GOLD LOAN

INTRODUCTION
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. Thats
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 wasnt until
recently that consumers leveraged it effectively to meet their liquidity needs.
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.
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%).

SHREE YOGINDRA SAGAR INSTITUTE OF TECH. AND SCIENCE, RATLAM

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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 .

SHREE YOGINDRA SAGAR INSTITUTE OF TECH. AND SCIENCE, RATLAM

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Difference between the GOLD LOAN and personal loan

S.N.
1

BASIS
Loan amount

2
3

Mode
Rate of interest

4
5

Lock in period
Flexibility

Documentation

Pre-payment

Hidden charges

GOLD LOAN
No limit Rs 5000/-onward

PERSONAL LOAN
Min. Amount Rs 10000/-max
up to Rs 1000000/Cash loan
By A/c payee cheque
11.40 to 26.40% based on Ranges between 28 to32%
loan amount
No lock in period
Ranges between 6 to 12 month
Totally flexible pre- Very less EMIs fixed at the
closure and part closure
beginning of the loan.
Address proof
ITR form 16
Photo ID
ID proof & residence proof
PDC
Salary slip & photograph
Driver licence
Previous track record.
Possible without penalty

No hidden charges even

CWT is borne by the
company
Customer profile Loan is provided to all
eligibility
customer

10

Service charges

11

Interest on part Interest charges only on

payment
the outstanding amount
Penalties
No penalties on part and
fore closure
Personalize
Prompt and personalized
attention
attention is given to the
each and every customer
Revolving credit
Available as principle gets
revolved on payment of
interest every 3 months
Verification
No field verification
Minimum salary No such criteria
criteria
Time duration
10 15 days
Secrecy
Absolute
secrecy
is
maintained

12
13

14

15
16
17
18

No service charges

Usually not possible before 6

month after that with penalty.
Quite many processing fee,
handling fee, service charges ,
etc.
Only to professionals or salaried
class people in employment
with good companies.
2 to 8% loan amount payable
the service charges.
On the entire loan amount as
fixed in the beginning.
Heavy penalty on part closure.
DMAs and DSAs handle the
customers and not get personal
attraction form the bank.
Loan has the fixed tenure and
payment of both interest and
principal is to be made.
Field verification is carried out.
Monthly NET salary be 1.5
items the EMI.
15 minutes.
No secrecy maintained.

SHREE YOGINDRA SAGAR INSTITUTE OF TECH. AND SCIENCE, RATLAM

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SHREE YOGINDRA SAGAR INSTITUTE OF TECH. AND SCIENCE, RATLAM

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Procedure of creating new loan account in gold loan

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
ID 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.

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 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

Acid test
Acids 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 test
Gold move in all direction gold is very flexible to move other element can
break when move but gold cant be break
Sound test
We 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 test
Gold have yellow colour but if gold is duplicate its colour is different from
yellow
Smell test
SHREE YOGINDRA SAGAR INSTITUTE OF TECH. AND SCIENCE, RATLAM
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Gold 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 test
Branded 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 test
When gold rubbing with stone if gold is original it appears yellow colour if
gold is not original it having different colour.

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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.
By virtue of their business model, HDFCs have grown rapidly over the last few years as
evidenced by their increase in market share. The key differentiators for the HDFCs 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.

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Regulatory environment
While there are no means of controlling the unorganized sector the organized sector of banks
and HDFCs come under the purview of the reserve banks of India (RBI) which has norms to
regulate the gold loan market. HDFCs 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.)

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OBJECTIVE

In this project, the primary objective is to the consumer awareness regarding

gold loan
To find out the competitive positions of India info line finance limited
Increases the relationship between India info line & other company consumer.
To find out the most preferred channel.
To find out what should do to boost India info line finance limited.

SHREE YOGINDRA SAGAR INSTITUTE OF TECH. AND SCIENCE, RATLAM

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RATIONALE OF THE STUDY

Lending cash at usurious rates against the collateral of gold is booming. Banks and non-banks
are currently dishing it out at the rate of 1,20,000 new loans a day! And in order to rein in
unbridled growth of gold loans, the Reserve Bank of India on Tuesday directed non-banking
finance companies to restrict the loan size to 60 percent of the value of gold jewellery.
At last count, the business was reckoned to be worth Rs 80,000 crore and growing at the rate
of over 70 percent for non-bank finance companies and around 35 percent for banks.

