1. 1.

Objectives of the study This study is descriptive in nature and aims to

deepen the understanding of the Indian gold loan market. The study also tries
to know the difference between the conventional personal loans and gold
loans. Through this study, an attempt is made to know the various purposes
for which clients acquire gold loans. Specifically the study tries: 1. To gather
knowledge about the Indian gold loan market 2. To find the reasons for
choosing gold loans over conventional personal loans 3. To know the purposes
for availing gold loans by the respondents. 4. To find out the competitive
position of India Infoline, and the ways and means to improve on the service
by India Infoline Finance Limited. 5. To study about consumer awareness&
satisfaction, about operational Services & procedures of India Infoline ltd. 6.
To understand the satisfaction level of clients with India Infoline regarding
service provided by staff.
2. 2. 2 INTRODUCTION OF THE PROJECT As researcher discussed in earlier he
have got the topic for two months summer internship program was “Market
Scoping and Analysis of Financial Investment & Loan Product” For knowing the
scope and analysis of financial investment in the market researcher have
conducted a small research with help of “Financial Awareness Survey Form”.
Marketing research will help researcher to identify the need of the customer
by gathering the information by filling the survey form from individual
customer. Market Research is systematic problem analysis, model building
and fact finding for the purpose of important decision making and control in
the marketing of goods and services. Marketing Research is a well-planned,
systematic process which implies that it needs planning at all the stages. It
uses scientific method. It is an objective process as it attempts to provide
accurate authentic information. Marketing Research plays a very significant
role in identifying the needs of customers and meeting them in best possible
way. The main task of Marketing Research is systematic gathering and
analysis of information. Marketing Research is essential for strategic market
planning and decision making. It helps a firm in identifying what are the
market opportunities and constraints, in developing and implementing market
strategies, and in evaluating the effectiveness of marketing plans. Marketing
Research is a growing and widely used business activity as the sellers need to
know more about their final consumers but are generally widely separated
from those consumers. Marketing Research is a necessary link between
marketing decision makers and the markets in which they operate. For
gathering the more and accurate information from the customer about
financial product and gold loan market, researcher are made the questioner
and filled the same from the individual customer.
3. 3. 3 INTRODUCTION OF THE COMPANY India Infoline originally incorporated on
October 18, 1995 as “Probity Research And Service Private Limited” at
Mumbai under the companies act, 1956 with registration number – 1193797.
And become a public limited company on April 28, 2000. The name of the
company was changed to India infoline.com limited on May 23, 2000 and later
to India Infoline Limited on March 23, 2001. It is the first company in India to
foray into the online distribution of Mutual Funds. It is a one-stop financial
service shop, most respected for quality of its advice, personalized service
and cutting-edge technology. The No-1 corporate agent for ICICI Prudential
Life Insurance Company. Research acknowledge by Forbes as “Must Read for
Investor in South Asia” The India Infoline was listed on Bombay and National
Stock exchange with a net worth of INR 200/- crore and a market cap of over
INR 1970/- crore. The company has a network of 976 business locations
(branches and sub-broker) spred across 365 cities and towns. It has more
than 800,000 customers. It is registered with NSDL as well as CDSL as a
depository participant. Providing a one-step solution for client trading in the
equities market. The Company is engaged in the activity of mortgage
 financing, loan against securities, gold loans, margin funding and other
consumer financing products. India Infoline Finance Ltd. is professionally
managed and shares the professional values and ethos of its parent company,
IIFL and has acquired and maintained a reputation for reliability, transparency
of operations and absolute integrity. A steady growth rate validates the trust
that industry has reposed in the Company. IIFL offers advice and execution
platform for the entire range of financial services covering products ranging
from Equities and derivatives, Commodities, Wealth management, Asset
management, Insurance, Fixed deposits, Loans, Investment Banking, Gold
bonds and other small savings instruments.
