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Summer Internship Project Report On 'A study on customer satisfaction

towards gold loan with special respect to Muthoot Fincorp Pvt. Ltd'

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 Summer Internship Project Report
On

‘A study on customer satisfaction towards gold loan with special respect to

Muthoot Fincorp Pvt. Ltd’

Institute Code: 807

Institute Name: Sal institute of Management

Under the Guidance of

Prof. Margi Chokshi (Assistant Professor)

In partial fulfilment of the requirement of the award of the degree of Master

of Business Administration (MBA)

offered by

Gujarat Technological University

Ahmedabad

Prepared by:

Thakar Shivam Pareshkumar

Enrolment No: 208070592053 MBA

(Semester - III)

Month & Year:

Oct 2021

I
 Declaration

I hereby declare that the Summer Internship Project Report titled “A study on
customer satisfaction towards gold loan with special respect to Muthoot Fincorp
Pvt. Ltd” is a result of my own work and my Indebtedness to other work
publications, references, if any, have been duly acknowledged. If I am found guilty of
copying from any other report or published information and showing as my original
work, or extending plagiarism limit, I understand that I shall be liable and punishable
by the university, which may include ‘Fail’ in examination or any other punishment
that university may decide.

Enrollment No. Name Signature

208070592053 Shivam Thakar

Place: Ahmedabad Date:

2
This is to certify that project work embodied in this report entitled “A study on
customer satisfaction towards gold loan with special respect to Muthoot Fincorp
Pvt. Ltd” was carried out by Thakar Shivam Pareshkumar of SAL Institute of
Management & Institute Code: 807

The report is approved / not approved. Comments of External Examiner:

This report is for the partial fulfilment of the requirement of the award of the degree
of Master of Business Administration offered by Gujarat Technological University.

……………………………………….

(Examiner’s Sign)

Name of Examiner:

Institute Name:

Institute Code:

Date:

Place:

3
Plagiarism Report

4
 Date: / /

“This is to certify that this Summer Internship Project Report Titled “A study on
customer satisfaction towards gold loan with special respect to Muthoot Fincorp
Pvt. Ltd” is the Bonafide work of Thakar Shivam Pareshkumar (Enrollment
Number: 208070592053) who has carried out her project under my supervision. I
also certify further, that to the best of my knowledge the work reported herein does
not form part of any other project report or dissertation on the basis of which a degree
or award was conferred on an earlier occasion on this or any other candidate. I have
also checked the plagiarism extent of this report which is 24% and it is below the
prescribed limit of 30%. The separate plagiarism report in the form of html /pdf
file is enclosed with this.

Rating of Project Report [A/B/C/D/E]: …….

(A=Excellent; B=Good; C=Average; D=Poor; E=Worst) (By Faculty Guide)

Signature of the Faculty Guide/s of

Prof. Margi Chokshi

Signature of Principal/Director with Stamp of Institute

Dr. Viral Bhatt

(Director)

5
 PREFACE

This project report has been prepared in fulfilment of the requirement for the Summer
Internship project: “A study on customer satisfaction towards gold loan with
special respect to Muthoot Fincorp Pvt. Ltd” in the academic year 2020-22.

For preparing the project report, we have filled up the questions during the suggested
period, to avail the necessary information. The blend of learning and knowledge
acquired during our practical studies at the company is presented in this project report.

6
 ACKNOWLEDGEMENT

I am extremely thankful to Dr. Viral Bhatt- Principal, Sal Institute of Management for
providing us the great opportunity to learn through SIP Training and he is always
there to solve our difficulties and for providing me the great support.

I am extremely thankful to our project guide Prof. Margi Chokshi for providing us in
depth knowledge and helping us towards successful completion of project. He has
always welcomed our queries and solved it nicely. Without her help and guidance, it
is difficult for me to complete the project.

Last but not the least I would like to thank my all friends who have given me the
guidance for the further development and enrichment of my project.

With Thanks,

Shivam Thakar Date:

7
 TABLE OF CONTENT

Chapter Particular

No.

1 Introduction of Gold Industry

1.1 Introduction of Gold Investment

1.1.1 How to Get a Gold Loan in India?

1.1.2 How Does a Gold Loan Work?

1.1.3 Why Are Indians Exploring Options to Take

Gold Loans?

1.1.4 Future of Gold Loans in India

1.1.5 Current Scenario:

1.1.6 Porter’s five forces model

1.2 Introduction of Company

1.2.1 Founder of Muthoot Group

1.2.2 Board of Directors of Muthoot Fincorp Pvt. Ltd.

1.2.3 History of Muthoot Fincorp Pvt. Ltd.

1.2.4 Where they stand Today?

1.2.5 Muthoot Fincorp Pvt. Ltd.’s Goal

1.2.6 Products and Services provided by Muthoot

Fincorp Pvt. Ltd.

1.2.7 Gold Loan in Muthoot Fincorp Pvt. Ltd.

1.2.8 Gold Loan Process

1.2.9 Features provided by Muthoot Fincorp Pvt. Ltd.

1.2.10 Gold Loan Scheme

1.2.11 EMI Gold Loan Scheme of Muthoot Fincorp

Pvt. Ltd.

8
 1.2.12 SWOT Analysis

1.3 Conceptual Framework

1.3.1 Importance of Study

1.3.2 Pros of Taking a Gold Loan

1.3.3 Cons of Taking a Gold Loan

1.3.4 Research Questions

2 Literature Review

3 Research Methodology

3.1 Research Objective

3.2 Research Design

3.3 Objective of the Study

3.4 Collection of data

3.5 Data Analysis Tools

3.6 Limitations of the study

4 Data Analysis and Interpretation

4.1 Demographical Analysis

4.2 Statistical Analysis

5 Findings

6 Suggestions

6.1 Suggestion

7 Conclusion

7.1 Conclusion

7.2 Learning from SIP

8 Bibliography

9 Questionnaire

9
 Chapter 1
Introduction of Gold Industry

10
 1.1 Introduction of Gold Investment
Gold prices touching record highs through the month of July has got many
wonderings how they can make use of their physical gold.

India is the world’s second largest consumer of gold, as citizens attach significant
cultural value to gold coins, bars and jewellery held and gifted. In fact, in an interview
with Indian financial daily The Financial Express last November, the managing
director of World Gold Council had revealed that Indian households have
accumulated up to 25,000 tonnes of gold.

Many consumers who hold gold in reserve are considering gold loans as an option to
meet their credit requirements, and Indian financial entities have a host of options on
offer. Gold loan companies and banks have reported a surge in demand for gold loans
in the last three months since the coronavirus pandemic hit.

11
 1.1.1. How to get a Gold Loan in India?

To avail a gold loan, customers have three options:

1) Visit a Bank Branch to Get Your Gold Evaluated

Customers can visit the nearest gold loan branch with their jewellery as well as gold
bars or coins that they wish to pledge, along with basic Know Your Customer (KYC)
documents to attest their identity and residential address. The bank then measures
your jewellery’s worth and proposes a price for the gold loan, typically at an interest
rate ranging from 7.50% to up to 12%.

2) Request for Door-step Evaluation of Your Gold

Customers can request for door-step gold loan facilities offered by banks and some
non-banking financial companies (NBFCs). When customers opt for this service, the
financial entity sends a company executive to visit their home to evaluate their gold
jewellery on the spot and decide and agree upon a credit amount, which is then
transferred to the customer’s account.

To ensure security, always verify the credentials of the company executives who are
scheduled for visit in advance.

3) Apply for a Gold Loan Digitally

Customers can also apply for a gold loan via the digital route, where the bank or the
NBFC helps them choose loan offers from their website or app-based digital service.
Customers compare interest rates and choose the best available option for them. The
financial institution then verifies the customer by the help of their Aadhaar card
details and by conducting a video-based KYC process.

When the customer decides to part with the decided gold jewellery or bars by
pledging it against the gold loan disbursal decided by the financial entity, they receive
a receipt, also called a pawn ticket, which lists out the full details about the pledged
ornaments (including weight, karatage, pictures among others details).

12
From this point onward, the financial entity ensures secure storage of the gold handed
over until the gold is not taken back by the customer upon repayment of the loan. If
the customer fails to repay the loan capital, the lender holds the right to keep the loan
with themselves and auction it to retrieve the investment. To avoid such a situation,
customers are requested to repay timely and in adverse conditions, renegotiate the
loan repayment clause.

13
 1.1.2. How Does a Gold Loan Work?

The lender evaluates the pledged jewellery in terms of purity and weight and verifies
the jewellery ownership and identity documents submitted before offering a loan
amount, also known as the LTV (loan to value).

A credit limit, similar to a bank overdraft account, is sanctioned up to a limit of 75%

of the market value of the pledged gold ornaments. This LTV is capped by the Indian
banking regulator Reserve Bank of India. This amount can be withdrawn by the
customer whenever required. On repayment of the loan, the customer has the option
to repledge the same gold for future loans.

Customers do not need to repay the loan via a monthly installment amount. They
enjoy the choice of instead making bullet repayments, which refer to a lump sum
payment made for the entirety of an outstanding loan amount, usually at maturity.

