INTRODUCTION

When you need some extra cash, you can get a gold loan by giving your gold jewellery to a
bank or financial institution as security. They will give you money in return. It's kind of like
when someone gets a loan to buy a house and uses the house as security. The bank doesn't
have to worry about losing money because they have your jewellery if you can't pay back the
loan.
Before you can get a gold loan, the bank will check to make sure your jewellery is real gold
and figure out how much it's worth.
The bank will also need to know some information about you, like your name, credit history,
and why you need the loan. This is to make sure you are a trustworthy customer.
Getting a gold loan is easy peas! First, the bank checks out your bling to see how much it's
worth. Then you fill out some paperwork to prove who you are. Once that's done, you and the
bank agree on how much money you can borrow. If you both agree, the loan gets approved
and the cash goes straight into your bank account. It's super quick and can all be done in just
a few hours!
WHAT ARE THE FEATURES OF THE GOLD LOANS
INTEREST RATES
When you want to get a loan using your gold, the interest rates can change depending on how
pure your gold is. The purer the gold, the more money you can borrow. In the public sector,
interest rates can be as low as 8% per year or as high as 18% per year. But in the private
sector, the rates can go up to 24% per year!
The RBI says that banks can give you up to 90% of the value of your gold as a loan, which
means you have to keep at least 10% of the value as a "haircut." Usually, banks will only give
you around 55% to 65% of the value of your gold as a loan, leaving them with a 35% to 45%
margin. This makes gold loans one of the safest options for banks. The loan to value ratio
(LTV) is the amount of money you can borrow compared to the value of your gold. For
example, if your jewellery is worth INR 10,000 and the LTV is 65%, you can borrow up to
INR 6,500.
Customer expectations can change for many reasons. Things like better processes, new
technology, different priorities, or better service from competitors can all make customers
want something different. In today's world, there are a lot of products fighting for attention
from customers. Some companies are trying to grow and get more customers, while others
might struggle. The winners are the ones who really understand what customers want, find
new opportunities, and create great products for their target customers.
Let's figure out what people need, find ways to make cool products for them, and then sell
those products to the right customers. Market research helps us understand what people want
and what other companies are doing. We can do market research by hiring a company to help
us or by asking students to do a project. Students can learn a lot by working on real marketing
problems and coming up with solutions. In this project, we used a type of research called
qualitative research, which means we watched and listened to people to learn about their
preferences. We collected data by asking people questions and studying information from
different sources. By doing this, we can make sure our products are what people really want.
So, this researcher spent two months working on a summer internship program all about gold
loans and other types of loans. To figure out how popular gold loans are in the market, the
researcher asked people to fill out a survey. This is called marketing research, which is
basically studying the market to make important decisions about selling products. It helps
companies figure out what customers need, come up with marketing strategies, and see if
their plans are working. Marketing research is super important because companies need to
understand their customers even if they're far away. By asking people to fill out surveys, the
researcher was able to gather a lot of helpful information about gold loans and other financial
products.
GOLD AND INDIAN SOCIETY
Gold is super valuable and everyone loves it. In India, people wear gold jewelry because it's
considered lucky. When the economy is shaky, gold is a safe bet. In the past year, the value of
gold went up by 30% In India, lots of people have gold. Most of it is in rural areas. Even
though the price of gold has gone up a lot, people in India don't sell their gold often. They
keep it for special occasions or emergencies. But, if they need money, they can use their gold
as collateral to get a loan.
Banks and other companies are now offering loans using gold as security. This is becoming
popular in cities too. People are starting to see the benefits of using their gold to get quick
cash. So, the gold loan market in India is growing fast
Gold loans are a way for people to get money by using their gold as collateral. This means
that if you don't pay back the money you borrowed, the lender can keep your gold. This idea
has been around for a long time in India, where gold has always been valuable. People used
to trade gold for things they needed, and now they can use it to get a loan. In India, especially
in states like Kerala and Tamil Nadu, people love gold jewelry. This has led to many
companies offering gold loans, like Mannapuram gold and Muthoot finance group. But
sometimes, people can get into trouble with these loans. In the past, some lenders charged
very high interest rates, up to 24-32%, which made it hard for borrowers to pay back the
money. When some finance companies went out of business in the 1980s, many people lost
their gold and their money.
DEFINATION AND PURPOSES
Gold loans are like borrowing money with your gold as a guarantee. You give the lender your
gold jewelry, coins, or bars, and they check to make sure it's real gold. Then they give you a
loan based on the value of your gold. Instead of just sitting around, your gold can help you
get money for things you need. Banks and other special money companies can give you a
gold loan. They usually give you up to 80% of what your gold is worth. When you pay back
the loan and interest, you get your gold back in the same condition. But if you can't pay, the
lender keeps your gold. Gold is great because it's easy to turn into cash and everyone agrees
it's valuable. In India, lots of people use gold for loans, even though pawn shops and
moneylenders are still popular. Financial companies are starting to offer gold loans too. The
gold market has been booming lately, with a nearly 40% increase in activity. This growth is
largely thanks to NBFC’s, which are lending institutions that have a lot of branches, offer
high loan amounts compared to the value of the gold, and process loans quickly. Banks are
also getting in on the action and are becoming more involved in the gold market. With all this
growth, there are more rules and regulations in place to make sure lending practices are fair
and safe. The RBI, which is like the boss of all banks in India, keeps an eye on things to
make sure there isn't too much risk if gold prices suddenly drop. When you get a loan using
gold as collateral, there are different fees you might have to pay, like processing fees, interest
charges, and penalties for paying late or paying off the loan early. Some lenders might not
charge all of these fees, so it's important to read all the terms and conditions carefully before
taking out a loan.

