EXCECUTIVE SUMMARY

This Project is based on '' GOLD LOAN FINANCE'' scheme of Bank of India named as
''STAR GOLD LOAN SCHEME''. In this study we would highlight the major information
about this scheme .

 First and Foremost the purpose of Bank of India is to fulfill the agricultural needs,
Other Priority sector needs, non - priority needs through Gold loan scheme.

 The Project shows various eligibility and operational guidelines to be followed while
implementing this scheme

 It provides the details of various products and services provided by the bank

 It provides information about the various objectives, scope and limitations of the
study

 It highlights the mission and vision of the bank

 It highlights the research methodology (research design, sampling methodology) used

in this project

 It contains Macro Analysis related to gold loan scheme(finding , conclusion and

recommendation)

 It contains annexure and bibliography based on the topic of this project

SWOT ANALYSIS OF BANK OF INDIA

 STRENGHTS:-
 Innovative financial product of diverse categories

 It provides saving schemes such as NRE Accounts and FCNR Accounts

 It provides convenient mode of Banking for customers

 Provides specialized products for corporate and High Net Worth for customers

 Provides benefits to the customers such as low borrowing costs, improved liquidity
position better accounting and reconcilations

 It has more than 45,613 employees

 It follows the Principle of ''ESPIRITS DE CORPS'' (Union is Strength)

 Provides various facilities to the customers in bank premises itself to the customers
such as cash deposit machinery

 WEAKNESS
 Low publicity and marketing as compared to other premium banks in the urban area
 OPPURTUNITIES

 Explore oppurtunities abroad by International Banking

 Bank of India has lauched various services as prescribed by the government with
tends to be ''BOON'' for the customers and leads to Highest level of CUSTOMER
SATISFACTION, LOYALITY E.T.C

 THREATS
 Heavy weight corporate like TATA & SONS, RELIANCE CAPITAL, L& T , ADITY
BIRLA , BAJAJ FINANCE AND MUTHOOT FINANCE are trying very hard and
leaving no stone unturned to acquire banking license

 Competitors SBI , BANK OF BARODA, PNB E.T.C

 Bank should identify the first foremost oppurtunity to excel in market

 OBJECTIVES OF THE STUDY

 PRIMARY OBJECTIVES
 To study the strategic necessity of Gold loan under Priority Sector

 To study the secured advancement percentage of recovery of Gold loan

 To understand the value of Gold loan as well as the way to conserve the capital
through extending Gold loans

 The attributes that attracts the customer mostly in taking the Gold loan scheme
 SECONDARY OBJECTIVES
 To ensure as well as identify the eligibility and operational guidelines in order to
provide complete gold loan procedure

 To identify the agricultural advantage of gold loan

 To identify the consumption purpose of Gold loan of Non- Priority sector

 To identify turn around time list of activities of extenstion of Gold loan under
Priority sector

 To identify the assessment of loan amount valuation of Gold loan ornaments and
coins for the basic purpose of gold loan

 To identify the rate of interest of gold loan for agriculture purpose

 To provide full details end to end regarding Gold loan finance

LIMITATIONS OF THE STUDY

1. Considering the population the sample taken for present study was small

2. The survey from the customers regarding gold loan was done in BANK

3. Some of the customer were non-cooperative in giving information which

hampered the research

4. Time period was short so certain aspects has been overlooked

5. The Information gets changed from time to time with respect to various terms ,
policies that created delay in information

6. Some respondents were reluctant to divulge personal information which can affect
the validity of all responses.
 RESEARCH METHODOLOGY

RESEARCH PROBLEM:-

To assess the ''Procedure regarding Operation of ''GOLD LOAN FINANCE'' of Bank of

India. In other words , these are the problems for which research in conducted.

RESEARCH DESIGN:-

Research design is the pre - selection of techniques for collection and analysis of data by
considering two important factors in mind:-

(i) Availability of time

(ii) Purpose of Research

In other words, Research Design is like a road map to the Researcher which tell him about
each and every turning point that comes. In general research design decisions are broken into
four sub design decisions:-

RESEARCH DESIGN DECISION

 OBSERVATION- STATISTICAL OPERATIONAL
SAMPLE
AL DESIGN DESIGN DESIGN
DESIGN DECISION DECISION
DECISION
DECISION

TABLE(A)

After taking these decisions research can be carried out effectively and efficiently

DESIGN TYPE AND SUB TYPES

There are many ways to classify research designs, but sometimes the distinction is artificial
and other times different designs are combined. Nonetheless , the list below offers a number
of useful distinctions between possible research designs. A research design is an arrangement
of conditions or collections.

DESCRIPTIVE RESEARCH

o Descriptive research is used to describe characterstics of a population or phenomenon

being studied. It does not answer questions about how/when/why the characterstics
occured. Rather it addresses the ''what'' question (what are the characterstics of
Minnesota state population or situation being studied?). The characterstics used to
describe the situation or population are usually some kind of categorical scheme also
known as descriptive categories. Hence , descriptive research cannot describe what
caused a situation . Thus , descriptive research cannot be used to as the basis of a
casual relationship ,where one variable affects another. In other words , descriptive
research can be said to have a low requirement for internal validity
o The description is used for frequencies ,averages and other statistical calculations.
Often the best approach , prior to writing descriptive research , is to conduct a survey
 investigation. Qualitative research often has the aim of description and researchers
may follow up with examinations of why the observations exist and what the
implications of the findings.

