Professional Documents
Culture Documents
Sip Report
Sip Report
(DEEMED TO BE UNIVERSITY )
IN PARTIAL
By
Student Name
ABINASH PASAYAT
(Registration Number: 1941303024)
Guided by:
Dr.GP PRASAD
(Associate Professor)
Place: BHUBANESWAR
Date: 17/01/2022
This is to certify that project work embodied in this report entitled “A study on
customer satisfaction towards gold loan with special respect to Muthoot Fincorp
Pvt. Ltd” was carried out by of SOA university.
This report is for the partial fulfilment of the requirement of the award of the degree
of Master of Business Administration offered by Gujarat Technological University.
……………………………
(Examiner’s Sign)
Name of Examiner:
Institute Name:
Institute Code:
DATE:
PLACE:
Date: //
“This is to certify that this Summer Internship Project Report Titled “A study on
customer satisfaction towards gold loan with special respect to Muthoot Fincorp
Pvt. Ltd” is the Bonafide work of Abinash Pasayat (Enrollment Number:
208070592053) who has carried out her project under my supervision. I also certify
further, that to the best of my knowledge the work reported herein does not form part
of any other project report or dissertation on the basis of which a degree or award was
conferred on an earlier occasion on this or any other candidate. I have also checked
the plagiarism extent of this report which is 24% and it is below the prescribed
limit of 30%. The separate plagiarism report in the form of html /pdf file is
enclosed with this.
(Director)
PREFACE
This project report has been prepared in fulfilment of the requirement for the Summer
Internship project: “A study on customer satisfaction towards gold loan with
special respect to Muthoot Fincorp Pvt. Ltd” in the academic year 2020-22.
For preparing the project report, we have filled up the questions during the suggested
period, to avail the necessary information. The blend of learning and knowledge
acquired during our practical studies at the company is presented in this project report.
ACKNOWLEDGEMENT
I am extremely thankful to our project guide Prof. Manoranjan das for providing us in
depth knowledge and helping us towards successful completion of project. He has
always welcomed our queries and solved it nicely. Without her help and guidance, it
is difficult for me to complete the project.
Last but not the least I would like to thank my all friends who have given me the
guidance for the further development and enrichment of my project.
With Thanks,
Chapter Particular
No.
3 Research Methodology
5 Findings
6 Suggestions
6.1 Suggestion
7 Conclusion
7.1 Conclusion
8 Bibliography
9 Questionnaire
Chapter 1
Introduction of Gold Industry
1.1 Introduction of Gold Investment
Gold prices touching record highs through the month of July has got many
wonderings how they can make use of their physical gold.
India is the world’s second largest consumer of gold, as citizens attach significant
cultural value to gold coins, bars and jewellery held and gifted. In fact, in an
interview with Indian financial daily The Financial Express last November, the
managing director of World Gold Council had revealed that Indian households have
accumulated up to 25,000 tonnes of gold.
Many consumers who hold gold in reserve are considering gold loans as an option to
meet their credit requirements, and Indian financial entities have a host of options on
offer. Gold loan companies and banks have reported a surge in demand for gold loans
in the last three months since the coronavirus pandemic hit.
1.1.1. How to get a Gold Loan in India?
Customers can visit the nearest gold loan branch with their jewellery as well as gold
bars or coins that they wish to pledge, along with basic Know Your Customer (KYC)
documents to attest their identity and residential address. The bank then measures
your jewellery’s worth and proposes a price for the gold loan, typically at an interest
rate ranging from 7.50% to up to 12%.
Customers can request for door-step gold loan facilities offered by banks and some
non-banking financial companies (NBFCs). When customers opt for this service, the
financial entity sends a company executive to visit their home to evaluate their gold
jewellery on the spot and decide and agree upon a credit amount, which is then
transferred to the customer’s account.
To ensure security, always verify the credentials of the company executives who are
scheduled for visit in advance.
Customers can also apply for a gold loan via the digital route, where the bank or the
NBFC helps them choose loan offers from their website or app-based digital service.
Customers compare interest rates and choose the best available option for them. The
financial institution then verifies the customer by the help of their Aadhaar card
details and by conducting a video-based KYC process.
When the customer decides to part with the decided gold jewellery or bars by
pledging it against the gold loan disbursal decided by the financial entity, they receive
a receipt, also called a pawn ticket, which lists out the full details about the pledged
ornaments (including weight, karatage, pictures among others details).
From this point onward, the financial entity ensures secure storage of the gold handed
over until the gold is not taken back by the customer upon repayment of the loan. If
the customer fails to repay the loan capital, the lender holds the right to keep the loan
with themselves and auction it to retrieve the investment. To avoid such a situation,
customers are requested to repay timely and in adverse conditions, renegotiate the
loan repayment clause.
