Personal Loans

A STUDY ON CUSTOMER SATISFACTION REGARDING TO PERSONAL LOAN
IN MANAPPURAM FINANCE LIMITED
CHAPTER - I
INTRODUCTION
BHEEMI REDDY INSTITUTE OF MANAGEMENT OF SCIENCE

Personal loans are a big deal in the world of money. They help people pay for things they
need, like school, a car, or unexpected expenses. Banks and other money places play a big
role in deciding who can get a loan and how much they can borrow.
This study looks closely at personal loans, focusing on what Manappuram finance does. They
are known for coming up with new money ideas and are important in how personal loans
work. They help set the rules for loans and what people expect when they borrow money.
The goals of this study are to figure out why more people are getting personal loans, see if
manappuram finance's loans are good, and understand how people's money habits are
changing. By looking at a lot of information, like what customers say and what's happening
in the money world, this study wants to give a full picture of personal loans and what works
best for manappuram finance.
As we dig into this topic, we hope to learn things that can help both students studying money
and people who need loans. This study wants to show what's going on with personal loans
and how to make things better for everyone involved.
What is personal loan?
A personal loan is like borrowing money from a bank without having to give them anything
valuable in return. You can use this money for anything you want, like paying for a wedding,
going on vacation, or buying new stuff. You can borrow anywhere from Rs. 50,000 to Rs. 20
lakhs and you have 1 to 5 years to pay it back. It's a great way to get some extra cash when
you need it!
Why Personal Loans are Awesome!
1. No need for security: With a Personal Loan, you don't have to put up any of your
belongings as collateral. Unlike other loans where you might have to use your house or car as
security, a Personal Loan is all about trust.
2. Easy paperwork: Getting a Personal Loan is a breeze! You won't have to deal with tons of
paperwork or wait forever to get approved. It's quick and simple.
3. Use the money however you want: When you get a Personal Loan, you don't have to tell
the bank what you're going to spend the money on. They just want to make sure you can pay
it back on time. They'll check your income and job to make sure you're good for it.

4. Get a big loan: If you need a lot of money, a Personal Loan can help. You can borrow
anywhere from Rs. 50,000 to Rs. 20 lakhs to cover your big expenses. It's a great way to get
the cash you need without any hassle.
When looking for a personal loan, there are a few things to keep in mind. First, compare
interest rates from different banks. These rates can vary based on your job, income, and credit
history. Try to find a loan with the lowest interest rate possible. Also, check for other charges
like processing fees and pre-payment penalties, as these can add up quickly.
Next, evaluate the total cost of the loan by considering both the interest rate and additional
charges. Compare offers from different banks while keeping the loan term the same. This will
help you find the best deal.
EMIs, or equated monthly instalments, are the amount you pay each month towards your
loan. The loan tenure is the amount of time you have to pay back the loan, which can range
from 1 to 5 years. A longer tenure means lower monthly payments but more interest overall,
while a shorter tenure means higher payments but less interest. Compare loan offers with the
same tenure to find the best option.
Before applying for a loan, make sure you meet the eligibility criteria set by the bank. By
doing this, you can figure out which one is the coolest and get the most bang for your buck..
Finally, consider the turnaround time for your loan application. Some banks process
applications faster than others, which can be important if you need money quickly.
When you apply for a personal loan, there are some charges you need to be aware of. First,
there's a processing fee, which is a small percentage of the loan amount that the bank charges
to process your application. Then, there's a prepayment fee if you pay off your loan early,
which is a percentage of the outstanding amount. If you're late on your monthly payments,
you'll also be charged a late penalty. And if a check you give for payment bounces, there's a
fee for that too.
DOCUMENTS REQUIRED FOR PERSONAL LOAN
To apply for a personal loan, you'll need to provide some documents. These include proof of
identity,
1.bank statements for the past few months,

2.proof of residence,
3.your salary slip,
4. documents from any guarantors you have.
If you're self-employed, you'll also need to provide additional documents like balance sheets
and profit & loss accounts. The good news is that the process for getting a personal loan is
usually pretty quick compared to other types of loans.

