SUMMER TRANING PROJECT REPORT

ON

“A PROJECT REPORT ON STUDY OF RISE OF GOLD LOAN at

DIALABANK( CHANDIGARH)”

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIRMENTS FOR THE

MASTER’S DEGREE IN BUSINESS ADMINISTRATION

OF

CHANDIGARH UNIVERSITY, GHARUAN, MOHALI

SUBMITTED TO:

INTERNAL GUIDE EXTERNAL GUIDE

Name: Dr. Pardeep B Sharma Name: Ashok Shira

Designation: Associate Professor Designation:Relationship Manager

Chandigarh University Company Name: Dialabank

Gharuan, Mohali Location: Chamdigarh

SUBMITTED BY:

DEVIKA

18MBA1538

CHANDIGARH UNIVERSITY, GHARAN, MOHALI

BATCH 2018-2020
1
 Acknowledgement

Inspiration and motivation have always played a key role in the success of any venture so before
proceeding any further I express my sincere thanks to University School Of Business,
Chandigarh University, Gharuan, Punjab.

I pay my deep sense of gratitude to my project guide Dr. Pardeep B Sharma for encouraging
me to the highest peak and to provide me the opportunity to prepare the project by providing
valuable guidance and kind supervision in completion of my project.

I will be ever so grateful to whole faculty team of USB, Chandigarh University for their
valuable guidance and recommendations throughout the project. I would also like to thank the
whole parts team of DIALABANK (PAISSO TECHNOLOGY PVT. LTD.) for providing me
internship and necessary guidance for the completion of my project on time.

Last but not the least, my parents and my friends are also an important inspiration for me. So
with due regard, I express my gratitude to them.

Thank you all, I will be ever so indebted to all of you.

DEVIKA

18MBA1538

2
 CERTIFICATE (by the Supervisor/ Guide)

I have the pleasure in certifying that Mr./ Ms:DEVIKA Is a bonafide student of the Master’s
Degree in Business Administration ( Batch 2018-2020), of Chandigarh University, Gharuan,
Mohali, Punjab with UID No.18MBA1538

He/ She has completed his/her project work entitled RISE OF GOLD LOAN under my
guidance.

I certify that this is his/her original effort & has not been copied from any other source. This
project has also not been submitted in any other institute / University for the purpose of award of
any Degree.

This Project fulfils the requirement of the curriculum prescribed by this university for the said
course. I recommend this project work for evaluation & consideration for the award of Degree to
the student.

Signature :___________

Name of the Guide: ___________

Designation :___________

Date :___________

3
 Executive Summary

I have great pleasure in presenting my project to the Chandigarh University. My topic is “A

Study of Rising Trend of Gold Loan”. I have made sincere efforts to make this project
informative and I am sure it would justify the same.
I’m deeply elated to carry out my project on study of Gold Loan. The project gave me an
opportunity to study various aspects related to Gold Loan. It was a good learning experience
throughout and it will certainly benefit the readers too.
My project covers the basic knowledge of the Gold Loan System in India, which is essential to
understand how Gold Loan system works and how Gold Loan has developed in our country to a
great extent in the present age due to technical advancements.
Different types of Gold Loan, Different types of Gold Loan companies, Procedures and
Recovery System related to Gold Loan and so on has been covered in the project.
Through this project I have tried to find out the increasing trend of Gold Loan.

4
Table of Contents

Acknowledgement…………………………………………………………………………….…..2
Executive Summary……………………………………………………………………………….3
Chapter1 About The Company………………………………………………………………….6-7
Chapter2 Introduction :Gold Loan…………………………………………………………….8-22
Chapter 3 Review of Literature…………………………………………………………………………………………………….23-27
Chapter 4 Research Methodology……………………………………………………………………………………………..…28-29
Chapter 5 Data Analysis Interpretation…………………………………………………………..…………………………..30-39
Chapter 6 Conclusion…………………………………………………………………………………………………………………….40-41
Chapter 7 Bibliography……………………………………………………………………………………………………..………………42
Chapter 8: Annexure……………………………………………………………………………………………………………..………43-47

5
 Chapter 1.

About the Company

DIALABANK (PAISSO TECHNOLOGY PVT. LTD.)