1.1.2. How Does a Gold Loan Work?
The lender evaluates the pledged jewellery in terms of purity and weight and verifies
the jewellery ownership and identity documents submitted before offering a loan
amount, also known as the LTV (loan to value).
Customers do not need to repay the loan via a monthly installment amount. They
enjoy the choice of instead making bullet repayments, which refer to a lump sum
payment made for the entirety of an outstanding loan amount, usually at maturity.
On maturity, the customer has the option to repay the outstanding and close the
account or extend the tenure by repledging the jewellery at the current LTV.
There exists no limit on how many times a customer can repledge their gold, which
means the loan can be rolled over for as long as needed.
Some banks and NBFCs also allow partial payments and early repayments without
any penalties. In this way, a gold loan functions like an overdraft facility for the retail
customers.
1.1.3 Why Are Indians Exploring Options to Take Gold
Loans?
A gold loan is a quick way to raise money to meet urgent needs and is also considered
an attractive option due to its inherently lower risk compared to other forms of loans.
Traditionally when the economy comes to a halt, and when the working capital cycle
in the unorganised sector is disrupted, demand for gold loans also dries up. But the
coronavirus outbreak has pushed this demand higher owing to most banks and NBFCs
becoming risk averse, explains VP Nandakumar, the Managing Director & CEO of
Manappuram Finance Ltd.
“With borrowers being denied access to their regular channels of credit, gold loans
have become the default option, especially for meeting essential personal needs,” says
Nandakumar.
Muthoot Finance, a gold loan company with 98% of their assets under management as
gold loans, has been receiving gold loan requests from traders, shopkeepers and small
business owners to restart their businesses after lockdowns, considering formal credit
from banks may take time.
George Alexander Muthoot, the Managing Director of Muthoot Finance, has seen
small-business owners using gold loans as short-term working capital – “Gold loans
act as bridge financing, since small companies have not received payments during the
lockdown and fresh credit sanction from banks will take time.”
Gold loans have also become the option for borrowers denied access to personal loans
from regular channels for meeting their financial commitments in the wake of job
losses or wage cuts due to the coronavirus pandemic, explains Muthoot.
1.1.4 Future of Gold Loans in India
The organised gold loan industry is estimated at about INR 3.5 trillion, or about 7% of
the total size of the personal loan industry—estimated at over INR 25 trillion.
All big banks in India including the state-owned State Bank of India, plus India’s
largest private banks HDFC Bank, ICICI Bank and Axis Bank, among others,
are competing to offer lower interest rates and processing fees to lure customers.
Among popular gold loan NBFCs are Manappuram Finance, Muthoot Finance and
IIFL among other that are offering gold loans.
In the short-term, Manappuram Finance has seen growth in gold loans from customers
who are taking advantage of the higher LTV propelled by the sharp rise in gold price
to borrow more against their existing pledges.
“We expect that once people get the sense that high prices of gold are here to stay for
some more time, the impetus to sell their gold will ebb,” says Nandakumar. He
envisages a 10 to 15 percent growth in the company’s gold loans portfolio in the
coming months.
If you’re hoping to put your idle gold to good use, gold loans could be a financial
product to research. In the case of gold loans, borrowers need to thoroughly
understand the conditions of their loan terms to ensure all that is glittering is indeed
gold.
Source:
(forbes, n.d.)
1.1.3 Current Scenario:
In India, due to Covid-19 people feel more unsecure about their financial
condition. Nowadays we have no idea about uncertain health issues. Now
all are not much interested in money investment or much expenses. They
are now giving first priority to health and then enjoying life because there
is no idea about future what will be happen in future with their life. So,
they are now taking loans on the basis of Gold because Gold is the thing
which is mostly people having in their home and Gold is useless until
some function arrived and Indian people’s main thinking is Gold is the
thing which is carry by them so they can use Gold in their bad time. If
there is any crisis happened in people’s life, they are giving first priority to
their health and they are put gold to bank and borrow money when they
needed.
1.1.5 Porter’s five forces model
Competitive Rivalry:
There are many banks are providing low-rate loan on gold with many
facilities. Example: IIFL, DCB, SBI, Shriram City, Manappuram
finance Ltd. are the competitor of Muthoot Fincorp. For standing in the
market Muthoot have to give various facilities or new scheme and
make customer base stronger than competitors.
. Threat of Substitute:
Threat of substitute products and services in Consumer Financial
Services sector – If the threat of substitute is high then Muthoot
Fincorp has to either continuously invest into R&D or it risks losing
out to disruptors in the industry.
