Nagma SK Project

TRUQUEST COMPANY
PVT.LTD
PREPARED BY : NAGMA ISMAIL SHAIKH
2023
FINANCE COMPANY PROJECT REPORT
INDEX
PARTICULARS PAGE NO.

SR NO
1
HISTORY
Finance is a field of specialization that studies all aspects

of obtaining money and making decisions about the allocation
of that money. There are many segments of this field by type—

corporate finance, finance, municipal finance, not-for-profit
finance, and personal finance. This brief discussion will be an
overview of corporate finance in the economy in India. In
the India, major corporations and the financial institutions with
which they associate are regulated by the INDIA. Treasury,
which implements fiscal and monetary policies and the.

Congress, which enacts laws and regulations, intersect in their
interests. A driver of finance in the Is the goal to maintain full
employment and to achieve a specified level of economic
growth. Corporate finance is critical to such a goal.
Innovative start-up to help customers build businesses

and manage money in a rapidly changing world. Across time,
and in every generation, TRUQUEST will continued helping
customers go further by providing innovative financial services
to help them get ahead. Through prosperity, depression, and
war, customers have turned to Wells Fargo for the solutions

they needed to survive and thrive.
We will continued helping customers go further by

providing innovative financial services to help them get ahead.
Through prosperity, depression, and war, customers have
turned to Wells Fargo for the solutions they needed to survive
and thrive. The company is the largest gold financing company
in India in terms of loan portfolio. It provides personal and
business loans secured by gold jewellery, or Gold Loans,

primarily to individuals who possess gold jewellery but could not
access formal credit within a reasonable time, or to whom credit
may not be available at all, to meet unanticipated or other
short–term liquidity requirements.
The company’s customers are typically small

businessmen, vendors, traders, farmers and salaried
individuals, who for reasons of convenience, accessibility
or necessity, avail of its credit facilities by pledging their
gold jewellery with it rather than by taking loans from
banks and other financial institutions. It provides retail
loan products, primarily comprising Gold Loans. The

company also disburses other loans, including those
secured by Muthoot Gold Bonds. The company’s Gold
Loans have a maximum 12 month term.
INDIAN TRADITION :
A prevailing trend from the medieval period, most

Indians invest more than half of personal savings
physical assets such as land, houses, gold, livestock, and
other precious metals and ornaments.
The Indian money market is classified into: the

organised sector (comprising private, public and foreign
owned commercial banks and cooperative banks,
together known as scheduled banks); and the
unorganised sector (comprising individual or family
owned indigenous bankers or money lenders and non-
banking financial companies (NBFCs)). The unorganised

sector and microcredit are still preferred over traditional
banks in rural and sub-urban areas, especially for non-
productive purposes, like ceremonies and short duration
loans.
Prime Minister Indira Gandhi nationalised 54 banks in

1969, followed by six others in 1980, and made it
mandatory for banks to provide 40% of their net credit to
priority sectors like agriculture, small-scale industry,
retail trade, small businesses, etc. to ensure that the
banks fulfill their social and developmental goals. Since
then, the number of bank branches has increased from

10,120 in 1969 to 98,910 in 2003 and the population
covered by a branch decreased from 63,800 to 15,000
during the same period. The total deposits increased 32.6
times between 1971 and 1991 compared to 7 times
between 1951 and 1971. Despite an increase of rural
branches, from 1,860 or 22% of the total number of

branches in 1969 to 32,270 or 48%, only 32,270 out of
500,000 villages are covered by a scheduled bank.
Since liberalisation, the government has approved

significant banking reforms. While some of these relate to
nationalised banks (like encouraging mergers, reducing

government interference and increasing profitability and
competitiveness), other reforms have opened up the
banking and insurance sectors to private and foreign
players.
As of 2007, banking in India is generally mature in

terms of supply, product range and reach-even, though
reach in rural India still remains a challenge for the
private sector and foreign banks.[7] In terms of quality
of assets and capital adequacy, Indian banks are
considered to have clean, strong and transparent balance
sheets relative to other banks in comparable economies

of Asia.[7] The Reserve Bank of India is an autonomous
body, with minimal pressure from the government .
GDP CONTRIBUTION OF FINANCE COMPANY