On maturity, the customer has the option to repay the outstanding and close the
account or extend the tenure by repledging the jewellery at the current LTV.

There exists no limit on how many times a customer can repledge their gold, which
means the loan can be rolled over for as long as needed.

Some banks and NBFCs also allow partial payments and early repayments without
any penalties. In this way, a gold loan functions like an overdraft facility for the retail
customers.

14
 1.1.3 Why Are Indians Exploring Options to Take Gold
Loans?

A gold loan is a quick way to raise money to meet urgent needs and is also considered
an attractive option due to its inherently lower risk compared to other forms of loans.

Traditionally when the economy comes to a halt, and when the working capital cycle
in the unorganised sector is disrupted, demand for gold loans also dries up. But the
coronavirus outbreak has pushed this demand higher owing to most banks and NBFCs
becoming risk averse, explains VP Nandakumar, the Managing Director & CEO of
Manappuram Finance Ltd.

“With borrowers being denied access to their regular channels of credit, gold loans
have become the default option, especially for meeting essential personal needs,” says
Nandakumar.

Muthoot Finance, a gold loan company with 98% of their assets under management as
gold loans, has been receiving gold loan requests from traders, shopkeepers and small
business owners to restart their businesses after lockdowns, considering formal credit
from banks may take time.

George Alexander Muthoot, the Managing Director of Muthoot Finance, has seen
small-business owners using gold loans as short-term working capital – “Gold loans
act as bridge financing, since small companies have not received payments during the
lockdown and fresh credit sanction from banks will take time.”

Gold loans have also become the option for borrowers denied access to personal loans
from regular channels for meeting their financial commitments in the wake of job
losses or wage cuts due to the coronavirus pandemic, explains Muthoot.

15
 1.1.4 Future of Gold Loans in India

The organised gold loan industry is estimated at about INR 3.5 trillion, or about 7% of
the total size of the personal loan industry—estimated at over INR 25 trillion.

All big banks in India including the state-owned State Bank of India, plus India’s
largest private banks HDFC Bank, ICICI Bank and Axis Bank, among others, are
competing to offer lower interest rates and processing fees to lure customers.

Among popular gold loan NBFCs are Manappuram Finance, Muthoot Finance and
IIFL among other that are offering gold loans.

In the short-term, Manappuram Finance has seen growth in gold loans from customers
who are taking advantage of the higher LTV propelled by the sharp rise in gold price
to borrow more against their existing pledges.

“We expect that once people get the sense that high prices of gold are here to stay for
some more time, the impetus to sell their gold will ebb,” says Nandakumar. He
envisages a 10 to 15 percent growth in the company’s gold loans portfolio in the
coming months.

Muthoot Finance is banking upon traders, shopkeepers and small-business owners to

take up gold loans actively to meet working capital requirements to kick-start their
businesses, as many do not have sufficient collateral to provide against bank loans.

If you’re hoping to put your idle gold to good use, gold loans could be a financial
product to research. In the case of gold loans, borrowers need to thoroughly
understand the conditions of their loan terms to ensure all that is glittering is indeed
gold.

Source:

(forbes, n.d.)

16
 1.1.5 Current Scenario:
In India, due to Covid-19 people feel more unsecure about their financial
condition. Nowadays we have no idea about uncertain health issues. Now
all are not much interested in money investment or much expenses. They
are now giving first priority to health and then enjoying life because there
is no idea about future what will be happen in future with their life. So,
they are now taking loans on the basis of Gold because Gold is the thing
which is mostly people having in their home and Gold is useless until
some function arrived and Indian people’s main thinking is Gold is the
thing which is carry by them so they can use Gold in their bad time. If
there is any crisis happened in people’s life, they are giving first priority to
their health and they are put gold to bank and borrow money when they
needed.

17
 1.1.6 Porter’s five forces model

The Five Forces model is named after Harvard Business School

professor, Michael E. Porter. Porter’s model can be applied in any segment of
economy to understand the competition in industry or market. The model was
published in Michael E. Porter's book, "Competitive Strategy: Techniques for
Analysing Industries and Competitors" in 1980.

• Threat of new entrants:

Muthoot Fincorp is providing best gold loan facilities and they are well
set in their field but there are many banks are coming in the gold loan

18
 market and they are also giving low interest rate on gold loan and there
is also fear about will their services maintained the customer’s
satisfaction! If they are not satisfied their customer then they will
change their bank and join another bank and Muthoot Fincorp will lose
their customer.

• Bargaining power of Suppliers:

Bargaining power of suppliers in Consumer Financial Services – If
suppliers have strong bargaining power, then they will extract higher
price from the Muthoot Fincorp. It will impact the potential of Muthoot
Fincorp to maintain above average profits in Consumer Fincorp
Services industry.

• Bargaining power of Buyers:

Bargaining power of buyers of Muthoot Fincorp and Financial sector.
If the buyers have strong bargaining power, then they usually tend to
drive price down thus limiting the potential of the Muthoot Fincorp to
earn profits.

• Competitive Rivalry:
There are many banks are providing low-rate loan on gold with many
facilities. Example: IIFL, DCB, SBI, Shriram City, Manappuram
finance Ltd. are the competitor of Muthoot Fincorp. For standing in the
market Muthoot have to give various facilities or new scheme and
make customer base stronger than competitors.

• Threat of Substitute:
Threat of substitute products and services in Consumer Financial
Services sector – If the threat of substitute is high then Muthoot

19
Fincorp has to either continuously invest into R&D or it risks losing
out to disruptors in the industry.

20
 CHAPTER 1.2
INTRODUCTION OF COMPANY

DATE OF ESTABLISHMENT 19th March 2002

CIN U65929KL1997PLC011518

REGISTERED ADDRESS Muthoot Centre,

TC No 14/2074-7

Punnen Road

Trivandrum

Thiruvananthapuram - 695039

Kerala – India

TAG LINE “JAB ZINDAGI BADALNI HO!”

21
 1.2.1 Founder of Muthoot Group

Muthoot Pappachan was a simple and devout man,

who espoused a nine-point formula that stood by him in realizing his goals. Love.
Peace. Happiness. Kindness. Helpfulness. Patience. Pleasantness. Faithfulness and
Self-control. These ethics have been a guiding light to the path of his successors and
have permeated to every strata of the Muthoot Pappachan Group. These values still
govern every decision in the Group. When asked for his formula to success, he
quipped, “unflinching faith in the Almighty and unshakeable determination to face
and overcome challenges.” In dire circumstances and sometimes in the face of loss, he
was heard to quote that a debit on earth will be a credit in heaven. A man, known to
adhere to his word, he instilled these values throughout the organization he nurtured.

In the year 1887, Muthoot Ninan Mathai, patron

founder of our group, started in a humble way as a retail and whole-sale trader of
grains at Kozhencherry, Kerala. These wholesale goods were mainly supplied to the
large estates owned by British Companies. Subsequently, understanding the unmet
saving needs of the estate workers, Mr. Ninan Mathai, started the Chit Funds business

22
with philanthropic motive, as an avenue for saving. Functioning out of a single office
in Kozhencherry, Muthoot Ninan Mathai entered the gold loan business in the 1950’s.
He soon went on to become the largest player in Chits & Gold Loans. Soon
Kozhencherry became a known name where people across Kerala came to for gold
loan & chits.

23
1.2.2 Board of Directors of Muthoot Fincorp Pvt. Ltd.

Sources:

(Muthoot Fincorp, 2019-20)

24
 1.2.3 History of Muthoot Fincorp Pvt. Ltd.

We take our name, Muthoot, from our family, which is a branch of a traditional
Orthodox Christian family, based in Kozhencherry, a small town in the erstwhile
primary state of Travancore. (Kerala). In the year 1887, Muthoot Ninan Mathai
(Patron Founder of the group), started as a retail and wholesale trader of grains at
Kozhencherry. The wholesale goods were supplied to the large Estates owned by
British Companies. Later, understanding the needs of the estates’ workers and at the
request of the British owners, who appreciated the values & principles of Mr. Ninan
Mathai, he started a form of Chit Fund. The aim was to provide self-less service for
the workers, who were not able to manage their cash and would tend to lose and/or
misspend the same. Giving the workers an avenue for saving, provide for exigencies
and also secure their tomorrow, started as a simple solution to the need at that point in
time, soon gained momentum and spread across. The business grew slowly but
steadily along with its share of ups and downs. Functioning out of a single office in
Kozhencherry, Muthoot Ninan Mathai entered the gold loan business in the 1950s. He
soon went on to become the largest player in Chits & Gold Loans. Even today, people
from across the state are happy to come to Kozhencherry for gold loans & chits. The
Late Muthoot Ninan Mathai had four sons, Ninan Mathew, M. George, M. Mathew
and Mathew M. Thomas (Muthoot Pappachan) who were involved in the business
from their childhood and later took over the family business. In the late 1980s, the
business was most amicably split four ways and Shri Muthoot Pappachan founded the
Muthoot Pappachan Group.

