A PROJECT REPORT ON

Analysis or market scooping of gold loan and other loan products

FOR

INDIA INOLINE FINANCIAL LTD ”

Submitted to

Marwadi Education Foundation’s Group of Institutions

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

Master of Business Administration

Under

Gujarat Technological University

Under the guidance of

Faculty Guide: Company Guide

Prof. Shri ram Kadiya Samir Bagatharia

Submitted

Name: Kalariya Jaykumar A.

Enrolment No.: 147340592042

MARWADI EDUCATION FOUNDATION GROUP OF INSTITUTE

JULY 2015

Affiliated by

Gujarat Technological University

MBA PROGRAM

MBA Semester III

1

DECLARATION

I am jay Kumar avacharbhai Kalariya hereby declare that the summer training

project entitled “ Analysis or Market Scoping of Gold Loan and other Loan

Products” is own original work and my indebtedness to other work publication,

refers, if any, have been duly acknowledged.

PLACE…... Jay kalariya

DATE……………

2

ACKNOWLEDGEMENTThis project bears imprint of all those who have directly or indirectly helped

and extended their kind support in completing this project. For providing

streamed guidelines since inception, till the completion of the project. I would

also thank IIFL Gold Loan employees and customers, whom I met during the

course of this project, for their support and for providing valuable information,

which helped me, complete this project successfully. At this moment I also

thank almighty God for the blessings showed upon me, my parents for their

support and care and also my friends for their valuable suggestions. This

project report is a collective effort of all and I sincerely remember and

acknowledge all of them for their excellent help and assistance throughout the

project

3

EXECUTIVE SUMMARYThe title of the Project done at India Info line Finance Limited is “Market

Scoping-Gold Loan” with special reference to IIFL shanala Road Branch.

There are many reasons why customer expectations are likely to change over

time. Process improvements, advent of new technology, changes in

customer's priorities, improved quality of service provided by competitors are

just a few examples. In today’s competitive world there are many goods

chasing few customers some are trying it expands their size and share of

existing market. As a result there are loser and winners. Winners are those

who carefully analyze needs identify opportunities and create aloe rich offers

for target customer.

The objective of the market research to determine the demand and supply

and use of the product and competitors study so as to get the total market

scenario of the product for analyzing market problem research is needed. A

firm can obtain market research in a number of ways. It can hire market

research firm or it can ask student to design and carry out market research

project. These marketing problems and opportunities if entrust to the student

of marketing. Especially when they seek the same during the project gives

opportunities to apply their theoretical knowledge and managerial knowledge.

The type of research was qualitative research. Qualitative research is

collecting, analyzing and interpreting data by observing what people do and

say. The sources of the data for the study were primary and secondary data.

The questionnaire was prepared and administered to collect the relevant

primary data. The data collection method was based on questionnaire.

\

4

INDEX

CHAPTER NO INDEX PGN

O.

1 INTRODUCTION OF INDUSTRY

1.1 HISTORY 11

1.2 GROWTH AND DEVEOPMENT 13

1.3 PERFOMANCE AND OTHER STATSTICAL DATA 15

1.4 MARKET PLAYERS IN INDUSTRY 18

2 COMPANY OVERVIEW

2.1 HISTORY 21

2.2 GROWTH AND DEVELOPMENT 23

2.3 PERFOMANCE AND OHTHER KEY PERFOMANCE

DATA

25

2.4 PRODUCT / SERVICE OVERVIEW 29

2.5 DEPARTMENTAL OVERVIEW 32

2.6 SWOT ANALYSIS 40

3 INTRODUCTION OF STUDY

3.1 BACKGROUND OF STUDY 42

3.2 REVIEW OF LITERATURE 43

3.3 STATEMENT OF PROBLEM 46

3.4 OBJECTIVES OF STUDY 47

3.5 CONTRIBUTION AND LEARNING OF PROJECT 48

4 RESEARCH METHDOLOGY

4.1 RESEARCH DESIGN 50

4.2 SAMPLING METHOD 52

4.3 SAMPLING SIZE 52

4.4 SOURCES OF DATA 52

4.5 DATA COLLECTION METHOD 52

4.6 DATA COLLECTION INSTRUMENT 52

4.7 DATA PROCESSING 52

5 ANALYSIS AND INTERPITATION OF DATA 54

6 RESULT AND FINDING 64

7 SUGGESTI ONS AND CONCLUSION 65

8 LIMITATIONS OF THE STUDY 66

5

9 SCOPE OF FURTHER RESEARCH 67

10 BIBLIOGRAPHY 68

6

LIST OF GRAPH

Graph no. Graph title Page no.

1 Healthy Net-worth (Rs.In billions) 25

2 Declining cost-to income ratio (%) 26

3 Return on Equity (%) 26

4 Earnings per share (Rs) 27

5 Profit after tax 28

6 How many times you have emngercy required

money?

54

7 How do you manage when required money? 55

8 Are you aware about concept of gold? 56

9 Have you used gold loan? 57

10 If yes which company? 58

11 Do you have your owned or rented house? 59

12 Have you taken any home loan? 60

13 Have you take any commercial vehicle loan? 61

14 Which loan you take more as you have need? 62

LIST OF TABLE

TABLE NO. TABLE TITLE PAGE NO.

1 INDEX 7-8

2 LIST OF GRAPH 9

3 SCHEME OF GOLD LOAN 32

7

INTRDUCTION OF INDUSTREY

8

INDUSTREY OVERVIEW

HISTORY

History of banking and finance goes back to the early stage of the human

civilization, when it was growing in the cradles of different cultures. At the very

hour, when the early people learned to exchange commodities, these two

concepts were born. History of finance Globalization is circulating the Western

form of finance in the whole universe. The recent development in the field of

finance has been labeled by the evolution of advanced technological

machinery for supervising money. 

But, the ancient examples of finance are short-term loans introduced by the

cultures in the Middle East, North America, Asia, and Africa, and the

mentionable factor is that the concept of money had been invented in these

regions and by these same civilizations. 

Once the concept of money came in existence, the gradual developments

started and the first banks were established in Europe in the fourteenth

century. This was made possible by the developments of the legal and

accounting systems which enabled money-tracking. 

Establishments of banks encouraged people to share their wealth for huge

dealings. The 17th century marked another change when the first stock

markets started rolling. It also provided the business sector and the

governments an opportunity to collect funds by selling equity and the money-

borrowing concept was altered. 

There were calculated exchanges in fashion between the pre-historic self

sufficient groups, but it was not done frequently. Almost 8,500 years ago, in

Turkey, people used lumps of copper as money. The paper money, and

earlier the leather money, was invented by the Chinese people. Later, the

concepts of insurance, commodity markets, and security markets were

invented by the Phoenician, Artherian, and other Mediterranean civilizations,

and the reformations in northern Europe modified the securities market. In

between, Italy played a vital role in the game when concepts of corporations,

double-entry book-keeping and banks developed there. In 1792, the New

9

York Stock Exchange was created by an agreement between 24

businessmen. In the second half of the nineteenth century, the board of trades

was set up at different places, mainly around the Mississippi river and after

fifty years, the modern exchanges with clearinghouses came into existence.

