Objectives of the study

This study is descriptive in nature and aims to deepen the understanding of the Indian gold loan market. The study also tries to know the difference between the conventional personal loans and gold loans. Through this study, an attempt is made to know the various purposes for which clients acquire gold loans.

Specifically the study tries:

1. To gather knowledge about the Indian gold loan market

2. To find the reasons for choosing gold loans over conventional personal loans

3. To know the purposes for availing gold loans by the respondents.

4. To find out the competitive position of India Infoline, and the ways and means to improve on the service by India Infoline Finance Limited.

5. To study about consumer awareness& satisfaction, about operational Services & procedures of India Infoline ltd.

6. To understand the satisfaction level of clients with India Infoline regarding service provided by staff.

INTRODUCTION OF THE PROJECT

As researcher discussed in earlier he have got the topic for two months summer internship program was “Market Scoping and Analysis of Financial Investment & Loan Product” For knowing the scope and analysis of financial investment in the market researcher have conducted a small research with help of “Financial Awareness Survey Form”.

Marketing research will help researcher to identify the need of the customer by gathering the information by filling the survey form from individual customer. Market Research is systematic problem analysis, model building and fact finding for the purpose of important decision making and control in the marketing of goods and services. Marketing Research is a well-planned, systematic process which implies that it needs planning at all the stages. It uses scientific method. It is an objective process as it attempts to provide accurate authentic information. Marketing Research plays a very significant role in identifying the needs of customers and meeting them in best possible way. The main task of Marketing Research is systematic gathering and analysis of information. Marketing Research is essential for strategic market planning and decision making. It helps a firm in identifying what are the market opportunities and constraints, in developing and implementing market strategies, and in evaluating the effectiveness of marketing plans. Marketing Research is a growing and widely used business activity as the sellers need to know more about their final consumers but are generally widely separated from those consumers. Marketing Research is a necessary link between marketing decision makers and the markets in which they operate.

For gathering the more and accurate information from the customer about financial product and gold loan market, researcher are made the questioner and filled the same from the individual customer.

2

INTRODUCTION OF THE COMPANY

India Infoline originally incorporated on October 18, 1995 as “Probity Research And

Service Private Limited” at Mumbai under the companies act, 1956 with registration number –

1193797. And become a public limited company on April 28, 2000.

The name of the company was changed to India infoline.com limited on May 23, 2000 and later

to India Infoline Limited on March 23, 2001. It is the first company in India to foray into the

online distribution of Mutual Funds.

It is a one-stop financial service shop, most respected for quality of its advice,

personalized service and cutting-edge technology. The No-1 corporate agent for ICICI Prudential

Life Insurance Company. Research acknowledge by Forbes as “Must Read for Investor in South

Asia”

The India Infoline was listed on Bombay and National Stock exchange with a net worth

of INR 200/- crore and a market cap of over INR 1970/- crore. The company has a network of

976 business locations (branches and sub-broker) spred across 365 cities and towns. It has more

than 800,000 customers. It is registered with NSDL as well as CDSL as a depository participant.

Providing a one-step solution for client trading in the equities market.

The Company is engaged in the activity of mortgage financing, loan against securities,

gold loans, margin funding and other consumer financing products.

India Infoline Finance Ltd. is professionally managed and shares the professional values and

ethos of its parent company, IIFL and has acquired and maintained a reputation for reliability,

transparency of operations and absolute integrity. A steady growth rate validates the trust that

industry has reposed in the Company.

IIFL offers advice and execution platform for the entire range of financial services

covering products ranging from Equities and derivatives, Commodities, Wealth management,

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Asset management, Insurance, Fixed deposits, Loans, Investment Banking, Gold bonds and other

small savings instruments.

Our research is available not just over the Internet but also on international wire services like

Bloomberg, Thomson First Call and Internet Securities besides others where it is amongst one of

the most read Indian brokers.

IIFL is a listed company with a consolidated group net worth of about Rs 1,800 crores.

The income and net profit during FY2010-11 were Rs. 14.7 bn and Rs. 2.1 bn respectively.

IIFL’s Crisil and ICRA Rating for short term is top rated as CRISIL A1+ and ICRA

(A1+) respectively. For long term, IIFL has been rated ICRA (AA-) by ICRA and CRISIL

AA-/Stable by CRISIL indicating high degree of safety for timely servicing of financial

obligations.

