JIWAJ

I
UNIVE SOS IN POLITICAL SCIENCE AND

PUBLICADMINISTRATION

RSITY A SUMMER INTERNSHIP PROJECT REPORT

ON

GOLD LOAN MARKET IN INDIA

AT

INDIA INFOLINE PVT. LTD.

SUBMITTED IN PARTIAL FULFILLMENT TOWARDS THE AWARD OF

MASTER OF BUSINESS ADMINISTRATION (2022-23)

SUBMITTED TO: SUBMITTED BY:

MRS. SWATI TRIPATHI JITENDRA SHRIVASTAVA

ROLL NO. 211005825

MBA FA III SEM

 Declaration

I, JITENDRA SHRIVASTAVA MBA FA, Roll No. 211005825 student of MBA of

JIWAJI UNIVERSITY hereby declare that the Project

Report entitled “GOLD LOAN MARKET IN INDIA” is an original work and the
same has not been submitted to any other

Institute for the award of any other degree. And the suggestions as approved by the
faculty were duly

Incorporated.

Jitendra Shrivastava

MBA FA,

Roll no. 211005825

 Content
1-Company profile …………………….. . . . . . . . . . ……… 05.

A. History ………………………………………………… 06.

B. Milestone ………………………………………………… 08

C. Revenue, Profit & loss Graph …………………………………… 13.

2-Theoretical Aspect …………......……………………………… 17.

A. Loan Sector …………………………………………………

B. Gold Loan ………………………………… 29.

3- PRACTICAL ASPECT …………………………………………… 37.

A. Gold Loan documentation …………………………………… 39.

4- Research Methodology …………………………………………. 40.

A. Research Objectives ……………………………………….. 40.

B. Sources of data ……………………………………….. 40.
C. Tools Used ……………………………………… 40.

5- Graphical Analysis ………………………………………………….. 42.

6- CONCLUSION ………………………………………………… 50.

7- BIBLIOGRAPHY ……………………………………………… 50.

8. ANNEXURE …………………………………………………… 55.

Questionnaire ………………………………………………… 55-56.

 Acknowledgement
Application of theoretical knowledge to a practical situation is the bonanzas of this
survey. Without a proper combination of inspections and perspirations, it’s not easy to
achieve anything. There is always a sense of gratitude, which we express to others for
help and the needy service they render during the different phases of our lives. We
would do it as we really wish to express my gratitude toward all those who have been
helpful to us directly or indirectly during the development of this training report. We
would like to thank my supervisor Mr. Arvind Gupta (Manager in IIFL Finance) who
was always there to help and guide us when we needed help. His perceptive criticism
kept us working to make this report more full proof. We are thankful to him for
encouraging and valuable support. Working under his was an extremely
knowledgeable and enriching experience for me. We are very thankful to him for all
the value additions and enhancement done to me. I also thanks to our faculty guide
(Mrs. Swati tripathi) of Sos in Jiwaji University Gwalior. No words can adequately
express our overriding debt of gratitude to my parents, whose support helps me in all
the way. Above all we shall thank our colleagues who constantly encouraged and
blessed me so as to enable us to do this work successfully.

JITENDRA SHRIVASTAVA

MBA(FA) 3 rd Sem.
 COMPANY PROFILE

INDIA INFOLINE

India Infoline is one stop financial services shop, most respected for quality if its
advice, personalized service and cutting edge technology. Listed in Bombay and
national stock exchange with a net worth of INR 200 crores and a market cap of over
INR 1970 crores. The company has a network of 976 business locations (branches and
sub brokers) spread across 365 cities and towns. It has more than 8000000 customers .
It is registered with NSDL as well as CDSL as a depository participant, providing a
one stop solution for clients trading in the equities market first company in India to
foray into the online distribution of mutual funds.

About IIFL

Company profile
Date of 1995
Establishment
Revenue 5989.40 crore ( US$ 750 Millions ) (2021)
Corporate Address IIFL Finance Limited,
802,8th Floor, Hubtown Solaris, N.S. Phadke
Marg, Vijay Nagar, Andheri East Mumbai-
400069, 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 Operation Finance - Stock Broking

Background India Info line (IIFL) is engaged in business

of equities broking, wealth advisory services
and portfolio management services. The

company was incorporated in October 1995 as

Probity Research & Services and later in
April 2000 the name was changed to India
Infoline.com. Then in March 2001 the
company again changed its name to India Info
line.

Company Jayesh Sharma

Secretary

Auditors Sharp & Tannan Associates

India Infoline (IIFL) is engaged in business of equities broking, wealth advisory

services and portfolio management services. The company was incorporated in
October 1995 as Probity Research & Services and later in April 2000 the name was
changed to India

Infoline.com. Then in March 2001 the company again changed its name to India Info
line.

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

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

(India Info line) group, comprising the holding company, India Info line Ltd (NSE:
INDIAINFO, BSE: 532636) and its subsidiaries, is one of India’s premier providers of
financial services.

IIFL offers advice and execution platform for the entire range of financial services
covering products ranging from Equities and derivatives, Commodities, Wealth
management, Asset management, Insurance, Fixed deposits, Loans, Investment
Banking, Gold bonds and other small savings instruments.

We have a presence in:

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

Private Wealth Management services cater to over 2500 families who have trusted us
with close to Rs 25,000 corers ($ 5bn) of assets for advice.

Investment Banking services are for corporate looking to raise capital. Our forte is
Equity Capital Markets, where we have executed several marquee transactions.