4. 4. 4 Our research is available not just over the Internet but also on
international wire services like Bloomberg, Thomson First Call and Internet
Securities besides others where it is amongst one of the most read Indian
brokers. IIFL is a listed company with a consolidated group net worth of about
Rs 1,800 crores. The income and net profit during FY2010-11 were Rs. 14.7 bn
and Rs. 2.1 bn respectively. IIFL’s Crisil and ICRA Rating for short term is top
rated as CRISIL A1+ and ICRA (A1+) respectively. For long term, IIFL has been
rated ICRA (AA-) by ICRA and CRISIL AA- /Stable by CRISIL indicating high
degree of safety for timely servicing of financial obligations. The physical
presence in key global markets includes subsidiaries in Colombo, Dubai, New
York, Mauritius, London, Singapore and Hong Kong. IIFL Holdings Ltd is divided
into 10 companies. 1. India Infoline Ltd. 2. India Infoline Finance Limited: India
Infoline housing Finance Limited is under this company. 3. India infoline
Insurance brokers Ltd. 4. India Infoline Commodities Ltd. 5. IIFL Assets
management company & IIFL MF 6. IIFL Private Wealth management Ltd. 7.
IIFL (Asia) Pte Ltd. 8. IIFL Inc. (US) investment Advisors Ltd. 9. IIFL (UK) 10.IIFL
Multi National Company.
5. 5.  Variety of schemes are available to chose from Loan gets processed in as
low as 5 minutes  Minimal amount of paperwork and documentation is
required  Interest / Loan Amount due can be paid at any of IIFL Gold Loan
branches pan-India  Loan can be paid back on a monthly or quarterly basis 
Tenor for loans ranges from 7 days to 11 months  Loan amount ranges from
min Rs 1,000 to max Rs 10,00,000 5 INTRODUCTION OF GOLD LOAN Gold
loan or loan against gold is the easiest and quickest way for servicing your
financial needs. To avail a gold loan, all you need to do is pledge your gold
ornaments with us and we would provide you with a loan amount as per the
market value of your gold. Unlike other loans, gold loan does not require you
to provide any income or salary proof. Moreover, it has comparatively lower
interest rates; requires lesser documentation, and hence is processed in
lesser time. We at IIFL provide maximum loan against your gold at lowest
interest rates. We have a strong presence Pan-India and have serviced a large
number of customers in a very short span. We offer different types of
schemes as per your requirement and convenience. Following are the main
features of our loans:- The main features of IIFL Gold Loan:-
6. 6.  In rural areas Agricultural loan against gold is also available for
agriculturist at very nominal rate of Interest of 7%-8%, proof of agricultural
document needs to be provided. Sr. No Scheme Name Value Interest Rate (%)
Rate per gram 1 Bharat Nirman 18M 1.50% Rs. 1,600/- 2 Super Express M
1.50% Rs. 1,850/- 3 Bharat Nirman 20M 1.50% Rs.1,750/- 4 Bharat Nirman
22M 1.75% Rs. 1,850/- 5 J/L W1 1.30% Rs. 1,850/- 6 J/L W2 1.50% Rs. 1,850/-
One of the main advantages of gold loan is its low interest rates. Usually loan
over gold is provided at the interest of 15-21% per annum and this is quite
low compared to personal loans available at interest rates of 15-26% per
annum.  Unlike any other unsecured loan, gold loan doesn’t require many
papers, only few documents such as ID proof and address proof is enough to
avail for such loan.  Gold loan doesn’t demand any certificate to show your
 salary or income and even no credit card history is required. Thus even
unemployed and non working people can go for gold loan. 6 IIFL GOLD LOAN
SCHEME Advantagesof Gold Loan:-
7. 7.  Gains for the wider economy: India has the world’s largest stock of
privately held gold with informed estimates ranging from 15,000 to 20,000
tonnes. When people borrow against gold (technically called ‘monetisation’),
the impact is to set in motion a whole new chain of economic activity. No
depreciation of underlying asset: Unlike other secured loans, the underlying
asset in a gold loan is not subject to depreciation. At the same time, unlike
land, it is a liquid asset and the transaction costs involved when enforcing the
security are minimal.  In case of gold loan processing time is very less.
