A

STUDY ON
MANAPPURAM
FINANCE
(GOLD LOAN)
 INDEX

Title Page No.

1. Chapter 1-Introduction 1-

2. Chapter 2-Research Methodology 36-40

 Objective of The Study
 Scope of The Study
 Descriptive research
 Data collection method
 Sampling Methodology

3 Chapter 3-Review of Literature 41-43

4 Chapter 4-Data Analysis and Interpretation 44-56

5. Chapter 5-Findings, Suggestions and Conclusion 57-60

6. Bibliography 61-63

7. Questionnaire 64-66
 INTRODUCTION

Manappuram Finance Ltd or MAFIL is a non-banking financial company (NBFCs)

situated in Valipad, Thrissur, Kerala state. Manappuram has over 3200+ branches
across 25 states, a staff strength of over 15,000+ people.

The company was founded in 1949 by late V.C.Padmanabhan in Thrissur District. The
company commenced its operations at Valapad, mainly with money lending activity on
a very modest scale. The group's flagship company, MAGFIL, was established in 1992
in the wake of economic reforms bunched by the Government of India. Manappuram's
origins go back to 1949 when it was founded in Valapad (a coastal village in the
Thrissur District of Kerala) by the late V.C. Padmanabhan, father of Nandakumar. Its
activity was mainly pawn broking and money lending carried out on a modest scale

As part of its diversification Manappuram Finance Limited has also ventured into the
Foreign Exchange business with the Reserve Bank of India having gramed an
Authorised Dealer - II licence to the Company which permits it to effect outward
remittances for a variety of purposes such as overseas medical treatment, higher
education abroad, business travel, conferences etc. The Company has also commenced
Instant Money Transfer in collaboration with UAE Xchange, Wallstreet and
MoneyGram.

HR is concerned with the people dimension in an organization, hence the trend in

organizations to re- designate Personnel Department into Human Resource
Department. The functions undertaken by HRD are to recruit, select, train and develop
employees for an organization. Today with companies having a global mix of
employees, developing an understanding of the employees is a tough task for the HR
Department. Human Resource Management is a process of bringing people and
organizations together, so that their respective goals are met. Indian organizations are

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 also witnessing a change in systems, management cultures and philosophy due to the
increasing global alignment of Indian companies.

With the Trust, Commitment and Transparency extending over 61 years, Manappuram
Group has emerged as a force to reckon with, under the stewardship of Mr. V.P.
Nandakumar, the Chairman of the company. Today with 9 companies under its fold,
having more than 2,000 branches spread over 19 States of India and a total business over
Rs. 70 billion, a workforce of over 14,500 and a customer base of over 5 Million , we are
India`s Largest Listed and Highest Credit rated Gold Loan Company.

They are involved in providing a wide range of financial solutions to their customers that
will make their life easy.

As globalization has been a challenging issue for the organization because international human
resource management has placed great emphasis on number of responsibilities and functions
such as relocation, orientation, translation services to help employees adapt to new and
different environment outside their own country necessary attention must be paid by HR
Managers in formulating policies, motivation, maintaining the relationship and stressing on
quality in administration. HR does this in a measurable way. HR functionaries need to do a lot
of things. In the end, HR plays the role of initiator, planner and executor in organizations.

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Taking a look at the world of human beings is a rewarding experience. Contracts abound in
this world. These contracts remain so despite the passage of time, sweeping political &
economic changes, cultural differences. HR could be the ultimate differentiator in the
competitive marketplaces of the future. But first "OM HR" must be deconstructed. Great
companies have for years been eliminating wasteful process that don't move the talent needle
When Manappuram Finance Ltd. first entered the gold loans market in the latter half of the
nineties, it also became the first NBFC in India to get into gold loans. Till then, this business
was the preserve of the unorganized sector, the pawnbrokers and moneylenders who operated
in lanes and by lanes across the country away from the oversight of regulators and policy
makers. Indeed, India’s regulatory and policy making establishment (as also decision makers
in the banking sector) were largely uninformed about gold loans and why it mattered to so
many ordinary Indians. After all, there were no academic papers or studies about the share of
gold loans in India’s credit market, and there was little awareness about what made people
resort to gold loans. Consequently, in those early days, we found it difficult to convince bankers
about the viability of the gold loan business in a corporate setting and getting them to extend
loans to us was not easy. Of course, things changed once we had demonstrated by example
how a business overlooked by the mainstream financiers could be so relevant to India’s macro
economy.

Since those early days, gold loans have come a long way but we continued to face a dearth of
verifiable data-backed understanding of gold loan customers. The main reason for the lack of
representative information is that the gold loan industry is fragmented and dominated by the
unorganized and unregulated lenders like moneylenders and pawnbrokers. To this day, less
than a third of the estimated gold loan market in India is conducted via banks, non-banks and
other registered entities.

Over these years, we have tried our best to do what we can to rectify the situation. In the year
2009, we commissioned a study through the ICRA Management Consulting Services Limited
(IMaCS) which was published with the title “Gold Loans Market in India, 2009” to become
the first serious study of the gold loans sector. We followed this up in 2011 with a survey and
study of our own gold loan customers conducted by a senior economist affiliated to the
University of Kerala, Thiruvananthapuram.

In 2012, when the RBI set up the Rao committee to undertake a thorough analysis of the gold
loan business, the committee members expressed their frustration that almost no data or reliable

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information was available about this age-old business. It was true that most of the existing
research was based on anecdotal evidence, without hard numbers to back up the conclusions.

Accordingly, we had forwarded a copy of our 2011 study of our gold loan customers to the
RBI. We understand that it was relied upon during committee deliberations, and it helped
establish the positive impact of gold loans on the lives of the masses. It became clear to the
committee that gold loans were no longer a distress product, having evolved into a lifestyle
credit product. Customers were as comfortable monetizing their gold jewelry to meet short-
term cash flow mismatches as they were in availing a home loan or an auto loan. The view
gained ground that if the gold loan sector is not handled with judicious policy initiatives, people
may head back to the unorganized sector dealing a body blow to the cause of social and
financial inclusion.

The Rao Committee report on India’s Gold Loans sector commissioned by the RBI came out
in 2013. Since then, IMaCS has been putting out periodic updates to its original 2009 study.
However, there is a perceptible lack of updated studies focused on the gold loan customer. As
things stand, much of our understanding of the typical borrower's profile, requirements etc. is
based on our own experience gathered over the years. This has a weakness in that bias can
creep in, and one’s presumptions can continue to drive the business unmindful of the reality of
an ever-changing socio-economic backdrop. After all, customer preferences change, their
requirements change, competitive landscapes change and, most importantly, people change!

It is, therefore, of utmost importance to update our understanding of the market, customers,
competing products, and the wider socio-economic dynamics. Several studies and reports are
available for most of the micro-markets and credit segments, but rarely do we come across a
serious, painstaking study about the business of lending against household gold jewelry.

That’s why in late 2019, Manappuram engaged the Gokhale Institute of Politics and Economics
(Pune), a renowned economic research institution, to conduct a fresh study of its gold loan
customers. Established in 1930, the Gokhale Institute is the oldest economic research and
training institute in India. It is reputed for its initiatives in qualitative research in diverse areas
of economic theory and practice. Its founding director, Shri D.R. Gadgil was a member of the
first National Income Committee and the Deputy Chairman of the Planning Commission, the
highest bureaucratic position in the Indian economic sector with the rank of a cabinet minister.

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He is well known as the author of the Gadgil formula which served as the basis for allocation
of central assistance to states during the fourth and fifth Five Year Plans.
The Institute is credited with pioneering contributions by way of surveys, research, informed
debate, analyses and critiques, which have shaped the public discourse on major
socioeconomic initiatives. It developed a methodology for data collection which is still used
by National Sample Survey Organization (NSSO). On the policy front, the institute designed
the institutional framework for NABARD, formulated the Employment Guarantee Scheme and
Agricultural Insurance Scheme. It is indeed an honor for Manappuram to be associated with
the Gokhale Institute for such an important study.

However, no sooner had the spadework for the study commenced that the world was struck by
the Covid-19 pandemic. We realized that this event had the potential to alter the course of the
future. The customer’s behavior, perspectives, and preferences related to gold and other credit
products must be reassessed. The exercise required undertaking a baseline survey of, and data
collection from, gold loan customers. While any researcher would have preferred to have a
broad sample for collecting a representative dataset, we had to restrict the data collection to
our own customer base on account of customer confidentiality. The fact is, other gold loan
lenders would not be comfortable in sharing their customer information with external
researchers.

