A Project report on

“Analysis of Service quality in the gold loan department of IIFL, Millennium square, Rajkot."
Submitted to

Marwadi Education Foundation’s Group of Institutions

In partial fulfillment of the requirement of the award for the degree of

Master of Business Administration

Under

Gujarat Technological University

Under the guidance of

Faculty Guide: Company Guide:

Prof. Chhavi Manara Dinesh Rathod

Assistant Professor Branch Manager (BM)

Submitted by

Ami Doshi

Enrolment Number: 128270592033

MBA Semester II

Marwadi Education Foundation’s Group of Institutions

MBA Program

Affiliated to Gujarat Technological University

Ahmedabad

July 2013

SUMMER INTERNSHIP PROJECT [SIP] – 2013

1
 Student Declaration

I Doshi Ami hereby declare that the report for ‘Summer Training Project’ entitled “Analysis
of Service quality in the gold loan department of IIFL, Millennium square, Rajkot."
is a result of my own work and my indebtedness to other work publications, references, if any,
have been duly acknowledged.

Place: Rajkot Student Signature

Date: Doshi Ami D.

2
 Acknowledgement

The making of any project requires guidance and creative energy of many people and this certainly
is no exception. I hereby take this opportunity to express my deep sense of gratitude, thanks and
regards towards all those who have directly or indirectly helped me in the successful completion of
this project.

I present my sincere thanks to Mr. Dinesh Rathod who allowed me to take training at IIFL GOLD
LOAN.

I would also like to thank ,Mr. Shrinath

I am also grateful to all members of IIFL Gold Loan who helped me throughout my training period.

I also thank to Prof. Chhavi Manra.

Last but not the least I am indebted to my PARENTS who provided me their time, support and
inspiration needed to prepare this report.

3
 Index

Sr.No. Particular Page no.

Part 1 General information
1 Industry Overview
1.1)History
1.2)Growth & development
1.3)Performance
1.4)Market players in the industry
2 Company Overview
2.1) History
2.2) About IIFL
2.3) Performance and other key performing data
2.4) Product / Service overview
2.5) SWOT analysis
Part 2 Research Work
3 Introduction of the study
3.1) Background of the study
3.2) Review of literature
3.3) Statement of problem
3.4) Objective of the study
4 Research Methodology
4.1) Research design
4.2) Sampling method
4.3) Sampling size
4.4) Sources of data
4.5) Data collection method
4.6) Data collection tools
5 Analysis and Interpretation of data
6 Results and findings
7 Suggestion and conclusion
8 Limitation of the study
9. Bibliography
4
PART 1- GENERAL
OVERVIEW

5
1. INDUSTRY
OVERVIEW

6
Non-Banking Finance

[1.1 History ]

A non-bank financial institution (NBFI) is a financial institution that does not have a
full banking license or is not supervised by a national or international banking regu

latory agency.Non-banking financial companies (NBFCs) form an integral part of the Indian
financial system.The history of the NBFC Industry in India is a story of under-regulation followed by
over-regulation.Non Banking Financial Companies or NBFC in India are registered companies
conducting business activities similar to regular banks.

NBFIs facilitate bank-related financial services, such as investment, risk pooling, contractual
savings, and market brokering.Their banking operations include making loans and advances
available to consumers and businesses, acquisition of marketable securities, leasing of hard
assets like automobiles, hire-purchase and insurance business.

Examples of these include insurance firms, pawn shops, check issuers, check
cashing locations, payday lending, currency exchanges, and microloan organizations.

These institutions are not allowed to take deposits from the public. Nonetheless, all
operations of these institutions are still exercised under bank regulation. However this depends on
the jurisdiction, as in some jurisdictions, such as the business of banking, and there are no
banking licenses issued.

NBFCs offer most sorts of banking services, such as loans and credit facilities, private
education funding, retirement planning, trading in money markets, underwriting stocks and shares,
TFCs(Term Finance Certificate) and other obligations. These institutions also provide wealth
management such as managing portfolios of stocks and shares, discounting services e.g.
discounting of instruments and advice on merger and acquisition activities. The number of non-
banking financial companies has expanded greatly in the last several years as venture capital
companies, retail and industrial companies have entered the lending business. Non-bank

7
institutions also frequently support investments in property and prepare feasibility, market or
industry studies for companies.

Though the NBFC’s have been around for a long time, they have recently gained popularity
amongst institutional investors, since they facilitate access to credit for semi-rural and rural India
where the reach of traditional banks has traditionally been poor.

