INTERNSHIP TRAINING REPORT

ON
“TO STUDY REGARDING THE IIFL GOLD LOAN”

Submitted to the partial fulfillment of the requirement for the

degree of

Bachelor of Business Administration

(Affiliated to Chaudhary Charan Singh University, Meerut)
Session 2022-23

SUBMITTED TO:- SUBMITTED BY:-

Ms. Neha Singhal Abhishek Kori
(ASSISTANT PROFESSOR) 200360105002

SARASWATI INSTITUTE OF ENGINEERING & TECHNOLOGY

NH-9, PAWLA, OPP. DINESH NAGAR. PILAKHUWA,
UTTAR PRADESH 245304
SESSION (2020-2023)
 CERTIFICATE

This is to certify that project entitled " TO STUDY REGARDING THE IIFL GOLD LOAN " Submitted

By ABHISHEK KORI Roll No. 200360105002 in partial fulfillment of Bachelor Of Business

Administration V Semester of Saraswati Institute of Engineering & Technology, Pilkhuwa, Hapur is a

record of student's own work carried out under my supervision and guidance while working on project

they were sincere. Disciplined and enthusiastic.

As per our knowledge this work is original and genuine.

MS. NEHA SINGHAL MR. AYUSH MIITAL

(Assistant Professor) (HOD)

Dept. of Management Dept. of Management

 Declaration

This is to certify that present report titled " Investment Pattern of Investor’s (With Reference to Globe
Capital Market Ltd.)" is based on original research and has not been submitted in part or whole for any
diploma or degree of any university. The works of other authors, wherever they have been made use
of in this study, have been duly acknowledged at relevant places.

Place: - Pilkhuwa (Hapur) Student Name :-

Abhishek Kori

Date: - Roll No. :-200360105002

 Certificate

This is to certify that the project report title, “Gold Loan” in the Ground floor NH9 Pilkhuwa,

Pilkhuwa, Punjab, India is submitted to “IIFL” in the partial fulfillment of the Degree of B.B.A.

of session (2020-23). This research work carried on by Abhishek Kori under university Roll No

200360105002 under my supervision in undergone summer 5th September to 15th October. The

assistance and helpreceived during the course of investigation has been fully acknowledged.

Major Advisor:-
Mr. Aadesh Kumar
, Branch Manager

Address:- IIFL, Ground

Floor N-H9,
Pilkhuwa
 Acknowledgment

I would like to thanks to India info line finance ltd. Pilkhuwa 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 Pilkhuwa"

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

ABHISHEK KORI
BBA IIIRD YEAR
200360105002
 Table of content

CHAPTER PARTICULARS PAGE

No. No.
Declaration

16- Acknowledgement
1 Introduction 6-21

2 History of GOLD loan 22-37

3 Review of literature 38-40

4 Research Methodology Objective 41- 43
5 Data Analysis &Interpretation 44-55
6 Findings & Suggestions 56-58

7 Bibliography 59-60

8 APPENDIX 61-62
INTRODUCTION

7
 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 market have two major components; they are moneymarket 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 aredirect or indirect claims to capital.

8
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 October

2008

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.

9
 INDIA INFOLINE

IIFL and India Infoline Finance Limited is an Indian diversified financial services company

headquartered in Mumbai. The organization was founded by Nirmal Jain. IIFL and its group

companies are backed by Canadian investor Prem Watsa, private equity firm General

Atlantic and CDC Group, the UK Government's private equity arm.

IIFL is ranked among the top seven financial conglomerates in India and as the top independent

financial services firm in India in terms of market capitalization. Nirmal Jain is the chairman of

the group, while R Venkataraman is the group managing director and co-promoter.

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 networth of INR 200 corer and a market cap of over INR 1970 corer.

Thecompany 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 theonline distribution of mutual funds.

10
About IIFL

Company profile
Date of Establishment 1995

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

11
 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 ( yearending Mar 2011)
Net Profit - Rs. 1223.618546Million ( 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.

12
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

13
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 inAsia’.