Credit & Finance focuses on secured mortgages and consumer loans. Our high quality
loan book of over Rs. 6,200 corers ($ 1.2bn) is backed by strong capital adequacy of
approximately 20%.

IIFL Mutual Fund made an impressive beginning in FY12, with lowest charge Nifty
ETF. Other products include Fixed Maturity Plans.

Life Insurance, Pension and other Financial Products, on open architecture complete
our product suite to help customers build a balanced portfolio.
IIFL has received membership of the Colombo Stock Exchange becoming the first
foreign broker to enter Sri Lanka. IIFL owns and manages the
website,www.indiainfoline.com, which is one of India’s leading online destinations
for personal finance, stock markets, economy and business. IIFL has been awarded the
‘Best Broker, India’ by Finance Asia and the ‘Most improved brokerage, India’ in the
Asia Money polls. India Info line was also adjudged as ‘Fastest Growing Equity
Broking House - Large firms’ by Dun & Bradstreet. A forerunner in the field of equity
research, IIFL’s research is acknowledged by none other than Forbes as ‘Best of the
Web’ and ‘…a must read for investors in Asia’.

Our research is available not just over the Internet but also on international wire
services like Bloomberg, Thomson First Call and Internet Securities besides others
where it is amongst one of the most read Indian brokers.

IIFL is a listed company with a consolidated group net worth of about Rs 1,800 corers.
The income and net profit during FY2010-11 were Rs.

14.7bn and Rs. 2.1bn respectively.

The Group has a consistent and uninterrupted track record of profits and dividends
since its listing in 2005. The company is listed on both Exchanges and also trades in
the derivatives segment.

IIFL’s CRISIL and ICRA Rating for short term is top rated as CRISIL A1+ and ICRA
(A1+) respectively. For long term, IIFL has been rated ICRA (AA-) by ICRA and
CRISIL AA-/Stable by CRISIL indicating high degree of safety for timely servicing of
financial obligations.

IIFL is near you physically: we are present in every nook and cranny of the country,
with over 3,000 business locations across 500 cities in India.

You can reach us in a variety of ways, online, over the phone and through our
branches. All our offices are connected with the corporate office in Mumbai with
cutting edge networking technology. The group caters to a customer base of about a
million customers.

Our physical presence in key global markets includes subsidiaries in Colombo, Dubai,
New York, Mauritius, London, Singapore and Hong Kong.

Milestones:-
1995

Incorporated as an equity research and consulting firm with a client Base that included
leading FIIs, banks, consulting firms and Corporate.

Oct, 1956

With Registration No. 11 93797. We commenced our operations as an

Independent provider of information, analysis and research covering

Indian businesses, financial markets and economy, to institutional Customers. We

became a public limited company on April 28, 2000 and the name of the Company
was changed to Probity Research and Services Limited. The name of the Company
was changed to India Infoline.com

1999

-Restructured the business model to embrace the internet; launched

Archives.indiainfoline.com mobilised capital from reputed private Equity investors.

2000

Commenced the distribution of personal financial products; launched Online equity

trading; entered life insurance distribution as a

Corporate agent. Acknowledged by Forbes as ‘Best of the Web’ and ‘...must read for
investors’.

2004

Acquired commodities broking license; launched Portfolio Management Service.

2005

Listed on the Indian stock markets

India Info line fixes a price band between Rs 70 and Rs 80 for its Forthcoming public
issue. The company is coming out with public issue Of 1.18 corer shares with a face
value of Rs 10 through the book Building route. The issue is slated to open on April
21 and close on

April 27. Enam Financial Consultants Private Ltd would be the sole Book running
lead manager to the issue while In time Spectrum Registry Ltd is the registrar to the
issue.

-India Info line public issue gets 6.6 times oversubscription

-IIFL appoints R Mohan as VP

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

-India Info line to buy 75-pc stake in Money tree

2006

-India Info line launches exclusive SMS Value Added Service

-India Info line enters into strategic agreement with Saraswat Bank

-India Info line to launch stock trading on cell phones

-Indiainfoline to roll out MCX, NCDEX, DGCX software -Acquired membership of

DGCX; launched investment banking services

2007
-Launched a proprietary trading platform; inducted an institutional

Equities team; formed a Singapore subsidiary; raised over USD 300mn In the group;
launched consumer finance business under the

‘Money line’ brand.

2008

-Launched wealth management services under the ‘IIFL Wealth’ brand; set up India
Info line Private Equity fund; received the Insurance Broking license from IRDA;
received the venture capital license; Received in principle approval to sponsor a
mutual fund; received Best broker- India’ award from Finance Asia; ‘Most Improved

Brokerage- India’ award from Asia money.

India Infoline Ltd has informed that the Board of Directors of the

Company have wide circular resolution passed on March 10, 2008

Approved the appointment of Mr. A K Purwar , ex-Chairman of the State

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

India Info line Ltd has informed that pursuant to the resignation Of Mr. Nimish Mehta,
Company Secretary and Compliance Officer of the

Company. Ms. Falguni Sanghvi has been appointed as the Company Secretary with
effect from October 07, 2008.

The Company has splits its face value from Rs10/- to Rs2/-.