ESSTIENTIAL DOCUMENTS FOR AVALING LOAN

Getting a loan using your gold is super easy and quick! You can just go to a place that isn't a
bank and get the money you need in just 15 minutes. You won't need as much paperwork as
you would at a bank - usually just showing your ID and proving the gold is yours. But be
aware, these places might charge you more interest because they don't check your credit as
carefully as a bank would.
Here are some documents you'll usually need when applying for a loan, but remember that
the list might be different depending on the lender:
1. A form of ID like a Voter's ID, Passport, or Driver's License
2. A document with your signature on it, like a Passport, Voter's ID, or Driver's License.
Make sure it's something with your real signature on it.
When you want to borrow money, you need to show where you live with things like a ration
card or a bill. You also need to have some pictures of yourself. Make sure you can pay back
the loan before you get it. Look around at different places to see who has the best deal before
you pick someone to borrow from.
A gold loan is when you use your gold jewelry, coins, or bars as collateral to get a loan. You
can use this loan for anything you need, except for doing anything illegal or gambling in the
stock market. Non-Banking Financial Companies (NBFCs) have fewer rules about what you
can use the loan for. You don't have to tell them how much money you make to get the loan,
and even if you don't have a job, you can still get one. The loan is given out quickly with less
paperwork, so you can use it right away. NBFCs can give you the money in just a few
minutes, while banks might take a day or two. With a gold loan, you can borrow more money
compared to the value of your gold. NBFCs can give you up to 95% of the gold's purity,
while banks usually only give up to 75%. There's no set time you have to pay back the loan,
you can even pay it back the next day if you want. Most people take around 90-100 days to
pay it back. The interest rate you pay depends on how long you borrow the money for and
how much you borrow. NBFCs usually have higher interest rates, around 25%, while banks
might be around 12-15%. The interest rates are fair as long as you don't borrow more than 50-
60% of the gold's value. You can pay back the loan all at once or in smaller payments over
time.
GOLD LOAN IN INDIA
When the price of gold goes up, so does the amount of money you can borrow against it.
Some financial companies have made a lot of money by offering loans backed by gold. They
like it because it's a safe way to lend money. And since it's less risky, they can offer lower
interest rates compared to other types of loans. Getting a gold loan is easy - you don't need a
lot of paperwork and you can get the money quickly. Gold loan companies have made it
easier to get loans by expanding to more places. They offer different options for loans, have
simple paperwork, and let you borrow a lot of money compared to the value of your gold.
The size of gold loans has gone up because the price of gold has gone up and it's harder to get
other types of loans from banks.

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AND-ATTITUDE-TOWARDS-GOLD-LOAN-1-pdf

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AND-ATTITUDE-TOWARDS-GOLD-LOAN-1-pdf

CHAPTER 2

REVIEW OF LITERATURE
Churiwal and Shreni in 2012, people started wanting more gold. They talked about how gold
loans used to be given by pawn shops, but now they are given by other companies. This is
important for both the people borrowing the money and the people lending it because it has
changed from being done by traditional lenders to more organized ones. They also talked
about how borrowing money is getting more expensive because loans for agriculture are not
as cheap anymore. Companies that are not banks are giving out more gold loans than regular
banks. This is helping more people in India get the money they need.