CHAPTER 1.2
INTRODUCTION OF COMPANY
CIN U65929KL1997PLC011518
TC No 14/2074-7
Punnen Road
Trivandrum
Thiruvananthapuram - 695039
Kerala – India
Sources:
We take our name, Muthoot, from our family, which is a branch of a traditional
Orthodox Christian family, based in Kozhencherry, a small town in the erstwhile
primary state of Travancore. (Kerala). In the year 1887, Muthoot Ninan Mathai
(Patron Founder of the group), started as a retail and wholesale trader of grains at
Kozhencherry. The wholesale goods were supplied to the large Estates owned by
British Companies. Later, understanding the needs of the estates’ workers and at the
request of the British owners, who appreciated the values & principles of Mr. Ninan
Mathai, he started a form of Chit Fund. The aim was to provide self-less service for
the workers, who were not able to manage their cash and would tend to lose and/or
misspend the same. Giving the workers an avenue for saving, provide for exigencies
and also secure their tomorrow, started as a simple solution to the need at that point in
time, soon gained momentum and spread across. The business grew slowly but
steadily along with its share of ups and downs. Functioning out of a single office in
Kozhencherry, Muthoot Ninan Mathai entered the gold loan business in the 1950s. He
soon went on to become the largest player in Chits & Gold Loans. Even today, people
from across the state are happy to come to Kozhencherry for gold loans & chits. The
Late Muthoot Ninan Mathai had four sons, Ninan Mathew, M. George, M. Mathew
and Mathew M. Thomas (Muthoot Pappachan) who were involved in the business
from their childhood and later took over the family business. In the late 1980s, the
business was most amicably split four ways and Shri Muthoot Pappachan founded the
Muthoot Pappachan Group.
Over the years, the Muthoot Pappachan Group has grown to become a significant
entity in the Indian business landscape. “A journey of a thousand miles begins with
a single step”. True to this adage, the group which planted its roots in retail trading,
later diversified and made its mark, into various sectors including Financial Services,
Hospitality, Automotive, Realty, IT Services, Healthcare, Precious Metals, and
Alternate Energy.
1.2.4 Muthoot Fincorp Pvt. Ltd.’s Goal
Our Values
We will do everything to gain and maintain the Trust of all the stakeholders and will
not do anything to lose their trust.
Our Mission
To provide timely small credit to millions of ordinary people, and also provide them
with simple options to save their hard earnings.
Our Vision
To be the most trusted financial service provider, at the doorstep of the common man,
satisfying him immediately with easy and simple products.
1.2.5 Products and Services provided by Muthoot Fincorp
Pvt. Ltd.
Gold Loan
WealthSmall
ManagementBusiness
ServiceLoan
Product
and
Micro
Home Loan
Finance
Services
Money
Auto Loan
Transfer
Forex
1.2.6 Gold Loan in Muthoot Fincorp Pvt. Ltd.
Gold Loan offered by Muthoot FinCorp is just perfect for raising short-term working
capital or to meet your emergency financial needs, in just a few minutes at any of its
3600+ branches across the country. Muthoot FinCorp offers competitive LTV and
interest rates and industry first 24×7 SMS based Gold Loans top-up facility to
transfer money to customer’s bank account, anytime. Muthoot Gold Loans have
unique & customer-centric features such as cash-backs on regular on-time payment,
digital payments and on-time loan-tenure completion which make them India’s Most
Rewarding loan against gold.
1.2.7 Gold Loan Scheme
Reward ✓ Rewards
– EMI Schemes
(Download Full –
PDF)
Muthoot Blue Loan Value: ✓ Good Credit 12% to 12% to
Bright Gold From Rs. 1 Lakh Behaviour 23% * 24% *
Loan to Rs. 2.99 Lakh
Discount ✓ Loan
Processing Fee: Tenure Completion
Rs.20/- inclusive
Reward ✓ Digital
of GST or 0.25%
Payment
of the Loan
amount Subject Reward ✓ Rewards
– EMI Schemes
to Maximum of
(Download Full –
Rs.500/-
PDF)
Tenure: Up to 6
Months
Muthoot Blue Loan Value: ✓ Good Credit 17% to *17%
Power Gold From Rs. 3 Lakh Behaviour 19% to 19%
Loan to Rs. 4.99 Lakh *
Discount ✓ Loan
Processing Fee: Tenure Completion
0.25% of the
Reward ✓ Digital
Loan amount
Payment
Subject to
Maximum of Reward ✓ Rewards
– EMI Schemes
Rs.1200/
(Download Full –
Tenure: Up to 6
PDF)
Months
Muthoot Blue Loan Value: No ✓ Good Credit 15% to 15% to
Smart Gold cap Behaviour 22% * 22% *
Loan Processing Fee:
Discount ✓ Loan
Rs.50/- inclusive
Tenure Completion
of GST & free
registration for Reward ✓ Digital
NACH Payment
Minimum Reward ✓ Rewards
Tenure: 3 – EMI Schemes
Months (Download Full –
Maximum PDF)
Tenure: 36
Months* (36
Months tenure
applicable from
Rs.5 Lacs
onwards)
24X7 Express LoanProcessing ✓ Good Credit N/A N/A
Fee: 0
Gold Loan Behaviour
processing
fees for the
Discount ✓
first 5
disbursals Loan
Tenure Completion
via SMS Reward ✓ Digital
Minimum
Tenure: Payment
NA
Reward ✓ Rewards
Maximum
Tenure: – EMI Schemes
NA
(Download Full –
PDF)
1.2.8 EMI Gold Loan Scheme of Muthoot Fincorp Pvt. Ltd.
All data collected from official web site of Muthoot Fincorp Pvt. Ltd.