Usually banks take just few hours to complete the process where as in case of
NBFC’s (Non Banking Financial Companies) a few minutes are enough for the
same. So for immediate financial help this is the best option.  Borrower will
be given an option to pay only interest during the entire term and at the end
of the tenure you can pay complete borrowed amount in single shot.  Gold
loan is the most simple and convenient forms of loan because here all you
need to do is pledge your gold with a bank or finance company and get up-to
80% of the market value of the gold as a loan. 7
8. 8.  While opting for gold loan check the interest rates in various banks and
private finances. If you go for private lenders then better to go with one who
has been in this business for many years. Go for gold loan if you are
confident of returning the money in time otherwise, you will be penalized and
all your pledged gold will come under the control of bank or finance company
from where you taken a Gold Loan.  It is advisable to check with the loan
provider before taking the loan. These charges could change the amount that
you may finally receive. Advice on Gold Loans:-  Pre-payment penalty: Most
of the service providers do not charge a penalty for repayment before the
loan tenure is over. But some may still have this charge in place.  Late
payment penalty: Most of the service providers charge late payment penalty
and this too can vary from one institution to the other.  Valuation Charge:
These are the charges to be paid to the valuator. These charges are also
specific to the service provider and those having in-house valuators do not
charge any extra amount for valuation.  Loan processing charge: While some
of the service providers may waiver these charges, some banks do charge a
processing fee. 8 Chargesassociated with Gold Loan:-
9. 9. 9 RBI's goldloan regulationfor NBFCs The Reserve Bank of India (RBI) on
Monday tightened regulations governing non- banking finance companies
(NBFCs) lending against gold jewelry. The new rules include strict
documentation for high value loans against gold and prohibition on misleading
advertisements by NBFCs such as offering availability of gold loans in a
matter of 2-3 minutes. The guidelines are broadly based on the January
recommendations of an expert panel set up by RBI, headed by K.U.B.Rao. The
RBI, however, did not accept the recommendation of the panel for higher
loan-to-value (LTV) ratio on gold loans. The LTV ratio, or the amount that can
be lent against gold, has been maintained at 60%. This means for gold worth
Rs100 offered as collateral, lenders can give loans up to Rs60. Further, NBFCs
should also proportionally value while deciding the LTV on jewelry of lower
purity of gold, RBI said. Also, NBFCs financing against the collateral of gold
must insist on a copy of the PAN card of the borrower for all transaction above
Rs5 lakhs and all high value loans of Rs 1 lakh and above must only be
disbursed by cheque, RBI said. The apex bank has clearly stipulated that
NBFCs should not issue misleading advertisements like claiming the
availability of loans in a matter of 2-3 minutes. RBI has also asked NBFCs to
make the auction process of the gold more transparent by disclosing the
 details of auction process in the annual report, including full details of the
value fetched in the auction. The reserve price for the pledged ornaments
should not be less than 85% of the previous 30 day average closing price of
22 carat gold as declared by the Bombay Bullion Association Ltd, an industry
body, RBI said.
10. 10. 10 Gold Loan Process 5. Cash Handling to customer 4. Checkingand
approval of Gold 3.CCE collectingthe Gold 1. Customer approaches the branch
2. Interaction with CCE 3. CCE Collecting Gold 6. Cash handling to customer 5.
In 5L and above, conversation with BM 4. Appraisal of gold
11. 11. 11 GOLD LOAN FLOW CHART CCE Explains the various scheme. If
customer is convinced to pledge, collects KYC documents and gold.
Verification of KYC documents done and passed on to BM for further
verification. BM-ID and Address Proof verification. Valuer1 Confirms the count
and gross weight. Check gold for its purity. Brief the customer about their
requirement and other features. Valuer2 Confirms the purity by testing.
Passes the appraisal sheet to BM. Branch Manager Confirms the purity, loan
amount and passes the same to CCE. CCE - At the same time, CCE and
valuers does system entry. Signature of customer, valuers and BM done in the
loan docs. paper passed on to Cashier . Cashier Disbursementof
cashalongwithdenominationnotingincashregister.
12. 12.  Counting jewel items in front of customer and taking his/her all query.
Explaining terms and conditions of the product to the customer.  Helping
customer to solve his / her all query.  Handling inquiries from customers
regarding loans against gold.  Lead the customer to branch Role of customer
care executive:  Ask customer to enter details in visitor register  Ask
customer the reason for visiting branch  Greet the customer  Branch
Manager Job of Security Guard: First and foremost things are that security
guard needs to be dressed properly.  Valuer 1 and 2  Customer care
executive  Security Guard  Operational learning: Role of staff engaged in a
normal branch process: 12
13. 13.  It is important to keep gold packet in serial order in vault. Each and
every details mention on packet must be filled in with accuracy.  Every gold
jewelry item must be counted and matched with the appraisal sheet before
inserting it in gold packet.  Working out on loan amount with mutual
conversation.  Finding out the purity and making appraisal sheet.  Testing
gold with two methods which includes , skin test and salt test.  Checking the
jewelry with accuracy.  Ensuring all the details are filled up in customer detail
form. Role of valuer 1 and valuer 2:  Ensuring all the KYC documents are
verified with original. 13
14. 14.  Keep the gold packet in vault in serial order mentioning the GL number
(to and from) Name of item Gross weight Net weight Per Gram Rate Amt (Net
wt.* Per gm rate) Affix the seal on sticker  Sign on the sticker (BM and
valuer 1)  Fix the sticker  Insert the gold and appraisal sheet in the packet 
Fill in the details on the packet  Suggest lower loan amount to BM. Steps to
be followed while sealing of gold  Pass out gold to valuer 2 for re- valuation 
Note down result in following format:  Confirm the purity with the help of
touch stone and acid test.  Sort gold items according to solid, chains and
others. 14 Steps to be followed while appraising gold
15. 15.  One should not process the loan if customer doesn’t have the proof of
current residential flat. In this case rent agreement is must as a address
proof.  A valid address proof must be taken.  Do not violate KYC norms. 