CO-RELATIONAL RESEARCH

o Co- Relational is a type of non-experimental research in which the researcher

measures two variables and assesses the statistical relationship (i.e the correlation)
between them with little or no effort to control extraneous variables. There are
essentially two reasons that researchers interested in statistical relationships between
variables would choose to conduct a co relational study rather than an experiment.
The first is that they do not believe that the statistical relationship is a casual one

SEMI- EXPERIMENTAL RESEARCH

o A quasi experiment is an empirical study used to estimate the casual impact of an
intervention on its target population without random assignment. Quasi experimental
research shares similarities with the traditional experiment design or randomized
controlled trial. but it is specifically lacks the element of random assignment to
treatement or control .Instead quasi experimental designs typically allow the
researcher to control the assignment to the treatement condition , but using some
criterion other than random assignment (e.g. eligibility cut off mark). In some cases,
the researcher may have control over assignment to treatement . Quasi - experiments
are subject to concerns regarding internal validity, because the treatement and control
groups may not be comparable at baseline. With random assignment , study
participants have the same chance of being assigned to the intervention group or the
comparison group. As a result ,differences between groups on both observed and
unobserved characterstics would be due to chance , rather than to a systematic factor
related to treatment (e.g illness severity) .Randomization itself does not guarantee that
groups will be equivalent at baseline. Any change in characterstics post intervention is
likely attribute to the intervention . With quasi -experimental studies, it may not be
possible to convincingly demonstrate a casual link between the treatment condition
 and observed outcomes .This is particularly true if there are confounding variables
that cannot be controlled or accounted for.

EXPERIMENTAL RESEARCH

o It is a collection of research designs which use manipulations and controlled testing to

understand casual processes. Generally , one or more variables are manipulated to
determine their effect on a dependent variable

AIMS OF EXPERIMENTAL RESEARCH

o Experiments are conducted to be able to predict phenomenon's . Typically, an

experiment is constructed to be able to explain some kind of causation. Experimental
research is important to society- it helps us to improve our everyday lives

BANK VISION AND MISSION

VISION:-

 To become bank of choice for corporates, Medium business and for market retail
customers

 To become developing banking for small business , Mass markets and Rural Markets

MISSION:-

 To provide superior , proactive banking services to niche markets globally while

providing the cost effective , responsive services to others

 To meet the requirements of the Stake Holders

QUALITY PRODUCTS:-

 The bank is committed to become the bank of choice by providing:-

 SUPERIOR

 PROACTIVE
  INNOVATIVE

 STAFF OF THE ART

 Providing Banking service with an attitude of care and concern for the customers and
patrons

COMPETITIVE BANKS WITH RELATION TO THEIR GOLD

LOAN SCHEMES:-

UNION BANK GOLD LOAN SCHEME

 All individuals are allowed to avail this facility irrespective of age

 Maximum loan amount limit for priority sector is 20,00,000 and non-priority sector is
10 ,00,000

 Loan amount requested by the applicant assessed amount of declaration and 75%
appraised value of Gold ornaments with 22 carat fineness

UCO BANK GOLD LOAN SCHEME

 UCO Bank offers a Demand Gold Loan to meet financial requirements of customers who
require immediate cash against their gold assets. Primarily catering to borrowers from the
middle and lower income group, this loan offers instant credit for multiple purposes. Given
the fact that most households own gold, this loan can be an effective solution to meet
temporary monetary contingencies.

Features of UCO Bank Gold Loan

UCO Bank Gold Loan comes with a number of significant features, some of which are
mentioned below.

 Multipurpose – This loan can be used for any genuine purpose, ranging from
education to housing to business.

 Quick approval – Gold loans can be availed without additional hassles, with minimal
paperwork and documentation required.

 High quantum – Borrowers can avail loans of different denominations, subject to

their requirement and background.

 Competitive interest – This loan comes at a competitive rate of interest, making

repayment light on the pocket.

 Prepayment – Borrowers can choose to prepay the loan without the worry of
prepayment charges.

UCO Bank Gold Loan Interest Rates

The interest rate charged by UCO Bank depends on a number of factors, including the
purpose for which a loan is availed. Loans up to Rs 3 lakhs which are designed to cater to
priority sector needs are charged an interest of 7% per year (in cases where subvention is
applicable). Gold loans for other priority sector needs, including agriculture and retail are
charged an interest of 9.75% per annum (Base Rate + 0.05%). Gold loans availed for non-
priority sector retail are charged an interest of 10.7% per annum (Base Rate + 3%).

STATE BANK OF INDIA GOLD LOAN SCHEME

 SBI Gold Loan
Gold Loans are loans availed by pledging your gold ornaments with a bank. SBI gold loan
can be taken for meeting urgent personal expenses like children education, marriage and
other financial emergencies in the family as well as for business purposes. The gold
mortgaged acts as a security to the loan. Taking a loan from SBI has the following benefits:

 SBI offers loans against gold with simple documentation, quick processing, and no
hidden charges.

 You can avail gold loans of long tenure of 30 months.

