A PROJECT REPORT ON TO STUDY REGARDING THE IIFL GOLD LOAN IN LUDHIANA CITY (GILL ROAD

)

Submitted to (Shoolini University, Solan, H.P) In partial fulfilment of the degree of Master of business administration (MBA) (Session 2011-2013)

Submitted To: School of Business Management (Shoolini University, Solan, H.P)

Submitted By: - Jai Prakash
M.B.A 3th year School of Business Management (Shoolini University, Solan, H.P)

Declaration
I jai Prakash that this study report title, “ Gold Loan” submitted in partial fullment requirement for the degree of Master of Business Administration (M.B.A) is the record of organizer project study conducts by me under the guidance Mr. Atul Khosla” the ‘Present Dean’ of School of Business management Shoolini University, Solan, Himachal Pradesh, India.

Place: - Solan, H.P

Dean Signature:-

Date: -

Candidate Signature:-

Certificate

This is to certify that the project report title, “Gold Loan” in the Gill road, Ludhiana city, Punjab, India is submitted to “IIFL” in the partial fulfillment of the Degree of M.B.A of session(2012). This research work carried on by Jai Prakash under university Roll No 11359 under my supervision. The assistance and help received during the course of investigation has been fully acknowledged. Major Advisor:Mr. Gagan Deep, Branch Manager, IIFL, Gill Road, Ludhiana, Punjab,

Ludhiana (Punjab) for giving opportunity to carry out the summer internship program in their organization the whole period spent with the organization has been immense learning experience about the gold loan Preparing a project of such kind is not an easy task in itself in and i am sincerely thankful to all those people who helped me lot in preparing and completing this project I am grateful to India info line finance lit who has given me this opportunity to carry out the project "to study regarding the IIFL gold loan in Ludhiana city" (Gill road) Last but not least my sincere thanks to my parents and friends who directly or indirectly helped me to bring this project into the final shape .Acknowledgment I would like to thanks to India info line finance ltd.

36 37-48 49-52 53-55 56-58 . Declaration 161 2 3 4 5 6 7 8 Acknowledgement Introduction History of GOLD loan Review of literature Research Methodology Objective Data Analysis &Interpretation Findings & Suggestions Bibliography APPENDIX PARTICULARS PAGE No. 1-15 16-30 31-33 34.Table of content CHAPTER No.

they are money market and capital market. The activities which include production. a set off institutional arrangements through which financial surpluses are mobilized from the unit generating surplus income and transferring them to the others in need of them. consumer finance companies. exchange and holding of financial assets instruments of different kinds by financial institutions. stock brokerages. insurance companies. distribution. are banks. banks and other intermediaries. Capital market The capital market is a market for financial investments that are direct or indirect claims to capital. credit card companies. Among these organizations. investment funds and some government sponsored enterprises? The financial markets have two major components. Securities market . of other market.CHAPTER 1 INTRODUCTION Every modern economy is based on a sound financial system a financial system. Money market The money market refers to the market where borrowers and lenders exchange short-term funds to solve their liquidity needs.

is a private or public. these are securities listed on a stock exchange as well as those only traded privately. currency speculators . The company has a network of 976 business locations (branches and sub . forex . Stock market A stock market. personalized service and cutting edge technology. governments. Listed in Bombay and national stock exchange with a net worth of INR 200 corer and a market cap of over INR 1970 corer. and includes trading between large banks.it is where banks and other official institutions facilitate the buying and selling of foreign currencies . Market for the trading of company stock and derivatives at an agreed price. It has two inter dependent and inseparable segments the new issues (primary) market and the stock (secondary) market.6 trillion us at the beginning of october2008 FOREX MARKET The foreign exchange market (currency. or equity market. The primary markets provide the channel of sale of new securities. The FX market is one of the largest and most liquid financial markets in the world. the secondary market enables those who hold securities to adjust their holdings in response to changes on their assessment of risk and return. and other institutions. INDIA INFOLINE India info line is one stop financial services shop. corporations. The size of the world stock market is estimated at about $36.It refers to the markets for those financial instruments claims obligations that are commonly and readily transferable by sale. most respected for quality if its advice. central banks. or FX) market is where currency trading takes place .

com Chairperson . Sat Pal Khattar. Sunil Lotke Finance . The Management Details Business Operation Background .A K Purwar. Off Western Express Highway.Goregaon (E) Mumbai-400063.Stock Broking India Info line (IIFL) is engaged in business of equities broking.brokers) spread across 365 cities and towns. providing a one stop solution for clients trading in the equities market first company in India to foray into the online distribution of mutual funds. About IIFL Company profile Date of Establishment Revenue Corporate Address 1995 156.it is registered with NSDL as well as CDSL as a depository participant. Sunil Kaul. Nirmal Jain. Nilesh Vikamsey. Maharashtra www. wealth advisory services and portfolio management services.75 ( USD in Millions ) 75 Nirlon Complex.R Venkataraman Directors .indiainfoline. Kranti Sinha.Nirmal Jain MD . Chandran Ratnaswami. Falguni Sanghvi. R Venkataraman. It has more than 8000000 customers .

com.Rs. Then in March 2001 the company again changed its name to India Info line.com .5paisa. New York and Singapore. 151 franchisees located in 346 cities.company was incorporated in October 1995 as Probity Research & Services and later in April 2000 the name was changed to India Infoline.com. 1223. It has panIndia presence through its distribution network of 607 branches. The company is part of India Info line Group.618546 Million ( year ending Mar 2011) Sunil Lotke Company Secretary Bankers Auditors Sharp & Tannan Associates India Info line (IIL) is engaged in business of equities broking. The company also has presence in Dubai. Then in March 2001 the company again changed its name to India Info line. The company was incorporated in October 1995 as Probity Research & Services and later in April 2000 the name was changed to India Infoline. 7998.Rs.com and www.indiainfoline.667211 Million ( year ending Mar 2011) Net Profit . IIL operates portals such as www. Financials Total Income . wealth advisory services and portfolio management services.

Wealth management. Investment Banking. on open architecture complete our product suite to help customers build a balanced portfolio. gives us a leading market share in both retail and institutional segments. Private Wealth Management services cater to over 2500 families who have trusted us with close to Rs 25. BSE: 532636) and its subsidiaries. 6. comprising the holding company. Insurance. . Our forte is Equity Capital Markets. Life Insurance.2bn) is backed by strong capital adequacy of approximately 20%.200 corers ($ 1. Loans. as do leading FIIs and MFs that invest billions. with lowest charge Nifty ETF. Credit & Finance focuses on secured mortgages and consumer loans. Pension and other Financial Products. where we have executed several marquee transactions. India Info line Ltd (NSE: INDIAINFO. Fixed deposits. Gold bonds and other small savings instruments. is one of India’s premier providers of financial services. Investment Banking services are for corporate looking to raise capital. Over a million retail customers rely on our research. Asset management. We have a presence in: Equities our core offering.000 corers ($ 5bn) of assets for advice. Our high quality loan book of over Rs. IIFL offers advice and execution platform for the entire range of financial services covering products ranging from Equities and derivatives. Commodities. Other products include Fixed Maturity Plans. IIFL Mutual Fund made an impressive beginning in FY12.The IIFL (India Info line) group.