6
Introduction

Dialabank is a Financial Helpline where the company provides eligibility and price comparison
for financial products. The start-up also serves as a national aggregator for the financial
institutions by providing them with clients as per their acquisition model.

Founded in January 2012, by Gaurav S. Khurana, the company works similar to that of Just
dial, however, only for the financial sector.

Its founder has an extensive experience in the banking and financial services industry. He was
aware of the pain points that an average Indian consumer faces while looking for a financial
product. Most people do not have either the information or the expertise to compare and find the
right product. Therefore, the startup aims to create a single marketplace where a client can access
at the click of a button and get access to a single relationship manager who represents all leading
financial institutions, that is how the idea for Dialabank came up.

What problem is it solving?

The service helps people to compare and get the best offer from the banks. It also simultaneously
helps the bank to reach out to the right customer for them.

What services does Dialabank offer?

“Our domain is the banking industry in India, that has the potential to become the fifth largest in
the world by 2020 and third largest by 2025 according to a KPMG-CII report,” claims the
company.

The startup’s expertise includes loans (home loan, personal loan, car loan, loan against property,
SME business loan, education loan and gold loan), Credit Cards, Insurance (life insurance and
non life insurance) and investments (mutual funds, stocks and bonds).

Who is it competing with?

Some of its competitors in the online financial assistance sector are Bankbazaar.com,
Apnapaisa.com, Deal4loans.com.

Present Status and Future Goals

Presently around 1 lakh customers on a monthly average get assistance on loans and other
products across banks, insurance and mutual fund companies. The startup’s annual disbursal is
Rs. 350 crores.

It aims to provide a 2-minute online approval directly from the bank as soon as the customer
uploads the relevant documents into the system. This, as the company says, will reduce the
turnaround time for loan approvals.

The startup is planning to raise an investment of $5-7 million to expand the reach of their
services.
7
 Chapter 2

Introduction: Gold Loan

8
Introduction

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 Dialabank 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 Dialabank Gold Loan :

 Loan amount ranges from min Rs 1,000 to max Rs 10,00,000

 Tenor for loans ranges from 7 days to 11 months
 Loan can be paid back on a monthly or quarterly basis
 Interest / Loan Amount due can be paid at any of IIFL Gold Loan
branches pan-India
 Minimal amount of paperwork and documentation is required
 Loan gets processed in as low as 5 minutes

Advantages of Gold Loan:

1. 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.

2. 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.

3. 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.

4. 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.

9
5. 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.

6. 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.

7. 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.

8. 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.

9. 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 tones. When
people borrow against gold (technically called ‘monetization’), the impact is to
set in motion a whole new chain of economic activity.

Charges associated with Gold Loan:

1. Loan processing charge: While some of the service providers may waiver these
charges, some banks do charge a processing fee.

2. 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.

3. Late payment penalty: Most of the service providers charge late payment penalty
and this too can vary from one institution to the other.

4. 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.

5. It is advisable to check with the loan provider before taking the loan. These
charges could change the amount that you may finally receive.

10
RBI's gold loan regulation for 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.

11
Gold Loan Process :

12
 GOLD LOAN FLOW CHART

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.

Confirms the count and gross weight.

Check gold for its purity.
Brief the customer about their requirement and other features.

Confirms the purity by testing.

Passes the appraisal sheet to BM.

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 .

Disbursement of cash along with denomination noting in cash register.

13
 Role of staff engaged in a normal branch process:

Security Guard

Customer care executive

Valuer 1 and 2

Branch Manager

 Role of customer care executive:

Handling inquiries from customers regarding loans against gold.

Helping customer to solve his / her all queries.

Explaining terms and conditions of the product to the customer.

Counting jewel items in front of customer and taking his/her all query.

Ensuring all the KYC documents are verified with original.

Ensuring all the details are filled up in customer detail form.

 Role of valuer 1 and valuer 2:

Checking the jewelry with accuracy.

Testing gold with two methods which includes , skin test and salt test.

Finding out the purity and making appraisal sheet.

Working out on loan amount with mutual conversation.

Every gold jewelry item must be counted and matched with the appraisal sheet
before inserting it in gold packet.