India’s financial services industry has

experienced huge growth in the past few years. This
momentum is expected to continue. India’s private
wealth management Industry shows huge potential. India
is expected to have 6.11 lakh HNWIs by 2025. This will

indeed lead India to be the fourth largest private wealth
market globally by 2028. India’s insurance market is also
expected to reach US$ 250 billion by 2025. This will
further offer India an opportunity of US$ 78 billion of
additional life insurance premiums from 2020-30.
India is today one of the most vibrant global

economies on the back of robust banking and insurance
sectors. The relaxation of foreign investment rules has
received a positive response from the insurance sector,
with many companies announcing plans to increase their

stakes in joint ventures with Indian companies. Over the
coming quarters, there could be a series of joint venture
deals between global insurance giants and local players.
The Association of Mutual Funds in India (AMFI) is

targeting a nearly five-fold growth in AUM to Rs. 95 lakh
crore (US$ 1.47 trillion) and more than three times
growth in investor accounts to 130 million by 2025.
India’s Fintech space is expected to further fuel this

growth in various segments. India's mobile wallet
industry is estimated to grow at a Compound Annual
Growth Rate (CAGR) of 150% to reach US$ 4.4 billion by
2022, while mobile wallet transactions will touch Rs. 32
trillion (USD$ 492.6 billion) during the same period.
According to Goldman Sachs, investors have been

pouring money into India’s stock market, which is likely
to reach >US$ 5 trillion, surpassing the UK, and become
the fifth-largest stock market worldwide by 2024.
INTRODUCTION OF COMPANY
TRUQUEST is an Indian financial corporation and the

largest gold loan NBFC in the country. In addition to
financing gold loans, the company offers other forms of
loans, insurance and money transfer services, and sells
gold coins. The company is headquartered in MUMBAI.
Its stocks are listed on the BSE and NSE since its initial
public offering in 2013. The target market of TRUQUEST
Finance includes small businesses, vendors, farmers,
traders, SME business owners, and salaried individuals.
The company was incorporated as a private limited

company on 14 March 2013 with the name "The
TRUQUEST Finance Private Limited" under the Companies
Act.
TRUQUEST had imbibed a work culture that was based on

conscience. Ever since its inception, the company has
nurtured trust as its most prominent value. We are
committed to keeping this heritage alive throughout the
generations to come. At TRUQUEST Finance Ltd. we are
committed to creating a balance. We believe in a simple
yet profound theory of "from excess or scanty, to

appropriateness".
TRUQUEST PVT. LTD

(FOUNDED IN MUMBAI,2013)
“Let us not judge ourselves by the profit we make but by

the trust and the confidence that people have in us. Let
us cherish and nurture that trust and ensure that every
person who deals with us deals with the confidence that
he will not be misguided but his interests will

be carefully protected”.
PRODUCT & SERVICES
 GOLD LOAN.
 GOLD LOAN@HOME.
 HOUSING FINANCE.
 PERSONAL LOAN.
 INSURANCE.
 GOLD COIN.
 MONEY TRANSFER.
 NCD
 FOREIGN INWARD MONEY TRANSFER
SERVICES
 FOREIGN EXCHANGE SERVICES

 INSURANCE BROKING
 COLLECTION SERVICES
 MICROFINANCE
 WINDMILL POWER GENERATION

 WHITE LABEL AUTOMATED TELLER
MACHINE
VISION , MISSION
VISION :
 Be the most trusted, globally diversified institution

enriching lives of the masses while contributing back
to the society.
 continuous innovation through the smart use of

technology, data and analytics to drive seamless,
simplified and personalized experiences for its

customers.
 To attain globally best standards and become a

world-class financial services enterprise – guided by
its purpose to move towards a greater degree of

sophistication and maturity.
 We aim to be the most respected financial services
provider that reaches out to the millions of people
pan-India.We aspire to live up the expectations of
our clients, our people, our investors, and the society
MISSION :
 To build leading customer-centric businesses enabled

by technology, maintaining the highest standards of
corporate governance and uncompromising values.
 To be the leading financial services company in our

markets, close to the customer and focused on the
communities we serve.
 Our company is single minded in its determination to

achieve excellence in what we do. We are dedicate to
achieving the highest standard in the area of finance.
 Be the premier community and business bank in the

North Bay by building long-term relationships based
on trust, expertise, and accountability, and by
helping our customers, communities, employees and
shareholders prosper.
VALUES :
Integrity
We ensure that the highest standard of professional

conduct is embedded in every corner of the Organization.
It defines how we go about our business, treat our
people, customers and stakeholders.
●We are transparent and ethical in the way we conduct

ourselves.
●We are honest and fair and base our conclusions on

facts.
●We have a strong moral code and take responsibility of

our actions.
Respect
As we continue to increase our reach in every corner of

the country, we value those who work with us and the
contributions that they make to our business.
●We respect our people's individuality and diversity.