Now-a-days, different types of financial services are designed and offered

according to the needs of the market. 

These services are  

Trust company

Stock exchange

Stock broker

Retail broker

Mutual funds

Investment

Insurance

Industrial Loan

Traces of banking can be found in the early history of Egypt, Babylonia, and

Greece. The temples at these places practiced the early form of banking in

the form of approving loans. These temples provided gold and silver which

were deposited for safekeeping, as loans to the borrowers and charged high

interest rates on those items. The private banking which was started in 600

B.C. was modified by the Greeks, Romans and Byzantines. Medieval banking

was leaded mainly by the Jews and Levantine.

Next, emerged some particular purpose oriented banks like the Bank of

Venice (1171) and the Bank of England, which looked after the loans to the

government, and the Bank of Amsterdam (1694) was formed to receive the

gold and silver deposits. With the development in the business sector, the

banking sector also developed proportionately and the eighteenth and

nineteenth century experienced the rapid growth in this sector.

In the modern times, the banking sector developed with the developing sector

of trade and commerce. Today, there are different types of banks has been

establish for different purpose.  

 

10

GROWTH AND DEVLOPMENT

These are the types of banks operating in today's market:

Commercial banks: This type of banking includes national and state-charted

banks, stock savings banks, and industrial banks. This kind of banking service

has provided many services to the society which includes the basic functions

of savings, providing loans, dealing in time deposits, etc. The reserve

requirements of these banks are totally different from the mutual saving

banks.

Mutual savings bank: This type of banks provides some limited type of loans

and deals in savings and other deposits. But recently the modifications have

been done and now, these banks are also providing a huge number of

facilities. In these banks, the investment and loan amount depends on the

available customer's deposits. Once, the national level banks started rolling,

the concept of international banking emerged. Actually, the growth in the trade

and commerce, the growth in the exchanges between countries, the multi-

national trades, etc. demanded some kind of international organization to

carry out the business smoothly.

So, the following international banks were formed in order to fulfill the

demands of the modern global market:

World Bank (International Bank for Reconstruction and Development): It was

founded in 1945 with the view to approve loans to private investors and to the

governments of different countries.

IMF (International Monetary Fund): The bank has been involved in simplifying

the process of debt clearance between the nations. It has also provided

valuable suggestions to the members in the field of international banking.

The European Central Bank (European monetary system): Has been founded

in 1998 to handle the joint monetary policy of those European countries,

which have adopted a single currency. 

There are several organizations, which have developed in the recent times

and which are performing some of the orthodox banking operations, but these

are not under the supervision of state or federal banking authorities. These

11

organizations are also serving the society in the same manner as the

traditional banks serve. 

Some of these organizations are:

Savings associations

Loan associations

Finance companies

Mortgage companies

Insurance companies

Credit unions

Investment bankers

Credit securities

Brokers and dealers in securities

Financial sector is the set of institutions, instruments, markets. It also includes

the legal and regulatory framework that permit transactions to be made

through the extension of credit. Fundamentally, financial sector development

concerns overcoming “costs” incurred in the financial system. This process of

reducing costs of acquiring information, enforcing contracts, and executing

transactions results in the emergence of financial contracts, intermediaries,

and markets. Different types and combinations of information, transaction,

and enforcement costs in conjunction with different regulatory, legal and tax

systems have motivated distinct forms of contracts, intermediaries and

markets across countries in different times.

The five key functions of a financial system in a country are: (i) information

production ex ante about possible investments and capital allocation; (ii)

monitoring investments and the exercise of corporate governance after

providing financing; (iii) facilitation of the trading, diversification, and

management of risk; (iv) mobilization and pooling of savings; and (v)

promoting the exchange of goods and services.

12

PERFOMANCE AND OTHER STASTICAL DATA

The word ‘Performance is derived from the word ‘parfourmen’, which means

‘To do’, ‘to carry out’ or ‘to render’. It refers the act of performing; execution,

accomplishment, fulfillment, etc. In border sense, performance refers to the

accomplishment of a given task measured against preset standards of

accuracy, completeness, cost, and speed. In other words, it refers to the

degree to which an achievement is being or has been accomplished. In the

words of Frich Kohlar

“The performance is a general term applied to a part or to all the conducts of

activities of an organization over a period of time often with reference to past

or projected cost efficiency, management responsibility or accountability or

the like. Thus, not just the presentation, but the quality of results achieved

refers to the performance. Performance is used to indicate Firm’s success,

conditions, and compliance. Financial performance refers to the act of

performing financial activity. In broader sense, financial performance refers to

the degree to which financial objectives being or has been accomplished. It is

the process of measuring the results of a firm's policies and operations in

monetary terms. It is used to measure firm's overall financial health over a

given period of time and can also be used to compare similar firms across the

same industry or to compare industries or sectors in aggregation.

In the last decade the banking industry of India has experienced exponential

growth. The CNX Bank Index1 has grown by more than 1100% in absolute

terms, and at a compounded annual growth rate of over 25% in the period

from 2000 – 2010, while the Sensex2 grew at a compounded annual growth

rate of 14%. In the year 2010 the banking sector contributed16.35% to the

GDP of India.3 This calls for an analysis of the performance of Indian banks.

The reforms of 1991 and 1998 have helped improve the performance,

profitability and efficiency of the Indian banking system. Prior studies have

shown the effectiveness of there forms on Indian banks in helping improve

total factor productivity, efficiency and profitability among other things. Much

less has been done to examine how the banking industry of India has fared

compared to other countries in recent years. In addition, there is insufficient

13

published research on the performance of the public and private banks in the

wake of the financial crisis, which is a true litmus test. The purpose of this

thesis is to analyze the growth of the banking\sector of India, starting in the

21st century. The analysis is conducted in two parts: (1) examination of the

performance of private and public banks in India in the last ten years and

(2)comparison of the performance of the Indian banking sector share price

performance to the banking sectors and overall market indices of other

developed and developing countries over the last ten year.

Nationalization led to major structural changes in the banking sector of India.