AP

Between last year and this year, the two big boys of the gold business, HDFC Bank Ltd, have
grown like gangbusters: the former by 96 percent, and the latter by 170 percent. However,
following the RBI circular, the two stocks plunged drastically on the stock exchange. While
HDFC Bank Ltd. touched a 52-week low, HDFC Bank Ltd. was down 13 percent in early
trade today. Earlier, banks took comfort in lending to the gold NBFCs to meet their priority
sector targets. But now the Reserve Bank of India no longer considers lending to gold NBFCs
as a priority sector exposure. So banks have also pruned their exposures to these entities.
There are two reasons why this gold boon has not shown any signs of flagging. One is the fall
of microfinance institutions, which have been in a tailspin ever since Madhya Pradesh issued
an ordinance last year regulating interest rates and curbing strong-arm methods of loan
collection. These loans have thus gotten tougher.
Secondly, with gold prices zooming, borrowers have discovered that they can raise more
money with the same collateral. Last year, international gold was just over $1,200 an ounce.
On Tuesday, it hovered around $1,650. That's more than a 50 percent rise in a year - besting
all other asset classes.
What this means is that if you as a borrower had raised Rs 6,000 by pledging Rs 10,000
worth of gold jewellery last year, the same pledge can help you raise an additional Rs 3,000
today.

COMPANY PROFILE
SHREE YOGINDRA SAGAR INSTITUTE OF TECH. AND SCIENCE, RATLAM
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The HDFC Limited (HDFC) was amongst the first to receive an in principle approval from
the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of RBIs
liberalisation of the Indian Banking Industry in 1994. The bank was incorporated in August
1994 in the name of HDFC Bank Limited, with its registered office in Mumbai, India.
HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995.

The last eighteen years have been very fulfilling. We can of course wax eloquent about it in
so many ways, but they say, figures don't lie, so we will let the figures do all the talking. They
will give you a fair idea of how we have grown in the past few years.
HDFC Bank began operations in 1995 with a simple mission: to be a "World-class Indian
Bank". We realised that only a single-minded focus on product quality and service excellence
would help us get there. Today, we are proud to say that we are well on our way towards that
goal.
It is extremely gratifying that our efforts towards providing customer convenience have been
appreciated both nationally and internationally.
Our Citizen's Charter offers relevant information about the products, facilities and services
we provide. Customers can also find out about the time norms for various banking
transactions, our policy on customer information, and the process followed for redressal of
grievances.

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SERVICES
Wholesale banking services
HDFC Bank provides a range of commercial and transactional banking services, including
working capital finance, trade services, transactional services, cash management, etc. to large,
small and mid-sized corporates and agriculture-based businesses in India. The bank is also a
leading provider of these services to its corporate customers, mutual funds, stock exchange
members and banks.

An HDFC Bank Branch

Retail banking services

HDFC Bank was the first bank in India to launch an International Debit Card in association
with VISA (Visa Electron). The bank also issues theMasterCard Maestro debit card.[17][18] The
Bank launched its credit card business in late 2001. By the end of June 2013, it had a credit
card base of 5.94 million.[19] By March 2012, the bank had a total card base (debit and credit
cards) of over 19.7 million.[16] The Bank is also one of the leading players in the "merchant
acquiring" business with over 240,000 point-of-sale (POS) terminals for debit / credit cards
acceptance at merchant establishments. The Bank is positioned in various net based B2C
opportunities including a wide range of Internet banking services for Fixed Deposits, Loans,
Bill Payments, etc.

Treasury
The bank has three main product areas - Foreign Exchange and Derivatives, Local Currency
Money Market & Debt Securities, and Equities. These services are provided through the
SHREE YOGINDRA SAGAR INSTITUTE OF TECH. AND SCIENCE, RATLAM
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bank's Treasury team. To comply with statutory reserve requirements, the bank is required to
hold 25% of its deposits in government securities. The Treasury business is responsible for
managing the returns and market risk on this investment portfolio.
GOLD LOAN
HDFC banks Sampoorna Bharosa Gold Loan is available the moment you step into any of
our branches. We help you optimise your investment in gold because this loan against gold is
not only easy to avail but also easy to repay. Get convenient EMIs, affordable interest rates
and an opportunity to liquidate your gold loan at any time.
Features
Unique triple layered protection for your assets in gold
Immediate gold loan sanction and disbursal
Hassle-free gold loan application and minimal documentation
Affordable to avail & repay
Easily available online and in branch offices

Benefits
Perfect choice for finance personal or business needs
Extremely beneficial secured loan interest rates
Comfortable customizable EMI and prepayment options available
Speedy gold loan processing for urgent cash crisis
Lower interest rates for preferred customers available

Documents required
Identity Proof (Passport Copy/ Voters ID card/ PAN Card/ Aadhaar Card)
Address proof (Passport/ Electricity Bill/Telephone bill/ Aadhaar Card)
Signature proof ( Passport/ PAN Card/Bankers verification/ cheque)
Whatever be your need we have a loan for you. Over the years we have won the trust of our
SHREE YOGINDRA SAGAR INSTITUTE OF TECH. AND SCIENCE, RATLAM
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customers and have become market leader in loan products.