Accordingly, the Reserve Bank issued directions to companies on acceptance of public

deposits, prudential norms like capital adequacy, income recognition, asset classification, provision
for bad and doubtful debts, exposure norms and other measures to monitor the financial solvency
and reporting by NBFCs. Directions were also issued to auditors to report non-compliance with the
RBI Act and regulations to the Reserve Bank, Board of Directors and shareholders.

8
1.2)Growth and Development:

NBFCs1 in India continue to grow profitably by meeting the credit needs primarily
of self employed borrowers while maintaining reasonable asset quality and prudent level of
leveraging. Understanding borrowers profile and dynamics of borrower segments of such NBFCs
is a prerequisite for the performance evaluation of NBFCs. Although NBFCs cater to a wide range
of segments, there are common characteristics of borrowers across these segments. A typical
borrower (of such NBFCs) needs to be approached to originate a credit deal (is unlikely to walk
into a branch to seek credit, except for Gold loan borrowers), is more complex to credit assess (as
compared to a salaried person) and could require intensive monitoring and servicing efforts. Given
these characteristics, banks particularly Public Sector Banks find it unattractive to operate in such
segments, as they struggle to maintain good risk adjusted returns from such segments. As over
three fourth of the Indian credit market is served by PSBs, low credit penetration (at around 10%2
as on March 31, 2011) vis. a vis. Deposits (68%) may be a reflection of PSBs inability to cater to
such borrowers. It is critical to be nimble footed, service oriented and extremely cost efficient to be
profitable in the segment. In light of this private sector banks and NBFCs mostly compete with
each other in such segments.

1 NBFCs in this note refer to NBFCs, which account for ~44% of total managed NBFC credit as
on March 31, 2012, exclude Infrastructure finance companies ( IFCs), Microfinance Companies
(MFIs) and Investment Companies; IFCs and MFIs are covered in a separate ICRA reports as
dynamics for such NBFCs are very different the profile of NBFCs covered in this note.

2 Credit & deposits penetration is based on number of credit & deposits accounts in relation to
total population.

3 Gross Non Performing Asset as % of gross credit

NBFCs have reported a managed advance growth CAGR of 35% in last five years, and as on
March 31, 2012 had a gross NPA3% of 1.56%, net NPAs to net worth of 3.8%, Return on Equity
(ROE) of 16.24%, and a reported capital adequacy at 19.42% (tier 1 capital % of 15.75%). NBFCs
are likely to witness a slowdown in the growth in 2012-13 in light of lower growth in the key

9
segments they operate in; at the same time there may be some build up of delinquencies and a
downward bias in interest margins. Despite this NBFCs are likely to report double digit ROE. Key
performance highlights and outlook are as follows:

Managed retail credit of NBFCs reported a 32% growth during 2011-12. In light of
significant slowdown in Commercial Vehicle (CV), Construction Equipment (CE) and Gold loan
portfolio segments in the current financial year (which put together account for around 56% of total
NBFC retail credit), ICRA expects retail credit for NBFCs to grow by only 17% in 2012-13.

10
1.3) Performance of NBFCs

Non-banking Financial Institutions carry out financing activities but their resources are not directly
obtained from the savers as debt. Instead, these Institutions mobilize the public savings for
rendering other financial services including investment. All such Institutions are financial
intermediaries and
when they lend, they are known as Non-Banking Financial Intermediaries (NBFIs) or Investment
Institutions. Apart from these NBFIs, another part of Indian financial system consists of a large
number of privately owned, decentralized, and relatively small-sized financial intermediaries. Most
work in different, miniscule niches and make the market more broad-based and competitive. While
some of them restrict themselves to fund-based business, many others provide financial services
of
various types. The entities of the former type are termed as "non-bank financial companies
(NBFCs)". The latter types are called "non-bank financial services companies (NBFCs)".
Post 1996, Reserve Bank of India has set in place additional regulatory and supervisory measure
that demand more financial discipline and transparency of decision making on the part of NBFCs.
NBFCs regulations are being reviewed by the RBI from time to time keeping in view the emerging
situations.
Further, one can expect that some areas of co-operation between the Banks and NBFCs may
emerge in the coming era of E-commerce and Internet banking. The RBI regulates NBFCs
engaged in Equipment leasing, hire purchase finance, loan and investment, residuary non-
banking Companies (RNBCs) and the deposit taking Activity of miscellaneous non-banking
Companies (chit funds). With the amendment Of the RBI Act in 1997, it is obligatory for NBFCs to
apply for a certificate of
registration (COR). As at the end of June, 2004, the RBI Received 38,050 applications for
registration. Out of these, the RBI approved 13,671 Applications, including 584 applications of
Companies authorized to accept public Deposits. The supervisory role of the RBI Encompasses
onsite inspection, off-site Monitoring, market intelligence and exception Reports of statutory
auditors.