Branch expansion was accompanied by development of priority sectors of the

economy, with credit being directed towards these sectors contrary to profit

motives of the banks. The Credit Guarantee Corporation of India Ltd. was

established for providing guarantees against the risk of default in payment,

which increased the number of loans to smaller borrowers by the banks. The

number of rural bank offices increased from 1,443 branches in 1969 to 19,453

branches in 1981\(Reserve Bank of India 2008a). The amount of credit

outstanding increased from Rs. 1.15 billion in 1969 to Rs. 36 billion in 1981,

which accounted for 11.9% of the total loans to the rural areas (Reserve Bank

of India 2008a). RBI was monitoring the economy by controlling and changing

micro factors affecting banks, to prevent banking failures during crises. In

April 1980, there was a second wave of nationalization when an additional six

banks were nationalized. All these banks had deposit liabilities of Rs. 2 billion

or more. The number of public sector banks reached twenty, representing

92% of the deposits of the banking sector. The government increased the

Cash Reserve Ratio (CRR) and the Statutory Liquidity Ratio (SLR).5 Banks

were earning less than the market rate eligible on CRR balances and yield on

government securities was lower than the interest rate paid by the banks on

deposits. The nationalization phase was marked by stringent controls on the

banking industry. As of September 22nd, 1990 the Cash Reserve Ratio was

15.00% and the Statutory Liquidity Ratio was 38.5% (Reserve Bank of India),

combined they amounted to 53.5% of all demands and liabilities being saved

in liquid government securities or as cash with the RBI. The banks were being

used by the government to fund their projects for economic development. This

14

led the banks to be unprofitable forcing the government\to adopt changes and

thus, came about the reforms of 1991 led by the Narasimham Committee.

There are two main approaches to banking regulation. One endpoint is

government ownership of the banking industry and the other endpoint is free

banking system. Barth, Caprio and Levine (2008) describe the two main

approaches as the “Public Interest Approach” and the

“Private Interest View of Regulation”.

15

MARKET PLAYERS IN INDUSTRY

The scenario of India Company has incalculably improved in the last few

decades. The number of Indian companies has increased at a very striking

rate. It has been observed that more and more international companies are

willing to have their place of business in India. It is either individually that

these foreign companies are entering India or through a partnership or with

building up a subsidiary of such companies. With more liberalized norms and

rules by the Government, more and more companies saw the business

scenario getting better. These have in a way made a positive impact on the

India company scenario and augmented the credibility of the India corporate

sector. The future of India Company really looks very promising indeed.

1. India has 52 billionaires in 2009 as the Forbes report. This is with all

courtesy to the improvement in the India company situation.

2. India has been stated as the world's fastest growing wealth creator, all

thanks to a vibrant stock market and higher earnings from the strata of Indian

companies.

3. The number of top companies in India has outshone their performances in

terms of net profit in just six months of the start of the fiscal year. This depicts

a fast growth in corporate earnings.

Amongst all the developments in India, the major one has been in the IT

sector. The Indian IT company scenario has witnessed a fast growth pace and

it has in its basket a lot of job opportunities. That is why the IT sector has

been considered a prime career option. As a matter of fact, this sector

happens to be the fastest growing sectors in the India Company premise.

Following are market players in finance industry:

Muthoot Finance Gold Loan:

Muthoot is a Kerala originated association set up by Muthoot Ninan Mathai in

1887 at Kozhencherry in Travancore district which was later being adopted by

M George Muthoot. Loan is received within a time period of 5 min. It ranges

from 1500₹ to 1 core, 0% processing fees, Interest rate of 1% per month.

Mannapuram Finance Gold Loan:

Mannapuram Finance also facilitates gold loan within 5 min. It help to draw

instant Cash by subscribing gold ornaments and Jewellery. It provides loan at

16

higher points, based on purity, net weight of gold. The candidate must have

one recent ID—Voter ID/ Ration Card/ Driving License/ Passport. No time-

consuming formalities involved.

Union Gold: Union gold loan provides credit facility to needy farmers. The

lending rate is 1800 per gram₹ gold ornaments. Based priority sector like

agricultural purposes. Under non priority sector for basic necessities for

unforeseen expenses. Loan amount consumption purposes is up to 2000/-.₹

The Non-Priority Sector loan amount is max. 5 laces.₹ HDFC: Gold loan HDFC gold loan term loan provides instant loans. Regular interest

on loan is being granted. Identity Proof like Passport Copy/ Voters ID card/

Driving License along with proof like Ration card/ Telephone Bill/ Electricity

Bill/ Rental Agreement/ Passport copy/Trade license /Shop &Est. License /

Sales Tax certificate, 2 pass port size photographs.

SBI Gold:

SBI gold loan is loan which satisfies as a biggest advantage to overcome

crisis and is a personal loan phenomena. It has low interest rate. The loan

amount of ₹10 lakh is attained by the customer. It also provides gold loan for

farmers for agricultural necessities

17

INTRODUCTION OF COMPANY

COMPANY OVERVIEW

18

HISTORY

We were originally incorporated on October 18, 1995 as Probity Research

and Services Private Limited at Mumbai under the Companies Act, 1956 with

Registration No. 11 93797. We commenced our operations as an independent

provider of information, analysis and research covering Indian businesses,

financial markets and economy, to institutional customers. We became a

public limited company on April 28, 2000 and the name of the Company was

changed to Probity Research and Services Limited. The name of the

Company was changed to India Infoline.com Limited on May 23, 2000 and

later to India Info line Limited on March 23, 2001.

In 1999, we identified the potential of the Internet to cater to a mass

retail segment and transformed our business model from providing

information services to institutional customers to retail customers. Hence we

launched our Internet portal, www.indiainfoline.com in May 1999 and started

providing news and market information, independent research, interviews with

business leaders and other specialized features.

In May 2000, the name of our Company was changed to India Infoline.com

Limited to reflect the transformation of our business. Over a period of time, we

have emerged as one of the leading business and financial information

services provider in India.

In the year 2000, we leveraged our position as a provider of financial

information and analysis by diversifying into transactional services, primarily

for online trading in shares and securities and online as well as offline

distribution of personal financial products, like mutual funds and RBI Bonds.

These activities were carried on by our wholly owned subsidiaries. Our

broking services was launched under the brand name of 5paisa.com through

our subsidiary, India Info line Securities Private Limited and www.5paisa.com,

the e-broking portal, was launched for online trading in July 2000. It combined

competitive brokerage rates and research, supported by Internet technology

besides investment advice from an experienced team of research analysts,

we also offer real time stock quotes, market news and price charts with

multiple tools for technical analysis.

Acquisition of Agri Marketing Services Limited ("Agri")

19

In March 2000, we acquired 100% of the equity shares of Agri Marketing

Services Limited, from their owners in exchange for the issuance of 508,482

of our equity shares. Agri was a direct selling agent of personal financial

products including mutual funds, fixed deposits, corporate bonds and post-

office instruments. At the time of our acquisition, Agri operated 32 branches in

South and West India serving more than 30,000 customers with a staff of,

approximately 180 employees. After the acquisition, we changed the company

name to India Infoline.com Distribution Company Limited Facilities.

Our main offices are located in approximately 4,000 square feet of office

space located in Mumbai, India. Our India Info line Branches collectively

occupy an additional 10,000 square feet of office space located throughout

India, As on March 31, 2005, we have 73 branches across 36 locations in

India.