The larger purpose of the study was to analyze customer behavior (using actual transaction
data) to make actionable policy recommendations. For this, the study needed to understand the
service delivery process, the benefits accruing from gold loan availability, as well as the costs
of non-availability. After all, unless we understand how customers are likely to behave in the
absence of the institutional gold loan, we may miss out on the prospective policy changes
required to shift the bulk of the unbanked and under banked to the institutionalized lending
framework.

Much of the secondary information concerning the gold loan industry is based on small and
fragmented data points. Manappuram has over 25 lakh active customers and a network of
nearly 3,500 gold loan branches spread across 28 states/UTs of the country. The target sample
was designed using a stratified sampling method for a representative sample and to arrive at an
unbiased understanding of the gold loan customers at the national level.

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We conducted a few pilot sample surveys to fine-tune the questionnaire to make it easier to
grasp and derive appropriate responses. As the survey was to be conducted over telephone, it
had to be short, yet detailed enough to draw a relevant response. The questionnaire focused on
the customer’s experience with gold loans and other loans, experience with institutional
(Banks/ NBFC etc.) and non-institutional lenders (moneylenders/ pawnbrokers etc.), their
perspective on satisfaction derived from the gold loan, benefits and costs associated with
availability and non-availability of gold loan, the changes they desired in the product design,
and their preferences regarding ease, cost, tenure etc.

As the survey was conducted across India with most respondents belonging to the bottom of
the pyramid, we conducted all interactions in their regional language using translated survey
questionnaires. We faced many connectivity challenges, often requiring repeated calling to
complete all the questions in the survey. The questionnaire took approximately 15 minutes to
administer. We managed to generate responses from 3,582 customers who completed the
telephonic survey (partial responses were not considered in the study for uniformity). The
respondents belonged to 357 districts of 27 states and union territories, giving us a
representative all-India sample for better understanding of the role played by gold loans in
fulfilling the objectives of responsible lending, including the economic, social, and governance
(ESG) agenda of our institutional lenders.

in the organization. It is critical to challenge historical norms, eliminate bureaucracy, deploy

the latest data technology, and optimize organizational structure, no matter what your job title
is, we are all in the HR, because employees are at the heart of every organizational success.

In early 1900s, HR function known as industrial and labor relation after steel and oil had
transformed business in the 19th century, it become clear that workforce management needs
its own discipline Later in 1920s in a driving economy, good workers were hard to come by
and even harder to retain

HR introduced supervisors to treat people well During the 1930s, the era of the great
depression, supervisors favored the drive system of Management (threatening and sometimes
even hitting workers) and saw HR as a hindrance. Workers put up with almost anything to stay
employed. Talent development was practically nonexistent. In the 1950s, after the Second

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World War, Western countries lost 1/3rd of their executives in the war with no one to replace
them. To fill that void, HR created a host of revolutionary hiring and development programs.

In the 1970s, as the economy slowed, labor was once again plentiful Business Leaders started
undoing all those post-war programmers designed to attract and develop talent. Early 1980s,
the US went in to deep recession and workers cling to their jobs. Rather than invest in HR,
companies pushed hiring and developments tasks onto line managers, who had neither the time
nor the training to do it properly

Late 1990s, during the dot-com boom, companies competed fiercely for employer of choice
status to meet their soaring talent needs. So, HR enjoyed a brief heyday, focusing primarily on
hiring and retention. From 2001, when the dot-com bubble burst and the economy tanked,
business leaders felt little urgency to attract talent. Productivity rose, wages stayed fat, and HR
lost the influence it had enjoyed during the boom

Nowadays, with the effects of the great recession of 2008 still lingering, most people with jobs
aren't jumping ship yet, so executives feel no urgent need for HR programmers. HR has to
first make a case

For it and these days HR focuses attention on the following:

 Policies HR policies based on trust, openness, equity and consensus.
 Motivation Create conditions in which people are willing to work with zeal,
initiative and enthusiasm make people feel like winners.

Relations- Fair treatment of people and prompt redress of grievances would pave the way
for healthy work-place relations

Change agent- Prepare workers to accept technological changes by clarifying doubts.

Quality Consciousness Commitment to quality in all aspects of personnel administration
will ensure success.

Learning happens all the time whether or not you are fully aware of it. Are you a person who
forgets to save your work on your computer on a regular basis? If a power failure occurs and
you lose some data, do you learn anything? If you say to yourself, 7 must remember to save

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More often", you have done some learning. This type of learning is called incidental learning,
you have learned without really thinking about it or meaning to. On the other hand, intentional
learning happens when you engage in activities with an attitude of what can I learn from this?"
Employee development requires you to approach everyday activity with the intention of
leaming from what is going on around you.

History

Manappuram General Finance and Leasing Ltd or MAGFIL is a non-banking financial

company (NBFCs) situated in Valapad, Thrissur, Kerala state. Manappuram has over 1,000
branches across 15 states, a staff strength of over 6,500 people and a customer base of over
5,000. History

The company was founded in 1949 by late V.C. Padmanabhan in Thrissur District. The
company commenced its operations at Valapad, mainly with money lending activity on a
very modest scale. The group's flag-ship company, MAGFIL, was established in 1992 in
the wake of economic reforms launched by the Government of India.

The company was founded in 1949 by late Mr. V.C. Padmanabhan, a great visionary of
his times. The company commenced its operations at Valapad, mainly with money lending
activity on a very modest scale. The principal asset of the company was the impeccable
integrity devotion and foresight of its founder. The company soon established itself as a
safe haven for investments of the people of the area providing absolute safety and assured
returns. On the sad demise of the founder in 1986, his illustrious son, Mr. V.P.
Nandakumar, the present Chairman took over the reins. Under his dynamic leadership, the
company never had to look back. Mr. Nandakumar was working as an officer of the
erstwhile Nedungadi Bank, before he took over the captaincy of the company. Known for
his sharp business acumen and professionalism, Mr. Nandakumar has been instrumental
in taking the organization to its present level. With an alert mind and unconventional
methods of problem solving, Mr. Nandakumar has put this organization on the launching
pad. He believes that the future belongs to those who can advantageously use the
technology to serve the customers by evolving customized products and services.

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LOAN POLICY (Last Amended in the Board dated 8" February 2017)

A. INTRODUCTION

The Loan Policy shall act as a guiding post for the top management of the Company in
conducting the business within acceptable risk tolerances and thus ensure both long term
profitability and stability in lending operations.

B. OBJECTIVES

The main objectives of the Lending Policy are to:

⚫ Ensure a healthy balance between loan levels, profits and quality of assets. • Comply
with the regulatory requirements/directives such as Capital Adequacy, LTV, Interest
rates etc.
Lay down controls for assumption and monitoring of large exposures. • Develop and
inculcate 'internal values' in the business of lending.

⚫ Facilitate sustained growth without deterioration in the asset quality. Lay down proper
system & procedures, appraisal standards at various levels in the organization with
sturdy internal controls. • Adequately protect the collaterals pledged from any possible
loss.

⚫ Detail risk management practices and internal audit procedures into the Lending
Policy.

⚫ Enable the Company to successfully and consistently cope with competition. Improve
the capabilities and credit skills of the employees and officers connected with loan
portfolio at various levels. With the expectations on corporate social responsibility and
actively participate in Financial inclusion' programme.

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 C. GOLD LOAN

⚫ The Company will normally accept only Household Used Jewellery as security they
are presumed to carry the invaluable 'emotional attachment' of the owner. New gold
ornaments may also be selectively accepted, subject to laid down controls, provided
there are no other adverse indications.

⚫ Loan shall be devised in conformity with the Loan Policy of the Company and also the
regulatory directives of RBI as applicable. Loan schemes and terms & conditions thereof
shall keep in view the NPA / Income recognition classification norms laid down by the
RBI.

EMPLOYEE SPEAK UP POLICY

Dear Employees "If you see any of the following, be courageous to speak up"
Fraud, Bribery or Corruption in any of the Business Operations related to the
Organization. Procurement Fraud, Discrimination, harassment, abuse, threats, and other
work environment issues. Unreasonable Gifts & Entertainment received by Employees.

⚫ Illegal or suspected Illegal acts.

⚫ Theft or misuse of the Company's Assets and Resources.