NBFCs have reported a managed advance growth CAGR of 35% in last five years, and as on
March 31, 2012 had a gross NPA3% of 1.56%, net NPAs to net worth of 3.8%, Return on Equity

11
(ROE) of 16.24%, and a reported capital adequacy at 19.42% (tier 1 capital % of 15.75%). NBFCs
are likely to witness a slowdown in the growth in 2012-13 in light of
lower growth in the key segments they operate in; at the same time there may be some build up of
delinquencies and a downward bias in interest margins. Despite this NBFCs
are likely to report double digit ROE. Key performance highlights and outlook are as follows:
1. Managed retail credit of NBFCs reported a 32% growth during 2011-12. In light of significant
slowdown in Commercial Vehicle (CV), Construction Equipment (CE) and Gold loan portfolio
segments in the current financial year (which put together account for around 56% of total NBFC
retail credit), ICRA expects retail credit for NBFCs to grow by only 17% in 2012-13.
2. As per ICRA estimate, total NBFC retail managed credit ~Rs. 2960 billion as on March 31,
2012, was distributed across commercial vehicles (29% of total), gold loans (17% of total),
mortgage (16% of total), construction equipment (10% of total), cars (15% of total), unsecured
loans (8% of total) and tractor loans (3% of total). This
proportion could undergo some shift because of slowdown in vehicle sales and in gold loans and
continued expected growth in the mortgage segment.
3. As for asset quality, Gross NPA% of the NBFCs is likely to deteriorate from March 31, 2012
levels of 1.56% due to an adverse operating environment. Segments that are likely to witness an
increase in delinquencies are Commercial Vehicle, Construction Equipment, SME lending and
capital market funding.
4. Provisioning coverage for NBFCs is at ~55% and the solvency levels (net NPA as percentage
of net worth) of the sector remains comfortable at 3.8%. However
provisioning coverage may drop to 35%-38% incase RBI were to implement its proposed change
in NPA recognition norms for NBFCs from 180 day to 90 day.
5. NIMs for NBFC as on March 2012 stood at 6.30%, which is lower by around 25 bp
compared to the previous financial year on account of the increase in funding costs. Earnings
profile of NBFCs is largely skewed towards fund based driven operations with income from fee
based activities accounting for only 3.4% of total income or 0.55% of total assets.

12
1.4) Market players in industry

HDFC 445.3
Power Finance Corp. 150.1
Reliance Capital 105.2
IDFC 77.1
Rural Electricity Corp. 67.4
Shree Global 61.5
Shri ram Transport Finance 39.7
Bajaj Fiserv 27.1
India bulls 25.7
Religare Enterprises 24.5
Bajaj Holdings 23.5
M&M Financial 22.6
LIC Housing Finance 20.1
Edelweiss Capital 17.9
KGN Industries 17.1
Shri ram City 15.8
IFCI 15.8
JM Financial 15.8

13
2. COMPANY
OVERVIEW

14
2.1) History of India Info line Gold Loan

It is the company where they are provided different types of products which are helps in
investment in various types investors. They provide mainly gold loan for the people who needs for
money for different purpose.

They are started their work in following years…

1995

Commenced operations as an Equity Research firm

1997

Launched research products of leading Indian companies, key sectors and the economy Client
included leading FIIs, banks and companies.

1999

Launchedwww.indiainfoline.com

2000

Launched online trading through www.5paisa.com Started distribution of life insurance and mutual
fund

2003

Launched proprietary trading platform Trader Terminal for retail customers

2004

Acquired commodities broking license

Launched Portfolio Management Service

2005

Maiden IPO and listed on NSE, BSE

15
2006

Acquired membership of DGCX

Commenced the lending business

2007

Commenced institutional equities business under IIFL

Formed Singapore subsidiary, IIFL (Asia) Pvt. Ltd

2008

Launched IIFL Wealth

Transitioned to insurance broking model

2009

Acquired registration for Housing Finance

SEBI in-principle approval for Mutual Fund

Obtained Venture Capital license

2010

Received in-principle approval for membership of the Singapore Stock Exchange

Received membership of the Colombo Stock Exchange

2011

Launched IIFL Mutual Fund.

16
 IIFL (India Info line group), comprising the holding company, India Infoline Ltd (NSE:
INDIAINFO, BSE: 532636) and its subsidiaries, is one of one of India’s premier providers of
financial services.