The physical presence in key global markets includes subsidiaries in Colombo, Dubai,

New York, Mauritius, London, Singapore and Hong Kong.

IIFL Holdings Ltd is divided into 10 companies.

1. India Infoline Ltd.2. India Infoline Finance Limited: India Infoline housing Finance Limited is

under this company.3. India infoline Insurance brokers Ltd.4. India Infoline Commodities Ltd.5. IIFL Assets management company & IIFL MF6. IIFL Private Wealth management Ltd.7. IIFL (Asia) Pte Ltd.8. IIFL Inc. (US) investment Advisors Ltd.9. IIFL (UK)10. IIFL Multi National Company.

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INTRODUCTION OF GOLD LOAN

Gold loan or loan against gold is the easiest and quickest way for servicing your financial needs. To avail a gold loan, all you need to do is pledge your gold ornaments with us and we would provide you with a loan amount as per the market value of your gold. Unlike other loans, gold loan does not require you to provide any income or salary proof. Moreover, it has comparatively lower interest rates; requires lesser documentation, and hence is processed in lesser time.

We at IIFL provide maximum loan against your gold at lowest interest rates. We have a strong presence Pan-India and have serviced a large number of customers in a very short span. We offer different types of schemes as per your requirement and convenience. Following are the main features of our loans:-

The main features of IIFL Gold Loan:-

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Loan amount ranges from min Rs 1,000 to max Rs 10,00,000 Tenor for loans ranges from 7 days to 11 months Loan can be paid back on a monthly or quarterly basis Interest / Loan Amount due can be paid at any of IIFL Gold

Loan branches pan-India Minimal amount of paperwork and documentation is required Loan gets processed in as low as 5 minutes Variety of schemes are available to chose from

IIFL GOLD LOAN SCHEME

Advantages of Gold Loan:- Gold loan doesn’t demand any certificate to show your salary or

income and even no credit card history is required. Thus even unemployed and non working people can go for gold loan.

Unlike any other unsecured loan, gold loan doesn’t require many papers, only few documents such as ID proof and address proof is enough to avail for such loan.

One of the main advantages of gold loan is its low interest rates. Usually loan over gold is provided at the interest of 15-21% per annum and this is quite low compared to personal loans available at interest rates of 15-26% per annum.

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Sr. No

Scheme Name Value Interest Rate (%)

Rate per gram

1 Bharat Nirman 18M 1.50% Rs. 1,600/-2 Super Express M 1.50% Rs. 1,850/-3 Bharat Nirman 20M 1.50% Rs.1,750/-

4 Bharat Nirman 22M 1.75% Rs. 1,850/-5 J/L W1 1.30% Rs. 1,850/-6 J/L W2 1.50% Rs. 1,850/-

In rural areas Agricultural loan against gold is also available for agriculturist at very nominal rate of Interest of 7%-8%, proof of agricultural document needs to be provided.

Gold loan is the most simple and convenient forms of loan because here all you need to do is pledge your gold with a bank or finance company and get up-to 80% of the market value of the gold as a loan.

Borrower will be given an option to pay only interest during the entire term and at the end of the tenure you can pay complete borrowed amount in single shot.

In case of gold loan processing time is very less. Usually banks take just few hours to complete the process where as in case of NBFC’s (Non Banking Financial Companies) a few minutes are enough for the same. So for immediate financial help this is the best option.

No depreciation of underlying asset: Unlike other secured loans, the underlying asset in a gold loan is not subject to depreciation. At the same time, unlike land, it is a liquid asset and the transaction costs involved when enforcing the security are minimal.

Gains for the wider economy: India has the world’s largest stock of privately held gold with informed estimates ranging from 15,000 to 20,000 tonnes. When people borrow against gold (technically called ‘monetisation’), the impact is to set in motion a whole new chain of economic activity.

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Charges associated with Gold Loan:- Loan processing charge: While some of the service providers may waiver these charges, some banks do charge a processing fee.

Valuation Charge: These are the charges to be paid to the valuator. These charges are also specific to the service provider and those having in-house valuators do not charge any extra amount for valuation.