 SBI has a special agricultural gold loan scheme for borrowers engaged in farming and
looking to borrow funds for meeting their farming expenses. SBI interest rate on
agricultural gold loans is lower than that of its regular gold loan scheme.
Compare Gold Loan Rates of All Banks in India

SBI Gold Loan Details

If you are planning to take a Loan against Gold from SBI, you need to know the following
details of its gold loan schemes:

 Purpose of Gold loan: To meet personal and business expense requirements

 Collateral: Loan against security of your gold jewellery

 Type of Gold Accepted: Gold jewellery or gold coins of up to 50 grams with a purity
of 18 to 22 carat

 Customer Segments: SBI offers jewel loans to all individuals above 18 years of age
including salaried, self-employed professionals, businessmen, students, pensioners and
housewives

 Gold Loan Features

o SBI Gold Loan Interest Rate starts from 10.25%

o SBI charges a processing fees of 0.50% of the loan amount subject to a

minimum of Rs. 500

o Loan Tenure of Gold Loan ranges from 3 months to 36 months

o Lowest EMI per lakh on Gold Loan from SBI is Rs. 3,238 offered at the
lowest interest rate of 10.25% at the longest loan tenure of 36 months

o SBI allows prepayment of jewel loans with Nil charges

 Documents Requirement: Only basic KYC documents for address proof and
income proof required. The bank doesn’t require you to submit your income proof or
doesn’t check your CIBIL score for approving a gold loan.

 Popular Gold Loan Schemes of SBI

o Bullet Repayment Scheme

ALLAHABAD BANK GOLD LOAN SCHEME

Allahabad Bank offers Gold Loans of up to Rs.5 lakhs to Rs.25 lakhs to its existing
customers against their gold valuables. So now no one needs to worry about cash shortages as
the gold assets possessed by anyone can be pledged to take a loan. The bank will give the
cutsomer cash against the gold assets pledged by them. The cash received can be used for any
sort of business purpose like purchase of an asset or paying off a liability or for working
capital requirements. The loan amount can also be used for Agriculture & Allied Activities,
consumption/ domestic /medical purposes (but not for speculative purposes),meeting business
needs.etc. The features of the loan are as follows:

Allahabad Bank Gold Loan Features

A. Any Farmers, Agriculturist, Businessman, other existing clients having satisfactory

dealings with the bank and any other persons introduced by the reputed existing clients are
eligible for taking a loan under this scheme.

B The applicant must be above 18 years of age at the time of applying for the loan. So anyone
who is aged 18 years and above can easily avail the loan if he or she matches the other
mandated criterion, but applicants more than 70 years of age cannot apply for the loan under
this scheme.

C. The loan amount can also be used for Agriculture &Allied Activities, consumption or
domestic or medical purposes (but not for speculative purposes) and for meeting business
needs.

D. Loan can be availed by pledging gold ornaments or jewellery of the applicant. Gold coins
can also be pledged to avail a loan under this scheme.
E. A margin of 25% is maintained with the bank under the loan scheme. It means that the full
value of the pledged ornaments is not granted as loan. Only the 75% value of the pledged
ornaments including gold coins is granted as the loan amount.

F. The loan sanction and disbursal process is fast and simple. The documents required are
simple in nature and after submitting the necessary documents, the loan is issued instantly.
Disbursement can be made either by credit to the Savings Account or Current Account or any
other appropriate account of the borrower.

G. The bank charges low interest rates for Gold Loans so that the customers can afford the
loan repayment easily without having to worry about the high interest rates.

H. The loan is issued for tenure of a maximum of 5 years in case of term loan and in case of
cash credit it is repayable on demand. Thus the individual who avails the loan needs to make
sure that the EMI payments will start immediately from the after the month of loan
disbursement and has to be completed within 5 years.

I.As per banks policy there is no processing fees for processing the loan and there is no pre-
payment penalty if the customer pays the loan earlier than the stipulated time.

J. The valuation of the Gold/ Gold Jewellery and Ornaments/ Gold Coins specially minted
and sold by the Banks offered as security shall be done by the Shroff / Jewel Appraiser
approved by the Bank. The borrower should bear the actual valuation charge

BANK OF BARODA GOLD LOAN SCHEME

Bank of Baroda offers Gold Loan to its customers under two different schemes. While one
scheme is a term loan the other is granted as an overdraft facility. Both the loans have
different features which should be studied in detail. Let us take a look at the different types
of Gold Loans available with the bank.

Types of Gold Loan

 Baroda Trader’s Loan Against the Security of Gold Ornaments / Jewellery

 Baroda Advance Against Gold Ornaments / Jewelleries

BOB Gold Loan Interest Rates

Repayment
Schemes Interest Rate* Processing Fees
Tenure

Baroda Trader’s Maximum 5 year

Loan Against the 0.50% with a for Loans And 1
Base Rate + 3.00%
Security of Gold minimum of Rs.250/ + year in case of
i.e. 12.60%
Ornaments / Service Tax overdraft subject to
Jewellery annual review

Baroda Advance
Against Gold Base Rate + 3.00% 0.50% + Service Tax Maximum 1 year
Ornaments / i.e. 12.60%
Jewelleries

*The above table is indicative and subject to periodic revision.