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 readIndian 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.

14
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 HongKong.

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. 1193797. 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 IndiaInfoline.com

15
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

16
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 bankingservices

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 theState

Bank of India, as an independent director on the Board of the Company.

17
- India Info line Ltd has informed that pursuant to the resignation

Of Mr. Nimish Mehta, Company Secretary and Compliance Officer ofthe

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 BrokingHouse

- 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 company incorporated the IIFL Asset Management Company, and in

doing so, ensured our coverage of the entire gamut of financial services.

2012

- Announcing the Real Estate Fund

A debt and equity linked investment instrument, this fund's focus is on affordable residential segments

in the top seven cities in India. The maiden fund raised Rs 5bn, as testimony to our customer's trust.

2013

- The biggest AIF, an all time high income and profits

We launched AIF raising Rs 6.28 bn, the largest AIF fund in India, till date.

18
2014

- Set up advisory services for succession and estate planning in IIFL Wealth Management

We created a niche by providing bespoke solutions in areas of succession planning, asset protection

and administration services integrated with its family office proposition.

2015

- Launched mobile trading platform

We launched IIFL Markets, stock trading mobile application in February 2015. It is the highest rated

(4.4) and most downloaded stock trading app on Android and IOS amongst peers.

2016

- IIFL finds backing by marquee institutional investors

Fairfax Group belonging to the reputed global investor Mr. Prem Watsa of Canada invested Rs.

13,414 million (US$ 202 million) by a secondary purchase of IIFL Holdings shares through an open

offer.

CDC Group plc, the United Kingdom’s development finance institution, invested Rs. 10,050 million

(US$ 150 million) in the NBFC subsidiary, India Infoline Finance Ltd.

General Atlantic, leading global growth equity firm, invested Rs. 9,038 million (US$ 134 million) in

IIFL Wealth Management Ltd through fresh issue of equity shares and additionally Rs. 1,591 million

(US$ 23 million) for the acquisition of shares from employees of IIFL Wealth.

2017

- cquisition of Micro-Finance Institution

19
IIFL acquired Samasta Microfinance Ltd, a Bengaluru-based micro finance institution to enter the

microfinance segment and expand its offerings.

Demerger and subsequent listing of 5paisa Capital Ltd

5paisa Capital Limited was listed on NSE and BSE on 16th November, 2017 - becoming India's first

listed Fintech company. 5paisa provides financial services digitally through a low cost DIY model

2018

- IIFL Wealth raised Rs 746cr by way of fresh issue of equity

IIFL wealth raised Rs 746cr by issue of equity to eminent financial investors. IIFL Wealth issued

shares towards Ward Ferry Management Ltd, Rimco (Mauritius) Limited, Amansa Holdings, General

Atlantic Singapore Fund, Steadview and HDFC Standard Life Insurance.

2019

- Group Reorganization into three listed entities

20
Pillars of Infoline LTD.

21
 Pillars of Infoline LTD.

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

22
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 Membersince 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 alsohandled financial services,

23
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 thesecond 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.

24
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 Directorsof 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

25
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 postgraduate 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,

26
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.

27
History of GOLD loan

28
 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 athree

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

29
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 includesthree 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 inIndia 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

30
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

31
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 custodyand 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 paidup 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

32
stock rooking. 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 financialsolutions 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

33
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’ intheAsiaMoney 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 profitsand dividends since its listing

in 2005. The company is listed on bothExchanges 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 degreeof 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

34
customers.

Our physical presence in key global markets includes subsidiaries in Colombo, Dubai, New

York, Mauritius, London, Singapore and HongKong.

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 at the

pre- closure and partclosure beginning of the

loan.

6 Documentation Address proofPhoto ITR form 16

ID ID proof & residenceproof

PDC Salary slip &

Driver licence photograph

Previous track record.

35
7 Pre-payment Possible without Usually not possible before 6

penalty month after

that with penalty.

8 Hidden charges No hidden charges even Quite many processing fee,

CWT is borne by the handling fee, service

company 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 only on the On the entire loan amount as

payment outstanding fixed in the

amount beginning.

