A

Summer training project

on
Customer perception about gold loan as a short term finance

Submitted By : Submitted To :
Keyur M. Upadhyay Shree Sahajanand institute of
Enrollment No: 167610592051 management Bhavnagar
MBA SEM- 3 ( Gujarat Technological University )
Batch – 2016-2018
 Company overview
 Gold information
 Research topic
 Literature review
 Research problem.
 Research objective
 Hypothesis statement
 Research methodology
 Data analysis and interpretation
 Hypothesis testing
 Research findings
 Recommendation
 Limitation of study
 Conclusion
 Bibliography
 Questionnaire
 People Designation
Uday Kotak Founder & MD & vice executive chairman
Dipak Gupta Joint MD
Jaimin Gupta President & Group CFO
Shanti President- Consumer banking
Ekambaram
KVS mainan President- corporate, investment &
institutional Banking
Mohan Shenoi Chief operating Officer
Gaurang Shah President- Assets management insurance &
international Banking
D Kannan Group head –Commercial Banking
Arvind Kathpalia Risk Officer
 Customer Perception about Gold Loan as Short Term of Finance
 By M.S Sibi (2014)covers the gold loan protection practices among borrowers in financial
institutions. The aim of this paper is to collect the borrowers’ opinion towards protection
practices followed by Banks and NBFCs. The aim was achieved through a descriptive
study involving a survey. The dataset from the sample underwent series of statistical
analysis, i.e. chi-square test Loan against gold are traditionally considered taboo
especially in Indian households. Even when gold is pledged, it is still done as the last
resort.
 By Jasvindarjit Kaur (2016) India is known to be the largest importer of gold in the
world. Indians have strong fascination and high sentiments to possess the gold.
Resultant, the gold loan market also shown vigorous growth in the recent years. Gold
loan NBFCs has created a remarkable position for themselves in the process of
economic development and financial inclusion by monetizing the idle gold stock of
the country on one hand. On the other hand gold loan NBFCs meet the consumption
and financing needs especially of the rural and under banked populaces. But on the
same time the robust growth of these gold loan NBFCs and their aggressiveness in
tapping the potential gold loan market necessitated that their operations should be
closely monitored. So, the present study is an endeavor to analyze and compare the
financial performance of the two giant gold loan NBFCs namely Manappuram
Finance Ltd. and Muthoot Finance Ltd. on the basis of CAMEL model. Overall, the
study resulted that both the gold loan NBFCs perform on the same lines on the
parameters of CAMEL model. But Manappuram Finance Ltd. is better performer in
context of capital adequacy parameter while Muthoot Finance Ltd. is gaining lead in
context of management efficiency.
 By Priya Narayan , Balagopal Gopalkrishnan , Arvind Sahay(2017) India is the
second largest consumer of gold in the world and gold is a major contributor to the
current account deficit. Much of the gold goes out of circulation and is not available to
support economic activity. To encourage consumers to bring the gold back into
circulation, the government of India instituted the Gold Monetization Policy in 2015.
This research views the Gold Monetization Policy in India through the lens of
consumer associations with gold, as well as the banker and refiner perspectives on
implementation challenges. The success of this policy is important for the country to
better manage its current account balance, in a milieu where gold consumption holds
sociocultural importance. The research uses an empirical approach to analyze how
various stakeholders have approached the policy, and provides suggestions to
increase uptake of the policy. It employs a mixed method approach to understand the
motivations and barriers faced by various stakeholders in the gold ecosystem.
 Primary Objective: Primary objective of my study is to understand the perception of
consumers’ about gold loan as a short term source of finance.

 Secondary Objectives:

 To understand consumers’ awareness about different short term sources of finance

 To understand thinking of consumers about gold loan as an option of short term

source of finance.

 To understand the impact of culture and education on preference of gold loan as a

short term source of finance.
 H0: There is no impact of culture on consumers’ preference about gold loan as a
short term source of finance

 H1: There is impact of culture on consumers’ preference about gold loan as a short
term source of finance

 H0: There is no impact of Education on consumers’ preference about gold loan as a

short term source of finance

 H1: There is impact of Education on consumers’ preference about gold loan as a

short term source of finance
Types Of Data Primary
Research Design Descriptive
Population ( type & size) Population Of Bhavnagar city

Sampling Method Non probability Convenience Sampling

Sampling Size 377

Data Collection Method Survey

Data Collection Instrument Questionnaire

Data Analysis tools & techniques Tabulation , Graphs and Chi-square

technique for Hypothesis Testing
Particulars Responds
Personal loan 145 Personal Loan

Loan against 60 loan against

property property
loan against
2.12
Loan against 42 security
loan against
security 21.22
38.46
insurance policy
loan against fixed