Over the years, the Muthoot Pappachan Group has grown to become a significant
entity in the Indian business landscape. “A journey of a thousand miles begins with
a single step”. True to this adage, the group which planted its roots in retail trading,
later diversified and made its mark, into various sectors including Financial Services,
Hospitality, Automotive, Realty, IT Services, Healthcare, Precious Metals, and
Alternate Energy.

25
 1.2.4 Where they stand Today?

Currently Muthoot Blue has over 26,000 employees, serving around 5 million
customers through its 4,200+ branches, other offices and team on the ground, across
the country. Our extreme customer-centric approach and innovation in terms of new
products that cater to changing customer needs, have helped in winning the loyalty of
innumerable customers, as well as in attracting new ones. Adopting the latest
technology and new ways to serve customers, without compromising on basic
principles and ethics we have been following since our inception, is what drives the
Group.

26
 1.2.5 Muthoot Fincorp Pvt. Ltd.’s Goal

Our Values

We will do everything to gain and maintain the Trust of all the stakeholders and will
not do anything to lose their trust.

Our Mission

To provide timely small credit to millions of ordinary people, and also provide them
with simple options to save their hard earnings.

Our Vision

To be the most trusted financial service provider, at the doorstep of the common man,
satisfying him immediately with easy and simple products.

27
1.2.6 Products and Services provided by Muthoot Fincorp
Pvt. Ltd.

Gold Loan

Wealth Small
Management Business
Service Loan

Product
Micro
Finance and Home Loan

Services
Money
Auto Loan
Transfer

Forex

28
 1.2.7 Gold Loan in Muthoot Fincorp Pvt. Ltd.

Gold Loan offered by Muthoot FinCorp is just perfect for raising short-term working
capital or to meet your emergency financial needs, in just a few minutes at any of its
3600+ branches across the country. Muthoot FinCorp offers competitive LTV and
interest rates and industry first 24×7 SMS based Gold Loans top-up facility to transfer
money to customer’s bank account, anytime. Muthoot Gold Loans have unique &
customer-centric features such as cash-backs on regular on-time payment, digital
payments and on-time loan-tenure completion which make them India’s Most
Rewarding loan against gold.

29
 1.2.8 Gold Loan Process

• Visit:
Walk into your nearest Muthoot FinCorp branch for the most
rewarding Gold Loan.

• Pledge:
Get your Gold appraised and pledged with a positive and pleasant
experience.

• Instant Cash:
Your loan gets processed and you walk out with an instant cash.

30
1.2.9 Features provided by Muthoot Fincorp Pvt. Ltd.

• Easy to get:
They sanction your gold loans quickly and without any problems or a
credit score. Walk into any one of 3600+ branches across India and get
loan against gold instantly. They will calculate the value of the gold
(purity check) right in front of you and with a simple process, within a
few minutes, they will sanction the loan for you.

• Minimum Paperwork:
Very few documents are required for loan against gold approval. When
you visit one of Muthoot Fincorp branches, just carry your ID papers.
There is no need to get a guarantor when going for a gold loan. The
liability or risk involved is limited to the gold you put up as collateral.
They share the certificates of gold value at the time of deposit.

• Attractive Rate of Interest:

They offer you loan against gold at very attractive interest rate starting
at just 12% pa. And, provide maximum permissible value for your
ornaments pledged depending upon the gold finance scheme you
choose. You get minimum processing fees ranging from Rs. 12 to Rs.
20, along with quick sanctioning and disbursal of loan is possible with
minimum documentation and KYC procedures.

• They Keep Your Gold Safe & Insured:

Your gold is kept in lockers within Strong Rooms at the branch. They
use world-class surveillance and safety standards. Your Gold kept with
bank is also insured for its market value. A loan against gold from
Muthoot Fincorp has triple-advantages -You get a loan against your
gold; your gold is safe & insured and you can top-up your existing
loans, anytime, from anywhere.(with the 24/7 facility).

31
• Flexible Repayment and Tenures:

They have both Bullet and EMI schemes. Bullet schemes give you the
freedom to repay any amounts at any time during the loan tenure; you
can even choose to make repay the principal amount and interest in
multiple instalments as per your convenience it gives the facility to
repay monthly interest and repay the balance principal amount at
closure. It also gives facility for part payments and part withdrawal by
paying required amount. They have different variants of bullet schemes
designed in line with cash cycles & needs of different customer
segments and you can choose most appropriate one suiting yours. Our
EMI based Smart Gold Loans provide options of repaying in structured
equated monthly instalments and provide longer loan tenures.

32
 1.2.10 Gold Loan Scheme

Gold Loan LTV (Loan to Unique Muthoot Base Interest Per

Schemes Value) / Loan Blue Benefits Annum
Amount Min.
Southern Rest of
Max. / Tenure /
branches India
Processing Fee
(inclusive of
GST except for
Prepaid
Scheme) etc.
Muthoot Blue Loan Value: Up ✓ Good Credit 12% to 12% to
Guide Gold to Rs. 99,999 Behaviour 23% * 24% *
Loan Processing Fee: Discount ✓ Loan
Rs.12 to Rs.20
Tenure Completion
Tenure: Up to 6
Reward ✓ Digital
Months
Payment
Reward ✓ Rewards
– EMI Schemes
(Download Full –
PDF)
Muthoot Blue Loan Value: ✓ Good Credit 12% to 12% to
Bright Gold From Rs. 1 Lakh Behaviour 23% * 24% *
Loan to Rs. 2.99 Lakh Discount ✓ Loan
Processing Fee:
Tenure Completion
Rs.20/- inclusive
Reward ✓ Digital
of GST or 0.25%
Payment
of the Loan
Reward ✓ Rewards
amount Subject
– EMI Schemes
to Maximum of
(Download Full –
Rs.500/-
PDF)
Tenure: Up to 6

33
 Months
Muthoot Blue Loan Value: ✓ Good Credit 17% to *17%
Power Gold From Rs. 3 Lakh Behaviour 19% to 19%
Loan to Rs. 4.99 Lakh Discount ✓ Loan *
Processing Fee:
Tenure Completion
0.25% of the
Reward ✓ Digital
Loan amount
Payment
Subject to
Reward ✓ Rewards
Maximum of
– EMI Schemes
Rs.1200/
(Download Full –
Tenure: Up to 6
PDF)
Months
Muthoot Blue Loan Value: No ✓ Good Credit 15% to 15% to
Smart Gold cap Behaviour 22% * 22% *
Loan Processing Fee: Discount ✓ Loan
Rs.50/- inclusive
Tenure Completion
of GST & free
Reward ✓ Digital
registration for
Payment
NACH
Reward ✓ Rewards
Minimum
– EMI Schemes
Tenure: 3
(Download Full –
Months
PDF)
Maximum
Tenure: 36
Months* (36
Months tenure
applicable from
Rs.5 Lacs
onwards)
24X7 Express Loan Processing ✓ Good Credit N/A N/A
Fee: 0
Gold Loan Behaviour
processing
fees for the Discount ✓ Loan
first 5
disbursals Tenure Completion

34
via SMS Reward ✓ Digital
Minimum
Tenure: Payment
NA Reward ✓ Rewards
Maximum
Tenure: – EMI Schemes
NA (Download Full –
PDF)

35
1.2.11 EMI Gold Loan Scheme of Muthoot Fincorp Pvt. Ltd.

All data collected from official web site of Muthoot Fincorp Pvt. Ltd.

Sources:
(Muthoot Fincorp, n.d.)

36
 1.2.12 SWOT Analysis

SWOT stand for Strength, Weaknesses, Opportunities and Threat of

industry or company. It helps to identify these four (4) points of the
company and help to assess organization’s position before decide on
any new strategy.

SWOT analysis in Muthoot Fincorp Pvt. Ltd.

STRENGTHS:
▪ Muthoot fincorp’s strength is their Muthoot group which is
very famous in gold loan area from the very long time and their

37
 experience in this industry help Muthoot Fincorp to make base
clear because customer’s faith in Muthoot is high. They are
providing best interest rate with minimum paper work and their
services satisfied customer.
▪ Diversified product profile of the MPG group.
▪ Healthy asset quality in the gold loan segment to support
overall group asset quality
▪ Improving earnings profile for gold loan business

WEAKNESSES:
▪ Muthoot Fincorp is settled in this field but nowadays many
banks are coming with the various facilities and low interest
rate so customers are sometime change their preference to other
bank. Muthoot Fincorp have to stay in the market with low
interest rate and with profit also.
▪ Geographical concentration in portfolio
▪ Potential challenges associated with non-gold loan segments

OPPORTUNITIES:

• Nowadays people are taking gold loan more and more and the
market in gold loan is being large day by day. Muthoot Fincorp
have to take the opportunity of collect as possible as customer
through the market. They have to make their policy easy and
simple so rural area can also cover by them and they make their
branches in every corner of India.

38
THREATS:
• Many new banks are jump in this industry. Big threat is that
new comers in this industry will give tough competition to
them and customers are divided or transfer to other bank
because if new comers will give some extra benefit or services
better than Muthoot Fincorp, they will lose customer. So new
entrants are the biggest threat of company.