Each and every details mention on packet must be filled in with accuracy.

It is important to keep gold packet in serial order in vault

14
 Steps to be followed while appraising gold:

Sort gold items according to solid, chains and others.

Confirm the purity with the help of touch stone and acid test.

Note down result in following format:

Pass out gold to valuer 2 for re- valuation

Suggest lower loan amount to BM.

 Steps to be followed while sealing of gold

Fill in the details on the packet

Insert the gold and appraisal sheet in the packet

Fix the sticker

Sign on the sticker (BM and valuer 1)

Affix the seal on sticker

Keep the gold packet in vault in serial order mentioning the GL number (to and
from)

15
  Role of cashier:

To make sure that cash is taken from vault strictly as per cash denomination
entered in the system.

Ensuring that cash is counted twice before giving it to customer.

To make sure that cash transaction is done in front of cctv camera.

 Steps to follow at the time of cash handling:

Joint custodians open the vault room.

Take cash as per cash denomination entered in system

Pass out the same to cashier to re-count.

Handover the cash to customer in front of CCTV camera.

 Case 1: customer doesn’t have valid documents (KYC norms)

Do not violate KYC norms.

A valid address proof must be taken.

In this case rent agreement is must as a address proof.

One should not process the loan if customer doesn’t have the proof of current
residential flat.

16
 Case 2: customer doesn’t have address proof (KYC norms)

Do not violate KYC norms.

In this case address proof is to be taken

One should not process the loan if customer doesn’t give you the address proof
at the same moment.

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

Inform your customer incase of broken jewelry.

Customers behavior must be noticed

In case of doubt , ask the customer about the reason for taking loan

Telephonic verification must be done at the same time

Alert other branches about the customer to avoid any further mishap

 Case 4: Branch visit by senior

 Do not allow any senior to check branch inventory without checking his/her
ID card

 Part release:

 In part release customer has the facility to remove his / her some of the
jewelry

 Customer can also change the scheme with remaining jewelry

17
  When customer comes for interest payment make sure that it doesn’t take
much time

Final release:

At the time of final release kindly check the borrower copy

Open the gold packet in front of customer

Collect cash before handling gold to customer

Every transaction of cash must be done in front of CCTV camera

Role of branch manager:

Branch manager has to explain customer about RTGS process

Convince customer to opt for RTGS/NEFT mode of cash transfer

Explain customer about the advantages of RTGS/NEFT process

Make sure that address verification is done by BM before disbursal of loan

18
 Competitive Analysis

 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.

 Manappuram Finance Gold Loan :

Manappuram Finance also facilitates gold loan within 5 minutes. It help to draw instant
Cash by subscribing gold ornaments and Jewelery. 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.

 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.

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 &Est License / Sales Tax certificate, 2 pass port size photographs.

 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
 Letter of witness in case of illiterate borrowers.
 Two passport size photographs of the borrower.
 DP Note delivery.
 All the gold ornaments that are to be kept as mortgage for the loan.
 Gold Loan application.

20
 Leander Bank\
NBFCs
Loan features Muthoot Manppura Muthoot Indian Indian Federal IIFL
Finance m Fincrop Bank Overseas bank
Bank

Rate of Interest 12%-21% - 13.45%- 12.25 - 12 %- 12.5 % 13.5% - 15 % - 21

24% 15.25% 15.75 % %

Loan to value Avg of 72%, Up to 85% Up to 90%; Lower of - Up to 85% 55 % to 80

Ratio high of 85% 100% in 70% or %
some cases value
based on
rate per
gram and
net weight

Loan tenure - - 6 to 36 - - 6 months 7 dasy to

months to 12 11 month
months

Disbursal Time 5 mins 5 mins 3 mins to 4 5 mins to 4

hours hours

Min. 1,500 - 500 - 50,000 - 3,000

Loan
Amount
Max. Loan 10 million 10 million No Limit 2 million 1 million 7.5 million 10 million
Amount

Purpose Any Any Any Any Commercial Any any

only

Processing Fee 0 0 Rs. 5 to Rs. 0.5% for Rs. 202 per 0 Rs. 49 to
75 loans lakh; Rs. 300 Rs. 150
greater appraiser
than Rs. commission
25,000