IIFL offers advice and an execution platform for the entire range of financial services covering
products ranging from loans, wealth management, asset management, insurance, fixed
deposits, investment banking, equities and derivatives, commodities, Government of India
bonds and other small savings instruments.

It owns and manages the website, www.indiainfoline.com, which is one of India’s leading
online destinations for personal finance, economy, corporate updates and equity and
commodity-related updates.

We have a presence in:

Equities our core offering, gives us a leading market share in both retail and institutional
segments. Over a million retail customers rely on our research, as do leading FIIs and MFs
that invest billions.

Private Wealth Management services cater to over 2500 families who have trusted us with
close to Rs 25,000 crores ($ 5bn) of assets for advice. Investment Banking services are for
corporates looking to raise capital. Our forte is Equity Capital Markets, where we have
executed several marquee transactions. Credit & Finance focuses on secured mortgages and
consumer loans. Our high quality loan book of over Rs. 6,200 corers ($ 1.2bn) is backed by
strong capital adequacy of approximately 20%. IIFL Mutual Fund made an impressive
beginning in FY12, with lowest charge Nifty ETF. Other products include Fixed Maturity Plans.
Life Insurance, Pension and other Financial Products, on open architecture complete our
product suite to help customers build a balanced portfolio.

17
2.2 ) About IIFL

Board of directors
1. MR. Nirmal jain

Chairman, India Infoline Ltd.

Mr. Nirmal Jain is the founder and Chairman of India Infoline Ltd. He is a PGDM
(Post Graduate Diploma in Management) from IIM (Indian Institute of Management)
Ahmedabad, a Chartered Accountant and a rank-holder Cost Accountant. His
professional track record is equally outstanding. He started his career in 1989 with
Hindustan Lever Limited, the Indian arm of Unilever. During his stint with Hindustan
Lever, he handled a variety of responsibilities, including export and trading in agro-
commodities. He contributed immensely towards the rapid and profitable growth of
Hindustan Lever’s commodity export business, which was then the nation’s as well
as the Company’s top priority.

He founded Probity Research and Services Pvt. Ltd. (later re-christened India
Infoline) in 1995; perhaps the first independent equity research Company in India.
His work set new standards for equity research in India. Mr. Jain was one of the first
entrepreneurs in India to seize the internet opportunity, with the launch of
www.indiainfoline.com in 1999. Under his leadership, India Infoline not only steered
through the dotcom bust and one of the worst stock market downtrends but also
grew from strength to strength

2.MR. R. Venkataraman

Mr. R Venkataraman, Co-Promoter and Managing Director of India Infoline Ltd, is a

B.Tech (electronics and electrical communications engineering, IIT Kharagpur) and
an MBA (IIM Bangalore). He joined the India Infoline Board in July 1999. He
previously held senior managerial positions in ICICI Limited, including ICICI
Securities Limited, their investment banking joint venture with J P Morgan of US,
BZW and Taib Capital Corporation Limited. He was also the Assistant Vice President
with G E Capital Services India Limited in their private equity division, possessing a
varied experience of more than 19 years in the financial services sector

18
2.3 ) Performance and development of INDIA INFOLIN

Merger of subsidiary

India Infoline Marketing Services Limited ("IIMSL"), a wholly- owned

subsidiary was merged with the Company with effect from April 1, 2011.

The Scheme of Amalgamation was sanctioned by the Hon''ble High Court of

Judicature at Bombay vide order dated April 27, 2012. Pursuant to the

Scheme, the Authorised Share Capital of the Company increased to Rs. 1200

million. Similarly, Moneyline Credit Limited, step down NBFC subsidiary

was merged with, India Infoline Finance Limited, direct NBFC

subsidiary. This enabled consolidation of all lending and investments

businesses (except housing loans) under one NBFC subsidiary and ensures

better operations and control.

19
2.4 Products Overview :

Equities

IIFL is a member of BSE and NSE registered with NSDL and CDSL as a depository
participant and provides broking services in the cash, derivatives and currency segments,
online and offline. IIFL is a dominant player in the retail as well as institutional segments of
the market. It recently became the first Indian broker to get a membership of the Colombo
Stock Exchange and is also the first Indian broker to have received an in-principle approval
for membership of the Singapore Stock Exchange. IIFL’s Trader Terminal, its proprietary
trading platform, is widely acknowledged as one of the best available for retail investors.
Investors opt for IIFL given its unique combination of superior Service, cutting-edge
proprietary Technology, Advice powered by world-acclaimed research and its unparalleled
Reach owing to its over 2500 business locations across over 500 cities in India.

