Final Draft

A COMPARATIVE STUDY ON BORROWERS PERCEPTION TOWARDS
PUBLIC SECTOR BANKS AND NBFC’s IN AVAILING GOLD LOAN WITH

SPECIAL REFERENCE TO MADURAI DISTRICT
Project submitted in partial fulfillment of the requirement for the Degree of Master of
Commerce
Researcher
A.ANGEL
17PGCE01
Supervisor
Dr. P. VANITHA MALARVIZHI., M.Com., M.Phil., Ph.D.
Associate professor
College with Potential for Excellence
Reaccredited (3rd cycle) by NAAC with “A” Grade
(CGPA 3.44 on a 4 point scale)
Department of Commerce
Lady Doak College
Madurai
March 2019
A COMPARATIVE STUDY ON BORROWERS PERCEPTION TOWARDS
PUBLIC SECTOR BANKS AND NBFC’s IN AVAILING GOLD LOAN WITH
SPECIAL REFERENCE TO MADURAI DISTRICT
Project submitted in partial fulfillment of the requirement for the Degree of Master of
Commerce
Researcher
A.ANGEL
17PGCE01
Supervisor
Associate professor
College with Potential for Excellence
Reaccredited (3rd cycle) by NAAC with “A” Grade
(CGPA 3.44 on a 4 point scale)
Department of Commerce
Lady Doak College
Madurai
March 2019
Associate professor,
Department of Commerce,
Lady Doak College,
Madurai -625002.
CERTIFICATE
This is to certify that the project titled “A comparative study on Borrowers

Perception towards Public sector bank and NBFC’s in availing gold loan with special
reference to Madurai District” submitted by Miss. A.ANGEL (17PGCE01), in partial
fulfillment of the requirement for the degree of Master of Commerce of Lady Doak
College is done by her during the period 2018-2019, under my guidance and supervision
and this project or any part thereof has not been submitted elsewhere for any other
degree, diploma, associateship, fellowship or other similar title.
Place: Madurai
Date:
Countersigned by Signature of
Supervisor
Dr.P.VANITHA MALARVIZHI
Head of the Department of Commerce
Signature of the External Examiner

A.ANGEL
17PGCE01,
Master of Commerce.
Department of Commerce,
Lady Doak College,
Madurai – 625002.
DECLARATION
I hereby declare that the project entitled “A Comparative Study on Borrowers

Perception Towards Public Sector Bank and NBFC’s in availing Gold loan with
special reference to Madurai District” submitted for the degree of Master of
Commerce is my original research work and it has not previously formed the basis for the
award of any degree, diploma, fellowship or other similar title.
Place: Madurai Signature of

Researcher
Date:
(A.ANGEL)
Countersigned by Guide Head of the Department of

Commerce
ACKNOWLEDGEMENT
I praise and thank GOD ALMIGHTY for giving me good

health and wisdom to complete this fact finding task successfully.
I owe a deep sense of gratitude to Dr. CHRISTIANNA SINGH
M.A., M.Phil, PGDCA., PhD., Principal and Secretary, Lady Doak
College, Madurai, for giving me an opportunity to pursue the study.
It is of gratification for me to thank Dr.ROSY GODWIN,

M.com, M.Phil, B.Ed., PGDCA., Ph.D., Professor and Head of the
Department of Commerce, for her constant support in doing my research
work.
I whole heartedly express my deep sense of gratitude toDr.P.

VANITHA MALARVIZHI., M.Com., M.Phil. Ph.D. Assistant
Professor in Commerce, for her invaluable guidance, moral support and
encouragement at every stage of this exploratory and analytical study. I
am sure that without her able and scholarly guidance, this could not have
assumed its present shape.
I am also very thankful to all staff members of the Department

of Commerce for their co-operation, their support to complete the
dissertation.
I also place on record my special thanks to family and word of
appreciation to my parents, brother, sister and friends for their prayers
and support throughout my research work without them my work would
not been completed.
A.ANGEL
(17PGCE01)
TABLE OF CONTENTS
CHAPTER TITLE PAGE
NO NUMBE
R
Acknowledgment i
List of tables ii-v
List of figures vi-vii
CHAPTERS
I Introduction and design of the study 1-6
II Profile of Public Sector Bank and NBFC’s 13-36
III Analysis and Interpretation 37-77
IV Summary of Findings, Suggestion and Conclusion 78-84
Bibliography and Webliography viii-x
Appendix- Questionnaire xi-xv

LIST OF TABLES
S.NO TITLE PAGE
NUMBER
2.5 Number of Banking sector and NBFC’s in India
2.11 Gold Loan Schemes
2.12.2 Features of Gold loan of SBI
2.12.4 SBI gold loan rate
2.12.6 Features of Gold loan of Canara Bank
2.12.8 Canara Bank Gold Loan Rate
2.12.10 Features of Punjab National Bank Gold Loan
2.13.6 Muthoot Gold Loan eligibility Criteria
2.13.8 Features of Manappuram Gold loan
2.13.9 Fees and charges of Manappuram Gold Loan
PUBLIC SECTOR BANK
3.2.1 Age of the respondents
3.2.2 Gender of the respondents
3.2.3 Educational qualification of the respondents
3.2.4 Profession of the respondents
3.2.5 Monthly income of the Respondents
3.2.6 Financial institution

NON-BANKING FINANCING COMPANIES
COMPARATIVE STUDY ON PUBLIC SECTOR BANK AND NBFC’s
3.3.1 Years of holding account
3.3.2 Period of gold loan
3.3.3 Amount of gold loan
3.3.4 Gold loan margin
3.3.5 Time take to disburse gold loan
3.3.6 Person influenced to avail gold loan
3.3.7 Reason for availing gold loan
3.3.8 Interest rates
3.3.9 Mode of repayment
3.3.10 Preference at time of emergency
3.3.11 Reasons to prefer Gold Loan
3.3.12 Types of jewels pledged
3.3.13 Difficulties faced to repay

Regular remainders sent
3.3.14
3.3.15 Lost jewels
3.3.16 Suggestions to repay
3.4.1 Satisfaction level of respondents both in public sector bank

and NBFC’s
3.4.2 Problems faced while availing gold loan
3.5.1 Chi-square test between gender and satisfaction level for

public sector bank
3.5.2 Chi-square test between gender and satisfaction level for
NBFC’s
3.6.1 One way anova between age and satisfaction level for public
sector bank
3.6.2 One way anova between age and satisfaction level for
NBFC’s
LIST OF
FIGURES
S.NO TITLE PAGE
NUMBER
2.7.1 Growth of lending practices in Indian banking sector
2.7.2 Growth of deposits in Indian Banking sector
2.8.1 Share of Organized gold loan market-2018
2.9.1 Organized gold loan market projection
PUBLIC SECTOR BANK

COMPARATIVE STUDY ON PUBLIC SECTOR BANK AND NBFC’s
3.3.1 Years of holding account
3.3.2 Period of gold loan
3.3.3 Amount of gold loan
3.3.4 Gold loan margin
3.3.5 Time take to disburse gold loan
3.3.6 Person influenced to avail gold loan
3.3.7 Reason for availing gold loan
3.3.8 Interest rates
3.3.9 Mode of repayment
3.3.10 Preference at time of emergency
3.3.11 Reasons to prefer Gold Loan
3.3.12 Types of jewels pledged
3.3.13 Difficulties faced to repay
3.3.14 Regular remainders sent
3.3.15 Lost jewels
3.3.16 Suggestions to repay