Enjoy triple benefits when you take a loan against gold from HDFC Bank:
Faster loan - Our gold loan sanction and disbursal is one of the quickest with easy
documentation and doorstep service.
Competitive pricing Our rates and charges for loan against gold are very attractive.
Transparency All charges are communicated up front in writing along with the gold
loan

HDFC Bank introduces a safe, simple and easy procedure to unlock the value of your gold
without selling it. Make your gold work more for you in times of need. Here are a few
benefits:

Principal Amount: Minimum of Rs 50,000/- onwards. Gold loans for less than Rs
50000/- also available for rural markets.

Instant liquidity: Enjoy any time liquidity on your loan against gold. It can be repaid
any time without any foreclosure charges.

Security: Be assured of the safety and security of your gold.

Interest Rates: Take advantage of our lower interest rates for this loan. Special rates
available for Preferred, Imperia & Classic and Women customers

To top all these benefits, if you are an HDFC customer, you get great interest rates!

SHREE YOGINDRA SAGAR INSTITUTE OF TECH. AND SCIENCE, RATLAM

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Here is an exhaustive list of all the fees and charges to be paid for the loan:

Fees

Amount to be paid

Loan Processing Charges

Upto
0.5%.
Option of Nil Processing fee also
available.

Valuation Fee

Rs 250 for loan upto Rs 1.5 lacs and Rs

500 for loan over and above Rs 1.5 lacs

Foreclosure charges

Upto
1%.
Option of Nil Foreclosure charges also
available

Charges for late payment of loan amount

2% p.a. as penal interest over and above

applicable rate of interest.

Stamp Duty & other statutory charges

As per Applicable laws of the State

Renewal Processing Fees

Upto Rs 500

Prepayment/Partpayment charges

Upto 1%

NOTE: A Service Tax of 12% and an Education Cess of 3% of the service tax amount will
have to be paid on the fees and charges mentioned in the brochure regarding Tariffs, Charges
or Fees. For your convenience, these taxes will appear as separate debits in your statements.
All fees and charges can be changed at the sole discretion of the Bank.

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RESEARCH METHODOLOGY
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.

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DATA COLLECTION
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.

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Data sampling
The target audient for this research includes Ludhiana 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 Ludhiana gill road market.
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.

SHREE YOGINDRA SAGAR INSTITUTE OF TECH. AND SCIENCE, RATLAM

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DATA INTERPRETATION AND ANALYSIS

1. Are you aware about gold loan?

option
respons
e
%

yes

No

86
86%

14
14%

awereness response
14%

yes
no

86%

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.

SHREE YOGINDRA SAGAR INSTITUTE OF TECH. AND SCIENCE, RATLAM

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2. How do you come to know about gold loan?

option

TV
Advertisement

Wall
paintings

Direct
marketing

Newspaper

banners

response
%

48
48

13
13

22
22

5
5

4
4

Friends
&
relative
8
8

reasons of awereness
option

TV Advertisement

Wall paintings

Direct marketing

Newspaper

banners

Friends & relatives

5%

4% 8%
48%

22%
13%

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.

SHREE YOGINDRA SAGAR INSTITUTE OF TECH. AND SCIENCE, RATLAM

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3. Have you ever deal in gold loan?

Options
Responses
%

yes
60
60

No
40
40

Chart Title
option

yes

no

40%
60%

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.

SHREE YOGINDRA SAGAR INSTITUTE OF TECH. AND SCIENCE, RATLAM

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

Options
Responses
%

yes
73
73

No
27
27

future dealing
yes

no

27%

73%

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 HDFC and very small are not in favour

SHREE YOGINDRA SAGAR INSTITUTE OF TECH. AND SCIENCE, RATLAM

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5. With which company you deal or you wish to deal?

Options
Responses
%

HDFC
finance
29
29

SBI

ICICI

11
11

12
12

Karvy
finance
8
8

Future
group
9
9

IIFL

Other

26
26

5
5

Finance Company
5%

26%

9%

8%

29%
11%
12%

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

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Interpretation:- from the above graph it is clear that most of the customer are dealing with
HDFC and IIFL. And very small are dealing with SBI, ICICI, and very few are dealing with
future group, karvy.

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

Options

rate

of Maximum

Responses
%

interest
70
28.3

per gram rate

66
26.7

Flexibility

customer

Any other

40
16.2

dealing
69
27.9

2
0.8

preferances
rate of interest

Maximum per gram rate

Flexibility

customer dealing

Any other

28%
16%

1%

28%
27%

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

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7. Are you not satisfied with the current deal?