Sources:
(Muthoot Fincorp, n.d.)
1.2.9 SWOT Analysis
STRENGTHS:
Muthoot fincorp’s strength is their Muthoot group which is
very famous in gold loan area from the very long time and their
experience in this industry help Muthoot Fincorp to make base
clear because customer’s faith in Muthoot is high. They are
providing best interest rate with minimum paper work and their
services satisfied customer.
Diversified product profile of the MPG group.
Healthy asset quality in the gold loan segment to
support overall group asset quality
Improving earnings profile for gold loan business
WEAKNESSES:
Muthoot Fincorp is settled in this field but nowadays many
banks are coming with the various facilities and low interest
rate so customers are sometime change their preference to other
bank. Muthoot Fincorp have to stay in the market with low
interest rate and with profit also.
Geographical concentration in portfolio
Potential challenges associated with non-gold loan segments
OPPORTUNITIES:
Nowadays people are taking gold loan more and more and the
market in gold loan is being large day by day. Muthoot Fincorp
have to take the opportunity of collect as possible as customer
through the market. They have to make their policy easy and
simple so rural area can also cover by them and they make their
branches in every corner of India.
Chapter 2 Literature
Review
(Kannan. V. Unnithan, February 2017) The present study
about gold loan procedures of Urban Cooperative Banks is
good. Firstly, the various tests used to follow and facilitate the
good guidelines of Urban Cooperative Banks. Secondly, to
discuss the details of gold and gold ornaments loan sub rules.
Thirdly, to list out loan for purchasing gold ornaments. Finally
discuss the details about gold ornament overdraft. There are
several Cooperative Societies compete the Urban Cooperative
Banks. The Local Gold Loan institutions also contest the
Urban Cooperative Banks. Different procedures of gold loan to
be helpful the banking employees of Urban Cooperative Banks
that guideline will be good for performing gold loan. It
concludes with an outline of vital area from the literature.
(Das*, October,2019) Gold is one of the very important assets
among the entire assets class. In India gold also holds
sentimental or social values. Since ancient times, it is used as a
collateral asset against borrowing the money. Previously gold
loan business was mainly controlled by unorganized players.
Now days organized gold loan business is one of the emerging
lending business segments for Non-Banking Financial
Companies (NBFCs) and Banks in India. Organized sector
registers record growth in last decade. Recently various
regulations have changed by Reserve Bank of India (RBI) and
other external factors negatively impacted the business growth
and financial performance of this segment. The study is
descriptive and analytical in nature. A non-banking financial
company is one that does activities based on loans and
advance, share, securities, bonds, debentures, stocks, etc. and
which is registered under the Companies Act of 1956. Every
organisation makes profits and losses. So, there is a need to be
continued and loss making needs to be discontinued. So, there
is a need to identify what are the causes that enable profit
making and what causes lead to loss making and remedial
measures which can be taken to overcome the losses.
Hence in the study titled. “An empirical study on comparative
financial evaluation between Mannapuram Finance Limited
and Muthoot Finance Limited.” a comparison has been done
between the two Non-Banking Financial Companies. The
study has been taken the past 5 years financial statements of
the two various statistical techniques have been used to find
out the true financial position. Analysis, evaluate the position
of the two non-banking financial companies and to study the
recommendations of Mannapuram and Muthoot finance to
move ahead from the
Industry.
(Sibi, September - 2014) This paper 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., correlation analysis and one way
ANOVA. Loan against gold is traditionally considered taboo
especially in Indian households. Even when gold is pledged, it
is still done as the last resort.
(DEEPTI SHASTRI GUPTA, A STUDY OF
PERFORMANCE ANALYSIS OF GOLD LOAN NBFCS
BASED ON CAMELS MODEL, Dec.2020) Industry 4.0 has
also shown a major influence on the contemporary industrial
economy. Moreover, in the coming years, the potential effect
of I-4 will become immense, since virtually all industry and
business sectors are making all their effort to use industry 4.0 's
strength.It is acknowledged that India is the world's biggest
importer of gold. Indians are highly intrigued and have heavy
feelings about gold. As a result, there has also been good
growth over the past few years in the gold loan industry.