Information about iifl office, employees and customers:-

No. of Employees: 13,749

No. of Offices: 400

No. of Sub-brokers: 2,350

Sub-brokers Terminals: 4,624

Information about company’s top management

Chairperson- Nirmal Jain

Chief Compliance Officer- R Mohan

Managing Director- R Venkataraman

Directors

-K Sinha

-N Vikamsey

-AK Purwar

- S Kaul

-C Ratnaswami

-S Narayan

GROWTH AND DEVLOPMENT

20

April 28, 2000 Conversion from Private Limited to Public Limited Company

May 23, 2000 To focus on the retail financial intermediary business through

an online set-up. March 23, 2001 To focus on the retail financial

intermediary business through offline as well as online set-up. Milestones

1995 -Incorporated as an equity research and consulting firm with a client

base that included leading FIIs, banks, consulting firms and corporate. 1999 -

Restructured the business model to embrace the internet; launched

archives.indiainfoline.com mobilized capital from reputed private equity

investors. 2000 -Commenced the distribution of personal financial products;

launched online equity trading; entered life insurance distribution as a

corporate agent. Acknowledged by Forbes as ‘Best of the Web’ and ‘must

read for investors’. 2004 -Acquired commodities broking license; launched

Portfolio Management Service. 

2005- Listed on the Indian stock markets- India Info line fixes a

price band between Rs 70 and Rs 80 for its forthcoming public issue. The

company is coming out with public issue of 1.18 crore shares with a face

value of Rs 10 through the book building route. The issue is slated to open on

April 21 and close on April 27. Enam Financial Consultants Private Ltd would

be the sole book running lead manager to the issue while In time Spectrum

Registry Ltd is the registrarto the issue.-India Info line public issue gets 6.6

times oversubscription-IIL appoints R Mohan as VP-India Info line Ltd has

informed that the Company has entered into a advertising agreement with

Times Group where in the Company and other group companies would spend

about Rupees Thirty Crores over the next 5 years in print as well as non print

media of The Times Group.-India Info line to buy 75-pc stake in

Moneytree2006 India Info line launches exclusive SMS Value Added

Service-India Info line enters into strategic agreement with Saraswat

Bank-India Info line to launch stock trading on cell phones-India

info line to roll out MCX, NCDEX, DGCX software Acquired membership of

DGCX; launched investment banking services.

2007 -Launched a proprietary trading platform; inducted an institutional

equities team; formed a Singapore subsidiary; raised over USD 300 mn in the

group; launched consumer finance business under the ‘Money line’ brand. 

21

2008 -Launched wealth management services under the ‘IIFL Wealth’

brand; set up India Info line Private Equity fund; received the Insurance

broking license from IRDA; received the venture capital license; received in

principle approval to sponsor a mutual fund; received ‘Best broker- India’

award from Finance Asia; ‘Most Improved Brokerage- India’ awar from

Asia money. 

India Info line Ltd has informed that the Board of Directors of the Company

have vide circular resolution passed on March 10, 2008 approved the

appointment of Mr. A K Purwar, ex-Chairman of the State Bank of India, as an

independent director on the Board of the Company.

India Info line Ltd has informed that pursuant to the resignation of Mr.

Nimish Mehta, Company Secretary and Compliance Officer of the Company.

Ms. Falguni Sanghvi has been appointed as the Company Secretary with

effect from October 07,2008.- The Company has splits its face value from

Rs10/- to Rs2/-.

2009 -Received registration for a housing finance company from the

National Housing Bank; received ‘Fastest growing Equity Broking House –

Large firms ‘in IndiabyDun&Bradstreet. 

2010-Received in-principle approval for membership of the Singapore

Stock Exchange .Received membership of the Colombo Stock Exchange

2011-Launched IIFL Mutual Fund.-IIFL got SEBI nod for Mutual Fund

business."IIFL announces launch of its 'Life Time Prepaid, Any Time Money

back' brokerage product"

2012-"PFRDA appoints India Info line Finance Ltd (IIFL) as Points of

Presence (Pop) under New Pension System (NPS)”

PERFOMANCE AND OTHER KEY PERFOMANCE DATA

Healthy Net-worth

22

(Rs. in billions)

2013-14 16.1

2012-13 15.1

2011-12 14.2

Following figure 1shown healthy net-worth shown to year after year

increasingly shown in 2011-12 is 14.2 but in so2013-14 is 16.1 is increasingly

by 1.13% in two years.

2011-12 2012-13 2013-1413

13.5

14

14.5

15

15.5

16

16.5

14.2

15.1

16.1

Figure 1

Declining cost-to income

ratio (%)

2013-14 50.7

2012-13 52.5

2011-12 64.7

Following figure 2 shown statistics is decreases cost to income in cost

decreases year after year in 2011-12 is a 64.7 and in 2013-14 is 50.7 so its

decreasingly by two year 0.78 times.

23

2011-12 2012-13 2013-140

10

20

30

40

50

60

7064.7

52.5 50.7

Figure 2

Return on Equity

(%)

2013-14 12.4

2012-13 12.1

2011-12 7.3

Following figure 3 shown statistics is return on equity is increases year after

year in 2011-12 ROI is 7.3 and in 2013-14 is 12.4 so its increasingly by 1.69

times in two year.

2011-12 2012-13 2013-140

2

4

6

8

10

12

14

7.3

12.1 12.4

Figure 3

24

Earnings per share (Rs)

2013-14 8.9

2012-13 8.0

2011-12 4.4

Following figure 4 shown statistics is Earning per share is increases year after

year in 2011-12 EPS is 4.4 and in 2013-14 is 8.9 is so its increasingly by 2.02

times in two year.

2011-12 2012-13 2013-140

1

2

3

4

5

6

7

8

9

10

4.4

88.9

Figure 4

Profit after tax

(Rs. in millions)

2013-14 2,104.0

2012-13 1,887.2

2011-12 1,053.8

Following figure 5 shown is Profit after tax is increases year after year in

2011-12 is 1053.8 million and 2013-14 is 2104.0 million so its increasingly by

aprox 1.99658 times in two year.

25

2011-12 2012-13 2013-140

500

1000

1500

2000

2500

1053.8

1887.22104

profit after tax rs.

Figure 5

So above performance data we can say that IIFL Company’s performance is

very good and very competitive and market leader in india.

26

PRODUCT AND SERVICE OVERVIEW

MORTGAGE LOAN: - in mortgage loan we have following have mortgage

loans provided by iifl;

Home loans: - IIFL provides loans for purchase of residential properties, home

construction, home improvement and plot loans, through its subsidiary India

Info line Housing Finance Limited. The maximum tenure for housing loans is

240 months. The Company sources home loan applications through its direct

sourcing channel, DSA network and alternate channels. The Company

successfully converted twice the number of customers over the last fiscal.