Late payment penalty: Most of the service providers charge late payment penalty and this too can vary from one institution to the other.

Pre-payment penalty: Most of the service providers do not charge a penalty for repayment before the loan tenure is over. But some may still have this charge in place.

It is advisable to check with the loan provider before taking the loan. These charges could change the amount that you may finally receive.

Advice on Gold Loans:-

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Go for gold loan if you are confident of returning the money in time otherwise, you will be penalized and all your pledged gold will come under the control of bank or finance company from where you taken a Gold Loan.

While opting for gold loan check the interest rates in various banks and private finances. If you go for private lenders then better to go with one who has been in this business for many years.

RBI's gold loan regulation for NBFCs

The Reserve Bank of India (RBI) on Monday tightened regulations governing non-banking finance companies (NBFCs) lending against gold jewelry.

The new rules include strict documentation for high value loans against gold and prohibition on misleading advertisements by NBFCs such as offering availability of gold loans in a matter of 2-3 minutes.

The guidelines are broadly based on the January recommendations of an expert panel set up by RBI, headed by K.U.B.Rao. The RBI, however, did not accept the recommendation of the panel for higher loan-to-value (LTV) ratio on gold loans.

The LTV ratio, or the amount that can be lent against gold, has been maintained at 60%. This means for gold worth Rs100 offered as collateral, lenders can give loans up to Rs60.

Further, NBFCs should also proportionally value while deciding the LTV on jewelry of lower purity of gold, RBI said.

Also, NBFCs financing against the collateral of gold must insist on a copy of the PAN card of the borrower for all transaction above Rs5 lakhs and

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all high value loans of Rs 1 lakh and above must only be disbursed by cheque, RBI said.

The apex bank has clearly stipulated that NBFCs should not issue misleading advertisements like claiming the availability of loans in a matter of 2-3 minutes.

RBI has also asked NBFCs to make the auction process of the gold more transparent by disclosing the details of auction process in the annual report, including full details of the value fetched in the auction.

The reserve price for the pledged ornaments should not be less than 85% of the previous 30 day average closing price of 22 carat gold as declared by the Bombay Bullion Association Ltd, an industry body, RBI said.

Gold Loan Process

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CCE

Explains the various scheme.If customer is convinced to pledge, collects KYC documents and gold.Verification of KYC documents done and passed on to BM for further verification.BM-ID and Address Proof verification.

5. Cash Handling to customer 4. Checking and approval of Gold 3.CCE collecting the Gold

GOLD LOAN FLOW CHART

11

1. Customer approaches the

branch

2. Interaction with CCE 3. CCE Collecting Gold

6. Cash handling to customer

5. In 5L and above, conversation with BM

4. Appraisal of gold

Operational learning:

Role of staff engaged in a normal branch process:

Security Guard

Customer care executive

Valuer 1 and 2

Branch Manager

Job of Security Guard:

First and foremost things are that security guard needs to be dressed properly.

Greet the customer

Ask customer the reason for visiting branch

Ask customer to enter details in visitor register

Lead the customer to branch

Role of customer care executive:

Handling inquiries from customers regarding loans against gold.

Helping customer to solve his / her all query.

Explaining terms and conditions of the product to the customer.

Counting jewel items in front of customer and taking his/her all query.

Ensuring all the KYC documents are verified with original.

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Ensuring all the details are filled up in customer detail form.

Role of valuer 1 and valuer 2:

Checking the jewelry with accuracy.

Testing gold with two methods which includes , skin test and salt test.

Finding out the purity and making appraisal sheet.

Working out on loan amount with mutual conversation.

Every gold jewelry item must be counted and matched with the appraisal sheet before inserting it in gold packet.

Each and every details mention on packet must be filled in with accuracy.

It is important to keep gold packet in serial order in vault.

Steps to be followed while appraising gold

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Name of item Gross weight Net weight Per Gram Rate Amt (Net wt.* Per gm rate)

Sort gold items according to solid, chains and others.

Confirm the purity with the help of touch stone and acid test.

Note down result in following format:

Pass out gold to valuer 2 for re- valuation

Suggest lower loan amount to BM.

