INTRODUCTION

Meaning of financial services:

Financial services is broad range of more specific activities such as banking, investing, and
insurance. Financial services are limited to the activity of financial services firms and their
professional, while financial products are the actual goods, accounts, or investments they provide.

Characteristics of Financial Services

1. Customer-centric: Financial services are usually customer focused. Financial Services are
provided depending the need of customers for example, leasing finance service may be
needed by an industrial customer, while merchant banker’s services may be needed by a
company issuing new equity share in the market.
Financial services firms like other service firms continuously in touch with their customers so
that they can design products which can cater to the specific needs of their customers.

2. Intangibility: Financial services are intangible in nature. In a highly competitive global

environment, brand image is very important. Unless the financial institutions providing
financial products and services have good image enjoying the confidence of their clients, they
may not be successful.

3. Concomitant: Production of financial services and delivery of these services have to be

concomitant. Both these functions i.e., production of new and innovative financial services
and supplying of these services are to be performed simultaneously.

4. Perishable in nature: Like other services, financial services also require a match between
demand and supply. Services cannot be stored. They have to be supplied when customers
need them.

5. Dominance of human element: Financial services are dominated by human element. Thus,
financial services are labour intensive. It requires competent and skilled personnel to market
the quality financial products.

6. Advisory: Financial services can be of three types i.e., a fund based or a fee-based or both. In
case of fee-based services, the advisory functions are dominant. Issue management, registrar
of issue, merchant banking, pricing of securities etc. are few examples of advisory financial
services.

7. Heterogeneity: Financial services are customized services. It cannot be uniform for all clients.
Financial services vary from one client tp other. Institutional client requirements,
Differ from individual client. After analysing the needs of the clients, financial institutions
offer customized financial services to the clients.
8. Information based: Financial service industry is an information-based industry. It involves
creation, dissemination and use of information. Information is an essential component in the
production of financial services.

Functions of financial services:

Financial services, through the network of financial institutions, financial markets and
financial instruments serve the needs of individuals, institutions and corporate. In essence,
orderly functioning of the financial system depends to a great deal, on the range and the
quality of financial services extended by the financial intermediaries. Specifically financial
services perform following functions for the orderly development of an economy.

1. Mobilization of funds: A financial service helps in mobilizing fund from investors,

individual, institutions and corporate entities. These funds are mobilized through different
financial instruments like equity shares, bonds, mutual funds etc.

2. Effective utilization of funds: These financial services also help in effective utilization of
mobilized funds. Financial services helps in this regard through services like factoring,
securitization, credit rating etc. Services of Credit Rating Company enables inventions to
make wise and informed decisions related to investment. Similarly merchant banking services
helps companies in mergers and acquisitions.

3. Provision of liquidity: The financial service industry promotes liquidity in the financial
system by allocating and reallocating savings and investment into various avenues of
economic activity. It facilitates easy conversion of financial assets into liquid cash.

4. Creation of employment opportunities: The financial service industry creates and provides
employment opportunities to millions of people all over the world.

Significance of financial services:

1. Channelizing the funds for economic growth and development of a country and implementing
monetary and debt management policies of the government.

2 Financial services from the major part of the gross domestic product.

3 It ensures there is no shortage of fund of productive venture.

4. It reduces the cost of transaction and borrowing by providing an adequate an financial structure
and system.

5. It helps in making good financial decision.

BANK PROFILE
 BANK PROFILE

Kokan Mercantile Co-operative Bank Ltd is a multi-state cooperative bank mainly known as
Kokan Bank, has been serving the community for the past fifty years in the entire Kokan region
(Western Maharashtra) with 25 branches spread across in Greater Mumbai, Thane, Raigad,
Ratnagiri and State of Goa.

Established in 1969 as a cooperative credit society by a small group intellectuals and local
businessmen as the Ratnagiri Mercantile Co-operative Credit Society with 105 members and
Share Capital of mere Rs.11,200, has grown over the years into a Rs.1,000 Crores business entity
in 2018. With the vision of its founders and passage of time, the operations of the bank widen in
the entire Kokan region, and hence the name of the banks was changed as “The Kokan Mercantile
Co-Op. Bank Ltd.” in the year 1977.