The company is listed on both Exchanges and also trades in the derivatives segment. The income and net profit during FY2010-11 were Rs. 2. IIFL is near you physically: we are present in every nook and cranny of the country. which is one of India’s leading online destinations for personal finance. stock markets. .indiainfoline. IIFL’s Crisil and ICRA Rating for short term is top rated as CRISIL A1+ and ICRA (A1+) respectively.IIFL has received membership of the Colombo Stock Exchange becoming the first foreign broker to enter Sri Lanka. IIFL’s research is acknowledged by none other than Forbes as ‘Best of the Web’ and ‘…a must read for investors in Asia’.Large firms’ by Dun & Bradstreet.800 corers. 14. 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. For long term. India’ by Finance Asia and the ‘Most improved brokerage.com. IIFL has been awarded the ‘Best Broker. The Group has a consistent and uninterrupted track record of profits and dividends since its listing in 2005.7bn and Rs. IIFL owns and manages the website. India Info line was also adjudged as ‘Fastest Growing Equity Broking House .000 business locations across 500 cities in India.www. Thomson First Call and Internet Securities besides others where it is amongst one of the most read Indian brokers.1bn respectively. A forerunner in the field of equity research. India’ in the Asia Money polls. with over 3. Our research is available not just over the Internet but also on international wire services like Bloomberg. economy and business. IIFL is a listed company with a consolidated group net worth of about Rs 1.

entered life insurance distribution as a Corporate agent. Oct.You can reach us in a variety of ways. We became a public limited company on April 28.. online. 11 93797. to institutional Customers. banks.com mobilised capital from reputed private Equity investors. Singapore and Hong Kong. Dubai.must read for investors’.. All our offices are connected with the corporate office in Mumbai with cutting edge networking technology. London. 1956 With Registration No. analysis and research covering Indian businesses. 2000 -Commenced the distribution of personal financial products. The group caters to a customer base of about a million customers. launched Online equity trading. New York. Acknowledged by Forbes as ‘Best of the Web’ and ‘. 2000 and the name of the Company was changed to Probity Research and Services Limited. We commenced our operations as an Independent provider of information. Our physical presence in key global markets includes subsidiaries in Colombo.indiainfoline. Milestones 1995 -Incorporated as an equity research and consulting firm with a client Base that included leading FIIs. launched Archives. The name of the Company was changed to India Infoline. Mauritius. . financial markets and economy. over the phone and through our branches.com 1999 -Restructured the business model to embrace the internet. consulting firms and Corporate. 2004 -Acquired commodities broking license. launched Portfolio Management Service.

raised over USD 300mn In the group. The issue is slated to open on April 21 and close on April 27. 2008 . DGCX software -Acquired membership of DGCX. NCDEX. The company is coming out with public issue Of 1.India Info line fixes a price band between Rs 70 and Rs 80 for its Forthcoming public issue. -India Info line to buy 75-pc stake in Money tree 2006 -India Info line launches exclusive SMS Value Added Service -India Info line enters into strategic agreement with Saraswat Bank -India Info line to launch stock trading on cell phones -Indiainfoline to roll out MCX.2005 .18 corer shares with a face value of Rs 10 through the book Building route. Enam Financial Consultants Private Ltd would be the sole Book running lead manager to the issue while In time Spectrum Registry Ltd is the registrar to the issue. inducted an institutional Equities team. launched consumer finance business under the ‘Money line’ brand.6 times oversubscription -IIFL appoints R Mohan as VP -India Info line Ltd has informed that the Company has entered into a Advertising agreement with Times Group where in the Company and other Group companies would spend about Rupees Thirty Corers over the next 5 years in print as well as non print media of The Times Group. launched investment banking services 2007 -Launched a proprietary trading platform. formed a Singapore subsidiary. -India Info line public issue gets 6.Listed on the Indian stock markets .

set up India Info line Private Equity fund. 2008. received ‘Fastest growing Equity Broking House . Ms. as an independent director on the Board of the Company. . received Best broker. Company Secretary and Compliance Officer of the Company. ex-Chairman of the State Bank of India. 2008 Approved the appointment of Mr. . . 2009 -Received registration for a housing finance company from the National Housing Bank.India Info line Ltd has informed that the Board of Directors of the Company have vide circular resolution passed on March 10. A K Purwar.India’ award from Asia money.India Info line Ltd has informed that pursuant to the resignation Of Mr.The Company has splits its face value from Rs10/. ‘Most Improved Brokerage.India’ award from Finance Asia. Falguni Sanghvi has been appointed as the Company Secretary with effect from October 07.to Rs2/-. received the Insurance Broking license from IRDA.-Launched wealth management services under the ‘IIFL Wealth’ brand. received the venture capital license. Received in principle approval to sponsor a mutual fund.Large firms’ in India by Dun & Bradstreet 2010 -received in principal approval for membership of the Singapore stock exchange received membership of the Colombo stock exchange 2011 .launched IIFL mutual fund Pillars of the organization . Nimish Mehta.

India Infoline not only steered through the dotcom bust and one of the worst stock market downtrends but also grew from strength to strength Mr. Mr. He is a PGDM (Post Graduate Diploma in Management) from IIM (Indian Institute of Management) Ahmadabad. Nirmal Jain Chairman & managing darector. India Infoline Ltd. a Chartered Accountant and a rank-holder Cost Accountant. (later re-christened India Info line) in 1995. His work set new standards for equity research in India. Nirmal Jain is the founder and Chairman of India Info line Ltd. which was then the nation’s as well as the Company’s top priority. with the launch of www. Venkataraman Executive director . During his stint with Hindustan Lever. Ltd. He started his career in 1989 with Hindustan Lever Limited. Mr.Mr. including export and trading in agro-commodities.com in 1999. Jain was one of the first entrepreneurs in India to seize the internet opportunity. He contributed immensely towards the rapid and profitable growth of Hindustan Lever’s commodity export business. perhaps the first independent equity research Company in India.indiainfoline. the Indian arm of Unilever. he handled a variety of responsibilities. He founded Probity Research and Services Pvt. R. Under his leadership. His professional track record is equally outstanding.