Steps to be followed while sealing of gold

Fill in the details on the packet

Insert the gold and appraisal sheet in the packet

Fix the sticker

Sign on the sticker (BM and valuer 1)

Affix the seal on sticker

Keep the gold packet in vault in serial order mentioning the GL number (to and from)

Role of cashier:

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To make sure that cash is taken from vault strictly as per cash denomination entered in the system.

Ensuring that cash is counted twice before giving it to customer.

To make sure that cash transaction is done in front of cctv camera.

Steps to follow at the time of cash handling:

Joint custodians open the vault room.

Take cash as per cash denomination entered in system

Pass out the same to cashier to re-count.

Handover the cash to customer in front of CCTV camera.

Case 1: customer doesn’t have valid documents (KYC norms)

Do not violate KYC norms.

A valid address proof must be taken.

In this case rent agreement is must as a address proof.

One should not process the loan if customer doesn’t have the proof of current residential flat.

Case 2: customer doesn’t have address proof (KYC norms)

Do not violate KYC norms.

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In this case address proof is to be taken

One should not process the loan if customer doesn’t give you the address proof at the same moment.

Do not deny of giving loan but you can always say your customer to come up with all the documents so, you will process the loan in 5 min.

Case 3: Fraud customer

Inform your customer incase of broken jewelry.

Customers behavior must be noticed

In case of doubt , ask the customer about the reason for taking loan

Telephonic verification must be done at the same time

Alert other branches about the customer to avoid any further mishap

Case 4: Branch visit by senior

Do not allow any senior to check branch inventory without checking his/her ID card

Part release:

In part release customer has the facility to remove his / her some of the jewelry

Customer can also change the scheme with remaining jewelry

When customer comes for interest payment make sure that it doesn’t take much time

16 Interest amount = principal amt * annual ROI / 365*number of days

Final release:

At the time of final release kindly check the borrower copy

Open the gold packet in front of customer

Collect cash before handling gold to customer

Every transaction of cash must be done in front of CCTV camera

Role of branch manager:

Branch manager has to explain customer about RTGS process

Convince customer to opt for RTGS/NEFT mode of cash transfer

Explain customer about the advantages of RTGS/NEFT process

Make sure that address verification is done by BM before disbursal of loan

Competitive analysis

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Muthoot Finance Gold Loan Muthoot is a Kerala originated association set up by Muthoot Ninan Mathai in 1887 at Kozhencherry in Travancore district which was later being adopted by M George Muthoot. Loan is received within a time period of 5 min. It ranges from Rs 1500 to 1 crore. 0%processing fees. Interest rate of 1% per month.

Manappuram Finance Gold Loan Manappuram Finance also facilitates gold loan within 5 minutes. It help to draw instant Cash by subscribing gold ornaments and Jewellery. It provides loan at higher points, based on purity, net weight of gold. The candidate must have one recent ID—Voter ID/ Ration Card/ Driving License/ Passport. No time-consuming formalities involved.

Union Gold Loan Union gold loan provides credit facility to needy farmers. The lending rate is Rs 1800 per gram gold ornaments. Based priority sector like agricultural purposes. Under non priority sector for basic necessities for unforeseen expenses. Loan amount consumption purposes is up to Rs.2000/-. The Non-Priority Sector loan amount is max.Rs.5 lacs.

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HDFC Gold loan

HDFC gold loan term loan provides instant loans. Regular interest on loan is being granted. Identity Proof like Passport Copy/ Voters ID card/ Driving License along with proof like Ration card/ Telephone Bill/ Electricity Bill/ Rental Agreement/ Passport copy/Trade license /Shop &Est License / Sales Tax certificate, 2 pass port size photographs.

SBI Gold loan SBI gold loan is loan which satisfies as a biggest advantage to overcome crisis and is a personal loan phenomena. It has low interest rate. The loan amount of Rs. 10 lakh is attained by the customer. It also provides gold loan for farmers for agricultural necessities. The main documents required for applying gold loans are Letter of witness in case of illiterate borrowers. Two passport size photographs of the borrower. DP Note delivery. All the gold ornaments that are to be kept as mortgage for the loan. Gold Loan application.

