+

A REPORT
ON

MARKETING
AT
MUTHOOT FINANCE LIMITED

By:
MANISHA
B.COM V SEMESTER

Report submitted in partial fulfilment for the degree of

Bachelor of commerce

FMS – WISDOM
Banasthali Vidyapith
20
Training certificate
DECLARATION:
I Manisha hereby declare that the presented report of internship
titled ‘MARKETING’ AT “MUTHOOT FINANCE” is uniquely prepared
by me after the completion of one and half months work at Muthoot
finance, Tohana. I also confirm that, the Report is only prepared for
my academic requirement not for any other purpose. It might not be
used with the interest of opposite party of the cooperation.

MANISHA
Acknowledgements:
Executive summary
Table of Contents
 The Muthoot Group

The story of the Muthoot group is built on the foundations of passion,

commitments, honesty, traditions and values. Their principle of continuous
growth and expansions forms the essence of all their activities. The group was
set up by “Muthoot Ninan Mathai” in 1887 at kozhencherry, a small town in
Kerala.

The Muthoot group is a flourishing business empire that has pervaded into
each and every big and small town of the country is home to 20 diversified
divisions and 4500 plus branches with a global presence and it has an
employee base of more than 30000 employees.

It is an Indian multinational company headquartered in Kochi, Kerala.

It is owned and managed by the Muthoot family and it has taken its name from
the Muthoot family based in Kerala.

The group manages asset of over 4.5 billion and it operates in all the states of
India and it also has overseas branches in Nepal, Sri Lanka, USA, UK and UA
Divisions of Muthoot group:

 Financial services: Muthoot finance limited, the key industry of the

group was founded in 1939, by shree M. George Muthoot. The company
is world’s biggest gold loan company.
 Precious metals: Muthoot gold Bullion Corporation (MGBC) was
established in the year 2006. The core objective of this company is to
facilitate Gold coins/Bar /pendants for gifting/ investment purpose to
suit the needs of the society regardless of their financial situations.
 Housing and infrastructure: The Housing and Infrastructure
wing of “The Muthoot group” was established in the year 1988 under
the name ‘Muthoot Builders” and later on changed its name to
“Muthoot Housing and infrastructure”.
 Media: The group has its own radio station named as “cheenailive”
aimed at entertaining, educating, and updating the people of Chennai.
 Foreign exchange: It deals in all major currencies like the Euro, US
Dollar, British pound and Japanese Yen. It mainly offers the following
services :
 Purchase and sale of foreign currencies
 Sale and Encashment of travel cards
 Outward remittance for family/personal maintenance
 Wealth management : Muthoot Insurance Brokers limited wealth
management wing of the “The Muthoot Group “ deals in the following
insurance product like Life insurance , Traditional plans , New generation
plans , Retirement plans , Health insurance .
 Money Transfer: The Muthoot Money transfer service is an online
facility that enables customers to collect money from overseas fast and
easy .
 Housing finance: Muthoot Home fin (India) limited is concerned
with providing housing finance to the customers. Loans are extended for
House construction/ Home extension/ improvement/plot purchase etc.
 Securities: The group entered into the competitive world of equity
and commodity broking on 28th May 2008. Muthoot securities limited
 are working in this field. It is member of all the major stock exchange viz.
NSE, BSE and MCX- SX. It provides services namely Equity, commodity
and currency Trading, Internet based Trading, Portfolio management
services, Mutual funds etc.
 Vehicle and Asset finance: Muthoot vehicle and Asset Finance
limited is the vehicle and Asset finance wing of the group. It provides
finance to customers for purchase of vehicle or any Asset I.e. Machinery.
 Information Technology: Muthoot system and Technologies
pvt. Limited caters to the software development and maintenance needs
of the Muthoot group apart from being a total software provider to
selective global clients. This division has Developed a powerful and user
friendly Core – Banking solution (CBS) which has been smoothly running
in over 4500 branches of the group.
 Hospitality: The group has a chain of resorts in Kerala which are
named as XANDARI.
 Healthcare: Muthoot healthcare division was founded with the vision
to bring advanced medical facilities within the reach of the common
man. The hospital has also been granted certification by the National
Accreditation Board for hospitals and health care of the government of
India in recognition its outstanding Quality practices.
 Travel services: Travel jango division of the group is concerned with
providing the travel services. The following services are provided :
 International and Domestic Ticketing
 Tour packages
 Travel Insurance
 Foreign exchange
 Plantations and Estates: The Muthoot group is into plantations
on a big scale. Muthoot plantations boasts cardamom, Tea, Coconut,
And rubber plantations contributing to the group eco- friendly initiatives
while contributing returns through healthy and organic growth
 Power generation: Muthoot Power generation is established with
an aim of powering the world with clean energy. The group has entered
into power generation by tapping non- conventional energy sources.
 Education :
 Muthoot finance Limited