Dnyanesh N In 2012, it was noted that the market for Organised Gold Loans has been getting
bigger and bigger. This is because more and more people are starting to see Gold Loans in a
different way and are needing more money. People's views on Gold Loans have changed a
lot. The author talks about how people's views are changing and how they need more money.
He also mentions how there is a higher demand for loans.
Nandakumar Gold loans should be included in this plan. In rural areas, people don't have easy
access to banks, so they often invest in gold instead. This causes a lot of problems for Indian
farmers. They need help getting loans quickly and easily. The author of this study talked
about the struggles farmers face and how hard it is for them to use banks in rural areas.

VERMA In 2012, the Reserve Bank of India (RBI) decided to change the rules for Non-
Banking Finance Companies that lend money against gold. They increased the amount of
money these companies can lend out to 75% of the value of the gold, up from 60% before.
This change was made to help people make better use of their gold that's just sitting around.
The RBI hopes that this change will help these companies grow and lend out more money.
The RBI noticed that these companies weren't lending out as much money as they could, so
they decided to make this change. This change was first made in March 2012, and now it's
being increased even more. This change is important for these companies because it affects
how much money they can lend out and how they can make money from people's gold.

Nair Vinay and Verma Geeta IN 2010 THE India, there is a big difference in how poor and
rich people save their money. The rich like to spread their savings out in different ways, but
the poor often put all their savings into gold. This is especially true in rural areas where there
aren't many banks around. In India, gold is not just something nice to have, it's really
important. People see gold as a way to keep their money safe from losing value over time. It's
also a big part of important events like weddings, where gold is a popular gift. The author
talked about how poor people in India like to save their money in gold, which can also be
helpful when they need to borrow money.

DAVY in 2010 has started in the, market survey that Gold Loans are a way to borrow money
using your gold jewelry as collateral? Basically, you give the bank or financing agency your
gold jewelry and they give you a loan worth up to 60% of the value of the gold. Gold is a
soft, yellow metal that is very valuable and can be found in mines or rivers. It is used for
jewelry, decorations, and even as a form of money. Gold is also a good conductor of heat and
electricity. So, if you ever need some extra cash, you can always consider getting a Gold
Loan

Mitra Ajay, Managing Director of India, The Middle East & Turkey, along with the World
Gold Council, have stated that banks and financial institutions accepting gold as collateral for
loans is a big deal. This will make people trust gold even more as an investment. In the past,
jewelry could be used as collateral through informal channels and non-banking financial
companies, but not many banks were doing it. Only a few banks had the right setup to handle
the valuation and storage of gold. Now, banks are getting into the gold bar business, making
it easier to store gold. They are even accepting gold medallions for loans. This means that
gold is becoming more than just a commodity - it's becoming a valuable asset that people will
want to invest in. Biju Pillai from HDFC Bank says that they have seen a lot of growth in
their gold loan business because using gold as collateral means lower interest rates and faster
loan approval. This change was made possible by a ruling from the RBI in February 2011
allowing banks to lend to non-banking financial companies.

RESEARCH AND METHODOLOGY

In this chapter, we will talk about how we conducted our study to achieve our goals. We will
discuss the research design, the group of people we studied, how we collected data, and how
we analysed that data.

Research is like a scientific treasure hunt for information on a specific topic. It involves
setting goals, gathering data, using tools to analyse that data, and coming up with new ideas.

Research Methodology is a way to solve research problems in a systematic manner. It's like a
science that studies how research is done in an organized way. Researchers follow certain
steps and use logic to study their problems. It's important for researchers to understand not
only the research method but also the methodology behind it. The procedures used by
researchers to describe, explain, and predict phenomena are called methodology. Methods are
the steps used to generate, collect, and evaluate data. This means that researchers need to
design their methodology based on their specific problem, as each problem may require a
different approach.

The methodology section is like the game plan for researchers. It shows how they plan to
study people or describe social settings. Basically, it lays out exactly what they want to study
and how they're going to do it.

The researcher worked really hard to gather all the information needed to fully understand
this topic.