CHAPTER 1- INTRODUCTION AND DESIGN OF THE STUDY
1.1 INTRODUCTION
The Indian financial system comprises of financial institutions, financial markets, financial
Instrument and services. Financial institutions act as mobilizers and depositories of savings.
They also provide various financial services to the community. Financial institutions are divided
into banking and non-banking corporations. Banking sector reforms in India strive to increase
efficiency and profitability of the banking institutions. As per Section 5(b) of the Banking
Regulation Act, 1949, "banking means the accepting, for the purpose of lending or
investment, of deposits of money from the public, repayable on demand or otherwise, and
withdraw able by cheque, draft, order or otherwise.” Banking sector is further diversified as
Public sector bank and Private sector bank. Public sector in the banking industry emerged with
the nationalization of Imperial Bank of India (1921). The private-sector banks are banks where
greater parts of stake or equity are held by the private shareholders and not by government.
Thus, bank is an intermediary which handles other people's money both for their advantage and
to its own profit. On the other side non-banking financial intermediaries also supplement the
functions of the banking institutions. NBFC’s are financial intermediaries that are engaged
primarily in the business of accepting deposits and delivering credit. NBFC’s supplements the
role of banking sector in meeting the increasing financial needs of the corporate sector, and
delivering credit to the unorganized sectors and to small local borrowers. All these financial
institution offers many types of loan to the community. But at present, among all type of loans
offered by banks and NBFC’s, gold loan seems to be most preferred loan by the public due to its
simple features. Gold loan is preferred mostly from Public sector banks and NBFC’s when
compared to Private sector banks.
Gold loans were considered as the last resort for borrowers but that view is fast
changing, as most of the jewelry owners view it as an asset to get smart loans. The government
too views the gold loans as an effective means of meeting the demand for micro-finance in India.
India is one of the biggest markets for gold and gold loans. With an increase in prices of gold in
India, borrowers have found that they can raise more money with the same collateral. With the
specific guideline from RBI, each bank may fix its rate for gold, which reflects the market price.
Lenders provide loans by securing gold assets as collateral in the form of jewels. Gold loan is an
age-old practice by money lenders but now it has been institutionalized by the banks. Earlier,
gold loans were provided only by informal market players, however there is a change in the
scenario as a pool of specialized financial institutions called Non- Banking Financing Companies
have emerged to meet out the financial need of low-income households. After the introduction of
Non-Banking Financing Companies, these lenders process the loan in less than couple of hours,
where public sector bank may take up a day to issue gold loan. Now, gold loan can be availed
from any co-operative banks, public sector banks, private sector banks and Non-Banking
Financing Companies.
1.2 STATEMENT OF THE PROBLEM
The problem faced by the people in current situation is increase in price. Even the demand for
gold also increases. The investment made in gold act as future liquidity purposes also. There are
various reasons for the increase of gold loan. Increase of NBFC’s in India, Agricultural laborers
and farmers have been increasingly availing gold loans for their seasonal credit requirements.
The increase in policy rate hikes, the gloom in the micro-finance sector, constricted availability
of retail personal loans from banks also could have contributed to the rapid increase in the
demand for gold loans in recent years. The rapid rise of volume in transactions has also
witnessed rise in customer complaints. The phenomenal growth of gold loan business coincided
with large imports of gold, large scale financing of NBFC’s by banks make apprehension that
overall systemic stability is threatened. So that is the problem for the study.
1.3 REVIEW OF LITERATURE
Churiwal and Shreni (2012)1 In their study titled “Overview of growing gold loan demands”.
Their major objective was to highlight various aspects of Gold Loan from traditional pawn
broker to shifting of Gold Loan to NBFC. They also explained the emerging importance of the
Gold Loan to the borrowers as well as lender due to its movement from traditional lenders to
organized lenders. They analyzed important factors like the rise in borrowing costs due to
removal of agricultural sector status on Loans. They finally concluded that NBFC’s are growing
through Gold Loan compare to organize banks. It has become the effective means of meeting the
demand for Micro-finance in India.
1
Churiwal Amit and ShreniAshish August (2012). Surveying the Indian Gold Loan Market
Publication Cognizant 20-20.
Dnyanesh N (2012)2 In his research titled “Organized Gold Loan market”. His main objectives
was to focus on tremendous growth owing to the changing consumer Perception about Gold
Loan and rising Loan requirement. The Perception of consumers towards Gold Loan has changed
drastically. The author has analyzed the Changing consumer Perception and rising Loan
requirement of consumers. He finally concluded that has pointed out the growing demand of
rising Loan requirement.
Nandakumar P (2010)3 In his research titled “Organized Gold Loan segment a potential a
vehicle for social transformation”. The main objective was to find the distress faced by Indian
Farmers needs to move on multiple fronts in extending timely credit to the rural masses. In rural
areas, as there was lack of access to bank, poor people started investing in gold. The author has
presented and analyzed the distress and lack of access to banks in rural areas by the poor people.
Davy (2010)4 In his research titled “Market survey of Gold Loan” his objective was to state a
simple modification of the Age-old practice of money lenders and has been institutionalized by
the banks now. In this Loan, one has to deposit the household gold in the form of jewelry with
the bank or financing Agency and get a Loan up to 60 per cent of the gold deposited. He
concluded that banks may expand their gold jewelry loan portfolio to monetize the stock of idle
gold and there should not be any limit on advances against gold jewelry and gold coins by
individuals.
Nair Vinay and Verma Geeta (2010)5 In their research, titled “Gold as an investment
alternative”. Their main objective was to find , the savings habits of the poor and lower classes
which differ significantly from the richer sections. The poor continue to invest their savings
mainly in gold. In fact, in rural areas, this is often a necessity because of lack of access to banks.
Also, there are strong cultural factors at work in India, which make gold not only a desirable but
2
Nair Dnaynesh N (2012). Changing Consumer Perception Driving India’s Organised Gold
Loan Market,Mumbai, India, International Research Review,para7.
3
Nandakumar V.P.(July29, 2010)bSocial relevance of Gold Loan. Gold Loan gain respect
Mumbai, India. Retrieved from www.global review.com.,p.12.
4
Davy (2010). Economics Times dated (23-3-2010) Edited by Joby Puthuparampil Johnson, p8.
5
Nair Vinay and Verma Geeta (2010) .et al.Market Survey: A study on the attitude towards Gold
Loan, Mumbai, India, International global review,p.7.
also a necessary asset to hold. The author concluded that the savings habits of our poor and lower
classes in gold, which can be added advantages in the Loan market that is considered as Loan
asset too.
Richard Heaney, Nicholas Wai & Julie K. (2012)6 In their research titled “Hedges in gold
loans”. Their main objective was to explain the implicit hedge in gold loans commits
management to hedging and so greater leverage is expected for producers adopting gold loans.
The results from the analysis were consistent with this hypothesis. This paper tests the
hypothesis that gold producers exhibit greater leverage where gold loans were used. As the
choice of gold producers and the study period essentially it avoids debt tax shield effects, this
paper concluded on information asymmetry and agency costs explanations for leverage.
Harini Subramanian (2011)7 In her article titled “Gold loan: A more precious debt option” and
the main objective was to find whether there were any reason for borrowers to pledge gold
jewelry to offer as collateral for personal loan. They were able to found that the amount of
documentation and the excessive verifications before borrowers’ personal loan gets processed.
Thus he concluded that if borrowers’ prefer gold loan they can easily avail loan from bank prior
to personal loan.
George Alexander Muthoot (2013)8 In his study titled “Safety measures of borrowers in
availing gold loan”. The main objective of this study was to find the problems faced by the
borrowers irrespective of the safety measure. In his study he noted that the large gold loan
NBFCs were almost like banks and were well-governed, with established policies and
procedures. Their branches have sufficient security measures such as strong rooms, CCTV
cameras, guards and also specific procedures regarding access, in order to ensure safety of the
collateral which they pledge in form of gold. Besides, they insure the gold against theft and other
unforeseen events. Handling and storage is also done carefully, so as to avoid damage to the
ornaments. The reputation of the lenders and transparent procedures followed by them assures
6
Richard Heaney, Nicholas Wai & Julie K. Walker, Accounting & Finance, Vol. 37, Issue 2, pp.
129-145, 1997
7
Harini Subramani- Business Standard May 24, 2010.
8
George Alexander Muthoot (2013) gold NBFCs offer potential borrowers superior advantages
in terms of cost and security”, business line, page 1-2
borrowers of a fair deal. The author thus concluded that, when a borrower approaches a lender,
they calculate the costs not only in terms of interest, but also in terms of security, KYC,
documentation procedures, appraising methods, auction procedures.
1.4 SIGNIFICANCE OF THE STUDY
Gold loans have been a part of investments since a long time now. Many people have chosen the
investment avenue to meet their short-term funding needs. However, over the past decade, gold
prices have been increased manifold. With this rise in gold prices, the popularity of gold loans
has also been increased; it has now become a larger investment sector now. Bulks of gold loans
are taken to meet emergency expenditure and are typically repaid within a few months. The
present paper tries to gain an understanding about the gold loan market and also tries to know the
attitude of the borrowers towards the gold loans.
1.5 OBJECTIVES OF THE STUDY
The objectives of the study are
1. To compare the lending practices of gold loan in banking and NBFC’s.
2. To analyze the factors influencing the borrowers to avail gold loan from banking and
NBFC’s.
3. To analyze the problems faced by the borrowers while availing gold loan from banking
and NBFC’s.
4. To study the level of satisfaction of lending services provided by banking and NBFC’s.
1.6 SCOPE OF THE STUDY

The present study has been undertaken to analyze the borrower’s perception in availing gold loan
from Public sector bank and non-banking financing companies in Madurai district.
1.7 OPERATIONAL DEFINITIONS
1.7.1 Bank
Bank is an establishment authorized by the government to accept deposits from the public,
pay interest against deposits, clear cheques, make loans, act as an intermediary in financial
transactions and provide other financial services to their customers.
1.7.2 NBFC’s
Non-banking financial companies (NBFC’s) are financial institutions that offer various banking
services, but do not have a banking license. NBFC’s can offer banking services such as loans and
credit facilities, retirement planning, money markets, underwriting and merger activities.
1.7.3 Loan
A loan is the lending of money to one or more individuals, organizations and other entities.
The borrower incurs a debt and is usually liable to pay interest on that debt until it is repaid in
full and also to repay the principal amount borrowed.
1.7.4 Gold loan
When a customer pledges gold as collateral for taking a loan, it is known as a gold loan. The
bank/lender uses the gold as security against potential payment default by the customer.
The loan amount sanctioned is a certain percentage of the value of the gold that has been
pledged.
1.7.5 Borrower
A person who borrows money from a bank by pledging gold as security is said to be a borrower.
The borrower is charged interest from the time the loan is disbursed until it is paid back in full.
1.7.6 Interest
Interest is calculated as a percentage of a loan balance, paid to the lender periodically for the
privilege of using their money by pledging their security. The amount is usually quoted as an
annual rate, but interest can be calculated for periods that are longer or shorter than one year.
1.7.7 Principal
The entire amount borrowed in the form of loan by pledging gold as security, or the part of the
amount borrowed which remains unpaid (excluding interest), is said as principal.
1.7.8 Pledge
Gold is used as collateral for the loan borrowed. A pledged asset is transferred to the lender from
the borrower to secure the debt. Ownership of the asset remains with the borrower during the
loan period. When the debt has been repaid, the pledged asset is transferred back to the
borrower.
1.8 METHODOLOGY OF THE STUDY