Looking to the India’s economic growth and financial inclusion
perspective, gold lending NBFCs have, on the one hand, made
a major contribution by monetising the country's idle gold
supply and on the other hand, the NBFCs gold loan meets the
customer funding needs particularly of rural and unbanked
communities of India. The vigorous growth and hostility of
these gold loans by NBFCs in penetrating the potential gold
loan market demanded a performance analysis of these Gold
Loan NBFCs. The two giant gold loans NBFCs Manappuram
Finance Ltd. and Muthoot Finance Ltd have been considered to
analyse the financial performance based on elaborate and
pertinent ratios using CAMELS model. The present study
found that, Muthoot Finance Ltd scores better than
Manappuram Finance Ltd in terms of Earnings Ratios; both the
companies have near similar Capital Adequacy Ratio; in terms
of Net NPA Ratio, Manappuram Finance Ltd scores better than
Muthoot Liquid Assets Ratio and Debt to Equity Ratio.
(Prakash**) Gold loan is currently an emerging trend which
is seen in the cities as it is available at much cheaper rate of
interest and with simplicity of getting it than the
other financing options. So, this research work is focussing on
the determinant factors of the gold loan market in Indore city.
It draws attention to the important factors of gold loan, which
includes the brand name, customer service, financial factors,
etc.
The study infers that people of Indore city are very focussed
on the type of lending institution, the interest rate charged
on the loan taken, gold rate prevailing in the market,
simplicity of procedures, etc.
(S.Ananth) The article undertakes a comprehensive analysis of
different facets of the gold loan business as it operates at the
everyday level in Andhra Pradesh. It highlights various
business practices, business culture, risks and impact of the
gold loan business. We proffer that the rise of gold loan
business in Andhra Pradesh is concurrent to the exit of the
Microfinance institutions (MFIs) in AP after the crisis in 2010.
The business raises similar issues that led to the MFI crisis
which include issues related to transparency, consumer
protection and information asymmetry. In the paper it is argued
that due to complacency, companies often overlook the risks.
Though gold loans are perceived as a ‘risk free’ business, we
argue that the profile of borrowers, the elastic business
practices, the underlying volatility of the commodity and the
fact that gold is an asset that does not generate any income
makes the business as risky as any other business that entails
lending money. The essence of the business is one that is a
corporatized version of pawn broking whose profitability is
dependent on geographic expansion rather than improving
margins.
(Pooja Kayasth1, May –June 2021) The study's aim is to learn
level of borrowers towards public sector Banks and Non-
Banking Financing Companies in availing gold loan. An
attempt has been made to collect information from 107
respondents from the borrowers of gold loan from public
sector Banks and Non-Banking Financing Companies in
Madurai city. The data collected using an appropriate
questionnaire were analysed and interpreted using statistical
techniques, and also the testing of the hypothesis was done,
and conclusions arrived at whether the theories were accepted
or rejected.
(Antony*, 1, 2017) Gold Loan Market in India is well
organized gold loan market has grown tremendously over a
period of time, thanks to the changing consumer perception
about gold loan, and rising loan requirements. A new trend of
gold financing for purchasing has also been observed in the
industry. The main objective of the study is that to study the
demographic and socio-economic status of the gold loan
borrowers in the study region and to measures the loan
borrowers’ level of satisfaction towards jewel loans offered by
Scheduled Commercial Banks in India.
For this a sample of 150 was collected from the respondents
and Likert’s Scaling, Weighted Average, Chi-Square test,
ANOVA Test, Multiple Regression, and Rotated Factor
Analysis. The conclusion is that the schedule commercial
banks are also suggested to provide a check list method about
documents required for processing the jewel loan to their
clients /customers in order to identify financial strength and
ability to repay the loan.
(Apurva Shrivastava, 2014) Gold loan is currently an emerging
trend which is seen in the cities as it is available at much
cheaper rate of interest and with simplicity of getting it than
the other financing options. So, this research work is focussing
on the determinant factors of the gold loan market in Indore
city. It draws attention to the important factors of gold loan,
which includes the brand name, customer service, financial
factors, etc. The study infers that people of Indore city are very
focussed on the type of lending institution, the interest rate
charged on the loan taken, gold rate prevailing in the market,
simplicity of procedures, etc.
To know the satisfaction level of customer towards gold loan special respect to
Muthoot Fincorp Pvt. Ltd.
This study is based upon Descriptive research design. In this study mainly
descriptive research design is used to analyse the satisfaction level of
consumer towards gold loan special respect to Muthoot Fincorp Pvt. Ltd.
Sample Size:152
There are many respondents who are not giving answers in a proper way.
Sometime they feel like is this fraud or their data will be used at any other site!
They feel unsecure during sharing their income details, qualification details,
occupation and how many times they suffer from emergency need of money.
Some respondents are filling this form in urgency so may be information
should be not accurate. Many are refused questionnaire because of lack of
knowledge about google form and lack of trust issue to give their details on
internet.