Handover the cash to customer in front of CCTV camera. Case 1: customer
doesn’t have valid documents (KYC norms)  Pass out the same to cashier to
re-count.  Take cash as per cash denomination entered in system  Joint
 custodians open the vault room.  To make sure that cash transaction is done
in front of cctv camera. Steps to follow at the time of cash handling: 
Ensuring that cash is counted twice before giving it to customer.  To make
sure that cash is taken from vault strictly as per cash denomination entered in
the system. 15 Role of cashier:
16. 16.  Customer can also change the scheme with remaining jewelry In part
release customer has the facility to remove his / her some of the jewelry  Do
not allow any senior to check branch inventory without checking his/her ID
card Part release:  Alert other branches about the customer to avoid any
further mishap Case 4: Branch visit by senior  Telephonic verification must be
done at the same time  In case of doubt , ask the customer about the reason
for taking loan  Customers behavior must be noticed  Inform your customer
incase of broken jewelry.  Do not deny of giving loan but you can always say
your customer to come up with all the documents so, you will process the loan
in 5 min. Case 3: Fraud customer  One should not process the loan if
customer doesn’t give you the address proof at the same moment.  In this
case address proof is to be taken  Do not violate KYC norms. 16 Case 2:
customer doesn’t have address proof (KYC norms)
17. 17.  Interestamount= principal amt * annual ROI /365*number of days Make
sure that address verification is done by BM before disbursal of loan  Explain
customer about the advantages of RTGS/NEFT process  Convince customer to
opt for RTGS/NEFT mode of cash transfer  Branch manager has to explain
customer about RTGS process  Every transaction of cash must be done in
front of CCTV camera Role of branch manager:  Collect cash before handling
gold to customer  Open the gold packet in front of customer  At the time of
final release kindly check the borrower copy  When customer comes for
interest payment make sure that it doesn’t take much time Final release: 17
18. 18.  Union Gold Loan Union gold loan provides credit facility to needy farmers.
The lending rate is Rs 1800 per gram gold ornaments. Based priority sector
like agricultural purposes. Under non priority sector for basic necessities for
unforeseen expenses. Loan amount consumption purposes is up to Rs.2000/-.
The Non-Priority Sector loan amount is max.Rs.5 lacs. Manappuram Finance
Gold Loan Manappuram Finance also facilitates gold loan within 5 minutes. It
help to draw instant Cash by subscribing gold ornaments and Jewellery. It
provides loan at higher points, based on purity, net weight of gold. The
candidate must have one recent ID—Voter ID/ Ration Card/ Driving License/
Passport. No time-consuming formalities involved.  Muthoot Finance Gold
Loan Muthoot is a Kerala originated association set up by Muthoot Ninan
Mathai in 1887 at Kozhencherry in Travancore district which was later being
adopted by M George Muthoot. Loan is received within a time period of 5 min.
It ranges from Rs 1500 to 1 crore. 0%processing fees. Interest rate of 1% per
month. 18 Competitive analysis
19. 19.  HDFC Gold loan HDFC gold loan term loan provides instant loans. Regular
interest on loan is being granted. Identity Proof like Passport Copy/ Voters ID
card/ Driving License along with proof like Ration card/ Telephone Bill/
Electricity Bill/ Rental Agreement/ Passport copy/Trade license /Shop19 &
Gold Loan application. All the gold ornaments that are to be kept as
mortgage for the loan.  DP Note delivery.  Two passport size photographs
of the borrower.  Letter of witness in case of illiterate borrowers.  SBI Gold
loan SBI gold loan is loan which satisfies as a biggest advantage to overcome
crisis and is a personal loan phenomena. It has low interest rate. The loan
amount of Rs. 10 lakh is attained by the customer. It also provides gold loan
for farmers for agricultural necessities. The main documents required for
 applying gold loans are Est License / Sales Tax certificate, 2 pass port size
photographs.