This study is empirical in nature.
 The analytical part of study was based on primary data collected from the borrowers of
gold loan through questionnaire. The data was collected and then analyzed to find the
actual result.
 The descriptive part of the study was data compiled from borrowers of gold loan, Public
Sector Bank, NBFC’s, journals and internet.
1.8.1 Research Design
This study is empirical in nature and has been carried out to find out the reasons,
experiences and the level of borrowers preference in availing gold loan from Public
Sector Bank and NBFC’s.
1.8.2 Sampling design

I. Sample size
100 respondents were used for the study.
II. Sample design
In the study convenient sampling method was used to collect the data from the
borrowers of gold loan.
1.8.3Period of study
It defines the period taken for the completion of the study. For the study, the
primary data and secondary data collected were covered a period of one academic
year from June 2018- March 2019.
1.8.4 TOOLS FOR ANALYSIS
The tools such as Percentage analysis , Likert scaling, Garret Ranking ,Chi-square test
and Anova has been used.
The data was collected from respondents. The data has been analyzed as wing percentage
method and comparison has been made. Tables and charts were used to simplify the presentation
of information from the collected data from respondents. Pie diagram, bar diagram were used
for presentation of information.
1.9 LIMITATION OF THE STUDY
 The study does not cover the entire population of People availing Gold Loan in Madurai,
due to limitation of time & resources.
 The study was undertaken only for the loans provided by certain Public sector banks and
NBFC’s.
 The period of study was too short to a detailed study.
1.10 CHAPTER SCHEME
Chapter-1
This chapter deals with “Introduction and design of the study”, which includes statement of
the problem, objectives, review of literature. Sample design, sample size, methodology, scope of
study, operational definitions, limitations , chapter scheme.
Chapter-2
This chapter deals with “An overview of Public Sector Bank and Non-banking financing
companies in availing gold loan”, it includes details regarding banks and NBFC’s, government
regulations to bank and norms related in availing gold loan.
Chapter-3
This chapter deals with “Data analysis and interpretation”, to analyze the borrowers’
perception in availing gold loan from bank and NBFC’s for the financial period of 2018-2019.
Chapter-4
This chapter deals with “Findings, suggestion and conclusion”, in order to find borrowers’
perception in availing gold loan.
CHAPTER II-PROFILE OF PUBLIC SECTOR BANKS AND NBFC’s
2.1 Introduction
The Indian financial system comprises of financial institutions, financial markets, financial
instruments and services. Financial institutions act as mobilizers and depositories of savings,
involve themselves in lending and depository practices. They also provide various financial
services to the community. Financial institutions are divided into banking and non-banking
corporations. Banking sector reforms in India strive to increase efficiency and profitability of the
banking institutions. The non-banking financial intermediaries supplement the functions of the
banking institutions. NBFCs are financial intermediaries engaged primarily in the business of
accepting deposits, delivering credit. The Indian banking sector and NBFC’s continues to deal
with improvement in operational efficiency and execution of prudent risk management practices.
Section 5(b) defines bank as accepting for the purpose of lending or investment of deposits
of money from the public, repayable on demand or otherwise and withdrawal by cheque,
draft, and order or otherwise. 9
2.2 Structure of Banking in India
2.3 Role of Reserve Bank of India
9
Government of India (1991), Report of the Committee on Financial System, (Chairman, M.
Narasimham), Ministry of Finance, New Delhi.
RBI is India’s central bank. The RBI was established on April 1, 1935 in accordance with the
provisions of the Reserve Bank of India Act, 1934. RBI acts as a banker to the Government and
Banks. The Central Bank maintains record of Government revenue and expenditure under
various heads. Another important function of the Central Bank is the issuance of currency notes,
regulating their circulation in the country by different methods as prescribed by Reserve Bank of
India. Banks in the country are broadly classified as scheduled banks and non-scheduled banks.
2.4 Role of Scheduled & Non Scheduled Banks:

Scheduled Banks in India refers to those banks which have been included in the Second
Schedule of Reserve Bank of India Act, 1934. Banks not under this Schedule are called Non-
Scheduled Banks. In other words, Banks with a reserve capital of less than 5lakhs rupees qualify
as non-scheduled banks.
Table 2.5 shows number of Banking sector and Non-banking Financing Companies in
India10
S.NO Particulars Number of Banking and

NBFC’s
1 Public Sector Banks 27
2 Private Sector Banks 21
3 Foreign Banks 49
4 Regional Rural Banks 56
5 Urban Cooperative Banks 1,562
6 Non-Banking Financing Companies 11,469
7 Rural Cooperative Banks 94,384
The above table shows the accurate number of banking and non banking financing companies
prevails in India.
2.7 Role of Indian Banking Sector in lending and deposits
2.7.1 Lending11
10
Uppal, R.K and Kaur R. (2016), Banking Sector Reforms in India: A Review of
Post-1991 Developments, New Century Publication, New Delhi.
Figure 2.7.1 shows growth of lending practices in Indian banking sector
The above figure clearly shows that

i. Credit off-take has been increasing ahead over the past decade, aided by strong economic
growth, rising disposable incomes, increasing consumerism & easier access to credit.
ii. During FY07-18, credit off-take grew at a CAGR of 10.99 per cent. As of Q4 FY18, total
credit extended surged to Rs 86,825,727 million (US$ 1,347.18 billion). Demand has
grown for both corporate & retail loans; particularly the services, real estate, consumer
durables & agriculture allied sectors have led the growth in credit.
iii. Bank credit grew at 12.84 per cent year-on-year to Rs 86.16 lakh crore (US$ 1,285.20
billion) on June 22 2018 from Rs 76.36 lakh crore (US$ 1,139.02 billion) on June 23,
2017.
2.7.2 Deposits12
Figure 2.7.2 shows growth of deposits in Indian banking sector
11
The Journal of the Indian Institute of Bankers, Vol. 69. No. 4
12
The Journal of the Indian Institute of Bankers, Vol. 69. No. 5
The above figures clears states that
i. During FY07–18, deposits grew at a CAGR of 11.66 per cent and reached US$ 1.6
trillion by FY17. Deposits at the end of Q4 FY17-18 stood at Rs 114,792,883 million
(US$ 1,781.12 billion).
ii. Strong growth in savings amid rising disposable income levels are the major factors
influencing deposit growth.
iii. Deposits under Pradhan Mantri Jan Dhan Yojana (PMJDY), have also increased to Rs
80,674.82 crore (US$ 12.03 billion) were deposited and 32.25 million accounts were
opened in India.
iv. Bank deposits grew at 7.59 per cent year-on-year to Rs 113.54lakhs crore (US$ 1,693.62
billion) in June 22, 2018 from Rs 105.52lakhs crore (US$ 1,573.99 billion) in June 23,
2017.
2.8 ROLE OF GOLD LOAN MARKET IN INDIA
In India, gold has traditionally been a liquid asset and universally accepted commodity with
continuous value appreciation over the decades. India is one of the largest consumers of gold
with an estimated total stock of over 23,000 tonnes in the year 2016-2017. World Gold Council
(WGC) expects the average demand to reach around 850 to 950 tonnes per annum by 2020 at an
annual growth rate of 35 per cent.
At a broader level, there are mainly two categories of gold loan lenders
 Organized Sector (Banking sector, NBFC’s and Co-operatives)

 Unorganized Sector (Pawn brokers and local money lenders)
Figure 2.8.1 Share of Organized gold loan market – 2018
Organized Gold Loan

6%
13%
Public Sector Bank

NBFC's
Private Sector Banks
44% Co operatives
37%
Source: The Economic times Dated 30th November 2018
The above figure clearly shows that majority of the borrowers prefer public sector bank. The
second option they opt for NBFC’s when compared to private sector banks. Now a days
NBFC’s enabled by their wide network and streamlined operations are becoming the customer’s
first choice by offering competitive interest rates, instant loans and flexible schemes. The value
of organized gold loan market shows an upward trnd in upcoming future.
2.9 Role of banking sector
Out of many public sector banks which prevail in Tamil Nadu, borrowers opt to pledge jewel
loan from the bank which has lower interest rates. People mostly prefer public bank and NBFC’s
when compared to private banks. They prefer public sector bank mostly as the jewels pledged
will be kept secured and the interest rates and processing fees will be low when compared to
other private banks and non-banking financial companies.
Figure 2.9.1 Organized gold loan market projection
Source: KPMG in India analysis
The above chart clearly depicts gold loan companies are expected to continue delinking the gold
price volatility risk by offering more variants of lower tenure loan products. They estimated INR
3101 billion by 2020 at a three year Compounded Annual Growth (CAGR) of 13.17 per cent.
The below chart depicts the organized gold loan market projection.
2.10 Role of Non-Banking Financial Companies (NBFC’s)
Non-Banking Financial Companies (‘NBFCs’) are financial institutions which are not banks, but
they accept deposits and carry out functions similar to banks. NBFCs garnered the attention of
the Reserve Bank of India (‘RBI’) when several depositors lost their money, during the failure of
several banks in the late 1950s and early 1960s. In order to prevent the large number of
depositors, RBI initiated regulating them by introducing Chapter IIIB in the Reserve Bank of
India Act, 1934. In March 1996, there were around 41,000 NBFCs in India and they were not
recognized as a separate class. In the late 90s, sweeping changes were brought to protect the
interest of depositors and ensuring the desired functioning of NBFC’s
2.10.1 Types of NBFCs
NBFCs are broadly categorized based on liability, size and activities carried on by the company
NBFC'S
Size Activities
Liability
Non-
Deposit Non-deposit Systematically systematically
Accepting Accepting important important
NBFC's NBFC's
The following table projects about the details of gold loan schemes of various Public sector
banks and NBFC’s
Table 2.11 shows Gold loan schemes
Bank Gold Loan Processing Fee Maximum Tenure