Chapter 4
Data Analysis and Interpretation
4.1 Demographical Analysis:
Q.1) Gender of respondent:
GENDER
Frequenc Percent Valid Cumulative
y Percent Percent
Male 100 65.8 65.8 65.8
Female 52 34.2 34.2 100.0
Total 152 100.0 100.0
Interpretation:
From the collected data there are 65.8% respondents are Male and remaining 34.2%
are Female. From this we easily find out that male respondents are more interested in
taking gold loan than female. There are 100 male and 52 female who respond to the
questionnaire.
Q.2) Age of respondent:
AGE
Interpretation:
From total respondents more data collected from age group of 21-25 which
covered 40.8% area of total respond. Then 25-35 age group cover 30.9% and
remaining 23.7% covered by 35-50 age group.
Q.3) Marital Status of respondent:
MARITAL STATUS
Interpretation:
There are 53.9% respondents are unmarried and 46.1% respondents are
married in this data collection.
Q.4) Occupation of respondent:
OCCUPATION
Interpretation:
I got 31.6% response from students and then after from Job category which covered
50% and Business and Housewife category covered respectively 8.6% and 9.9%.
Q.5) Qualification of respondent:
QUALIFICATION
Interpretation:
From the collected data I can easily found out that Graduate people are taking
loan more than Undergraduate and Postgraduate people. Out of total 152
response there are 79 who are Graduate, 36 are Undergraduate and 37 are
Postgraduate. 52% covered by Graduate, 23.7 covered by Undergraduate and
24.3% covered by Postgraduate.
Q.6) Monthly income of respondent:
INCOME
Frequency Percent Valid Cumulative
Percent Percent
0-15000 69 45.4 45.4 45.4
15000-
53 34.9 34.9 80.3
30000
30000-
18 11.8 11.8 92.1
50000
>50000 12 7.9 7.9 100.0
Total 152 100.0 100.0
Interpretation:
From above chart we can easily see that the low-income criteria covered highest area
of taking loan because they are mostly suffering from tough situation than others.
Less than 15000 earner respondents are 69, 15000 to 30000 earner respondents are 53
and both are combinedly covered 80.3% of total responses. Remaining are earning
more than 30000 per month and they are covered 19.7% of total responses. So, we
can say that less income can be the reason of taking gold loan.
Q.7) Emergency need of money to respondent:
Interpretation:
Out of total responses 60.5% respondents are suffer less than 2 times emergency in a
year. 28.9% respondents are suffering 2 to 4 times emergency need of money in a
year and 10.8 % are suffering more than 4 times emergency need of money during
one year.
Q.8) From where respondents get knowledge about loan:
Interpretation:
There are 38.2% respondents are getting knowledge about gold loan threw the social
media and internet, 26.3% are getting knowledge from friends and family members,
22.4% are getting information from the Newspaper and remaining are get information
from holdings and banners. So, we can assume that Muthoot Fincorp is investing
advertisement money more in social media campaign to catch higher customer range.
Q.9) Purpose of taking loan:
Interpretation:
Main reason of taking gold loan is family requirement according to this data because
out of 152 response 92 are taking loan because of family requirement which covered
59.9% of total response. Education fees is the second important reason of taking
loan
which covered 19.1% then medical emergency covered 13.2% of total and 7.9% are
covered by agriculture and others. From this data we can say that mostly people use
their gold in family requirement and they put their gold in bank and borrow money
from bank.
Descriptive Analysis:
Descriptive Statistics
N Minimum Maximum Mean
EASY
152 1.00 5.00 1.9737
DOCUMENTATION
LESS
152 1.00 5.00 2.1645
DOCUMENTATION
FASTER LOAN
152 1.00 4.00 2.0395
APPROVAL
INT RATE
152 1.00 5.00 2.2105
AFFORDABLE
EASY REPAYMENT
152 1.00 5.00 2.0658
OPTION
STAFF BEHAVIOR
152 1.00 5.00 2.0921
IS GOOD
FAST RESPONSE
152 1.00 5.00 2.0000
FROM STAFF
PROBLEM SOLVING
TIME IS 152 1.00 4.00 2.0987
CONVENIENT
PROBLEM SOLVING
SKILL AND
152 1.00 5.00 2.0921
BEHAVIOUR OF
STAFF IS GOOD
SAFETY OF GOLD 152 1.00 5.00 1.9737
INSURANCE
152 1.00 4.00 1.9276
POLICY ON GOLD
LOCKER FACILITY
152 1.00 5.00 1.9539
IS TRUST WORTHY
EXTRA SERVICE
152 1.00 5.00 1.9671
WITH GOLD LOAN
LOAN CLOSING
152 1.00 4.00 2.0395
SYSTEM FASTER
Valid N (list wise) 152
Interpretation:
There are 152 total responses and there is scale based questions in
Questionnaire. Here the descriptive statistics analysis has done by
me.