2009

-Received registration for a housing finance company from the National Housing
Bank; received ‘Fastest growing Equity Broking

House

Large firms’ in India by Dun & Bradstreet

2010
-received in principal approval for membership of the Singapore stock exchange
received membership of the Colombo stock exchange

2011

launched IIFL mutual fund

Chart Title

9000

8000
3,121.88

7000

3,061.76
6000
2,454.90
967.38

5000 2,397.85
427.5
623.02
4000
236.64

3000 4,062.31
3,397.27
2,953.34
2,608.30
2000
23.77
246.29
270.06
1000

0
2018 2019 2020 2021 2022

REVENUE PROFIT EXPENSE

 Pillars of the organization

Mr. Nirmal Jain Chairman & managing darector.

India Infoline Ltd.

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

line Ltd. He is a PGDM (Post Graduate Diploma in Management) from

IIM (Indian Institute of Management) Ahmadabad, a Chartered Accountant and a

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

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.
Mr. R. VenkataramanExecutive director

India Infoline Ltd.

Mr. R Venkataraman, Co-Promoter

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

The board of director

Mr. Nilesh Vikamsey Independent Director,

India infoline Ltd.

Mr. Nilesh Vikamsey – Board Member

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

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

Accounting Standard — 30 on financial instruments — recognition and
management. Convener of the Study group Formed by ASB of ICAI to
formulate comments on various Exposure Drafts, Discussion

Papers and other matters pertaining to IFRS originating from IASB,

Representative of the Institute of Chartered Accountants of India on
the Committee for Improvement in Transparency, Accountability and
Governance(ITAG) of South Asian Federation of Accountants (SAFA),
Member of Executive Committee & IFRS Implementation Committee of
WIRC of Institute of Chartered Accountant of India (ICAI),
Accounting and Auditing Committee of Bombay Chartered
Accountant Society (BCAS) and also on its Core Group, member of
Review, Reforms & Rationalisation Committee, IPR Commit Chamber
of Commerce and Industry (BCCI), Member of Legal Affairs Committee
of Bombay Chamber of Commerce and Industry(BCCI),
Corporate Members Committee of The Chamber of Tax Consultants
(CTC), Regular Contributor to WIRC Annual Referencer on “Bank
Branch Audit”, Study/ Sub Group formed by ICAI for Considering
Developments on Fair Value Accounting (AS 30) post Sub Prime crisis,
Sub Group formed by ICAI for approaching the Government and
Regulatory Authorities for Convergence with IFRS.ee of Bombay

He is also a Vice Chairman of Financial Reporting Review Board

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

Mr. Kranti Sinha Independent Director,

India infoline Ltd.

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

India Infoline Ltd.

Mr. Sunil Kaul earned his post

graduate degree in management from the Indian Institute of
Management, Bangalore and a bachelor’s degree in technology from
the Indian Institute of Technology, Bombay. Sunil Kaul is a Managing
Director for Carlyle’s Asia Buyout fund focused on investments in t

Mr. Arun. K. Purwar Independent Director,

India Infoline Ltd.

Mr. Purwar is currently the Chairman of India Venture Advisors Pvt.

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

FL SPL 1
IIFL SPL 1

 Maximum Loan Value and reasonable interest rate

 Loan Amount starting from ₹3000 and no maximum limit
 Tenure: 24 months
 Free insurance for pledged ornaments
  Digital Gold Loan Facility available

 Maximum Loan Value and reasonable interest rate

 Loan Amount starting from ₹3000 and no maximum limit
 Tenure: 24 months
 Free insurance for pledged ornaments
 Digital Gold Loan Facility

Introduction of Gold Industry

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.

How to get a Gold Loan in India?

To avail a gold loan, customers have three options:

1) Visit a Bank Branch to Get Your Gold Evaluated

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%.

2) Request for Door-step Evaluation of Your Gold

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.

1)Apply for a Gold Loan Digitally

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.

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).

A credit limit, similar to a bank overdraft account, is sanctioned up to a limit of 75%

of the market value of the pledged gold ornaments. This LTV is capped by the
Indian banking regulator Reserve Bank of India. This amount can be withdrawn by
the customer whenever required. On repayment of the loan, the customer has the
option to repledge the same gold for future loans.
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.

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.

IIFL 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 IIFL.

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.

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.

THEORITICAL ASPECT OF TOPIC :

GOLD LOAN MARKET IN INDIA

The Indian gold loan market have seen many changes based on the demand & growth
An Overview Of The Gold Loan Market In India And How It Is Growing

Banks and non-banking finance companies (NBFCs) typically lend against a security.
This can be a physical asset of value like property or easily tradeable precious metals
such as gold or silver, and also other business assets, for example, shares of publicly
traded companies.

The ease of carrying and using gold as a mode of exchange-and indeed as a

dependable security of value-has allowed moneylenders lending against gold to
proliferate for centuries.

Even before a formal banking system developed, villages and small towns had their
network of local moneylenders, who built their business largely on the basis of lending
the currency of the time against gold jewellery or even utensils.

Although seen as an alternative mode of lending, the gold loans industry has

grown significantly over the last couple of decades to become a key part of the
organized lending ecosystem.

The rising price of gold allows borrowers to avail larger sums as loans. It also gives
comfort to the lenders due to the relative security of the yellow metal. These are
among the key factors behind the growth of the industry.
The ease with which one can temporarily monetize the gold jewellery sitting in the
cupboards at home, along with aggressive marketing by specialized gold loan
companies, has helped the industry clock high double-digit growth through the years.

Banks Versus NBFCs

For banks, the gold loan business is one of the several modes of lending. However,
NBFCs have been offering the product to the public for meeting personal and also
business loans for entrepreneurs, for a short period.