Interest Rates
SBI Gold Loan 10.55% 0.50% of the loan amount 36 Months
subject to a minimum of
Rs. 500
Muthoot Gold Loan 12.00% 0.25% to 1% of loan 36 Months
amount.
Manappuram Gold 10.50% Rs. 10 (to be paid at time 12 Months
loan of settlement)
Canara Bank 12.00% 1% of the loan amount, 12 Months
min Rs. 1,000 and max
Rs. 5,000 per loan
Punjab National 10.05% upfront fees of 0.70% of 12 Months
Bank loan amount + taxes
IIFL Gold Loan 12.00% Nil 11Months
HDFC Bank 11.50% 1.5% 24 Months
Yes Bank 10.50% Nil to upto 0.10% 36 Months
Axis Bank 10.50% 0.25%-1% of Loan 24 Months
Amount
ICICI Bank 10.50% 1% of the Loan Amount 12 Months
Federal Bank 11.75% Nil 12Months
Source: Bank Bazzar
The above table clearly shows that the bank interest rates for public sector banks are lesser when
compared to non-banking financing companies. The processing fees collected by banks and
NBFC’s will be charged as per the amount pledged.
2.12 Role of Public sector banks in lending gold loans
Mostly today borrowers opt to pledge jewel loan from the bank which has lower interest rates.
People mostly prefer public bank and NBFC’s when compared to private banks. They prefer
public sector bank mostly as the jewels pledged will be kept secured and the interest rates and
processing fees will be low when compared to other private banks and non-banking financial
companies.
2.12.1 Features of State Bank of India’s gold loan

SBI gold loan can be availed by pledge of gold ornaments including gold coins sold by banks
with minimum paper work and low interest rates.SBI offers highest gold loan per gram of Rs.
2,341 at today’s average gold price of Rs. 31,218 for 22 carat gold.
Table 2.12.2 shows features of gold loan of SBI
S.NO Eligibility criteria SBI Gold loan
1 Gold Loan per gram Rs. 1,916 to Rs. 2,341 depending on

the purity of gold
2 Age of Borrower 21 - 65 years
3 Maximum Loan Amount Rs. 20 Lakh
4 Maximum Loan to Gold Value Ratio Up to 75%
5 Purity of Eligible gold 18 carat to 22 carat gold
6 Maximum Loan Tenure 36 months
7 Lowest EMI Per Lakh Rs. 3,253
Source: www.goldloanbazaar.com
The above table clearly shows the eligibility criteria for an individual to avail gold loan from
State Bank of India.
2.12.3 SBI Gold Loan Rate per Gram by Gold Purity
The following table gives an approximate estimate of gold loan per gram SBI Bank will offer
against gold jewelry of different purity levels at a maximum LTV of 75% and lower LTV of
65%.
Table 2.12.4 shows SBI gold loan rate per Gram by Gold Purity
Gold Purity SBI best Gold Loan per gram SBI lowest Gold Loan per
gram
22 carat 2,341 2,029
20 carat 2,341 1,845
18 carat 1,916 1,660
The above table shows the method by which SBI Bank will calculate your per gram gold loan for
gold of varying purity.
2.12.5 Features of Canara Bank’s gold loan
Gold is a key element in the financial portfolio of most Indians, with an estimated 20,000 tonnes
of gold owned by residents of the country. A primary reason for investing in gold is the liquidity
it offers, which enables owners to sell it immediately or avail loans against it. Canara Bank
offers a Gold Loan (Swarna Loan) scheme which can be availed by keeping gold as security,
primarily designed to meet any financial emergencies. Gold is returned on repayment of a loan,
making it a temporary contingency plan during financial hardships. Canara Bank offers highest
gold loan per gram of Rs. 2,317 at today’s average gold price of Rs. 30,892 for 22 carat gold.
Table 2.12.6 shows features of Canara bank gold loan
Eligibility Criteria Canara Bank Gold Loan

Gold Loan per gram Rs. 1,896 to Rs. 2,317 depending on the purity
of gold
Age of Borrower Above 21 years
Maximum Loan Amount Rs. 10 Lakh
Maximum Loan to Gold Value Ratio Up to 75%
Purity of Eligible gold
18 carat to 22 carat gold
Maximum Loan Tenure 12 months
Lowest EMI Per Lakh Rs. 8,885
Canara Bank.
2.12.7 Canara Bank Gold Loan Rate per Gram by Gold Purity
The following table gives an approximate estimate of gold loan per gram Canara Bank Bank will
offer against gold jewelry of different purity levels at a maximum LTV of 75% and lower LTV
of 65%.
Table 2.12.8 shows Gold Loan Rate per Gram by Gold Purity
Gold Purity Canara Bank best Gold Loan Canara Bank lowest Gold
per gram Loan per gram
22 carat 2,317 2,008

20 carat 2,317 1,825
18 carat 1,896 1,643
The above table shows the method by which Canara Bank Bank will calculate your per gram
gold loan for gold of varying purity.
2.12.9 Features of Punjab National Bank’s (PNB) Gold Loan

Punjab National Bank offers loans against gold ornaments, jewelry and gold coins to
customers in India. The gold loan can be availed for productive purposes inclusive of agricultural
and allied activities and for non-productive purposes like medical treatments, educational
purposes and for other unplanned emergencies. Depending on the purpose the loan is being
procured for, Punjab National Bank will approve the required loan amount at a competitive
interest rate. PNB offers highest gold loan per gram of Rs. 2,341 at today’s average gold price of
Rs. 31,218 for 22 carat gold.
Table 2.12.10 Features of PNB Gold Loan

Eligibility Criteria PNB Gold loan
of gold
Age of Borrower Above 21 years
Maximum Loan Amount Rs. 10 Lakh

Purity of Eligible gold 18 carat to 22 carat gold
Punjab National Bank (PNB).
2.13 Role of Non-Banking Financing Companies
A Non Banking Financial Company (NBFC) is a company registered under the Companies Act,
1956 of India, engaged in the business of loans and advances, acquisition of shares, stock, bonds,
hire-purchase insurance business or chit-fund business. The working and operations of NBFCs
are regulated by the Reserve Bank of India (RBI) within the framework of the [Reserve Bank of
India Act, 1934] (Chapter III-B) and the directions issued RBI.
2.13.1Types of NBFC’S in India
 Asset Finance Company (AFC)

 Investment Company (IC)
 Loan Company (LC)
 Infrastructure Finance Company (IFC)
 Infrastructure Debt Fund: Non – Banking Financial Company (IDF-NBFC)
2.13.2 NBFC’S GOLD LOAN
In the current scenario people started preferring gold loan from NBFC’s instead from Public and
Private sector Banks. NBFC’s seems to be more convenient to borrowers in availing gold loan.
As NBFC’s working and operations are regulated by RBI it seems to be safer for borrowers. The
following are the most preferred NBFC’s by the borrowers to avail gold loan.
2.13.3 Role of Muthoot Finance Limited
Muthoot Finance Limited is the largest gold financing company in India in terms of loan
portfolio provided by them. The company provides personal and business loans secured by
gold jewellery, or gold Loans, primarily to individuals who possess gold jewellery but could
not access formal credit within a reasonable time, or to whom credit may not be available at
all, to meet unanticipated or other short-term liquidity requirements.
Muthoot Finance’s Gold Loan portfolio is the largest in India as well as around the globe. It is
humbling to know that over 2lakh people avail our trusted services on a daily basis. With
Muthoot Finance Ltd. Gold Loan services, it takes no more than a few minutes for your gold to
generate cash. The simple procedures that they follow were:
 Quick loan disbursal