●We conduct ourselves in a manner that reflects the

spirit of inclusion and humility.
●We treat all our customers, employees and stakeholders

with respect and empathy.

Excellence
In our journey of becoming India’s most admired NBFC,
we want to excel and set high standards in every aspect.
●We aim to execute flawlessly and deliver the highest

quality of service and value through simple relevant
solutions.
●We challenge ourselves to meet our goals and pursue

excellence.
●We consistently strive to exceed the expectations of our

customers, colleagues and stakeholders.
Simplicity
We keep our customers, employees and stakeholders at

the heart of everything we do.
●We focus on removing complexities.
●We deliver solutions that are simple and relevant.

●Our communication, policies and processes are simple

to understand and easy to follow.
Collaboration
We believe success is achieved not by any one individual

but by teams that work together.
●We operate in a spirit of collaboration and teamwork.
●We support and encourage people to use their expertise

and experience to solve everyday challenges.
●We embrace a mindset of openness and trust that helps

in breaking silos.
Agility
We proactively respond to the changing market

environment and the evolving needs of our customers.
●We strive to deliver the highest sustainable standards

through efficient and timely execution.
●Our speed of action reflects our readiness to

continuously improve and our openness to change and
discovery.
●We are flexible and constantly looks for ways to

enhance efficiencies.
FEASIBILITY STUDY
Meaning :
When companies want to start a new project or activity,

they need to think and plan before they can begin. It is
because they want to ensure the new project or activity
will be successful and not waste their time, money, or
resources. To do this, they can use a “feasibility study.” A
feasibility study helps companies determine their idea’s

risks, benefits, and costs.
Then they can decide if it’s a good idea to go ahead with

it or not. Feasibility study examples include evaluating
new business opportunities to see how much return the

business may generate.
A feasibility study is a detailed analysis that considers all

of the critical aspects of a proposed project in order to
determine the likelihood of it succeeding.
Success in business may be defined primarily by return

on investment, meaning that the project will generate
enough profit to justify the investment. However, many
other important factors may be identified on the plus or
minus side, such as community reaction and
environmental impact.
Although feasibility studies can help project managers

determine the risk and return of pursuing a plan of
action, several steps should be considered before moving
forward.
TYPES OF FEASIBILITY STUDY

1. Economic Feasibility
2. Technical Feasibility
3. Operational Feasibility
4. Scheduling Feasibility
5. Legal Feasibility.
FUNCTIONS OF FINANCE COMPANY

PRIMARY FUNCTIONS
The finance company is an entity that lends money to
individuals and businesses. The revenue sources of
finance organizations are the fees they charge while

processing loans and the annual percentage rate (APR)
they charge on loans given. According to Nasdaq, the
primary function of finance companies is to make loans to
individuals; they don't receive deposits as banks do.
Finance companies borrow money from sources such

as the Federal Reserve System and commercial banks at
a low interest rate and lend it at a higher interest rate.
This is the reason the interest rates charged by finance
companies are higher than the interest rates charged by
banks. Companies and individuals turn to finance
companies when they don't qualify for bank loans. The

functions of finance companies are to offer both
unsecured and secured loans to individuals and
companies.
Offer Secured Loans
According to Corporate Finance Institute, collateral is an

asset that the borrower offers to the lender to secure a
loan. If the loan isn't repaid, the collateral becomes the
property of the lender.
An auto loan is a secured loan because the vehicle serves

as collateral for the loan. If the borrower doesn't repay
the loan, the lender takes possession of the vehicle.
Finance companies prefer to offer secured loans to people
because they present much lower risks than unsecured
personal loans. If the borrower doesn't repay the money
as per the agreed terms, the finance company can seize

the collateral and auction it on an open market.
Finance companies look at credit history while offering

secured loans too. The rate of interest or annual
percentage rate (APR) might rise if the credit history of
the borrower is poor when taking out an auto loan, even

if the loan includes collateral.
Offer Business Loans
Finance companies extend loans to businesses as well.