20. 20. 20 Loan features Leander Bank NBFCs Muthoot Finance Manppuram
Muthoot Fincrop Indian Bank Indian Overseas Bank Federal bank IIFL Rate of
Interest 12%-21% - 13.45%- 24% 12.25 - 15.25% 12 %- 12.5 % 13.5% - 15.75
% 15 % - 21 % Loan to value Ratio Avg of 72%, high of85% Up to 85% Up to
90%; 100% in some cases Lower of 70% or value based on rate per gram and
net weight - Up to 85% 55 % to 80 % Loan tenure - - 6 to 36 months - - 6
months to 12 months 7 dasy to 11 month Disbursal Time 5 mins 5 mins 3
mins to 4 hours 5 mins to 4 hours Min. Loan Amount 1,500 - 500 - 50,000 -
3,000 Max. Loan Amount 10 million 10 million No Limit 2 million 1 million 7.5
million 10 million Purpose Any Any Any Any Commercial only Any any
Processing Fee 0 0 Rs. 5 to Rs. 75 0.5% for loans greater than Rs. 25,000 Rs.
202 per lakh; Rs. 300 appraiser commission 0 Rs. 49 to Rs. 150
21. 21. 21 Documentation Only ID at disbursal Only ID at disbursal Only ID at
disbursal ID proof and asset ownership documents Proof of commercial
activity; unaudited balance sheet for > 3 lakhs; jewel appraisal certificate
Asset ownership proof and bank account ID proof and address proof Others
Important Features • In-house evaluation • Schemes with different value per
gram and corresponding interest rate Interest to be paid for number of days
loan availed • Part redemption • Part payment • Exclusive counters for loans
more than Rs. 25,000 • Prompt payment rebate of 2% • Minimum 7 days
interest is payable - - - • Part redemption • Part payment • EMI Facality •
Prompt payment rebate of 2% • Minimum 7 days interest is payable
22. 22.  Secondary data: are published materials such as periodicals, journals,
newspapers, and website. SAMPLING PLAN: Sampling since segment wise
investors in IIFL are not available for the overall customers was considered for
the study. 100% coverage was difficult within the limited period of time.
Hence sampling survey method was adopted for the purpose of the study.
Primary data: Questionnaire  Discussions with the concerned Personal
interviews and informal discussions were held with customers to ascertain the
awareness level. Further applying simple statistical techniques has processed
the data collected. Sourcesof data:  Random sample survey of customers 
Questionnaire 22 RESEARCH METHODOLOGY Research design ofthe study:
The study is based on survey technique. The study consists of analysis and
Market Scoping of Financial product of IIFL. For the purpose of the study 80
customers are picked up and their views solicited on different parameters.
The methodology adopted includes:-
23. 23.  Field Study: Directly approached respondents. DATA
COLLECTIONINSTRUMENT Collection of data through questionnaires: The data
collected for the study purpose is through questionnaires. customers of IIFL
have been selected randomly for the study purpose and then the information
revealed from the customers is analyzed and interpreted in the study.
Organizationoffield work Initial field work has done for pre testing tools for
data collection. The data is collected through the direct interaction with the
customers through questionnaires answered by them. Customers of IIFL were
randomly chosen for the purpose of the study in Chembur camp. Sampling
procedure: From large number of customers of IIFL were randomly picked up.
 Sampling Methods: Probability sampling requires complete knowledge about
all sampling units in the universe. Since due to time constraint non-probability
sampling was chosen for the study.  Sampling size: A sample of sixty
customers was chosen for the purpose of the study.  Population: (universe)
customers of IIFL 23
24. 24.  As the managers are busy in their duty schedules it is not possible for us
to spend more time in interaction and discussion with them. As per the
 company rules many information was not disclosed.  Respondent are not
sincere and care full to fill up the questioner so we cannot find right solution.
 Sample size of the questioner is 80 which are very small that is not enough
to study the awareness of consumer of that particular above area.  Time
limit is a major constraint. This research reflects on individual customer in
Chembur only. So findings and suggestion given on the basis of this research
cannot be extrapolated to the entire population. 24 LIMITATION OF THE
STUDY:-
25. 25. 25 Data Analysis Interpretation Q.1) Occupation of respondents? Ans.