Mean value for easy documentation is 1.97 and that interpret that mostly are
agree with the statement that derived that Muthoot Fincorp has easy
documentation process.
Mean value for less documentation process is 2.16 that interpret that mostly
are agree with the statement that is about Muthoot Fincorp has less
documentation process in gold loan.
Mean value is 2.03 in faster loan approval that derived that the average
answer selected by respondent is agree.
Mean value for affordable interest rate is 2.21 that derived that average option
which is selected by respondents is agree.
Mean value for easy repayment is 2.06 that derive that respondent gave
average response of agree.
Mean value for staff behaviour is 2.09 that suggest that there are average
respondents are agree with this statement.
Mean value for fast response from staff is 2.00 that derived that there
are average responses collected as a agree opinion.
2.1 is the mean value of problem time is convenient that interpret that there is
average response of agree.
2.09 is the mean value of staff behaviour is good as well as problem solving
skill is also good in that we can interpret that average response is selected
by respondent is agree.
1.97 is the mean value of statement that derived that safety of gold provided
by bank and average response selected from respondent is agree.
1.93 is the mean value which indicates that there is average selected option is
agree in insurance policy on gold.
1.95 is mean value in locker facility provided by bank and that interpret that
average option selected is agree.
1.97 is mean value in extra services provided with gold in that there is
average respondents are agree with this.
Loan closing system is faster in this statement mean value is 2.04 that suggest
that there are average number of respondents have selected agree opinion.
Overall there are most of respondents are agree with all statement which is in
questionnaire. So we can assume that Muthoot Fincorp is providing good
services. From the above analysis I can say that there are most of respondents
are satisfy with the services of Muthoot Fincorp.
WILL YOU PREFER TO OTHER
Interpretation:
83.6% respondents are that much satisfied from the services provided by bank that
they will suggest other to take loan from Muthoot Fincorp and remaining 16.4% are
not much satisfied that’s why they will not prefer to take loan from Muthoot Fincorp.
4.2 Statistical Analysis:
1. CROSS TABULATION:
Total 7 39 13 2 1 62
MALE 10 15 6 2 1 34
GENDER
25-35 FEMALE 2 7 3 0 1 13
Total 12 22 9 2 2 47
MALE 1 12 9 1 23
GENDER
35-50 FEMALE 2 9 2 0 13
Total 3 21 11 1 36
MALE 1 2 0 0 3
GENDER
>50 FEMALE 0 2 1 1 4
Total 1 4 1 1 7
MALE 17 54 22 5 2 100
GENDER
Total FEMALE 6 32 12 1 1 52
Total 23 86 34 6 3 152
Interpretation:
There are 25 are male and they are agree with that interest rate is affordable which is
provided by Muthoot Fincorp while taking gold loan. They are earning less than
15000 per month.
GENDER * STAFF BEHAVIOR IS GOOD * AGE Crosstabulation
Count
Total 16 31 14 1 62
MALE 12 14 6 1 1 34
GENDER
25-35 FEMALE 0 8 4 0 1 13
Total 12 22 10 1 2 47
MALE 3 12 7 1 23
GENDER
35-50 FEMALE 2 7 4 0 13
Total 5 19 11 1 36
MALE 1 2 0 3
GENDER
>50 FEMALE 0 3 1 4
Total 1 5 1 7
MALE 27 49 20 3 1 100
GENDER
Total FEMALE 7 28 16 0 1 52
Total 34 77 36 3 2 152
Interpretation:
There are 21 male who are agreed that Muthoot Fincorp have good staffs that are
responsible to their customer and they behave good with their customers.
GENDER * SAFETY OF GOLD * AGE Crosstabulation
Count
Total 20 31 9 2 62
MALE 13 15 3 1 2 34
GENDER
25-35 FEMALE 2 8 3 0 0 13
Total 15 23 6 1 2 47
MALE 5 11 6 1 23
GENDER
35-50 FEMALE 1 10 2 0 13
Total 6 21 8 1 36
MALE 1 1 1 3
GENDER
>50 FEMALE 0 4 0 4
Total 1 5 1 7
MALE 32 49 14 3 2 100
GENDER
Total FEMALE 10 31 10 1 0 52
Total 42 80 24 4 2 152
Interpretation:
There are 22 male agreed that Muthoot provide safety of gold after taking loan on
gold and borrowed money from bank
GENDER * LOCKER FACILITY IS TRUST WORTHY * AGE Crosstabulation
Count
Total 19 28 12 2 1 62
MALE 15 11 4 3 1 34
GENDER
25-35 FEMALE 4 6 3 0 0 13
Total 19 17 7 3 1 47
MALE 6 12 5 23
GENDER
35-50 FEMALE 3 9 1 13
Total 9 21 6 36
MALE 1 2 3
GENDER
>50 FEMALE 0 4 4
Total 1 6 7
MALE 35 44 14 5 2 100
GENDER
Total FEMALE 13 28 11 0 0 52
Total 48 72 25 5 2 152
Interpretation:
There are 19 male they believe that Muthoot giving locker facility that is trustworthy
whose age is between 21-25.