⚫ Theft or misuse of the Company's Intellectual Property

COMMANDMENTS FOR APPRAISING GOLD

At the Manappuram Group of companies, we have introduced "The Ten Commandments" to ensure
that the quality/ purity of gold is always correctly appraised. The GL-1 and GL-2 staff have to strictly
adhere to these instructions while appraising the gold. The commandments are given below in a
question-answer format.

1. Have you separated the ornaments?

Immediately upon receiving gold for pledge, separate/ differentiate the jewellery with respect to its
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characteristics such as whether it is hollow, light- weight or heavy-weight etc. In the case of studded
jewellery (i.e. studded with gemstones), the weight is calculated after deducting the gem stone weight
from the jewellery.

2. Have you assessed the approximate weight with bare hands?

Develop the skills to assess the approximate weight of the ornaments while holding it in your hands.
This skill can be developed by anyone through continuous practice.

3. Have you sensed the odour / smell of the jewellery?

Firmly press and rub the jewellery (or move it to and fro) against our palms. Gold does not have any
odor. In case you detect any smell/odour, it indicates the presence of copper content in the jewellery.

4. Have you checked/perceived the sound vibrations of the jewellery?

When gold jewellery is dropped on the floor, a glass surface, or on the touchstone, it emits a peculiar
sound. We can also identify hollow jewellery and plain bangles by this method.

5. Have you tested the hollow ornaments?

Manufactured or crafted (handmade) hollow jewellery will have small openings or empty spaces.
While testing, we can try and pierce the opening with a needle or a pin. In this way we can determine
whether any alloy content is present inside the jewellery. In the case of a gold bar, appraisal can be
done only by cross cutting and that too only with the consent of the customer. Jewellery of a dazzling
nature and heavy weight jewellery have to be dealt with extremely carefully.

6. Have you done the acid test?

This is the general method used to test the purity of gold. The first step is to clean the touchstone with
the wax to you. Rub the wax gently on the touchstone so that all minute particles and dirt from the
touchstone are removed. Apply a drop of oil and rub it into the surface of the touchstone. Now, firmly
rub the jewellery to and fro against the touchstone. Next, add a drop of concentrated nitric acid to the
trails left on the touchstone. Acid does not react with gold. However, if it is not pure gold, we will see
fumes coming out from the trails upon applying nitric acid. To ensure accuracy of test results, we must
be sure of the quality of both the touchstone as well as the nitric acid. If the nitric acid bottle lid is kept
open for a long time, chances are that the acid will lose its concentration. This will adversely affect its
reactive ability. Therefore, after each test, make sure that the lid is returned to its original position (i.e.
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tightly closed).

7. Have you examined the quality of finish of the ornaments?

To some extent it is possible to identify spurious gold by examining the overall quality of finish of the
jewellery and also examining the hooks of the chain etc. Usually, spurious ornaments lack a good
finish.

8. Have you checked the identity proof of the customer?

Always perform a thorough verification of the original identity-proof submitted by the customer. The
verified copy of these documents must be kept safely in the records for future reference. Take the
photograph of the customer by using the webcam connected to the computer.

9. Have you taken due precautions against certain customers?

Keep a note of those customers who demand the maximum loan amount, who visit the branch for
pledge especially during the peak hours of business, who wants things to be done all at once, who have
not settled their pledges on the due dates, who approach the branch for pledge even when they reside
more than 50 km away (from the branch) and customers showing undue respect or occasionally
offering gifts to the branch staff.

10. Have you ensured completion of all formalities before the customer leaves the branch?

Ensure that the GL-1 and GL-2 appraisals are completed before the customer leaves the branch. Weigh
the ornaments with the electronic weigh balance (GI-1) and then with the manual weigh balance (Gl-
2). As a rule, ornaments once appraised should not be handed back to the customer. If at all it happens,
the ornaments received back must be reappraised before the customer leaves the branch.

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 EMPLOYEE TRAINING AND DEVELOPMENT

Training is a program that helps employees leam specific knowledge or skills to improve
performance in their current roles. Development is more expansive and focuses on employee
growth and future performance, rather than an immediate job role.

Employee training is essential in today's competitive marketplace. However, many companies

treat it as a box to check or a chore to complete. When you do training well, it's a true
investment in your business. The right training helps you educate and engage employees,
giving you the competitive advantage needed to boost the bottom line.

Good training and development programs help you keep the right people and grow profit. As
the battle for top talent becomes more competitive, employee training and development
programs are more important than ever. Hiring top talent takes time and money, and how you
engage and develop that talent impacts retention and business growth.

According to Chiru Gorman, CEO at Great Places to Work, "As companies grow and the war
for talent intensifies, is increasingly important that training and development programs are not
only competitive, but are supporting the organization on its defined strategic path" And it's not
just about retention. Employee training and development programs directly impact your bottom
line.In their Predictions for 2015.

COMPETITIVE ADVANTAGE

 IMPROVE PRODUCTIVITY AND PROFITABLITY: It's simple employees with

better skills deliver better work. Employee development and growth leads to
innovation. By making sure employees are well informed and well trained, you are
building a foundation that will allow you to stay at the top of your industry. And making
sure people have the training and development needed allows them to be more effective
at work. Utimately innovation and more productivity will create a better customer
experience and drive profitability for your company.

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  KEEP AND SUPPORT THE RIGHT TALENT: The cost of the wrong person in a
position or the right person leaving your company is a major problem for your bottom
line.Hiring top talent takes time and money, and how you engage and develop that talent
impacts retention and business growth. Forward-thinking organizations recognize that
good training and development programs keep the right people in the right roles.
Further, a little investment in training can turn the wrong person in a role into the right
person. Helping foster leadership or boosting soft skills could make your internal
pipeline for more promising

As the battle for top talent becomes more competitive, employee training and development
programs can be a primary differentiator for your business.

WHO IS RESPONSIBLE FOR EMPLOYEE TRAINING AND

DEVELOPMENT

Employee training is the responsibility of the organization Employee development is a shared

responsibility of management and the individual employee. The responsibility of management
is to provide the right resources and an environment that supports the growth and development
needs of the individual employee. For employee training and development to be successful,
management should:

Provide a well-crafted job description - is the foundation upon which employee training and
development activities are unit.

Provide training required by employees to meet the basic competencies for the job. This is
usually the supervisor's responsibility Develop a good understanding of the knowledge, skills
and abilities that the organization will need in the future. What are the long-term goals of the
organization and what are the implications of these goals for employee development? Share
this knowledge with staff

For employee development to be a success, the individual employee should: Look

for learning opportunities in everyday activities

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  Identify goals and activities for development and prepare an individual development
plan.

DEVELOPMENT

Employee training and development needs to suit your organization's context, job
descriptions, employment contracts and collective agreements. When selecting employee
training and development methods, it is important to remember the learning process. There
are many ways to provide employees with learning opportunities, including: On-the-job
experience Committees

Committees are part of every-day activity in any organization. They can also be effective
learning took, with the right focus

 Committees made up of staff from different areas of your organization will enhance
learning by allowing members to see issues from different perspectives

 Set aside part of the committee's work time to discuss issues or trends that may impact
on the organization in the future Conferences and forums

 Employees can attend conferences that focus on topics of relevance to their position
and the organization

Upon their return, have the employee make a presentation to other staff as a way of
enhancing the individual's learning experience and as a way of enhancing the
organization.

(Someconferences and forums may be considered off-the-job kaming)Deepash Rajak Feb. 08,
2017 23 likes 14,534 views Critical incident notes Day-to-day activities are always a source of
leaming opportunities

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 o Select the best of these opportunities and write up critical incident notes for staff to
learn from Maybe a client complaint was bundled effectively. Write a brief summary
of the incident and identify the employee's actions that led to a successful resolution

o Share the notes with the employee involved and with others as appropriate. If the
situation was not handled well again write a brief description of the situation
identifying areas for improvement

o Discuss the critical incident notes with the employee and identify the areas for the
employee to improve upon and how you will assist the employee in doing this

FIELD TRIPS

If your organization has staff at more than one site, provide employees with an opportunity to
visit the other sites This helps your employees gain a better understanding of the full range of
programs and clients that your organization serves o Field trips to other organizations serving
a similar clientele or with similar positions can also provide a valuable learning experience

o Give staff going on field trips a list of questions to answer or a list of things to look for

. Follow up the field trip by having staff explain what they have learned and how they can apply
that learning to your organization (Fieldtrips can also be an off-the-job activity)

Job aids

 Tools can be given to employees to help them perform their jobs better. These tools
include: manuals, checklists, phone lists, procedural guidelines, decision guidelines and
so forth

 Job aids are very useful for new employees, employees taking on new responsibilities
and for activities that happen infrequently

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Marketing is essentially about marshaling the resources of an organization so that they
meet the changing needs of customers on whom the organization depends. As a verb,
marketing is all about how an organization addresses its markets.