39
 1.3 Conceptual Framework

• Easy Documentation
Satisfaction • Faster Process
towards • Affordable
Gold Loan • Time Convenient
• Safety
• Trustworthy

40
 1.3.1 Importance of Study

This study is done for knowing the correlation between the satisfaction level of
consumer who are the customer of Muthoot Fincorp Pvt. Ltd. who taken the Gold
Loan and the services provided by bank and their staff member’s behaviour. This is
also indicated that how services provided by bank is directly related with the
satisfaction level of consumer and this is helpful to bank also that in which services or
in which area bank need improvement to satisfy their customer. More satisfied
customer will help bank to consume more customer. Right now there are many loans
available in the market like Car Loan, Housing Loan, Education loan Business loan
for start-ups and etc. but I want to know about Gold loan. Because in India people are
more attached with gold and in gold loan they are put their gold in bank and borrowed
money from bank at that time they are in need of good services and trustworthy bank
also and Muthoot is well established in this industry from last long time and I want to
study on one of Muthoot part and that’s why I preferred Muthoot Fincorp.

41
 1.3.2 Pros of Taking a Gold Loan

• Existing Asset Can Be Used

When taking a gold loan, borrowers can pledge the jewellery and gold bars or coins
that they already own. This means the customer enjoys the benefit of possessing the
jewellery and taking a loan on it whenever they want. This jewellery is returned to the
customer securely once the loan repayment is complete, or it can be reused.

• Repledging

There is no limit on the number of times the same piece of jewellery or gold coins or
bars can be pledged. This helps customers take loans repeatedly on the same asset.
This feature is unique to gold loans, as compared to personal loans, where loans are
disbursed based on the customer’s capacity to repay the loan. Also with personal
loans, a repeat loan from the same banking entity completely depends on the
customer’s ability to repay at that point.

• Bullet Payments

The biggest advantage of a gold loan is the flexibility to repay the loan principal and
interest as a lump sum amount instead of the popular way to repay other forms of
loans—equated monthly instalments, or EMIs.

This feature encourages small-business owners and traders, who face temporary cash
crunch situations, to take gold loans as opposed to other loan options where monthly
EMIs could burden borrowers from the very next month of the loan approval.

42
 1.3.4 Cons of Taking a Gold Loan

• Lower LTV

When taking a gold loan, the banking entity decides the amount of loan to be
disbursed based on the current market value of the gold pledged. This loan to value,
or LTV, amount is different for different financiers, and the full value of the gold may
not be realised. Customers, hence, may end up receiving lower LTV on gold pledged.

• Priced Gold Asset Could Be Lost

If a customer fails to repay the dues, lenders have the right to liquidate the jewellery
or the gold asset pledged for the loan. When a customer is unable to meet the loan
obligation, they can approach the lender to extend the tenure of the payment to defer a
possible auction of the gold pledged. This extension may attract a penalty, which the
customers are expected to honour.

This is the biggest disadvantage of a gold loan in cases where the gold jewellery
pledged has more than just the value of the asset but also sentimental value. Jewellery
passed on from one generation to another may also possess antique value, which
could price the asset higher than the value of the loan disbursed.

• Credit Score Can Get Dented Upon Default

A customer does not need to worry about their credit score when taking a gold loan,
but in the case of not being able to honour the loan repayment obligation, your credit
score could be affected—as a default would result in a downgrade. Gold loan
companies are particular about alerting credit score companies on their defaulters, and
this downgrade could diminish a customer’s chance of getting other forms of loans.

1.3.5 Research question:

‘A study on customer satisfaction towards gold loan with special respect to Muthoot
Fincorp Pvt. Ltd’

43
 Chapter 2
Literature Review

44
(Kannan. V. Unnithan, February 2017) The present study about gold loan procedures
of Urban Cooperative Banks is good. Firstly, the various tests used to follow and
facilitate the good guidelines of Urban Cooperative Banks. Secondly, to discuss the
details of gold and gold ornaments loan sub rules. Thirdly, to list out loan for
purchasing gold ornaments. Finally discuss the details about gold ornament overdraft.
There are several Cooperative Societies compete the Urban Cooperative Banks. The
Local Gold Loan institutions also contest the Urban Cooperative Banks. Different
procedures of gold loan to be helpful the banking employees of Urban Cooperative
Banks that guideline will be good for performing gold loan. It concludes with an
outline of vital area from the literature.

(Das*, October,2019) Gold is one of the very important assets among the entire assets
class. In India gold also holds sentimental or social values. Since ancient times, it is
used as a collateral asset against borrowing the money. Previously gold loan business
was mainly controlled by unorganized players. Now days organized gold loan
business is one of the emerging lending business segments for Non-Banking Financial
Companies (NBFCs) and Banks in India. Organized sector registers record growth in
last decade. Recently various regulations have changed by Reserve Bank of India
(RBI) and other external factors negatively impacted the business growth and
financial performance of this segment. The study is descriptive and analytical in
nature. A non-banking financial company is one that does activities based on loans
and advance, share, securities, bonds, debentures, stocks, etc. and which is registered
under the Companies Act of 1956. Every organisation makes profits and losses. So,
there is a need to be continued and loss making needs to be discontinued. So, there is
a need to identify what are the causes that enable profit making and what causes lead
to loss making and remedial measures which can be taken to overcome the losses.
Hence in the study titled. “An empirical study on comparative financial evaluation
between Mannapuram Finance Limited and Muthoot Finance Limited.” a comparison
has been done between the two Non-Banking Financial Companies. The study has
been taken the past 5 years financial statements of the two various statistical
techniques have been used to find out the true financial position. Analysis, evaluate
the position of the two non-banking financial companies and to study the
recommendations of Mannapuram and Muthoot finance to move ahead from the

45
banking sector. The study gives the findings and suggestions based on the financial
evaluation between the two leading Non-Banking Financial Companies.

(George, 09 May 2015) Discernible growth of gold loan NBFCs recorded mainly on
the backdrop of appreciation in gold price affirming the indicators of financial
soundness such as capital adequacy ratio, Non-Performing Asset (NPA) and share of
borrowing in the total asset of bank that are contained well within the limit specified
by RBI. Rules and regulations on gold loan NBFCs and concomitant decline in gold
price have led to the saturation of growth of NBFCs. In short, the sharp correction of
gold price would have a devastating effect not just on gold loan NBFCs but also on
the entire financial market.

(Tripathi, A Critical Study of Consumer Satisfaction Toward Gold Loan Scheme by

Muthoot Finance in India, 2008) It has been found that Indian family is keeping gold
with them. However, in past, these families were not taking gold loans frequently.
Now the financial institutions have promoted gold loans aggressively. The result of
the same is absorbed in current research where most of the coasters are taking a gold
loan and there also re-educated gold loan in future. The scenario has changed because
now people are thinking that a gold loan is one of the most accusable and comfortable
loans. The research is carried out to identify the awareness and satisfaction level of
the gold loan regarding by Muthoot finance bank. The research is based on secondary
data. The study focused on the awareness and satisfaction level of the customers.

(Nishanth) This study makes an understanding of marketing strategies adopted and

executed by the Muthoot Finance. The exploration of the study helped us in knowing
the key strategies of Muthoot Finance like analysis of marketing strategy, gold loan
strategies, branding strategy and how these strategies are impacting on the business
performance of the organization.

46
(Sibi, September - 2014) This paper covers the gold loan protection practices among
borrowers in financial institutions. The aim of this paper is to collect the borrowers’
opinion towards protection practices followed by Banks and NBFCs. The aim was
achieved through a descriptive study involving a survey. The dataset from the sample
underwent series of statistical analysis, i.e., correlation analysis and one way
ANOVA. Loan against gold is traditionally considered taboo especially in Indian
households. Even when gold is pledged, it is still done as the last resort.

(DEEPTI SHASTRI GUPTA, A STUDY OF PERFORMANCE ANALYSIS OF

GOLD LOAN NBFCS BASED ON CAMELS MODEL, Dec.2020) Industry 4.0 has
also shown a major influence on the contemporary industrial economy. Moreover, in
the coming years, the potential effect of I-4 will become immense, since virtually all
industry and business sectors are making all their effort to use industry 4.0 's
strength.It is acknowledged that India is the world's biggest importer of gold. Indians
are highly intrigued and have heavy feelings about gold. As a result, there has also
been good growth over the past few years in the gold loan industry. Looking to the
India’s economic growth and financial inclusion perspective, gold lending NBFCs
have, on the one hand, made a major contribution by monetising the country's idle
gold supply and on the other hand, the NBFCs gold loan meets the customer funding
needs particularly of rural and unbanked communities of India. The vigorous growth
and hostility of these gold loans by NBFCs in penetrating the potential gold loan
market demanded a performance analysis of these Gold Loan NBFCs. The two giant
gold loans NBFCs Manappuram Finance Ltd. and Muthoot Finance Ltd have been
considered to analyse the financial performance based on elaborate and pertinent
ratios using CAMELS model. The present study found that, Muthoot Finance Ltd
scores better than Manappuram Finance Ltd in terms of Earnings Ratios; both the
companies have near similar Capital Adequacy Ratio; in terms of Net NPA Ratio,
Manappuram Finance Ltd scores better than Muthoot Liquid Assets Ratio and Debt to
Equity Ratio.