. R Venkataraman. He joined the India Info line Board in July 1999.Tech (electronics and electrical communications engineering. consultancy. a world-wide organisation of professional accounting firms and business advisers. Mr. mergers and acquisitions. He is elected member of the Central Council of Institute of Chartered .India Infoline Ltd. including ICICI Securities Limited. India Infoline Ltd Mr. BZW and Taib Capital Corporation Limited. investigations. Mr. Chartered Accountants. ranked amongst the top 12 accounting groups in the world. is a B. Co-Promoter and Managing Director of India Info line Ltd. their investment banking joint venture with J P Morgan of US.is a practicing Chartered Accountant for 25 years and Senior Partner at M/s Khimji Kunverji & Co. a member firm of HLB International. IIT Kharagpur) and an MBA (IIM Bangalore). Nilesh Vikamsey Independent Director. among others. He was also the Assistant Vice President with G E Capital Services India Limited in their private equity division. Vikamsey headed the audit department till 1990 and thereafter also handled financial services. possessing a varied experience of more than 19 years in the financial services sector The board of director Mr. Nilesh Vikamsey – Board Member since February 2005 . valuations and due diligence. He previously held senior managerial positions in ICICI Limited.

ee of Bombay He is also a Vice Chairman of Financial Reporting Review Board Accounting Standard Board and Member of Accounting Standard Board and various other Standing and Non Standing Committees. Regular Contributor to WIRC Annual Referencer on “Bank Branch Audit”. Representative of the Institute of Chartered Accountants of India on the Committee for Improvement in Transparency. Mr. 2010–2013. the Apex decision making body of the second largest accounting body in the world. IPR Commit Chamber of Commerce and Industry (BCCI). He is on the ICAI study group member for the introduction of the Accounting Standard — 30 on financial instruments — recognition and management. BarKat Properties Private Limited and India Info line Investment Services Limited. Trunil Properties Private Limited. . Sub Group formed by ICAI for approaching the Government and Regulatory Authorities for Convergence with IFRS. Convener of the Study group Formed by ASB of ICAI to formulate comments on various Exposure Drafts. Discussion Papers and other matters pertaining to IFRS originating from IASB. HLB Offices and Services Private Limited. Corporate Members Committee of The Chamber of Tax Consultants (CTC). Member of Legal Affairs Committee of Bombay Chamber of Commerce and Industry(BCCI). member of Review. Member of Executive Committee & IFRS Implementation Committee of WIRC of Institute of Chartered Accountant of India (ICAI). Accounting and Auditing Committee of Bombay Chartered Accountant Society (BCAS) and also on its Core Group. Accountability and Governance(ITAG) of South Asian Federation of Accountants (SAFA). Reforms & Rationalisation Committee.Accountant of India (ICAI). Study/ Sub Group formed by ICAI for Considering Developments on Fair Value Accounting (AS 30) post Sub Prime crisis. Vikamsey is also a Director of Miloni Consultants Private Limited.

He retired from the permanent cadre of the Executive Director of LIC. K. He is working as Independent Director in leading companies in Telecom. Arun. served as the Deputy President of the Governing Council of Insurance Institute of India and as a member of the Governing Council of National Insurance Academy. Pune apart from various other such bodies. India Infoline Ltd. Kranti Sinha Independent Director. Purwar Independent Director. Mr. Power. Renewable .. investment manager to India Venture Trust – Fund I. India Infoline Ltd.Mr. Ltd. He served as the Director and Chief Executive of LIC Housing Finance Limited from August 1998 to December 2002 and concurrently as the Managing Director of LICHFL Care Homes (a wholly-owned subsidiary of LIC Housing Finance Limited). Mr. the healthcare and life sciences focussed private equity fund sponsored by the Piramal Group. He has also taken over as the Chairman of IL & FS Renewable Energy Limited in March 2008 and India Info line Investment Services Ltd in November 2009. Sinha is also on the Board of Directors of Hindustan Motors Limited and Cinemax (India) Limited. and Auto components. Textiles. Mr. Purwar is currently the Chairman of India Venture Advisors Pvt. Kranti Sinha — Board member since January 2005 — completed his masters from the Agra University and started his career as a Class I Officer with Life Insurance Corporation of India. Mr. Steel.

Mr. India Infoline Ltd. Sunil Kaul Independent Director. Bangalore and a bachelor’s degree in technology from the Indian Institute of Technology. He is an Advisor to Mizuho Securities in Japan and is also a member of Advisory Board for Institute of Indian Economic Studies (IIES). TC Bank. Sunil Kaul is a Managing Director for Carlyle’s Asia Buyout fund focused on investments in the financial services sector across Asia. Engineering Consultancy.Energy. Japan. Kaul has worked on several notable portfolio investments of Carlyle including HDFC Ltd. Purwar also worked as Chairman of Indian Bank Association during 2005 – 2006. Mr. India’s leading financial services group. “Outstanding Achiever of the year” Award from Indian Banks’ Association (2004). the largest bank in the country from November ‘02 to May ’06 and held several important and critical positions like Managing Director of State Bank of Patiala. Bombay. and Tokyo. Mr. Purwar was the Chairman of State Bank of India. He is based in Singapore. Since joining Carlyle. Sunil Kaul earned his post graduate degree in management from the Indian Institute of Management. Purwar has received the “CEO of the year” Award from the Institute for Technology & Management (2004). a leading mid-sized bank in Taiwan and . Waseda University. “Finance Man of the Year” Award by the Bombay Management Association in 2006. Mr. Chief Executive Officer of the Tokyo branch covering almost the entire range of commercial banking operations in his illustrious career at the bank from 1968 to 2006. Financial Services and Healthcare Services. Mr.

Netherlands and Singapore. He is also a member of the Asia Pacific Infrastructure Partnership. Transaction Services Head for City Japan and Global Cash Business Management Head for ABN Amro. one of the largest provider of offshore company incorporation and trust services in Asia and India Info line Limited Mr. He has also held senior positions in Business Development for City’s Global Transaction Services based in New York. Mr. . covering the banks corporate and retail banking operations. based out of Holland. Kaul has over 20 years’ experience in corporate and consumer banking of which more than 10 have been in Asia. He concurrently served as the chairman of City’s credit card and consumer finance companies in Japan. He has lived and worked in India. In his earlier roles. the United States. Kaul served as the Head of Retail Banking for City in Asia Pacific. Japan. He was also a member of City’s Global Management Committee and Global Consumer Planning Group. Prior to joining Carlyle. Mr. Kaul served as the president of Citibank Japan. Kaul serves as a director on the board of TC Bank and a member of its Risk and Executive Committees. Mr.Caribbean Investment Holdings.