CHAPTER - II
REVIEW OF LITERATURE

Trevor Richards (1996) talks about something called the conversion model. It's like a tool that
companies use to figure out how loyal customers are to their brand. He says that there's a big
difference between customers who are really committed to a brand and those who aren't, and
it's not just about how good the service is. This makes it tricky to predict if customers will
stick around just based on how happy they are with the service. There are other things that
make people stay loyal to a brand. Richards also shares a couple of examples to show how
this works.
RESEARCH METHODOLOGY
Research methods are like a roadmap for solving a research problem. It's all about the
different ways and techniques you can use to do your research. This project falls under the
category of "Marketing Research", which is all about designing, collecting, analysing, and
reporting data to find solutions to marketing problems.
Sample size - This just means how many things you're looking at to get information. For this
study, we're looking at 100 items.
Data Collection - We gathered information from two sources: Primary Data and Secondary
Data.
Primary Data - This is data that we collected ourselves for the first time. We did this by
asking people questions in a survey
Secondary Data - This is data that someone else already collected and analysed. We found
this kind of data in magazines, websites, newspapers, and journals."

CHAPTER - III
INDUSTRY PROFILE & COMPANY PROFILE
For over 61 years, the Manappuram Group has been a strong and trustworthy company led by
Mr. V.P. Nandakumar. With 9 companies and over 1,950 branches in 19 states in India, we
have a total business worth over Rs. 70 billion. We have a team of over 14,500 employees
and more than 5 million customers. We are proud to be India's largest listed and highest
credit-rated gold loan company.
We offer lots of ways to help you with your money so you can have an easier life.
Back in 1949, a guy named Mr. V.C. Padmanabhan started a company called Valapad. He was
a real go-getter and had big dreams. At first, the company just lent out money to people in a
small way. But Mr. Padmanabhan was super honest and smart, so the company grew quickly.
When he passed away in 1986, his son, Mr. V.P. Nandakumar, took over. He used to work at a
bank, but now he's the big boss at Valapad. Mr. Nandakumar is really good at business and

has helped the company grow even more. He's all about using technology to make cool stuff
for customers. Valapad is doing great thanks to him!
Back in 1992, the big boss of the Group, Manappuram General Finance and Leasing Limited
(MAGFIL), was born. This happened right after the Government of India made some changes
to the economy. They wanted to help out small and medium businesses by using leasing as a
way to grow. MAGFIL quickly became a leader in this field and achieved a lot of cool things
in a short amount of time.
 The first NBFC from Kerala just got a Certificate of Registration from RBI! And you
know why? Because they are really good at making sure all their depositors get their
money back in full. How cool is that
 MAGFIL, a company from Kerala, just got a super high credit rating of MA+ from
ICRA, which is like a big stamp of approval from the RBI. This means they're really
good at paying back the money they owe on time. And get this - they've grown super-
fast to become one of the top NBFCs in South India in just a short amount of time.
How cool is that
 The FIRST NBFC from Kerala just got a super cool rating for its Secured Non-
convertible Redeemable Debenture issue worth Rs. 50 million. How awesome is that
 First NBFC from Kerala to go for public issue
 First NBFC from Kerala to issue bonus shares at the ratio 1:1.
 First NBFC from Kerala to receive Foreign Direct Investment (FDI).
 first NBFC from Kerala to receive AD-II (authorised dealer – II) license from RBI
 First NBFC from Kerala to obtain broker’s license from IRDA (insurance regulatory
& development authority)
 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 and Long-term rating of LA+ for its working
capital limit
This company's stocks are available for trading on the Mumbai, Chennai, and Cochin Stock
Exchanges. They are really popular on the Bombay Stock Exchange (BSE) and are being
bought and sold at prices way higher than their face value.

Back in 1993, this awesome Group started Manappuram Benefit Fund Limited, a special
company that helps out its members. And guess what? Now it's one of the coolest Nidhi
Companies in South India!
Back in 2000, Manappuram Chits (I) Limited was created as a chit fund company in Kerala.
It was made to follow the Chit Fund Act of 1982, a law made by the Indian government. This
law was hard for a lot of chit fund companies in Kerala to follow.
In 2002, the company got a special license from the Reserve Bank of India to start a Forex
business. This was part of their plan to try out new things and grow their company in
different ways.
Our company is now offering a super-fast way to send money instantly! We've teamed up
with Xpress Money, Constar, Instant Cash, Zoha, Eremite, and Money Gram to make this
happen. Instant Money Transfers are the quickest way to send money to or from India. This is
great news for NRIs who want to send money to their family back home. With this service,
your relatives in India can receive the money within just a few minutes of you sending it.
How cool is that?
The company's main focus is giving out Gold Loans, but they've also started doing other
things to make money, like selling insurance. In 2006, they got a license to sell insurance
from IRDA. Now, they can offer all kinds of insurance products to their customers that fit
their needs.
So basically, this company is like a financial superstore where you can get everything you
need in one place. They even have a separate company just for fee-based stuff called
Manappuram Insurance Brokers Private Limited (MAIBRO). It's owned by MAGFIL, which
is like the main company in the group.
Back in 1993, The Group got this cool ISO 9001-2000 certification. It's like a badge of
honour showing that they meet super high-quality standards all around the world.
Our company is awesome because our team is super dedicated and motivated. We believe
that investing in our people is the best investment we can make. That's why we have a top-
notch training program that's one of the best in our industry. We offer in-house training
courses all the time to help our staff improve their skills and be more efficient at their jobs.
We want to make sure our customers are always happy, so we make sure our employees
know exactly what they need to do to make that happen. It's pretty cool to be a part of a team
that's always striving to do their best