(Prakash**) Gold loan is currently an emerging trend which is seen in the cities as it
is available at much cheaper rate of interest and with simplicity of getting it than the

47
other financing options. So, this research work is focussing on the determinant factors
of the gold loan market in Indore city. It draws attention to the important factors of
gold loan, which includes the brand name, customer service, financial factors, etc.
The study infers that people of Indore city are very focussed on the type of lending
institution, the interest rate charged on the loan taken, gold rate prevailing in the
market, simplicity of procedures, etc.

(S.Ananth) The article undertakes a comprehensive analysis of different facets of the

gold loan business as it operates at the everyday level in Andhra Pradesh. It highlights
various business practices, business culture, risks and impact of the gold loan
business. We proffer that the rise of gold loan business in Andhra Pradesh is
concurrent to the exit of the Microfinance institutions (MFIs) in AP after the crisis in
2010. The business raises similar issues that led to the MFI crisis which include issues
related to transparency, consumer protection and information asymmetry. In the paper
it is argued that due to complacency, companies often overlook the risks. Though gold
loans are perceived as a ‘risk free’ business, we argue that the profile of borrowers,
the elastic business practices, the underlying volatility of the commodity and the fact
that gold is an asset that does not generate any income makes the business as risky as
any other business that entails lending money. The essence of the business is one that
is a corporatized version of pawn broking whose profitability is dependent on
geographic expansion rather than improving margins.

(Pooja Kayasth1, May –June 2021) The study's aim is to learn about how people feel
about gold loans. In addition, factors impacting gold acquisition and gold loan
acquisition were investigated. To learn about people's attitudes toward gold loans in
the Bardoli area. To get the results of my research study about "To study the people's
perception towards gold loans finance with the reference of Bardoli region," I used a
descriptive research design and a primary data collection method to achieve the
study's goal. A total of 161 people were surveyed for this study. Data was collected
for this study from a questionnaire completed by residents of the Bardoli region.
Following the data collection via questionnaire, I need to know what people's
perceptions on gold loans are. The public opinion of gold loans is that they are

48
preferable to personal loans. The vast majority of people borrow gold from banks
rather than NBFCs. People choose simple instalment as a mode of payment for gold
loans. People believe that getting a gold loan is a simple process that takes less time.

(Kurian, November 2014) Discernible growth of gold loan NBFCs recorded mainly
on the backdrop of appreciation in gold price affirming the indicators of financial
soundness such as capital adequacy ratio, Non-Performing Asset (NPA) and share of
borrowing in the total asset of bank that are contained well within the limit specified
by RBI. Rules and regulations on gold loan NBFCs and concomitant decline in gold
price have led to the saturation of growth of NBFCs. In short, the sharp correction of
gold price would have a devastating effect not just on gold loan NBFCs but also on
the entire financial market.

(Tripathi, A Critical Study of Consumer Satisfaction Toward Gold Loan Scheme by

Muthoot Finance in India, 2008) It has been found that Indian family is keeping gold
with them. However, in past, these families were not taking gold loans frequently.
Now the financial institutions have promoted gold loans aggressively. The result of
the same is absorbed in current research where most of the coasters are taking a gold
loan and there also re-educated gold loan in future. The scenario has changed because
now people are thinking that a gold loan is one of the most accusable and comfortable
loans. The research is carried out to identify the awareness and satisfaction level of
the gold loan regarding by Muthoot finance bank. The research is based on secondary
data. The study focused on the awareness and satisfaction level of the customers.

(P.Vanitha Malarvizhi, 2019) In today’s modernized world everybody prefers to avail

gold loan as it can be availed within the short duration from Banking institution and
Non-Banking Financing institution where the preference to other credit was
comparatively lesser as it consumes time. This research study is related to a
comparative survey of the gold loan offered by public sector Banks and non-Banking
Financing Companies in Madurai. This study is focused on the preference of the
borrowers in availing the gold loan, the awareness level of borrowers about lending
norms, factors in unending borrowers to avail the gold loan, problems faced by the

49
borrowers while availing gold loan and satisfaction level of borrowers towards public
sector Banks and Non-Banking Financing Companies in availing gold loan. An
attempt has been made to collect information from 107 respondents from the
borrowers of gold loan from public sector Banks and Non-Banking Financing
Companies in Madurai city. The data collected using an appropriate questionnaire
were analysed and interpreted using statistical techniques, and also the testing of the
hypothesis was done, and conclusions arrived at whether the theories were accepted
or rejected.

(Antony*, 1, 2017) Gold Loan Market in India is well organized gold loan market
has grown tremendously over a period of time, thanks to the changing consumer
perception about gold loan, and rising loan requirements. A new trend of gold
financing for purchasing has also been observed in the industry. The main objective of
the study is that to study the demographic and socio-economic status of the gold loan
borrowers in the study region and to measures the loan borrowers’ level of
satisfaction towards jewel loans offered by Scheduled Commercial Banks in India.
For this a sample of 150 was collected from the respondents and Likert’s Scaling,
Weighted Average, Chi-Square test, ANOVA Test, Multiple Regression, and Rotated
Factor Analysis. The conclusion is that the schedule commercial banks are also
suggested to provide a check list method about documents required for processing the
jewel loan to their clients /customers in order to identify financial strength and ability
to repay the loan.

(Apurva Shrivastava, 2014) Gold loan is currently an emerging trend which is seen in
the cities as it is available at much cheaper rate of interest and with simplicity of
getting it than the other financing options. So, this research work is focussing on the
determinant factors of the gold loan market in Indore city. It draws attention to the
important factors of gold loan, which includes the brand name, customer service,
financial factors, etc. The study infers that people of Indore city are very focussed on
the type of lending institution, the interest rate charged on the loan taken, gold rate
prevailing in the market, simplicity of procedures, etc.

50
(Kannan, April 25, 2020) This study is based on the financial performance of
Cholamandalam Finance and Muthoot Finance. The aim of the study is to compare
the financial performance of both the company for the period of ten years using
CAMEL approach, this study helps in understanding the importance of financial
management and analysing the overall performance using the camel rating system for
NBFC sector. The crucial part of analysis is collection of data and analysing the data
from the company point of view because different company considers different aspect
of the calculations of the financials. The financial performance is analysed with the
help of five important factors Capital adequacy, asset quality, management efficiency,
earnings quality, liquidity. Through the help of these factors the company
performance can easily be analysed and interpreted. To analysis the soundness of the
company performance tools like ratio is used and statistical tools such as descriptive,
independent sample t-test were used. The data used for the analysis is secondary
source of data collected from the annual report of the company websites and other
trusted source. Table and graphs were used to find out difference in better between the
companies’ performance and interpretation of the data became easier and successful
in conveying the reports to the reader. Cholamandalam Finance and Muthoot Finance
are pioneers of the NBFC sector who have the role of being the early starters of
NBFC sector in India. Both have a long journey of more than 100 years in successful
operations in the business in NBFC sector. But when comparison is made between
them on the application of CAMEL model, Muthoot Finance is performing better than
Cholamandalam Finance in terms of most of the component.

(Singavarapu, March 17, 2014) The article undertakes a comprehensive analysis of

different facets of the gold loan business as it operates at the everyday level in Andhra
Pradesh. It highlights various business practices, business culture, risks and impact of
the gold loan business. We proffer that the rise of gold loan business in Andhra
Pradesh is concurrent to the exit of the Microfinance institutions (MFIs) in AP after
the crisis in 2010. The business raises similar issues that led to the MFI crisis which
include issues related to transparency, consumer protection and information
asymmetry. In the paper it is argued that due to complacency, companies often

51
overlook the risks. Though gold loans are perceived as a ‘risk free’ business, we argue
that the profile of borrowers, the elastic business practices, the underlying volatility of
the commodity and the fact that gold is an asset that does not generate any income
makes the business as risky as any other business that entails lending money. The
essence of the business is one that is a corporatized version of pawn broking whose
profitability is dependent on geographic expansion rather than improving margins.

(Dr. Santhimol M.C*, 2019) A Non-Banking Financial Company (NBFC) is a

company registered under the Companies Act, 1956 engaged mainly in the business
of loans and advances. India is home to over 200 small and large NBFC (Non-
banking Financial Companies). The gold loan NBFCs offering loans against gold
collaterals in India is on the rise. These NBFCs will keep customers’ jewellery or gold
chips as collateral and led them money at interest rates that are slightly below those of
conventional banks. The present study tries to assess the role of NBFC gold loan on
the socio-economic position of its customers in Koothattukulam Municipality. The
study observes that the non-banking finance companies play a good role in the study
area by increasing the access of the customers, serves the rural customers and creates
employment opportunity.