Credit, finance and gold loan

IIFL offers a wide array of secured loan products. Currently, secured loans (mortgage loans,
margin funding, loans against shares) comprise 94% of the loan book. The Company has
discontinued its unsecured products. It has robust credit processes and collections
mechanism resulting in overall NPAs of less than 1%. The Company has deployed proprietary
loan-processing software to enable stringent credit checks while ensuring fast application
processing. Recently the company has also launched Loans against Gold.no processing fees
in gold loan, simple documents & loan rates 1%,1.5%,and 2%

Insurance

IIFL entered the insurance distribution business in 2000 as ICICI Prudential Life Insurance
Co. Ltd. s corporate agent. Later, it became an Insurance broker in October 2008 in line with
its strategy to have an ‘open architecture’ model. The Company now distributes products of
major insurance companies through its subsidiary India Infoline Insurance Brokers Ltd.

20
Wealth Management Service

IIFL offers private wealth advisory services to high-net-worth individuals (HNI) and corporate
clients under the ‘IIFL Private Wealth’ brand. IIFL Private Wealth is managed by a qualified
team of MBAs from IIMs and premier institutes with relevant industry experience. The team
advises clients across asset classes like sovereign and quasi-sovereign debt, corporate and
collateralised debt, direct equity, ETFs and mutual funds, third party PMS, derivative strategies,
real estate and private equity. It has developed innovative products structured on the fixed
income side.
Customers can choose from a wide bouquet of products from several insurance companies
including Max New York Life Insurance, MetLife, Reliance Life Insurance, Bajaj Allianz Life,
Birla Sun life, Life Insurance Corporation, Kotak Life Insurance and others.

21
2.5 SWOT analysis

S = Strength

 CO. is giving employment around 5000 employees

 Company capacity meets World market requirement
 Strong market presence.
 Develop rural area to reach at global position.

W=Weakness

 IIFL gold entered late in the market

 Irregularity in time management

O=opportunity

 Rapidly and continuous growth in the market, so company will think about expansion.
 Rising population of earning youth.

 Established capabilities across the value chain.

T=threats

 Highly competitive market against gold loan.

 Volatility in Gold prices

 Infrastructure bottlenecks
 Fragmented Industry structure with low transparency

22
PART 2- RESEARCH
WORK

23
3. INTRODUCTION OF THE
STUDY

24
3.1) Background of the study

GOLD LOAN

WHAT IS GOLD LOAN ???

As the name suggests this is the loan given against gold. The provision of finance in gold for
a gold-related project or business, typically in mining or jewelry inventory finance, which provides a
combination of generally inexpensive funding together with built-in hedging. Many nationalized
banks, private banks and other financial companies offer this loan at attractive rates.

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.

Gold loan at IIFL

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 IIFL and they 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.

They at IIFL provide maximum loan against your gold at lowest interest rates. They have a strong
presence Pan-India and have serviced a large number of customers in a very short span. They
offer different types of schemes as per your requirement and convenience .

Following are the main features of our loans :

 Loan amount ranges from min Rs. 5,000 to max Rs. 10,00,000

 Tenor for loans ranges from 3 months to 12 months

 Loan can be paid back on a monthly or quarterly basis

 Interest / Loan Amount due can be paid at any of our Gold Loan branches pan-India

 Minimal amount of paperwork and documentation is required

 Loan gets processed in as low as 5 minutes

 Variety of schemes are available to choose from

25
3.2) Review Of Literature

This topic provides the basis for the present study. Such literature available to the researcher on
the lending practices in Cosmos bank is classified according to the related topics as mentioned
below.

1.

Title:

2nd INTERNATIONAL CONFERENCE ON MANAGEMENT(2nd ICM 2012)

Author:

Ali Ramezani Ghotbabadi (Corresponding Author)

Dr. Rohaizat Baharun and Setareh Feiz

Objective:

In this literature the author try to say and survey about the quality of the product, it is helps
them to know that does customers are satisfied with their product or not? These survey is totally
dependent to know about the customer satisfaction And about the quality of the service which is
provided by them.In addition, managers need to identify weaknesses and consider planning for
improvement in quality, thereby improving efficiency, profitability and overall performance.

Conclusion:

Researchers believe that the service quality theory is based on the literature of customer
satisfaction and product quality (Brady & Cronin, 2001).This information will help managers to
identify problems and make strategic plans in order to improve efficiency, profitability, and overall
performance by high quality.

26
2.

Title: service quality for five dimensions between two meals and different groups of loyalty.

Author: Allan Yen-Lun Su, Ph.D.