Initiatives , 201314, during the year, the Company started focusing on

extending housing loans to the low-income segment, ticket size of loans up to

Rs.2.5 million, owing to higher demand. The share of affordable housing in

home loans increased considerably in2013-14 over the last fiscal. IIFL

leverages on its extensive branch network for generating leads and sourcing

customers. Its robust systems and processes have helped in building an

enduring and profitable portfolio. In a bid to go retail, IIFL initiated and put into

place, a strong system of checks and balances to attend customers across

the country.

There is a growing demand originating from the affordable segment. To reach

out to the customer base in Tier-II and Tier-III cities, IIFL has launched a

unique home loan product (Swaraj).IIFL anticipates incremental growth in this

segment over the foreseeable future. Consequently, the Company will

continue to focus on smaller ticket home loans.

Loan against Property:- Loans against property (LAP) are provided for

working capital requirements, business use, new commercial property

acquisition and construction financing.LAP continues to be the largest and the

most dominant product within the mortgages segment. The self-employed

segment, which is the foremost segment of LAP, requires efficient checks and

controls to ensure a quality portfolio and risk reduction. IIFL has undertaken

necessary checks regarding the borrowers ‘credit background and conducts

legal and technical security evaluation. IIFL leverages on external as well as

27

internal appraisal of properties including valuations by international property

consultants for large mortgage loans. The verification process comprises of

prescribed and independent fraud control checks

Initiatives, 2013-14IIFL focused on the retail segment and successfully

reduced the average ticket size by 36 percent in LAP as compared to 2012-

13.IIFL strengthened its in-house collection and legal teams for enhanced

collection efficiency.

The demand for loan against property from small business segments has

been growing significantly. Increased focus on the SME segment will ensure

high growth in the LAP market. IIFL will continue to carve a niche for itself in

this segment through innovative offerings and service expertise

GOLD LOANS - IIFL typically caters to small businessmen, vendors, traders,

farmers and salaried people, who, for reasons of convenience, accessibility or

necessity, pledge their gold jewellery.IIFL provides customised retail loan

products based on the borrowers ‘requirements. IIFL disburses up to 75

percent of the gold value which provides an adequate buffer and offers

competitive rates on customised schemes with flexible payment options. As

part of the verification process, IIFLofficers undertake prescribed checks and

conduct borrower appraisals.Valuers have been certified and trained in asset

quality practices and have an experience of not less than one year. Each

branch has adequate security provisions as prescribed by RBI.

Initiatives, 2013-14 IIFL consolidated its gold loan business amidst an

uncertain environment, marked by global price decline, policy impediments

and regulatory interventions. There was reduction in number of branches

owing to Unfavourable market dynamics.

COMMERCIAL VEHICAL LOAN: - IIFL entered this business segment in

December 2012, providing loans for all types of commercial vehicles (new and

used commercial vehicles and buses; small, light, medium and heavy

commercial vehicles, among others). The commercial vehicle financing team

sources clients through its direct sales force, direct selling agents, authorised

dealers of various manufacturers and also the entire IIFL branch network. The

commercial vehicle finance team comprises members from the sourcing

28

department (sales and collections) and the underwriting department (credit

and operations). The Company has invested in automated systems and

processes; strategically located hubs facilitate faster disbursement and help

lower turnaround time. Loan proposals are evaluated based on parameters

including industry experience, borrowing history, loan documentation and

relevant KYC documents as prescribed by the RBI.

Initiatives, 2013-14The commercial vehicles market reported a 21 percent de-

growth in sales volume during the year under review. This underperformance

was a result of intermediate, medium and heavy commercial vehicle segment

contracting by 27 percent and the small commercial vehicles segment by 18

percent. Resultantly, the Company limited its disbursement to around 1,000

vehicles per month with a total loan book size of H4,387 million. IIFL focused

primarily on small commercial vehicle and used commercial vehicle

segments. The Company engaged services of certified values, restrained its

exposure in this segment and diversified its product mix in line with the

evolving risk profile. Outlook IIFL expects the markets to revive during the

second half of 2014-15 and is competently placed to scale its presence when

the market revives.

29

DEPARMENTAL OVERVIEW

IIFL Gold Loan:Gold loan or loan against gold is the easiest and quickest way for servicing

your financial needs. To avail a gold loan, all you need to do is pledge your

gold ornaments with us and we would provide you with a loan amount as per

the market value of your gold. Unlike other loans, gold loan does not require

you to provide any income or salary proof. Moreover, it has comparatively

lower interest rates; requires lesser documentation, and hence is processed in

lesser time.

We at IIFL provide maximum loan against your gold at lowest interest rates.

We have a strong presence Pan-India and have serviced a large number of

customers in a very short span. We offer different types of schemes as per

your requirement and convenience.

Scheme of gold loan:

Scheme

code

Scheme

name

Funding

%

Purity ROI

monthly

Per gram

rate

Frequency

331 DHAMAL Carat

based

18carat and

above

1.75 1850 Monthly

334 DHMALQ Carat

based

18carat and

above

2.20 1750 Quarterly

346 JAN

SHAKTI

Carat

based

18carat and

above

1.00 1250 Monthly

366 SARAL 100% 18carat and

above

1.30 1600 Monthly

371 BHARAT

NIRMAN 20

100% 20carat and

above

1.50 1750 Monthly

374 SARAL 3Q 100% 20carat and

above

1.60 1650 Quarterly

376 SARAL 4M 100% 21carat and

above

1.75 1800 Monthly

379 SARAL 4Q 100% 21carat and

above

1.80 1750 Quarterly

381 SARAL 5M 100% 21carat and 2.00 1850 Monthly

30

above

Advantages of gold loan

Gold loan doesn’t demand any certificate to show your salary or

income and even no credit card history is required. Thus even

unemployed and non-working people can go for gold loan.

unlike any other unsecured loan, gold loan doesn’t require many

papers, only few documents such as ID proof and address proof is

enough to avail for such loan.

One of the main advantages of gold loan is its low interest rates.

Usually loan over gold is provided at the interest of 12-16% per annum

and this is quite low compared to personal loans available at interest

rates of 15-26% per annum.

In rural areas Agricultural loan against gold is also available for

agriculturist at very nominal rate of Interest of 7% to 8%, proof of

agricultural document needs to be provided.

Gold loan is the most simple and convenient forms of loan because

here all you need to do is pledge your gold with a bank or finance

company and get up to 60% of the market value of the gold as a loan.

Charges associated with gold loan

Loan processing charge: While some of the service providers may

waiver these charges only 50 per loan, some banks do charge a₹

processing fee are taken too expensive.

Late payment penalty: Most of the service providers charge late

payment penalty and this too can vary from one institution to the other.

Pre-payment penalty: Most of the service providers do not charge a

penalty for repayment before the loan tenure is over. But some may

still have this charge in place.

It is advisable to check with the loan provider before taking the loan.

These charges could change the amount that you may finally receive.

Advice on Gold Loans:

Go for gold loan if you are confident of returning the money in time

otherwise, you will be penalized and all your pledged gold will come

31

under the control of bank or finance company from where you take a

Gold Loan.

while opting for gold loan check the interest rates in various banks and

private finances. If you go for private lenders then better to go with one

who has been in this business for many years.