Broadly, even with the reach and branding of banks, the NBFCs have been a bigger
driver of gold loans in the country. Almost two-thirds of around Rs 2 lakh crore worth
of gold loans business is under private finance companies.

Uses Of Gold Loans

A borrower doesn’t have any restrictions on the end use of the gold loan. Unlike a
fixed mortgage product like a home loan, where the money is lent and disbursed to the
seller of the property directly, in the case of a gold loan, just like a personal loan, one
is free to use the loan amount for either:

• Personal use, such as children’s education, weddings or going on vacation.

• Business needs such as expansion, arranging working capital or managing cash
flows.

Often, a person getting into a small business needs a loan but does not own a personal
house to mortgage. However, given the age-old love affair of Indian households and
the tradition of festivals and marriages where gold jewellery is bought or gifted, many
people have accumulated some gold jewellery. This comes in handy as a mode of
security against which one can borrow money.

Demand And Growth Factors

The fate of the industry is largely driven by the price of gold as the amount one can
borrow is dependent on that. And the secular long-term trend of the rising price of the
yellow metal has bolstered the industry.

Demand for gold loans from small business owners and individuals is also dependent
on the general state of the economy. So, in the April-June period last year, when the
second wave of the pandemic had a brutal impact on people and the ensuing
lockdowns also took a toll, there was a contraction in gold loan disbursals.

However, there was a strong bounce-back in the latter half of 2021, especially in the
festive season.
According to Krishnan Sitaraman, Senior Director and Deputy Chief Ratings Officer
at CRISIL Ratings: “Gold-loan disbursements have rebounded sharply in the second
quarter of this fiscal (FY22) after a dismal first quarter. Gold loans will continue to be
a sought-after asset class, while lenders will remain cautious about growth in many
other retail asset classes.”

Expanding Gold Loan Market

Industry estimates show that until 2011, as much as 1,81,881 tones of gold had been
mined in all of human history. Of this, just over half-52% to be exact-was in the form
of gold jewellery.

In 2017, the World Gold Council estimated that Indian households held between
24,000 and 25,000 metric tons of gold. In 2019, this gold was estimated to be worth as
much as 40% of the country’s Gross Domestic Product (GDP).

Even more interesting is the fact that rural India accounts for 65% of the total
estimated gold holdings in the country. This is the scale of wealth locked up in India’s
household gold, which could be put to good use.

If we consider the latest data for bank loans against gold jewellery, the quantum of
credit has shot up from around Rs 34,000 crore at the end of March 2020 to nearly Rs
61,000 crore in 2020-21—the first year of the pandemic. It then rose again by a fifth to
around Rs 74,000 crore at the end of March 2022.

This growth comes at a time when the total personal loans market grew in the 10-12%
range over the last two years. Over a two-year horizon, the gold loans market grew
five times faster than the overall personal loans granted by all banks put together.

These trends are similar for NBFCs, too, who have a larger chunk of the fast-growing
gold loan pie.

That said, there is still immense scope of growth as gold loans comprise just around
2% of the total personal loans under bank credit. This has almost doubled as a
proportion over the last two years and is one of the fastest growing modes of lending
in India.

Gold is a brilliant yellow precious metal that is resistant to air and water corrosion. It
is a very soft and pure metal. Gold is the most malleable and ductile metal found on
earth. That’s why it is expensive and it is alloyed with other metals, usually copper
and silver to make it less expensive and harder, a karat is the unit that measures the
purity of gold jewellery or else it is hallmarked with a three digit number that indicates
the parts per thousand of gold. Some countries hallmark gold with a three digit number
that indicates the parts per thousand of gold. The alloyed gold comes in many colours
and may not be bright yellow all the time. It has long been a values commodity,
particularly in India where it is considered auspicious, and had been in use for
centuries in the form of jewellery, coins, bullions, electronics, and dentistry, also for
other medical purposes. Though gold is a highly liquid asset, it wasn’t until recently
that consumers leveraged it effectively to meet their liquidity needs.

Lenders provide loans by securing gold assets as collateral. Compared with the rest of
the world in India the gold loan market is big business. Until a decade back, most of
the lending was in the unorganized sector through pawnbrokers and money lenders.
However this scenario changed with the entrance of organized sector players such as
banks and non banking finance companies (NBFCs) which now command more than
25% of the market. The organized gold loan market has grown at 40% CAGR form
2002 to 2010. NBFCs have been a major driving force behind this growth given their
extensive network. Faster turnaround time, higher loan to value ratios and the ability
to serve non-bankable customers. Of late, banks have improved their gold loan
product features and services.Coupled with comparatively lower interest rates charges,
bank stand to gain market share at the expanses of NBFCs in the near future.

The eligibility criteria required to apply for gold lone in India includes three factors.
Firs-tly, the person has to be above 18 years of age. Secondly, the person applying or a
gold loan in india should have a ID & address proof and last but not the least the
applicant should be working on a regular salary basis , means there should be a
constant flow of income.

Gold has traditionally been among the most liquid asset and is an accepted universal
currency. it has traditionally been consumed by individuals in the form of jewellery,
especially in India were it is considered auspicious. Gold is presumed to be a safe
haven in times of economic uncertainty, a fact exemplified by a 30% increases the
value of gold over the past year India is one of the largest market of gold accounting
for approximately 10% of the total world gold stock as of 2010. Rural India accounts
for 65% of this gold stock. Though gold price have increased 19% CAGR from 2002
to 2010, gold stock in India has grown at 22% CAGR During the same period to
18000 tons (Rs.32000 billion). The demand for gold has followed a regional trend
with southern India accounting for 40% of annual demand, followed by the west
(25%), north (20-25%) and east (10-15%).