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Loan features

Leander Bank\ NBFCs

Muthoot

Finance

Manppuram Muthoot

FincropIndian Bank

Indian Overseas

Bank

Federal bank

IIFL

Rate of Interest 12%-21% - 13.45%-

24%

12.25 -15.25%

12 %- 12.5 %

13.5% - 15.75 %

15 % - 21 %

Loan to value Ratio

Avg of 72%,

high of 85%

Up to 85% Up to 90%;

100% in

some cases

Lower of 70% or value

based on rate per

gram and net

weight

- Up to 85%

55 % to 80 %

Loan tenure - - 6 to 36

months

- - 6 months to 12

months

7 dasy to 11

monthDisbursal Time 5 mins 5 mins 3 mins to 4

hours

5 mins to 4 hours

Min. Loan Amount

1,500 - 500 - 50,000 - 3,000

Max. Loan Amount

10 million 10 million No Limit 2 million 1 million 7.5 million

10 million

Purpose Any Any Any Any Commercial only

Any any

Processing Fee 0 0 Rs. 5 to Rs.

75

0.5% for loans

greater than Rs. 25,000

Rs. 202 per lakh; Rs.

300 appraiser commissio

n

0 Rs. 49 to Rs. 150

20

Documentation Only ID at

disbursal

Only ID at

disbursal

Only ID at

disbursal

ID proof and asset ownershi

p documen

ts

Proof of commercial activity; unaudited balance

sheet for > 3 lakhs;

jewel appraisal certificate

Asset ownership proof

and bank account

ID proof and

address proof

Others Important Features

• In-house

evaluation •

Schemes with

different

value per

gram and

correspondin

g interest rate

Interest to be

paid for

number of

days loan

availed

• Part

redemption

• Part

payment •

Exclusive

counters

for loans

more than

Rs. 25,000

• Prompt

payment

rebate of

2% •

Minimum 7

days

interest is

payable

- - - • Part

redemption

• Part

payment •

EMI

Facality

• Prompt

payment

rebate of

2% •

Minimum 7

days

interest is

payable

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RESEARCH METHODOLOGY

Research design of the study:

The study is based on survey technique. The study consists of analysis and Market Scoping of Financial product of IIFL. For the purpose of the study 80 customers are picked up and their views solicited on different parameters. The methodology adopted includes:-

Questionnaire Random sample survey of customers Discussions with the concerned

Personal interviews and informal discussions were held with customers to ascertain the awareness level. Further applying simple statistical techniques has processed the data collected.

Sources of data:

Primary data: Questionnaire Secondary data: are published materials such as periodicals, journals,

newspapers, and website.

SAMPLING PLAN:

Sampling since segment wise investors in IIFL are not available for the overall customers was considered for the study. 100% coverage was difficult within the limited period of time. Hence sampling survey method was adopted for the purpose of the study.

Population: (universe) customers of IIFL

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Sampling size: A sample of sixty customers was chosen for the purpose of the study.

Sampling Methods: Probability sampling requires complete knowledge about all sampling units in the universe. Since due to time constraint non-probability sampling was chosen for the study.

Sampling procedure: From large number of customers of IIFL were randomly picked up.

Field Study: Directly approached respondents.

DATA COLLECTION INSTRUMENT

Collection of data through questionnaires:The data collected for the study purpose is through questionnaires. customers of IIFL have been selected randomly for the study purpose and then the information revealed from the customers is analyzed and interpreted in the study.

Organization of field work

Initial field work has done for pre testing tools for data collection. The data is collected through the direct interaction with the customers through questionnaires answered by them. Customers of IIFL were randomly chosen for the purpose of the study in Chembur camp.

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LIMITATION OF THE STUDY:-

Time limit is a major constraint.This research reflects on individual customer in Chembur only. So findings and suggestion given on the basis of this research cannot be extrapolated to the entire population.

Sample size of the questioner is 80 which are very small that is not enough to study the awareness of consumer of that particular above area.

Respondent are not sincere and care full to fill up the questioner so we cannot find right solution.

As per the company rules many information was not disclosed.

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

Data Analysis Interpretation

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Q.1) Occupation of respondents?

Ans. Business - 25 Salaried –55

Number of Respondents

Business

Salaried

Here we can see that salaried people are more near Chembur branch because there are many

companies nearby and people from various places come there and work in different fields.