Until a decade back. It has long been a values commodity. and dentistry. Some countries hallmark gold with a three digit number that indicates the parts per thousand of gold.Chapter 2 History of GOLD loan Gold is a brilliant yellow precious metal that is resistant to air and water corrosion. Compared with the rest of the world in India the gold loan market is big business. electronics. a karat is the unit that measures the purity of gold jewellery or else it is hallmarked with a three digit number that indicates the parts per thousand of gold. and had been in use for centuries in the form of jewellery. it wasn’t until recently that consumers leveraged it effectively to meet their liquidity needs. The alloyed gold comes in many colours and may not be bright yellow all the time. usually copper and silver to make it less expensive and harder. That’s why it is expensive and it is alloyed with other metals. also for other medical purposes. bullions. It is a very soft and pure metal. particularly in India where it is considered auspicious. coins. Lenders provide loans by securing gold assets as collateral. However this scenario changed with the entrance of organized sector players such as banks and non banking finance companies (NBFCs) which now command more than 25% of the market. most of the lending was in the unorganized sector through pawnbrokers and money lenders. Though gold is a highly liquid asset. Gold is the most malleable and ductile metal found on earth. The organized .

NBFCs have been a major driving force behind this growth given their extensive network. The demand for gold has followed a regional trend with southern India accounting for 40% of annual demand. banks have improved their gold loan product features and services. Secondly. BACKGROUND: GOLD AND THE INDIAN SOCIETY Gold has traditionally been among the most liquid asset and is an accepted universal currency. Faster turnaround time. Though gold price have increased 19% CAGR from 2002 to 2010. The eligibility criteria required to apply for gold lone in India includes three factors. especially in India were it is considered auspicious. Of late. a fact exemplified by a 30% increases the value of gold over the past year India is one of the largest market of gold accounting for approximately 10% of the total world gold stock as of 2010. the person has to be above 18 years of age.gold loan market has grown at 40% CAGR form 2002 to 2010. it has traditionally been consumed by individuals in the form of jewellery. followed by the west (25%). north (20-25%) and east (10-15%). Looking for Gold Loan Market . the person applying or a gold loan in india should have a ID & address proof and last but not the least the applicant should be working on a regular salary basis .32000 billion). means there should be a constant flow of income. Rural India accounts for 65% of this gold stock.Coupled with comparatively lower interest rates charges. Firs-tly. gold stock in India has grown at 22% CAGR During the same period to 18000 tons (Rs. Gold is presumed to be a safe haven in times of economic uncertainty. higher loan to value ratios and the ability to serve non-bankable customers. bank stand to gain market share at the expanses of NBFCs in the near future.

their operating history has evolved over a period of 72 since M George muthoot (the father of our promoter) founder a gold loan business in 1939 under the heritage of a treading business established by his father. May the dream be to start their own business or to buy their own home: muthoot finance has helped almost every Indians dream come true. (Source: cognizant 20-20 insight jan. since our formation. The organized sector has grown at a rapid paces of 40% CAGR form the 2002 to 2010 and is expected to grow by 33% to41% CAGR in 2011 And in doing so these companies are challenges the dominance of the large unorganised sector within the organized sector. banks _ public/private/cooperatives and NBFCs. trusted by over 76000 customer every day muthoot finance gold loan has services and products that fit the need of any customers . NBFCs have grown at a repaid rate from 18. we have broadened the scale and geographic scope of their retail leading operation so . ninan mathai muthoot in 1987.2% in FY10. comprising local pawnbroker and money leader has traditionally dominated the gold loan market for money decades and still commands nearly 75% of the market the organized sector led by NBFCs is catching up fast. While the unorganised sector.2012) Muthoot finance With a tagline loan in just 5 minutes muthoot fiancés is a India’s largest gold loan company & is the fast choice of Indian who want to make their dream a reality.4% in FY to 32. making it the quickest .most convenient and safest way to take gold loan Headquartered in the southern Indian state of Kerala.Major Players The Key Players in the Indian gold loan market include the unorganized sector.

Primarily engaged in providing loans against household used jewellery pledged by its customer’s. Padmanabhan many decades ago currently managed by his son Mr. is a finance company that caters to the financial needs of retail and institutional customers. registered as a deposit taking NBFC is the flagship company of manappuram group Headquartered in the state of Kerala in southern India is the largest listed gold loan company in India. MUTHOT FINCORP Muthoot fincorp limited. of their total income. 2011 and in the period ended September 30. 2011 revenue from their gold loan business constituted 95. P. V. 2009.01% respectively .75% and 99. Amongst the safest form of asset lending.that. the parent group is one of India’s largest integrated financial services providers with a 25+ year operating history. executive chairman of manappuram general finance & ltd (“manappuram” or MAGFIL) manappuram. Nandakumar. KARVY covers the entire spectrum of financial services providers with a stock . as of march 31. Manappuram Manappuram group was founded by late Mr. 12.25 cores and a net owned fund of Rs 824.00 corers as on 31. C. V. 2010.71% 98. They are registered with the reserve bank of India as a systemically important non deposit taking non banking finance company (NBFC) with a paid up capital of Rs 181.97% 96. 2008. the flagship company of the Muthoot pappachan group (MGP). KARVY FINANCE KARVY.08% 98. 2011 Muthoot fincorp limited has wide network of over 2200 branches (as on 31/3/2012) and expanding more. with both physical custody and beneficial ownership with the lender.

is one of India’s premier providers of financial services.indiainfoline. Gold bonds and other small savings instruments. IIFL offers advice and execution platform for the entire range of financial services covering products ranging from Equities and derivatives. Commodities broking / finance registry services depository services merchant banking & corporate finance IPO distribution investment banking realty services insurance broking / distribution and distribution of financial products like mutual funds bonds personal finance advisory services BPO / technology services wealth management and loans KARVY has pan India personal with over 575 offices in 375 locations across India and overseas at Dubai and New York and has over 9000 highly qualified staff. Wealth management.broking. Keeping in line with KARVY credo to be a leading and preferred financial services provider the focus of KARVY finance will be to provide the complete spectrum of financial services products to their customers and build a strong nationwide distribution footprint to emerges as the leader in capital markets and retail finance in India Their niche lies in the fulfilment of customers financial needs at all stages of their life by making possible simple and flexible financial solutions tailor made to suit customers requirements INDIA INFOLINE The IIFL (India Info line) group. IIFL has received membership of the Colombo Stock Exchange becoming the first foreign broker to enter Sri Lanka. IIFL owns and manages the website. which is one of India’s . comprising the holding company. Loans. India Infoline Ltd (NSE: INDIAINFO. Investment Banking. Fixed deposits. Insurance. Commodities.com. BSE: 532636) and its subsidiaries. Asset management. www.