The Bank has played an important role in catering to all the financial and banking business needs
of its customers. The main important motive of the bank is service, upliftment and economic
growth of the region and its people.

Owing to its financial stability and committed to the growth, the bank has been accredited with
“A Class” audit certifications.

Today the Bank is having branches at prominent locations at Mumbai viz. Mazagaon, Mandvi,
Kurla, Govandi, Jogeshwari and Thane District viz. Thane, Kuasa (Mumbra), Mira Road, Kalyan,
also at Vashi and Nerul in Navi Mumbai. It has connected almost all parts of Raigad and
Ratnagiri Districts also including Panji in the State of Goa.

The Board of Directors are always committed to the growth and are planning to extend its
branches bases in near future, if permitted by the Reserve Bank of India.

It is proud moment for the Bank for receiving three awards from different institutes, for the year
2017 – 2018 as detailed below:

1. 2nd Best Bank for deposit of Rs.350 crore to Rs.600 crore category by the Maharashtra Urban
Co-operative Banks Federation Ltd., Mumbai.

2. 2nd Best Bank on our Bank for deposit of Rs.501 crore to Rs.2000 crore category by the
Brihan Mumbai Nagri Sahakari Banks Association Ltd., Mumbai.

3. Banco Blue Ribbon 2018 Award to the Bank in All India Urban Banks Category with a
Deposit between 500 to 625 crores by Avies Publication, Kolhapur
NATURE OF FINANCIAL SERVICES:

1 Customer Oriented: Financial services are customer-focused services that are offered as
per the requirements of customers. Financial institutions properly study customer needs before
designing and offering such services. They are meant to fulfill the specific needs of a customer
which differs from person to person.

2 Intangibility: These services are intangible which makes their marketing a challenging
task for financial institutions. Such institutions need to focus on building their brand image by
providing innovative and quality products to customers. Firms enjoying better credibility in
market are easily able to sell off their products.

3. Inseparable: Financial services are produced and delivered at the same time simultaneously.
These services are inseparable and can't be stored in advance. Here production and supply
function both occurs at the same time.

4.Manages Fund: Financial services are specialized at managing funds of people. These services
enable peoples in allocating their idle lying funds into useful means for earning revenues.
Financial services provide various means to people for converting their savings into investment
.
5. Financial Intermediation: These services does the work of financial intermediation as it
brings together the lender and borrower. Financial services mobilize the funds of people who are
having enough of it and made it available to the one who are in need of it.

6. Market Based: Financial services are market based which changes as per the changing
conditions. It is a dynamic activity which varies as per the variations in socio-economic
environment and varying needs of customers.

7. Distributes Risk: Risk distribution is the key feature offered by financial services. These
services transfer the risk of an individual not willing to take among different persons who all are
willing to bear it. Financial institutions diversify the risk and secure people againe damages by
providing them various insurance policies.
 IMPORTANCE OF FINANCIAL SERVICES:

Promoting investment:

The presence of financial services creates more demand for products and the producer, in order to
meet the demand from the consumer goes for more investment. At this stage, the financial
services comes to the rescue of the investor such as merchant banker through the new issue
market, enabling the producer to raise capital.
The stock market helps in mobilizing more funds by the investor. Investments from abroad is
tracted. Factoring and leasing companies, both domestic and foreign enable the producer not unly
to sell the products but also to acquire modern machinery/technology for further production.

Promoting savings:

Financial services such as mutual funds provide ample opportunity for different types of saving In
fact, different types of investment options are made available for the convenience of pensioners
as well as aged people so that they can be assured of a reasonable return on investment without
much risks.
For people interested in the growth of their savings, various reinvestment opportunities are
provided. The laws enacted by the government regulate the working of various financial services
in such a way that the interests of the public who save through these financial institutions are
highly protected.

