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 PARTICULARS PAGE

No. 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.

About IIFL

Company profile
Date of 1995
Establishment
Revenue 156.75 ( USD in Millions )
Corporate 75 Nirlon Complex, Off
Address Western Express
Highway,Goregaon (E)
Mumbai-400063, Maharashtra
www.indiainfoline.com

Management Chairperson - Nirmal Jain

Details MD - R Venkataraman
Directors - A K Purwar,
Chandran Ratnaswami,
Falguni Sanghvi, Kranti Sinha,
Nilesh Vikamsey, Nirmal Jain,
R Venkataraman, Sat Pal
Khattar, Sunil Kaul, Sunil
Lotke

Business Finance - Stock Broking

Operation
Background India Info line (IIFL) is
engaged in business of
equities broking, wealth
advisory services and portfolio
management services. The
 company was incorporated in
October 1995 as Probity
Research & Services and later
in April 2000 the name was
changed to India
Infoline.com. Then in March
2001 the company again
changed its name to India Info
line.

Financials Total Income - Rs.

7998.667211 Million ( year
ending Mar 2011)
Net Profit - Rs. 1223.618546
Million ( year ending
Mar 2011)

Company Sunil Lotke

Secretary
Bankers
Auditors Sharp & Tannan Associates

India Info line (IIL) is engaged in business of equities broking, wealth

advisory services and portfolio management services. The company
was incorporated in October 1995 as Probity Research & Services
and later in April 2000 the name was changed to India
Infoline.com. Then in March 2001 the company again changed its
name to India Info line.

The company is part of India Info line Group. It has

pan- India presence through its distribution network of 607
branches, 151 franchisees located in 346 cities. The company also
has presence in Dubai, New York and Singapore.

IIL operates portals such as www.indiainfoline.com and www.5paisa.com

The IIFL (India Info line) group, comprising the holding company, India
Info line 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.

We have a presence in:

Equities our core offering, gives us a leading market share in both retail
and institutional segments. Over a million retail customers rely on our
research, as do leading FIIs and MFs that invest billions.

Private Wealth Management services cater to over 2500 families who

have trusted us with close to Rs 25,000 corers ($ 5bn) of assets for advice.

Investment Banking services are for corporate looking to raise capital.

Our forte is Equity Capital Markets, where we have executed several
marquee transactions.

Credit & Finance focuses on secured mortgages and consumer loans.

Our high quality loan book of over Rs. 6,200 corers ($ 1.2bn) is backed
by strong capital adequacy of approximately 20%.

IIFL Mutual Fund made an impressive beginning in FY12, with lowest

charge Nifty ETF. Other products include Fixed Maturity Plans.

Life Insurance, Pension and other Financial Products, on open

architecture complete our product suite to help customers build a
balanced portfolio.
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 the Asia Money 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 corers. The income and net profit during FY2010-11 were Rs.
14.7bn and Rs. 2.1bn 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 is near you physically: we are present in every nook and cranny of
the country, with over 3,000 business locations across 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.
Milestones
1995
-Incorporated as an equity research and consulting firm with a client
Base that included leading FIIs, banks, consulting firms and
Corporate.

Oct, 1956
With Registration No. 11 93797. We commenced our operations as an
Independent provider of information, analysis and research covering
Indian businesses, financial markets and economy, to institutional
Customers. We became a public limited company on April 28, 2000
and the name of the Company was changed to Probity Research and
Services Limited. The name of the Company was changed to India
Infoline.com

1999
-Restructured the business model to embrace the internet; launched
Archives.indiainfoline.com mobilised capital from reputed private
Equity investors.
2000
-Commenced the distribution of personal financial products; launched
Online equity trading; entered life insurance distribution as a
Corporate agent. Acknowledged by Forbes as ‘Best of the Web’ and
‘...must read for investors’.

2004
-Acquired commodities broking license; launched Portfolio
Management Service.
2005
- Listed on the Indian stock markets

- India Info line fixes a price band between Rs 70 and Rs 80 for its
Forthcoming public issue. The company is coming out with public
issue Of 1.18 corer shares with a face value of Rs 10 through the book
Building route. The issue is slated to open on April 21 and close on
April 27. Enam Financial Consultants Private Ltd would be the sole
Book running lead manager to the issue while In time Spectrum
Registry Ltd is the registrar to the issue.
-India Info line public issue gets 6.6 times oversubscription
-IIFL appoints R Mohan as VP

-India Info line Ltd has informed that the Company has entered into a
Advertising agreement with Times Group where in the Company and
other Group companies would spend about Rupees Thirty Corers over
the next 5 years in print as well as non print media of The Times
Group.
-India Info line to buy 75-pc stake in Money tree

2006
-India Info line launches exclusive SMS Value Added Service
-India Info line enters into strategic agreement with Saraswat Bank
-India Info line to launch stock trading on cell phones
-Indiainfoline to roll out MCX, NCDEX, DGCX software
-Acquired membership of DGCX; launched investment banking
services

2007
-Launched a proprietary trading platform; inducted an institutional
Equities team; formed a Singapore subsidiary; raised over USD
300mn In the group; launched consumer finance business under the
‘Money line’ brand.