12 Penalties No penalties on part Heavy penalty on part

and fore closure closure.

13 Personalize Prompt and personalized DMAs and DSAs handle the

attention attention is given tothe each customersand not get personal

and every attraction form the

customer bank.

14 Revolving credit Available as principle gets Loan has the fixed tenure

revolved on payment of and payment of both interest

interest andprincipal is to be

36
 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

37
 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 i

information press ‘save’ this process should be repeated foreach 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’.

38
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 onsix 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

39
 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 y Read y Read y Valu e Jaldi

track track1 lksh mi lksh mi mon mon mon loan loan

III IV ey ey I ey II

Solid 220 2200 2010 2070 1950 1950 1820 157 144

Ring 0 0 0

bangle

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

% % % % % % % % %

40
 Interes t month Quarte Monthl monthl monthl quarter Monthl month Month

pay ly rly y y y ly y ly ly

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 bebreak

 Sound test

We check the sound of gold if gold bangle and other element bangle both are hit any

particle we hear the

41
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 machineand cheek the gold smell

 Salt test

When gold mixed in salt if colour change gold is notoriginal 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

tocheck the gold originality

 Weight test

If we see the 50 gram of gold and 50 gram of sugar thensize 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

42
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 borrowersare 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

AndhraPradesh, 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 thelast 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

43
 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

44
complaints regarding high interest rates and penalty rates charged by NBFCs. this has caught

the attention of regulators any regulatorymove 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 marginwould 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

45
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 loanprocessing 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.

46
LITERATURE REVIEW

47
 Chapter 3
LITERATURE REVIEW
The research project is to study “of IIFL gold loan in Pilkhuwa”

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 to60% 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

48
explains how various gold loan companies rises and reachthe 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, VKpublication

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

publication.

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

Objectives

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

loan

49
 To find out the competitive positions of India info linefinance limited

 Increases the relationship between India info line & othercompany 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 notdisclosed

 Finding &conclusions are based on superficial knowledge

 The response given by the respondents may not be 100% accurate and may be

biased

50
RESEARCH METHOEOLOGY

51
 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

solutionto 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

52
 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

Pilkhuwa. The secondary data has been collectedthrough various journals and websites.

53
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 Pilkhuwa 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 byusing 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 Ground floor NH9

Pilkhuwa 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.

54
DATA INTERPRETATION AND ANALYSIS

55
 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 areaware about

the gold loan and 14% of the population are not

Interpretation: - from the above graph we can see that majority are awareabout the

gold loan and few are not aware about the gold loan.

56
2 how do you come to know about gold loan?

option TV Wall Direct Newspape r banner Friend

Advertiseme painting marketin 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.

57
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 havedeal and

40%have not deal in gold.

Interpretation: - from the above graph we can see that most of the people aredealing in

gold loan and very few are not dealing with gold loan.

58
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

59
5:-with which company you deal or you wish to deal?

Options Muthoot Muthoot Mannapuram Karvy Future IIFL Other

finance fincrop finance group
Responses 29 11 12 8 9 26 5
% 29 11 12 8 9 26 5

company
Muthoot finance Muthoot fincrop
Mannapuram Karvy finance
Future group IIFL
other
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.

60
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

61
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.

62
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.

63
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.

64
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.

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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.

66
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.

67
RESULTS & FINDINGS

68
 CHAPTER6
RESULTS & FINDINGS

It is also clear most of people prefer IIFL and Muthoot to takethe gold loan as

compare to other companies.

IIFL are providing special schemes which are helpful to attractcustomer.

Most of the customers prefer IIFL gold loan because of goodper 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.

69
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 toqueries.

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 Pilkhuwa

70
 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.

71
BIBLIOGRAPHY
&
APPENDIX

72
 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 7 th 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 “businessworld”

Bureau (2012): article “should you invest in NCDS of the gold loan financecompany” 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

73
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

74
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

75
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 availinggold 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

76
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................................

77
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