBFCs have grown at a repaid rate from 18.4% in FY to 32.2% in FY10. (Source: cognizant 20-20 insight jan.2012)

Muthoot finance

With a tagline loan in just 5 minutes muthoot fiancés is a India’s largest gold loan company & is the fast choice of Indian who want to make their dream a reality. May the dream be to start their own business or to buy their own home: muthoot finance has helped almost every Indians dream come true, trusted by over 76000 customer every day muthoot finance gold loan has services and products that fit the need of any customers , making it the quickest ,most convenient and safest way to take gold loan

Headquartered in the southern Indian state of Kerala, their operating history has evolved over a period of 72 since M George muthoot (the father of our promoter) founder a gold loan business in 1939 under the heritage of a treading business established by his father, ninan mathai muthoot in 1987. since our formation, we have broadened the scale and geographic scope of their retail leading operation so that, as of march 31, 2008, 2009, 2010, 2011 and in the period ended September 30, 2011 revenue from their gold loan business constituted 95.97% 96.71% 98.08% 98.75% and 99.01% respectively , of their total income,

Manappuram

Manappuram group was founded by late Mr. V. C. Padmanabhan many decades ago currently managed by his son Mr. V. P. Nandakumar, executive chairman of manappuram general finance & ltd (“manappuram” or MAGFIL) manappuram, registered as a deposit taking NBFC is the flagship company of manappuram group

Headquartered in the state of Kerala in southern India is the largest listed gold loan company in India. Primarily engaged in providing loans against household used jewellery pledged by its customer’s. Amongst the safest form of asset lending, with both physical custody and beneficial ownership with the lender.

MUTHOT FINCORP

Muthoot fincorp limited, the flagship company of the Muthoot pappachan group (MGP), is a finance company that caters to the financial needs of retail and institutional customers. They are registered with the reserve bank of India as a systemically important non deposit taking non banking finance company (NBFC) with a paid up capital of Rs 181.25 cores and a net owned fund of Rs 824.00 corers as on 31. 12. 2011 Muthoot fincorp limited has wide network of over 2200 branches (as on 31/3/2012) and expanding more.

KARVY FINANCE

KARVY, the parent group is one of India’s largest integrated financial services providers with a 25+ year operating history. KARVY covers the entire spectrum of financial services providers with a stock broking. Commodities broking / finance registry services depository services merchant banking & corporate finance IPO distribution investment banking realty services insurance broking / distribution and distribution of financial products like mutual funds bonds personal finance advisory services BPO / technology services wealth management and loans KARVY has pan India personal with over 575 offices in 375 locations across India and overseas at Dubai and New York and has over 9000 highly qualified staff. Keeping in line with KARVY credo to be a leading and preferred financial services provider the focus of KARVY finance will be to provide the complete spectrum of financial services products to their customers and build a strong nationwide distribution footprint to emerges as the leader in capital markets and retail finance in India

Their niche lies in the fulfilment of customers financial needs at all stages of their life by making possible simple and flexible financial solutions tailor made to suit customers requirements

INDIA INFOLINE

The IIFL (India Info line) group, comprising the holding company, India Infoline Ltd (NSE: INDIAINFO, BSE: 532636) and its subsidiaries, is one of India’s premier providers of financial services.

IIFL offers advice and execution platform for the entire range of financial services covering products ranging from Equities and derivatives, Commodities, Wealth management, Asset management, Insurance, Fixed deposits, Loans, Investment Banking, Gold bonds and other small savings instruments.

IIFL has received membership of the Colombo Stock Exchange becoming the first foreign broker to enter Sri Lanka. IIFL owns and manages the website, www.indiainfoline.com, which is one of India’s leading online destinations for personal finance, stock markets, economy and business. IIFL has been awarded the ‘Best Broker, India’ by Finance Asia and the ‘Most improved brokerage, India’ in theAsiaMoney polls. India Info line was also adjudged as ‘Fastest Growing Equity Broking House - Large firms’ by Dun & Bradstreet. A forerunner in the field of equity research, IIFL’s research is acknowledged by none other than Forbes as ‘Best of the Web’ and ‘…a must read for investors in Asia’.