The Group really cares about helping others. They decided to start the Manappuram Institute
of Management (MAINMA) in September 2005 to help train future leaders in India. They
wanted to make sure that the school would be known all over the country for its great
reputation.
Guess what? Our Company just made a super cool deal with M/s. Hudson Equity Holdings
Limited and Sequoia Capital India Investment Holdings! They're giving us a bunch of money
to help us grow our business. Basically, they're buying special shares from us for Rs.100
each, totalling Rs. 468 million. Later on, these shares will turn into regular shares of our
company. Once that happens, these investment companies will own a big chunk of our
company - almost 30%! We're planning to use this money to open more branches all over the
country and expand our business in gold and vehicle loans. How awesome is that
In November 2008, the company got a big boost of money - Rs. 1 billion and 80 million -
from some fancy firms in the UK and the US. The UK company Ashmore Alchemy, which is
a mix of Ashmore and Alchemy, put in Rs. 320 million through their investment group in
Mauritius, called AA Development Capital India Fund, LLC. It's like the company got a big
piggy bank filled with lots of cash!
Since our company has been growing bigger and doing more stuff, we decided to hire Earnest
& Young, a really famous company, to be our auditors.
The company wants to become a big player in the country by opening lots of branches
everywhere. They want to be like a financial superstore that helps customers with all their
money needs. They want to make life easier for their customers.

INDUSTRY PROFILE
A non-banking financial institution (NBFI) or non-bank financial company (NBFC) is a type

of financial institution that isn't considered a traditional bank. This means they don't have all
the same rules and regulations to follow as regular banks. NBFCs help with different
financial services like investing, managing risks, saving money, and brokering deals. Some
examples of NBFCs are hedge funds, insurance companies, pawn shops, check cashing
places, and payday loan providers. Alan Greenspan, a famous economist, says that NBFCs
play an important role in helping the economy by providing different options for turning
savings into investments, which can be helpful if the regular banking system isn't working
well.
Non-bank financial institutions are a bit confusing because the term can mean different things
depending on where you are. In English-speaking countries, a bank is seen as any kind of
financial institution. But in other countries, especially developing ones, a bank is only
considered to be a place where you can deposit money. This difference in understanding
comes from language and cultural differences. Developing countries learned about banking
systems from the West later on, so they adopted the terms "bank" and "non-bank" without
realizing that "non-bank" actually means a financial institution that doesn't take deposits. This
is why non-bank financial institutions are not always regulated like traditional banks in some
countries.
ROLE IN FINANCIAL SYSTEM
Non-bank financial institutions (NBFIs) help out banks by giving them a way to give extra
money to people and companies who need it. They also make things more competitive in the
financial world. Banks might offer a bunch of services all together, but NBFIs break them up
and customize them for each person or company. Some NBFIs focus on one area and become

experts in it. By breaking things down, focusing on certain clients, and becoming experts,
NBFIs make the financial world more competitive.
Non-bank financial companies (NBFCs) are like banks, but not exactly. They offer services
like loans, credit, education funding, retirement planning, and more. They also help manage
money by investing in stocks, giving advice on mergers, and supporting property
investments. These companies have been growing in number because more businesses are
getting into lending. However, they can't take deposits from regular people like banks can.
Instead, they have to find other ways to get money, like issuing debt.
NBFCs don't offer check books or regular savings or checking accounts. They only deal with
fixed deposits or time deposits.
GROWTH
Research shows that when a country's money stuff is doing well, the whole country does
better. Basically, if a country has a system where people can invest in stuff like stocks and
bonds, it helps the economy grow. This is because there are better connections between banks
and other financial companies.
STABILITY
Having different types of financial institutions, like non-bank ones, can help keep the
economy safe when unexpected money problems come up. These non-bank places give us
more options for turning our savings into investments, which can help us bounce back
quickly if our main way of handling money doesn't work out.
When there aren't good rules in place for how money is handled, companies that aren't banks
can make the financial system even more unstable.
Some financial institutions aren't watched as closely as others, which could cause some big
problems. Before the financial crisis in 2007-2008, certain groups like CIVs, hedge funds,
and structured investment vehicles weren't being monitored very well by regulators. This lack
of oversight could lead to some serious issues in the financial world.
Some financial companies don't have a banking license, so they aren't closely watched by the
government or credit agencies in some countries. This can be risky because if these
companies make up a big part of the financial system, it can cause big problems. For