Baroda Traders Loan Against the Security of Gold Ornaments / Jewelleries

The features of the loan are as follows:

  The loan is available at the Metro or urban centers of the bank only

 The loan is offered as an overdraft facility or as a loan

 The loan is issued to traders for their working capital requirement or for purchasing
equipment for the purpose of development of the shop

 The minimum amount of loan available is Rs.50,000 and the maximum amount of
loan is Rs.2 lakhs. So, traders can avail any amount from Rs.50,000 – Rs.2 lakhs to
ensure a smooth running of their business

 The bank keeps a margin of 25% as a margin and advances the rest 75% of the value
of the gold coins, jewelry or ornaments up to a maximum amount of Rs.2 lakhs

 In case of a loan the maximum repayment period is 60 months or 5 years. In case the
loan is availed as an overdraft facility, the maximum period of repayment is only 12
months or 1 year.

 The processing charges on the loan is 0.50% of the loan amount sanctioned subject to
a minimum of Rs.250 plus service tax as applicable

Eligibility Criteria:

All individuals or joint borrowers, proprietorship or partnership firms who are engaged in
trading activities and have a valid license to support it are eligible to avail the loan.

Rate of Interest:
The rate of interest for the loan is Base Rate + 3.00% = 9.90% + 3.00% = 12.60%

Baroda Advance Against Gold Ornaments / Jewelleries

The features of the loan are as follows:

 The loan is available at the Metro or urban centers of the bank only
  The loan is issued as a Term Loan or a Demand Loan

 The loan can be used for any purpose other than any sort of speculative purposes

 The minimum amount of loan available is Rs.25,000 and the maximum amount of
loan granted to any individual is Rs.10 lakhs

 The bank keeps a margin of 25% as a margin and advances the rest 75% of the value
of the gold coins, jewellery or ornaments up to a maximum amount of Rs.3 lakhs of
loan. For loans above Rs.3 lakhs, the margin requirement increases to 35% and the
amount advanced is 65% of the value of the gold pledged

 The maximum tenure of repayment is 36 months or 3 years. It means that customers

availing the loan should repay the loan along with the interest by a maximum of 3
years.

 The processing charge under the loan is 0.50% of the amount of loan sanctioned plus
the service tax as per the applicable State Laws

Eligibility Criteria:

Any individual can avail this loan if he or she is an owner of gold ornaments or jewelry

Rate of Interest:
The rate of interest for the loan is Base Rate + 3.00% = 9.60% + 3.00% = 12.60

PUNJAB NATIONAL BANK GOLD LOAN SCHEME

 Punjab National Bank offers special schemes for customers to invest or buy gold directly
from the bank. PNB is one of the issuing banks for the Sovereign Gold Bonds scheme. The
bonds are issued by the Reserve Bank of India (RBI) on behalf of the Government of India.
The bonds are issued at designated banks, post offices and through agents. PNB also has loan
against gold schemes that help customers secure a loan to meet financial needs for productive
and non productive purposes.

Sovereign Gold Bond 2015

Sovereign Gold Bonds (SGBs) are an opportunity to invest in gold without holding physical
gold. The SGBs are government securities issued by the Reserve Bank of India on behalf of
the Government of India. These bonds come in denominations of grams of gold. Investors
can purchase a bond by paying the issue price in cash. The bonds will be redeemed upon
maturity in cash.

Features
 Bonds are available in denominations of 1 gram of gold and in multiples of 1
thereafter.
 An investor must purchase at least 2 grams of gold.
 The maximum subscription is limited to 500 grams per person in one fiscal year. In
case of joint holders, this limit applies to the first applicant.
 Nomination facility is available only to the first holder of the bond.
 The price of the bonds are determined based on the previous week’s simple average
closing price of gold of 999 purity as published by the Jewellers Association Ltd (IBJA)
and the India Bullion. The bonds are fixed in Indian Rupees.
 The issue price for this tranche of the bonds has been fixed at Rs.2,684.
 Bonds carry a fixed interest rate of 2.75% p.a. on the initial investment.
 Interest is paid in half yearly instalments. The last instalment shall be paid upon
maturity along with the principal amount.
 The application can be cancelled before the closure of the issue.
 Investors will be issued a holding certificate. The certificate can be converted into a
demat form.
 The bond has an expiration date of 8 years from the date of issue.
 The bonds can be redeemed prematurely on interest payment dates starting from the
5th year of the date of issue of the bonds.
 Interest earned on the bonds is subject to tax as per the provisions of the Income Tax
Act 1961 and capital gain tax.

Benefits
 The bonds can be used as collateral for loan applications. It is accepted by banks,
Non-Banking Financial Companies (NBFC) and financial institutions.
 The bonds can be transferred or gifted provided the person fulfils the eligibility
criteria.
 Tax is not deducted at source.

Eligibility
 Indian residents are eligible to apply.
 Individuals, trusts, universities, charitable institutions and HUFs are eligible.
 The bond can be held jointly.
 Parents and legal guardians can apply on behalf of minors.
 It is mandatory to provide bank account details to enable the payment of interest and
the principal.

Application and Issuance

 Application forms are available at the issuing bank branches, designated post offices
or agents. The form is also available online on the RBI website.
 Applicants must fill out Form A stating the grams of gold, their full name and address.
 KYC documents are required. Applicants can submit any one of the following:
 Passport
 Aadhaar Card
 PAN
 TAN
 Voter ID
 The payment for the bonds can be paid via cash, cheque, ECS, or demand
draft
CENTRAL BANK OF INDIA GOLD LOAN SCHEME
Central Bank of India provides overdraft or demand loans against the security pledge of 22-
carat gold ornaments or against gold coins sold by the bank itself. The amount of finance
offered ranges from a minimum of Rs 10,000 to a maximum of Rs 20 lakhs, the loan tenure is
36 months and the processing fee is 0.25%. For the OD facility, the rate of interest is 11.65%,
while in case of demand loan, it is 10.65%.