(Renjith P. R.1, Dr. Badugu Devaraj2, 2017) Many organizations are realizing that it
is equally important to attract talent as it is to attract customers. This is as a result of
the competitive scenario in the marketplace and the challenges encountered in
recruiting available top talents as well as the risks of losing them to competitors.
Talent is one of the key elements behind the success of many firms because of its
contribution towards the growth of human resource. However, an understanding that
each and every talent has a set of needs different from the other and the development
of strategies to match these is also very essential. Therefore, this study examines the
different talent management strategies that are being practiced in an organization
using three leading Gold Loan NBFCs and their effects on organizational
performance. The survey was carried out among 450 respondents of these
organizations in Kerala State using stratified random sampling method. A quantitative
technique and descriptive research design were adopted for the study. The research

52
hypotheses of the study were tested by using multiple regression analysis as the
statistical tool. Through the results, it has been revealed that; performance appraisal,
reward and recognition, training and development, career development, succession
planning, recruitment and selection and employee engagement have effects on
organizational performance and are as well positively related. Finally, it is
recommended that in order for organizations to retain their talents and to improve
their overall performance, it is important that they ensure higher levels.

(Dr. Anurag Mehta, june 2019) There are so many financial factors that affect the
gold loan being provided by different private banks. Interest rate, penalty, tenure and
upper limit of loan are among these factors. Is approved percentage of gold loan
significant, what is the opinion of bankers and customers about it; were judged in this
research. The study was conducted in ten cities of Rajasthan and opinion of 150 bank
employees and 500 gold loan customers was collected for the analytical research. Key
words: gold loan, private banks, financial factors and approved percentage.

(Angel, 2019) In today’s modernized world everybody prefers to avail gold loan as it
can be availed within the short duration from Banking institution and Non-Banking
Financing institution where the preference to other credit was comparatively lesser as
it consumes time. This research study is related to a comparative survey of the gold
loan offered by public sector Banks and Non-Banking Financing Companies in
Madurai. This study is focused on the preference of the borrowers in availing the gold
loan, the awareness level of borrowers about lending norms, factors influencing
borrowers to avail the gold loan, problems faced by the borrowers while availing gold
loan and satisfaction level of borrowers towards public sector Banks and Non-
Banking Financing Companies in availing gold loan. An attempt has been made to
collect information from 107 respondents from the borrowers of gold loan from public
sector Banks and Non-Banking Financing Companies in Madurai city. The data
collected using an appropriate questionnaire were analysed and interpreted using
statistical techniques, and also the testing of the hypothesis was done, and conclusions
arrived at whether the theories were accepted or rejected.

53
 Chapter 3
Research Methodology

54
 3.1 Research Objective

• To know the satisfaction level of customer towards gold loan special respect to
Muthoot Fincorp Pvt. Ltd.

3.2 Research Design

This study is based upon Descriptive research design. In this study mainly
descriptive research design is used to analyse the satisfaction level of
consumer towards gold loan special respect to Muthoot Fincorp Pvt. Ltd.

3.3 Objective of the Study

• To analyse the rate of customer satisfaction.

• To know about the preferences of the customers.
• To analyse the gold loan facility provided by Muthoot Fincorp limited.
• To identify customer’s satisfaction level towards gold loan provided by
Muthoot Fincorp.

55
 3.4 Collection of data

The primary data was collected by using a questionnaire. Questionnaire is

made in Google form and survey method is used for data collection. All data
collected online through the questionnaire.

Sample Size:152

Research Design: Descriptive research design

Type of data: Primary data

Data Collection Tool: Questionnaire in Google Form

Tools and techniques: SPSS Software

3.5 Data Analysis Tools

SPSS (Statistical Package for the Social Sciences) Software.

56
 3.6 Limitations of the study

There are many respondents who are not giving answers in a proper way.
Sometime they feel like is this fraud or their data will be used at any other site!
They feel unsecure during sharing their income details, qualification details,
occupation and how many times they suffer from emergency need of money.
Some respondents are filling this form in urgency so may be information
should be not accurate. Many are refused questionnaire because of lack of
knowledge about google form and lack of trust issue to give their details on
internet.

57
 Chapter 4
Data Analysis and Interpretation

58
 4.1 Demographical Analysis:
Q.1) Gender of respondent:
GENDER
Frequenc Percent Valid Cumulative
y Percent Percent
Male 100 65.8 65.8 65.8
Female 52 34.2 34.2 100.0
Total 152 100.0 100.0

Interpretation:
From the collected data there are 65.8% respondents are Male and remaining 34.2%
are Female. From this we easily find out that male respondents are more interested in
taking gold loan than female. There are 100 male and 52 female who respond to the
questionnaire.

59
Q.2) Age of respondent:

AGE

Frequency Percent Valid Percent Cumulative

Percent

21-25 62 40.8 40.8 40.8

25-35 47 30.9 30.9 71.7

Valid 35-50 36 23.7 23.7 95.4

>50 7 4.6 4.6 100.0

Total 152 100.0 100.0

Interpretation:
From total respondents more data collected from age group of 21-25 which
covered 40.8% area of total respond. Then 25-35 age group cover 30.9% and
remaining 23.7% covered by 35-50 age group.

60
Q.3) Marital Status of respondent:

MARITAL STATUS

Frequency Percent Valid Percent Cumulative

Percent

MARRIED 70 46.1 46.1 46.1

Valid UNMARRIED 82 53.9 53.9 100.0

Total 152 100.0 100.0

Interpretation:
There are 53.9% respondents are unmarried and 46.1% respondents are
married in this data collection.

61
Q.4) Occupation of respondent:

OCCUPATION

Frequency Percent Valid Percent Cumulative

Percent

STUDENT 48 31.6 31.6 31.6

JOB 76 50.0 50.0 81.6

Valid BUSINESS 13 8.6 8.6 90.1

HOUSEWIFE 15 9.9 9.9 100.0

Total 152 100.0 100.0

Interpretation:

I got 31.6% response from students and then after from Job category which covered
50% and Business and Housewife category covered respectively 8.6% and 9.9%.

62
Q.5) Qualification of respondent:

QUALIFICATION

Frequency Percent Valid Percent Cumulative

Percent

UG 36 23.7 23.7 23.7

Graduate 79 52.0 52.0 75.7

Valid
PG 37 24.3 24.3 100.0

Total 152 100.0 100.0

Interpretation:
From the collected data I can easily found out that Graduate people are taking
loan more than Undergraduate and Postgraduate people. Out of total 152
response there are 79 who are Graduate, 36 are Undergraduate and 37 are
Postgraduate. 52% covered by Graduate, 23.7 covered by Undergraduate and
24.3% covered by Postgraduate.

63
Q.6) Monthly income of respondent:

INCOME
Frequency Percent Valid Cumulative
Percent Percent
0-15000 69 45.4 45.4 45.4
15000-
53 34.9 34.9 80.3
30000
30000-
18 11.8 11.8 92.1
50000
>50000 12 7.9 7.9 100.0
Total 152 100.0 100.0

Interpretation:
From above chart we can easily see that the low-income criteria covered highest area
of taking loan because they are mostly suffering from tough situation than others.
Less than 15000 earner respondents are 69, 15000 to 30000 earner respondents are 53
and both are combinedly covered 80.3% of total responses. Remaining are earning
more than 30000 per month and they are covered 19.7% of total responses. So, we
can say that less income can be the reason of taking gold loan.

64
Q.7) Emergency need of money to respondent:

EMERGENCY NEED OF MONEY

Frequency Percent Valid Cumulative
Percent Percent
0-2 92 60.5 60.5 60.5
2-4 44 28.9 28.9 89.5
4-6 8 5.3 5.3 94.7
>6 8 5.3 5.3 100.0
Total 152 100.0 100.0

Interpretation:
Out of total responses 60.5% respondents are suffer less than 2 times emergency in a
year. 28.9% respondents are suffering 2 to 4 times emergency need of money in a
year and 10.8 % are suffering more than 4 times emergency need of money during
one year.

65
 Q.8) From where respondents get knowledge about loan:

FROM WHERE YOU GET INFO

Frequency Percent Valid Cumulative
Percent Percent
NEWSPAPER 34 22.4 22.4 22.4
HOLDING/BANNER 20 13.2 13.2 35.5
SOCIAL
58 38.2 38.2 73.7
MEDIA/INTERNET
FRIENDS/FAMILY 40 26.3 26.3 100.0
Total 152 100.0 100.0

Interpretation:
There are 38.2% respondents are getting knowledge about gold loan threw the social
media and internet, 26.3% are getting knowledge from friends and family members,
22.4% are getting information from the Newspaper and remaining are get information
from holdings and banners. So, we can assume that Muthoot Fincorp is investing
advertisement money more in social media campaign to catch higher customer range.

66
Q.9) Purpose of taking loan:

PURPOSE OF TAKING LOAN

Frequency Percent Valid Cumulative
Percent Percent
FAMILY
91 59.9 59.9 59.9
REQUIREMENT
MEDICAL
20 13.2 13.2 73.0
REQUIREMENT
EDUCATION FEES 29 19.1 19.1 92.1
AGRICULTURE
5 3.3 3.3 95.4
PURPOSE
OTHERS 7 4.6 4.6 100.0
Total 152 100.0 100.0

Interpretation:

Main reason of taking gold loan is family requirement according to this data because
out of 152 response 92 are taking loan because of family requirement which covered
59.9% of total response. Education fees is the second important reason of taking loan

67
which covered 19.1% then medical emergency covered 13.2% of total and 7.9% are
covered by agriculture and others. From this data we can say that mostly people use
their gold in family requirement and they put their gold in bank and borrow money
from bank.