2008
-Launched wealth management services under the ‘IIFL Wealth’
brand; set up India Info line Private Equity fund; received the
Insurance Broking license from IRDA; received the venture capital
license; Received in principle approval to sponsor a mutual fund;
received Best broker- India’ award from Finance Asia; ‘Most
Improved
Brokerage- India’ award from Asia money.
- India Info line Ltd has informed that the Board of Directors of the
Company have vide circular resolution passed on March 10, 2008
Approved the appointment of Mr. A K Purwar, ex-Chairman of the
State
Bank of India, as an independent director on the Board of the
Company.
- India Info line Ltd has informed that pursuant to the resignation
Of Mr. Nimish Mehta, Company Secretary and Compliance Officer of
the
Company. Ms. Falguni Sanghvi has been appointed as the Company
Secretary with effect from October 07, 2008.
- The Company has splits its face value from Rs10/- to Rs2/-.
2009
-Received registration for a housing finance company from the
National Housing Bank; received ‘Fastest growing Equity Broking
House
- Large firms’ in India by Dun & Bradstreet

2010

-received in principal approval for membership of the Singapore

stock exchange received membership of the Colombo stock
exchange

2011

- launched IIFL mutual fund

 Pillars of the organization

Mr. Nirmal Jain

Chairman & managing darector.

India Infoline Ltd.

Mr. Nirmal Jain is the founder and Chairman of India Info

line Ltd. He is a PGDM (Post Graduate Diploma in Management) from
IIM (Indian Institute of Management) Ahmadabad, a Chartered
Accountant and a rank-holder Cost Accountant. His professional
track record is equally outstanding. He started his career in 1989
with Hindustan Lever Limited, the Indian arm of Unilever. During his
stint with Hindustan Lever, he handled a variety of responsibilities,
including export and trading in agro-commodities. He contributed
immensely towards the rapid and profitable growth of Hindustan
Lever’s commodity export business, which was then the nation’s as
well as the Company’s top priority. He founded Probity Research and
Services Pvt. Ltd. (later re-christened India Info line) in 1995; perhaps
the first independent equity research Company in India. His work set
new standards for equity research in India. Mr. Jain was one of the
first entrepreneurs in India to seize the internet opportunity, with
the launch of www.indiainfoline.com in 1999. Under his leadership,
India Infoline not only steered through the dotcom bust and one of
the worst stock market downtrends but also grew from strength to
strength
Mr. R. Venkataraman

Executive director

India Infoline Ltd. Mr. R Venkataraman, Co-Promoter

and Managing Director of India Info line Ltd, is a B.Tech (electronics
and electrical communications engineering, IIT Kharagpur) and an
MBA (IIM Bangalore). He joined the India Info line Board in July 1999.
He previously held senior managerial positions in ICICI Limited,
including ICICI Securities Limited, their investment banking joint
venture with J P Morgan of US, BZW and Taib Capital Corporation
Limited. He was also the Assistant Vice President with G E Capital
Services India Limited in their private equity division, possessing a
varied experience of more than 19 years in the financial services
sector

The board of director

Mr. Nilesh Vikamsey

Independent Director,

India Infoline Ltd Mr. Nilesh Vikamsey – Board Member

since February 2005 - is a practicing Chartered Accountant for 25
years and Senior Partner at M/s Khimji Kunverji & Co., Chartered
Accountants, a member firm of HLB International, a world-wide
organisation of professional accounting firms and business advisers,
ranked amongst the top 12 accounting groups in the world. Mr.
Vikamsey headed the audit department till 1990 and thereafter also
handled financial services, consultancy, investigations, mergers and
acquisitions, valuations and due diligence, among others. He is
elected member of the Central Council of Institute of Chartered
Accountant of India (ICAI), the Apex decision making body of the
second largest accounting body in the world, 2010–2013.