The maximum limit to loan per gram is either 70% of the current market price of 22-carat
gold or Rs 2,000 per gram of gold ornaments – whichever is lesser. For the OD facility, the
limit is renewed on an annual basis

FEDERAL BANK OF INDIA GOLD LOAN SCHEME

Gold loans by Federal Bank can be availed by customers for up to an amount of Rs 75 lakhs,
carrying interest rates between 13-13.50% and having repayment tenure of 12 months.
Borrowers are free to repay the loan either as a lump sum amount or in installments. Here,
22-carat gold ornaments are pledged as security.

Federal Bank does not levy any hidden charges or heavy penalties, while also offering hassle-
free loan processing within just a few minutes.
 HDFC BANK GOLD LOAN SCHEME

HDFC is the only bank offering gold loans without documentation. They also offer the
convenience of over-the-counter loan disbursement.

In HDFC’s Sampoorna Bharosa gold loan scheme, gold loans for less than Rs 50,000 are
available for rural customers, while for urban areas, the minimum loan amount is Rs 50,000.

Interest rates start at 10%. For HDFC customers, even lower interest rates are available.
Moreover, special rates are offered to women customers and preferred banking customers
such as Imperia and Classic.

HDFC charges a minimum loan-processing fee of 0.50% of the loan amount. Additionally,
HDFC has a valuation charge, stamp duty, applicable service charges, and up to 1% charges
for prepayment/late payment.

AXIS BANK GOLD LOAN SCHEME

Any individual aged between 18-75 years qualifies for a gold loan with Axis Bank. The bank
offers the convenience of same-day loan disbursement.

Axis has Rs 4 lakh loan limit for new customers, while for existing customers, i.e. account
holders, the gold loan limit ranges from a minimum of Rs 25,001 going up to a maximum of
Rs 20 lakhs. Interest rates start from 14.50% going up to 17% per annum. The bank collects
Rs 500 as valuation charges and levies 1% processing fee.

Axis Bank offers flexible loan tenure ranging from 6 to 36 months. Further, customers may
foreclose the loan at any time without having to pay prepayment/part payment penalties.
However, in case of late payments, a 2% charge per month is levied on the overdue amount
 TOP NBFC's that OFFERS GOLD LOAN

MANAPPURAM GOLD LOAN FINANCE SCHEME

Manappuram Finance limited is a non-banking financial company founded in 1949 in

Valapad, Kerala by P.V Padmanbhan. Presently, the company is headed by V.P Nandakumar,
it has over 3200+ branches in over 25 states. The flagship company MAGFIL, commenced its
operation in 1992. Earlier the company’s services included money lending and pawn broking
on a modest scale. Now the company offers a range of services which include vehicle finance
insurance, gold loans, distribution of mutual funds, foreign exchange services and other
financial products.

Here are some key features of Manappuram gold loan:

 Low interest rates: Lower interest rates are the primary reason, why manappuram
gold loan is among the most preferred options of gold loan. Also you just need to pay
interest for the exact period of loan tenure up to exact number of days.

 Minimal documentation: There are no time-consuming formalities involved, you can

avail Manappuram gold loan with minimum requirements. Only one recent ID and
adress proof is required.

 Quick disbursement: With Manappuram gold loan, you can avail instant cash. As
soon as you pledge your gold, you will be allowed to draw cash instantly. Loan gets
sanctioned to you within few seconds
  High loan amount: You can avail high loan amount depending on the purity and
weight of the gold which you have pledged. Maximum loan amount to be sanctioned
is 1 crore.

 No prepayment charges: Manappuram gold loan does not levies any prepayment
charges. So if you decide to prepay your loan before due date, then you do not need to
pay any extra prepayment charges for doing so.

 Multiple schemes: Manappuram Finance understands the needs of different people

with different incomes. That is why it offers a range of gold loan schemes to choose
from. You can always choose the one which fits your budget and financial needs.

Eligibility Criteria

Anyone who owns gold can avail Manappuram gold loan. In order to get the loan sanctioned,
an applicant has to submit their gold which should be within the range of 18 to 24 carats. The
loan amount that is to be sanctioned will be based on the valuation of gold; lenders would
check the purity of gold before sanctioning a gold loan. If the pledged gold ornaments have
any stones fixed/fitted in it, then weight of such stones would be neglected for precise
valuation.

However, minors (below 18) are not eligible to avail gold loan.
Manappuram Gold Loan Interest Rates

Manappuram Finance ltd. offers Manappuram gold loan at attractive interest rates, which
makes it highly affordable. The base rate is 12% and because of high loan to value (LTV),
additional interest which ranges from 3% to 12% is charged above base rate. Maximum
interest rate is fixed at 26% P.A. and if you miss your scheduled loan payments then a penal
interest of 3% P.A. (above the actual rate of interest) would be charged on the overdue
amount. The interest rates will vary from time to time.
 MUTHOOT FINANCE GOLD LOAN SCHEME

The gold loan offered by Muthoot Finance has the below-mentioned features:

 In the Muthoot Finance Gold Loan, a loan applicant can pledge any type of gold
jewellery or ornaments. This includes various jewellery items such as necklaces,
bangles bracelets, rings, kardahs, etc.