21
Documentation Only ID Only ID at Only ID ID proof Proof of Asset ID proof
at disbursal at and asset commercial ownership and address
disbursal disbursal ownership activity; proof and proof
documents unaudited bank
balance sheet account
for > 3 lakhs;
jewel
appraisal
certificate

Others • In-house Interest to be • Part - - - • Part

Important
Features evaluation • paid for redemption Redemption

Schemes with number of • Part • Part

Different days loan payment • payment •

value per availed Exclusive EMI

gram and counters Facality

corresponding for loans • Prompt

interest rate more than Payment

Rs. 25,000 rebate of

• Prompt 2% •

payment Minimum 7

rebate of Days

2% • interest i s

Minimum 7 Payable

days

interest is

payable

22
 Chapter 3:
REVIEW OF LITERATURE

23
 Venkateswaran (2012) analyzed that organized gold loan market grew at CAGR of 40
per cent during FY 2002-10. The study pointed out that gold loan market was
underpenetrated which accounted just 1.2 per cent of the value of total Gold stock in
India. The study concluded that negligible penetration, aggressive network expansion
and increasing adoption of gold loans attracted more financial institutions to enter into
business to give competition to existing NBFCs.
 Mary (2013) found out that the demand for gold as an investment avenue was gaining
momentum among consumers of Cochin and Delhi. The research resulted that gold
was price sensitive at low prices but insensitive to price increase. The study concluded
that the gold customers in Cochin and Delhi were price insensitive in nature.
 Roy (2013) analyzed with the help of CAMELmodel that the gold loan NBFCs
(Manappuram Finance, Muthoot Finance and Muthoot Fincorp) used heavier debt in
their capital structure, aggressive lending policies and their lower liquidity put them on
the edge of high risk.
 Gupta (2014) compared the Economic value added (EVA) with the traditional
performance measures (CAMEL indicators) as a predictor of financial health of all
public sector banks and 20 top private sector banks during 2003 to 2008. The results
revealed that Earning Per Share (EPS) and Return on Net Worth (RONW) were better
predictor of financial health of banks followed by EVA over the other indicators.
 Kumar and Sharma (2014) analyzed the performance of the top 8 market capitalized
banks by using CAMELapproach during the period 2006-10. The overall performance
showed that SBI was top performer followed by PNB and HDFC bank.
 Malhotra and Aspal (2014) analyzed the financial performance of the new private
sector banks in India by using the CAMELS model during 2008-2012. The study
indicated no significant difference in CAMELS ratios among the new private sector
banks. The study concluded that Kotak Mahindra bank have excellent performance
followed by Axis bank and ICICI bank secured the last rank in terms of performance.
 Thilakam and Saravanan (2014) examined the financial soundness of the 30
selected NBFCs in Tamil Nadu by using the CAMELmodel during the period Finance
section www.pbr.co.in 191 Volume 1, Issue 1, June 2016 2003-2012. The study
resulted that the companies in the risky zone reduced from 46 per cent to 41 per cent,
24
 in the very satisfactory Venkateswaran (2012) analyzed that organized gold loan
market grew at CAGR of 40 per cent during FY 2002-10. The study pointed out that
gold loan market was underpenetrated which accounted just 1.2 per cent of the value of
total Gold stock in India. The study concluded that negligible penetration, aggressive
network expansion and increasing adoption of gold loans attracted more financial
institutions to enter into business to give competition to existing NBFCs.
 Mary (2013) found out that the demand for gold as an investment avenue was gaining
momentum among consumers of Cochin and Delhi. The research resulted that gold
was price sensitive at low prices but insensitive to price increase. The study concluded
that the gold customers in Cochin and Delhi were price insensitive in nature.
 Roy (2013) analyzed with the help of CAMELmodel that the gold loan NBFCs
(Manappuram Finance, Muthoot Finance and Muthoot Fincorp) used heavier debt in
their capital structure, aggressive lending policies and their lower liquidity put them on
the edge of high risk.
 Gupta (2014) compared the Economic value added (EVA) with the traditional
performance measures (CAMEL indicators) as a predictor of financial health of all
public sector banks and 20 top private sector banks during 2003 to 2008. The results
revealed that Earning Per Share (EPS) and Return on Net Worth (RONW) were better
predictor of financial health of banks followed by EVA over the other indicators.
 Kumar and Sharma (2014) analyzed the performance of the top 8 market capitalized
banks by using CAMELapproach during the period 2006-10. The overall performance
showed that SBI was top performer followed by PNB and HDFC bank.
 Malhotra and Aspal (2014) analyzed the financial performance of the new private
sector banks in India by using the CAMELS model during 2008-2012. The study
indicated no significant difference in CAMELS ratios among the new private sector
banks. The study concluded that Kotak Mahindra bank have excellent performance
followed by Axis bank and ICICI bank secured the last rank in terms of performance.
 Thilakam and Saravanan (2014) examined the financial soundness of the 30 selected
NBFCs in Tamil Nadu by using the CAMELmodel during the period Finance section
www.pbr.co.in 191 Volume 1, Issue 1, June 2016 2003-2012. The study resulted that
the companies in the risky zone reduced from 46 per cent to 41 per cent, in the very
satisfactory zone reduced from 49 per cent to 46 per cent but increased in the
satisfactory zone from 4 per cent to 13 per cent over the period of study.