Objective:

In this research author wants to study about the quality of the meals which is gives to
the employee are proper or not and is there service is proper or not? If service is proved
customer is proper at that time they must be loyal with the company.

Conclusion:

Correlation analysis will be used to determine the relationship between customers’

perceived service quality and their characteristics such as gender, marital status, age, and reasons
for dining.

3.

Title: Service quality in the banking industry: an assessment in a developing economy

Author:Madhukar G. Angur,
Objective:
This study helps to know about the service quality in banking industry
and Examines the applicability of alternative measures of service quality in the developing
economy of India and assesses related issues in that context. This help to banking sector .
Conclusion:
service quality and suggest that the SERVQUAL scale provides greater diagnostic information
than the SERVPERF scale. However, the five-factor conceptualization of SERVQUAL does not
seem to be totally applicable, and no significant difference was found in the predictive ability of
the two measures

27
4.
Title:SERVICE QUALITY IMPROVEMENT IN THE RETAIL BANKING INDUSTRY

Author:Dr.Chaisomphol Chaoprasert
Objective: Banks offer similar kinds of services, but they could provide differences in terms of
service quality. This paper analyzes past studies regarding service quality improvement in the
retail banking industry. The continuing trend to a model of service quality improvement, from
personnel counter services to electronic services, is demonstrated. Improved service quality
should be adopted to maintain the core competence and this paper contributes knowledge and
background for banks to apply these findings to better shape and focus their positions in the
market and also to provide service quality to customers.

Conclusion: This strategy, to focus on either personnel counter services or electronic services
or both, will be successful if there is commitment from bank management and involvement from all
employees to develop an exact understanding of the customers’ needs. Remember that,
“consumers will seek out those financial products and suppliers which offer the best value for
money and they are educated about it” (Sathye, 1999, p.325). Thus, if a bank is able to position
itself favorably within a specific

28
3.3) Statement of problem

Problem is any hurdle or barrier or area, which requires inquiry. Research Problem is
an issue for which the whole procedure is carried on.

This research is carried to know about Service Quality regarding investment in Gold loan, to
find the percentage of investment done in Gold loan by them, in which scheme of Gold loan
customers invest more and what are the reasons of their investment in Gold loan

29
3.4) Objective of the Study of service quality:

 Identify and study about the person who are made there transection with If.
 Create more awareness about the products which are provided by them.
 To measure the level of service quality at Gold loan department. (On the basis of 5
dimensions)
 To find out the satisfaction level of existing customers.
 To understand why customers preferred the Gold loan in Rajkot city.

30
4. RESEARCH
METHODOLOGY

31
Research in common parlance refers to a search for knowledge. Once can also define research
as a scientific and systematic search for pertinent information on a specific topic. In fact, research
is an art of scientific investigation.Research is an academic activity and as such the term should be
used in a technical sense.

 Research Design

A research design encompasses the methodology and procedures employed to conduct

scientific research.As research the design includes an outline what the researcher will do from
writing hypothesis its operational implication to the final analysis of data.

 Type Of Research :

1.Exploratory Research design:

Exploratory Research design mean to find something new that help us to collect, preliminary
information and research hypothesis consumption.

 Tool of Data Collection :

Questionnaire

In our research we have used questionnaire as a research tool.

32
  Data collection :

Two types of data collection primary and secondary .

Primary data:

Primary data is a term for data collected from a source. Raw data has not been subjected to
processing or any other manipulation, and are also referred to as primary data.
In our research primary data collected from the direct take review from customers.

Secondary data:

Secondary data refer to already published information. Secondary data collected from various
sources magazines, newspapers, internet, government and industry.
In our research secondary data collected from the past history of data of customers.

33
  Data sampling

Research Approach:

I adopted survey approach for this study

Research Tools:
My research is based on structure Questionnaire. I have used open ended and close ended
questions.

Sampling Technique:
Convenience sampling (Non probability)

Sample Plan:
Sample Area : Rajkot City
Sample size : 100 respondents
Sample Method : Convenience Sampling
Design : Descriptive, Exploratory
Scale used : Nominal Scale, Rank order scale

Type of Data Collected:

Primary data sources : Structured Questionnaire (Open and Close ended Que.)
Secondary sources : old data

Source of data:
I personally meet the respondent and collect the information.

34
Analysis and
Interpretation
Of Data

35
GENERAL INFORMATION

Q.1 Gender

80
70
60
50
40
30
20
10
0
male female

Gender

We are research on the Service quality on the IIFL gold loan

And in this study we are survey about male and female. In that there are 75
male and 25 female are given response.