Loan against 15 6.89 deposit

gold loan
insurance policy 11.14
15.91
others
Loan against 26 3.97

fixed deposit

Gold loan 80
Others 8
 From the above chart we can conclude that 38.46% responds are in personal loan,
11.14%are on loan against security, 3.97% are responds are loan against insurance
policy, 15.91% responds are for the loan against property, while 6.89% are responds
on fixed deposit and 21.22% and 2.12 % are for gold loan and other loan
respectively.
Particulars Responds
Personal loan 92
Loan against 40
property
Personal Loan
Loan against 18 3.18
Loan against
Security 24.4 property
38.99 lLoan against
Loan against 45 11.94 Security
Loan against
insurance policy insurance policy
Loan against
Loan against 23 6.1 4.78
fixed deposit
Gold loan
Fixed Deposit
10.61
Gold loan 147
Others 12
 10.61% are for the loan against property, while 6.1% are responds on fixed deposit
and 38.99% and 3.18 % are for From the above chart we can conclude that 24.4%
responds are in personal loan, 4.78% are on loan against security, 11.94% are
responds are loan against insurance policy, 10.61% responds gold loan and other
loan respectively.
Particulars Responds
Personal loan 126
personal loan

Loan against 12
property 2.92
Loan against
property

Loan against 27 Loan against

security
security 33.42
30.24 Loan against
insurance policy
Loan against 9
Loan against
insurance policy Fixed Deposit

Gold loan
Loan against 78
Fixed deposit 20.69 7.16
others
2.39 3.18
Gold loan 114
Others 11
 2.92

personal loan

Loan against property

33.42
30.24
Loan against security

Loan against insurance policy

Loan against Fixed Deposit

Gold loan

others

3.18
20.69 7.16

2.39
 From the above chart we can conclude that 33.42% responds are in personal loan,
7.16% are on loan against security, 2.39% are responds are loan against insurance
policy, 3.18% responds are for the loan against property, while 20.69% are responds
on fixed deposit and 30.24% and 2.92 % are for gold loan and other loan
respectively.
Particulars Responds

Strongly Agree 168

Agree 65 7.69
Strongly agree

22.55 Agree
44.56
Can’t Say 30 Can't say

Disagree
7.96
Strongly Disagree
Disagree 85
17.24

Strongly 29
Disagree
 From the above chart we can see that 44.56% are strongly agree with this statement
, while 17.24% responds are agree and 7.96% , 22.55% , 7.69% responds are can’t
say , disagree and strongly Disagree respectively
Particulars Responds

Strongly Agree 168

Agree 40 9.81
Strongly Agree

Agreee
20.68 44.56
Can’t Say 54 Can't say

Disagree

Strongly disagree
Disagree 78 14.32

10.61

Strongly 37
Disagree
 From the above chart we can see that 44.56% are strongly agree with this statement
, while 10.61% responds are agree and 14.32% , 20.68% , 9.81% responds are can’t
say , disagree and strongly Disagree respectively.
Particulars Responds

Strongly Agree 204

Agree 64 7.96
Strongly Agree
16.45 Agree
Can’t Say 17 can't Say
54.11
Disagree
4.51
16.97 Strongly Disagree
Disagree 62

Strongly 30
Disagree
 From the above chart we can see that 54.11% are strongly agree with this statement
, while 16.97% responds are agree and 4.51% , 16.45% , 7.96% responds are can’t
say , disagree and strongly Disagree respectively
Particulars Responds

Strongly Agree 64

Agree 73 11.14
16.97
Strongly agree

Agree
Can’t Say 94 27.6
19.36
Can't Say

Disagree

Strongly Disagree
Disagree 104
24.93

Strongly 42
Disagree
 From the above chart we can see that 16.97% are strongly agree with this statement
, while 19.36% responds are agree and 24.93% , 27.6% , 11.14% responds are can’t
say , disagree and strongly Disagree respectively
Particulars Responds

Strongly Agree 40

Agree 73 10.61
21.22 Strongly Agree

Agree
19.36
Can’t Say 106 Can't Say

20.7 Disagree

Strongly Disagree
Disagree 78 28.11

Strongly 80
Disagree
 From the above chart we can see that 10.61% are strongly agree with this statement
, while 19.36% responds are agree and 28.11% , 20.7% , 21.22% responds are can’t
say , disagree and strongly Disagree respectively
Particulars Responds

Strongly Agree 214

Agree 50 10.6
Strongly Agree

Agree
19.3
Can’t Say 0 Can't say
56.8 Disagree
0
13.3 Strongly disagree
Disagree 73

Strongly 40
Disagree
 From the above chart we can see that 56.8% are strongly agree with this statement ,
while 13.3% responds are agree and 0 , 19.3% , 10.6% responds are can’t say ,
disagree and strongly Disagree respectively
Particulars Responds

Strongly Agree 217

Agree 30
Strongly agreee
25.99
Can’t Say 2 Agree

Can't Say

Disagree 30 7.95 57.6 Disagree

Strongly Disagree
7.95
0.51

Strongly 98
Disagree
 From the above chart we can see that 57.6% are strongly agree with this statement ,
while 7.95% responds are agree and 0.51% , 7.95% , 25.99% responds are can’t
say , disagree and strongly Disagree respectively
Particulars Responds