25
 Mahalingam, Ajanthy, and T. S. G. Peiris (2015) additionally have expressed that
gold costs are influenced by dollar list. Gold, Anna, et al (2014) have likewise
examined about intersection mental value hindrances of gold.
 Sarac, Mehmet, and FeyyazZeren (2014) within their document possess examined
the reasons with regard to growth within demand with regard to Gold within about ten
years ago as well as exactly how this particular led in the direction of worth ascent
associated with Gold.
 Roney (2013) within their post has indicated exactly how growing Gold costs may
impact financial systems associated with countries as well as provided measures in
order to adjust as much as this case.
 Smith (2015) explain within their document concerning the additional try to unravel
the worthiness improvement associated with Gold following the Bretton-Woods
construction, the last globally monetary management considering Gold. Originator
conveys which recently; the planet noticed the powerful improvement within Gold
price. The part associated with Gold within expense has attracted much more thing to
consider because this particular transformational financial crisis began to unravel
within 2008.
 Tiwari, Aviral Kumar, (2011) believe in which point costs must possess special
examples of effects in order to person industrial businesses as opposed to the whole
marketplace. The modifications within the Gold costs are going to be affected through
the severe diversities within the oil costs.
 Ash et al (2011) the document shows which home as well as common Gold costs tend
to be securely interlinked. After which this inspects the way in which associated with
modifications within the components impacting on globally Gold costs among the
newest 2 full decades. short-run unpredictability within worldwide Gold costs was
previously traditional elements, for instance, globally point costs, US dollar
transformation size as well as worth costs.
 Ash et al (2011) additionally concentrated to look at the causality link that could
maintain running in between home Gold costs as well as investments trade results
within Indian. The research through considering critically concerning the nearby Gold
costs as well as investments trade earnings based with regard to BSE 100
document,studies the Granger causality within the Vector Error Correction Design for

26
 that time period The month of January 2000 in order to Dec 2010. The analysis offered
the verification associated with critique causality between parameters.
 Subhashini, et al. (2012) utilized a model to catch stochastic and hop volatility, as
well as next employed the GARCH versions to research value-at-risk (VaR) numbers
within gold marketplace through thinking about oil jolts. These people found the
importance associated with oil rebound volatility and also the versatility in effect
phrase design is essential with regard to VaR identifying within the gold marketplace.
 Souček et al. (2013) used a VAR model to look at the long and short-run relationship
between world oil costs, interest rate, conversion scale, gold and silver. They locate the
world oil cost does not lead the gold cost. Be that as it may, developments in world oil
costs affect gold markets by summed up motivation reaction capacities. Shih, Tung-Li,
et al. (2013) employed co-integration assessments in order to examine the long-run
relationship in the center of gold as well as oil place as well as potential customers
marketplaces. These people find the oil worth prospects gold costs within short-run.
Concerning various maturities, these people recognized the long-run relationship in
between place (prospects) through residual based assessments. Generally, the problem
from the reduced pressure associated with normal co-combination assessments is really
a concerned. Thusly, this particular document explores the asymmetry co-mix effect in
between gold as well as oil costs.