 Minimum loan amount of Rs. 1500/- with no maximum limit
 Pre- payment option- without any penalty
 Minimal documentation
 Best customer service with a shorter response time
 Safe custody for gold ornaments
2.13.4 Muthoot Finance Gold Loan Schemes
Muthoot Finance offers 8 gold loan schemes to its customer, which are:
 Muthoot Mahila Loan (MML)
 Muthoot Best Value Loan (MBL)
 Muthoot Super Loan (MSL)
 Muthoot Advantage Loan (MAL)
 Muthoot Premier Loan (MPL)
 Muthoot High Value Loan (MHL)
 Muthoot EMI Scheme (MES)
 Muthoot Overdraft scheme (MOS)
2.13.5 Features of Muthoot Finance Gold Loan Schemes
The features of these unique gold loan schemes are briefly explained below:
2.13.5.1Muthoot Mahila Loan (MML)
This gold loan scheme is offered by Muthoot Finance exclusively to women. This is offered only
at the Muthoot Finance branches in South India.
 Minimum Loan Quantum – The minimum loan quantum offered to women customers
against gold is Rs. 1500.
 Maximum Loan Quantum – The maximum loan offered to women customers by Muthoot
Finance under the Muthoot Mahila Loan scheme is Rs. 50,000.
 Muthoot Mahila Loan (MML) Interest rate – A discounted interest rate is offered to
women customers under this scheme. The interest is 12% per annum.
2.13.5.2Muthoot Best Value Loan (MBL)
Muthoot Best Value Loan is custom-made for meeting the needs of customers belonging to the
lower to middle income category. The gold loan is offered at a good rate of interest for the loan
amount required.
 Minimum Loan Quantum – The minimum loan quantum offered to customers against gold
is Rs. 1500.
 Maximum Loan Quantum – The maximum loan offered to customers by Muthoot Finance
under this scheme is Rs. 1, 00,000.
 Muthoot Best Value (MBL) Interest rate – The interest rate offered to customers under this
scheme is 14% per annum.
2.13.5.3 Muthoot Super Loan (MSL)
Muthoot Super Loan is offered to those customers who wish to avail a higher loan amount
against their gold and also wish to avail the benefits of discounts arising out of timely repayment
of the loan.
is Rs. 1500.
 Muthoot Super Loan (MSL) Interest rate –The interest is 23% per annum and if interest is
paid regularly on a monthly basis, 2% rebate is applicable on the interest rate and if interest is
paid regularly on a quarterly basis, 1% rebate is applicable on the prevailing interest rate.
2.13.5.4 Muthoot Advantage Loan (MAL)
Muthoot Advantage Loan is a special gold loan scheme specially curated for the benefit of those
who wish to avail a good interest rate as well as a higher loan amount per gram of gold placed
with Muthoot Finance. This scheme is offered in all Muthoot Finance branches across East India,
North India and West India.
is Rs. 1500.
 Muthoot Advantage Loan (MAL) Interest rate – The interest rate is offered to customers
under this scheme is 18% per annum.
2.13.5.5 Muthoot Premier Loan (MPL)
This gold loan scheme is for those customers who wish to avail the maximum loan amount
against their gold and also wish to earn discounts as reward for timely repayment of the interest
on a monthly basis.
is Rs. 3, 00,000.
 Maximum Loan Quantum – There is no maximum limit on the loan amount offered to
customers by Muthoot Finance under this scheme.
 Muthoot Premier Loan (MPL) Interest rate – The interest is 22.5% per annum and if
interest is paid regularly on a monthly basis, 2% rebate is applicable on the interest rate and if
interest is paid regularly on a quarterly basis, 1% rebate is applicable on the prevailing interest
rate.
2.13.5.6 Muthoot High Value Loan (MHL)
Muthoot High Value Loan is a gold loan scheme from Muthoot Finance that is custom-made for
businessmen, property dealers, traders, shop owners, builders, etc. who wish to take a gold loan
for an extended loan tenure.
is Rs. 3, 00,000.
 Muthoot High Value Loan (MHL) Interest rate – Avail a discounted interest rate of
just 17% per annum on the loan amount borrowed.
2.13.5.7 Muthoot EMI Scheme (MES)
This scheme is ideal for all salaried individuals and professionals, who wish to avail a gold loan
and repay it in EMIs (Equated Monthly Installments).
is Rs. 20, 00,000.
 Loan Tenure – Customers can choose their loan repayment tenure in EMIs from 6 months, 12
months, 18 months, 24 months, 30 months and 36 months.
 Grace Period – In case of late payment of gold loan EMI, a grace period of 3 days is
applicable.
 Muthoot EMI Scheme (MES) Rate of Interest – The interest applicable on the gold loan
offered under this scheme is 21%, which is calculated based on diminishing balance.
2.13.5.8 Muthoot Overdraft Scheme (MOS)
Muthoot Overdraft Scheme is specially designed for traders, businessmen, pharmacists, petrol
pump owners, shopkeepers, etc. This places the gold as an “additional bank limit” to fund the
growth of their business.
is Rs. 2, 00,000.
 Free Locker Facility – The borrower has the freedom to repay the loan amount as well as
withdraw funds, with the free locker facility offered under this scheme.
Table 2.13.6 shows Muthoot Gold Loan eligibility criteria
Eligibility Criteria Muthoot Gold Loan
Gold Loan per gram Rs. 1,896 to Rs. 2,317 depending on the purity of
gold
Age of Borrower 18 years
Maximum Loan Amount Rs. 1 Crore
The above table clearly shows the eligibility criteria of an individual to avail gold loan.
2.13.7 Role of Manappuram Finance Limited
Manappuram was one of the earliest to adopt the “core banking” platform. This was no mean
achievement considering that unlike the banking sector there were no ready-made software
solutions for gold loans. It came about only because the company invested in developing its own
proprietary solutions, and today its technology platform is one of its core strengths. The
investment in technology has paid off in many ways, for instance, in streamlining procedures to
reduce turnaround times in gold loan disbursal and in implementing advanced risk management
practices. Manappuram offers highest gold loan per gram of Rs. 2,341 at today’s average gold
price of Rs. 31,218 for 22 carat gold.
Table 2.13.8 shows features of Manappuram Gold Loan
Eligibility Criteria Manappuram Gold Loan
of gold
Age of Borrower 18 years
Maximum Loan Amount Rs. 1 Cr

The above table clearly shows the eligibility criteria of an individual to avail gold loan from
Manappuram gold loan limited.
Table 2.13.9 shows fees and charges of Manappuram Gold Loan
Statement of accounts No charge (within 30 days of closure) Rs. 25 (after 30

days of closure)
Gold processing charge Rs. 10 at the time of loan settlement
Loan prepayment No prepayment charges
Source: www.myloancare.in
The above table clearly shows the fees and charges that is incurred while availing gold loan from
Manappuram gold loan.
2.14 Conclusion
This chapter entirely deals about the role of Public sector bank and non-banking financing
companies in lending gold loans to their borrowers. It also deals about various features that
prevail for both banking sector and non-banking financing companies before availing gold loan.
A borrower should consider all the features of a particular bank or NBFC’s before availing gold
loan. A borrower can also compare all the lending practices of gold loan before availing so that
correct decision might be taken.
CHAPTER III- DATA ANALYSIS AND INTERPTRETATION
3.1 INTRODUCTION
Analysis is a systematic examination and evaluation of data or information by breaking it into
component parts to uncover their interrelationships. It helps the reader to understand the data by
describing general trends in the data and pointing out differences and similarities among data
points. Interpretation relates data to the objectives they are supposed to measure, explores the
relationships between multiple measures of an educational objective, qualifies, amplifies, draws
inferences and evaluates. The purpose of the data analysis and interpretation is to transform the
data collected into credible evidence about the development of the intervention and its
performance. It is done to find out the relevancy, effectiveness and impact of the data.
In this chapter, analysis is done based on the questionnaire collected from the respondents i.e.,
primary data. The collected data’s are analyzed by applying various statistical tools such as
percentage analysis for common details of the respondents such as age, gender, education,
monthly income. Garret ranking has also been used for rank based questions and Likert scaling
has been used for five-point scale questions. To know the better result Test of Hypothesis is also
applied for certain questions. By applying these statistical tools and researcher will be able to
identify the findings of the study and also can give appropriate suggestions and conclusion for
the study.
3.2 Profile of the Respondents
PUBLIC SECTOR BANKING
Table no 3.2.1
Age of the Respondents
Age Frequency Percentage

25-35 7 12
35-45 26 45
45-55 16 28
Above 55 9 15
Total 58 100.0
Source: Primary data
In the table 3.2.1 it is found that 45% of respondents were between 35-45 years, 28% of
respondents were between 45-55 years, 15% of respondents were above 55 years and 12% of
respondents were between 25-35 years.
Figure 3.2.1

Above 55
17% 25-35
19%
25-35
35-45
45-55
45-55
38% Above 55
35-45
26%
Table 3.2.2
Gender of the Respondents

Gender Frequency Percentage
Male 32 55
Female 26 45
Total 58 100.0
In the table 3.2.2 it is found that 55% of respondents were male and 45% of respondents were
female. It was found that male respondents were more than the female respondents.
Figure 3.2.2
55%
60%
45%
50%
40%
30%
20%
10%
0%
Male Female
Table 3.2.3
Educational Qualification of the respondents

Educational Qualification Frequency Percentage
SSLC 9 15
HSC 18 32
UG 25 43
PG 6 10
Total 58 100.0
In the table 3.2.3 it is found that 43% of respondents have completed their under graduate, 32%
of respondents have completed their higher secondary, 15% of respondents have completed their
SSLC and 10% of respondents have completed their post graduate.
Figure 3.2.3
Educational Qualification
43%
45%
40%
32%
35%
30%
25%
15%
20%
10%
15%
10%
5%
0%
SSLC HSC UG PG
Table 3.2.4
Profession of the Respondents

Profession Frequency Percentage
Private Employee 17 29
Government Employee 32 55
Self-employed 9 16
Total 58 100.0
In the table 3.2.4 it is found that 55% of respondents were Government employees, 29% of
respondents were private employees and 16% of respondents were self employed.
Figure 3.2.4
60
55
50
40
29
30
20
16
10
Private Employee
Government Employee
Self-employed
Table 3.2.5
Monthly income of the Respondents

Monthly Income Frequency Percentage
Below 25,000 12 20
25,000-50,000 23 40
50,000-75,000 14 25
Above 75,000 9 15
Total 58 100.0
In the table 3.2.5 it is found that 40% of respondents earn between 25,000-50,000, 25% of
respondents earn between the range of 50,000-75,000, 20% of respondents earn below 25,000
and 15% of respondents earn above 75,000.
Figure 3.2.5
Above 75,000 15%
50,000-75,000 25%
25,000-50,000 40%
Below 25,000 20%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Table 3.2.6
Financial Institution
Financial Institution Frequency Percentage
State Bank of India (SBI) 31 54
Canara Bank 17 29
Punjab National Bank (PNB) 10 17
Total 58 100.0
In the table 3.2.6 it is found that 54% of respondents opt for State Bank of India to avail jewel
loan, 29% of respondents opt for Canara Bank and 17% of respondents opt for Punjab National
Bank to avail jewel loan.
Figure 3.2.6
PNB
17%
State Bank of India