All our offices are connected with the corporate office in Mumbai with cutting edge networking technology. IIFL’s Crisil and ICRA Rating for short term is top rated as CRISIL A1+ and ICRA (A1+) respectively. The group caters to a customer base of about a million . India’ by Finance Asia and the ‘Most improved brokerage. Our research is available not just over the Internet but also on international wire services like Bloomberg. IIFL has been awarded the ‘Best Broker. economy and business.000 business locations spread more than 500 cities in India. 2. You can reach us in a variety of ways. 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.1 billion respectively. A forerunner in the field of equity research. India Info line was also adjudged as ‘Fastest Growing Equity Broking House . online. Thomson First Call and Internet Securities besides others where it is amongst one of the most read Indian brokers. India’ in theAsiaMoney polls. IIFL’s research is acknowledged by none other than Forbes as ‘Best of the Web’ and ‘…a must read for investors in Asia’. The Group has a consistent and uninterrupted track record of profits and dividends since its listing in 2005. The company is listed on both Exchanges and also trades in the derivatives segment. IIFL network over 3.Large firms’ by Dun & Bradstreet.leading online destinations for personal finance.7 billion and Rs. IIFL is a listed company with a consolidated group net worth of about Rs 1.800 crores. 14. stock markets. over the phone and through our branches. The income and net profit during FY2010-11 were Rs.

etc.40 to 26. handling fee. Dubai. New York.40% based on loan amount No lock in period PERSONAL LOAN Min. Mauritius. Our physical presence in key global markets includes subsidiaries in Colombo. Amount Rs 10000/-max up to Rs 1000000/By A/c payee cheque Ranges between 28 to32% 2 3 Mode Rate of interest 4 5 Lock in period Flexibility 6 Documentation Ranges between 6 to 12 month Totally flexible – Very less EMIs fixed at pre.N.closure and part the beginning of the closure loan. Difference between the GOLD LOAN and personal loan S. Address proof ITR form 16 Photo ID ID proof & residence PDC proof Driver licence Salary slip & photograph Previous track record. London. Only to professionals 7 Pre-payment 8 Hidden charges 9 Customer . BASIS 1 Loan amount GOLD LOAN No limit Rs 5000/onward Cash loan 11. Singapore and Hong Kong. service charges .customers. Possible without penalty No hidden charges even CWT is borne by the company Loan is provided to Usually not possible before 6 month after that with penalty. Quite many processing fee.

Penalties No penalties on part Heavy penalty on part and fore closure closure. Minimum salary No such criteria Monthly NET salary criteria be 1.5 items the EMI. Revolving credit Available as Loan has the fixed principle gets tenure and payment revolved on of both interest and payment of interest principal is to be every 3 months made. Procedure of creating new loan account in gold lone software . Interest on part Interest charges only On the entire loan payment on the outstanding amount as fixed in the amount beginning. Verification No field verification Field verification is carried out. Service charges No service charges 2 to 8% loan amount payable the service charges.profile eligibility all customer 10 11 12 13 14 15 16 17 18 or salaried class people in employment with good companies. Secrecy Absolute secrecy is No secrecy maintained maintained. Personalize Prompt and DMAs and DSAs attention personalized handle the customers attention is given to and not get personal the each and every attraction form the customer bank. Time duration 10 – 15 days 15 minutes.

Cash disbursal: first press ‘+’ then enter the denomination of cash to be disbursed to the customer then press disburse cash finally we press ‘Edit ‘and ‘Save’. . per gram weight after filling these information press ‘save’ this process should be repeated for each and every item by valuer I Valuer II: now the above noted process should be repeated by valuer II also when we enter the all information on appraisal form finally press the ‘Edit’ and then ‘Save’.  We have to fill customer details with three stages  Client details  Address details  IP photograph (we browse the photo of customer and gold items one by one)  After fill all these details press ‘save’ GOLD LOAN number will be generated When the gold loan number will generated please ensure before doing further process deduces must be done  If there is any deviation (in terms of ROI. Gross weight . Open the shortcut of gold loan.  Put your user ID and password. per gram rate and valuation %age)so. Net weight.  Before doing anything we have to press ‘+’ for further process and generate gold loan number. it should enter in to the client details as the first stage  Now again we have to fill the details a  s under  Appraisal form  Cash disbursal  Bank details (Appraisal form : valuer I Before start anything we have to press on ‘+’ then enter all the information like item.  Click on truncation after that go new lone express entry.

 Cash disbursal receipt(page 6)  Total 11 signature are obtaining form the customer on the above documents we should give three documents to the customer.D proof  Address proof  Pan card (in the case of above loan is 50000)  TVR from  CPV report Various skims of India info line gold loan company skims Fast trac k Fast Loan Loan track lksh lksh 1 mi III mi IV Read y mon ey Read y mon ey I Read Valu Jaldi y e loan mon loan ey II .Bank details: there is no need to fill bank details in the case loan is less than 10 laces.  Application form (page 1)  DPN(page 1)  Appraisal form (page 2)  Declaration form (page 3)  Borrower copy (page 4)-given to the customer  Token card (page 5) – original should given to the customer and take Xerox for office record.  Borrower copy  Token card  Cash receipt  Now we should generate/ complete the following document and upload the same along with the five documents for sanctioning of the loan.  Now we should give the print command and get the hard copy for customers signature the print will generated the following document on six pages.  I. on the other hand if loan above 10 laces then press add new then enter the details then press ‘Edit’ and ‘save’.

16 % % month ly Quarte rly 2. nose pin R.00 % % month ly Month ly Monthl monthl y y These are the various type of gold testing in India info line  Acid test Acids have +ve charge particle gold rubbing with stone and throw them acids if gold colour change them the gold is not original if colour is not change gold is original  Flexibility test Gold move in all direction gold is very flexible to move other element can break when move but gold can’t be break  Sound test We check the sound of gold if gold bangle and other element bangle both are hit any particle we hear the .50 % Monthl y 1.90 % 1.00 % 1.67 % monthl y 1. o. i.34 1. Interes t pay period 220 0 2200 2010 2070 1950 1950 1820 157 0 144 0 213 0 2130 1950 2010 1880 1880 1750 151 0 138 0 210 0 2100 1910 1980 1850 1850 1700 147 0 135 0 2. neckla ce Other Tikica.Solid Ring bangle s Chain Chain.67 % quarter ly 1.16 2.