Our research is available not just over the Internet but also on international wire services like Bloomberg, Thomson First Call and Internet Securities besides others where it is amongst one of the most read Indian brokers.

IIFL is a listed company with a consolidated group net worth of about Rs 1,800 crores. The income and net profit during FY2010-11 were Rs. 14.7 billion and Rs. 2.1 billion respectively.

The Group has a consistent and uninterrupted track record of profits and dividends since its listing in 2005. The company is listed on both Exchanges and also trades in the derivatives segment.

IIFL’s Crisil and ICRA Rating for short term is top rated as CRISIL A1+ and ICRA (A1+) respectively. For long term, IIFL has been rated ICRA (AA-) by ICRA and CRISIL AA-/Stable by CRISIL indicating high degree of safety for timely servicing of financial obligations.IIFL network over 3,000 business locations spread more than 500 cities in India. You can reach us in a variety of ways, online, over the phone and through our branches. All our offices are connected with the corporate office in Mumbai with cutting edge networking technology. The group caters to a customer base of about a million customers. Our physical presence in key global markets includes subsidiaries in Colombo, Dubai, New York, Mauritius, London, Singapore and Hong Kong.

Difference between the GOLD LOAN and personal loan

S.N.

BASIS GOLD LOAN PERSONAL LOAN

1 Loan amount No limit Rs 5000/-onward

Min. Amount Rs 10000/-max up to Rs 1000000/-

2 Mode Cash loan By A/c payee cheque3 Rate of interest 11.40 to 26.40%

based on loan amount

Ranges between 28 to32%

4 Lock in period No lock in period Ranges between 6 to 12 month

5 Flexibility Totally flexible – Very less EMIs fixed at

pre- closure and part closure

the beginning of the loan.

6 Documentation Address proof Photo ID PDC Driver licence

ITR form 16ID proof & residence proofSalary slip & photograph Previous track record.

7 Pre-payment Possible without penalty

Usually not possible before 6 month after that with penalty.

8 Hidden charges No hidden charges even CWT is borne by the company

Quite many processing fee, handling fee, service charges , etc.

9 Customer profile eligibility

Loan is provided to all customer

Only to professionals or salaried class people in employment with good companies.

10 Service charges No service charges 2 to 8% loan amount payable the service charges.

11 Interest on part payment

Interest charges only on the outstanding amount

On the entire loan amount as fixed in the beginning.

12 Penalties No penalties on part and fore closure

Heavy penalty on part closure.

13 Personalize attention

Prompt and personalized attention is given to the each and every customer

DMAs and DSAs handle the customers and not get personal attraction form the bank.

14 Revolving credit Available as Loan has the fixed

principle gets revolved on payment of interest every 3 months

tenure and payment of both interest and principal is to be made.

15 Verification No field verification Field verification is carried out.

16 Minimum salary criteria

No such criteria Monthly NET salary be 1.5 items the EMI.

17 Time duration 10 – 15 days 15 minutes. 18 Secrecy Absolute secrecy is

maintained No secrecy maintained.

Procedure of creating new loan account in gold lone software

Open the shortcut of gold loan.

Put your user ID and password.

Click on truncation after that go new lone express entry.

Before doing anything we have to press ‘+’ for further process and generate gold loan number.

We have to fill customer details with three stages Client details Address details IP photograph (we browse the photo of customer and gold

items one by one) After fill all these details press ‘save’ GOLD LOAN number will

be generated

When the gold loan number will generated please ensure before doing further process deduces must be done

If there is any deviation (in terms of ROI, per gram rate and valuation %age)so, it should enter in to the client details as the first stage

Now again we have to fill the details a s under

Appraisal form Cash disbursal Bank details

(Appraisal form : valuer I Before start anything we have to press on ‘+’ then enter all the information like item, Gross weight , Net weight, per gram weight after filling these information press ‘save’ this process should be repeated for each and every item by valuer I

Valuer II: now the above noted process should be repeated by valuer II also when we enter the all information on appraisal form finally press the ‘Edit’ and then ‘Save’.