He is on the ICAI study group member for the introduction of the

Accounting Standard — 30 on financial instruments — recognition
and management. Convener of the Study group Formed by ASB of
ICAI to formulate comments on various Exposure Drafts, Discussion
Papers and other matters pertaining to IFRS originating from IASB,
Representative of the Institute of Chartered Accountants of India on
the Committee for Improvement in Transparency, Accountability and
Governance(ITAG) of South Asian Federation of Accountants (SAFA),
Member of Executive Committee & IFRS Implementation Committee
of WIRC of Institute of Chartered Accountant of India (ICAI),
Accounting and Auditing Committee of Bombay Chartered
Accountant Society (BCAS) and also on its Core Group, member of
Review, Reforms & Rationalisation Committee, IPR Commit Chamber
of Commerce and Industry (BCCI), Member of Legal Affairs
Committee of Bombay Chamber of Commerce and Industry(BCCI),
Corporate Members Committee of The Chamber of Tax Consultants
(CTC), Regular Contributor to WIRC Annual Referencer on “Bank
Branch Audit”, Study/ Sub Group formed by ICAI for Considering
Developments on Fair Value Accounting (AS 30) post Sub Prime crisis,
Sub Group formed by ICAI for approaching the Government and
Regulatory Authorities for Convergence with IFRS.ee of Bombay

He is also a Vice Chairman of Financial Reporting Review Board

Accounting Standard Board and Member of Accounting Standard
Board and various other Standing and Non Standing Committees. Mr.
Vikamsey is also a Director of Miloni Consultants Private Limited, HLB
Offices and Services Private Limited, Trunil Properties Private
Limited, BarKat Properties Private Limited and India Info line
Investment Services Limited.

Mr. Kranti Sinha

Independent Director,

India Infoline Ltd. Mr. Kranti Sinha — Board member

since January 2005 — completed his masters from the Agra
University and started his career as a Class I Officer with Life
Insurance Corporation of India. He served as the Director and Chief
Executive of LIC Housing Finance Limited from August 1998 to
December 2002 and concurrently as the Managing Director of LICHFL
Care Homes (a wholly-owned subsidiary of LIC Housing Finance
Limited). He retired from the permanent cadre of the Executive
Director of LIC; served as the Deputy President of the Governing
Council of Insurance Institute of India and as a member of the
Governing Council of National Insurance Academy, Pune apart from
various other such bodies. Mr. Sinha is also on the Board of Directors
of Hindustan Motors Limited and Cinemax (India) Limited.

Mr. Arun. K. Purwar

Independent Director,

India Infoline Ltd. Mr. Purwar is currently the Chairman

of India Venture Advisors Pvt. Ltd., investment manager to India
Venture Trust – Fund I, the healthcare and life sciences focussed
private equity fund sponsored by the Piramal Group. He has also
taken over as the Chairman of IL & FS Renewable Energy Limited in
March 2008 and India Info line Investment Services Ltd in November
2009. He is working as Independent Director in leading companies in
Telecom, Steel, Textiles, Power, and Auto components, Renewable
Energy, Engineering Consultancy, Financial Services and Healthcare
Services. He is an Advisor to Mizuho Securities in Japan and is also a
member of Advisory Board for Institute of Indian Economic Studies
(IIES), Waseda University, and Tokyo, Japan.
Mr. Purwar was the Chairman of State Bank of India, the largest bank
in the country from November ‘02 to May ’06 and held several
important and critical positions like Managing Director of State Bank
of Patiala, Chief Executive Officer of the Tokyo branch covering
almost the entire range of commercial banking operations in his
illustrious career at the bank from 1968 to 2006. Mr. Purwar also
worked as Chairman of Indian Bank Association during 2005 – 2006.
Mr. Purwar has received the “CEO of the year” Award from the
Institute for Technology & Management (2004); “Outstanding
Achiever of the year” Award from Indian Banks’ Association (2004);
“Finance Man of the Year” Award by the Bombay Management
Association in 2006.