INDIA INFOLINE

The IIFL (India Info line) group, comprising the holding company, India Infoline Ltd
(NSE: INDIAINFO, BSE: 532636) and its subsidiaries, is one of India’s premier
providers of financial services.

IIFL offers advice and execution platform for the entire range of financial services
covering products ranging from Equities and derivatives, Commodities, Wealth
management, Asset management, Insurance, Fixed deposits, Loans, Investment
Banking, Gold bonds and other small savings instruments.

IIFL has received membership of the Colombo Stock Exchange becoming the first
foreign broker to enter Sri Lanka. IIFL owns and manages the website,
www.indiainfoline.com, which is one of India’s leading online destinations for
personal finance, stock markets, economy and business. IIFL has been awarded the
‘Best Broker, India’ by Finance Asia and the ‘Most improved brokerage, India’ in the
Asia Money polls. India Info line was also adjudged as ‘Fastest Growing Equity
Broking House - Large firms’ by Dun & Bradstreet. A forerunner in the field of equity
research, IIFL’s research is acknowledged by none other than Forbes as ‘Best of the
Web’ and ‘…a must read for investors in Asia’.

Our research is available not just over the Internet but also on international wire
services like Bloomberg, Thomson First Call and Internet Securities besides others
where it is amongst one of the most read Indian brokers.

IIFL is a listed company with a consolidated group net worth of about Rs 1,800 crores.
The income and net profit during FY2010-11 were Rs. 14.7 billion and Rs. 2.1 billion
respectively.
The Group has a consistent and uninterrupted track record of profits and dividends
since its listing in 2005. The company is listed on both Exchanges and also trades in
the derivatives segment.

IIFL’s Crisil and ICRA Rating for short term is top rated as CRISIL A1+ and ICRA
(A1+) respectively. For long term, IIFL has been rated ICRA (AA-) by ICRA and
CRISIL AA-/Stable by CRISIL indicating high degree of safety for timely servicing of
financial obligations.

IIFL network over 3,000 business locations spread more than 500 cities in India. You
can reach us in a variety of ways, online, over the phone and through our branches. All
our offices are connected with the corporate office in Mumbai with cutting edge
networking technology. The group caters to a customer base of about a million
customers.

Our physical presence in key global markets includes subsidiaries in Colombo, Dubai,
New York, Mauritius, London, Singapore and Hong Kong.

Procedure of creating new loan account in gold loan software

1.Open the shortcut of gold loan.

2.Put your user ID and password.

3.Click on truncation after that go new lone express entry.

4.Before doing anything we have to press ‘+’ for further process and generate gold
loan number.

5.We have to fill customer details with three stages

A.Client details

B.Address details

C.IP photograph (we browse the photo of customer and gold items one by one)

6.After fill all these details press ‘save’ GOLD LOAN number will be generated
7.When the gold loan number will generated please ensure before doing further
process deduces must be done

8.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 as under :

a. Appraisal form

b. Cash disbursal

c. Bank details

(Appraisal form : valuer I Before start anything we have to press on ‘+’ then enter all
the information like item, Gross weight , Net weight, per gram weight after filling
these information press ‘save’ this process should be repeated for each and every item
by valuer I

Valuer II: now the above noted process should be repeated by valuer II also when we
enter the all information on appraisal form finally press the ‘Edit’ and then ‘Save’.

Cash disbursal: first press ‘+’ then enter the denomination of cash to be disbursed to
the customer then press disburse cash finally we press ‘Edit ‘and ‘Save’.

Bank details: there is no need to fill bank details in the case loan is less than 10 laces,
on the other hand if loan above 10 laces then press add new then enter the details then
press ‘Edit’ and ‘save’.

Now we should give the print command and get the hard copy for customers signature
the print will generated the following document on six pages.

Application form (page 1)

 DPN(page 1)
 Appraisal form (page 2)
 Declaration form (page 3)
 Borrower copy (page 4)-given to the customer
 Token card (page 5) – original should given to the customer and take Xerox for
office record.
 Cash disbursal receipt(page 6)
Total 11 signature are obtaining form the customer on the above documents we should
give three documents to the customer.

 Borrower copy
 Token card
 Cash receipt

Now we should generate/ complete the following document and upload the same
along with the five documents for sanctioning of the loan.

 I.D proof
 Address proof

Pan card (in the case of above loan is 50000)

 TVR from
 CPV report

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

Acid Test:

Acids have +ve charge particle gold rubbing with stone and throw them acids if gold
colour change them the gold is not original if colour is not change gold is original

Flexibility Test:

Gold move in all direction gold is very flexible to move other element can break when
move but gold can’t be break

Sound Test :

We check the sound of gold if gold bangle and other element bangle both are hit any
particle we hear the sound if gold is original it give specific sound if gold is not
original it give same sound as they other bangle.

Colour Test:

Gold have yellow colour but if gold is duplicate its colour is different from yellow

Smell Test:
Gold have specific smell as compared to other element if we have test the gold smell
there are the specific machine and cheek the gold smell

Salt Test :

When gold mixed in salt if colour change gold is not original if colour not change gold
is original

Use ability Test:

Branded new gold are very difficult to check the originality of gold but already used
gold are easily to check the gold originality

Weight Test:

If we see the 50 gram of gold and 50 gram of sugar then size of gold is small as
compare to sugar.