68
 • Descriptive Analysis:

Descriptive Statistics
N Minimum Maximum Mean
EASY
152 1.00 5.00 1.9737
DOCUMENTATION
LESS
152 1.00 5.00 2.1645
DOCUMENTATION
FASTER LOAN
152 1.00 4.00 2.0395
APPROVAL
INT RATE
152 1.00 5.00 2.2105
AFFORDABLE
EASY REPAYMENT
152 1.00 5.00 2.0658
OPTION
STAFF BEHAVIOR
152 1.00 5.00 2.0921
IS GOOD
FAST RESPONSE
152 1.00 5.00 2.0000
FROM STAFF
PROBLEM SOLVING
TIME IS 152 1.00 4.00 2.0987
CONVENIENT
PROBLEM SOLVING
SKILL AND
152 1.00 5.00 2.0921
BEHAVIOUR OF
STAFF IS GOOD
SAFETY OF GOLD 152 1.00 5.00 1.9737
INSURANCE
152 1.00 4.00 1.9276
POLICY ON GOLD
LOCKER FACILITY
152 1.00 5.00 1.9539
IS TRUST WORTHY
EXTRA SERVICE
152 1.00 5.00 1.9671
WITH GOLD LOAN
LOAN CLOSING
152 1.00 4.00 2.0395
SYSTEM FASTER
Valid N (list wise) 152

69
Interpretation:

• There are 152 total responses and there is scale based questions in
Questionnaire. Here the descriptive statistics analysis has done by me.
• Mean value for easy documentation is 1.97 and that interpret that mostly are
agree with the statement that derived that Muthoot Fincorp has easy
documentation process.
• Mean value for less documentation process is 2.16 that interpret that mostly
are agree with the statement that is about Muthoot Fincorp has less
documentation process in gold loan.
• Mean value is 2.03 in faster loan approval that derived that the average answer
selected by respondent is agree.
• Mean value for affordable interest rate is 2.21 that derived that average option
which is selected by respondents is agree.
• Mean value for easy repayment is 2.06 that derive that respondent gave
average response of agree.
• Mean value for staff behaviour is 2.09 that suggest that there are average
respondents are agree with this statement.
• Mean value for fast response from staff is 2.00 that derived that there are
average responses collected as a agree opinion.
• 2.1 is the mean value of problem time is convenient that interpret that there is
average response of agree.
• 2.09 is the mean value of staff behaviour is good as well as problem solving
skill is also good in that we can interpret that average response is selected by
respondent is agree.
• 1.97 is the mean value of statement that derived that safety of gold provided
by bank and average response selected from respondent is agree.
• 1.93 is the mean value which indicates that there is average selected option is
agree in insurance policy on gold.
• 1.95 is mean value in locker facility provided by bank and that interpret that
average option selected is agree.
• 1.97 is mean value in extra services provided with gold in that there is average
respondents are agree with this.

70
• Loan closing system is faster in this statement mean value is 2.04 that suggest
that there are average number of respondents have selected agree opinion.
• Overall there are most of respondents are agree with all statement which is in
questionnaire. So we can assume that Muthoot Fincorp is providing good
services. From the above analysis I can say that there are most of respondents
are satisfy with the services of Muthoot Fincorp.

71
 WILL YOU PREFER TO OTHER

Frequency Percent Valid Percent Cumulative

Percent

YES 127 83.6 83.6 83.6

Valid NO 25 16.4 16.4 100.0

Total 152 100.0 100.0

Interpretation:

83.6% respondents are that much satisfied from the services provided by bank that
they will suggest other to take loan from Muthoot Fincorp and remaining 16.4% are
not much satisfied that’s why they will not prefer to take loan from Muthoot Fincorp.

72
 4.2 Statistical Analysis:

1. CROSS TABULATION:

GENDER * INT RATE AFFORDABLE * AGE Crosstabulation

Count

AGE INT RATE AFFORDABLE Total

SA A N D SD

MALE 5 25 7 2 1 40
GENDER
21-25 FEMALE 2 14 6 0 0 22

Total 7 39 13 2 1 62
MALE 10 15 6 2 1 34
GENDER
25-35 FEMALE 2 7 3 0 1 13
Total 12 22 9 2 2 47
MALE 1 12 9 1 23
GENDER
35-50 FEMALE 2 9 2 0 13
Total 3 21 11 1 36
MALE 1 2 0 0 3
GENDER
>50 FEMALE 0 2 1 1 4
Total 1 4 1 1 7
MALE 17 54 22 5 2 100
GENDER
Total FEMALE 6 32 12 1 1 52

Total 23 86 34 6 3 152

Interpretation:
There are 25 are male and they are agree with that interest rate is affordable which is
provided by Muthoot Fincorp while taking gold loan. They are earning less than
15000 per month.

73
 GENDER * STAFF BEHAVIOR IS GOOD * AGE Crosstabulation
Count

AGE STAFF BEHAVIOR IS GOOD Total

SA A N D SD

MALE 11 21 7 1 40
GENDER
21-25 FEMALE 5 10 7 0 22

Total 16 31 14 1 62
MALE 12 14 6 1 1 34
GENDER
25-35 FEMALE 0 8 4 0 1 13
Total 12 22 10 1 2 47
MALE 3 12 7 1 23
GENDER
35-50 FEMALE 2 7 4 0 13
Total 5 19 11 1 36
MALE 1 2 0 3
GENDER
>50 FEMALE 0 3 1 4
Total 1 5 1 7
MALE 27 49 20 3 1 100
GENDER
Total FEMALE 7 28 16 0 1 52

Total 34 77 36 3 2 152

Interpretation:
There are 21 male who are agreed that Muthoot Fincorp have good staffs that are
responsible to their customer and they behave good with their customers.

74
 GENDER * SAFETY OF GOLD * AGE Crosstabulation
Count

AGE SAFETY OF GOLD Total

SA A N D SD

MALE 13 22 4 1 40
GENDER
21-25 FEMALE 7 9 5 1 22

Total 20 31 9 2 62
MALE 13 15 3 1 2 34
GENDER
25-35 FEMALE 2 8 3 0 0 13
Total 15 23 6 1 2 47
MALE 5 11 6 1 23
GENDER
35-50 FEMALE 1 10 2 0 13
Total 6 21 8 1 36
MALE 1 1 1 3
GENDER
>50 FEMALE 0 4 0 4
Total 1 5 1 7
MALE 32 49 14 3 2 100
GENDER
Total FEMALE 10 31 10 1 0 52

Total 42 80 24 4 2 152

Interpretation:
There are 22 male agreed that Muthoot provide safety of gold after taking loan on
gold and borrowed money from bank

75
 GENDER * LOCKER FACILITY IS TRUST WORTHY * AGE Crosstabulation
Count

AGE LOCKER FACILITY IS TRUST WORTHY Total

SA A N D SD

MALE 13 19 5 2 1 40
GENDER
21-25 FEMALE 6 9 7 0 0 22

Total 19 28 12 2 1 62
MALE 15 11 4 3 1 34
GENDER
25-35 FEMALE 4 6 3 0 0 13
Total 19 17 7 3 1 47
MALE 6 12 5 23
GENDER
35-50 FEMALE 3 9 1 13
Total 9 21 6 36
MALE 1 2 3
GENDER
>50 FEMALE 0 4 4
Total 1 6 7
MALE 35 44 14 5 2 100
GENDER
Total FEMALE 13 28 11 0 0 52

Total 48 72 25 5 2 152

Interpretation:
There are 19 male they believe that Muthoot giving locker facility that is trustworthy
whose age is between 21-25.

76
 2. ONE WAY ANOVA:

1)
H0: There are no significance association in the overall satisfaction of consumer
regarding mutual fund on the basis of income group.
H1: There are significance association in the overall satisfaction of consumer
regarding mutual fund on the basis of income group.

ANOVA
OSLRGL

Sum of Squares df Mean Square F Sig.

Between Groups 2.394 3 .798 2.426 .068

Within Groups 48.670 148 .329
Total 51.064 151

Interpretation:
Here significance level is lower than 0.05 that’s why H0 is accepted so we can say
that there is a significance association in the overall satisfaction of consumer
regarding mutual fund on the basis of income group.

77
2)
H0: There is no significance association in the overall satisfaction of consumer
regarding mutual fund on the basis of Age group.
H1: There is significance association in the overall satisfaction of consumer regarding
mutual fund on the basis of Age group.

ANOVA
OSLRGL

Sum of Squares df Mean Square F Sig.

Between Groups 1.549 2 .774 2.330 .101

Within Groups 49.515 149 .332
Total 51.064 151

Interpretation:
Here significance level is higher than 0.05 that’s why H0 is accepted so we can say
that there is a significance association in the overall satisfaction of consumer
regarding mutual fund on the basis of income group.