Business - 25 Salaried –55 Here we can see that salaried people are more
near Chembur branch because there are many companies nearby and people
from various places come there and work in different fields. Number of
Respondents Business Salaried
26. 26. 26 Q.2) Marital Status of Respondents? Ans. Married - 65 Unmarried –15
Diagram above shows that majority of the respondents were married and very
few of them were Unmarried. We surveyed most married people because, the
requirement of money are mostly seen after marriage. Marital Status Married
Unmarried
27. 27. 27 Q. 3 How Many times in a year you have emergency requirement of
money? Numbers of times Requirement Numbers of people 0 05 1 55 2 17 3
03 4 00 We can observe that maximum 55 no. of respondents have
emergency requirement of money others are comparatively low. It may be
that they plan their expenses well than spent & keep a good amount for their
savings so that they can meet their emergency requirements. 0 10 20 30 40
50 60 0 times 1 times 2 times 3 times 4 times EmergencyRequirement of
Money Emergency Requirement of Money
28. 28. 28 Q.4) Are you aware about concept of gold loan? a) Yes b) No It can be
observed that majority of the respondents were aware of the concept of gold
loan. Aware of Gold Loan Yes No 65 0 15
29. 29. 29 Q.5) Have you ever used gold loan service? a) Yes - b) No - Majority of
the respondents did not utilize the service of gold loan because they didn’t
find the need to do or may be because they have enough savings to meet
their emergency requirements. Gold Loan Service Yes No 32 0 48
30. 30. 30 Q.6) From which company people are taken gold loan? Gold Loan
Company Number of People IIFL 03 Muthoot 09 SBI 05 Mannapuram 04 ICICI
01 Here, we can see that maximum number of clients i.e., 30% clients had
taken loan from Muthoot, 29% clients had taken loan from SBI, 21% clients
had taken loan from Mannapuram and 08% clients had taken from ICICI &
03% clients had taken from IIFL. 0 1 2 3 4 5 6 7 8 9 10 Gold Loan Company
Gold Loan Company
31. 31. 31 Q. 7 How Much Amount of Loan Taken? Gold Loan Company Number of
People 5,000-25,000 05 25,000-50,000 09 50,000-75,000 06 75,000-1,00,000
02 Here, we can see that maximum number of clients i.e., 9 clients had taken
loan amounting 25k to 50k, 05 clients had taken loan amounting 5k to 25k, 06
clients had taken loan 50k to 75k and 02 clients had taken 75k and above
gold loan. 0 2 4 6 8 10 Loan taken Loan taken
32. 32. 32 Q. 8 which is the safest instrument for saving & Investment?
Instrument Number of people Saving Bank ac 37 Insurance 13 Real Estate 09
Stock and Shares 05 Fixed Deposit 15 Post Office 19 others 03 Here, we can
see that maximum number of clients i.e., 37 clients responded that saving
bank account is the safest investment and then after post office savings in the
safest investment in today’s world. 0 5 10 15 20 25 30 35 40 Safest
Instrument Safest Instrument
33. 33. 33 Q. 9 what is approximately Monthly Household Expenses? Instrument
Number of People Below 10,000 50 Up-to 15,000 11 Up-to 20,000 08 Up-to
 25,000 07 Above 30,000 04 Here, we can see that maximum number of
client’s i.e.,50 clients responded their monthly household expenses are below
10,000 & 11 clients are having monthly expenses up-to 15,000 & 08 clients
having monthly expenses up-to 20,000 and 07 clients having up-to 25,000
monthly expenses and 04 clients having above than 30,000 monthly
expenses. 0 10 20 30 40 50 60 Below 10,000 Up-to 15,000 Up-to 20,000 Up-to
25,000 Above 30,000 Monthly Household expenses Monthly Household
expenses
34. 34. 34 Q. 10 How Many are having Own house or taken on Rent? Type of
House Number of People Owned 47 Rented 33 Here, we can see that
maximum number of clients i.e., 59% clients have owned house , while in the
other hand only 41% clients have rented house. Number of House Owned
Rented
35. 35. 35 Q. 10) How many are planning to buy new home? Answers Number of
People Percentage Yes 25 78% No 08 22% Here, we can see that maximum
number of clients i.e., 78% clients are planning to purchase owned house,
while in the other hand only 22% clients are not planning for purchase of
owned house. Planning to buy new home Yes No
36. 36. 36 Q.10B. How much amount is needed for purchase a owned house?