Rubbing Test:

When gold rubbing with stone if gold is original it appears yellow colour if gold is not
original it having different colour.

IIFL GOLD LOAN SCHEMES

IIIFL SPL 1
 Maximum Loan Value and reasonable interest rate
 Loan Amount starting from ₹3000 and no maximum limit
 Tenure: 24 months
 Free insurance for pledged ornaments
 Digital Gold Loan Facility available

IIFL SPL 2
 Maximum Loan Value and reasonable interest rate starting from 0.83% p.m
(9.96% p.a)
 Loan Amount starting from ₹5,00,000 and no maximum limit
 Tenure: 24 months
 Free insurance for pledged ornaments
 Digital Gold Loan Facility available

IIFL SPL 3
  Ideal for Business Owners and reasonable interest rate starting from 0.79% p.m
(9.48% p.a)
 Loan Amount starting from ₹10,00,000 and no maximum limit
 Tenure: 24 months
 Free insurance for pledged ornaments
 Digital Gold Loan Facility available

IIFL AGRI LOAN*

 Ideal for farmers, loans starting from ₹3,000

 Half-Yearly Schemes with attractive interest rates

GLOBAL SCENARIO -

Even when gold is pledged it is still done as the last resort. Gold jewellery at home is
considered on par with goddess Laxmi and hence hedging gold for a loan is
considered inappropriate.

Gold loan market this perception towards gold loan has gradually undergone a change
and individuals have started seeing the value of loan against gold as against availing a
personal loan the gold loan market that was highly fragmented and dominated by local
jewellers, has gradually seen the entry and growth of NBFCs and banks a clear
indication of the viability of gold loans as an important loan product.

The gold loans market has recently seen a lot of action firm both the consumers and
the industry. With gold spiralling upwards borrowers are able to get decent valuation
for their gold and the process of getting such a secured loan is also hassle free the
southern Indian markets have been particularly lucrative for the gold loan business -
85%-90% of the gold loan market is in the states of Andhra Pradesh, Tamil Nadu and
Kerala.

According to an estimation of the ICRA management consulting services (IMACS)

the organized gold loan market in India stands at $8 billion and is growing at a
compound annual growth rate (CAGER) of 40% since 2002 there is still ample
potential in this segment and with more banks /NBFCs coming into this business,
there could be considerable growth in terms of volume.

Why NBFCs are growing :

By virtue of their business model, NBFCs have grown rapidly over the last few years
as evidenced by their increase in market share. The key differentiators for the NBFCs
as compared to the banks and cooperatives are.

 Quick loan approvals and disbursals, with minimal documentation

 Multitude of loan options with higher LTVs.
 Greater accessibility due to better penetration.
 Better operating cost structure visa-a-vies banks.
 Flexibility provision of very small and very large loan amounts.
 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 NBFC’s ?

RBI’s guideline is a setback for NBFCs because the new rules require greater capital
adequacy for the financing companies and the thresh hold for the value of loan against
gold is proposed to be at a lower value. This would mean that ornaments of the same
value are expected to result in a lesser loan amount and that to at a slightly higher cost.

Check out other aspects where NBFCs could be adversely affected. Earlier NBFCs
used to provide up to 80% loan against the gold now it would be reduced to mere 60%
of the gold value. Gold loans from banks would now become more attractive than
NBFCs until they are allowed to lend more on the value of pledged gold the cost of
funding for NBFCs would go up due to the RBIs restriction to allow the NBFCs to
finance its gold loan from the banks as an exposure to agricultural loan. NBFCs might
have to reduce the interest rate to sustain hold in the gold loan market. Hence the
current profit margin would come down significantly.

What’s in favour of NBFCs?

Though this regulation would it hard on the revenue as well as bottom-line of the
NBFCs there still some positive assistive to this move:

NBFCs would continue to enjoy the nice segment advantage due to its deep presence
in the gold loan market at present; NBFCs have a 32% share of the total gold loan
market. The gold loan would still be cheaper than the personal loan, so the size of
market is set to grow bigger in coming days.
There are many untapped areas where NBFCs could have a better reach than the
banks. The advantage o f trouble free and quick loan processing by NBFCs would give
them the edge over the banks. NBFCs can raise funds through market borrowings, i.e.
Commercial papers to lower the cost of fund.

Objectives:

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

To find out the competitive positions of India info line finance limited

Increases the relationship between India info line & other company consumer

To find out the most preferred channel.

To find out what should do to boost India info line finance limited.
PRACTICAL ASPECT-
Lead Generation for the loan: Daily calls and asks to the IIFL costumers given
references for their family members, relative and friends circles for the loan. Call and
ask to those peoples to take loan and some another facilities like SIP, NCD, MUTAL
FUND Investment, Health Insurances and Demat accounts.

If costumers are agree then we are inviting to visit the branch and discuss all queries
and explain briefly to well understanding toward the loan facilities. EMI structure and
all documents related queries.

We provide a proper knowledge to the customer during the visit and satisfying with
our product and the services of IIFL.

During this costumers visit we are maintain a proper entry and exit data in our system
with a real-time photo of the costumers due to security purpose.