Q.2) Marital Status of Respondents?

25

Ans. Married - 65 Unmarried –15

Marital Status

MarriedUnmarried

Diagram above shows that majority of the respondents were married and very few of them were

Unmarried. We surveyed most married people because, the requirement of money are mostly

seen after marriage.

Q. 3 How Many times in a year you have emergency requirement of

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money?

Numbers of times Requirement

Numbers of people

0 051 552 173 034 00

0 times 1 times 2 times 3 times 4 times0

10

20

30

40

50

60

Emergency Requirement of Money

Emergency Requirement of Money

We can observe that maximum 55 no. of respondents have emergency requirement of money

others are comparatively low. It may be that they plan their expenses well than spent & keep a

good amount for their savings so that they can meet their emergency requirements.

27

Q.4) Are you aware about concept of gold loan?

a) Yes b) No

Aware of Gold Loan

YesNo

It can be observed that majority of the respondents were aware of the concept of gold loan.

Q.5) Have you ever used gold loan service?

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6 15

3 48

a) Yes - b) No -

Gold Loan Service

YesNo

Majority of the respondents did not utilize the service of gold loan because they didn’t find the

need to do or may be because they have enough savings to meet their emergency requirements.

Q.6) From which company people are taken gold loan?

29

Gold Loan Company

Number of People

IIFL 03Muthoot 09

SBI 05Mannapura

m04

ICICI 01

IIFL

Muthoot SBI

Mannap

uram ICICI0123456789

10

Gold Loan Company

Gold Loan Company

Here, we can see that maximum number of clients i.e., 30% clients had taken loan from Muthoot, 29% clients had taken loan from SBI, 21% clients had taken loan from Mannapuram and 08% clients had taken from ICICI & 03% clients had taken from IIFL.

Q. 7 How Much Amount of Loan Taken?

30

Gold Loan Company

Number of People

5,000-25,000 0525,000-50,000 0950,000-75,000 06

75,000-1,00,000 02

5,000-25,000

25,000-50,000

50,000-75,000

75,000-1,00,000

0123456789

10

Loan taken

Loan taken

Here, we can see that maximum number of clients i.e., 9 clients had taken loan amounting 25k to 50k, 05 clients had taken loan amounting 5k to 25k, 06 clients had taken loan 50k to 75k and 02 clients had taken 75k and above gold loan.

Q. 8 which is the safest instrument for saving & Investment?

Instrument Number of

31

peopleSaving Bank a\c 37

Insurance 13Real Estate 09

Stock and Shares 05Fixed Deposit 15

Post Office 19others 03

Saving B

ank a

\c

Insurance

Real Es

tate

Stock

and Sh

ares

Fixed

Deposit

Post Office

others05

10152025303540

Safest Instrument

Safest Instrument

Here, we can see that maximum number of clients i.e., 37 clients responded that saving bank account is the safest investment and then after post office savings in the safest investment in today’s world.

Q. 9 what is approximately Monthly Household Expenses?

Instrument Number of PeopleBelow 10,000 50Up-to 15,000 11

32

Up-to 20,000 08Up-to 25,000 07Above 30,000 04

Below 10,000

Up-to 15,000

Up-to 20,000

Up-to 25,000

Above 30,000

0

10

20

30

40

50

60

Monthly Household expenses

Monthly Household expenses

Here, we can see that maximum number of client’s i.e.,50 clients responded their monthly household expenses are below 10,000 & 11 clients are having monthly expenses up-to 15,000 & 08 clients having monthly expenses up-to 20,000 and 07 clients having up-to 25,000 monthly expenses and 04 clients having above than 30,000 monthly expenses.

Q. 10 How Many are having Own house or taken on Rent?

Type of House Number of PeopleOwned 47Rented 33

33

Number of House

OwnedRented

Here, we can see that maximum number of clients i.e., 59% clients have owned house , while in the other hand only 41% clients have rented house.

Q. 10) How many are planning to buy new home?

Answers Number of People Percentage

Yes 25 78%

34

No 08 22%

Planning to buy new home

YesNo

Here, we can see that maximum number of clients i.e., 78% clients are planning to purchase owned house, while in the other hand only 22% clients are not planning for purchase of owned house.