Colour test Gold have yellow colour but if gold is duplicate its colour is different from yellow Smell test Gold have specific smell as compared to other element if we have test the gold smell there are the specific machine and cheek the gold smell Salt test When gold mixed in salt if colour change gold is not original if colour not change gold is original Use ability test Branded new gold are very difficult to check the originality of gold but already used gold are easily to check the gold originality Weight test If we see the 50 gram of gold and 50 gram of sugar then size of gold is small as compare to sugar. Rubbing test When gold rubbing with stone if gold is original it appears yellow colour if gold is not original it having different colour. GLOBAL SCENARIO Loan against gold are traditionally considered taboo in households. Gold . Even when gold is pledged it is still done as the last resort.      sound if gold is original it give specific sound if gold is not original it give same sound as they other bangle.

with minimal documentation .  Quick loan approvals and disbursals. NBFCs have grown rapidly over the last few years as evidenced by their increase in market share.jewellery at home is considered on par with goddess lakshmi and hence hedging gold for a loan is considered inappropriate. With gold spiralling upwards borrowers are able to get decent valuation for their gold and the process of getting such a secured loan is also largely hassle free the southern Indian markets have been particularly lucrative for the gold loan business -85%-90% of the gold loan market is in the states of Andhra Pradesh. Why NBFCs are growing By virtue of their business model. has gradually seen the entry and growth of NBFCs and banks a clear indication of the viability of gold loans as an important loan product. The gold loans market has recently seen a lot of action firm both the consumers and the industry. The key differentiators for the NBFCs as compared to the banks and cooperatives are. Gold loan market this perception towards gold loan has gradually undergone a change and individuals have started seeing the value of loan against gold as against availing a personal loan the gold loan market that was highly fragmented and dominated by local jewellers. Tamil nadu and Kerala. According to an estimation of the ICRA management consulting services (IMACS) the organized gold loan market in India stands at $8 billion and is growing at a compound annual growth rate (CAGER) of 40% since 2002 there is still ample potential in this segment and with more banks /NBFCs coming into this business. there could be considerable growth in terms of volume.

NBFCs had been traditionally disbursing gold loans through funds received from banks under priority lending for the agricultural sector.) All lenders are required to adhere to the KYC norms. Currently NBFCs gold loan are regulated by RBI. Regulatory environment While there are no means of controlling the unorganized sector the organized sector of banks and NBFCs come under the purview of the reserve banks of India (RBI) which has norms to regulate the gold loan market. NBFCs allegedly have not strictly followed this regulation and hence have been under the RBI s scanner for some time now. The resulting higher interest rate for funds is expected to promote better lending practices by NBFCs to creditworthy borrowers. Flexibility provision of very small and very large loan amounts. Better operating cost structure visa-a-vies banks. some state governments require compliance with relevant state money lending statutes . Greater accessibility due to better penetration. risks due to a sharp decline in the prices of gold for a lender with a large exposure to gold assets pledged against the loans. The loans under this category enjoy an interest rate discount of approximately 200 bps over the normal interest rates charged by banks. There have been recent .e. However.    Multitude of loan options with higher LTVs. With the continued rapid growth of the gold loan market in India RBI has started examining lenders especially NBFCs for possible concentration risks (i. But to reduce the risk in the system the RBI ruled in February 2011 that bank credit to NBFCs for lending against gold jewellery will not be treated as exposure to the agricultural sector.if the state governments succeed in enforcing this regulation the profit margin of NBFCs would be further squeezed.

Impact analysis: RBI’S gold loan regulation for NBFCs In its latest move. this has caught the attention of regulators any regulatory move in this regard would impact the profit margin of NBFCs. Earlier NBFCs used to provide up to 80% loan against the gold now it would be reduced to mere 60% of the gold value. Gold loans from banks would now become more attractive than NBFCs until they are allowed to lend more on the value of pledged gold the cost of funding for NBFCs would go up due to the RBIs restriction to allow the NBFCs to finance its gold loan from the banks as an exposure to agricultural loan. RBI has come up with a norm for NBFCs that does not allow them to offer a loan above 60% of the value of gold. This would mean that ornaments of the same value are expected to result in a lesser loan amount and that to at a slightly higher cost. Why it is a setback for NBFCs? RBI’s guideline is a setback for NBFCs because the new rules require greater capital adequacy for the financing companies and the thresh hold for the value of loan against gold is proposed to be at a lower value. Check out other aspects where NBFCs could be adversely affected.complaints regarding high interest rates and penalty rates charged by NBFCs. What’s in favour of NBFCs? Though this regulation would it hard on the revenue as well as bottom-line of the NBFCs there still some positive assistive to this move: . Hence the current profit margin would come down significantly. NBFCs might have to reduce the interest rate to sustain hold in the gold loan market.

e. . NBFCs have a 32% share of the total gold loan market. i. .NBFCs would continue to enjoy the nice segment advantage due to its deep presence in the gold loan market at present. NBFCs can raise funds through market borrowings. so the size of market is set to grow bigger in coming days. Commercial papers to lower the cost of fund. The advantage o f trouble free and quick loan processing by NBFCs would give them the edge over the banks. There are many untapped areas where NBFCs could have a better reach than the banks. The gold loan would still be cheaper than the personal loan.

leading gold finance companies have decided to form a self.1% respectively.Chapter 3 LITERATURE REVIEW The research project is to study “of IIFL gold loan in Ludhiana city” kejriwalarun (2012) in his article “riches –to rags story of the gold loan industry” in “business standard” remarked that “the reason people go to GLCS is the next -to-nil tome they take in disbursing loans. The share price of Muthoot finance and Manappuram finance.regulatory organization (SRO) which will frame fair business practices code for the industry John navin (2012) in his article “and the RBI on Leander” in “business world” remarked that .35% and 6. making customers a happy lot. However. Typically. fall 11. GLCS lend up to 80% of the value of gold. saying they will strengthen the industry. but analysts pointed out that the clampdown will erode the margins of these companies and curtail growth Jayakumar john (2011) in his article “lure of the yellow metal” in “business world” remarked the gold loan industry has recorded growth of 35% over the past three year and explains how various gold loan companies rises and reach the top positions” . on 22 March. Bureau (2012) in his article “gold loan firms setting up SRO as RBI tightens screws” in “economic times” concluded that “under the lens of the reserves bank .the stock market did not follow the centre banks restrictions on the lone size of gold NBFCs to 60% of the loan to value (LTV) view. the reserve bank of INDIA (RBI) reduced the loan-to-value for GLCS to 60% of the gold content. Bureau (2012) in his article “RBI move on gold loan will trim companies margins” in “economic times” remarked the gold loan financing companies on Thursday welcomes the latest measures by the reserve bank. the largest and second player. last Month. a day after the RBI announcement.

Page 55-58.C. collection of data through questionnaire. Dr S. collection secondary data” are referred before the data collocation form from this book” Objectives  In this project. chapter 4. VK publication Malhorta Naresh k and Dash satybhushan. the primary objective is to the consumer awareness regarding gold loan  To find out the competitive positions of India info line finance limited  Increases the relationship between India info line & other company consumer  To find out the most preferred channel. while muthoot finance enjoys a crisil AA rating.Bureau (2011) in his article “should you invest in NCD of gold loan Finances Company” in “economic times” concluded that with that we come to another important aspect of debt investing risk.A. .B. PFC enjoy AAA rating.R. a clear indication of the viability of gold loans as an important loan product..” “Jain T. New Delhi.rating” Regoanil (2010) in his article “gold loan: making gold work for you” in business world remarked that “this perception toward gold loan has gradually undergone a change and individuals have started seeing the value of loan against gold as against availing a personal loan. daryaganj.” and Aggarwal.. statistics for M.R. PUS bonds like those of NHAI. “Kothari C. Chapter “Method of data collocation. “marketing research” (6th edition) Pearson publication. Manappuram finance has a CARE AA. 2nd edition.” research methodology methods & techniques 2nd edition wishwa prakashan. The gold loan market that was highly fragmented and dominated by local jewellers has gradually seen the entry and growth of NBFCs and bank.