78
Chapter 5
Findings

79
Findings:
• There are mostly male respondents in this research. Their portion in
this research is 65.8%. So I can pretend that there are mostly male are
taking loan on gold.
• In this research, age group of 21 to 25 years are more responding to
this questionnaire and I am assuming that youth is using gold as a
opportunity they don’t believe that gold is for show off they are utilize
the use of gold when they don’t need of gold. They covered 72.4%
portion of total responses.
• Mostly unmarried respondents are there who take gold loan from
Muthoot Fincorp bank and they covered 77% of response. I believe
that unmarried people are taking decision by their own and they are
inly one who don’t need to take permission from others so they are
taking loan more than married because married people have to ask
their partner also and then they decide that they should take loan or
not that’s why there are less married responses.
• In my data students are more because some of our witnesses of gold
loan and their parents are take loan and they have visited Muthoot
bank and they take services from bank that’s why students responses
are more in this data. They covered more than 60% portion.
• Majority of 52% respondents are graduated from overall responses.
• Majority of 45.4% respondents are earning less than 15000 per month
so we can assume that they are suffer from money crisis more than
others and they prefer gold loan to fight against money crisis.
• Mostly 38.2% are those who get information from social media and
internet here we can assume that Muthoot is spending their
advertisement expense on social media campaign.
• Mostly people are taking loan because of family requirement and they
are covering 59.9% of total.
• There are from total satisfaction based question mostly people are
agree with the entire question which is framed in questionnaire.

80
• 44.7% are agree that there is easy documentation process in Muthoot
Fincorp,57.9% are agree that there is less documentation while taking
gold loan .
• 51.32% agree that there is faster loan approval.
• According to 71.7% respondent there is affordable interest rate in
Muthoot Fincorp.
• 55.9% respondents are agree that there is repayment option which is
more easy.
• 50% are agree that Muthoot have good staff and they solving problem
in limited time and overall their services are good.
• Muthoot providing good and trustworthy locker facility and customer
feel safe with bank. They have trust in Muthoot Fincorp bank.

81
Chapter 6
Suggestions

82
6.1 Suggestion:

I would like to suggest that Muthoot Fincorp invest or expense their money
into advertisement and they have to cover more customer because in gold loan
market there are many bank which are giving tough competition to the
Muthoot Fincorp. There are Manappuram bank , IIFL gold loan ,Muthoot
Finance are the competitors of the Muthoot Fincorp and they have to give
fight to these banks .Muthoot Fincorp is providing many other services with
gold loan. They are not only focused on gold loan they are providing services
like mediclaim ,insurance, Fore service ,portfolio management etc. if they
want to make customer in gold loan then they have to make strategy regarding
gold loan .

83
Chapter 7
Conclusion

84
7.1 Conclusion:
From my research I can conclude that there are more men who get benefit of
Muthoot Fincorp’s services. There is mostly youth are take visit of Muthoot
Fincorp’s because mostly responses collected from that age group. Most of
respondents are satisfied from the services which are provided by bank
because they will prefer other to try these services. Low income earner people
take more loan as compare to high income earner.

7.2 Learning from SIP:

Before I start my SIP project I have no idea about Gold Loan system. After
research on this topic I got idea about gold loan system and how it works in
bank industry. I want to do job in banking industry and I think this experience
and knowledge will help me in my career also. I learnt that how we can utilise
our gold in opportunity because we are not all-time using gold during that time
we can borrow money from bank and we can do business or any other income
earning opportunities.

85
 Chapter 8
Bibliography

86
Bibliography
Angel, P. V. (2019). A Comparative Study on Gold Loan Offered by Public Sector Banks and
Non-Banking Financing Companies, Madurai. Shanlax International Journal of
commerce, 7.

Antony*, D. V. (1, 2017). A STUDY ON CONSUMER ATTITUDE AND PERCEPTION TOWARDS

GOLD LOAN OFFERED BY SCHEDULED COMMERCIAL BANKS WITH REFERENCE TO
COIMBATORE. International Journal of Computational Research and Development
(IJCRD).

Apurva Shrivastava, R. S. (2014). A Study on Factors Affecting the Gold Loan Financing
referance to indore city.

Das*, D. S. (October,2019). AN EMPIRICIAL STUDY ON COMPARATIVE FINANCIAL

EVALUATION BETWEEN MANNAPURAM FINANCE LIMITED AND MUTHOOT FINANCE
LIMITED. The International journal of analytical and experimental modal analysis.

DEEPTI SHASTRI GUPTA, D. V. (Dec.2020). A STUDY OF PERFORMANCE ANALYSIS OF GOLD

LOAN NBFCS BASED ON CAMELS MODEL.

DEEPTI SHASTRI GUPTA, D. V. (Dec.2020). A STUDY OF PERFORMANCE ANALYSIS OF GOLD

LOAN NBFCS BASED ON CAMELS MODEL.

Dr. Anurag Mehta, *. M. (june 2019). Approved percentage and gold loan: An analytical
study. Journal of Emerging Technologies and Innovative Research (JETIR).

Dr. Santhimol M.C*, J. J. (2019). Role of nbfc gold loan on the socio-economic position of its
customers in koothattukulam municipality. International Journal of Management, IT
and Engineering.

forbes. (n.d.). Retrieved from www.forbes.com:

(https://www.forbes.com/advisor/in/gold/the-how-why-of-getting-a-gold-loan/

George, J. a. (09 May 2015). Discernible growth of Gold Loan NBFCs in India.

Kannan, S. (April 25, 2020). A Study on Financial Performance of Muthoot Finance and
Cholamandalam Finance.

Kannan. V. Unnithan, D. M. (February 2017). GOLD LOAN PROCEDURES OF URBAN

COOPERATIVE BANKS; A CASE GOLD LOAN PROCEDURES OF URBAN COOPERATIVE
BANKS; A CASE. Asia Pacific Journal of Research.

Kurian, J. G. (November 2014). Discernible growth of Gold Loan NBFCs in India.

Muthoot Fincorp. (2019-20). Annual Report of Muthoot fincorp. In Annual Report 2019-20
(p. 9). Muthoot Fincorp.

Muthoot Fincorp. (n.d.). Muthoot Fincorp Pvt. Ltd. Retrieved from

www.muthootfincorp.com: https://www.muthootfincorp.com/about-us/founders/

87
Nishanth. (n.d.). Marketing Strategy of Financial ServicesFirm With Respect To Muthoot
Finance.

P.Vanitha Malarvizhi, A. (2019). A Comparative Study on Gold Loan Offered by Public Sector
Banks and Non-Banking Financing Companies,Madurai. International Journal of
Commerce.

Pooja Kayasth1, ,. P. (May –June 2021). To Study the People’s Perception Towards Gold Loan
Finance with The Reference of Bardoli Region. IOSR Journal of Economics and
Finance.

Prakash**, A. S. (n.d.). A Study on Factors Affecting the Gold Loan Financing.

Renjith P. R.1, D. B. (2017). Best talent management strategies of gold loan non-banking
financial companies. Journal on Banking & Insurance Research.

Renjith P. R.1, Dr. Badugu Devaraj2. (2017). Best talent management strategies of gold loan
non-banking financial companies. Journal on Banking & Insurance Research.

S.Ananth. (n.d.). New frontier in Consumer Credit post MFI Crisis: The Case of Gold Loan
Business in AP.

Sibi, M. (September - 2014). Borrowers’ Perspective towards Gold Loan Protection Practices
Followed By Banks and NBFCs. IRJBM.

Singavarapu, A. (March 17, 2014). New Frontier in Retail Credit Post MFI Crisis: The Case of
Gold Loan Business in AP.

Tripathi, S. K. (2008). A Critical Study of Consumer Satisfaction Toward Gold Loan Scheme by
Muthoot Finance in India. International Journal of Economic Perspectives.

Tripathi, S. K. (2008). A Critical Study of Consumer Satisfaction Toward Gold Loan Scheme by
Muthoot Finance in India. International Journal of Economic Perspectives.

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 Chapter 9
Questionnaire

89
Name:

Gender: Male ……..

Female……..

Age:
Between 21 to 25
Between 25 to 35
Between 35 to 50
Above 50

Marital Status:
Married
Unmarried

Occupation:
Student
Job
Business
Housewife

Qualification:
Under Graduate
Graduate
Post Graduate
Other

Monthly income:
Below 15,000
Between 15,000 to 30,000
Between 30,000 to 50,000
Above 50,000

90
How many times in a year you have emergency need of money?
Less than 2 times
2-4 times
4 to 6 times
More than 6 times

>From where you got information about Gold Loan scheme?

Newspaper
Holding / Banner
Social Media/Internet
Friends/Family

>Purpose of taking Gold Loan

Family Requirement
Medical Requirement
Education Fee
Agriculture Purpose
Other

91
 SA A N D SD

Documentation process is easy

Less document required for gold

loan
Gold loan approval is faster

Gold loan interest rate is

affordable
Repayment options are easy

Staff behaviour is good

Response from staff is faster

Problem solving time is

convenient

Problem solving skill and

behaviour of staff is good

Muthoot Fincorp provides safety

of gold ornaments

Insurance policy on gold

provides high level of assurance
of gold

Locker facility is trustworthy

Services provided with gold loan

is good (Gold
Insurance,Mediclaim,Accident
insurance)

Loan closing system is faster

>Will you refer to others for gold loan? *

Yes
No

92

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