When those kinds of formalities and discussion if a costumer agrees to take a loan
form IIFL then we following steps as under:

1.Firstly we check how much gold loan want customer as they want 10 lakh for their
gold but we can provide 5 lakh as per rule of RBI 70% of gold value should be
provided to the customer, here we decide price as per quality of gold

2.GOLD VALUE – how we decide value of gold for loan. Here Appraisal team starts
work for check quality of gold with various way
a. Gold check, here they check purity of gold means if gold is not fake or have much
impurity, or it not a real gold

b. Manager or Executive decide how much value of gold loan should be provided to
the customer

3.Customer handling- Here executive try to persuade to take a loan as we decide

amount to him. Then customer agree to take loan

4. How to provide amount to the customer-Here we need some document for gold loan

a. PAN card

b. Aadhaar card

c. Address

d. Two passport size photograph

e. Agri Allied occupation documemtation

5.Document Fill – Here we fill all necessary information and take documents to the
customer for gold loan

6.Processing fee – there is no fee for a loan

Interest Rate 1% onward p.m.

(12% -27% p.a.)

Rates vary according to the amount and tenure & purity

7.Reminders – In case customer unable to pay loan amount then we provide reminders
to the customer to pay loan amount after failure of repay (three consecutive payments
or more) they do not respond then it is now non- performing asset and will be sold for
recovery

8. Auction- here we sold gold with the help of auction for recovery of loan.
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,

analysing the required information data and providing an alternative solution to the
problem .It also helps in collecting the vital information that is required by the top
management to assist them for the better decision making both day to day decision and
critical ones. Report is based on primary as well secondary data, however primary data
collection was given more importance since it is overhearing

Meaning of research -

Research is defined as “a scientific & systematic search for pertinent information on a

specific topic” research is an art of scientific investigation. Research is a systemized
effort to gain new knowledge. It is a careful inquiry especially through search for new
facts in any branch of knowledge. the research for knowledge through objective and
systematic method of solution to a problem is a research

Research design -
Research design is the conceptual structure within. Which research is conducted; it
constitutes the blueprint for the collection, measurement and analysis of data.

As search the design includes an outline of what the researcher will do from writing
hypothesis and its operational implication to the final analysis of data

Research design can be three types

Exploratory research design

Descriptive research design

Experimental research design

The present study is descriptive in nature, as it seeks to discover ideas and insight to
bring out new relationship. For fulfilling the predefined objectives the descriptive
research was conducted. An Exhaustive market survey of various costumers enough to
provide opportunity for considering different aspects of problem under study

The research objectives, questionnaire was designed.

Data collocation -

Two type of data collection primary and secondary

Primary data

Primary data refer to the first hand fresh data collected from the field it was collected
through the questionnaire method. Questionnaire will include MCQ, ranking,
checklist, and rating type of equation

Research is based on primary Secondary data. Research has been done by primary
data collection, and primary data has been collected by interacting with people.

Out of total 150 questionnaires distributed only 100 questionnaires were received
back. The questionnaires focused on the gold loan, how you know about the gold loan,
benefit of gold loan, why to deal gold loan and the level of satisfaction of the
customer.

Data sampling

The target audient for this research includes Ludhiana city people. It was also
collected through personal visits to persons, by formal and informal talks and through
filling up the questionnaire prepared. The data has been analyzed by using
mathematical/Statistical tool.

Sampling unit:-a decision has to take concerning sampling unit before selecting
sample. Here I have my sample unit includes the people of Ludhiana gill road market.
Sample size:- The sample size of my project is limited to 100 people only. Out of
which only 86% people had known about the gold loan. Other 14% people did not
have known 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.

Limitation of the study -

Time limit is the major constraint

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

some difficulty getting the people answer the survey questions because of their
workload and the responsibility they have busy his work

As per company rules many information was not disclosed

Finding &conclusions are based on superficial knowledge

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

DATA INTERPRETATION AND ANALYSIS:

1. Are you aware about gold loan?

option yes No
response 86 14
% 86% 14%
 awereness response

14%

yes
no

86%

Analysis: - from the above graph it is clear that 86% of the population are aware about
the gold loan and 14% of the population are not

Interpretation: - from the above graph we can see that majority are aware about the
gold loan and few are not aware about the gold loan.

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

option TV Wall Direct Newspape banner Friend

Advertiseme painting marketin r s s&
nt s g relativ
e
respons 48 13 22 5 4 8
e
% 48 13 22 5 4 8
 reasons of awereness
option TV Advertisement Wall paintings
Direct marketing Newspaper banners
Friends & relatives

4% 8% 0%
5%
48%
22%

13%

Analysis:-it is clear from the table that 48% of the aware only because of tv
advertisement, 13% are because of hoardings, 22% are due to direct marketing, 5%
are newspaper, 4% are banners and 8% are due to friends and family.

Interpretation:-from the above graph it is clear that majority of the population are
aware only because of TV advertisement, some are because of direct marketing and
very few are because of banners and newspapers.

3. Have you ever deal in gold loan?

Options yes No
Responses 60 40
% 60 40
 option yes no

0%

40%

60%

Analysis: - from the above graph we can see that 60% of the population have deal and
40%have not deal in gold.

Interpretation: - from the above graph we can see that most of the people are dealing
in gold loan and very few are not dealing with gold loan.

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

Options yes No
Responses 73 27
% 73 27
 future dealing
yes no

27%

73%

Analysis:- from the above graph it is clear that 73% of people are in a favour of
dealing with a gold loan in future and 27% are not in a favour.

Interpretation:- from the above graph it is clear that most of the population are in
favour of future dealing with IIFL .And very small are not in favour
5:-with which company you deal or you wish to deal?