Canara Bank
SBI Pubjab National Bank
Canara Bank 54%

29%
NON BANKING FINANCING COMPANIES
Table 3.2.7
Age Frequency Percentage

25-35 20 50
35-45 12 28
45-55 5 13
Above 55 5 9
Total 42 100.0
In the table 3.2.7 it is found that 50% of respondents were between the 25-35 years, 28% of
respondents were between 35-45 years and 9% of respondents were above 55 years.
Figure 3.2.7
50%
50%
45%
40% 28%
35%
30%
25%
20% 11% 11%
15%
10%
5%
0%
25-35 35-45 45-55 Above 55
Age of the Respondnets

Table 3.2.8

Gender Frequency Percentage
Male 18 43
Female 24 57
Total 42 100.0
In the table 3.2.8 it is found that 57% of respondents were female and 43% of respondents were
male. It was found that female respondents were more than tfrohe male respondents.
Figure 3.2.8
60% 57%
50% 43%
40%
30%
20%
10%
0%
Male
Female
Table 3.2.9
Educational Qualification of the respondents

Educational Qualification Frequency Percentage
SSLC 6 14
HSC 11 26
UG 20 48
PG 5 12
Total 42 100.0
In the table 3.2.9 it is found that 48% of respondents have completed their under graduate, 26%
of respondents have completed their higher secondary, 14% of respondents have completed their
SSLC and 12% of respondents have completed their post graduate.
Figure 3.2.9
Educational Qualification
48%
50%
45%
40%
35%
26%
30%
25%
20% 14%
12%
15%
10%
5%
0%
SSLC HSC UG PG
Table 3.2.10

Profession Frequency Percentage
Private Employee 19 45
Government Employee 6 15
Self-employed 17 40
Total 42 100.0
In the table 3.2.10 it is found that 45% of respondents were Private employees, 40% of
respondents were self-employed and 15% of respondents were Government employees.
Figure 3.2.10
Self-employed 40%
Government Employee 15%
Private Employee 45%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Table 3.2.11

Monthly Income Frequency Percentage
Below 25,000 14 33
25,000-50,000 17 41
50,000-75,000 6 14
Above 75,000 5 12
Total 42 100.0
In the table 3.2.11 it is found that 41% of respondents earn between 25,000-50,000, 33% of
respondents earn below 25,000, 14% of respondents earn between 50,000-75,000 and 15% of
respondents earn above 75,000.
Figure 3.2.11
45%
41%
40%
33%
35%
30%
25%
20%
15% 14%
12%
10%
5%
0%
Below 25,000
25,000-50,000
50,000-75,000
Above 75,000
Table 3.2.12
Financial Institution Frequency Percentage
Muthoot Finance Limited 28 66
IIFL Gold Loan 10 24
Mannappuram Gold Loan 4 10
Total 42 100.0
In the table 3.2.12 it is found that 66% of respondents opt for Muthoot Finance to avail jewel
loan, 24% of respondents opt for IIFL gold loan and 10% of respondents avail mannappuram
gold loan to avail jewel loan
Figure 3.2.12
10%
Muthoot Finance Limited

24%
IIFL gold loan
Mannapuram Gold loan
66%
3.3 COMPARITIVE STUDY ON PUBLIC SECTOR BANK AND NBFC’s IN AVAILING
GOLD LOAN
Introduction
A comparative study is randomly assigned to one of two or more different treatment

groups for purpose of comparing the facts in order to find the result.
Table 3.3.1
Years of Holding Account

Particulars Public Sector Bank NBFC’s
Frequency Percentage Frequency Percentage
Less than a year 5 9 6 14
1-3 years 13 22 11 26
3-5 years 14 24 21 50
Above 5 years 26 45 4 10
Total 58 100.0 42 100.0
From the table 3.3.1 it is found that 45% of respondents holds account above 5 years and 9% of
respondents hold account less than a year in public sector bank and 50% of respondents holds
account for 3-5 years and 10% of respondents holds above 5 years in NBFC’s.
Figure 3.3.1
Years of holding account
60%
50%
50%
45%
40%
30% Public Sector Bank

26%
24% NBFC's
22%
20%
14%
9% 10%
10%
0%
Less than a year 1-3 years 3-5 years Above 5 years
Table 3.3.2
Period of Gold loan

1 year 14 24 16 38
1-3 years 4 6 14 33
3-5 years 34 60 10 24
Above 5 years 6 10 2 5
Total 58 100.0 42 100.0
From the table 3.3.2 it is found that 60% of respondent avail gold loan for 3-5 years and 6% of
respondents avail gold loan for 1-3 years from public sector bank and 38% of respondents avail
gold loan for 1 year and 5% of respondents avail gold loan above 5 years from NBFC’s
Figure 3.3.2 Period of gold loan
5%
Above 5 years
10%
24%
3-5 years
60%
NBFC's

1-3 years
6%
38%
1 year
24%
0% 10% 20% 30% 40% 50% 60% 70%

Table 3.3.3
Amount of gold loan

Below 50,000 7 9 5 12
50,000-1,50,000 21 36 22 52
1,50,000-3,00,000 19 32 9 22
Above 3,00,000 11 19 6 14
Total 58 100.0 42 100.0
From the table 3.3.3 it is found that 36% of respondents avail 50,000-1,50,000 and 9% of
respondents avail below 50,000 from public sector bank and 52% of respondents avail 50,000-
1,50,000 and 12% of respondents avail below 50,000 through gold loan from NBFC’s
Figure 3.3.3 Amount of gold loan
60%
52%
50%
40% 36%
32%
30%
20% 22%
9% 12% 19%
10% 14% Public Sector Bank
0% NBFC's
Table 3.3.4
Gold Loan Margin

High 26 45 31 74
Moderate 32 55 11 26
Total 58 100.0 42 100.0
From the table 3.3.4 it is found that 55% of respondents felt that gold loan margin is moderate
and 45% of respondents felt gold loan margin is high in public sector bank and 74% of
respondents felt that gold loan margin is high and 26% of respondents felt that gold loan margin
is moderate in NBFC’s
Figure 3.3.4
Gold loan margin
80%
74%
70%
60% 55%
50% 45%
40%
30% 26%
Public Sector Bank
20%
NBFC's
10%
0%
High Moderate
Table 3.3.5
Time take to sanction gold loan

Within a hour 25 44 36 86
2-3 hours 33 56 6 14
Total 58 100.0 42 100.0
From the table 3.3.5 it is found that 56% of respondents felt that it takes more than a hour to
avail gold loan and 44% of respondents felt that they avail gold loan within a hour from public
sector bank and 86% of respondents felt that they avail gold loan within a hour and 14% of
respondents felt that it takes more than a hour to avail gold loan from NBFC’s
Figure 3.3.5 Time taken to avail gold loan
NBFC's
2-3 hours
56%
86%
Within a hour
44%
0% 20% 40% 60% 80% 100%

Table 3.3.6
Person influenced to avail gold loan
On your own 32 55 26 62
Friends 7 12 5 12
Advertisements 2 4 4 10
Relatives 6 10 3 8
Neighbors 7 12 2 4
Employees of 4 7 2 4
Banks/NBFC’S
Total 58 100.0 42 100.0
From the table 3.3.6 it is found that 55% of respondents prefer bank to avail gold loan on their
own and 4% of respondents prefer because of the influence of advertisements and 62% of
respondents prefer NBFC’s to avail gold loan on their own and 4% of respondents prefer
NBFC’s because of the influence of neighbors and employees in NBFC’s.
Figure 3.3.6
Person influenced to avail gold loan
70%
62%
60% 55%
50%
40%
30%
20%
12% 10% 12%
12% 10% 8%
10% 7%
4% 4% 4%
0%
On your own Friends Advertisements Relatives Neighbors Employees of
Banks/NBFC's
Public Sector Bank

NBFC's
Table 3.3.7
Reason for availing gold loan

Purchase of residential 5 8 4 10
property
Education 22 38 17 41
Medical treatment 7 12 6 14
Investment in business 9 16 9 21
Repayment of other debts 15 26 6 14
Total 58 100.0 42 100.0
From the table 3.3.7 it is found that 38% of respondents avail gold loan for education purpose
from banks and 8% of respondents avail to purchase residential property from banks and 41%
avail from NBFC’s for education purposes and 10% avail to invest in residential property from
NBFC’s.
Figure 3.3.7
Reason for availing gold loan
45%
41%
40% 38%
35%
30%
25%
26%
20% 21%
15% 12% 14% 16%
8% 12%
10% 14%
5%
0%
Purchase of
Education
residential Medical
property treatment Investment
in business Repayment
of other
debts
Public Sector Bank

NBFC's
Table 3.3.8
Interest Rates
11.00%-12.00% 29 50 5 12
12.00%-13.00% 13 22 4 10
13.00%-14.00% 8 13 22 52
14.00%-15.00% 2 5 8 19
Above 15.00% 6 10 3 7
Total 58 100.0 42 100.0
From the table 3.3.8 it is found that 50% of respondents avail between 11.00%-12.00% of
interest rates, 5% of respondents avail between 14.00%-15.00% of interest rates from banks and
52% of respondents avail between 13.00%-14.00% and 7% of respondents avail jewel loan
above 15.00% of interest rate from NBFC’s
Figure 3.3.8
Interest rate of gold loan
60%
52%
50%
50%
40%
30%
22%
19%
20%
12% 13%
10% 10%
10% 7%
5%
0%
11.00%-12.00% 12.00%-13.00% 13.00%-14.00% 14.00%-15.00% Above 15.00%
Public Sector Bank