Options
Responses
%

yes
39
39

No
61
61

current deal
yes

no

39%
61%

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.

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8. Which of the following are Main reason of satisfaction.

options
responses
%

rate of
interest
48
48

Maximum
rate
37
37

Flexibility
9
9

customer
dealing
6
6

satisfaction factor
rate of interest

Maximum rate

Flexibility

customer dealing

9%

6%
48%

37%

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 rate 6% 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.

SHREE YOGINDRA SAGAR INSTITUTE OF TECH. AND SCIENCE, RATLAM

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

Options
Responses
%

yes
75
75

No
25
25

company change

no; 25%

yes; 75%

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.

SHREE YOGINDRA SAGAR INSTITUTE OF TECH. AND SCIENCE, RATLAM

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10. Are you aware about HDFC?

Options
Responses
%

yes
56
56

No
44
44

HDFC awareness
yes

no

44%
56%

Analysis: - from the above graph it is clear that 56% of the population are aware about the
HDFC and 44% of the population are not aware about the HDFC.

Interpretation: - from the above graph we can see most of the population are aware about
the HDFC but still the rates of those people are also high who are not aware about the HDFC.

SHREE YOGINDRA SAGAR INSTITUTE OF TECH. AND SCIENCE, RATLAM

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SHREE YOGINDRA SAGAR INSTITUTE OF TECH. AND SCIENCE, RATLAM

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RESULTS
It is also clear most of people prefer HDFC Bank and Bank to take the gold loan as

compare to other companies.

HDFC Bank is providing special schemes which are helpful to attract customer.
Most of the customers prefer HDFC Bank gold loan because of good per gram rates.
There are no charges for entry and exit loans.
HDFC Bank understands 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 HDFC Bank 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.

SHREE YOGINDRA SAGAR INSTITUTE OF TECH. AND SCIENCE, RATLAM

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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 dont 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 HDFC Bank needs to endeavour
with maximum efforts the company can achieve several milestones in future while
maintaining the existing customer relationship.

SHREE YOGINDRA SAGAR INSTITUTE OF TECH. AND SCIENCE, RATLAM

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SUGGESTION

The HDFC has provided proper training to new employees so that they can attract
customers easily.
The HDFC can conduct seminars and workshops so that they can provide information
to the people and give answers to queries.
The HDFC should increases the advertisement regarding the gold loan in national TV.
The HDFC should adopt some strategies to increase the business through existing
customers.
The HDFC 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.
HDFC should use traditional ways of promotion in rural location.

SHREE YOGINDRA SAGAR INSTITUTE OF TECH. AND SCIENCE, RATLAM

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LIMITATIONS

Time limit is the major constraint

As the manager are busy in their duty schedule it is not possible for us to
spend more time in interaction and discussion with them
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

SHREE YOGINDRA SAGAR INSTITUTE OF TECH. AND SCIENCE, RATLAM

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ANNEXURE
Questionnaires
General Information
NAME..............
ADDRESS....................
AGE...........
OCCUPTION.......................................
CONTACT NO....................
EMAIL...............................................

Q.1 Are you aware about gold loan?

A. yes

B. No

Q.2 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.3 Have you ever deal in gold loan?

A. yes

B. No

Q.4 Do you want to deal in gold loan in future? (If yes which company)
A. yes

B. No

Q.5 With which company you deal or you wish to deal?

A. HDFC

B. SBI

C. ICICI

D. Karvy finance

E. Future group

F. IIFL

G. other (specify)

SHREE YOGINDRA SAGAR INSTITUTE OF TECH. AND SCIENCE, RATLAM

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Q.6 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

D. customer dealing

E. Any other (specify)

C. Flexibility

Q.7 Are you not satisfied with the current deal?

A. yes

B. No

Q.8 Which of the following are main reason of satisfaction

A. rate of interest

B. Maximum rate

D. customer dealing

E. Any other (specify)

C. Flexibility

Q.9 Do you want to change your loan by any other company?

A. yes

B. No

Q.10 are you aware about HDFC?

A. yes

B. No

(Thanks for your kind cooperation)

Signature.............................
Date................................

SHREE YOGINDRA SAGAR INSTITUTE OF TECH. AND SCIENCE, RATLAM

Page 38

BIBLIOGRAPHY
Books
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-loanindustary/473351
http://www.crindia.com/commodity/gold.html
http://www.moneycontrol.com/master/your
gold& at0no:=703262

money

/stocks-news-consumption.php?cat=

http://www.moneycontrol.com/master/your
gold& at0no:=694868

money

/stocks-news-consumption.php?cat=

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

-gold-loan-companies

SHREE YOGINDRA SAGAR INSTITUTE OF TECH. AND SCIENCE, RATLAM

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