Sunil Kaul

Independent Director,

India Infoline Ltd. Mr. Sunil Kaul earned his post

graduate degree in management from the Indian Institute of
Management, Bangalore and a bachelor’s degree in technology from
the Indian Institute of Technology, Bombay. Sunil Kaul is a Managing
Director for Carlyle’s Asia Buyout fund focused on investments in the
financial services sector across Asia. He is based in Singapore. Since
joining Carlyle, Mr. Kaul has worked on several notable portfolio
investments of Carlyle including HDFC Ltd, India’s leading financial
services group, TC Bank, a leading mid-sized bank in Taiwan and
Caribbean Investment Holdings, one of the largest provider of
offshore company incorporation and trust services in Asia and India
Info line Limited Mr. Kaul serves as a director on the board of TC
Bank and a member of its Risk and Executive Committees. He is also
a member of the Asia Pacific Infrastructure Partnership. Prior to
joining Carlyle, Mr. Kaul served as the president of Citibank Japan,
covering the banks corporate and retail banking operations. He
concurrently served as the chairman of City’s credit card and
consumer finance companies in Japan. He was also a member of
City’s Global Management Committee and Global Consumer
Planning Group. Mr. Kaul has over 20 years’ experience in corporate
and consumer banking of which more than 10 have been in Asia. He
has lived and worked in India, the United States, Japan, Netherlands
and Singapore. In his earlier roles, Mr. Kaul served as the Head of
Retail Banking for City in Asia Pacific. He has also held senior
positions in Business Development for City’s Global Transaction
Services based in New York, Transaction Services Head for City Japan
and Global Cash Business Management Head for ABN Amro, based
out of Holland.
 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/- Min. Amount Rs
onward 10000/-max up to Rs
1000000/-
2 Mode Cash loan By A/c payee cheque
3 Rate of interest 11.40 to 26.40% Ranges between 28
based on loan to32%
amount
4 Lock in period No lock in period Ranges between 6 to
12 month
5 Flexibility Totally flexible – Very less EMIs fixed
pre- closure and at the beginning of
part closure the loan.
6 Documentation Address proof ITR form 16
Photo ID ID proof & residence
PDC proof
Driver licence Salary slip &
photograph
Previous track
record.

7 Pre-payment Possible without Usually not possible

penalty before 6 month after
that with penalty.
8 Hidden charges No hidden charges Quite many
even CWT is borne processing fee,
by the company handling fee, service
charges , etc.
9 Customer Loan is provided to Only to professionals
profile eligibility all customer 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 Interest charges On the entire loan
payment only on the amount as fixed in
outstanding the beginning.
amount
12 Penalties No penalties on Heavy penalty on
part and fore part closure.
closure
13 Personalize Prompt and DMAs and DSAs
attention personalized handle the
attention is given to customers and not
the each and every get personal
customer attraction form the
bank.
14 Revolving credit Available as Loan has the fixed
principle gets tenure and payment
revolved on of both interest and
payment of interest principal is to be
every 3 months made.
15 Verification No field verification Field verification is
carried out.
16 Minimum salary No such criteria Monthly NET salary
criteria be 1.5 items the EMI.
17 Time duration 10 – 15 days 15 minutes.
18 Secrecy Absolute secrecy is No secrecy
maintained 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

Various skims of India info line gold loan company

skims Fast Fast Loan Loan Read Read Read Valu Jaldi
trac track lksh lksh y y y e loan
k 1 mi III mi mon mon mon loan
IV ey ey I ey II
Solid 220 2200 2010 2070 1950 1950 1820 157 144
Ring 0 0 0
bangle
s
Chain 213 2130 1950 2010 1880 1880 1750 151 138
Chain, 0 0 0
neckla
ce
Other 210 2100 1910 1980 1850 1850 1700 147 135
Tikica, 0 0 0
nose
pin
R. o. i. 2.16 2.16 2.00 1.90 1.67 1.67 1.50 1.34 1.00
% % % % % % % % %
Interes month Quarte Month month monthl quarter Monthl month Month
ly rly ly ly y ly y ly ly
t pay
period

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

 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 can’t 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
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.

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.

.
 Chapter 3
LITERATURE REVIEW
The research project is to study “of IIFL gold loan in Ludhiana city”

kejriwalarun (2012) in his article “riches –to rags story of the gold loan
industry” in “business standard” remarked that “the reason people go to
GLCS is the next -to-nil tome they take in disbursing loans. Typically, GLCS lend
up to 80% of the value of gold, making customers a happy lot. However, last
Month, the reserve bank of INDIA (RBI) reduced the loan-to-value for GLCS to
60% of the gold content.

Bureau (2012) in his article “gold loan firms setting up SRO as RBI tightens
screws” in “economic times” concluded that “under the lens of the reserves
bank , leading gold finance companies have decided to form a self- regulatory
organization (SRO) which will frame fair business practices code for the
industry

John navin (2012) in his article “and the RBI on Leander” in “business world”
remarked that ,the stock market did not follow the centre banks restrictions on
the lone size of gold NBFCs to 60% of the loan to value (LTV) view. The share
price of Muthoot finance and Manappuram finance, the largest and second
player, fall 11.35% and 6.1% respectively, on 22 March, a day after the RBI
announcement.
Bureau (2012) in his article “RBI move on gold loan will trim companies
margins” in “economic times” remarked the gold loan financing companies on
Thursday welcomes the latest measures by the reserve bank, saying they will
strengthen the industry, but analysts pointed out that the clampdown will
erode the margins of these companies and curtail growth