RBI's GOLD LOAN REGULATION FOR NBFC’s

The Reserve Bank of India (RBI) on Monday tightened regulations governing

Non-Banking Finance Companies (NBFCs) lending against gold jewellery.

The new rules include strict documentation for high value loans against gold

and prohibition on misleading advertisements by NBFCs such as offering

availability of gold loans in a matter of 2- 3 minutes.

The amount that can be lent against gold has been maintained at 60%. This

means for gold worth 100 offered as collateral, lenders can give loans up to₹

60. Also, NBFCs financing against the collateral of gold must insist on a₹

copy of the PAN card of the borrower for all transaction above 5 lakhs and₹

all high value loans of 1 lakh and above must only be disbursed by cheek,₹

RBI said. The apex bank has clearly stipulated that NBFCs should not issue

misleading advertisements like claiming the availability of loans in a matter of

2-3 minutes. RBI has also asked NBFCs to make the auction process of the

gold more transparent by disclosing the details of auction process in the

annual report, including full details of the value fetched in the auction. The

reserve price for the pledged ornaments should not be less than 85% of the

previous 30 day average closing price of 22 carat gold as declared by the

Bombay Bullion Association Ltd, an industry body, RBI said.

Auction process:-

In the event, customer fails to settle the loan Account or repay

interest/installments/Principal Amount/any other amount, charges ("the total

Outstanding"), post the completion of Loan tenure or otherwise. IIFL shall

issue the notice at customer address given in this Application by giving 10

days time from the issue of the notice to customer for repayment of the total

Outstanding. In the event, customer fails to repay the total Outstanding even

after giving 10 days notice for repayment, customer Pledged Gold Articles

may be sold by IIFL in a Public Auction as per IIFL policy. The Auction will be

32

announced to the Public by way of the issue of the Advertisement in atleast

two newspapers of which at least one newspaper shall be of a vernacular

language and another shall be a national daily newspaper. If any of the

Pledged Articles are sold at a price lower than the amount due from customer,

customer shall pay the deficit amount to IIFL. In case default in repaying the

deficit amount by the customer, IIFL has all the right to initiate legal action

against the customer and take possession of all the movables and

immovable’s property belonging to customer. If the Pledged Articles are sold

at a higher price than the amounts due from the surplus amount if any, may

be refunded to customer after adjusting all the other amounts payable by

customer to IIFL. If losses are incurred on sale, the same shall be reimbursed

by customer to IIFL and in the event customer is unable to make good such

losses iifl may institute legal proceeding to recover the losses from customer

assets/property. Iifl shall not be responsible for any losses or costs incurred in

selling the same if caused such sales of pledged articles.

IIFL reserves the right to sell any of the Pledged Articles by auction at any

point of time, even before the expiry of 12 months, if IIFL is convinced that the

market price or the maximum realizable value by sale of the Pledged Articles,

is likely to come down below or equal to the total amount payable by

customer, by way of principal, amount of the Loan interest and other amounts

payable in respect of the Loan , after serving a notice of 10 days to customer

at his address given in this application

IIFL Commercial vehicle loan:-

We have often heard about home loans, car loans and personal loans.

Most of us also know the purpose which these loans serve. However, only a

few of us would be aware of commercial loans. Let’s try to understand the

purpose of these loans, documentation process and who can avail them.

Commercial vehicle loans are usually taken by individual, partnership firms,

proprietorship firms, HUF (Hindu Undivided Family), trusts, societies, self-

33

employed, businessmen and private and public limited companies for their

financing needs for owning and running commercial vehicles.

The borrowers of these loans are usually engaged in the business of

transportation. Commercial vehicle loan options are available for buses,

tippers, transit mixers or any other heavy, light or small commercial vehicle. A

commercial vehicle loan can be taken for a variety of commercial vehicles,

which may be used at different locations.

Banks such as HDFC Bank, ICICI Bank, DCB Bank and Yes Bank among

others provide such loans. Also NBFCs (non banking financial companies)

like Reliance Commercial Finance and Fullerton India provide loans.

While loans are sanctioned for the purchase of a new commercial vehicle,

banks also offer loans for pre-owned vehicles. Borrowers can also avail of a

top up on existing loans subject to conditions.

Loan process:

The borrower—who wants to avail of a commercial vehicle loan—has to fill in

the application form and provide the necessary documents. The documents

include proof of address (passport, ration card, voters ID), proof of experience

in the relevant area, track record of past loans (if availed) and six months

bank statements of the last six months.

The borrowers would also need to submit two years income tax returns,

audited balance sheets and profit & loss account statements. List of owned

vehicles along with the copies of RC (registration certificate) books.

Some banks may also ask for transportation contracts for higher quantum of

funding. In some cases, banks may ask also for a personal guarantor.

Who can avail of a loan? :

Loans can be applied by individuals and by co-applicants, partners in

partnership firms and directors in private limited companies can apply for a

join loan. In case of individuals blood relatives can avail of a joint loan.

34

The minimum loan amount which can be availed by for small players is Rs. 1

lakh, while the same for large corporate is up to Rs. 5 crore.

Interest rates:

The interest rates range from 10% to 15% depending on the customer and

vehicle segment. The customer segment comprises self employed, corporate,

businessmen and partnership firms, while vehicle segment includes various

vehicles such as trucks, buses, cars, etc.

The rate depends on a lot of factors such as the number of vehicles owned by

the borrower, his business turnover, repayment track record from other

financiers (if any), etc. The financial institutions are able to confirm the rate of

interest once they have studied the documents. The interest rate may be fixed

or variable.

Repayment:

You need to make monthly payments to the lender to repay your loan. The

monthly installment comprises of principal and interest calculated on the basis

of rate of interest mentioned in loan agreement.

Loan amount & tenure:

The loan amount can vary depending upon the specific requirement. Funding

can extent to 100% of the chassis, body funding can be extended on special

requirement and on the past experiences.

Chassis basically means the internal structure of a vehicle like engine,

transmission, driveshaft, differential and suspension.

The tenure of the loan can range from six months to sixty months.

In case, you wish to prepay your loan, a penalty of 2% of the outstanding loan

amount is levied.

To wrap up, the factors which you need to consider while availing a

commercial loan include interest rates, additional charges, documents

required and the term of the loan.

35

What are the processing charges?:

The charges include processing fee, stamp duty and vehicle valuation

charges. The processing fee depends on the loan amount. It usually ranges

from 2%-4%. The processing fee is non-refundable. Stamp duty is normally

2% for a loan amount of Rs. 5 lakh, 3% over Rs. 5 lakh and 4% beyond Rs.

10 lakh.

Approval process

The loan is generally approved within seven days of submission of required

documents to the bank. However, the time taken to sanction the loan may

vary depending upon the nature of the loan, quantum of funding and location.