For example, a company can approach a finance
company when it wants to lease or purchase office

equipment such as computers or machinery. Most finance
companies also offer factoring services to businesses.
Factoring is a financial transaction wherein the

organization sells its accounts receivables to a third party
at a discount to meet its immediate cash needs. For

example, a manufacturing firm can sell its accounts
receivables worth $100,000 to a finance organization at a
discount of 10 percent. In this case, the manufacturer
receives $90,000 from the finance company for
immediate working capital needs.
Lend to Purchase Products
Sales-based finance companies extend loans to

customers of a few retailers. For example, borrowers can
take a loan from a sales-based finance company to
purchase a refrigerator from a home appliance company.
General Motors Acceptance Corporation (GMAC), which

lends money to customers of General Motors who
purchase vehicles, is an example of sales-based finance
companies.
Finance companies, like banks, come up with equitable

monthly installment (EMI) plans. Customers are
encouraged to select a suitable EMI plan based on
monthly earnings and available disposable income after
accommodating the mandatory monthly expenses.
MARKETING STRTEGY
The 5 Most Effective Marketing Strategies for
Financial Services:
1. Customer Outreach
2. Self-Service and Digitization
3. Social Media
4. Automation and Big-Data
5. Digital Storytelling
1. Customer Outreach
Customer outreach is one of the oldest and

simplest marketing strategies for banks and
financial institutions to adopt. However, it’s also
one of the most effective. Customer outreach is
quite simply the concept of reaching out to
customers to fill existing needs surrounding
education, awareness, and help. This scales to a

small organization in the form of free consultations
and webinars and to larger ones in the form of
financial education such as debt management
programs or financial education in schools.
Why does it work? Customer outreach may seem

like a largely philanthropic use of budget, but it
works to build awareness, customer loyalty, and
interest in products and services. A carefully
formulated financial marketing strategy takes the
services and features you are trying to sell and

other marketing campaigns into consideration. For
example, if you know that students are going back
to school, you could focus customer outreach
around programs for teaching college students to
manage money on their own, towards saving for

college, or budgeting to save up for a car. If you
know your geographic area has a large percentage
of seniors, you could create free financial education
programs teaching seniors to use digital banking
and about online security. These programs would,

in turn, promote savings accounts, digital
solutions, and even your bank through awareness
and increased consumer trust.
2. Self-Service and Digitization

Where baby boomers and previous generations
largely preferred to receive products through sales
representatives who could advise them and set up
personalized (or not) accounts for them,
millennials and Generation Z often want to do

everything themselves with as little contact with
human representatives as possible. Setting up and
promoting digitized financial products and
customer service or experience portals that enable
customers to sign up for services online, change

products and services online, and view their
information without going into a branch is an
effective and increasingly necessary trend for
financial organizations. However, it is not a
marketing strategy that applies to every

organization, as you may not sell products only
services.
3. Social Media
81% of the india population is on a social media

account and many use social for up to 4-5 hours
per day. Your smart and consistent use of one or
more social media platforms is a valuable financial
marketing strategy that you cannot afford to
ignore. Millennials, Generation Z, and even Baby

Boomers use social media platforms to connect
with brands, learn from peers, and follow current
events and news. Maintaining a steady presence
on one or more sites with a strategy in place to
offer value to followers will help you to build brand

trust, create marketing opportunities, and grow
your customer base.
Many financial and banking organizations use

social media to connect with consumers for the
purpose of building trust. For example, by showing
that real people work at banks and in financial
services, showcasing customers and success
stories, and delivering customer service. For

example, financial organizations can typically cut
the cost of customer service by over 70% by
switching from phone to social media. A good
social media marketing strategy requires smart use
of storytelling, content, and creative humor as well

as consistency and the willingness to offer value
for the customer rather than the bank. However, it
is well worth the effort in terms of building trust,
awareness, and relationships with consumers in

their space.
4. Automation and Big Data
Most financial organizations have more data than

they know what to do with, but that is quickly
changing. Today, customer experience platforms
and automation tools make it easier than ever to
utilize and apply data as part of your marketing

strategy for financial services. For example, big
data can tell you who is saving up for a big
purchase and most likely to need pre-approval for
a loan, big data can help you identify and offer
services before or after they are needed, it can
help you to target specific customers for additional

customer service or digital financial education, and
can help you to cut down on needed customer
service.
5. Digital Storytelling
Storytelling is still one of the most effective

marketing mediums, whether on social media,
video, ads, or cross-channel platforms extending
into the real world. Here, your marketing strategy
should encompass telling a story that captures

interest and evokes emotion to interest, excite,
and move the viewer. Here, your goal is to create
relatable and shareable content which can educate,
entertain, or help the reader in some way – and
hopefully manage all three at once.
SWOT ANALYSIS
FINANCIAL DATA
PARTICULARS AMOUNT
Cost of place of business 3000000
Cost of construction 2500000