NBFC's
Table 3.3.9
Mode of Repayment
Interest as EMI and 22 38 11 27

Principal amount later
Partial Repayments 11 19 9 21
Bullet repayments 25 43 22 52
Total 58 100.0 42 100.0
From the table 3.3.10 it is found that 43% of respondents make bullet repayments and 29% of
respondents make partial repayment to Banks and 52% of respondents make bullet repayments
and 21% of respondents make partial repayments to NBFC’s.
Figure 3.3.9
Mode of Repayment
60%
50% 52%
38% 43%
40%
27%
30%
21%
20% 19%
10%
0%
Interest as EMI and

Principal amount Partial Repayments
later Bullet repayments
Public Sector Bank
NBFC's
Table 3.3.10
Respondents’ preference at time of emergency

Banking sector 35 60 9 21
NBFC’s 23 40 33 79
Total 58 100.0 42 100.0
From the table 3.3.11 it is found that 60% of respondents prefer banks to avail jewel loan and
40% of respondents prefer NBFC’s to avail gold loan at the time of emergency and 79% of
respondents prefer NBFC’s to avail jewel loan and 21% of respondents prefer Banks to avail
gold loan at the time of emergency.
Figure 3.3.10
Respondents’ preference at time of emergency
79%
80%
60%
60%
21%
40% 40%
20%
0%
Banking Sector
NBFC's
Public Sector Bank
NBFC's
Table 3.3.11
Reasons to prefer Gold loan

Yes 53 91 38 90
No 5 9 4 10
Total 58 100.0 42 100.0
From the table 3.3.12 it is found that 91% of Bank customer has the reason to prefer gold loan
and 9% of respondents do not prefer gold loan and 90% of customers of NBFC’s has reasons to
prefer gold loan and 10% do not prefer gold loan.
Figure 3.3.11
Reasons to prefer gold loan
10%
No
9%
90%
Yes
91%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
NBFC's
Table 3.3.12
Types of Jewels pledged

Gold jewels 47 81 31 74
Gold coins 11 19 11 26
Total 58 100.0 42 100.0
From the table 3.3.13 it is found that 81% of respondents pledge gold jewels in Bank and 19%
pledge gold coins in Bank and 74% of respondents pledge gold jewels and 26% of respondents
pledge gold coins in NBFC’s. This shows that majority pledge only gold jewels when compared
to gold coins.
Figure 3.3.12 Types of jewels pledged
90% 81%
80% 74%
70%
60%
50%
40%
30%
19% 26%
20%
10%
0%
Gold jewels
Gold coins
Public Sector
Bank
Table 3.3.13
Difficulties faced to repay

Yes 31 53 24 57
No 27 47 18 43
Total 58 100.0 42 100.0
From the table 3.3.14 it is found that 53% of respondents faced difficulties to repay the gold loan
jewels and 47% have not faced any difficulties to repay debts in Banks and 57% of respondents
faced difficulty to repay jewel loan in NBFC’s and 43% of respondents have not faced any
difficulty to repay jewel loan in NBFC’s
Figure 3.3.13
Difficulties faced to repay
60% 57%
53%
50% 47%
43%
40%
30%
20%
10%
0%
Yes
No
Public Sector Bank
NBFC's
Table 3.3.14

Yes 47 81 34 81
No 11 19 8 19
Total 58 100.0 42 100.0
From the table 3.3.15 it is found that 81% of respondents have received regular remainders from
both Bank and NBFC’s and 11% of respondents have not received regular remainder in order to
pay jewel loan from both Bank and NBFC’s.
Figure 3.3.14
19%
No
19%
81%
Yes
81%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
NBFC's PSB
Table 3.3.15
Lost jewels
Yes 5 8 4 10
No 53 92 38 90
Total 58 100.0 42 100.0
From the table 3.3.16 it is found that 92% of respondents have not lost their jewels in bank and
8% of respondents have lost their jewels in bank and 90% of respondents have not lost their
jewels in NBFC’s and 10% of the respondents have lost their jewels in NBFC’s due to high
interest rates.
Figure 3.3.15
Lost jewels
100%
92% 90%
80%
60%
40%
8% 10%
20%
0%
Yes
No
PSB NBFC's
Table 3.3.16
Suggestions to repay
Defer payments 12 21 16 38
Restructuring the loan 46 79 26 62
Total 58 100.0 42 100.0
From the table 3.3.17 it is found that 79% suggested to restructure the gold loan and 21% has
suggested for defer payments in Bank and 62% of the respondents of NBFC’s have suggested to
restructure the loan and 38% have suggested for defer payment in NBFC’s.
Figure 3.3.16
Suggestions to repay
80% 79%
70%
62%
60%
50% 38%
40%
21%
30%
20%
10%
0%
Defer payments
Restructuring loan
PSB NBFC's
CHAPTER IV – FINDINGS, SUGGESTION AND CONCLUSION
4.1 FINDINGS
4.1.1 PUBLIC SECTOR BANK
 The age wise classifications of the respondents implied that 45% were in the class
interval 35-45 and a least of 12% respondents were below 25 years of age. This implied
that the borrowers were more between the age group of 35-45.
 In the gender wise classifications 55% of respondents were male and 45% of respondents
were female. This showed that majority of the respondents were male whom borrow loan
from Public sector bank.
 The educational qualification of the respondents concluded that 43% of the respondents
have completed their Under Graduate and only 10% of the respondents have completed
their Post Graduate.
 The profession of the respondents showed that 55% of the respondents were Government
employee and 16% of the respondents were self-employed.
 The monthly income of the respondents concluded that 40% of the respondents earn
between 25,000-50,000 and 15% of the respondents alone earn above 75,000.
 The financial institution classification of Public sector bank implied that 54% avail jewel
loan from SBI and a least of 17% only avail gold loan from Punjab National Bank.
4.1.2 NON-BANKING FINANCING COMPANIES
 The age wise classifications of the respondents implied that 50% were in the class
interval 25-35 and a least of 9% respondents were above 55 years of age. This implied
that the borrowers were more between the age group of 25-35.
 In the gender wise classifications 57% of respondents were female and 43% of
respondents were male. This showed that majority of the respondents were female whom
borrow loan from Public sector bank.
 The educational qualification of the respondents concluded that 48% of the respondents
have completed their Under Graduate and only 12% of the respondents have completed
their Post Graduate.
 The profession of the respondents showed that 45% of the respondents were Private
employee and 15% of the respondents were Government employees.
 The monthly income of the respondents concluded that 41% of the respondents earn
between the range of 25,000-50,000 and 12% of the respondents alone earn above
75,000.
 The financial institution classification of NBFC’s implied that 66% avail jewel loan from
Muthoot finance limited and a least of 10% only avail gold loan from Mannappuram
Gold loan.
4.1.3 COMPARITIVE STUDY ON PUBLIC SECTOR BANK AND NBFC’s IN