 In the Muthoot Gold Loan, a loan applicant cannot pledge against gold bars, gold
funds (gold Exchange Traded Funds), gold coins, and specially minted gold coins of
banks that weight an excess of 50 grams.

 The minimum age of the loan applicant for the gold loan has to be 18 years.

 The purpose of the Muthoot Gold Loan is simple; it is to provide instant cash to
overcome the short-term financial requirements of a person. These requirements may
be such as money needed to fund a wedding or thread ceremony, money needed to
fund medical expenses, money needed to fund school or college fees, money needed
to pay for consumer durables or electrical or household items, etc.

 Muthoot Finance processes the application made for availing the loan and disburses
the loan in the fastest possible time-frame. For sanctioning of the loan, the documents
of the applicant are of utmost importance and the requirements in terms of documents
are simple. Documents such as the applicants’ Passport or Pan Card or Voter’s ID
card, or Driving License are the kind of documents which are required. These are
easily available with most of the applicants and thus the documentation process
 becomes simple. Muthoot Finance has in-house gold valuation experts at their
branches, so the processing time of the loan can be as short as one hour.

 Gold Loan from Muthoot Finance levies a reasonably priced processing fee and
ensures that its customers are not subjected to any hidden charges as they inform their
customers about all fees and charges from the beginning.

 The minimum amount for which one can take a Gold loan is Rs.1500 and thereafter
for higher amounts. The loan limit is stretched to Rs.1 crore for the Muthoot Gold
loan.

 The loan has a feature of easy liquidity of the gold pledged to take the loan. By
liquidity it means that the applicant can obtain his gold assets back anytime by paying
off the loan in full. This is called prepayment and there is no prepayment penalty
charged on the loan. After completing the outstanding requirement of the loan, the
gold can be liquidated.

 Walk-in customers who choose to visit the bank’s branch to avail of the loan armed
with the proper and required documents can avail a loan within an hour. Since the
required documents for taking the loan are easily available and simple in nature, they
can be submitted along with the application form and the loan can be availed within
the shortest duration of 3 minutes only.

 The bank provides utmost security of the gold assets which are pledged with it. The
pledged gold is kept under a three-layered security which makes the gold completely
secure and risk-free

 The interest rate that Muthoot Finance charges is somewhat similar with that charged
by other banks and financial institutions. The rates of interestthat are charged are
completely competitive so that customers may prefer Muthoot Finance rather than
other banks or banking institutions.

 Borrowers of the gold loan from Muthoot Finance have the option of pre-payment.
There are no penalty charges if the pre-payment option is availed by the borrower.
  Muthoot Finance boasts of in-house gold evaluation at its branches. Thus, the
processing time for issuing the loan is significantly expedited.

 The response time for customer service is shorter and quicker as compared to other
banks and banking institutions.

 The tenure can be as low as one day to 15 months for normal schemes and 36 months
for EMI-based schemes. It varies from scheme to scheme.

 There are no fixed margins in the Muthoot Gold Loan scheme.

 There are two options open for repayment to gold loan applicants. One is Bullet
Repayment, in this option, simple interest is paid at monthly or quarterly intervals and
the principal is repaid on the maturity date. The other option is repayment by EMIs or
Equated Monthly Installments. In this option, equal instalments comprising of the
interest on a declining basis and a portion of the principal amount is paid every month
by the borrower.

 The processing fees are to a maximum limit of 1% of total loan amount sanctioned.

Documentation Required for Muthoot Finance Gold Loan

To avail of a Muthoot Finance Gold Loan, the loan applicant has to submit the following
documents so that his or her loan application is accepted and processed.

o A Passport which should be valid – the passport of the applicant would contain all
the required information of the customer like the name, address, age, etc. and as such
is an important document. A valid passport is one which is not expired.

o Driving License which is valid – apart from the passport, the driving license also
contains the important details of the customer and is accepted as a valid document for
the loan. The license should however, be valid and not expired.
 o Election Card –also called a voter’s ID card which is issued by the Election
Commission of India can also be accepted as a valid identity proof of the applicant

o Aadhar Card – the card is issued by the UIDAI and it contains the required personal
details of the customer including his biometrics. The card can be taken as a valid
identity proof for the loan

o PAN Card –as per the relevant KYC norms which have been mandated by the RBI,
the PAN number of the individual would be required when availing of the loan. This
number is verified from the individual’s PAN card.

Fees and Charges for Muthoot Gold Loan

Mentioned hereunder is the list of the fees and charges applicable upon availing the Muthoot
Gold Loan:

Fees Amount to be paid

Loan Processing Charges Up to 1% of total loan amount
Foreclosure Charges Nil
Stamp Duty & other Statutory Charges Corresponding to the applicable State Laws
Pre-payment or Part-payment charges Nil
The above-mentioned fees and charges does not include the service taxes and any other
Government taxes which would be additionally charged on the loan.

Muthoot Gold Loan Interest Rates

There are different rates based on different schemes that are offered by Muthoot Finance. Muthoot
Finance offers its gold loans on a fixed rate basis. Fixed rate basis means that the rate of interest
remains fixed over the entire loan tenure.