example, in 1997 there was a financial crisis in Asia because these companies weren't
regulated well. They lent out too much money and prices of things like houses and stocks got
too high. When everything crashed, lots of people couldn't pay back their loans, which caused
a big mess in the financial system and hurt many countries in Asia.
Because there are more companies trying to lend money, the big banks don't always want to
share their secrets with the smaller lenders. Plus, those smaller lenders don't always have the
fancy technology needed to join in on the sharing fun. And when it comes to telling the credit
agencies about who's borrowing money, the little guys don't always have as much to say as
the big banks do.
In order for NBFCs to keep growing and stay strong, it's crucial to have rules in place to
guide them while still letting them be creative. By setting up a special testing area for new
ideas in different environments, NBFCs can reach their goals more easily.
COMPANY PROFILE
For over 61 years, the Manappuram Group has been a strong and trustworthy company led by
Mr. V.P. Nandakumar. With 9 companies and over 1,950 branches in 19 states in India, we
have a total business worth over Rs. 70 billion. We have a team of over 14,500 employees
and more than 5 million customers. We are proud to be India's largest listed and highest
credit-rated gold loan company.
We offer lots of ways to help you with your money so you can have an easier life.
Back in 1949, a guy named Mr. V.C. Padmanabhan started a company called Valapad. He was
a real go-getter and had big dreams. At first, the company just lent out money to people in a
small way. But Mr. Padmanabhan was super honest and smart, so the company grew quickly.
When he passed away in 1986, his son, Mr. V.P. Nandakumar, took over. He used to work at a
bank, but now he's the big boss at Valapad. Mr. Nandakumar is really good at business and
has helped the company grow even more. He's all about using technology to make cool stuff
for customers. Valapad is doing great thanks to him!

Back in 1992, the big boss of the Group, Manappuram General Finance and Leasing Limited
(MAGFIL), was born. This happened right after the Government of India made some changes
to the economy. They wanted to help out small and medium businesses by using leasing as a
way to grow. MAGFIL quickly became a leader in this field and achieved a lot of cool things
in a short amount of time.
 The first NBFC from Kerala just got a Certificate of Registration from RBI! And you
know why? Because they are really good at making sure all their depositors get their
money back in full. How cool is that
 MAGFIL, a company from Kerala, just got a super high credit rating of MA+ from
ICRA, which is like a big stamp of approval from the RBI. This means they're really
good at paying back the money they owe on time. And get this - they've grown super-
fast to become one of the top NBFCs in South India in just a short amount of time.
How cool is that
 The FIRST NBFC from Kerala just got a super cool rating for its Secured Non-
convertible Redeemable Debenture issue worth Rs. 50 million. How awesome is that
 First NBFC from Kerala to go for public issue
 First NBFC from Kerala to issue bonus shares at the ratio 1:1.
 First NBFC from Kerala to receive Foreign Direct Investment (FDI).
 first NBFC from Kerala to receive AD-II (authorised dealer – II) license from RBI
 First NBFC from Kerala to obtain broker’s license from IRDA (insurance regulatory
& development authority)
 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 and Long-term rating of LA+ for its working
capital limit
This company's stocks are available for trading on the Mumbai, Chennai, and Cochin Stock
Exchanges. They are really popular on the Bombay Stock Exchange (BSE) and are being
bought and sold at prices way higher than their face value.
Back in 1993, this awesome Group started Manappuram Benefit Fund Limited, a special
company that helps out its members. And guess what? Now it's one of the coolest Nidhi
Companies in South India!