AVAILING GOLD LOAN
 From the comparative analysis out of 100 respondents 58 percent of the people prefer
public sector bank and 42 percent of the people prefer non-banking financing companies
to avail gold loan.
 From the analysis out of 58 respondents 45% hold account above 5 years and 9% hold
account less than a year in public sector bank and out of 42 respondents 50% hold
account 3-5 years and 10 % hold above 5 years in NBFC’s.
 From the analysis it has been found that 60% have been availing gold loan for 3-5 years
and 6 % have been availing for 1-3 years from public sector bank and out of 42
respondents 38% have been availing gold loan for a period of one year and 5% have been
availing for above 5 years from NBFC’s.
 From the analysis 36% of respondents have availed between 50,000-1,50,000 of gold
loan and 9% have availed below 50,000 from the public sector bank and 52% have
availed 50,000-1,50,000 and 12% have availed below 50,000 from NBFC’s.
 From the analysis out of 58 respondents 55% said that the gold loan margin is moderate
and 45% have said that the gold loan margin is high in public sector bank and out of 42
respondents 74% said that the gold loan margin is high in NBFC’s and 26% only said that
the gold loan margin is moderate in NBFC’s.
 From the analysis it has been found that 56% have said that it take 2-3 hours to sanction
gold loan and 44% have said that gold loan would be sanctioned within a hour in public
sector bank and out of 42 respondents 86% have said that gold loan would be sanctioned
within a hour and 14% have said that it take 2-3 hour to sanction the gold loan from
NBFC’s.
 From the analysis 55% of respondents avail gold loan on their own without any influence
and 4% avail because of influence of advertisement in public sector bank. In NBFC’s
62% avail gold loan on their own and 4% avail because of influence of neighbors and
employees of NBFC’s.
 From the analysis 38% said that the main reason to avail gold loan from public sector
bank is for the purpose of education and the least reason was to purchase of residential
property and out of 42 respondents 41% avail gold loan for the purpose of education and
10% avail for the purchase of residential property from NBFC’s.
 According to the analysis 50% of respondents have availed gold loan at 11-12% of
interest rate and 2% of the respondents have availed gold loan at a rate of 14%-15% from
public sector bank and out of 42 respondents 52% have availed for 13-14% interest rate
and 7% of the respondents have availed for gold loan above 15% of interest rate from
NBFC’s.
 From the analysis majority of the respondents of both public sector bank and NBFC’s
have said that they pay interest as EMI and principal amount later and least percentage of
the respondents said that they make partial repayment as mode of repayment in both
Public sector bank and NBFC’s.
 From the analysis out of 58 respondents 60% said that they prefer public sector bank
even at the time of emergency and 40% said that they prefer NBFC’s and out of 42
respondents 79% have said that they would prefer NBFC’s at the time of emergency to
avail gold loan and 21% of the respondents would prefer public sector banks.
 From the analysis it has been found that respondents mostly prefer gold loan when
compared to other loan because of its major features like less time taken to disburse the
loan and minimum procedure.
 From the analysis out of 58 respondents 81% pledge gold jewels and 19% pledge gold
coins in public sector bank to avail gold loan and out of 42 respondents 74% pledge gold
jewels and 26% pledge gold coin in NBFC’s. This shows that people mainly prefer to
pledge gold jewels instead of gold coins to avail jewel loan from bank and NBFC’s.
 From the analysis out of 58 respondents 53% have faced difficulty to repay the jewel loan
and 47% have not faced any difficulty to repay it in public sector bank and out of 42
respondents 57% have faced difficulty to repay the loan and 43% have not faced any
difficulty to repay the jewel loan in NBFC’s.
 According to the analysis the respondents from both the public sector bank and NBFC’s
81% have received regular remainders sent to repay the gold loan and 19% have not
received the regular remainders from bank and NBFC’s.
 From the analysis out of 58 respondents 92% have not lost their jewels and 8% have lost
in public sector bank and out of 42 respondents 90% have not lost their jewels pledged
and 10% have lost the jewels pledged in NBFC’s.
 From the analysis out of 58 respondents 79% have suggested restructuring the loan and
21% have suggested for defer payment in public sector bank and out of 42 respondents
62% suggested for restructuring the loan and 38% have suggested for defer payments in
NBFC’s.
 From the analysis, the respondents of public sector bank have been satisfied with the rate
of interest charged and it has been ranked first and they were not satisfied with the
service rendered and it has been ranked last and the respondents of NBFC’s have been
satisfied with the adequate amount provided and it has been ranked first and they were
not satisfied with the high rate of interest charged and it has been ranked last.
 From the analysis, the respondents of public sector bank have said that the major problem
faced was delay in disbursement of gold loan and it has been ranked first and as the rate
of interest charged is less it has been ranked as the least faced problem in public sector
bank. The respondents of NBFC’s have said that the major problem faced by them was
high rate of interest charged and it has been ranked first and the least faced problem was
poor quality of service and it has been ranked last.
4.1.4 TEST AND ANOVA
PUBLIC SECTOR BANKS
 From the analysis it has been found that as the p-value is less than 0.05%, at 1 % level of
significance the null hypothesis (H0) is rejected and alternative hypothesis (H1) is
accepted. Hence there is relationship between satisfaction level of respondents and
gender in availing gold loan from Public sector banks.
 From the analysis it has been found that as the p-value is less than 0.05, at 1 % level of
significance the null hypothesis is rejected (H0) and the alternate hypothesis is
accepted (H1). Thus it is concluded that there is significant relationship between
satisfaction level of respondents and age in availing gold loan from public sector bank.
 From the analysis it has been found that at 1 % level of significance the null hypothesis
is rejected (H0) and alternative hypothesis is accepted (H1). Hence there is
relationship between satisfaction level of respondents and gender in availing gold loan
from NBFC’s.
 From the analysis it has been found that as the p-value is less than 0.05, at 1 % level of
significance the null hypothesis is rejected (H0) and the alternate hypothesis is
accepted (H1). Thus it is concluded that there is significant relationship between
satisfaction level of respondents and age in availing gold loan from NBFC’s.
4.2 SUGGESTIONS
 Both Public sector banks and NBFC’s need to brush up their policies, rules and
regulation and to make easy procedures. Even though it is simple to avail gold loan from
bank and NBFC’s people still faces difficulties and problems in availing it because of
new entry of Organized Loan Lenders as well as existing Unorganized Loan Lenders, the
borrowers have open option for borrowing either from Banks or NBFCs or other
Financial Institution. To face the competition Banks and NBFC’s need to brush up their
policies, rules and regulation to ease the procedures.
 It is suggested that both Bank and NBFC’s should maintain a high standard of customer
service by maintaining help desk, attending to complaints, feedback, queries, etc., in
speedy and efficient manner. So that the satisfaction level about the services rendered
might increase and the problems faced by the respondents decreases.
 At the time of sharp decline in gold prices, this increases the original LTV. A lender may
require an immediate recovery of any amount that exceeds the original LTV ratio, but the
borrower may be unable to pay this amount. Restructuring declines, a borrower may be
more willing to default on the Loan. This possesses a serious concentration risk to the
lender, especially to the NBFC’s that have a high exposure to Gold Loans and lend at
high LTV ratios.
 Banks and NBFC’s must ensure transparent communication of loan terms and condition.
So that the borrowers could compare the loan terms and conditions and select the suitable
financial institution to avail gold loan.
 Now a day majority of NBFC’s give enticing advertisements to avail gold loan. But the
actual terms and conditions differ from such advertisements. The Government should
take steps to avoid such advertisements.
 If the borrowers failed to repay the gold loan, intimation about the auction should be sent
to the borrowers and the auction procedure must be made transparent.
 From the findings it is very clear that the problems faced by the borrowers of both banks
and NBFC’s customer were high. In order to reduce such problems every banks and
NBFC’s must receive customer complaints and grievances redressal system must be
effective.
 The public sector banks must simplify their procedures of gold loan lending for attracting
more customers i.e., borrowers. Most of the respondents claim that the banks access only
75% value of their gold for lending. Based on this findings it is suggested to the banks to
increase the gold assessment rate flexible to changing market conditions (like increase or
decrease in the gold prices), so that the borrowers can be benefited to the maximum.
4.3 CONCLUSION
Gold loan has become one of India’s fastest growing businesses. The entry of organized sector in
recent years, especially the entry of new players like Public sector banks and NBFC’s into the
field of gold loan, has made the business more profitable and it attracted widespread attention.
As gold loans business is offered by NBFC’s as well as Banks it helps the marginal sections of
society in meeting their necessary funding requirements. The financial services should be made
available to the users at reasonable prices/charges with the objectives of fair practices code and
financial inclusion, particularly for the financial transactions involved with low income groups.

Final Draft

Caricato da

Informazioni sul documento

Titolo originale

Copyright

Formati disponibili

Condividi questo documento

Condividi o incorpora il documento

Opzioni di condivisione

Hai trovato utile questo documento?

Questo contenuto è inappropriato?

Copyright:

Formati disponibili

Final Draft

Caricato da

Copyright:

Formati disponibili

A COMPARATIVE STUDY ON BORROWERS PERCEPTION TOWARDS

PUBLIC SECTOR BANKS AND NBFC’s IN AVAILING GOLD LOAN WITH

Dr. P. VANITHA MALARVIZHI., M.Com., M.Phil., Ph.D.

College with Potential for Excellence

Reaccredited (3rd cycle) by NAAC with “A” Grade

(CGPA 3.44 on a 4 point scale)

Lady Doak College

Dr. P. VANITHA MALARVIZHI., M.Com., M.Phil., Ph.D.

College with Potential for Excellence

Reaccredited (3rd cycle) by NAAC with “A” Grade

(CGPA 3.44 on a 4 point scale)

Lady Doak College

Lady Doak College,

This is to certify that the project titled “A comparative study on Borrowers

Head of the Department of Commerce

Signature of the External Examiner

Lady Doak College,

I hereby declare that the project entitled “A Comparative Study on Borrowers

Place: Madurai Signature of

Countersigned by Guide Head of the Department of

I praise and thank GOD ALMIGHTY for giving me good

It is of gratification for me to thank Dr.ROSY GODWIN,

I whole heartedly express my deep sense of gratitude toDr.P.

I am also very thankful to all staff members of the Department

CHAPTER TITLE PAGE

List of tables ii-v

List of figures vi-vii

I Introduction and design of the study 1-6

II Profile of Public Sector Bank and NBFC’s 13-36

III Analysis and Interpretation 37-77

IV Summary of Findings, Suggestion and Conclusion 78-84

Bibliography and Webliography viii-x

Appendix- Questionnaire xi-xv

S.NO TITLE PAGE

2.5 Number of Banking sector and NBFC’s in India

2.11 Gold Loan Schemes

2.12.2 Features of Gold loan of SBI

2.12.4 SBI gold loan rate

2.12.6 Features of Gold loan of Canara Bank

2.12.8 Canara Bank Gold Loan Rate

2.12.10 Features of Punjab National Bank Gold Loan

2.13.6 Muthoot Gold Loan eligibility Criteria

2.13.8 Features of Manappuram Gold loan

2.13.9 Fees and charges of Manappuram Gold Loan

PUBLIC SECTOR BANK

3.2.1 Age of the respondents

3.2.2 Gender of the respondents

3.2.3 Educational qualification of the respondents

3.2.4 Profession of the respondents

3.2.5 Monthly income of the Respondents

3.2.6 Financial institution

3.2.7 Age of the respondents

3.2.8 Gender of the respondents

3.2.9 Educational qualification of the respondents

3.2.10 Profession of the respondents

3.2.11 Monthly income of the Respondents

3.2.12 Financial institution

COMPARATIVE STUDY ON PUBLIC SECTOR BANK AND NBFC’s

3.3.1 Years of holding account

3.3.2 Period of gold loan

3.3.3 Amount of gold loan

3.3.4 Gold loan margin

3.3.5 Time take to disburse gold loan