36
Q.2 Yearly income:

60

50

40

30

20

10

0
below 100000 100000to 500000 above 500000

Yearly income

From above graph we can shows income level is in three part.

We can say that mostly people whose income is below 100000 they are prefer more gold
loan for there financial need.

37
Q.3 how you know about IIFl.

word of mouth personnal need past expiriance

30%
36%

34%

Then after we ask them that how they know about this company
Then there 36% people are know because of word of mouth 34% wants it because of
personal need and 30% people are those who have good past experience.

38
Question on dimension of service quality

Reliability:

Q.4 Are they followed such data of customers?

70

60

50

40

30

20

10

0
Yes No

From above graph we shows that how staff members are use such data of customers use in
there record and it shows 67% positive..

39
Q.5 Are statements or receipts free of error?

120

100

80

60

40

20

0
Yes No

Are statements or receipts free of error?

In this there are not any error till the date of survey/

40
 Q.6 Are service provide proper? When you came 1st time

90

80

70

60

50

40

30

20

10

0
Yes No

From the above chart we can say that:

81%people are given replied positive and 19% are not satisfied when they come first time.

41
Q.7 Are you feel that IIFl people are always willing to helps you?

120

100

80

60

40

20

0
Yes No

Are you feel that IIFl people are always wiiling to helps you?

This gives the positive reply. And all the customers are satisfied.

42
Assurance :

Q.8 You feel safe in your transection with IIFL.

100
90
80
70
60
50
40
30
20
10
0
Yes No

You feel safe in your transection with IIFL.

From the above chart we can show that:

86% are fill safe with IIFL

And 14% are not.

43
Q.9 Are they use records of clients confidential?

120

100

80

60

40

20

0
Yes No

All the people are give positive reply.

44
Q.10 Are your gold is secure with IIfl?

120

100

80

60

40

20

0
Yes No

Are your gold is secure with IIfl?

Yes 100%people are safe there gold in IIFL

45
Q.11 Are they able to gain the trust and confidence of the customers?

120

100

80

60

40

20

0
Yes No

Are they able to gain the trust and confidence of the customers?

All the people are give positive reply in this question

46
Tangibles:

Q.12 Are facilities provided in gold loan is reasonable for you?

120

100

80

60

40

20

0
Yes No

We show from the results that all people are satisfied with service provided by the
company.

47
Q.13 Can written forms are easy to understand /fill ?

80

70

60

50

40

30

20

10

0
Yes No

Can writtern formsare easy to understand /fill ?

In this chart there are 72% customers who have only the idea about the forms and
people who don’t they are 28%.

48
Q.14 Does IIFl used Modern technology to collect interest?

70

60

50

40

30

20

10

0
Yes No

There are 63% customer who like to fill that collect interest by using modern technology is
good. And other 37% are use typically collecting method for collect interest.

49
‘Q.15 All staff members are ready to give response their customers?

70

60

50

40

30

20

10

0
Yes No

The 63% customer are fill that staff members are always ready to gives response to their
customer and 37% are are not get proper answer from staff .
50
E-Empathy

Q.16 Are staff members give you proper polite answer?

80

70

60

50

40

30

20

10

0
Yes No

74% people are filling that they give polite response.

And 24% are not.

51
Q.17 Does staff refrain from acting busy or being rude when you ask
questions?

70

60

50

40

30

20

10

0
Yes No

62% are say yes staff are act as a busy and

38% are say no they are not.

52
Q.18 Are you get polite answer in telecommunication also?

70

60

50

40

30

20

10

0
Yes No

65% people are fill that they do

35% are fill that they do not.

53
Q.19 Do staff observe consideration of the property and values of customer?

90

80

70

60

50

40

30

20

10

0
Yes No

85% say yes they are highly valued there customers. and

15% say no they are not .

54
 Q.20 Will you refer anyone for iifl.

80

70

60

50

40

30

20

10

0
Yes No

71% people are fill satisfied with the transaction with them

29% people are not satisfied with the service of them.

55
Responsiveness:

Q.21 When there is a problem, does organization respond to do it quickly?

100

90

80

70

60

50

40

30

20

10

0
Yes No

In this 90% give positive reply

And other 10% are not satisfied.

56
Q.22 Are they remind you about your interest pay date properly?

120

100

80

60

40

20

0
Yes No

In this all the people are give positive review.

57
Q.23 Are they able to solve your quarries faster?

100

90

80

70

60

50

40

30

20

10

0
Yes No

Are they able to solve your quarries faster?

In this 90% people are fill that they are solve it faster.

And 10% are not .