Minimizing the risks:

The risks of both financial services as well as producers are minimized by the presence of
insurance companies. Various types of risks are covered which not only offer protection from the
fluctuating business conditions but also from risks caused by natural calamities.

Insurance is not only a source of finance but also a source of savings, besides minimizing the riks.
Taking this aspect into account, the government has not only privatized the life insurance but also
set up a regulatory authority for the insurance companies known as IRDA, 1999 (Insurance
Regulatory and Development Authority).

Maximizing the Returns:

The presence of financial services enables businessmen to maximize their returns. This is possible
due to the availability of credit at a reasonable rate. Producers can avail various types of credit
facilities for acquiring sets. In certain cases, they can even go for leasing of certain assets of very
high value.

Factoring companies enable the seller as well as producer to increase their turnover which also
increases the profit. Even under stiff competition, the producers will be in a position to sell their
products at a low margin. With a higher turnover of stocks, they are able to maximize their return
Economic growth:

The development of all the sectors is essential for the development of the economy. The financial
services ensure equal distribution of funds to all the three sectors namely, primary, secondary and
tertiary so that activities are spread over in a balanced manner in all the three sectors. This brings
in a balanced growth of the economy as a result of which employment opportunities are improved

Economic development:
Financial services enable the consumers to obtain different types of products and services by
which they can improve their standard of living, Purchase of car, house and other essentials as
well as luxurious items is made possible through hire purchase, leasing and housing finance
companies. Thus, the consumer is compelled to save while he enjoys the benefits of the assets
which he has acquired with the help of financial services

TYPES OF LOANS & FACILITIES:

A) GOLD LOAN

Objective: To provide finance to (Term Loan/Overdraft) to meet urgent obligation of customer

against pledge of Gold Ornaments.

Limit to individual Borrower - maximum Rs. 10,00,000/-

*Period and amount of loan:-

If the Loan is Upto Rs. 200,000/- than the period for these loan should be 12 months

The Customer should be given 75% of the valuation of (Term

Loan/Overdraft) of pledged Gold Ornaments

If the Loan is Above Rs.2,00,000/- than the period for these loan should be 36 Months and should
include EMI

The Customer should be given 75% of the value (Term loan) of pledged Gold Ornaments
Valuation:

It has been decided that gold Jewellery accepted as security / collateral will have to be valued at
the average of the closing price of 22 carat gold for the preceding 30 days as quoted by the India
Bullion & Jewellers Association Ltd. If the gold of purity less than 22 carat, the purity of the gold
shall be valued proportionately.

*Bullet Repayment :-(Loans upto Rs.2.00 lakhs)

As per RBI guidelines loan against gold ornaments can be granted under Bullet repayment
scheme with the approval of the Board of Directors up to the limit of Rs.2.00 lakhs on the
following conditions:
The amount of loan sanctioned should not exceed Rs.2.00 lakhs at any point of time to a Single
borrower

The period of loan shall not exceed 12 months from the date of sanction.

The interest should be charged on monthly basis but will become due for payment along with the
principal only at the end of 12 months from the date of sanction.

The Bank should maintain a loan to value (LTV) Ratio 75% of outstanding Amount of loan along
with interest ongoing basis, failing which the a/c will Treated as NPA.

Stamp papers upto Rs 50,000.00 of gold loans is waived.

Gold loans above Rs 1.00 lakh is to be given to Regular members of the Bank (Regular
membership is for Rs 100.00)

*Repayment of Loans above Rs.2.00 lakhs:

The repayment should be done in 36 months or period as revised by the bank from time to time in
regular installments.