Non-bank financial companies (NBFCs) are financial institution that provide banking
services without meeting the legal definition of bank, i.e. one that does not hold a banking
license. These institutions are not allowed to take deposits from the public. Nonetheless,
all operations of these institutions are still exercised under bank regulation However this
depends on the jurisdiction, as in some jurisdictions, such as New Zealand, any company
can do the business of banking, and there are no banking licenses issued.

PROCESS OF GOLD LOAN

ONLINE PROCESS:

The convenience of digitisation has benefited everyone in several ways. Today, you can
easily apply for a gold loan online without any hassles. To avail a gold loan from Muthoot
Finance, here is the gold loan procedure that you need to follow – Step 1:

Visit Manappuram Finance’s website or download the Manappuram application on your

mobile phone.

Step 2:
You will find gold loan calculator using which you can calculate the loan amount against
the weight of the gold article in grams. All you have to do is fill in your name, state, email
id, gold type, and other mandatory details, required for the gold loan process. Click on the
calculate button and the loan amount that you will get against your gold will be shown.

Step 3:
At Manappuram Finance, you will find a variety of schemes available for gold loan that
we offer to our customers. You can choose the best one according to your preferences.

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Step 4:
Once you choose the best-suited gold loan scheme for your requirement, you can calculate
the EMI of your gold loan using the EMI calculator Enter the scheme that you have chosen,
the loan amount, and the tenure for repayment; the EMI amount will be shown to you.

Step 5:
If the gold loan amount and the EMI matches all your requirements, you can fill the form
and submit it. One of our expert executives will get in touch with you in no time to discuss
the gold loan formalities.

OFFLINE PROCESS OF GOLD LOAN:

Application:

Anyone who wants to take a gold loan needs to first apply at a bank or a non-bank lender.
Applicants can either do so by going to the branch of the lender or apply online, which is
the most favoured option these days in urban areas.

Evaluation:

After you complete your application, a representative of the lender will get in touch with
you. If you applied online, the representative will even come to your home to check
documentation and examine the gold. All banks and financial institutions first check the
purity of the gold. An appraiser determines the quality and market price of the gold to be
pledged.

Documentation:

The lender then completes the Know Your Customer (KYC) process as per the Reserve
Bank of India’s (RBI) norms.

Approval and disbursement:

The loan is approved after the applicant agrees to the loan amount and other charges.
Gold loans come with a processing fee of 0.10% to 1% of the loan amount.

18
 What documents are required?

The applicant needs to furnish the following documents to avail a gold loan:

• Aadhaar card.

• Identity proof—Any one of PAN card, passport, driving licence or voter’s ID.
• Address proof—Any one of passport, driving licence, electricity bill or gas bill.

Notably, a “proof of income” is not a mandatory document required to avail a gold loan.

Who is eligible for a gold loan?

Any individual who has gold jewellery is eligible to apply. Some lenders also accept gold
coins. The applicant should be in the age group of 18 years to 60 years. Loan against gold
is granted to professionals,self-employed, business owners, and other individuals.

Moreover, a poor credit score usually doesn’t matter as this is a secured loan.

How is a gold loan repaid?

There are basically four ways to repay a gold loan:

Pay periodic EMI:

This includes payment of both the interest and principal amount on a monthly basis.

Pay EMI first and principal later:

Follow the EMI schedule to repay the interest amount and pay the full principal amount
at the time of maturity.

Partial payments:

Make partial or even complete payment of interest and principal amounts, irrespective of
the EMI schedule. You can also repay the principal amount first and then pay the total
interest.

19
Bullet repayment:

Repay the principal and interest amount at the end of the loan’s tenure.

Account closure:

A gold loan account is deemed closed when the borrower deposits the outstanding loan
principal amount and interest amount. The lender gives the collateral gold back to the
borrower and receives the acknowledgment after the closure of the loan account is
confirmed.
Services Provided

NBFCs offer all sorts of banking services, such as loans and credit facilities, private
education funding, retirement planning, trading in money markets, underwriting stocks
and shares, TFCs and other obligations. These institutions also provide wealth
management such as managing portfolios of stocks and shares, discounting services e.g.,
discounting of instruments and advice on merger and acquisition activities. The number
of non-banking financial companies has expanded greatly in the last several years as
venture capital companies, retail and industrial companies have entered the lending
business. Non-bank institutions also frequently support investments in property and
prepare feasibility, market or industry studies for companies.

However, they are typically not allowed to take deposits from the general public and have
to find other means of funding their operations such as issuing dept instruments

Regulation

For European NCs the payment services directive (PSD) is a regulatory initiative from the
European Commission to regulate payment services and payment service providers
throughout the

European Union (EU) and European Economic Area (EEA). The PSD describes which
type of organisations can provide payment services in Europe (credit institutions (i.e
banks) and certain authorities (e.g Central Banks, government bodies), Electronic Money
Institutions (EMI), and also creates the new category of Payment Institutions).

20
Organisations that are not credit institutions or EMI, can apply for an authorisation as
Payment Institution in any EU country of their URL choice (where they are established)
and then passport their payment services into other Member States across the EU.nbfc is
basically for those people who want better service in short period of time .

Classification

Depending upon their nature of activities, non- banking finance companies can be
classified into the following categories:

• Development finance institutions

• Leasing companies

• Investment companies

• Modaraba companies

• House finance companies

• Venture capital companies

• Discount & guarantee houses

A non-bank financial institution (NBFI) is a financial institution that does not have a
full banking license or is not supervised by a national or international banking regulatory
agency. NBFIs facilitate bank-related financial services, such as investment, risk pooling,
contractual savings, and market broking Examples of these include insurance firms , pawn
shops, cashier cheack issuers, check cashing locations, currency exchanges, and Alan
Greenspan has identified the role of NBFIs in strengthening an economy, as they provide
"multiple alternatives to transform an economy's savings into capital investment which act
as backup facilities should the primary form of intermediation fail."

Non-banking financial companies, or NBFCs, are financial institutions that provide

banking services, but do not hold a banking license. These institutions are not allowed to
take deposits from the public. Nonetheless, all operations of these institutions are still

21
 covered under banking regulations.

Customer Satisfaction begins with the following specific assumptions about company’s
relationship with the customers.

 The customer service activities focus mainly on existing customers.

 Some customers are more important than others  They are the assets.

 The customer is always specific.

The customer needs and value should influence every aspect of the organization strategy,
employee safety and performance, product and organization strategy, employee safety and
performance, product and service development, sales and marketing programs, operational
procedures and information and measurement system. Understanding the customer is
critical to the success of any customer focus initiative. A company needs to hear what its
customer are saying about its Service and vision their information helps to develop
meaningful Product service.

Organizations need to listen to their customer satisfied, dissatisfied neutral and prospective. As
one company executive said, “talking to a satisfied customer is talking to myself”

In the past, customer satisfaction and service was the responsibility of a separate organization
that supported the customer primarily Today, service is also likely to be interested with the
every product accompany offers.

High customer satisfaction comes from providing effective services. But giving that service is
a continuous activity. It means being efficient, reliable, courteous, curing and professional
every time.

22
 ADVANTAGES

Quick and easy access to funds – A gold loan allows you to borrow money quickly and easily,
using your gold as collateral. This means you don’t have to go through a long application
process or wait for approval, as the loan is based on the value of your gold.

Low-interest rates – The interest rates on a gold loan are typically lower than other types of
loans, such as personal loans or credit card loans. This can save you money in the long run and
make it more affordable to borrow.

Flexible repayment options – Many banks and financial institutions offer flexible repayment
options for gold loans, which means you can choose a repayment plan that works best for you
and your budget.

No credit check – A gold loan does not require a credit check, as the loan is secured by the
gold. This means you can get a loan even if you have a poor credit history or no credit history
at all.

Low risk – Gold is considered a low-risk investment, as its value tends to appreciate over time.
This means that even if you don’t pay back the loan on time, the lender can still sell the gold
at a profit.