Muthoot finance is an India – based non- banking financial company financing

all the transaction related to gold. The companies operating history evolved
over a period of 80 years since M George Muthoot founded a gold loan
business in 1939 under the heritage of a trading business established by his
father Ninan Mathai Muthoot in 1887.
Muthoot finance limited is the largest gold financing company in the terms of
loan portfolio.
The company is headquartered in Kochi, India.
It operates over 4400 branches throughout the country employing over 30,000
employees.
The company offers foreign exchange services, money transfers, wealth
management services, travel and tourism services, and sells gold coins at its
branches.
The target market of Muthoot finance includes small Businesses, vendors,
farmers, traders, SME business owners, and salaried individuals.

Important points
 The Company was registered as a private company on March 14, 1997
with the name “The Muthoot finance private limited” underneath the
companies Act. After a period of 11 years the company was converted
into a public limited company on 18 November 2008.
 It received licence from Reserve Bank of India to work as a Non-banking
financial company in 2001
 During the year 2009-10, the corporate opened 620 new branches.
 Few years back in July 2016, Muthoot finance acquired 46.83% of the
capital of Belstar Investment and finance private limited.
 In 2018 Muthoot finance has raised its stake more in Belstar Investment
and finance limited to 64.60 %
What makes Muthoot finance a Famous NBFC ?
 Currently , Muthoot finance is considered as one of the
leading NBFC in india which offers attractive interest rates to
its customers.
 Muthoot finance does not only focuses on urban area but it
also has opened its branches in rural area which is a big
achievement

 Management of the company
Management is an indispensable element for the establishment, proper
functioning and success of all organization whether it is social, political,
religious, and charitable or any business unit. Muthoot finance limited
follows Top- down Hierarchy of management.

Top Management: Top Management of the Muthoot Finance limited

consists of the following key persons:

 M G George Muthoot ( Chairman of the Company )

 K.R Bijimon (Chief general manager )
 Mr. Oomen K Mammen ( Chief executive officer

Directors of the Company:

 George Alexander Muthoot ( Managing director)

 George Jacob Muthoot ( joint Managing Director)
 George Thomas Muthoot ( Joint Managing director)
 Alexander George Muthoot ( Deputy Managing Director )
 John K. Paul ( Independent Director)
 Mr. K George John ( Independent director )
 George Joseph ( Independent director)
 Ms Pamela Anna Mathew (Independent Director)
 Products and services:
Muthoot finance offers a wide range of products and services to its
customers that serve to all their needs and requirements. The following
are the various products and services offered by Muthoot finance

Gold Loan: The main product of Muthoot finance is gold loan. Gold
loan is a facility under which a sum of money is provided to customer
against keeping gold and jewellery of the customers as security to the
bank. Some of the schemes under Muthoot gold loan are:
 Muthoot EMI scheme (MES)
 Muthoot Mahila Loan
 Muthoot super Loan
 Muthoot high value Loan(MHL)
 Some features of Muthoot Gold loan are:
 Quick and easy providing of Loan
 Gold loan minimum starting amount is RS. 1500 and it has no
maximum limit
 Few documents are required for availing Loan
 Less response time
 Secure custody of the gold ornaments
 No plenty is charged on prepayment
 It provides 3 day grace period in payment of interest.
 It offers rebate on its interest payment, If EMI is Paid
regularly.