Loan Tenure of the Muthoot Finance Gold

Rate of Interest (%)
Loan
Loan Tenure of up to 1 month 12.0% onwards
Loan Tenure of over 1 month to 3 months 15.0% onwards
Loan Tenure of over 3 months to 12 months 20% onwards
Loan Tenure of more than 12 months 21.0% onward

The survey was conducted with 100 respondent's in 'BANK OF INDIA' sonepat branch.
Their response with respect to data analysis and interpretation are as follows:-

Q1-) What is the Occupation of the respondents included in this survey?

Response Pattern No. of Respondents Percentage

Government & Semi 50 50%
Government
Private 30 30%
Business 20 20%
Total 100 100%
 OCCUPATION
120

100

80
OCCUPATION
60

40

20

0
GOVERNMENT AND SEMI GOVERNMENT BUSINESS

INTERPRETATION

 1/2th respondents are engaged in Government and Semi Government services

 3/10th respondents are engaged in Private Sector
 1/5th respondents are engaged in Business Activities

Q2-) Age of the respondent's

Response Pattern No. of Respondents Share%

18-22 40 40%
22-32 20 20%
32-40 10 10%
Above 40 30 30%
Total 100 100%
 AGE
120

100

80
AGE
60

40

20

0
18-22 22-32 32-40 Above 40 TOTAL

INTERPRETATION

 2/5th respondents are of age limit between 18-22 years

 1/5th respondents are of age limit between 22-32 years
 1/10th respondents are of age limit between 32-40 years
 3/10th respondents are of age limit of above 40 years

Q3-) Gender of the respondents

Response Pattern No. of respondents Percentage

Male 60 60%
Female 40 40%
Total 100 100%
 GENDER
120

100

80
Gender
60

40

20

0
Male Female TOTAL

INTERPRETATION

 3/5th of the respondents are Male

 2/5th of the respondents are Female

Q4-) Education level of the respondents

Response Pattern No. of Respondents Percentage

Higher Secondary 20 20%
Graduation 50 50%
Post Graduation 30 30%
Total 100 100%
 EDUCATION LEVEL
120

100

80
EDUCATION LEVEL
60

40

20

0
Higher Secondary Graduation Post Graduation Total

INTERPRETATION

 1/5th of the respondents have passed Higher Secondary

 1/2th of the respondents have passed Graduation
 3/10th of the respondents have passed Post Graduation

Q5-) Martial Status of the respondents

Response Pattern No. of Respondents Percentage

Married 80 80%
Unmarried 20 20%
Total 100 100%
 MARTIAL STATUS
120

100

80
MARTIAL STATUS
60

40

20

0
MARRIED UNMARRIED TOTAL

INTERPRETATION

 4/5th of the respondents are Married

 1/5th of the respondents are Unmarried

Q6-) Annual Income of the respondents:-

Response Pattern No. of Respondents Percentage

1,00,000 - 2,00,000 50 50%
2,10,000 - 3,00,000 30 30%
3,10,000 - 4,00,000 15 15%
Above 4,00,000 5 5%
Total 100 100%
 ANNUAL INCOME
120

100

80

60

40 ANNUAL INCOME

20

0
0 0 0 0 l
00 00 00 00 ta
0, 0, 0, 0, To
0 0 0 0
2, 3, 4, 4,
0
- 0- 0- ov
e
00 00 00 Ab
0, 1 0, 1 0,
1,
0 2, 3,

INTERPRETATIONS:-

 1/2th respondents are of annual income between 1,00,000 - 2,00,000

 3/10th respondents are of annual income between 2,10,000 - 3,00,000
 3/20th respondents are of annual income between 3,10,000 - 4,00,000
 1/20th respondents are of annual income between annual income of above 4,00,000

Q7-) How many times in a year you have emergency requirement of money?

Response Pattern No. of Respondents Percentage%

1 40 40%
2 20 20%
3 28 28%
4 12 12%
Total 100 100%
 EMERGENCY REQUIREMENT OF MONEY
120

100

80
EMERGENCY REQUIREMENT OF
MONEY
60

40

20

0
1 TIME 2 TIMES 3 TIMES 4 TIMES TOTAL

INTERPRETATION:-

 2/5th of the respondents have the emergency requirement of money only 1 time in a
year
 1/5th of the respondents have the emergency requirement of money 2 times in a year
 7/25th of the respondents have the emergency requirement of money 3 times in a year
 3/25th of the respondents have the emergency requirement of money 4 times in a year

Q8-) Amount of Gold loan taken from Bank of India

Gold loan Amount No. of Respondents Percentage

1,00,000 - 2,00,000 40 40%
2,10,000 - 3,00,000 20 20%
3,10,000 - 4,00,000 30 30%
Above 4,00,000 10 10%
Total 100 100%
 AMOUNT OF GOLD LOAN
120

100

80

60

40 AMOUNT OF GOLD LOAN

20

0
0 0 0 0 l
00 00 00 00 ta
0, 0, 0, 0, To
0 0 0 0
2, 3, 4, 4,
0 0- 0 0- 0 0- ov
e
,0 ,0 ,0 Ab
,00 ,10 ,10
1 2 3

INTERPRETATIONS:-

 2/5th of respondents have taken Gold loan of amount 1,00,000 - 2,00,000

 1/5th of respondents have taken Gold loan of amount 2,10,000 - 3,00,000
 3/10th of respondents have taken Gold loan of amount 3,10,000 - 4,00,000
 1/10th of respondents have taken Gold loan of amount above 4,00,000

Q9-) Which is the safest instrument for saving and investment?