Chapter 5
Findings
Findings:
There are mostly male respondents in this research. Their portion in
this research is 65.8%. So I can pretend that there are mostly male are
taking loan on gold.
In this research, age group of 21 to 25 years are more responding to
this questionnaire and I am assuming that youth is using gold as a
opportunity they don’t believe that gold is for show off they are
utilize the use of gold when they don’t need of gold. They covered
72.4% portion of total responses.
Mostly unmarried respondents are there who take gold loan from
Muthoot Fincorp bank and they covered 77% of response. I believe
that unmarried people are taking decision by their own and they are
inly one who don’t need to take permission from others so they are
taking loan more than married because married people have to ask
their partner also and then they decide that they should take loan or
not that’s why there are less married responses.
In my data students are more because some of our witnesses of gold
loan and their parents are take loan and they have visited Muthoot
bank and they take services from bank that’s why students responses
are more in this data. They covered more than 60% portion.
Majority of 52% respondents are graduated from overall responses.
Majority of 45.4% respondents are earning less than 15000 per month
so we can assume that they are suffer from money crisis more than
others and they prefer gold loan to fight against money crisis.
Mostly 38.2% are those who get information from social media and
internet here we can assume that Muthoot is spending their
advertisement expense on social media campaign.
Mostly people are taking loan because of family requirement and they
are covering 59.9% of total.
There are from total satisfaction based question mostly people
are agree with the entire question which is framed in
questionnaire.
44.7% are agree that there is easy documentation process in Muthoot
Fincorp,57.9% are agree that there is less documentation while taking
gold loan .
51.32% agree that there is faster loan approval.
According to 71.7% respondent there is affordable interest rate in
Muthoot Fincorp.
55.9% respondents are agree that there is repayment option which is
more easy.
50% are agree that Muthoot have good staff and they solving problem
in limited time and overall their services are good.
Muthoot providing good and trustworthy locker facility and customer
feel safe with bank. They have trust in Muthoot Fincorp bank.
Chapter 6
Suggestions
6.1 Suggestion:
I would like to suggest that Muthoot Fincorp invest or expense their money
into advertisement and they have to cover more customer because in gold loan
market there are many bank which are giving tough competition to the
Muthoot Fincorp. There are Manappuram bank , IIFL gold loan ,Muthoot
Finance are the competitors of the Muthoot Fincorp and they have to give
fight to these banks .Muthoot Fincorp is providing many other services with
gold loan. They are not only focused on gold loan they are providing services
like mediclaim ,insurance, Fore service ,portfolio management etc. if they
want to make customer in gold loan then they have to make strategy regarding
gold loan .
Chapter 7
Conclusion
7.1 Conclusion:
From my research I can conclude that there are more men who get benefit of
Muthoot Fincorp’s services. There is mostly youth are take visit of Muthoot
Fincorp’s because mostly responses collected from that age group. Most of
respondents are satisfied from the services which are provided by bank
because they will prefer other to try these services. Low income earner people
take more loan as compare to high income earner.
Before I start my SIP project I have no idea about Gold Loan system. After
research on this topic I got idea about gold loan system and how it works in
bank industry. I want to do job in banking industry and I think this experience
and knowledge will help me in my career also. I learnt that how we can utilise
our gold in opportunity because we are not all-time using gold during that time
we can borrow money from bank and we can do business or any other income
earning opportunities.
Chapter 8
Bibliography
Bibliography
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analytical study. Journal of Emerging Technologies and Innovative
Research (JETIR).
Dr. Santhimol M.C*, J. J. (2019). Role of nbfc gold loan on the socio-economic
position of its customers in koothattukulam municipality. International
Journal of Management, IT and Engineering.
George, J. a. (09 May 2015). Discernible growth of Gold Loan NBFCs in India.
Muthoot Fincorp. (2019-20). Annual Report of Muthoot fincorp. In Annual Report 2019-20
(p. 9). Muthoot Fincorp.
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banking financial companies. Journal on Banking & Insurance Research.
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Age:
Between 21 to 25
Between 25 to 35
Between 35 to 50
Above 50
Marital Status:
Married
Unmarried
Occupation:
Student
Job
Business
Housewife
Qualification:
Under Graduate
Graduate
Post Graduate
Other
Monthly income:
Below 15,000
Between 15,000 to 30,000
Between 30,000 to 50,000
Above 50,000
How many times in a year you have emergency need of money?
Less than 2 times
2-4 times
4 to 6 times
More than 6 times