Back in 2000, Manappuram Chits (I) Limited was created as a chit fund company in Kerala.
It was made to follow the Chit Fund Act of 1982, a law made by the Indian government. This
law was hard for a lot of chit fund companies in Kerala to follow.
In 2002, the company got a special license from the Reserve Bank of India to start a Forex
business. This was part of their plan to try out new things and grow their company in
different ways.
Our company is now offering a super-fast way to send money instantly! We've teamed up
with Xpress Money, Constar, Instant Cash, Zoha, Eremite, and Money Gram to make this
happen. Instant Money Transfers are the quickest way to send money to or from India. This is
great news for NRIs who want to send money to their family back home. With this service,
your relatives in India can receive the money within just a few minutes of you sending it.
How cool is that?
The company's main focus is giving out Gold Loans, but they've also started doing other
things to make money, like selling insurance. In 2006, they got a license to sell insurance
from IRDA. Now, they can offer all kinds of insurance products to their customers that fit
their needs.
So basically, this company is like a financial superstore where you can get everything you
need in one place. They even have a separate company just for fee-based stuff called
Manappuram Insurance Brokers Private Limited (MAIBRO). It's owned by MAGFIL, which
is like the main company in the group.
Back in 1993, The Group got this cool ISO 9001-2000 certification. It's like a badge of
honour showing that they meet super high-quality standards all around the world.
Our company is awesome because our team is super dedicated and motivated. We believe
that investing in our people is the best investment we can make. That's why we have a top-
notch training program that's one of the best in our industry. We offer in-house training
courses all the time to help our staff improve their skills and be more efficient at their jobs.
We want to make sure our customers are always happy, so we make sure our employees
know exactly what they need to do to make that happen. It's pretty cool to be a part of a team
that's always striving to do their best
The Group really cares about helping others. They decided to start the Manappuram Institute
of Management (MAINMA) in September 2005 to help train future leaders in India. They
wanted to make sure that the school would be known all over the country for its great
reputation.

Guess what? Our Company just made a super cool deal with M/s. Hudson Equity Holdings
Limited and Sequoia Capital India Investment Holdings! They're giving us a bunch of money
to help us grow our business. Basically, they're buying special shares from us for Rs.100
each, totalling Rs. 468 million. Later on, these shares will turn into regular shares of our
company. Once that happens, these investment companies will own a big chunk of our
company - almost 30%! We're planning to use this money to open more branches all over the
country and expand our business in gold and vehicle loans. How awesome is that
In November 2008, the company got a big boost of money - Rs. 1 billion and 80 million -
from some fancy firms in the UK and the US. The UK company Ashmore Alchemy, which is
a mix of Ashmore and Alchemy, put in Rs. 320 million through their investment group in
Mauritius, called AA Development Capital India Fund, LLC. It's like the company got a big
piggy bank filled with lots of cash!
Since our company has been growing bigger and doing more stuff, we decided to hire Earnest
& Young, a really famous company, to be our auditors.
The company wants to become a big player in the country by opening lots of branches
everywhere. They want to be like a financial superstore that helps customers with all their
money needs. They want to make life easier for their customers.

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A STUDY ON CUSTOMER SATISFACTION REGARDING TO PERSONAL LOAN

IN MANAPPURAM FINANCE LIMITED

BHEEMI REDDY INSTITUTE OF MANAGEMENT OF SCIENCE

What is personal loan?

Why Personal Loans are Awesome!

BHEEMI REDDY INSTITUTE OF MANAGEMENT OF SCIENCE

DOCUMENTS REQUIRED FOR PERSONAL LOAN

1.bank statements for the past few months,

BHEEMI REDDY INSTITUTE OF MANAGEMENT OF SCIENCE

3.your salary slip,

4. documents from any guarantors you have.

BHEEMI REDDY INSTITUTE OF MANAGEMENT OF SCIENCE

BHEEMI REDDY INSTITUTE OF MANAGEMENT OF SCIENCE

BHEEMI REDDY INSTITUTE OF MANAGEMENT OF SCIENCE

INDUSTRY PROFILE & COMPANY PROFILE

BHEEMI REDDY INSTITUTE OF MANAGEMENT OF SCIENCE

BHEEMI REDDY INSTITUTE OF MANAGEMENT OF SCIENCE

BHEEMI REDDY INSTITUTE OF MANAGEMENT OF SCIENCE

BHEEMI REDDY INSTITUTE OF MANAGEMENT OF SCIENCE

A non-banking financial institution (NBFI) or non-bank financial company (NBFC) is a type

ROLE IN FINANCIAL SYSTEM

BHEEMI REDDY INSTITUTE OF MANAGEMENT OF SCIENCE

BHEEMI REDDY INSTITUTE OF MANAGEMENT OF SCIENCE

BHEEMI REDDY INSTITUTE OF MANAGEMENT OF SCIENCE

BHEEMI REDDY INSTITUTE OF MANAGEMENT OF SCIENCE

BHEEMI REDDY INSTITUTE OF MANAGEMENT OF SCIENCE

BHEEMI REDDY INSTITUTE OF MANAGEMENT OF SCIENCE

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