Cash disbursal: first press ‘+’ then enter the denomination of cash to be disbursed to the customer then press disburse cash finally we press ‘Edit ‘and ‘Save’.

Bank details: there is no need to fill bank details in the case loan is less than 10 laces, on the other hand if loan above 10 laces then press add new then enter the details then press ‘Edit’ and ‘save’.

Now we should give the print command and get the hard copy for customers signature the print will generated the following document on six pages.

Application form (page 1) DPN(page 1) Appraisal form (page 2) Declaration form (page 3) Borrower copy (page 4)-given to the customer Token card (page 5) – original should given to the customer and

take Xerox for office record. Cash disbursal receipt(page 6)

Total 11 signature are obtaining form the customer on the above documents we should give three documents to the customer.

Borrower copy Token card

Cash receipt Now we should generate/ complete the following document and upload

the same along with the five documents for sanctioning of the loan. I.D proof Address proof Pan card (in the case of above loan is 50000) TVR from CPV report

These are the various type of gold testing in India info line

Acid testAcids have +ve charge particle gold rubbing with stone and throw them acids if gold colour change them the gold is not original if colour is not change gold is original

Flexibility testGold move in all direction gold is very flexible to move other element can break when move but gold can’t be break

Sound testWe check the sound of gold if gold bangle and other element bangle both are hit any particle we hear the sound if gold is original it give specific sound if gold is not original it give same sound as they other bangle.

Colour testGold have yellow colour but if gold is duplicate its colour is different from yellow

Smell testGold have specific smell as compared to other element if we have test the gold smell there are the specific machine and cheek the gold smell

Salt test

When gold mixed in salt if colour change gold is not original if colour not change gold is original

Use ability testBranded new gold are very difficult to check the originality of gold but already used gold are easily to check the gold originality

Weight test If we see the 50 gram of gold and 50 gram of sugar then size of gold is small as compare to sugar.

Rubbing testWhen gold rubbing with stone if gold is original it appears yellow colour if gold is not original it having different colour.

GLOBAL SCENARIO

Loan against gold are traditionally considered taboo in households. Even when gold is pledged it is still done as the last resort. Gold jewellery at home is considered on par with goddess lakshmi and hence hedging gold for a loan is considered inappropriate.

Gold loan market this perception towards gold loan has gradually undergone a change and individuals have started seeing the value of loan against gold as against availing a personal loan the gold loan market that was highly fragmented and dominated by local jewellers, has gradually seen the entry and growth of NBFCs and banks a clear indication of the viability of gold loans as an important loan product.

The gold loans market has recently seen a lot of action firm both the consumers and the industry. With gold spiralling upwards borrowers

are able to get decent valuation for their gold and the process of getting such a secured loan is also largely hassle free the southern Indian markets have been particularly lucrative for the gold loan business -85%-90% of the gold loan market is in the states of Andhra Pradesh, Tamil nadu and Kerala.

According to an estimation of the ICRA management consulting services (IMACS) the organized gold loan market in India stands at $8 billion and is growing at a compound annual growth rate (CAGER) of 40% since 2002 there is still ample potential in this segment and with more banks /NBFCs coming into this business, there could be considerable growth in terms of volume.

Why NBFCs are growing

By virtue of their business model, NBFCs have grown rapidly over the last few years as evidenced by their increase in market share. The key differentiators for the NBFCs as compared to the banks and cooperatives are.

Quick loan approvals and disbursals, with minimal documentation

Multitude of loan options with higher LTVs. Greater accessibility due to better penetration. Better operating cost structure visa-a-vies banks. Flexibility provision of very small and very large loan amounts.