58
Q.24 As customer are you allow to go office and to use the equipment some
emergency situation?

120

100

80

60

40

20

0
Yes No

This is totally positive reply by 100% of people.

59
  Result and finding :

we have basically measure service quality on five criteria:

1.As per as Reliability ;

company consult 86.75% forpositive reply and 13.25% for negative.

2.As per as Assurance ;

company consult 96.5% for posstive reply and 3.5% negative .

3. As per as Tangibility ;

company consult 74.5% for positive reply and 28% negative .

4.As per as Empathy ;

company consult 71.8% positive reply and 28.2% negative.

5.As per as Responsiveness ;

company consult 70% positive reply 30% negative.

60
 Suggestion:
 They need to provide more staff to fulfill customers need.
 According to survey we have decided that company have to do more work on
responsiveness dimension of service quality to increase customer.
 Because in this dimension negative ratio is 30%, which is higher than other.
 People wants safety of their gold so provide more service and safety so they attract and use
gold loan service.

61
  Limitation of the study :

1)Personal Biases:-

Individuals may have personal biases towards particular selection of company whether to
take loan. So they may not give correct information and due to which correct conclusion may not
be derived. we tried hard to remove this mistake in whole research but as human being we can
minimize it but may not be removed totally because it’s all upon a person who gives us data.

2)Time:-

Some time, the people avoid to fills up the questionnaire because of lack of time.
Now a day no one have more time so people avoid to filled questionnaire or may be fast filled
the questionnaire.

62
  Conclusion:

According to the framework of research the first part of this is shows about the service quality and
about the industry and about the company . The result shows that IIFL is provide average service
to the customers. All the five dimension of service quality – reliability, responsive, security, ease of
access and use where accepted by respondent. The average score of all dimension scores
average 3.

The majority of the respondent are scored disagree to strongly agree with service quality
dimension. Among five dimensions , the highest score with reliability

. The second part of this is the study is about the research work at the IIfl on gold
and it is done in the questioner as above. For providing such golden opportunity and experience I
would extremely thankful to all those staff members of INDIA INFOLINE LTD. (IIFL) who have
helped me sincerely and enthusiastically.

63
  Bibliography:

Acemoglu, D. and F. Zilibotti, 1997, Was Prometheus Unbound by Chance? Risk,

Diversification, and Growth, Journal of Political Economy, 105: 709-775.

Crosby Philip, 1979, Quality is free, McGraw-Hill, New York, Volume 17

Works Cited
. Retrieved july 13, 2013, from www.indiainfoline.com: http://www.iiflfinance.com/products/GoldLoan.asps

. Retrieved july 13, 2013, from www.indiainfoline.com: http://indiainfoline.com/ProductsAndServices/

. Retrieved july 15, 2013, from www.indiainfoline.com: http://www.indiainfoline.com/Aboutus/

64
 Annexure

QUESTIONNAIRE

ON

SERVICE QUALITY ON GOLD LOAN

Questionnaire

Q.1: Gender
male female
Q.2: Yearly Income
Below 100000
100000 to 500000
500000 to above
Q.3:How you know about our IIFL Gold loan?
Word of mouth
Personnel need
Past experience
Q.4:Are facilities provided in gold loan is reasonable for you?
YES NO
Q.5:Can written forms are easy to understand/fill ?
YES NO
65
Q.6:IIFl used modern technology to collect interest?
YES NO
Q.7:All staff members are ready to give response their customers?
YES NO
Q.8:Are they followed such data ?
YES NO
Q.9:Are statements or receipts free of error ?
YES NO
Q.10:Are service provide you proper first time to you ?
YES NO
Q.11:Are you feel that IIFl people are always willing to helps you?
YES NO

Q12:When there is a problem, does organization respond to it quickly?

YES NO
Q.13:Are they remind you about your interest pay date properly?
YES NO
Q.14:Are they able to solve your quarries faster?
YES NO
Q.15:As customer are you allow to go office and to use the equipment
some emergency situation?
YES NO
Q.16:You feel safe in your transaction with IIFL.
66
YES NO
Q.17:Are use records of clients confidential?
YES NO
Q.18:Are your gold is secure with IIfl?
YES NO
Q.19:Are able to gain the trust and confidence of the customers?
YES NO
Q.20:Are staff members give you proper polite answer?
YES NO
Q.21:Does staff refrain from acting busy or being rude when you ask
questions?
YES NO
Q.22:Are you get polite answer in tally communication also?
YES NO
Q.23:Do staff observe consideration of the property and values of
customer?
YES NO
Q.24:Will you refer anyone for IIFL.
YES NO

67