 To find out what should do to boost India info line finance limited.

Limitation of the study
 Time limit is the major constraint  As the manager are busy in their duty schedule it is not possible for us to spend more time in interaction and discussion with them  some difficulty getting the people answer the survey questions because of their workload and the responsibility they have busy his work  As per company rules many information was not disclosed  Finding &conclusions are based on superficial knowledge  The response given by the respondents may not be 100% accurate and may be biased

CHAPTER 4
RESEARCH METHOEOLOGY
Research methodology is a way to systematically solve the problem. It may be understood has a science of studying how research is done scientifically. This of research methodology is that it helps in identifying the problem, collecting, analyzing the required information data and providing an alternative solution to the problem .It also helps in collecting the vital information that is required by the top management to assist them for the better decision making both day to day decision and critical ones. Report is based on primary as well secondary data, however primary data collection was given more importance since it is overhearing Meaning of research Research is defined as “a scientific & systematic search for pertinent information on a specific topic” research is an art of scientific investigation. Research is a systemized effort to gain new knowledge. It is a careful inquiry especially through search for new facts in any branch of knowledge. the research for knowledge through objective and systematic method of solution to a problem is a research Research design Research design is the conceptual structure within. Which research is conducted; it constitutes the blueprint for the collection, measurement and analysis of data. As search the design includes an outline of what the researcher will do from writing hypothesis and its operational implication to the final analysis of data Research design can be three types  Exploratory research design  Descriptive research design  Experimental research design

The present study is descriptive in nature, as it seeks to discover ideas and insight to bring out new relationship. For fulfilling the predefined objectives the descriptive research was conducted. An Exhaustive market survey of various costumers enough to provide opportunity for considering different aspects of problem under study The research objectives, questionnaire was designed.

Data collocation
Two type of data collection primary and secondary

Primary data
Primary data refer to the first hand fresh data collected from the field it was collected through the questionnaire method. Questionnaire will includes MCQ, ranking, checklist, and rating type of equation

Secondary data
Secondary data refer to the already published information. Secondary data was collected from various sources magazines, journals, newspaper, internet, government, and industry Research is based on primary Secondary data. Research has been done by primary data collection, and primary data has been collected by interacting with various people in Ludhiana city. The secondary data has been collected through various journals and websites.

Out of total 150 questionnaires distributed only 100 questionnaires were received back. The questionnaires focused on the gold loan, how you know

The data has been analyzed by using mathematical/Statistical tool. In convincing sampling the samples are being selected on the basis of ease or convenience. Other 14% people did not have know about the gold loan.  Sample size:. Here I have my sample unit includes the people of Ludhiana gill road market. why to deal gold loan and the level of satisfaction of the customer. The respondents who are easily approachable will be selected in this project. by formal and informal talks and through filling up the questionnaire prepared. It was also collected through personal visits to persons. benefit of gold loan. Out of which only 86% people had know about the gold loan.  Sampling unit:-a decision has to take concerning sampling unit before selecting sample. . Data sampling The target audient for this research includes Ludhiana city people.The sample size of my project is limited to 100 people only.about the gold loan.  Sampling technique:-the selection of respondents was done on the basis of convenience sampling.

from the above graph it is clear that 86% of the population are aware about the gold loan and 14% of the population are not Interpretation: . .from the above graph we can see that majority are aware about the gold loan and few are not aware about the gold loan.Chapter 5 DATA INTERPRETATION AND ANALYSIS 1 are you aware about gold loan? option yes response 86 % 86% No 14 14% awereness response 14% yes no 86% Analysis: .

13% are because of hoardings. 5% are newspaper. 22% are due to direct marketing. .2 how do you come to know about gold loan? option TV Advertiseme nt 48 48 Wall Direct painting marketin s g 13 13 22 22 Newspape banner Friend r s s& relativ e 5 4 8 5 4 8 respons e % reasons of awereness option Direct marketing Friends & relatives 5% 4% 8% 0% 48% 22% 13% TV Advertisement Newspaper Wall paintings banners Analysis:-it is clear from the table that 48% of the aware only because of tv advertisement. Interpretation:-from the above graph it is clear that majority of the population are aware only because of TV advertisement. 4% are banners and 8% are due to friends and family. some are because of direct marketing and very few are because of banners and newspapers.

3 have you ever deal in gold loan? Options Responses % yes 60 60 No 40 40 option 0% yes no 40% 60% Analysis: .from the above graph we can see that most of the people are dealing in gold loan and very few are not dealing with gold loan. . Interpretation: .from the above graph we can see that 60% of the population have deal and 40%have not deal in gold.

Interpretation:.And very small are not in favour .from the above graph it is clear that 73% of people are in a favour of dealing with a gold loan in future and 27% are not in a favour.4 Do you want to deal in gold loan in future? Options Responses % yes 73 73 No 27 27 future dealing yes no 27% 73% Analysis:.from the above graph it is clear that most of the population are in favour of future dealing with IIFL .

future group Interpretation:. karvy. Muthoot fincorp.from the above graph it is clear that 29%of the population dealing with muthoot finance.from the above graph it is clear that most of the customer are dealing with muthoot finance and IIFL. And very small are dealing with Mannapuram. and very few are dealing with future group.5:-with which company you deal or you wish to deal? Options Muthoot finance Responses 29 % 29 Muthoot Mannapuram Karvy Future IIFL Other fincrop finance group 11 12 8 9 26 5 11 12 8 9 26 5 company Muthoot finance Mannapuram Future group other 5% 26% 29% 12% 9% 8% 11% Muthoot fincrop Karvy finance IIFL Analysis:. . 26%are dealing with IIFL or wishing to deal with IIFL and few are dealing with karvy. muthoot fincorp.

27.7%are because of max per gram rate.from the above graph it is clear that most of the population are preferring company only because of rate of interest.7 Flexibility customer dealing 69 27.3 Maximum per gram rate 66 26.8 preferances rate of interest Flexibility Any other 1% 28% 16% 28% 27% Maximum per gram rate customer dealing Analysis:-from the above graph it is clear that 28.9%are because of good customer dealing because few are flexibility16. and vary few are flexibility and other .2%and vary few are other Interpretation:.6 which of the following is the most preferable thing at the time of availing gold loan Options rate of interest 70 28.3%of the population are preferring only because of rate of interest .26.2 2 0.9 Any other Responses % 40 16. some are preferring because of max per gram rate and good customer dealing.

from the above graph it is clear that 39% of the population are not satisfied with their current deal and 61% of the population are satisfied Interpretation: . .7 are you satisfied with the current deal? Options Responses % yes 39 39 No 61 61 current deal yes no 39% 61% Analysis: .from the above graph it is clear that most of the population are not satisfied with their current deal they want to change their current deal and some are satisfied with their current deal.