Regulatory environment

While there are no means of controlling the unorganized sector the organized sector of banks and NBFCs come under the purview of the reserve banks of India (RBI) which has norms to regulate the gold loan market. NBFCs had been traditionally disbursing gold loans through funds received from banks under priority lending for the

agricultural sector. The loans under this category enjoy an interest rate discount of approximately 200 bps over the normal interest rates charged by banks. But to reduce the risk in the system the RBI ruled in February 2011 that bank credit to NBFCs for lending against gold jewellery will not be treated as exposure to the agricultural sector. The resulting higher interest rate for funds is expected to promote better lending practices by NBFCs to creditworthy borrowers. With the continued rapid growth of the gold loan market in India RBI has started examining lenders especially NBFCs for possible concentration risks (i.e. risks due to a sharp decline in the prices of gold for a lender with a large exposure to gold assets pledged against the loans.)

All lenders are required to adhere to the KYC norms. NBFCs allegedly have not strictly followed this regulation and hence have been under the RBI s scanner for some time now. Currently NBFCs gold loan are regulated by RBI. However, some state governments require compliance with relevant state money lending statutes .if the state governments succeed in enforcing this regulation the profit margin of NBFCs would be further squeezed. There have been recent complaints regarding high interest rates and penalty rates charged by NBFCs. this has caught the attention of regulators any regulatory move in this regard would impact the profit margin of NBFCs.

Impact analysis: RBI’S gold loan regulation for NBFCs

In its latest move, RBI has come up with a norm for NBFCs that does not allow them to offer a loan above 60% of the value of gold.

Why it is a setback for NBFCs?

RBI’s guideline is a setback for NBFCs because the new rules require greater capital adequacy for the financing companies and the thresh

hold for the value of loan against gold is proposed to be at a lower value. This would mean that ornaments of the same value are expected to result in a lesser loan amount and that to at a slightly higher cost.

Check out other aspects where NBFCs could be adversely affected. Earlier NBFCs used to provide up to 80% loan against the gold now it would be reduced to mere 60% of the gold value. Gold loans from banks would now become more attractive than NBFCs until they are allowed to lend more on the value of pledged gold the cost of funding for NBFCs would go up due to the RBIs restriction to allow the NBFCs to finance its gold loan from the banks as an exposure to agricultural loan. NBFCs might have to reduce the interest rate to sustain hold in the gold loan market. Hence the current profit margin would come down significantly.

What’s in favour of NBFCs?

Though this regulation would it hard on the revenue as well as bottom-line of the NBFCs there still some positive assistive to this move:

NBFCs would continue to enjoy the nice segment advantage due to its deep presence in the gold loan market at present; NBFCs have a 32% share of the total gold loan market. The gold loan would still be cheaper than the personal loan, so the size of market is set to grow bigger in coming days.

There are many untapped areas where NBFCs could have a better reach than the banks. The advantage o f trouble free and quick loan processing by NBFCs would give them the edge over the banks. NBFCs can raise funds through market borrowings, i.e. Commercial papers to lower the cost of fund.

.

Objectives

In this project, the primary objective is to the consumer perception regarding gold loan.

To study about factor affecting customer perception. To find out the satisfaction level of customer. To find out the most preferred channel.

Limitation of the study

Time limit is the major constraint . some difficulty getting the people answer the survey

questions because of their workload and the responsibility they have busy his work.

As per company rules many information was not disclosed.

Finding &conclusions are based on superficial knowledge. The response given by the respondents may not be 100%

accurate and may be biased.

CHAPTER 4

RESEARCH METHOEOLOGY

Research methodology is a way to systematically solve the problem. It may be understood has a science of studying how research is done scientifically.

This of research methodology is that it helps in identifying the problem, collecting, analyzing the required information data and providing an alternative solution to the problem .It also helps in collecting the vital information that is required by the top management to assist them for the better decision making both day to day decision and critical ones. Report is based on primary as well

secondary data, however primary data collection was given more importance since it is overhearing

Meaning of research

Research is defined as “a scientific & systematic search for pertinent information on a specific topic” research is an art of scientific investigation. Research is a systemized effort to gain new knowledge. It is a careful inquiry especially through search for new facts in any branch of knowledge. the research for knowledge through objective and systematic method of solution to a problem is a research

Research design

Research design is the conceptual structure within. Which research is conducted; it constitutes the blueprint for the collection, measurement and analysis of data.