Collecting data is a crucial part of any project. The success of your project depends on how
accurate and thorough your data collection is. It's a big step that requires time and effort. Data
collection is super important in research because without the right data, you can't do your
research properly.

RESEARCH DESIGN

DESCRIPTIVE DESIGN; Statistical research, also known as descriptive research, is all

about describing the data and characteristics of what you're studying. The main focus is on
looking at numbers like frequencies and averages, as well as other statistical calculations.
While this type of research is super accurate, it doesn't really dig into the reasons behind why
things are the way they are. Descriptive research is perfect for when you want to get a better
grasp on a topic. For example, imagine a company that makes frozen meals suddenly realizes
that more people want fresh meals instead. They don't know much about fresh food, so they
have to do some research to figure it all out.

SAMPLE DESIGN

SAMPLE SIZE: For my project, I asked 100 people to answer some questions. But only 80 of
them actually tried to answer all the questions. The other 20 people didn't even try to answer
all the questions because they haven't taken out a gold loan. They only answered 5 questions.

SAMPLER METHODE: We picked out the sample for our study by asking people we knew
and even some we didn't know. We sent out emails and visited people in person to chat with
them and have them fill out a questionnaire. It didn't matter if they had taken out a gold loan
or used our services before, we just wanted to hear from as many different people as possible.
DATA SOURCE: When you do research, you gather information in two ways: primary data
and secondary data. Primary data is like doing your own detective work by talking to people
and asking questions. Secondary data is like using clues from books, websites, newspapers,
and other sources to help you out. Both types of data are important for finding answers to
your questions.

DATA COLLECTION METHODE

SURVEY METHODE: We picked out the sample for our study by asking people we knew
and even some we didn't know. We sent out emails and visited people in person to chat with
them and have them fill out a questionnaire. It didn't matter if they had taken out a gold loan
or used our services before, we just wanted to hear from as many different people as possible.

DATA COLLECTION TOOL: We made a survey to gather important information. We asked

people questions and wrote down their answers. This was how we collected our data for our
project.

STATEMENT OF THE PROBLEM

Gold loans are becoming a popular way for people to get money from banks and other
financial institutions. Some lenders are organized, like banks and NBFCs, while others are
not organized. More and more organized lenders are getting into the gold loan business. This
study wants to find out more about who is interested in getting a gold loan, like their age, job,
and how much money they make. Let's learn more about the different interest rates and
options available for borrowers from organized and unorganized lenders.

Objectives of study
1. To fins out the customer perception towards gold loan
2. To find out the customer towards gold loan
CHAPTER 3

COMPANY PROFILE

For over 61 years, the Manappuram Group has been a strong and trustworthy company led by
Mr. V.P. Nandakumar. With 9 companies and over 1,950 branches in 19 states in India, we
have a total business worth over Rs. 70 billion. We have a team of over 14,500 employees
and more than 5 million customers. We are proud to be India's largest listed and highest
credit-rated gold loan company.

We offer lots of ways to help you with your money so you can have an easier life.

Back in 1949, a guy named Mr. V.C. Padmanabhan started a company called Valapad. He was
a real go-getter and had big dreams. At first, the company just lent out money to people in a
small way. But Mr. Padmanabhan was super honest and smart, so the company grew quickly.
When he passed away in 1986, his son, Mr. V.P. Nandakumar, took over. He used to work at a
bank, but now he's the big boss at Valapad. Mr. Nandakumar is really good at business and
has helped the company grow even more. He's all about using technology to make cool stuff
for customers. Valapad is doing great thanks to him!

Back in 1992, the big boss of the Group, Manappuram General Finance and Leasing Limited
(MAGFIL), was born. This happened right after the Government of India made some changes
to the economy. They wanted to help out small and medium businesses by using leasing as a
way to grow. MAGFIL quickly became a leader in this field and achieved a lot of cool things
in a short amount of time.