Strongly Agree 194

Agree 60 18.04
Strongly Agree

Agree

Can’t Say 15 10.6 Can't Say

51.45
Disagree
3.97 Strongly Disagree
Disagree 40 15.92

Strongly 68
Disagree
 From the above chart we can see that 51.45% are strongly agree with this statement
, while 15.92% responds are agree and 3.97% , 18.04% , 10.6% responds are can’t
say , disagree and strongly Disagree respectively
Particulars Responds

Strongly Agree 32

Agree 104 8.49

26.53
Strongly
Agree
Can’t Say 33 27.58
Agree

Can't
Disagree 108 28.64
8.75
Say
Disagree

Strongly 100
Disagree
 From the above chart we can see that 8.49% are strongly agree with this statement ,
while 25.58% responds are agree and 8.75% , 28.64% , 26.53% responds are can’t
say , disagree and strongly Disagree respectively
Particulars Responds

Strongly Agree 78

Agree 67
Strongly Agree

Agree
20.16 20.68
Can’t Say 94 Can't Say

Disagree
16.45 17.77
Strongly Disagree
Disagree 62
24.94

Strongly 76
Disagree
 From the above chart we can see that 20.68% are strongly agree with this statement
, while 17.77% responds are agree and 24.94% , 16.45% , 20.16% responds are
can’t say , disagree and strongly Disagree respectively
Particulars Responds

Strongly Agree 37

Agree 25 9.81 6.63

Strongly Agree

Can’t Say 65 17.24 Agree

57.3
Can't Say

Disagree 34 9.01
Disagree

Strongly 216
Disagree
 From the above chart we can see that 9.81% are strongly agree with this statement ,
while 6.63% responds are agree and 17.24% , 9.01% , 57.3% responds are can’t
say , disagree and strongly Disagree respectively
Particulars Responds

Strongly Agree 142

Agree 74 10.61
Strongly Agree

Agree
Can’t Say 23 37.6 Can't Say
25.99
Disagree

Strongly Disagree
Disagree 98
19.7
6.1

Strongly 40
Disagree
 From the above chart we can see that 37.6% are strongly agree with this statement
, while 19.7% responds are agree and 6.1% , 25.99% , 10.61% responds are can’t
say , disagree and strongly Disagree respectively
H0: There is no impact of culture on consumers’ preference about gold loan as a
short term source of finance

H1: There is impact of culture on consumers’ preference about gold loan as a

short term source of finance
 Particulars Positive Impact Negative Impact Total
Strongly Agree 194 142 336
Agree 60 74 134
Disagree 68 40 108
Strongly 40 98 138
Disagree

Cant’ Say 15 23 38
Total 377 377 754
F0 Fe F0 – Fe (F0 – Fe)2 (F0 – Fe)2
Fe
194 168 26 676 4.0238

60 67 -7 49 0.7205

68 54 14 256 4.7407

40 69 -29 841 12.1884

15 19 -4 16 0.8421

142 168 -26 676 4.0238

74 67 7 49 0.7205

40 54 -14 256 4.7407

98 69 29 676 12.1884

23 19 4 16 0.8421

Total 45.031
(R-1)(C-1)

= (5-1) (2-1)

=4

Significance level= 0.05 (5%)

Calculated value= 45.031

Tabulated value= 9.4877

Calculated value (45.031) > tabulated value (9.4877)
So, hypothesis is rejected
H0: There is no impact of Education on consumers’ preference about gold
loan as a short term source of finance

H1: There is impact of Education on consumers’ preference about gold loan

as a short term source of finance

Education Yes No Total

Below 32 108 140

Graduate
Above 104 100 204
Graduate
Total 136 208 344
F0 Fe F0-Fe (F0 – Fe)2 (F0 – Fe)2
Fe

32 70 -38 1444 20.6285

104 102 2 4 0.0392

108 70 38 1444 20.6285

100 102 -2 4 0.0392

Total 41.3354
(R-1)(C-1)

= (2-1) (2-1)

=1

Significance level= 0.05 (5%)

Calculated value= 41.3354

Tabulated value= 3.8415

Calculated value (41.3354) > tabulated value (3.8415)
So, hypothesis is rejected
 We have to change our perception through education.
 It is all about human perception.
 Taking gold loan is bad in our society that will be change.
 The main aim of the research was to help the organization the increase productivity
and efficiency of gold loan. So there are some Recommendation that can be help for
the employee.
 The main factor of study that our culture and societies perception are bad to take the
gold loan
 Perception are also depends on the education because of many times it is good for
taking decision source of finance.
 I have completed my report as a researcher. I conclude that kotak Mahindra bank is
good bank ever. It always tries encouraging their customer for the taking gold loan.
 I have increased my knowledge to a great experience. it is my pleasure that it was a
very well opportunity for me to do research on this great bank.
 Kothari C.R,” Research Methodology,” Second edition , New Age International
Pvt. Ltd., New Delhi.

 www.kotak.com
 www.irjbm.org
 www.pbr.co.in