As search the design includes an outline of what the researcher will do from writing hypothesis and its operational implication to the final analysis of data

Research design can be three types

Exploratory research design Descriptive research design Experimental research design

The present study is descriptive in nature, as it seeks to discover ideas and insight to bring out new relationship. For fulfilling the predefined objectives the descriptive research was conducted. An Exhaustive market survey of various costumers enough to provide opportunity for considering different aspects of problem under study

The research objectives, questionnaire was designed.

Data collocation

Two type of data collection primary and secondary

Primary data

Primary data refer to the first hand fresh data collected from the field it

was collected through the questionnaire method. Questionnaire will

includes MCQ, ranking, checklist, and rating type of equation

Secondary data

Secondary data refer to the already published information. Secondary data was collected from various sources magazines, journals, newspaper, internet,

government, and industry

Research is based on primary Secondary data. Research has been done by primary data collection, and primary data has been collected by interacting with various people in Ludhiana city. The secondary data has been collected through various journals and websites.

Out of total 150 questionnaires distributed only 100 questionnaires were received back. The questionnaires focused on the gold loan, how you know about the gold loan, benefit of gold loan, why to deal gold loan and the level of satisfaction of the customer.

Data sampling

The target audient for this research includes malout city people. It was also collected through personal visits to persons, by formal and informal talks and through filling up the questionnaire prepared. The data has been analyzed by using mathematical/Statistical tool.

Sampling unit:-a decision has to take concerning sampling unit before selecting sample. Here I have my sample unit includes the people of malout city.

Sample size:- The sample size of my project is limited to 100 people only. Out of which only 86% people had know about the gold loan. Other 14% people did not have know about the gold loan.

Sampling technique:-the selection of respondents was done on the basis of convenience sampling. In convincing sampling the samples are being selected on the basis of ease or convenience. The respondents who are easily approachable will be selected in this project.

Chapter 5

DATA INTERPRETATION AND ANALYSIS

1 are you aware about gold loan?

option yes Noresponse 86 14% 86% 14%

86%

14%

awereness response

yesno

Analysis: - from the above graph it is clear that 86% of the population are aware about the gold loan and 14% of the population are not

Interpretation: - from the above graph we can see that majority are aware about the gold loan and few are not aware about the gold loan.

2 how do you come to know about gold loan?

option TV Advertisement

Wall paintings

Direct marketing

Newspaper

banners

Friends & relative

response

48 13 22 5 4 8

% 48 13 22 5 4 8

48%

13%

22%

5%4%

8%

reasons of awerenessoption TV Advertisement Wall paintings Direct marketing Newspaper banners Friends & relatives

Analysis:-it is clear from the table that 48% of the aware only because of tv advertisement, 13% are because of hoardings, 22% are due to direct marketing, 5% are newspaper, 4% are banners and 8% are due to friends and family.

Interpretation:-from the above graph it is clear that majority of the population are aware only because of TV advertisement, some are because of direct marketing and very few are because of banners and newspapers.

3 have you ever deal in gold loan?

Options yes NoResponses 60 40% 60 40

60%

40%

Chart Titleoption yes no

Analysis: - from the above graph we can see that 60% of the population have deal and 40%have not deal in gold.

Interpretation: - from the above graph we can see that most of the people are dealing in gold loan and very few are not dealing with gold loan.

4 Do you want to deal in gold loan in future?

Options yes NoResponses 73 27% 73 27

73%

27%

future dealingyes no

Analysis:- from the above graph it is clear that 73% of people are in a favour of dealing with a gold loan in future and 27% are not in a favour.

Interpretation:- from the above graph it is clear that most of the population are in favour of future dealing with IIFL .And very small are not in favour

5:-with which company you deal or you wish to deal?