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

Interpretation:- from the above graph it is clear that most of the customer are dealing
with muthoot finance and IIFL. And very small are dealing with Mannapuram,
Muthoot fincorp, and very few are dealing with future group, karvy.

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

Options rate of Maximum Flexibility customer Any other

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

Flexibility customer dealing

Any other

1%

28 % 28 %

16 %
27 %

Analysis:-from the above graph it is clear that 28.3%of the population are preferring
only because of rate of interest ,26.7%are because of max per gram rate,27.9%are
because of good customer dealing because few are flexibility16.2%and vary few are
other

Interpretation:- from the above graph it is clear that most of the population are
preferring company only because of rate of interest, some are preferring because of
max per gram rate and good customer dealing, and vary few are flexibility and other
are you satisfied with the current deal?

61

Options Yes No
Responses 39
% 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.
 7. Which of the following are Main reason of
satisfaction

options rate of interest Maximum Flexibility customer

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.

8. 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.
 No

9. Are you aware about IIFL?

Options yes
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.

10. have you ever visit in any branch of IIFL?

 No

Options yes
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.
 No

11.Do you wish to deal with IIFL?

Options yes
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.
 RESULTS & FINDINGS

It is also clear most of people prefer IIFL and Muthoot to take the gold loan as
compare to other companies.

IIFL are providing special schemes which are helpful to attract customer.

Most of the customers prefer IIFL gold loan because of good per gram rates.

There are no charges for entry and exit loans.

India info line finances ltd understand the dreams, needs, aspirations, concerns and
resources are unique and this is reflected in every move they do for the sake of
individual customer.

They are treating the customer as their family member and guiding them properly.

It is clear from analysis that most of population are aware

about IIFL in term of gold loan.

In Occupation group most of the Investors were Private employees, the second most
Investors were Govt.

employees and the least were associated with Agriculture.

SUGGESTION

The company has provided proper training to new employees so that they can attract
customers easily.

The company can conduct seminars and workshops so that they can provide
information to the people and give answers to queries.

The company should increases the advertisement regarding the gold loan in national
TV.

The company should adopt some strategies to increase the business through existing
customers.

The company should create the awareness about the gold loan among the general
public. They should visit the jewellers. Businessman and other work places so that
they can guide them.

IIFL should use traditional ways of promotion in rural location.

 CONCLUSION
Lending against gold has been the fastest-growing personal loan segment thanks to the
ease of getting short-term loans on reasonable terms. An aggressive push by private
lenders have added pace to the industry, especially in the last two years. NBFCs like
IIFL Finance remain the main drivers of the business

Most of the companies which are offering gold loan in India are still at growth stage
and hence there are ample of opportunities for all the companies which are offering
gold loan to tap customer. The perception of customer is yet to be changed because
still they don’t feel comfortable in taking gold loan because of traditional approach
hence there is a lot of education has to be provided to make people aware of gold loan.
To achieve sustainable growth in this sector India info line finance limited needs to
endeavour with maximum efforts the company can achieve several milestones in
future while maintaining the existing customer relationship.
BIBLIOGRAPHY

Kothari C.R, Research methodology methods and techniques 2004, new age
international pvt. Ltd, New Delhi edition 2nd pg 56-57

Malhotra Naresh and dash Satyabhushan marketing research, 2010 Pearson

publication edition 2nd pg 40-48

Luck davidet al marketing research, 2004 prentice hall India, edition 7th pg 5359

Kejriwalarun (2012): article “riches to rags story of the gold loan industry in
“business standard”

Bureau (2012): article “gold loan firms setting up SRO as RBI tighten screws” in

“economic time” johnnevin (2012): article “and the RBI on lenders” in “business
world”

Jaykumar, jhon (2011): in this article “lure of the yellow metal” in in “business world”

Bureau (2012): article “should you invest in NCDS of the gold loan finance company”
in “economic time”

Ragoanil (2012) in his article “gold loan: making gold work for you” in

“business world”

Websites www.indiainfoline.com www.5paisa.com

http://www.business-standard.com/india/news/riches-to-rags-storythegold-loan-
industary/473351 http://www.crindia.com/commodity/gold.html

http://www.moneycontrol.com/master/your money /stocks-newsconsumption.php?

cat= gold& at0no:=703262 http://www.moneycontrol.com/master/your money
/stocks-newsconsumption.php?cat= gold& at0no:=694868

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

Questionnaire

General Information

NAME..............

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

AGE...........

OCCUPTION.......................................

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

Q.1are you aware about gold loan?

A yes B No

Q.2 how do you come to know about gold loan?

A. TV Advertisement B. Wall paintings/hoardings C. Direct marketing

D. Newspaper E. banners F. Friends & relatives

Q.3 have you ever deal in gold loan?

A. yes B. No

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

A. yes B. No

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

A. Muthoot finance B. Muthoot fincrop C. Mannapuram

D. Karvy finance E. Future group F. IIFL

G. other (specify)

Q.6 which of the following is the most preferable thing at the time of availing gold
loan?
 A. rate of interest B. Maximum per gram rate C. Flexibility

D. customer dealing E. Any other (specify)

Q.7 are you satisfied with the current deal?

A. yes B. No

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

A. rate of interest B. Maximum rate C. Flexibility

D. customer dealing E. Any other (specify)

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

A. yes B. No

Q.10 are you aware about IIFL?

A. yes B. No

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

A. yes B. No

Q.12 Do you wish to deal with IIFL?

A. yes B. No