*Security:-
Gold ornaments pledged duly valued and appraised by Valuer appointed by Bank. The packet be
signed and sealed in Presence of Valuer and Borrower and kept in the custody of Branch Official

B) LOANS AGAINST BANK'S OWN DEPOSITS:

Bank gives loan to the customer on the basis of its own bank deposit such as Fixed
Deposit (FD)
*Interest: -In case of 1st party, 1% more than the F.D. interest will be charged and if the deposit of
third party (other than family members such as Father, Mother, Brother, Son, Daughter & spouse)
is taken as security, then 2% more than the term deposit interest will be charged

*Security: -Bank's lien on term deposit Certificate be pledged in the Custody of Bank Duly
discharged by the borrower and lien noted in the system. In case of Third party term deposit,
consent letter from actual term deposit. Account Holder is mandatory and it should be availed
from the same branch only.

* Repayment:-
Till the maturity of term deposit
*In respect of loans against own deposits, stamp papers need not be obtained. However, if any
loan is granted against third party's deposit, in such cases, Rs 200.00 stamp paper is to be
compulsorily obtained.

C) UNSECURED LOANS:

Unsecured advances shall include clean overdrafts, loans against personal security, clean bills or
Multani Hundies purchased or discounted, Cheque purchased and drawals allowed against
cheques sent for collection but shall exclude:

• advances backed by guarantee of the central or state governments, public sector financial
institutions, banks and Deposit Insurance & Credit Guarantee Corporation;

• advances against trust receipts

• advances granted to salaried employees against personal security, provided that the Co-
operative Societies Act of the State concerned contains an obligatory provision for deduction of
periodical loan instalments by the employer out of the employee's salary / wages to meet the
bank's claims and provided further that the bank has taken advantages of this provision in
respect of each of such advances.

• cheques issued by governments, public corporation and local self governing institutions.
• Demand drafts purchased.
• The secured portion of a partly secured advances.

D) HOUSING LOANS & HOUSE REPAIR LOANS:

Bank grants loan under housing scheme for construction, purchase or construction of house/flat.
Presently the maximum amount of housing loan can be sanctioned to the extent of Rs 140.00
lakhs, which is subject to revision as per RBI guidelines.

Repayment: -
Maximum 240 months including moratorium or repayment Holiday.
If the applicant aged less than 40 years old, the repayment period including moratorium period
may be extended to 20 years.

Security: -
The following are the main ingredients for creation of security: Obtaining of search report of the
property, Permission from the Local Authority, N.A permission, Municipal permission, Noting of
Bank's lien with concerned society/authority, etc.
If the property is situated in the district area, the Boja is to be noted with Talathi, Gram
panchayat, Tehsildar, Nagar parishad along with latest search report of the property. Mortgage can
be either registered.

E) Under construction flat/shop:

Our Bank grants loans for the purchase of flats which are under construction, provided the
following conditions are met:

i)The builder should be a reputed one in the market ii) That particular
project should have been registered with RERA.
iii)Salaried employees who have got reasonably good earnings with repayment capacity is found
satisfactory.
iv) For Bank's safety side, a collateral security of either flat/shop with equivalent amount of loan
should be obtained at the time of first disbursement of loan and such collateral security can be
released to the borrower after the completion of the building and obtention of Occupancy
Certificate from the BMC/other competent authorities. Primary security will be the flat which is
under construction and expected to be completed on a future date which will continue to be the
primary security till closure of the loan. However if the applicant is employed in a good company
and net salary is sufficient to pay the installment amount for recovery from his salary, then we can
waive this condition.

In the same way, Bank grants loans for the purchase of shops/commercial spaces which are under
construction.

F) AGRICULTURE & ALLIED LOANS:

Agriculture Loans are extended to individual farmers [including Self Help Groups (SHGs) or
Joint Liability Groups (JLGs), i.e. groups of individual farmers engaged in Agriculture and Allied
Activities, viz., dairy, fishery, animal husbandry, poultry, bee-keeping and sericulture (up to
cocoon stage), short term loans for raising crops. For the assessment of these agriculture and
allied loans, the scale of advance and its operations have to be studied and these technical
information can be obtained from District Central Co-op Banks who have direct link with
NABARD.