23
 DISADVANTAGES

Risk of losing gold – A gold loan puts your gold at risk, as the gold is used as collateral. If you
are unable to repay the loan, the bank may seize your gold and you could lose it.

Limited loan amount – The amount of loan you can get against your gold is usually limited
to a certain percentage of the gold’s value. This means that if you need a large amount of
money, you may not be able to borrow it all using this type of loan.

Possibility of lower loan to value (LTV) ratio – The loan to value ratio (LTV) of gold loan
is usually lower than other types of loans, which means you may not be able to borrow as much
as you need.

Possibility of hidden charges – Some lenders may charge hidden charges such as processing
fee, valuation fee and insurance fee, which can add extra cost to the loan and make it less
attractive.

Not suitable for long-term needs – A gold loan is typically a short-term loan, making it less
suitable for long-term needs such as funding a business or financing higher education

24
 SERVICES

OUR SERVICES

• Gold Loan / Loan Against Gold

• Money Transfer
• Gold Coin
• Business Loan
• Insurance
• Security Loan
• Foreign Exchange
• Swarnanidhi
• Deposits
• Chits
• Gold Overdraft
• Vehicle Loan

25
 Swarnanidhi:

Swarna Nidhi (Gold Purchase Scheme)

They help the customer to purchase gold, upon the invoice from the concerned jewellery
shop.

• Gold Loan / Loan Against Gold

Gold loan (also called loan against gold) is a secured loan taken by the borrower from a
lender by pledging their gold articles (within a range of 18-24 carats) as collateral. The
loan amount provided is a certain percentage of the gold, typically upto 80%, based on the
current market value and quality of gold.

• Money Transfer
A gold loan balance transfer is the process of moving a gold loan from one lender to
another. You can move your gold loan account from one lender to another if you are
unhappy with the customer service or if another bank offers a better interest rate.

However, not every lender provides this service.

• Gold Coin
Gold coin is a coin that is made mostly or entirely of gold. Most gold coins minted since
1800 are 90–92% gold (22‑ karat), while most of today's gold bullion coins are pure gold,
such as the Britannia, Canadian Maple Leaf, and American Buffalo.

• Business Loan

In simple terms, it involves borrowing against one of the company's assets, with the lender
focusing on the quality of the collateral rather than the credit rating and prospects of the
company. A business may borrow against several different types of asset, including
premises, plant, stock or receivables.

26
  Insurance
A gold loan is a secured loan wherein the borrower keeps their gold, ranging from 18K to
24K, with a bank or a financial institution as security and avails capital against it

 Security Loan
Secured loans are business or personal loans that require some type of collateral as a
condition of borrowing. A bank or lender can request collateral for large loans for which
the money is being used to purchase a specific asset or in cases where your credit scores
aren't sufficient to qualify for an unsecured loan.

 Foreign Exchange
The foreign exchange market is a global decentralized or over-the-counter market for the
trading of currencies. This market determines foreign exchange rates for every currency. It
includes all aspects of buying, selling and exchanging currencies at current or determined
prices

 Swarnanidhi
Swarnanidhi is a flexible, 8 months gold booking scheme. This scheme will also help
protect you against the rising gold rates. Under this scheme you can book grams of gold
every month for 8 months post you can redeem the grams booked in form of Tanishq
jewellery at gold rate applicable at the time of redemption.

 Deposits
For a Gold Loan, the bank takes your gold as collateral for the period of the loan. Banks
charge an interest rate, and once you repay the entire loan, the bank returns your jewellery.
Another essential thing you need to know about how Gold Loan works is the type of gold
accepted. Most banks accept only gold jewellery.

 Chits

Manappuram Chits India Ltd (MACIL) registered under Chits Fund Act 1982, was
established on the 21st July 2000 for chit operations. Chit, also known as Chit Fund,
Chitty, Kuri, etc, is a transaction under which a person enters into an agreement with a
group of people, on the understanding that each one shall subscribe a certain sum of money
by way of periodic instalments over a specific period.
27
  Gold Overdraft
In a gold loan overdraft, you only have to pay interest on the amount you have utilised for
the offered credit limit. For example, if you have used Rs 10,000 from a Rs 1,00,000 gold
loan overdraft, the lender will ask you to pay interest only on Rs 10,000.

 Vehicle Loan

A Vehicle Loan is a loan that allows you to purchase two and four wheelers for personal
use. Typically, the lender loans the money (making a direct payment to the dealer on the
buyer's behalf) while the buyer must repay the loan in Equated Monthly Instalments
(EMIs) over a specific tenure at a specific interest rate.

Attractive Features:

1. Different schemes to suit your needs;

2. No hidden charges;

3. Minimum Duration - 12 months to Maximum - 60 months;

4. Minimum weight of Gold Coin when purchased from Manappuram Finance - 8

grams to Maximum - 100 grams;

5. Minimum weight of Gold when purchased from other companies - 16 grams to

Maximum - 800 grams.

28
 ACHIVEMENTS

The Group`s flag-ship Company, Manappuram General Finance and Leasing Limited
(MAGFIL) was established in 1992 in the wake of economic reforms launched by the
Government of India mainly to take advantage of the importance assigned to Leasing as
a vehicle to promote decentralized pattern of Economic Growth through small and
medium enterprises. In a short span of time, MAGFIL had several Firsts.

1. First NBFC from Kerala to receive a Certificate of Registration issued by RBI mainly
on the strength of the company`s ability to settle the depositors` claim in full.

2. First NBFC from Kerala to get a credit rating of "MA+" from ICRA, (a credit rating
agency approved by RBI) which signifies the company`s ability to make timely
repayment of the principal and interest under its Public Deposit Programme. Within a
short span of time MAGFIL recorded a phenomenal growth to become a premier
NBFC from South India.

3. It is the FIRST NBFC from Kerala to have received Adequate Safety rating for its
Secured Non- convertible Redeemable Debenture issue for Rs. 50 million.

4. First NBFC from Kerala to go for public issue.

5. First NBFC from Kerala to issue bonus shares at the ratio 1:1.

6. First NBFC from Kerala to receive Foreign Direct Investment (FDI).

7. First NBFC from Kerala to receive AD- II (Authorised Dealer - II) License from RBI.

8. First NBFC from Kerala to obtain Broker`s License from IRDA (Insurance
Regulatory)

29
9. First NBFC in the country to receive a Short-term rating of A1+ by ICRA and P1+ by
CRISIL. These are the Highest Short Term Rating awarded by ICRA and CRISIL to
any Corporate in India.

The shares of the company are listed in Mumbai, Chennai and Cochin Stock Exchanges
and are actively traded in BSE at levels far above par.

In 1993, this Group set up Manappuram Benefit Fund Limited, a NIDHI Company to
provide specialized services to its members. Today, it is one of the topmost Nidhi
Companies in South India.

Manappuram Chits (I) Limited, a chit fund company registered under the Chit Fund Act
1982, a central legislation enacted by Government of India, was set up in the year 2000,
where most of the Chit Fund Companies in Kerala found it difficult to conform to the
discipline of this central legislation.

As a part of its diversification, the company also started Forex business upon the Reserve
Bank of India granting it a full-fledged money changers licence in the year 2002.

The company also commenced in a big way for instant money transfer facility, in
collaboration with Xpress Money, Coinstar, Instant Cash, Zoha, Ezremit and

MoneyGram. Instant Money

Transfers being the fastest method of inward and outward remittance of funds will be
useful to NRIs for remitting money to or from their relatives in India, who will be able to
receive the proceeds within a few minutes of remittance.

Whilst the company`s core activity continues to be Gold Loan, it has entered very
aggressively into fee-based activities especially in the wake of opening up of insurance
sector allowing private participation. In November 2006, company was awarded Broker`s
License by IRDA to sell insurance. As an Insurance broker, the company is able to offer
its customers a wide variety of products tailor-made to their requirements.

30
Thus the company has emerged as a one-stop financial Super Market. In order to look
after the fee-based activities exclusively, the Group has promoted a separate company
called Manappuram Insurance Brokers Private Limited (MAIBRO) as wholly owned
subsidiary of MAGFIL, the flagship company of the Group.

The Group has received ISO 9001-2000 certification in the year 1993 as a hallmark of its
having attained the International Quality Standards.