Cost of furniture 1000000
Cost of electronics 500000
Cost of license 50000

Preliminary expenses 50000
total 7100000
PROJECTED FINANCIAL STATEMENT OF COMPANY

A financial institution (FI) is a company engaged in

the business of dealing with financial and monetary
transactions such as deposits, loans, investments,
and currency exchange. Financial institutions
include a broad range of business operations within

the financial services sector, including banks,
insurance companies, brokerage firms, and
investment dealers.
Virtually everyone living in a developed economy

has an ongoing or at least periodic need for a
financial institution's services.
Financial institutions often match savers' or

investors' funds with those seeking funds, such as
borrowers or businesses seeking to trade shares of

ownership for funds. Typically, this leads to future
payments from the borrower or business to the
saver or investor. The tools for matching all of
these parties up include products such as loans,
and markets, such as a stock exchange.1
At the most basic level, financial institutions allow

people to access the money they need. For
example, although banks do many things, their
primary role is to take in funds—called deposits—
from those with money, pool the deposits, and
lend the money to others who need funds. Banks
are intermediaries between depositors (who lend

money to the bank) and borrowers (who the bank
lends money to).
This works well because while some depositors

need their money at any given moment, most do
not. So banks can use deposits to make long-term
loans. This applies to almost every entity and
individual in a capitalist system: individuals and
households, financial and nonfinancial firms, and

national and local governments.
The Function of Financial Institutions in Capital

Markets
Capital markets are important for functioning

capitalist economies because they channel savings
and investments between suppliers and those in
need. Suppliers are people or institutions with
capital to lend or invest. Suppliers typically include
banks and investors. Those seeking capital are

businesses, governments, and individuals.
Financial institutions play an important role in

capital markets, directing capital to where it is
most useful. For example, a bank takes in deposits
from customers and lends the money to borrowers,
ensuring capital markets' efficient function.
Regulation
Governments oversee and regulate banks and
financial institutions because the institutions play
an integral economic role. Bankruptcies of financial
institutions, for instance, can create panic. Federal
and state agencies can regulate financial

institutions. Sometimes, multiple agencies regulate
the same institution.
Federal Depository Regulators
Federal depository regulators oversee commercial

banks, thrifts (savings associations), and credit
unions accepting customer deposits.
1
U.S. Federal Reserve (The Fed): Regulator of

Federal Reserve System member state banks,
foreign banking organizations operating in the
United States, and financial holding companies.
Office of the Comptroller of the Currency (OCC):

The OCC is responsible for seeing that national
banks and federal savings associations operate
safely, provide equal access to financial services,
treat customers fairly, and comply with applicable
laws and regulations. It also regulates U.S. federal

branches of foreign banks and federally chartered
thrift institutions.
Federal Deposit Insurance Corporation (FDIC): The
FDIC regulates federally insured depository
institutions, state banks that aren't members of

the Federal Reserve System, and state-chartered
thrift institutions.
National Credit Union Administration (NCUA):

NCUA supervises and insures federally chartered or
insured credit unions.
Federal Securities Markets Regulators

Two federal institutions regulate products,
markets, and market participants for securities
such as stocks, bonds, and derivatives.
Securities and Exchange Commission (SEC): The

SEC regulates securities exchanges, broker-
dealers, and corporations selling securities to the

public; investment funds, including mutual funds;
investment advisers, including hedge funds with
assets over $150 million; and investment
companies.
Commodities Futures Trading Commission (CFTC):

The CFTC regulates futures exchanges, futures
commission merchants, commodity pool operators,
commodity trading advisors, derivatives, clearing
organizations, and designated contract markets.
Government-Sponsored Enterprise (GSE)

Regulators
These dedicated regulators exclusively oversee
government-sponsored enterprises, which are
quasi-governmental entities established to
enhance the flow of credit to specific sectors of the

U.S. economy.
3
Federal Housing Finance Agency: The FHFA

supervises, regulates, and performs oversight of
the Federal National Mortgage Association (Fannie
Mae), the Federal Home Loan Mortgage
Corporation (Freddie Mac), and the Federal Home

Loan Bank System.
6
Farm Credit Administration: This agency regulates

Farm Credit System institutions and Farmer Mac,
credit sources for eligible persons in agriculture
and rural America.
7
Consumer Protection Regulator