G) EDUCATION LOANS:

PURPOSE
Educational Loan Scheme aims at providing financial support from the banking system to
meritorious students for pursuing higher education in India and abroad. The main emphasis is that
a meritorious student, though poor, is provided with an opportunity to pursue education with the
financial support from the banking system with affordable terms and conditions.
Students' Eligibility

a) The student should be an Indian National

b) Student should have secured admission to a higher education course in recognized institutions
in India or abroad through Entrance Test/ Merit Based Selection process/CAT/CET/JEE/NEET,
etc after completion of HSC (10 plus 2 or equivalent). c) Passed HSC/Matriculate for Technical
& job oriented courses

*Joint Borrower: -
The joint borrower should normally be parents/guardian of the student. In case of a married
person, joint borrower can be either spouse or the parents / parents-in-law.

*Studies in India (Indicative List)

1)Approved courses leading to graduate/post graduate degree and PG diplomas conducted by

recognized colleges / universities recognized by UGC / Govt. / AICTE / AIBMS / ICMR etc.

2) Courses like ICWA, CA, CFA etc.

3) Management Courses conducted by IIMS, IITs, IISc, XLRI. NIFT, NID etc.

4) Regular Degree / Diploma courses like Aeronautical, pilot training, shipping, etc., approved by
Director General of Civil Aviation / Shipping, if the course is pursued in India.

5) Approved courses offered in India by reputed foreign universities.

Studies Abroad: -

1) Graduation: For job oriented professional / technical courses/non technical courses offered by
reputed universities.

2) Post graduation: MCA, MBA, MS, etc.

3) Courses conducted by CIMA- London, CPA in USA etc.

4) Degree / diploma courses like aeronautical, pilot training, shipping etc provided these are
recognized by competent regulatory bodies in India / abroad for the purpose of employment in
India / abroad.
5) Expenses considered for Loan

6) Fees payable to college/school/hostel Examination/Library/Laboratory fee

7) Caution deposit, building fund/refundable deposit supported by Institution

*REPAYMENT

The loan should be repaid in 84 EMI with an initial moratorium period of course period plus
maximum period of 12 months. During moratorium period, interest to be charged on simple
interest basis. At the end of course period plus maximum period of 12 months, the accrued
interest on the loan (principal) will be added to the principal and fresh EMI is to be fixed for a
period of 84 months by the branch. At the time of fixing the EMI, the interest will be charged on
monthly compound basis. However, if the student gets Employment within 12 months of his/her
course completion. repayment of EMI shall be preponed to two months after he/she gets the
course completion, repayment of EMI shall be preponed to two months after he/she gets the job.

H) Mortgage loan:

(These loans are purpose specific)

Any business loan backed by immovable properties such as land and buildings, flats, shops, etc

Objectives:
*To provide finance to meet the following urgent needs.

*Personal needs covering Children's higher education, travels, house repair/alteration, Children's
marriage, medical emergencies.

*This scheme provide finance against immovable Property/Commercial/Residential in order to

offer instant solutions relating to business needs or for personal needs.
 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.

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 instalment 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

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. Kmcb Bank, 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.
 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’ 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.

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. Nowall are not much interested in
money investment or much expenses. Theyare 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. Ifthere 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.

Gold Loan Process

• Visit:

Walk into your nearest Muthoot Fin Corp 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.

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)

• 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.
 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 KOKAN MERNTILE CO-OP BANK LTD.

STRENGTHS:

▪ Kmcb Bank strength is their KMCB group which is very famous in gold loan area from the
very long time and theirexperience in this industry help Kmcb Bank to make base clear
because customer’s faith in Kmcb 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:

▪ Kmcb Bank is settled in this field but nowadays many banks are coming with the various
facilities and low interest rate so customers are sometime changing their preference to other
bank. Kmcb Bank 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. Kmcb Bankhave 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.

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 Kmcb Bank, they will lose
customer. So new entrants are the biggest threat of company.
 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 KOKAN MERCANTILE CO-OP BANK.

• To identify customer’s satisfaction level towards gold loan provided by

KOKAN MERCANTILE CO-OP BANK.