27
 Chapter 4
Research methodology

28
Title of Research:

“A PROJECT REPORT ON STUDY OF RISE OF GOLD LOAN AND THE SURVEY

ON VARIOUS PRESPECTIVE OF GENERNAL PUBLIC DURING INVESTMENT AT
DIALABANK”

Research Objective:

 To gather knowledge about the Indian gold loan market

 To study the reasons for choosing gold loans over conventional personal loans

 To study the purposes for availing gold loans by the respondents.

 To find out the competitive position of Dialabank, and the ways and means to
improve on the service by Dialabannk.

 To study about consumer awareness& satisfaction, about operational Services &

procedures of Dialabank.

 To understand the satisfaction level of clients with Dialabank regarding

service provided by staff.

Research area:
Chandigarh

Research sample size:

80 respondents

Research type:
Descriptive research

Research limitation:
 Only 80 respondents were being surveyed during research
Respondents having gold loan were being surveyed

29
 Chapter 5:
Data Analysis Interpretation

30
Q.1) Occupation of respondents?
Ans. Business - 25 Salaried –55

Here we can see that salaried people are more near Chamber branch because there are
many companies nearby and people from various places come there and work in different
fields.

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.

31
 Q. 3 How Many times in a year you have emergency requirement of money?

Numbers of times Numbers of people

Requirement
0 05
1 55
2 17
3 03
4 00

We can observe that maximum 55 no. of respondents have emergency requirement of money
other 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.

Emergency Requirement of Money

60

50

Emergency Requirement of

20 Money
40

10
30 0 times 1 times 2 times 3 times 4 times

32
Q.4) Are you aware about concept of gold loan?

a) Yes 65 b) No 15

It can be observed that majority of the respondents were aware of the concept of gold loan.

Q.5) Have you ever used gold loan service?

a) Yes - 32 b) No - 48

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

33
 emergency requirements.

Q.6) From which company people are taken gold loan?

Gold Loan Number of People

Company
IIFL 03
Muthoot 09
SBI 05
Mannapuram 04
ICICI 01

Gold Loan Company

10

6 Gold Loan Company

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.

34
Q. 7 How Much Amount of Loan Taken?

Gold Loan Number of People

Company

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.

35
Q. 8 which is the safest instrument for saving & Investment?

Instrument Number of people

Saving Bank a\c 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.

36
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.

37
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.

38
 LIMITATION OF THE STUDY

 Time limit is a major constraint. This research reflects on individual customer in

Chamber only. So findings and suggestion given on the basis of this research cannot
be extrapolated to the entire population.

 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.

 Respondent are not sincere and care full to fill up the questioner so we cannot find
right solution.

 As per the company rules many information was not disclosed.

 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.

39
Chapter :6

Conclusion

40
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.

41
 Chapter 7
Bibliography

 https://www.dialabank.com/
 http://www.pbr.co.in/2016/2016_month/June/18.pdf
 https://www.hdfcbank.com/personal/borrow/loan-against-assets/gold-loan/fees-
and-charges
 https://www.muthootfinance.com/services/gold-loan
 https://www.manappuram.com/gold-loan.html
 https://www.sbi.co.in/portal/web/personal-banking/gold-loans
 https://shodhganga.inflibnet.ac.in/bitstream/10603/111516/9/09_chapter%202%20lite
rature%20review.pdf

42
 Chapter 8:
ANNEXURE

43
 QUESTIONNAIRE

Dear Sir/Madam,
I am Devika from Chandigarh University. As a part of my academic project, I am studying trends
that lead to increase in gold loan scenario in India. Following are some questions in the same
regards. I request you to help me fill the questionnaire. Please tick (√) wherever applicable.