Q.10B. How much amount is needed for purchase a owned house?

Amount Number of People3,00,000-5,00,000 025,00,000-10,00,00 11

10,00,000-20,00,00 0820,00,000-50,00,000 05

Above 50,00,000 07

35

3,00,000-5,00,000

5,00,000-10,00,000

10,00,000-20,00,000

20,00,000-50,00,000

above 50,00,000

0

2

4

6

8

10

12

Amount needed for purchase own house

Amount needed for purchase own house

Here, we can see that maximum number of clients i.e., 11 clients are planning to buy owned home from ranges 5 lakh to 10 Lakh and same number of clients also planning to buy owned home from ranges 10 lakh to 15 lakhs and then after 05 clients are planning to buy home within the range of 15 to 25 lakhs and 02 clients are planning to buy 3 to 5 lakhs amounting and 07 person are planning to buy above 25 lakh home.

Conclusion

For borrowers, gold loans have emerged as one of the best means of raising quick, short-term capital. For lenders, gold loans are more advantageous compared with home and car loans because of the shorter

36

tenures, lower processing time and cost, and greater returns due to higher interest rates. These factors, along with appreciation in value of gold, have led to an explosion in the gold loan market. With everyone wanting a piece of this action, the organized sector is challenging the large unorganized gold loan market dominated by pawnbrokers and moneylenders, with NBFCs leading the pack due to simpler approval and disbursal processes, flexible products and better accessibility.

An examination of these trends makes clear that banks/NBFCs that aren’t yet into the gold loan market might find it attractive. This is due to the following factors:

• Better ROI due to lower cost, higher interest rates and strong collateral.

• Ability to compensate for lower off-take of car/ home loans.

• Scope for cross-sell opportunities in future including other gold-based products.

• Opportunity to capture the growing underserved and under-penetrated market.

With approximately 65% of the market in rural areas, firms need to develop strategies to target this segment effectively and provide better accessibility to borrowers. When expanding, firms need to ensure consonance of services and operations throughout the network. Firms need to manage risks related to possible sharp fall in gold prices and non-adherence of regulatory norms and also need to ensure that physical assets are properly valued, stored and documented. Firms need to invest in technology to better manage the increasing volumes and to reduce risks.

FINDINGS

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According to the survey most of the customers of “India Infoline Ltd” says that rate of interest charged by IIFL is satisfactory.

Coming to faith 59% say India Infoline Ltd is better than others NBFC’s due to customer’s satisfaction. Lack of promotional activities undertaken by India Infoline Ltd. In Chembur Branch.

IIFL gold loan is less preferred by the general people might because of less awareness about IIFL goal loan services.

People want to invest their money in the bank saving accounts rather than insurance, fixed deposit, stocks and shares.

Most of respondents have their annual income between 2lac to 4lacand from them most of the people prefer LIC for insurance.

Many people know the concepts of gold loan in spite of that they don’t take Gold loan.

RECOMMENDATIONS& SUGGESTIONS

Most of the people are not much aware of IIFL gold loan services and its benefit. So INDIA INFOLINE FINANCIAL LIMITED can take general

38

awareness of GOLD LOAN SERVICES plan to the customers. INDIA INFOLINE should maintain the customer satisfactions.

There is lack of new customer addition in the branches of Indian Infoline Financial Limited, only existing customer comes to respective branches for gold loan so it is important to increase the awareness about the financial products of Indian Infoline Financial Limited in respective area. Some promotional activities are required for the awareness of the customer.

The Company should increase Exposure. It is the good tool to capture the market. To increase awareness about GOLD LOAN SERVICES AND OTHER FINANCIAL PRODUCT and the name India Infoline itself, the company should organize campaign. The campaign can be weekly, monthly, yearly, it will give a good result to the company to capture market in the competitive position.

Bibliography

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Websites:

www.indiainfoline.com http://www.iiflfinance.com/Products/GoldLoan.aspx http://www.neytri.com/gold-loans-what-you-must-know/ http://www.muthootfinance.com/services/gold-loan.html http://www.agloc.org/ www.mutualfundsindia.com www.google.com http://www.lfymag.com/admin/issuepdf/32-35_Gold%20Loan_FFYApril-14.pdf

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