Gold Coin: Muthoot finance provides its customer the facility to invest

their fund in gold and silver coin with best –in class quality. It is one of the
unique financial company which deals in silver coins also.
Some of the Features of Muthoot gold coin Scheme is:

 One of scheme i.e Kanika Vrishty scheme provides gold coins on EMIs
without any chargeable interest.
 Gold coins are available over 4200 Branches across India.
 Gold coins available in 0.5 ,1 ,2, 4 , 8 ,10, 20 ,50 gram
 Silver coins are available in 20, 50 and 100 gram denomination.
 Gold coins schemes :
MKV Elite Gold –I
MKV Elite Gold –II
MKV Elite Gold -III

Money Transfer: Money Transfer facility enables customers to receive

and send money overseas in and efficient and effective way. Muthoot finance
has launched money remittance services between India and Nepal. For
providing this facility, Muthoot Finance has various associates through which
the money transfer process takes place:

 Western union
 Money Gram
 Xpress Union
 Instant Cash
 Transfast
 Royal money
 Global Money Transfer

Some of the feature of Muthoot money Transfer is:

 No additional is charged from customers

 It is approved by the RBI
  For availing service of less than 50,000, there is no need to have an
account with the company.

Muthoot Personal Loan:

Under this scheme of Muthoot finance Personal loan are granted to salaried
individual only. It charges an interest rate of 14% to 21% on personal loan
which depends on income of the applicant. The tenure of the Loan ranges from
1 to 5 years. Starting amount of personal loan is 50,000. Some of the features
of Muthoot personal loan are:

 Faster processing
 Simplified and minimal documentation
 Flexible repayment options

Insurance:

Muthoot finance offers Wealth Management services to its customer

thus providing maximum advantages to the customers. some of the
products of Muthoot finance insurance are :
 Muthoot shop owners policy
 Muthoot HOSPI Cash
 Muthoot Life GUARD
 Muthoot Home Protection etc.

Muthoot Shop Owners Policy:

This policy covers the shop owners from any damage to the shop owners due
to natural calamity, burglary, terrorism, explosion and money insurance. This
policy can be availed with premium starting as low as Rs 999 for Insurance of
6.25 lakhs Rs. Yearly. This policy mainly targets customer of Micro, small and
medium enterprise.

Muthoot HOSPI Cash: This policy of Muthoot finance covers reimbursement of

not only medical bills but also includes all type of expenses related to
hospitalization such as conveyance charges cost of personal attendant, food
etc. This policy can be availed by all categories without any barriers of age or
any pre- existing disease.

This policy pays you on the basis of every completed day of hospitalization.

The customer can avail double cash benefit in ICU for maximum 7 days.

Only certified copy of the Hospital discharge card is required to be presented

by the policy holder for claim of amount.

It provides you insurance up to 22000 Rs yearly by just making payment of RS

511 once in a year.

Muthoot Life Guard:

It is a unique life insurance product which is available only for the customers
of” The Muthoot Group “at a very low premium with easy process.

 Entry age : Minimum – 18

Maximum – 70
 Sum assured – up to 3 lakhs Rs
 Annual premium payment – 900 Rs
 Simple documentation
 Hassle free insurance
 Muthoot Home Protection:

The “Muthoot Home protector “policy protects home and household goods
against multiple risks. This policy not only protects the Building structure
but also Household goods including furniture, electrical appliances,
Jewellery and even utensils and crockery are covered.

Some of the features of this policy are:

 Lowest premium
 Repair cover for mechanical breakdown
 Over the counter product
 Easy claim process
 Immediate policy issuance
 Jewellery cover

Housing Finance: This product is concerned with providing Home loan to

the customers. Home fin is launched for providing loan for buying of new
house, buying plot to built a new house and also for the renovation of the old
house.