As a premier organization, the company has derived its strength from the dedication of
its highly motivated staff. Being an organization with a vision, the company has
recognized that the best of investments are investment in people and has accordingly
assigned considerable importance in the matter of training its staff. It is a matter of
considerable pride that the company has a full-fledge training establishment with very
few parallels in the NBFC sector, where in-house training courses are conducted almost
continuously in a very professional manner for upgradation of the skills and for
enhancement of functional efficiency so as to make the organization a "Customers`
Delight". Every employee has been given very clear idea of his role which enables them
to function more efficiently and produce better results.

The Group functions with a tremendous sense of social responsibility. The setting of
Manappuram Institute of Management (MAINMA) in September, 2005 to be groomed
into a management

institution of all India repute was dictated by this social responsibility.

The Company has signed an agreement with M/s. Hudson Equity Holdings Limited and
Sequoia Capital India Investment Holdings for preferential issue of compulsorily
convertible preferential shares of Rs.100/- each for Rs. 234 million each, aggregating to
Rs. 468 million to be converted into equity shares later. When converted into equity, both
these investment companies together will be holding Rs. 4,667,284 (Rupees Four Million,
Six Hundred and Sixty Seven Thousand, Two Hundred and Eighty Four) equity shares of
Rs. 10/- each at a price of Rs. 100.272 constituting a maximum of 29.79% of paid- up
equity share capital of the company. These funds have been raised for expanding our
business in gold loan and vehicle loan by opening of more branches across the country.

31
In November 2008, the company has also received capital infusion of Rs. 1 Billion and
80 Million from UK and the US-based equity firms, with participation from its promoters.
The UK-based Ashmore Alchemy, a joint venture between Ashmore and Alchemy has
invested Rs. 320 million through its Mauritius-based investment vehicle, AA
Development Capital India Fund, LLC.

Considering the increase in the size and volume of operations of the company, we have
appointed Earnest & Young, an internationally reputed firm as our auditors.

The company`s vision in the short term is to emerge as a strong national player, with a
wide Branch network across the entire country to serve its customers as a one-stop
financial super market that makes our customers` life easy

32
 BRANCH NETWORK

TOTAL BRANCHES IN INDIA – 1988

Kerala(434) Pondicherry(7) Tamilnadu(370)

Rajasthan(47) West bengal(65) Gujrat(61)

Karnataka(350) Goa(2) Maharashtra(96)

Punjab(19) Delhi(45) Haryana(24)

Goa(2) Orissa (34) Chattisgarh(15)

33
 RESEARCH METHODOLOGY

As there are a large number of customers dealing with Manappuram Finance, the study
was conducted to know the customer service provided by manappuram.

This in turn enables the company to enhance its stringent competitiveness in the financial
market The study is made to get knowledge about the various expectations of customers.
The need of the study is to know about the different facilities and promotions given to
customers. Also, to create more awareness about the various facilities those are available
for the customers.

OBJECTIVES OF STUDY

• To study customer satisfaction towards Manappuram Finance

• To find out the customers preference towards various schemes.

• To find out the various customer service provided by Manappuram Finance.

• To find out the customer expectation from Manappuram Finance.

• To find out the customer loyalty over other financial institution.

SCOPE OF THE STUDY

• The project is focused on the selected customers The data collection is carried
out for a period of 40 days.

• The project focuses the quality of services.

• The study enables to know the expectation of the customers.

34
 • The scope of the study is to know the present situation in the company where the
study is made.
• The study also covers almost every customer and the data is collected from all
through questionnaire.

• To find the various facilities provided by the company.

DESCRIPTIVE RESEARCH

Descriptive research includes surveys, fact-findings enquiries of different kinds. The

major purpose of this research is description of the state of affairs, as it exists at present.
The main character of this method is that the researcher has no control over the variables;
he can only report what has happened or what is happening. It also includes attempts by
researchers to discover causes even when they cannot control the variables. The method
of research utilized in descriptive research is survey methods of all kinds including
comparative and co relational methods.

35
 DATA COLLECTION

DATA COLLECTION METHOD

TYPES OF DATA:

In my project I have classified the data into two specific types:

PRIMARY DATA:

As it is known that primary data are collected a fresh and for the first time, and thus
happen to be original in character. So, in order to collect this type of data various methods
are being used, such

SECONDARY DATA:

Here the researcher collected secondary data from the company profile, industry profile
and official web sites.

RESEARCH INSTRUMENT:

Research instrument used for data collecting is questionnaire and interview schedule

QUESTIONNAIRE:

The questionnaire is prepared in a well-structured and non disguised form so that it is

easily understandable and answerable by everyone. The type of questions include in the
questionnaire are open-ended questions, multiple choice questions and dichotomous
questions.

INTERVIEW SCHEDULE

The interview method of collecting data involves presentation of oral-verbal stimuli and
reply in terms of oral-verbal responses. Then the responses are filled up in the
questionnaire, for further analysis.

36
STASTICAL TOOLS USED FOR ANALYSIS:

The researcher carries out analysis through various statistical tools. The statistical analysis
is useful for drawing inference from the collected information.

• Simple percentage analysis.

• Cross - Tabulation

• Chi square .

SAMPLE DESIGN

The sample technique adopted is random sampling method. Since sample is going to be
chosen from different areas so it is geographical sampling which is predefined so as to
get maximum information, which rare true and reliable without biasness.

37
 SAMPLING METHOD

SAMPLE SIZE:

I have used sampling method for survey purpose. The sample size for questionnaire is
20.

PERIOD OF STUDY

This study is carried out for a period of 40 days. It commenced on 14th Feb 2011 and
completed on 5th April 2010.

FIELD AREA:

This research study work is carried out in various customers of Manappuram.

RESEARCH INSTRUMENT:

The research instrument for the purpose was questionnaire and some personnel
interviews of some customers.

38
 LITERATURE REVIEW

TITLE: STUDY ON GOLD AS A SAFER INVESTMENT ALTERNATIVE AMONG

SMALL AND MEDIUM INVESTORS

AUTHOR: Shubha C.V

REVIEW: The paper accuracy explains how gold investments are safer than other
alternaive vestments like stock and government bonds in present economic situation. The
research paper covers the facts influencing the small and medium investors on their
decision invest in sold and different types of gold investments available to investors. The
researcher has explained the pattern of gold investment during boom economic period bat
the researcher has not covered the impact on gold during economic recession.

TITLE: STUDY OF CONSUMER'S PREFERENCE TOWARDS GOLD AS AN

INVESTMENT

AUTHOR: Dr. R Rupa and Dr. P. Salini

REVIEW: This paper specifies why gold is considered as a safer investment by the
investors due to its profitability and liquidity. They also put light upon gold as a
commodity as well as an investment siting the advantages of investing in gold. They also
mention about the gold price movement in a volatile market. They have concluded in their
research that now a days customers are more aware of the gold as an investment avenue.
However, they haven't explained the purchasing pattern of the customers. For eg.
Customers may purchase fancy gold necklace or bracelet as an investment, thinking that
they will sell the gold in future times when the prices rise but while purchasing they forget
about the making charges and other charges attached to that jewellery.

TITLE: GOLD AS AN INVESTMENT AVENUE

AUTHOR: Gaurav Bhagra and Dr. Shubha Khinvasara

REVIEW: The paper consists of various importantaspects of buying behaviour of an

investor.

39
They classifies the investors according to their profession, gender, risk return objective
and educational qualification which affects their investment decisions. The research paper
tells us about the possible dependency and independence between demographics on choice
of gold as a primary investment avenue. The financial literacy of an investor decides his
buying behaviour. However, he has not explained any kind of investment avenues which
are available for individual investors in the market.

TILE: A STUDY ON VARIOUS FORMS OF INVESTMENT A COLD AUTHOR: B.

SUNDARAVADHANI, P. SATHYA

REVIEW: This paper studies various forms investments in gold available to the people it
sules the vartious factors to be considered while investing in gold such as fomns of buying.
gold, current income, capial appreciation, risk, liquidiy, tax treatent & convenience This
esearch studies the options available to investors in gold investment, the awareness among
the investors about the gold investment, the advantages and disadvantages of investing in
these forms of gold investment & wishes to create awareness among investors for investing
in these avestment avenues. However, the study fails to show qualitative data and provides
a briefidea ofhow many people invest in what all investment avenues. This study
doesn'texplain the myth present in individual's mind when the buy gold.

TITLE: AN ANALYTICAL STUDY ON PERCEPTION OF INVESTORS TOWARDS

GOLD AS AN INVESTMENT OPTION

AUTHOR: Dr. Jyoti H Lahoti

REVIEW: In this research paper the study aims at collecting investor's response towards
investment in gold. Pros and cons of investing gold have been elicited. This study tries to
ensure that gold becomes tradable and generates revenue rather than lying idle as a dead
investment.

