SHRI R.G.P.

GUJARATI PROFESSIONAL INSTITUTE

SYNOPSIS
FOR MAJOR RESEARCH PROJECT ON The comparative analysis of Gold loan product between two leading companies IIFL & Mannapuram
Submitted to Add Value In the Degree of Master of Business Administration (20011-2012)

Guided by: Prof. Prerna Bagadia

Submitted by: Priyanka Doshi

INDEX

1. INTRODUCTION 2. LITERATURE REVIEW 3. OBJECTIVES OF THE STUDY 4. RESEARCH METHODOLOGY 5. EXPECTED OUTCOME 6. REFERENCES 7. WEBLIOGRAPHY

INTRODUCTION

What is Gold Loan? As the name suggest its loan against Gold. Its the most convenient way to receive cash in no time from any NBFC/Bank by pledging your Gold ornaments/Coins/bars/Exchange traded funds ETFs/ SBI gold certificates etc., this is one loan product which comes with minimal documentation & no processing time in short its over the counter product. Product is designed in a way it ensures hassle free process for the customer & loan availed can be put to any use. Loan amount eligibility is evaluated basis on the Gold value banks usually fund 7080% of the gold market value & on repayment of the loan gold deposits are returned back to the customer. This loan comes much cheaper than personal loan as its a secured product & rate of interest ranges between 11.5-24% per annum. Rate of interest is decided on two factors risk criteria ( What % of market value of Gold you are availing loan if its 90% of the Gold market value then interest charged will be higher & vice a versa for lower loan amount as compared to gold value) & customer relationship with the bank. Features of Gold Loan: Fastest loan disbursal Most convenient way to arrange funds Low Documentation No pre-payment charges No loan amount cap (you can avail as low as 10,000) Process for availing Gold Loan : Its a four step process: Loan Valuation: Banks/nbfc carries out valuation of Gold & decides on the loan amount eligibility. Documentation: Usually banks/NBFC takes photo id & residence proof of the

applicant. Signing of Agreement: Terms & condition of the loan are signed by the loan applicant. Loan Disbursement: Cheque is handed over to the customer over the counter after signing agreement at same time. Complete process usually takes 30-45 minutes. Institutions offering Gold Loan: To name a few leading financers are Muthoot Finance, Manappuram, iifl, HDFC bank, SBI & its associates, Andhra bank, ICICI bank & many more..
Top

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 Shri Nandakumar. Its activity was mainly pawn broking and money lending carried out on a modest scale. The principal asset of the company was the integrity and foresight of its Founder and among the people of the area it soon acquired a reputation as a safe-haven for their investments. The expansion: Shri Nandakumar took over the reins of this one Branch business in the year 1986 when his father expired. Since then, it has been a story of unparalleled growth, with new milestones being crossed every year. And today, it has grown into the Manappuram Group with nine companies in its fold having diverse interests in Gold Loans, Asset Financing, Insurance, Foreign Exchange, Money Changing, and most recently, retail gold jewellery and affordable Healthcare. The group's flagship, Manappuram Finance Ltd. (MAFIL), is India's first listed, highest credit rated gold loan company and widely recognised as one of leading wealth creators in the Indian stock market in recent times. Incidentally, all the group companies including MAFIL continue to be head-quartered at Valapad.

Manappuram Finance Ltd. is now recognized as a leading national player in its core activity of gold loans. Established in the year 1992 (the original name was Manappuram General Finance and Leasing Limited), the company has since maintained a consistently rapid pace of growth. Today, it has over 2,500 branches across 22 states with Assets under Management (AUM) exceeding Rs.10, 000 crores, a workforce of

OBJECTIVES OF THE STUDY

1. To study the gold loan product & Products features. 2. To compare the gold loan products of two leading company. 3. To compare the services provided by these two companies.

RESEARCH METHODOLOGY SAMPLE:

1. SAMPLE UNIT: This study focused on Gold loan products ,Comparison of two leading companies products & their services. 2. SAMPLE SIZE: A sample of 10 Gm gold bar with 99.99 % purity The primary data is collected by using Random sampling technique.

TOOLS:
1. TOOLS FOR DATA COLLECTION: The study is mainly based on secondary data. Secondary data will be collected from various bibliographical sources such journals, newspapers, broachers, publications and various websites including the official website IIFL & Manappuram , IRDA and various other company websites. Thepublished research reports and market studies also helped to gauge the various problems.

2. TOOLS FOR DATA ANALYSIS : Percentage analysis Purity analysis. Volatility of daily data Bar chart and pie chart.

EXPECTED OUTCOME
The consumer satisfaction and awareness level about the ICICI Lombard products and services will be good on all parameters like sales persons efficiency problem solving efficiency, claim settlement and reliability, if quality services will be provided. A consumer being satisfied if the employees reciprocate to him positively fulfill his requirement in time if we succeed in settling consumer problems and solving their critical conditions as and when such circumstances arises then that will surely increase the satisfaction, awareness and recommendation level towards the companys product and services. Large products range and quality services along with large number of satisfied consumers in few products ranges may be the reason to become leader in it and describe its success in the general insurance industry.

REFERENCES
Oliver, R.L. 1981. Measurement and Evaluation of Satisfaction Process in Retail Setting. Journal of Retailing 57, 25-48.

Parasuraman, A., Zeithaml, V.A., Berry, L.L. 1994. Alternative Scales for Measuring Service Quality: A Comparative Assessment Based on Psychometric and Diagnostic Criteria. Journal of Retailing 70 (3), 201-30.

Spreng, R.A., Mackoy, R.D. 1996. An Empirical Examination of a Model of Perceived Service Quality and Satisfaction. Journal of Retailing 72 (2), 201-14. Shemwell, D.J., Yavas, U., Bilgin, Z. 1998. Customer-Service Provider Relationships: An Empirical Test of a Model of Service Quality, Satisfaction and Relationship-Oriented Outcomes. International Journal of Service Industry Management 9 (2) 155-68.

Taylor, S.A. 1997. Assessing Regression-Based Importance Weights for Quality Perceptions and Satisfaction Judgments in the Presence of Higher Order and/or Interaction Effects. Journal of Retailing, 13 (1), 135-59.

Taxak Ramesh H., Kaur ?Manjeet, a study of consumer satisfaction in private and public sector banks

WEBLIOGRAPHY
WWW.icicilombard.com WWW.icraratings.com WWW.Wikipedia.com

 WWW.hindubusinessline.com WWW.financialexpress.com www.google.com www.managementparadise.com www.jpubhealth.oxfordjournals.org www.expertscolumn.com