Amount Number of People 3,00,000-5,00,000 02 5,00,000-10,00,00 11
10,00,000-20,00,00 08 20,00,000-50,00,000 05 Above 50,00,000 07 Here, we
can see that maximum number of clients i.e., 11 clients are planning to buy
owned home from ranges 5 lakh to 10 Lakh and same number of clients also
planning to buy owned home from ranges 10 lakh to 15 lakhs and then after
05 clients are planning to buy home within the range of 15 to 25 lakhs and 02
clients are planning to buy 3 to 5 lakhs amounting and 07 person are planning
to buy above 25 lakh home. 0 2 4 6 8 10 12 Amount needed for purchaseown
house Amount needed for purchase own house
37. 37. 37 Conclusion For borrowers, gold loans have emerged as one of the best
means of raising quick, short-term capital. For lenders, gold loans are more
advantageous compared with home and car loans because of the shorter
tenures, lower processing time and cost, and greater returns due to higher
interest rates. These factors, along with appreciation in value of gold, have led
to an explosion in the gold loan market. With everyone wanting a piece of this
action, the organized sector is challenging the large unorganized gold loan
market dominated by pawnbrokers and moneylenders, with NBFCs leading
the pack due to simpler approval and disbursal processes, flexible products
and better accessibility. An examination of these trends makes clear that
banks/NBFCs that aren’t yet into the gold loan market might find it attractive.
This is due to the following factors: • Better ROI due to lower cost, higher
interest rates and strong collateral. • Ability to compensate for lower off-take
of car/ home loans. • Scope for cross-sell opportunities in future including
other gold-based products. • Opportunity to capture the growing underserved
and under-penetrated market. With approximately 65% of the market in rural
areas, firms need to develop strategies to target this segment effectively and
provide better accessibility to borrowers. When expanding, firms need to
ensure consonance of services and operations throughout the network. Firms
need to manage risks related to possible sharp fall in gold prices and non-
adherence of regulatory norms and also need to ensure that physical assets
are properly valued, stored and documented. Firms need to invest in
technology to better manage the increasing volumes and to reduce risks.
38. 38. 38 FINDINGS According to the survey most of the customers of “India
Infoline Ltd” says that rate of interest charged by IIFL is satisfactory. Coming
to faith 59% say India Infoline Ltd is better than others NBFC’s due to
customer’s satisfaction. Lack of promotional activities undertaken by India
Infoline Ltd. In Chembur Branch. IIFL gold loan is less preferred by the general
 people might because of less awareness about IIFL goal loan services. People
want to invest their money in the bank saving accounts rather than insurance,
fixed deposit, stocks and shares. Most of respondents have their annual
income between 2lac to 4lacand from them most of the people prefer LIC for
insurance. Many people know the concepts of gold loan in spite of that they
don’t take Gold loan.
39. 39. 39 RECOMMENDATIONS& SUGGESTIONS Most of the people are not much
aware of IIFL gold loan services and its benefit. So INDIA INFOLINE FINANCIAL
LIMITED can take general awareness of GOLD LOAN SERVICES plan to the
customers. INDIA INFOLINE should maintain the customer satisfactions. There
is lack of new customer addition in the branches of Indian Infoline Financial
Limited, only existing customer comes to respective branches for gold loan so
it is important to increase the awareness about the financial products of
Indian Infoline Financial Limited in respective area. Some promotional
activities are required for the awareness of the customer. The Company
should increase Exposure. It is the good tool to capture the market. To
increase awareness about GOLD LOAN SERVICES AND OTHER FINANCIAL
PRODUCT and the name India Infoline itself, the company should organize
campaign. The campaign can be weekly, monthly, yearly, it will give a good
result to the company to capture market in the competitive position.
40. 40.  http://www.lfymag.com/admin/issuepdf/32-35_Gold%20Loan_FFYApril-
14.pdf www.google.com  www.mutualfundsindia.com 
http://www.agloc.org/  http://www.muthootfinance.com/services/gold-
loan.html  http://www.neytri.com/gold-loans-what-you-must-know/ 
http://www.iiflfinance.com/Products/GoldLoan.aspx  www.indiainfoline.com
40 Bibliography Websites:
Recommended