This study also explains various gold investment avenues. This research studies the various
factors that influence the choice of investment in gold by an individual. This study also
focuses on why an individual does not invest in gold. This research also tries to know
about the risk opinion in physical gold and other gold investment Options. However, even
though the research paper mainly focuses on the behavioural pattern of an investor when

40
Investing in gold it is unable to explain the importance of investing in gold as an
investment.
TITLE: A STUDY ON VARIOUS FORMS OF GOLD INVESTMENT.

AUTHOR: Dr. Nishad Nawaz and Sudhindra V R

REVIEW: This paper studies different types of gold investment available to individuals.
This research studies the various factors to be considered when investing in gold such as
gold purchasing forms, current income, capital appreciation, risk, liquidity, tax treatment
& convenience. This work examines the options open to investors in gold investment,
investors' awareness of the gold investment, the advantages and drawbacks of investing in
these types of sOld investment & wishes to increase investors' awareness of investing in
these investmentt, the advantages and disadvantages of investing in these forms of gold
investment & wishes to create awareness among investors for investing in these avestment
avenues. However, the study fails to show qualitative data and provides a briefidea ofhow
many people invest in what all investment avenues. This study doesn'texplain the myth
present in individual's mind when the buy gold.

TITLE: AN ANALYTICAL STUDY ON PERCEPTION OF INVESTORS TOWARDS

GOLD AS AN INVESTMENT OPTION

AUTHOR: Dr. Jyoti H Lahoti

REVIEW: In this research paper the study aims at collecting investor's response towards
investment in gold. Pros and cons of investing gold have been elicited. This study tries to
ensure that gold becomes tradable and generates revenue rather than lying idle as a dead
investment.

This study also explains various gold investment avenues. This research studies the various
factors that influence the choice of investment in gold by an individual. This study also
focuses on why an individual does not invest in gold. This research also tries to know
about the risk opinion in physical gold and other gold investment Options. However, even
though the research paper mainly focuses on the behavioural pattern of an investor when
investing in gold it is unable to explain the importance of investing in gold as an
investment.

41
TITLE: A STUDY ON VARIOUS FORMS OF GOLD INVESTMENT.

AUTHOR: Dr. Nishad Nawaz and Sudhindra V R

REVIEW: This paper studies different types of gold investment available to individuals.
This research studies the various factors to be considered when investing in gold such as
gold purchasing forms, current income, capital appreciation, risk, liquidity, tax treatment
& convenience. This work examines the options open to investors in gold investment,
investors' awareness of the gold investment, the advantages and drawbacks of investing in
these types of sOld investment & wishes to increase investors' awareness of investing in
these investment venues: The research, however, does not show qualitative data and gives
a briefiden of how many people invest in what all the investment avenues.

TITLE: INVESTMENT IN GOLD - AN EMPIRICAL STUDY OF THE GOLD

RETURN FROM 90S TO 21ST CENTURY

AUTHOR: Lujia Wang

REVIEW: In this research paper the study aims to identify the most relevant factors that
contribute to the turbulence of the price of gold, and the other is to determine how much a
Danish investor can add with a gold investment to his portfolio. This study also sheds light
upon the 2008 economic recession. This paper is done in the interest of how gold should
be vested, both in general and in the underlying circumstances. This research is done to
identify he relevant factors that affect the price of gold, and then construct an optimal
portfolio of the Gnancial assets, including gold investments, stocks and bonds before and
during the financial crisis. This research has covered all the important factors in gold
investment except the psychology of an individual when he or she invest in gold.

It also fails to shed light upon the myth of individual in buying the gold Jewellery.

TITLE: MODELING CHOICE OF COMMON INVESTORS OF INDIA IN GOLD AS

AN INVESTMENT OPTION

42
AUTHOR: Rashank Jain

REVIEW: This research paper focuses on behavioural finance in relation to the gold
investment by the individuals. This study explains how an investor can diversify by
investing in different gold investment avenues available. It also sheds light upon how the
gold be used as savings and as investment. In this research paper the researcher also
explains the importance / significance of gold in Indian culture. The author also explains
the different types of choices that an individual takes such as: Investor's choice &
Behavioural Choice of a common investor. The reason for increase in gold prices are also
explained in this research paper which will further be analysed in my research paper.

TITLE: GOLD PRICE ANALYSIS: XAU/USD STRUGGLES FOR A FIRM

DIRECTION ABOVE $1,800

SOURCE:

FXSTREET (https://www.fxstreet.com/news/gold-price-analysis-xau- usdstruggles-for-

afirm-direction-above-1-800-202007192213) REVIEW: Highlights of the news -

. Gold prices hold the range from $1,790 to $1,818.17.

Pandemic worries favour the bulls, anticipated stimulus, and immediate upside
tame of equity returns.

• Fighting EU members over the assistance package, the US-China appears to hate one
another. .

A light calendar holds traders looking for fresh impulse risk catalysts.
This article speaks about the worries of the coronavirus (COVID-19) and the SinoAmerican
asle contribute to the reluctance of the members of the European Union (EU) to decide on
the much anticipated stimulus. On the opposite, both equity return and the high price level
over he couse of many years hold traders wary. While risk catalysts such as virus and tussle
herveen the US and China are joining the broad weakness of the US dollar in favour of the
cold buyers, the surge of the bullion to the multi-year high seems to fade off-late the upside
momentum. The explanation could be given between $1,790 and the multi-year high of
around S1,818 in the metal's latest results. Although the dynamics remain supportive of the
bulls, bears re cheering for entries in the run-up in global share prices.

43
TITLE: GOLD HAS SURGED DUE TO THE PANDEMIC - AND IT COULD KEEP

GOING.

Here's what to know about investing now.

SOURCE: CNBC (https://www.cnbc.com/amp/2020/07/20/investing-how-to-invest-

ingoldisnow-a-good-time-to-buy-gold.html)
REVIEW: Highlights

•While global equity markets start to tick into unchartered territories, another asset class
has caught the attention of gold investors.

• Earlier this month, gold prices inched higher to trade more than $1,800 an ounce,
crossing a significant psychological threshold not achieved since 2011.

• Now, as speculation regarding coronavirus continues to drive up the precious metal,

some analysts say that gold could reach record highs.

Which left many people asking if the time to invest is right now. CNBC Make It's been
listening to experts to find out their suggestions.

This article speaks about why the price of gold is rallying, the forecasting of the gold
price is done in this article that it will increase more and more, what will be the correct
time to invest in gold, in what type of gold to invest such as Physical Gold, Gold
ETFs/ETCs, Gold Relates Stocks and Gold Backed Crypto currencies.

TITLE: GOLD IMPORTS LIKELY TO FALL TO 17 YEARS LOW.

SOURCE: Rediff News (https://www.rediff.com/business/report/gold-import-may-fall-to-

17year= low-as-demand-shrinks/20200721.htm)
REVIEW: This article explains how due to the COVID 19 Pandemic now a davs many
people Those interested in investing in gold have shifted to instruments, such as sovereien
gold bonds and gold ETFs. In reality, several others are selling or using gold as leverage to
create liquidity in the short term. It states that Gold imports are projected to fall 50 per cent
in the calendar year 2020 (CY20) to nearly 17 years low due to lacklustre demand since
the outbreak of Covid19 in March and record-high prices. The pandemic and shutdown
have seriously affected the jewelry industry and modified market equations - those
44
Involved in gold investment have switched to instruments such as sovereign gold bonds
and gold ETFs. In reality, several others are selling or using gold as leverage to create
liquidity in the short term. Despite the deterioration of demand, yellow metal is so far the
best-performing commodity in CY20.

India had imported 647 tonnes of gold in CY19, according to data from the World Gold
Council. The import was 78.4 tons in the March quarter of CY20; it was just 11 tonnes in
the June quarter. In July, too, the import scene is not encouraging and demand is expected
to drop to a third this year. As for the gold import bill, it dropped to $5.86 billion in the
first half of CY20 - a point not seen since 2005. The import was worth $7.7 trillion in the
first half of 2005

45
 DATA ANALYSIS AND INTERPRETATION

1. AMOUNT BORROW FROM MANAPURAM FINANCE

Interference:

The above table shows that more than 34 % of the customers borrow money from 1 to 2
lakhs, 33% of the customers borrow money 2 to 4 lakhs, 16% of the customers borrows
less than a lakh.