Response Pattern Number of respondents Percentage

Saving Bank A/c 40 40%
Insurance 20 20%
Real Estate 15 15%
Stock and Shares 25 25%
Total 100 100%
 Safest Instrument for Saving and Investment
120

100

80

60
Safest Instrument for Saving and
40 Investment

20

0
c ce te s l
k A/ an sta a re To
ta
ur E Sh
an s a l
gB In Re a nd
n
vi ck
Sa Sto

INTERPRETATION:-

 2/5th of the respondents considers Saving Bank A/c the safest instrument
 1/5th of the respondents considers Insurance as the safest instrument
 3/20th of the respondents considers Real estate as the safest instrument
 1/4th of the respondents considers Stock and Shares as the safest instrument

Q10-) What is the purpose of availing Gold loan scheme?

Response Pattern No. of Respondents Percentage
Meeting Medical Expenses 60 60%
Consumption meeting 20 30%
Purchase of Household 15 15%
assests
Education Needs 5 5%
Total 100 100%

PURPOSE OF AVAILING GOLD LOAN

120
100
80
60
40
20 PURPOSE OF AVAILING GOLD
LOAN
0

INTERPRETATION:-

 3/5th of the respondents avail gold loan facility to meet medical expenses
 1/5th of the respondents avail gold loan facility for consumption meeting
 3/20th of the respondents avail gold loan facility for purchase of household assests
 1/20th of the respondents avail gold loan facility to fulfill education needs

Q11-) From where have you get information about Gold loan scheme?

Response Pattern No. of Respondents Percentage

Newspapers 40 40%
Magazines 30 30%
Hoarding/banners 10 10%
Word of Mouth 20 20%
Total 100 100%

Source of Information about Gold loan

120

100

80

60
Source of Information about
40 Gold loan

20

0
s es s th l
p er in ner ou To
ta
pa a z an M
ws ag /b of
Ne M i ng or
d
d
oar W
H

INTERPRETATION:-

 2/5th of the respondents got the information about the Gold loan from Newspapers
 3/10th of the respondents got the information about the Gold loan from Magazines
 1/10th of the respondents got the information about the Gold loan from
Hoarding/banners
 1/5th of the respondents got the information about the Gold loan from Word of Mouth

Q12-) Have you taken Gold loan before?

Response Pattern No. of respondents Percentage

Yes 60 60%
No 40 40%
Total 100 100%
 NO. OF RESPONDENTS
120

100

80
NO. OF RESPONDENTS
60

40

20

0
YES NO TOTAL

INTERPRETATION:-

 3/5th of the respondents have taken Gold loan before

 2/5th of the respondents have not taken Gold loan before

Q13-) Are you satisfied with the rate of interest that the bank charges for Gold loan?

Response Pattern No. of respondents Percentage

Yes 90 90%
No 10 10%
Total 100 100%
 SATISFACTION ABOUT THE RATE OF INTEREST
120

100

80
SATISFACTION ABOUT THE RATE
OF INTEREST
60

40

20

0
YES NO TOTAL

INTERPRETATION:-

 3/5th of the respondents are satisfied with the rate of interest that the bank provides
 1/10th of the respondents are not satisfied with the rate of interest that the bank
provides

Q14-) Justify the reason for choosing Bank of India for taking Gold loan service?

Response Pattern No. of Respondents Percentage

Government Organisation 50 50%
Interest Rate 15 15%
Simple Procedure 10 10%
Good Customer Service 25 25%
Total 100 100%
 REASON FOR CHOOSING BANK OF INDIA
120

100

80
REASON FOR CHOOSING BANK
OF INDIA
60

40

20

0
Government Organisation Simple Procedure Total

INTERPRETATION:-

 1/2th of the respondents states that they take Gold loan from this bank because it is
Government Organisation
 3/20th of the respondents states that they take Gold loan from this bank due to the
Interest Rate
 1/10th of the respondents states that they take Gold loan from this bank as the
Procedure of this bank is simple
 1/4th of the respondents states that they take Gold loan from this bank as the bank
provides Good customer service

Q15-) Provide remarks according to your opinion with respect to all the operational
procedure such as Eligibility , tenure period , documentation , delivery e.t.c for Gold
loan service provided by the Bank

Response Pattern No. of respondents Percentage

Very Convenient 70 70%
Satisfactory 25 25%
Quite Complicated 5 5%
Total 100 100%
 REMARKS OF RESPONDENTS
120

100

80
REMARKS OF RESPONDENTS
60

40

20

0
Very Convenient Satisfactory Quite Complicated Total

INTERPRETATION:-

 7/10th of the respondents mentions that they are convenient with all the the operational
procedure for Gold loan of the bank
 1/4th of the respondents are satisfied with all the operational procedure for Gold loan
of the bank
 1/20th of the respondents are satisfied with all the operational procedure for Gold loan
of the bank

Q16-) Do you believe that Nationalised banks provides better service than Private
Banks?

Response Pattern No. of Respondents Percentage

Yes 90 90%
No 10 10%
Total 100 100%
 NO. OF PATTERN
120

100

80
NO. OF PATTERN
60

40

20

0
YES NO TOTAL

INTERPRETATION:-

 9/10th of the respondents mentions that Nationalised banks provides better service
than Private banks
 1/10th of the respondents mentions that Nationalised banks does not provide better
service than Private banks