Jayakumar john (2011) in his article “lure of the yellow metal” in “business
world” remarked the gold loan industry has recorded growth of 35% over the
past three year and explains how various gold loan companies rises and reach
the top positions”

Bureau (2011) in his article “should you invest in NCD of gold loan Finances
Company” in “economic times” concluded that with that we come to another
important aspect of debt investing risk. PUS bonds like those of NHAI, PFC
enjoy AAA rating, while muthoot finance enjoys a crisil AA rating.
Manappuram finance has a CARE AA- rating”

Regoanil (2010) in his article “gold loan: making gold work for you” in
business world remarked that “this perception toward 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 bank, a clear indication of the viability of gold
loans as an important loan product.”

“Jain T.R.” and Aggarwal, Dr S.C., statistics for M.B.A. 2nd edition, VK
publication

Malhorta Naresh k and Dash satybhushan, “marketing research” (6th edition)

Pearson publication.

“Kothari C.R.,” research methodology methods & techniques 2nd edition

wishwa prakashan, daryaganj, New Delhi, chapter 4. Page 55-58. Chapter

“Method of data collocation, collection of data through questionnaire,

collection secondary data” are referred before the data collocation form from
this book”

Objectives
  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.

Limitation of the study

 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
 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 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.
 Chapter 5
DATA INTERPRETATION AND ANALYSIS
1 are you aware about gold loan?

option yes No
response 86 14
% 86% 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.
2 how do you come to know about gold loan?

option TV Wall Direct Newspap banner Friend

Advertiseme painting marketin er s s&
nt s g relativ
e
respons 48 13 22 5 4 8
e
% 48 13 22 5 4 8

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

4% 8% 0%
5%
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.

3 have you ever deal in gold loan?

Options yes No
Responses 60 40
% 60 40

option yes no

0%

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

Options yes No
Responses 73 27
% 73 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 IIFL .And very small are not in favour
5:-with which company you deal or you wish to deal?

Options Muthoo Muthoo Mannapura Karvy Futur IIF Othe

t finance t fincrop m financ e L r
e group
Response 29 11 12 8 9 26 5
s
% 29 11 12 8 9 26 5

company
Muthoot finance Muthoot fincrop
Mannapuram Karvy finance
Future group IIFL
other
5%
26% 29%

12%
9% 11%
8%

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 Maximum Flexibility customer Any other

interest per gram dealing
rate
Responses 70 66 40 69 2
% 28.3 26.7 16.2 27.9 0.8

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

1%

28% 28%

16% 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

7 are you satisfied with the current deal?

Options yes No
Responses 39 61
% 39 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.
8 which of the following are Main reason of satisfaction

options rate of Maximum Flexibility customer

interest rate dealing
responses 48 37 9 6
% 48 37 9 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 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 No
Responses 75 25
% 75 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.
10 are you aware about IIFL?

Options yes No
Responses 56 44
% 56 44

IIFL awareness
yes no

44%

56%

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

Interpretation: - from the above graph we can see most of the population are
aware about the IIFL but still the rates of those people are also high who are
not aware about the IIFL.
11 have you ever visit in any branch of IIFL?

Options yes No
Responses 40 60
% 40 60

branch visit
yes no

40%

60%

Analysis: - from the above graph it is clear that60% of the population have not
visited any branch of IIFL gold loan company and 40% have visited.

Interpretation:- from the above graph we can see that majority of the
population have not visited any branch of IIFL gold loan company and few
have visited.
12 Do you wish to deal with IIFL?

Options yes No
Responses 77 23
% 77 23

IIFL dealing

23%

yes
77% no

Analysis: - from the above graph it is clear that people want to go the IIFL
because 77% of the population said yes for dealing and very few said no.

Interpretation: - from the above graph it is clear that most of the population
want to deal with IIFL for the purpose of gold loan and very few are not
interested.
 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
Questionnaire
General Information
NAME..............

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

AGE...........
OCCUPTION.......................................

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

Q.1are 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. Muthoot finance B. Muthoot fincrop C. Mannapuram

D. Karvy finance E. Future group F. IIFL

G. other (specify)
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 C. Flexibility

D. customer dealing E. Any other (specify)

Q.7 are you 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 C. Flexibility

D. customer dealing E. Any other (specify)

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

A. yes B. No

Q.10 are you aware about IIFL?

A. yes B. No

Q.11 have you ever visit in any branch of IIFL?

A. yes B. No

Q.12 Do you wish to deal with IIFL?

A. yes B. No

(Thanks for your kind cooperation)

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

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