Options Muthoot finance

Muthoot fincrop

Mannapuram Karvy finance

Future group

IIFL Other

Responses

29 11 12 8 9 26 5

% 29 11 12 8 9 26 5

29%

11%12%8%9%

26%5%

company

Muthoot finance Muthoot fincrop Mannapuram

Karvy finance Future group IIFL

other

Analysis:- from the above graph it is clear that 29%of the population dealing with muthoot finance, 26%are dealing with IIFL or wishing to deal with IIFL and few are dealing with karvy, muthoot fincorp, future group

Interpretation:- from the above graph it is clear that most of the customer are dealing with muthoot finance and IIFL. And very small are dealing with Mannapuram, Muthoot fincorp, and very few are dealing with future group, karvy.

6 which of the following is the most preferable thing at the time of availing gold loan

Options rate of interest

Maximum per gram

Flexibility customer dealing

Any other

rate Responses 70 66 40 69 2% 28.3 26.7 16.2 27.9 0.8

28%

27%16%

28%1%

preferancesrate of interest Maximum per gram rate Flexibility customer dealing Any other

Analysis:-from the above graph it is clear that 28.3%of the population are preferring only because of rate of interest ,26.7%are because of max per gram rate,27.9%are because of good customer dealing because few are flexibility16.2%and vary few are other

Interpretation:- from the above graph it is clear that most of the population are preferring company only because of rate of interest, some are preferring because of max per gram rate and good customer dealing, and vary few are flexibility and other

7 are you satisfied with the current deal?

Options yes NoResponses 39 61% 39 61

39%

61%

current dealyes no

Analysis: - from the above graph it is clear that 39% of the population are not satisfied with their current deal and 61% of the population are satisfied

Interpretation: - from the above graph it is clear that most of the population are not satisfied with their current deal they want to change their current deal and some are satisfied with their current deal.

8 which of the following are Main reason of satisfaction

options rate of interest

Maximum rate

Flexibility customer dealing

responses 48 37 9 6

% 48 37 9 6

48%

37%

9%6%

satisfaction factorrate of interest Maximum rate Flexibility customer dealing

Analysis:-from the above graph it is clear that 48%f the population are satisfied only because of rate of interest 37%are because of max per gram rate6% are because of good customer dealing 9%because few are flexibility and vary few are other

Interpretation: - from the above graph it is clear that most of the person are satisfied with rate of interest and max per gram rate. Some are due to good customer dealing, and flexibility, and very few are with others.

9 do you want to change your loan by any other company?

Options yes NoResponses 75 25% 75 25

yes75%

no25%

company change

Analysis: - from the above graph it is clear that 75% of the population want to change their company and 25%of the population do not want to change.

Interpretation: - from the above graph it is clear that most of the population want to change their company and very few want to remain with the same company.

CHAPTER6

RESULTS & FINDINGS

It is also clear most of people prefer IIFL and Muthoot to take the gold loan as compare to other companies.

IIFL are providing special schemes which are helpful to attract customer.

Most of the customers prefer IIFL gold loan because of good per gram rates.

There are no charges for entry and exit loans. India info line finances ltd understand the dreams, needs,

aspirations, concerns and resources are unique and this is reflected in every move they do for the sake of individual customer.

They are treating the customer as their family member and guiding them properly.

It is clear from analysis that most of population are aware

about IIFL in term of gold loan.

In Occupation group most of the Investors were Private

employees, the second most Investors were Govt.

employees and the least were associated with Agriculture.

SUGGESTION

The company has provided proper training to new employees so that they can attract customers easily.

The company can conduct seminars and workshops so that they can provide information to the people and give answers to queries.

The company should increases the advertisement regarding the gold loan in national TV.

The company should adopt some strategies to increase the business through existing customers.

The company should create the awareness about the gold loan among the general public. They should visit the jewellers. Businessman and other work places so that they can guide them.

IIFL should use traditional ways of promotion in rural location. Latest communication are lacking in Ludhiana city

CONCLUSION

Most of the companies which are offering gold loan in India are still at growth stage and hence there are ample of opportunities for all the companies which are offering gold loan to tap customer. The perception of customer is yet to be changed because still they don’t feel comfortable in taking gold loan because of traditional approach hence there is a lot of education has to be provided to make people aware of gold loan. To achieve sustainable growth in this sector India info line finance limited needs to endeavour with maximum efforts the company can achieve several milestones in future while maintaining the existing customer relationship.