1. Occupation of respondent?
 Business
 Salaried

2. Marital status of respondent?

 Married
 Unmarried

3. How many times in a year you have emergency requirement of money?

 One
 Two
 Three
 Four

4. Are you aware about concept of gold loan?

 YES
 NO

5. Have you ever used gold loan service?

 YES
 NO

6. From which bank or financial institution you take gold loan?

 IIFL
 Muthoot
44
 SBI
 HDFC
 ICICI
 Mannapuram

7. How much amount of Loan taken?

 Below 25000
 25,000 -50000
 50,000-1 lakhs
 I Lakhs or above

8. Which is the safest instrument for saving and Investment?

 Saving Bank A/c
 Loans
 Real estates
 Insurance

9. How many are having Own house or Rented House?

 Rented
 Own

10. What are your monthly household expenses?

 Below 10,000
 Upto-15,000
 Upto-20,000
 Upto-25,000
 Upto- 30,000

45
 Deal Closure
1.
All Disbursals(Deal Closure RM Devika(9056469296)
Full Name Deal Closure RM Amount
Mrigen Barman Devika (09056469296) 0.706

Rubul hussain Devika (09056469296) 0.32

Sanjeev kumar Devika (09056469296) 0.41

Manoj singh Devika (09056469296) 2.84

Binesh Gupta Devika (09056469296) 0.48

Pawan Kumar Devika (09056469296) 1.02

Satnam Singh Mudhar Devika (09056469296) 0.8

Mamy Dowrah Devika (09056469296) 0.312

Baby Kunwar Devika (09056469296) 0.307

Pankaj kumar Devika (09056469296) 1.02

Raj kumar Devika (09056469296) 3.99

Bhavtej singh Devika (09056469296) 3.99

Hardesh Sharma Devika (09056469296) 1.6

Mohdhaneef uddin Devika (09056469296) 2.85

Gurdas singh/Paramjeet Singh Devika (09056469296) 0.165

Jaspreet kaur Devika (09056469296) 0.443

Goutam Dolai Devika (09056469296) 0.46

Minakshi/Ginesh Kumar Devika (09056469296) 1.6

Ravi Kumar Devika (09056469296) 0.114

Susana kanhar/prashant Devika (09056469296) 0.655

Balwinder singh Devika (09056469296) 0.515

Riyaz /Manuwar Hussain Devika (09056469296) 0.54

Vikramjit singh Devika (09056469296) 0.576

46
2. Disb Files (Deal Closure RM is Devika (09056469296))
FULL NAME DEAL CLOSURE RM

Mrigen Barman Devika (09056469296)

Rubul hussain Devika (09056469296)
Sanjeev kumar Devika (09056469296)
Manoj singh Devika (09056469296)
Binesh Gupta Devika (09056469296)
Pawan Kumar Devika (09056469296)
Satnam Singh Mudhar Devika (09056469296)
Mamy Dowrah Devika (09056469296)
Baby Kunwar Devika (09056469296)
Pankaj kumar Devika (09056469296)
Raj kumar Devika (09056469296)
Bhavtej singh Devika (09056469296)
Hardesh Sharma Devika (09056469296)
Mohdhaneef uddin Devika (09056469296)
Gurdas singh/Paramjeet Singh Devika (09056469296)
Jaspreet kaur Devika (09056469296)
Goutam Dolai Devika (09056469296)
Minakshi/Ginesh Kumar Devika (09056469296)
Ravi Kumar Devika (09056469296)
Susana kanhar/prashant Devika (09056469296)
Balwinder singh Devika (09056469296)
Riyaz /Manuwar Hussain Devika (09056469296)
Vikramjit singh Devika (09056469296)

3. Week 1st (Deal Closure RM is Devika)

LOAN AMT (RS

FULL NAME DEAL CLOSURE RM
LACS)
Manoj singh Devika (09056469296) 2.84
Satnam Singh Mudhar Devika (09056469296) 0.8
Baby Kunwar Devika (09056469296) 0.307
Raj kumar Devika (09056469296) 3.99
Bhavtej singh Devika (09056469296) 3.99
Hardesh Sharma Devika (09056469296) 1.6
Gurdas singh/Paramjeet Singh Devika (09056469296) 0.165
Goutam Dolai Devika (09056469296) 0.46
Minakshi/Ginesh Kumar Devika (09056469296) 1.6
Ravi Kumar Devika (09056469296) 0.114

47
48