 The interest rate of home loan is comparatively lower

 This can be only availed by salaried and self employed
businessman and professionals.
 Rate of interest on Home loan generally starts from 12.05% p.a
 Loan is provided for up to the 90% of the total value of the
property.
Foreign Exchange:

Muthoot finance offers a hassle –free forex service. It deals in all the major
currencies like Euro, US Dollar, British pound etc.

Features of foreign exchange of Muthoot finance are :

 Comprehensive exchange rate

 Free travel currency card
 Less time taken to exchange the money
 Travellers cheque can easily be cashed without any additional cost

Travel Jango:

Travel Jango is a travel service which is designed by Muthoot finance to

provide travel related services to the customers. This Service can be availed
from all the 4500 branches in India and from 6 overseas branches as well.

Some of the feature of this service is:

 It provides tickets at discounted rate

 Hotel booking service is also available across India
 Travel insurance services are also provided
 Bus booking service
 Visa service and travel related help are provided
Conclusion :
Chapter 2: Introduction of the Topic:

Work done by me as an Intern:

In the tenure of my internship I was handed over with the responsibility of

solving queries of the customers regarding the products of the company. In the
initial days of the internship they provided me with the brief about the
establishment of the company and about the products which are offered at
that branch.

Gold Loan:

What is a Gold loan?

When a customer pledges gold jewellery, ornaments and bank issued gold
coins as collateral for raising a loan, it is known as a gold loan. The pledged
gold is used as a security by the bank if in any case the customer does not
makes the payment of the loan then it can recover its amount from the
pledged gold. The loan amount sanctioned is the some percent of the pledged
security

Why gold loan?

It’s a general question which arises in mind of every customer that why he
should take gold loan only instead of taking any other loan. So some of the
benefits of gold loan are discussed below:

 Gold loan has a unique feature where customer has an option of just
paying the interest on the loan amount and the principle amount can be
paid at the time of closing of the loan.
  There is a low processing fees is charged on gold loan.
 Less requirements of documents i.e. no income statement is required for
availing gold loan.
 Interest charged on gold loan is comparatively low because these loans
are secured.
 Faster processing of loan
 Zero pre-payment plenty

Muthoot finance gold Loan:

Muthoot gold loan scheme promises cash against the value of gold pledged,
which is very easy to get and affordable to be paid back. Hence with such a
scheme no one needs to worry about financial deficits as he can avail gold loan
from Muthoot finance with a very short period of time by pledging the gold
asset possessed by him. One can avail gold loan of just RS. 1500 and it can be
stretched up to 1 crore The tenure can be as low as one day to 15 months for
normal schemes and 36 months for EMI based schemes. During the briefing
about the gold loan by the company i came to know about many features of
gold loan.

Some of the features of the Muthoot finance gold loan are:

 For availing gold loan from Muthoot finance, a loan applicant can pledge
any type of gold jewellery. This includes various jewellery items such as
necklaces, bangles, rings etc.
 It provides 3 days grace period for payment of interest of loan.
 It offers rebate on its interest payment, If EMI is paid regularly.
  A loan applicant cannot avail gold loan by pledging gold bars, gold funds
(Gold Exchange Traded funds), and especially gold coins which have
weight more than 50 gm.
 The minimum age for taking gold loan is 18 years.
 It has in-house gold evaluation experts at their branches, so the
processing time of loan can be as short as one hour.
 It charges a reasonable processing fee and ensures that its customers
are not subjected to any hidden charges as they inform their customers
about all the charges in the beginning only.
 No plenty is charged on the pre payment of the loan. A customer can get
back pledged gold anytime by paying off the Loan in full.
 The response time for customer service is shorter and quicker as
compared to other banks and banking institution.
 The processing fees are gold loan are to a maximum limit of 1 % of total
loan amount sanctioned.

Documents required for Muthoot Finance Gold Loan:

The documentation process for availing Muthoot gold loan is very quick and
easy as it required only basic document. The loan applicant has to submit the
following documents so that his loan application is accepted and processed: