Gold Loans

By
Nisarg Yagnik
Akhil Yadav
Avinash Raghvan
Shrey Gupta

Introduction
Loan against gold.
Advertisements-Muthoot Finance and Manappuram Finance.
Pawning gold as easy as eating a piece of cake.
Gold idle at home or locker
Pawning a house is tough
Less interest rate
Same day loans

Manappuram Gold Loan

Advertisement (Electronic Media)

Advertisement (Electronic Media)

Catchy jingle made it instant hit among people.

Urgent need for money
Less family savings
Addressed Manappuram as an old friend
Instant loan in 2 minutes
Slogan ab life banaye asaan

Advertisement (Electronic Media)

Advertisement (Electronic Media)

No procedure explanation.
Use of a celebrity face and a famous jingle.
Paise ke liye Paisa hi chahiye kya?
More of a reminder to the people.

Advertisement (Print Media)

Advertisement (Print Media)

Advertisement (Print Media)

Other forms of Advertisement

Other forms of Advertisement

Sales
Loans Granted(In Rs. Cr.)
12000

10802.47

10905.46

10000

10097.8
8991.3

8000
6954.59
6000
4000
2000
1
0
FY'11

FY'12

FY'13
Mannapuram

FY'14

FY'15

HDFC Gold Loan

Bharosa Gold Loan Scheme

Rural Customer
'Viable Finance' to the underprivileged
Easily transferable, easily encash able
No certification of income required
Tenure for gold loan is short

Advertisement ( Electronic Media )

Advertisement ( Electronic Media )

Loan in 45 minutes.
No documentation
Security of your gold
Special benefits for women customer
Low interest Rate
Loan amount up to 140 per cent of gold's valuation

Advertisement ( Print Media )

Scroller

Display

Sales
Loans Granted(In Rs. Cr.)
12000
10000
8000

8172.12

9621.11

9088.84
7752.48

6000
5807.16
4000
2000
01
FY'11

FY'12

FY'13
HDFC Bank

FY'14

FY'15

Impact of Media Campaigns

2012 ad campaigns is released majorly focusing on the middle
class audience
How a simple collateral can help you in difficult situations
How it could empower women to survive as an individual with and
without a male family member support.
Campaigns had created so much buzz in the market that people
started recognizing the brand immediately

Muthoot Gold Loans

Advertisement ( Electronic Media )

Advertisement Description
Here, the father is tensed since his son got accepted in a college to London but
cannot afford the fees.
Then, the mother says why be worried and removes the box of gold ornaments.
When the father says why are using it, she replies with the fact that this gold is
more useful for his future than used after marriage.
Then, they go to Muthoot to take a Gold Loan and they show how secure the
customers gold are.
Lastly, they show the son getting fame in London and a reporter asks, Why did you
give your gold on loan?
The mother replies with the fact that it was for securing his future
Sone pe Suhaga Gold Power Loan

Advertisement
(Print Media)

Impact of Media Campaigns

2006 Gold Loan Education series, where customers were
explained on the benefits of the collateral and how it could
empower and sustain an individual and his family.
First national campaign Loan in 5 minutes, major campaign
Campaigns had created so much buzz in the market that people
started recognising the brand immediately
Association with Delhi Daredevils
Other big ticket events like associating with the Cochin
International Half Marathon

Sales
Loans Granted(In Rs. Cr.)
30000
25000

26540.57
22018.62

21477.41

23576.09

20000
15000
11802.55
10000
5000
0
FY'11

FY'12

FY'13
Muthoot

FY'14

FY'15

Future Scope
According to Avinav Chaubey (AGM-Marketing ),the group are
looking at digital in a big way and target being to utilise the
medium as a separate platform for revenue generation, apart from
the revenue generated through our branches.
Moving forward, we plan to showcase and position Muthoot Group
as a multi-diversified business conglomerate rather than just a
gold loan company.
They are also expanding in the education field by opening colleges
and schools.

ICICI Gold Loans

Advertisement ( Electronic Media )

Advertisement Message
Conveys the need of money to work in the business.
Working capital
Security in gold
Valued properly
Familiar treatment
Less paperwork
No fixed instalments
Correct evaluation
Easy paperwork
Nominal interest

Impact

Small business owners benefitted

Helped young entrepreneurs for immediate funds
Jiyo Khulke
Live freely
Khyaal aapka We care about you
Attached emotional and self-realisation needs.

Advertisements ( Print Media and Campaigns )

Contd.

Sales
Loans Granted(In Rs. Cr.)
12000
10000

10822.06
9407.44

10068.6
9014.51

8000
6000
5712.63
4000
2000
01
FY'11

FY'12

FY'13
ICICI Bank

FY'14

FY'15

Interest Rate Comparison

Loan Type/Interest Rates Minimum Maximum

Gold Loan
10
16.5
Personal Loan
11
22
Car Loan
10.75
15.5
Commercial Loans
12
16

Comparison

Comparison

Emotions
Ease of availing
Interest rates
Localisation of advertisements
Different classes of people

Sales
Loans Granted(In Rs. Cr.)
30000
25000
20000
15000
10000
5000
0
FY'11

FY'12

FY'13
Muthoot Fincorp

Mannapuram

FY'14
HDFC

ICICI

FY'15

Gold Loan Portfolio of Key Players

Source: Cognizant gold loan Survey 2011

References
http://www.icicibank.com/Personal-Banking/loans/gold-loan/index.page?# toptitle
accessed 4 Mar 2016
http://
www.slideshare.net/padmasreeharish/a-btl-specialist-company-to-grow-your-market
accessed on 4 Mar, 2016
http://www.kritievents.com/kriti-gallery.html accessed 3 Mar, 2016
https://www.youtube.com/watch?v=DJYnA5HpE3M accessed 3 Mar 2016
https://www.youtube.com/watch?v=kTMY4TsAxWc accessed 3 Mar, 2016
https://www.youtube.com/watch?v=X0whywWaxWU accessed 4 Mar, 2016
https://www.youtube.com/watch?v=1G4yAo3XjTM accessed 2 Mar 2016
https://www.youtube.com/watch?v=v_rSTVAer94 accessed 4 Mar,2016