BIBLIOGRAPHY

Kothari C.R, Research methodology methods and techniques 2004, new age international pvt. Ltd, New Delhi edition 2nd pg 56-57

Malhotra Naresh and dash Satyabhushan marketing research, 2010 Pearson publication edition 2nd pg 40-48

Luck davidet al marketing research, 2004 prentice hall India, edition 7th pg 53-59

Kejriwalarun (2012): article “riches to rags story of the gold loan industry in “business standard”

Bureau (2012): article “gold loan firms setting up SRO as RBI tighten screws” in “economic time”

johnnevin (2012): article “and the RBI on lenders” in “business world”

Jaykumar, jhon (2011): in this article “lure of the yellow metal” in in “business world”

Bureau (2012): article “should you invest in NCDS of the gold loan finance company” in “economic time”

Ragoanil (2012) in his article “gold loan: making gold work for you” in “business world”

Websites

www.indiainfoline.com

www.5paisa.com

http://www.business-standard.com/india/news/riches-to-rags-storythe-gold-loan-industary/473351

http://www.crindia.com/commodity/gold.html

http://www.moneycontrol.com/master/your money /stocks-news-consumption.php ?cat= gold& at0no:=703262

http://www.moneycontrol.com/master/your money /stocks-news-consumption.php?cat= gold& at0no:=694868

http://www.business-standard.com/india/news/rbi-norms-to-moderate -gold-loan-companies%5cgrowth-crisil/161230/on

APPENDIX

QuestionnaireGeneral Information

NAME..............

ADDRESS....................

AGE...........

CONTACT NO.................... EMAIL...............................................

Q.1Are you aware about gold loan?

A yes B No

Q.2Occupation of respondents:

a) Farmer [ ] b) Professional [ ]

c) Private employee [ ] d) Business man [ ]

e) Govt. Employee [ ] f) Household [ ]

Q.3Monthly Income:

a) 10000-15000 [ ] b) 15000-30000 [ ]

c) 30000-50000 [ ] d) above 50000 [ ]

Q.4 how do you come to know about gold loan?

A. TV Advertisement B. Wall paintings/hoardings C. Direct marketing

D. Newspaper E. banners F. Friends & relatives

Q.5 have you ever deal in gold loan?

A. yes B. No

Q.6 Do you want to deal in gold loan in future? (If yes which company)

A. yes B. No

Q.7 with which company you deal or you wish to deal?

A. Muthoot finance B. Muthoot fincrop C. Mannapuram

D. Karvy finance E. Future group F. IIFL

G. other (specify)

Q.8Have you faced any problem while taking the gold loan.

Yes [ ] No [ ]

Q.9If yes, please mention the problem : -

a) Delay in sanctioning of loan [ ]

b) Delay in disbursement of loan [ ]

c) Insufficient loan [ ]

d) High rate of interest [ ]

e) Quality of service is poor [ ]

f) Documentation [ ]

g) Valuation of gold [ ]

Q.10How many years you are required to repay the loan amount:

a) 4 years [ ] c) 8 years [ ]

b) 6 years [ ] d) 10 years [ ]

Q.11 which of the following is the most preferable thing at the time of availing gold loan?

A. rate of interest B. Maximum per gram rate C. Flexibility

D. customer dealing E. Any other (specify)

Q.12 are you satisfied with the current deal?

A. yes B. No

Q.13 which of the following are main reason of satisfaction

A. rate of interest B. Maximum rate C. Flexibility

D. customer dealing E. Any other (specify)

Q.14 do you want to change your loan by any other company?

A. yes B. No

Q.15Your opinion about interest charged by the company:

a) Very High [ ] c) Reasonable [ ]

b) High [ ] d) Low [ ]

Q.16Your Suggestions towards gold loan.

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........................................................................................................

(Thanks for your kind cooperation)

Signature.............................

Date................................