Normally, the bank / financial institution disburses the loan directly to the

vehicle dealer and not to the borrower.

Loan against property:

Features of loan against property-

Loan to extend your business or to meet any personal need

Loan available against residential, commercial and industrial property .

Repayment through monthly instalment

High tenure loans for ease of repayment

Minimum document

Loan transfer- you can existing loan against property or home loan for

another institution at attractive rate of interest for personal or business

purpose.

Eligibility criteria:

New home loan LAP salaried RS 200000 per annum after adj.tax

36

Home loans

Purpose

Purchase of flats

Refinance (balance transfer) of loan from another financial institution

Eligibility

The product is available to salaried and self-employed customers for loan

applications. The applicant must be an Indian Citizen and 18 years or over.

The maximum age allowed for salaried is 60 years and for self employed 65

years.

Home Loans can be applied for either individually or jointly. Proposed owners

of the property will have to be co-applicants. However, the co-applicants need

not be co owners.

Loan Amount

Minimum amount: Rs. 100,000*

At IIHFL we do not believe in putting limits to your dream of owning a home;

so we don’t have any upper cap on the loan amount. However, the maximum

loan amount will be 80% of the cost of the property (including the cost of the

land, stamp duty and registration) for loans above 20 lakhs and 85% of the

cost of property for loans below 20 lakhs and based on the repayment

capacity of the customer.

Loan Tenure

The maximum period of loan repayment shall be 20* years. However, on a

selective basis, for the customer's merit, we may choose to extend it to a

maximum of 30 years.

Repayment will not ordinarily extend beyond your age of retirement if you are

employed or on reaching 70 years of age, whichever is earlier. However,

IIHFL will endeavour to suit the repayment period to your convenience.

Security

Equitable first mortgage of the property to be financed, by way of deposit of

title deeds.

37

SWOT ANALYSIS

Strength: - IIFL strength is his interest collection policy in monthly interest

period Five days period to give customers because he take time to paid time

Weakness: - IIFL weakness is penalty is 0.5 is as per scheme and company’s

policy loan interest and very strictly too adopted by iifl.

Opportunity: - The outlook for the economy and financial sectors has turned

distinctly positive. There are amazing opportunities for your Company. With

economic activity picking up, it seems good times are ahead. However, good

times do not eliminate the risk of complacency and grave errors. A finance

company in the business of lending has to be built on robust fundamentals to

make the most of opportunities. Our track record has been built on solid

growth i.e. a growth with an uncompromising emphasis on asset quality and

regulatory compliance. Therefore, we believe that we measure up to make the

most out of the amazing opportunities that lie ahead.

Threats: - iifl competitors for ex. Muthoot, Mannapuram and hdfc are main

competitors for iifl that threats for iifl.

38

INTRODUCTION OF STUDY

39

INTRODUCTION TO STUDY

BACKGROUND OF STUDY:-

As researcher discussed in earlier he have got the topic for two months

summer internship program was “Market Scoping and Analysis OF Gold Loan

and other loan products”. For knowing the scope and analysis of gold loan in

the market researcher have conducted a small research with help of

“QUESTIONARE”. Marketing research will help researcher to identify the

need of the customer by gathering the information by filling the survey form

from individual customer. Market Research is systematic problem analysis,

model building and fact finding for the purpose of important decision making

and control in the marketing of goods and services. It helps a firm in

identifying what are the market opportunities and constraints, in developing

and implementing market strategies, and in evaluating the effectiveness of

marketing plans. Marketing Research is a growing and widely used business

activity as the sellers need to know more about their final consumers but are

generally widely separated from those consumers. Marketing Research is a

necessary link between marketing decision makers and the markets in which

they operate. For gathering the more and accurate information from the

customer about financial product and gold loan market researcher are made

the questioner and filled the same from the individual customers.

40

REVIEW OF LITRATURRE

1. GEETHA G. NAIR DR JANCY DAVY(2014) Gold loans have become a

basis for creation of new financial products such as loans for purchase of gold

wherein gold is purchased on the date of loan and held as a pledge until the

equated monthly instalments are paid. India is one of the biggest markets for

gold and gold loan. Indian households typically have an emotional attachment

and sense of personal belonging to the gold they own, which is usually in the

form of jewellery, coins or bars. A gold loan is settled either by repayment or,

in case of default, by sale of the pledged. The formalities in availing gold loans

are minimal and procedures are simple. IUnlike other secured loans, the

underlying asset in a gold loan is not subject to depreciation. At the same

time, unlike land, it is a liquid asset and the transaction costs involved when

enforcing the security are minimal Gold loans are ideal for those employed in

the informal or unorganised sector and do not have documents to prove their

income. This is a segment conventional banks generally avoid because their

appraisal and credit scoring is based on formal documentation. Incidentally,

more than 90 per cent of India’s workforce is in unorganised sector. In

practice, the entire process should hardly take 15 to 20 minutes. This makes

gold loans ideal for the micro-finance segment where the loan amounts are

small and where there is no point in testing the borrower’s patience with an

elaborate procedure. For borrowers, gold loans have emerged as one of the

best means of raising quick, short-term capital. Gold loans were preferred

over conventional personal loans due to less procedures, fast disbursement

and easy instalments. The study shows that the respondents preferred gold

loans from the banks, and most of the respondents use the fund for their

consumption smoothing.

41

2. Sarika Malhotra (2013) says that not so long ago, NBFCs were a hot

favourite of private equity investors in India (Malhotra, 2013). With the Indian

economy on a roll, most PE funds wanted to put their money in non-banking

finance companies (NBFCs) specialising in gold loans. But, today, gold loan

companies have lost their lustre because of a stricter regulatory environment

and a volatile gold market, pushing funds to vehicle finance companies

instead. And with the economy in a slowdown, exits from gold loan lenders

have also become much harder. For example, the vehicle financing company,

Au Financiers, has been a virtual PE magnet the past few years. It first hit the

jackpot in 2008 when Motilal Oswal Private Equity invested INR 20 crore.

Funds have been pouring in since. oswal invested another INR 20 crore in the

company in 2010 and International Finance Corporation (IFC) INR 35 Crore,

followed by INR 150 crore by Warburg Pincus and INR 33 crore by IFC last

year. Chrys Capital also invested INR 120 crore in 2013. At the same time,

the lender has also grown from strength to strength: Au's net worth has leapt

to INR 500 crore from just INR 15 crore in 2008 while its valuation has

galloped to INR 1,200 crore from INR 30 crore in the same period. For Motilal

oswal too, the investment was worth its weight in gold. A partial exit in 2012 is

reported to have translated into a five-fold return on investment, while a

further stake sale took its returns up 10 times. Vehicle finance companies in

particular have been attracting more funding. Quoting experts, the researcher

says they offer more stability than gold loan firms which are subject to

business risks such as price fluctuations and quality of collateral. Gold players

have been hit by uniform valuation methodology for jewellery and operating

model changes suggested by the RBI which requires them to seek permission

to open new branches and disburse higher value loans through cheques.