46
2. In which purpose peoples prefer Manappuram gold loan ?
o Business purpose
o Emergency purpose o
Family function
o Any other(Specify)

Column1

business purpose emergency purpose family function other reason

Purposes of gold loan Percentage of peoples

Business purpose 40

Emergency purpose 30

Family function purpose 20

Other purposes 10

Interpretation: in the above pie chart it has been analyzed the purpose of gold loan.
In the above customers taking gold loan for business 40%,emergency 30% family function
purpose 20% and 10% for other reason

47
3 Satisfaction of customers about gold loan in the Manappuram gold loan?
o Yes
o No

percentage

yes no

Satisfaction of customers

Customer satisfaction Percentage

Yes 80

No 20

Interpretation: in the above pie chart 80% peoples satisfy with gold loan in
manappuram gold loan and 20% peoples not satisfy with gold loan in
manappuram finance.

48
4. Why customers prefer Manappuram gold loan
o Low rate of interest o
Attractive scheme o
Quick service
o Any other(Specify)

percentage

low rate of intrest attractive scheme quick service any other service

Interpretation: in the above pie chart customers prefer 40% customers, attractive scheme
20% , quick service 25% and 5% customers prefer gold loan in Manappuram gold loan.

Customer preference Percentage

about gold loan

Low rate of intrest 40

Attractive scheme 20

Quick service 25

Any other service 05

49
5. which interest scheme customers prefer most ?

o Day interest o
Month interest

percentage

Interest scheme Percentage

Daily interest 60

Monthly interest 30

quarterly 10

Interpretation: in the above pie chart customers select the 60% daily interest, 30% monthly
interest and 10% quarterly interest scheme.

50
6.Opinion about the customer service in Manappuram gold loan?

o Excellent o
Good o
Average
o Poor

percentage

excellent good average poor

Opinion of customers Percentage

excellent 45

good 30

average 20

poor 05

Interpretation : In the above pie chart opinion of customers about gold loan they are follow
,45%customers rated excellence 30% customers rated good ,20% average and 5% poor.

51
7.How many month customer deal with Manappuram gold loan?
o 0 - 3 month
o 3 - 6 months
o 6 -12 months
o Above 1 year

percentage

0 to 3 month 3 to 6 month 6 to 12 month

Month deal in Percentage

manappuram

0 to 3 month 50

3 to 6 month 25

6 to 1 year 20

More than 1 year 05

Interpretation: in the above pie chart 50% customers deal with 0 to 3 month, 25%
customers deal 3 to 6 month, 6 to 1 year customers deal with 20% and 05% customers deal
with more than one year.

52
8.Opinion of staffs in Manappuram gold loan?

o Yes o No

Sales

yes no

Opinion of staff Percentage

Yes 90

No 10

Interpretation : In the above pie chart Manappuram gold loan staff give review about gold
loan. 90% staff says yes and 10% staff are not satisfy in Manappuram gold loan.

53
9. Customers review about process of gold loan in Manappuram gold loan?

o Yes o No

Sales

yes no

Review of customer Percentage

Yes (positive) 80

No (negative) 20

Interpretation : in the above pie chart customer review are follows, 80% customer
positive and 20% customers negative review. this is review of customers in Manappuram
gold loan.

54
10. Opinion about the Amount given to customers against gold?

o High o Good o Reasonable

percentage

high good reasonable

Opinion of customers Percentage

High 50

Good 25

reasonable 25

Interpretation : in the above pie chart shows opinion of gold loan customers, 50%
customers are high value , 25% are good and 25 % customers are reasonable with the
manappuram gold loan.

55
 FINDINGS

• 40 % of customers dealing with Manappuram for more than 6 months.

• 34% of customers borrow money more than 4 lakhs.

• 36% of customers appreciate Manappuram marketing stratergy.

• 44% of customers prefer Manappuram for attractive scheme.

• More than 43% the customers satisfy with gold loan amount.

• More than 42% the customers satisfy with rate of interest.

• 32% customers got money for business purpose.

• More than 46% the customers satisfy with customer service.

• 32% of customers prefer day interest scheme.

• 40% of customer require interest reminder sums.

• 40% of customers prefer Manappuram for low rate of interest.

• More than 43% the customers satisfy with Manappuram finance.

• More than 44% the customers satisfy with hospitality.

• More than 41% the customers satisfy with infrastructure More than 45% the

customers satisfy with scheme explanation.

• More than 40% the customers satisfy with speed of transaction.

• The friendly relation helps much better for the company to flourish.

• It is found that the rate of interest is somewhat higher for the gold loan but when
considering about the customer requirement, the price can be paid.

• From the observation, it is found that the complaints are about the month interest
scheme .

56
 SUGGESTIONS

Most of the customers report rate of interest after reset period is below the satisfactory level.

Most of the customers are need of more schemes.

They are well satisfied with the rate of interest and amount given for gold.

The company should have an eye on the credit period given for sale of gold coin, because some
are well satisfied and some doesn’t agree with it.

Since loan amount is being the main factor for the customers to have relationship with the
company, the company should not reduce its amount at any Cost.

It is advisable for the company to have various promotional activities, to attract the
customers. It is because all the customers need not to like the same kind of promotional
activities.

It will be better to have a feedback from the customers at regular intervals, and to minimize
the communication gap between the customer and company people

The company should have an ear to the customer’s expectations.

The company people should clearly explain the interest scheme to customer to avoid customers
misunderstanding.

57
 CONCLUSION:

My study found that, the dealers are somewhat satisfied with the Manappuram finance
Company but some customers are not satisfied by the company neither in the way of interest
rate nor by various interest scheme of Manappuram finance

About the Manappuram finance Company I found that the company having a good position
in the market in terms of various schemes but lacking badly in terms of its customer’s
misunderstanding.

My study also found that there are various factor influencing customer and the most
influencing factor is low rate of interest and various schemes and other factors play a
secondary role in gold loan.

58
 BIBLIOGRAPHY

Source : Dion Global Solutions Limited

Websites: -- www.manappuram.com
www.ASK.com www.wikkipedia.com

https://en.wikipedia.org/wiki/Digital_gold_currency

https://www.fxstreet.com/news/gold-price-analysis-xau-usds-range-trade-intactaround-
1725powell-eyed-202006190211

https://www.cnbc.com/2020/06/23/options-traders-rushing-into-gold-miners-
ascoronaviruscases-surge.html https://groww.in/p/gold-investment/
https://www.gold.org/what-we-do/gold-investment/how-buy-gold

https://www.financialexpress.com/money/gold-investment-in-india-is-this-the-righttime-to-
buyor-invest-in-gold/2012007/ https://cleartax.in/s/gold-investment
https://www.investopedia.com/ask/answers/06/investingingold.asp
https://economictimes.indiatimes.com/wealth/invest/different-ways-to-buy-andinvest-in
gold/articleshow/64568785.cms https://www.mygoldguide.in/what-to-buy
https://www.ibef.org/industry/gems-jewellery-india.aspx

https://www.ibef.org/industry/gems-and-jewellery-presentation https://kristal.ai/blog/indiaetf-
investing-market-and

https://www.fxstreet.com/news/gold-price-analysis-xau-usd-struggles-for-a-firmdirection-
above-1-800-202007192213

59
 ANNEXURE

1. How much of amount you borrow from Manappuram Finance?

o Less than 1lakhs

o 2 lakhs

o 4 lakhs

o Above 6 lakhs

2.In which purpose peoples prefer Manappuram gold loan ?

o Business purpose
o Emergency purpose
o Family function
o Anyother(Specify)

3 . Satisfaction of customers about gold loan in the Manappuram gold loan?

o Yes
o No

4. Why customers prefer Manappuram gold loan

o Low rate of interest

o Attractive scheme

o Quick service

o Anyother(Specify)

5. which interest scheme customers prefer most ?

o Day interest
o Month interest

60
6. Opinion about the customer service in Manappuram gold loan?

o Excellent

o Good

o Average

o poor

7. How many month customer deal with Manappuram gold loan?

o 0 - 3 month
o 3 - 6 months
o 6 -12 months
o Above 1 year

8. Opinion of staffs in manappuram gold loan?

o Yes
o No

9. Customers review about process of gold loan in manappuram gold loan ?

o Yes
o No

10. Opinion about the Amount given to customers against gold?

o High

o Good

o Reasonable

61