Currently, the Consumer Financial Protection
Bureau (CFPB) is the only national consumer entity
tasked with exclusively regulating consumer
products. CFPB's purview includes nonbank
mortgage-related firms, private student lenders,

payday lenders, and other large “consumer
financial entities,” as determined by the CFPB.
CFPB is the rulemaking consumer protection
authority for all banks and has supervisory
authority for banks with more than $10 billion in

assets.
1
State Regulators
States may regulate financial institutions in
addition to or instead of federal regulators. For
example, there is minimal federal oversight of the
insurance industry. Each state government has a
department that licenses and regulates insurance

companies and any company selling insurance
products. States may also regulate banking,
securities, and consumer protections in addition to
federal regulators who work in those areas.
Types of Financial Institutions

Financial institutions offer various products and
services for individual and commercial clients. The
specific services offered vary widely between
different types of financial institutions. Here are
some of the types consumers are most likely to

use:
Banks, Credit Unions, and Savings & Loans

These financial institutions accept deposits and

offers checking and savings account services;
make business, personal, and mortgage loans; and
provides basic financial products like certificates of
deposit (CDs). They may also act as payment
agents via credit cards, wire transfers, and

currency exchange.
These types of financial institution can include:

Commercial or private banks

Savings and loans associations
Credit unions
Foreign banks
Savings banks, industrial institutions, thrifts
Investment Companies, Advisors, and Brokers
Investment companies issue and invest in

securities (stocks, bonds, mutual funds and ETFs
or exchange-traded funds).
9
Mutual funds are one example of a product offered

by an investment company, where many investors'
money is pooled and invested in stocks, bonds,
money market instruments, other securities, or
even cash in an ongoing manner.
Other examples of investment-related financial

institutions include investment advisors and
brokers. Brokers accept and carry out orders to
buy and sell investments (such as securities) for

customers.
10
Insurance Companies
Among the most familiar non-bank financial
institutions are insurance companies. Providing
insurance for individuals or corporations is one of
the oldest financial services. Protection of assets
and protection against financial risk, secured

through insurance products, is an essential service
that facilitates individual and corporate
investments that fuel economic growth.
Insurance is primarily regulated at the state level,

but the U.S. Treasury's Federal Insurance Office
(FIO) does monitor the industry and plays an
advisory role.
Why Are Financial Institutions Important?

Financial institutions are essential because they
provide a marketplace for money and assets so
that capital can be efficiently allocated to where it
is most useful. For example, a bank takes in
customer deposits and lends the money to

borrowers. Without the bank as an intermediary,
any individual is unlikely to find a qualified
borrower or know how to service the loan. Via the
bank, the depositor can earn interest as a result.
Likewise, investment banks find investors to

market a company's shares or bonds to.
How Do Financial Institutions Work?

Financial institutions, as the name implies, are
entities that deal in finances. They offer a wide
range of monetary or financial services to
individuals and businesses. From helping
individuals save money to enabling them to invest

in stocks, such institutions serve different functions
simultaneously.
There are various types of financial institutions to

fulfill different requirements of customers. They
look into the customer’s financial needs, be it an
individual or a company, and offer relevant
services. These entities provide customers with
valuable pieces of advice while choosing

appropriate financial investment or savings
options. The professionals explain the pros and
cons of each alternative for their customers to
decide which investment they should spend on.
The national and international financial institutions

have a great role in ensuring a healthy economy.
With the give and take of the monetary resources,
the flow of transactions remains balanced, which
keeps the economy going. Moreover, such entities

in the nation make the market liquid, triggering
more economic activities in the respective
countries. Therefore, any damage to these
financial entities can have a direct negative impact

on the economic health of the nation.
Types of Financial Institutions

There is a wide range of such institutions operating
around the world. However, the commonly
identified types are as follows:
#1 – Central Banks
These are the financial entities that monitor and

oversee the procedures of the other financial or
banking institutions in the nation. They do not deal
with individual customers directly. Instead, they
finance other retail banks. In short, these are

banks for the banks. Every economy has a
separate central bank and is named differently. For
example, in the United States, the Federal Reserve
Bank is the central bank.
#2 – Commercial Banks
Retail and commercial banks are widely available

to serve the financial needs of individuals and
businesses. From depositing money to borrowing
amounts to buy property, these banks act as
saviors for people in need to secure their future

financially. Some of the products that these banks
offer include savings accounts, personal loans,
mortgage loans, certificates of deposits (CDs),
credit cards, etc.
#3 – Non-Banking Institutions
Non-banking financial institutions (NBFIs) are