 The first NBFC from Kerala just got a Certificate of Registration from RBI! And you
know why? Because they are really good at making sure all their depositors get their
money back in full. How cool is that
  MAGFIL, a company from Kerala, just got a super high credit rating of MA+ from
ICRA, which is like a big stamp of approval from the RBI. This means they're really
good at paying back the money they owe on time. And get this - they've grown super-
fast to become one of the top NBFCs in South India in just a short amount of time.
How cool is that
 The FIRST NBFC from Kerala just got a super cool rating for its Secured Non-
convertible Redeemable Debenture issue worth Rs. 50 million. How awesome is that
 First NBFC from Kerala to go for public issue
 First NBFC from Kerala to issue bonus shares at the ratio 1:1.
 First NBFC from Kerala to receive Foreign Direct Investment (FDI).
 first NBFC from Kerala to receive AD-II (authorised dealer – II) license from RBI
 First NBFC from Kerala to obtain broker’s license from IRDA (insurance regulatory
& development authority)
 First NBFC in the country to receive a Short-term rating of A1+ by ICRA and P1+ by
CRISIL. These are the Highest Short-term Rating awarded by ICRA
and CRISIL to any Corporate in India and Long-term rating of LA+ for its working
capital limit
This company's stocks are available for trading on the Mumbai, Chennai, and Cochin Stock
Exchanges. They are really popular on the Bombay Stock Exchange (BSE) and are being
bought and sold at prices way higher than their face value.
Back in 1993, this awesome Group started Manappuram Benefit Fund Limited, a special
company that helps out its members. And guess what? Now it's one of the coolest Nidhi
Companies in South India!
Back in 2000, Manappuram Chits (I) Limited was created as a chit fund company in Kerala.
It was made to follow the Chit Fund Act of 1982, a law made by the Indian government. This
law was hard for a lot of chit fund companies in Kerala to follow.
In 2002, the company got a special license from the Reserve Bank of India to start a Forex
business. This was part of their plan to try out new things and grow their company in
different ways.
Our company is now offering a super-fast way to send money instantly! We've teamed up
with Xpress Money, Constar, Instant Cash, Zoha, Eremite, and Money Gram to make this
happen. Instant Money Transfers are the quickest way to send money to or from India. This is
great news for NRIs who want to send money to their family back home. With this service,
your relatives in India can receive the money within just a few minutes of you sending it.
How cool is that?
The company's main focus is giving out Gold Loans, but they've also started doing other
things to make money, like selling insurance. In 2006, they got a license to sell insurance
from IRDA. Now, they can offer all kinds of insurance products to their customers that fit
their needs.
So basically, this company is like a financial superstore where you can get everything you
need in one place. They even have a separate company just for fee-based stuff called
Manappuram Insurance Brokers Private Limited (MAIBRO). It's owned by MAGFIL, which
is like the main company in the group.
Back in 1993, The Group got this cool ISO 9001-2000 certification. It's like a badge of
honour showing that they meet super high-quality standards all around the world.
Our company is awesome because our team is super dedicated and motivated. We believe
that investing in our people is the best investment we can make. That's why we have a top-
notch training program that's one of the best in our industry. We offer in-house training
courses all the time to help our staff improve their skills and be more efficient at their jobs.
We want to make sure our customers are always happy, so we make sure our employees
know exactly what they need to do to make that happen. It's pretty cool to be a part of a team
that's always striving to do their best
The Group really cares about helping others. They decided to start the Manappuram Institute
of Management (MAINMA) in September 2005 to help train future leaders in India. They
wanted to make sure that the school would be known all over the country for its great
reputation.
Guess what? Our Company just made a super cool deal with M/s. Hudson Equity Holdings
Limited and Sequoia Capital India Investment Holdings! They're giving us a bunch of money
to help us grow our business. Basically, they're buying special shares from us for Rs.100
each, totalling Rs. 468 million. Later on, these shares will turn into regular shares of our
company. Once that happens, these investment companies will own a big chunk of our
company - almost 30%! We're planning to use this money to open more branches all over the
country and expand our business in gold and vehicle loans. How awesome is that
In November 2008, the company got a big boost of money - Rs. 1 billion and 80 million -
from some fancy firms in the UK and the US. The UK company Ashmore Alchemy, which is
a mix of Ashmore and Alchemy, put in Rs. 320 million through their investment group in
Mauritius, called AA Development Capital India Fund, LLC. It's like the company got a big
piggy bank filled with lots of cash!
Since our company has been growing bigger and doing more stuff, we decided to hire Earnest
& Young, a really famous company, to be our auditors.
The company wants to become a big player in the country by opening lots of branches
everywhere. They want to be like a financial superstore that helps customers with all their
money needs. They want to make life easier for their customers.
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