Some are due to good customer dealing.8 which of the following are Main reason of satisfaction options responses % rate of interest 48 48 Maximum rate 37 37 Flexibility 9 9 customer dealing 6 6 satisfaction factor rate of interest Flexibility Maximum rate customer dealing 9% 6% 48% 37% Analysis:-from the above graph it is clear that 48%f the population are satisfied only because of rate of interest 37%are because of max per gram rate6% are because of good customer dealing 9%because few are flexibility and vary few are other Interpretation: . and very few are with others. and flexibility. .from the above graph it is clear that most of the person are satisfied with rate of interest and max per gram rate.

. Interpretation: .from the above graph it is clear that most of the population want to change their company and very few want to remain with the same company.from the above graph it is clear that 75% of the population want to change their company and 25%of the population do not want to change.9 do you want to change your loan by any other company? Options Responses % yes 75 75 No 25 25 company change no 25% yes 75% Analysis: .

from the above graph we can see most of the population are aware about the IIFL but still the rates of those people are also high who are not aware about the IIFL.from the above graph it is clear that 56% of the population are aware about the IIFL and 44%of the population are not aware about the IIFL.10 are you aware about IIFL? Options Responses % yes 56 56 No 44 44 IIFL awareness yes no 44% 56% Analysis: . Interpretation: . .

from the above graph it is clear that60% of the population have not visited any branch of IIFL gold loan company and 40% have visited. Interpretation:.from the above graph we can see that majority of the population have not visited any branch of IIFL gold loan company and few have visited. .11 have you ever visit in any branch of IIFL? Options Responses % yes 40 40 No 60 60 branch visit yes no 40% 60% Analysis: .

Interpretation: . .12 Do you wish to deal with IIFL? Options Responses % yes 77 77 No 23 23 IIFL dealing 23% yes 77% no Analysis: .from the above graph it is clear that people want to go the IIFL because 77% of the population said yes for dealing and very few said no.from the above graph it is clear that most of the population want to deal with IIFL for the purpose of gold loan and very few are not interested.

.  It is clear from analysis that most of population are aware about IIFL in term of gold loan. the second most Investors were Govt.  They are treating the customer as their family member and guiding them properly.  There are no charges for entry and exit loans.  Most of the customers prefer IIFL gold loan because of good per gram rates. aspirations.  IIFL are providing special schemes which are helpful to attract customer. needs. employees and the least were associated with Agriculture. concerns and resources are unique and this is reflected in every move they do for the sake of individual customer.CHAPTER6 RESULTS & FINDINGS  It is also clear most of people prefer IIFL and Muthoot to take the gold loan as compare to other companies.  India info line finances ltd understand the dreams.  In Occupation group most of the Investors were Private employees.

 The company should create the awareness about the gold loan among the general public.  The company should adopt some strategies to increase the business through existing customers.  The company can conduct seminars and workshops so that they can provide information to the people and give answers to queries. They should visit the jewellers.SUGGESTION  The company has provided proper training to new employees so that they can attract customers easily.  The company should increases the advertisement regarding the gold loan in national TV.  IIFL should use traditional ways of promotion in rural location. Latest communication are lacking in Ludhiana city . Businessman and other work places so that they can guide them.

CONCLUSION Most of the companies which are offering gold loan in India are still at growth stage and hence there are ample of opportunities for all the companies which are offering gold loan to tap customer. . To achieve sustainable growth in this sector India info line finance limited needs to endeavour with maximum efforts the company can achieve several milestones in future while maintaining the existing customer relationship. The perception of customer is yet to be changed because still they don’t feel comfortable in taking gold loan because of traditional approach hence there is a lot of education has to be provided to make people aware of gold loan.

jhon (2011): in this article “lure of the yellow metal” in in “business world” Bureau (2012): article “should you invest in NCDS of the gold loan finance company” in “economic time” Ragoanil (2012) in his article “gold loan: making gold work for you” in “business world” Websites www.business-standard.moneycontrol.crindia.R.com http://www.com/india/news/riches-to-rags-storythegold-loan-industary/473351 http://www. edition 7th pg 5359 Kejriwalarun (2012): article “riches to rags story of the gold loan industry in “business standard” Bureau (2012): article “gold loan firms setting up SRO as RBI tighten screws” in “economic time” johnnevin (2012): article “and the RBI on lenders” in “business world” Jaykumar.com/commodity/gold.html http://www. Ltd.com/master/your money /stocks-newsconsumption.com www.indiainfoline. 2010 Pearson publication edition 2nd pg 40-48 Luck davidet al marketing research.BIBLIOGRAPHY Kothari C.5paisa. new age international pvt.php?cat= gold& at0no:=703262 . Research methodology methods and techniques 2004. 2004 prentice hall India. New Delhi edition 2nd pg 56-57 Malhotra Naresh and dash Satyabhushan marketing research.

com/india/news/rbi-norms-to-moderate gold-loan-companies%5cgrowth-crisil/161230/on .php?cat= gold& at0no:=694868 http://www.com/master/your money /stocks-newsconsumption.http://www.business-standard.moneycontrol.

. No Q.... TV Advertisement B..4 Do you want to deal in gold loan in future? (If yes which company) A.5 with which company you deal or you wish to deal? A...... yes B........ Muthoot fincrop E.................... Direct marketing D......... OCCUPTION...... AGE..............APPENDIX Questionnaire General Information NAME.. ADDRESS. CONTACT NO.... EMAIL. Muthoot finance D...... Karvy finance G... Wall paintings/hoardings C.1are you aware about gold loan? A yes B No Q.. Future group C.2 how do you come to know about gold loan? A...... Q. No Q.................... yes B.... IIFL . Mannapuram F. Friends & relatives Q.. other (specify) B................. banners F..3 have you ever deal in gold loan? A........ Newspaper E....................

11 have you ever visit in any branch of IIFL? A..9 do you want to change your loan by any other company? A...8 which of the following are main reason of satisfaction A.... No Q......... customer dealing B. No (Thanks for your kind cooperation) Signature..... No Q.... No Q...... Date.. rate of interest D... yes B.. Maximum per gram rate E.. .. customer dealing B... Flexibility E... rate of interest D..........12 Do you wish to deal with IIFL? A.. Maximum rate C. yes B.. Any other (specify) Q.. Flexibility Q. No Q.Q...... yes B.. yes B. Any other (specify) C....7 are you satisfied with the current deal? A.10 are you aware about IIFL? A.6 which of the following is the most preferable thing at the time of availing gold loan? A.. yes B..

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