entities that neither acquire a valid banking license
nor do they allow customers to deposit amounts.
However, these entities can offer alternative
financial facilities to customers, including

investment, consultation, brokerage, transmission,
and risk pooling services. #4 – Credit Unions
The institutions offer traditional banking services

but are not publicly traded entities. They are
established and operated by the members, the

ultimate shareholders. These associations use and
reinvest the money received as an interest to keep
the costs low. As a result, they become the better
choices for members to fulfill their financial needs.
These entities enjoy tax-exempt status as not-for-

profit organizations
.
#5 – Investment Entities
The investment banks and brokerage firms fall

under this non-depository category. The
investment firms help corporations, governments,
and other entities build capital, raise funds, and
gain financial advice. These entities, as brokerage

ventures, let customers acquire finances by
investing in securities, like stocks, mutual funds
, bonds, and exchange-traded funds (ETFs). In

addition, it acts as a guide to startups or
companies in conducting complex transactional

processes. They also offer advice for initiating
fruitful mergers and acquisitions (M&A).
#6 – Thrift Institutions
Also referred to as savings and loan associations,

these entities allow up to 20% of total lending to
customers, who are also their owners. They help
individuals enjoy opening accounts and acquiring

personal loans and home mortgages.
#7 – Insurance Companies
These financial institutions allow individuals and

businesses have policies against monthly
premiums, which they are subject to pay at regular
intervals. In addition, these schemes offer
coverage or protection to assets against any
financial risk
they remain exposed to.

Roles Performed by Financial Institutions

1. Economic Growth of the Nation
At the national level, financial institutions are
subject to government regulation. They serve as
an agent of the government and develop the
economy of the country. For instance, following

government regulations, financial institutions may
extend a selective credit line with lower interest
rates to assist a struggling industry in resolving its
problems.
2. Capital Formation
Financial institutions offer financial services to
investors who require external cash to raise their
capital stocks by accepting individual savings.
Investors may want financial services to carry out
development plans by setting up new machinery,

tools, and equipment; constructing a new facility;
and purchasing new transport vehicles, among
other things. Financial institutions contribute to the
creation of capital in this way.
3. Regulate Monetary Supply

The financial institution assists in controlling the
amount of money in the economy. These
organizations keep the money supply stable and
manage inflation. The Federal Reserve Bank
regulates the nation’s liquidity in several ways,

including adjusting repo rates, participating in
open markets, and setting cash reserve ratios. In
order to control liquidity, financial institutions
participate in the purchasing and selling of
government assets.
Advantages of Financial Institutions

1. Procurement of Funds
Financial institutions are crucial because they make
it possible for people to receive money when they
need it. For instance, even though banks do

various tasks, their primary function is to collect
deposits from those who have money, pool them,
and then lend them to individuals who need
money. Banks act as middlemen between
depositors (who provide the bank with funds) and

borrowers (to whom the bank lends money).
2. Offer Safety
Even though you can keep your money at home or

in your wallet, depositing money with a financial
institution guarantees its security. You also have
an additional layer of protection because
government laws provide some protection for your
deposits in the event of a bank failure. Individuals

have the option to use financial institutions to earn
interest on a deposit account (cash deposits,
money market, or savings). Alternatively, one can
buy stocks and bonds through a brokerage.
3. Financial Consultation
Financial institutions provide people with finances
and guide them with the right investment plans
and policies. Investment banks inform businesses

and individuals about the proper techniques for
generating profits. They help their clients raise
capital, issue new IPOs, etc. Similarly, insurance
companies help individuals and businesses by

suggesting the right plan for their future welfare.
Explore- 8 Most Popular Udemy Courses for

Finance & Management Professionals
4. Employment Creation
Starting or expanding a business requires financial

resources, and bank loans are one of the easiest
ways to get them. Financial institutions provide
credit not only to individuals but businesses also.
Startups and small businesses can start their
venture by seeking long and medium-term credit

from these institutions. This will lead to the
opening of new employment opportunities and
economic growth. The business owners also have
the option to take a loan against their existing
property either for a new venture opening or for

the expansion and diversification of an existing
one.
5. Ensure Regional Balance

The government set up financial institutes in rural
and backward areas to help local people, small
farmers, artisans, household workers, etc., with
loans and credits. These institutions also provide
government-approved schemes such as NABARD,

Agricultural loans, interest at low rates to Self
Health Groups (SGHs), etc., to help uplift these
areas.
Disadvantages of Financial Institutions
1. Complex and Lengthy Process

These organizations follow strict guidelines for
giving loans since they must meet government
standards. A detailed examination involving many
formalities and paperwork is required by the
individual or company seeking financing, making

the process time-consuming.
2. Security Deposit
In order to take a loan from these financial

institutions, one has to keep any security and bear
Due other restrictions set by them. Also, loans are
given at high-interest rates, which burdens
individuals and businesses. This is the reason why

many worthy individuals fail to receive credit.
3. Hidden Risk Involved

If the management of the financial institution’s

done defaults, then the customers will have to deal
with even worse situations. They might not be able
to get their invested money back. The principal
amount is only sometimes guaranteed to be
recovered because the government may declare a

specific amount to be reimbursed in the event of
default. The amount the government declares to
be repaid is typically substantially lower than the
principal amount of the investment made.
4. Limitation on the Borrower

The financial institutions are entitled to have a
representative on the borrowing company’s board
of directors, which limits the company’s authority.

Additionally, they may directly influence the
borrowing company’s dividend distribution choice.
Conclusion
Starting a finance company involves a thorough
planning and research. The purpose of finance
company is to provide loans to the commercial
customers and individuals for various reasons. It
fulfils the financial needs of the people. The easy

steps to start a finance company have been
discussed thoroughly in the above article and it is
important to register the finance company so as to
avail the benefits upon registration. Whether it is
starting off a new business venture or about taking

loans, a financial help from a recognized institution
is the best option to avail finances at the time of
need of funds. The finance companies serve and
extend their hand to help those who cannot access
mainstream banking and financial services. Hence,

finance company is the new road that many
entrepreneurs are engaging into. The Indian
economy has been witnessing a remarkable growth
and evolution in the financial services industry with

the establishment of several finance companies.

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TRUQUEST COMPANY

PARTICULARS PAGE NO.

Finance is a field of specialization that studies all aspects

of that money. There are many segments of this field by type—

which implements fiscal and monetary policies and the.

Innovative start-up to help customers build businesses

war, customers have turned to Wells Fargo for the solutions

We will continued helping customers go further by

business loans secured by gold jewellery, or Gold Loans,

The company’s customers are typically small

loan products, primarily comprising Gold Loans. The

A prevailing trend from the medieval period, most

The Indian money market is classified into: the

banking financial companies (NBFCs)). The unorganised

Prime Minister Indira Gandhi nationalised 54 banks in

then, the number of bank branches has increased from

branches, from 1,860 or 22% of the total number of

Since liberalisation, the government has approved

nationalised banks (like encouraging mergers, reducing

As of 2007, banking in India is generally mature in

sheets relative to other banks in comparable economies

GDP CONTRIBUTION OF FINANCE COMPANY

India’s financial services industry has

is expected to have 6.11 lakh HNWIs by 2025. This will

India is today one of the most vibrant global

with many companies announcing plans to increase their

The Association of Mutual Funds in India (AMFI) is

India’s Fintech space is expected to further fuel this

According to Goldman Sachs, investors have been

TRUQUEST is an Indian financial corporation and the

The company was incorporated as a private limited

TRUQUEST had imbibed a work culture that was based on

yet profound theory of "from excess or scanty, to

TRUQUEST PVT. LTD

“Let us not judge ourselves by the profit we make but by

he will not be misguided but his interests will

PRODUCT & SERVICES

 FOREIGN EXCHANGE SERVICES

 WINDMILL POWER GENERATION

 Be the most trusted, globally diversified institution

 continuous innovation through the smart use of

simplified and personalized experiences for its

 To attain globally best standards and become a

its purpose to move towards a greater degree of

 To build leading customer-centric businesses enabled

 To be the leading financial services company in our

 Our company is single minded in its determination to

 Be the premier community and business bank in the

We ensure that the highest standard of professional

●We are transparent and ethical in the way we conduct

●We are honest and fair and base our conclusions on

●We have a strong moral code and take responsibility of

As we continue to increase our reach in every corner of

●We respect our people's individuality and diversity.

●We conduct ourselves in a manner that reflects the

●We treat all our customers, employees and stakeholders

●We aim to execute flawlessly and deliver the highest

●We challenge ourselves to meet our goals and pursue

●We consistently strive to exceed the expectations of our

We keep our customers, employees and stakeholders at

●We focus on removing complexities.

●We deliver solutions that are simple and relevant.