Also, PE funds believe in the business model of lending against income-

generating assets such as commercial vehicle finance, as compared to

businesses operating in consumption-based lending. Vehicle loan companies

get most of their business from semi-urban and rural areas. Most people in

42

urban areas, looking to buy cars, go to banks for loans, but those seeking

trucks, especially from smaller towns, prefer vehicle finance NBFCs.

3. George Alexander (2013) focused on the safety measures of borrowers.

This noted that the large gold loan NBFCs is almost like banks and is well-

governed, with established policies and procedures. Their branches have

sufficient security measures such as strong rooms, CCTV cameras, guards

and also specific procedures regarding access, in order to ensure safety of

the collateral. Besides, they insure the gold against theft and other unforeseen

events. Audits and inspections guarantee the continued integrity of the

holdings. Handling and storage is also done carefully, so as to avoid damage

to the ornaments. Apart from these, the reputation of the lenders and

transparent institutionalized procedures followed by them assures borrowers

of a fair deal. The major gold NBFCs have in place proper KYC (know your

customer) as well as Fair Practice Codes. In cases of recovery, too,

borrowers are given notice and a chance to redeem the gold or keep their

auction in abeyance through payment of interest, as in any bank. The author

said that, when a borrower approaches a lender, he/she calculates the costs

not only in terms of interest, but also in terms of security, KYC, documentation

procedures, appraising methods, auction procedures, etc. Many borrowers

from gold NBFCs are migrants from pawnbrokers. For them, the rates

charged by the NBFCs are considerably lower. The others that come weigh all

the benefits of the against that at a busy bank branch.

43

STATEMENT OF PROBLEM

Our statement is “market scoping of gold loan and other loan products” in

these statement main problem is our main topic is gold loan and some part is

other loan , in these statement is not cover all products .our research report is

only two months and limited products so that is a main problem in our

research statement. Our statement is market scoping of gold loan products

and other loan products in that our market area is not included , so we can

say that our area of marketing is small so that is our main problem in our

statement. In second problem is not specified our main problem is on

marketing of loan products so that is our second problem of our statement.

44

OBJECTIVES OF STUDY

To study what kind of changes the organization has undergone in the recent

past or have initiated recently.

To find out the competitors operating in the Gold Loan Market.

To find out the competitive position of India Info line and the ways and means

to improve on the service by India Info line Finance Limited.

To know the Gold Loan performance level in the present market.

To study about consumer awareness& satisfaction, about operational

Services & procedures of India Info line ltd.

To understand the satisfaction level of clients with India Info line regarding

service provided

45

CONTRIBUTION AND LEARNING OF PROJECT

I have learned to this project to various loan products scope in local

market specially to gold loan scope in current market popularity. In gold loan

my learning is market trend in gold loan and various products of iifl. I have

also learned in two month is how we can give value to gold, which parameters

we used that i learned to these project. In gold loan time period to price of

gold increases or decrease these revised loan to given time period. I have

also learned how to approve them. How to check them and how to approved

gold. I also learned to these projects how to check 18 carat, 22carat and

spurious gold we check them and give value them.

46

RESEARCH METHODOLOGY

47

RESEARCH METHODOLOGY

RESEARCH DESIGN

The study is based on survey technique. The study consists of analysis and

Market Scoping of Financial product of IIFL. For the purpose of the Study

Customers100 are picked up and their views solicited on different parameters.

The methodology adopted includes

Questionnaire

Random sample survey of customers

Personal interviews and informal discussions were held with customers to

ascertain the awareness level. Further applying simple statistical techniques

has processed the data collected.

48

Sampling method Convenience sampling

Sampling area Morbi, Ravapar road,Bapasitaram chowk, Near IIFL office, Bus station, Gutu road

Sample size 100

Data collection

method

Questionnaire , Interview method

Data collection day 18 days

49

SAMPLING METHOD

Probability sampling requires complete knowledge about all sampling units in

the universe. Since due to time constraint non-probability sampling was

chosen for the study.

SAMPLING SIZE

A sample of hundred was chosen for the purpose of the study.

SOURCES OF DATA

Primary data: Questionnaire

Secondary data: are published materials such as periodicals, journals,

newspapers, and website.

DATA COLLECTION METHOD

The data collected for the study purpose is through questionnaire.

DATA COLLECTION INSTRUMENT

Selected randomly for the study purpose and then the information revealed

from the public is analyzed and interpreted in the study.

DATA PROCESSING

From large number of public. Were randomly picked up.

50

DATA ANALYSIS AND INTERPITATION

51

ANALYSIS AND INTERPITATION OF DATA

Q1 how many times you have emngercy required money?

Times require money

People

1 12

2 32

3 26

4 30

1 2 3 4

12

32

26

30

Here we can see maximum number of people i.e. 32 people are 2 times

required money, 30 people 4 times required money,26 people 3 times

required money,12 people 1 times required money.

52

Q2 how do you manage when you required money?

relative

s 52

friends 10

loan 30

saving 8

relatives friends loan saving

52

10

30

8

Here we can see the maximum number no. of people is 52% responded have

emergency require of money borrowed from relatives, 10% responded have

requirement of money from borrowed from frends,30%and 8% responded

have emergency requirement of money borrowed from bank loan or saving.

53

Q3 Are you aware about concept of gold loans?

yes 95

no 5

yes no0

10

20

30

40

50

60

70

80

90

10095

5

Here we can see that the maximum no. of client of client i.e. 95% clients are

aware about the concept of gold loan while in other hand only 5% clients are

not aware about the concept of gold loan.

54

Q4 Have you used gold loan?

yes 90

no 10

yes no

90

10

Here researcher can see that maximum no. of people i.e. 10% people never

used gold loan service, while in other hand 90% of responded used gold loan

service.

55

Q5 if yes which company?

Muthoot 50

IIFL 40

muthoot IIFL 0

10

20

30

40

50

60

50

40

Here we can see that maximum no. of client i.e. , 50 is taken from muthoot

and other 40 taken from IIFL.

56

Q6 do you have your own or rented house?

own 66

rent 34

own rent

66

34

Here we can see that maximum no. of people i.e., 66% have own house and

34% have rented house.

57

Q7 Have you taken any home loan?

Yes 33

No 67

yes no

33

67

Here we can see that maximum no. of people i.e., 33% take housing loan,

while other hand only 67% people not take any home loan.

58

Q8 Have you take any commercial vehical loan?

yes 20

no 80

yes no

20

80

Here we can see that maximum no of people i.e., 80% never used

commercial vehical loan, while in other hand only 20% have used commercial

vehical loan services.

59

Q9 which loan you take more as you have needed?

home loan 50

gold loan 25

commercial loan 15

commercial vehical loan 10

home loan gold loan commercial loan commercial vehical loan

50

25

1510

Here we can see that 50% people can take home loan, 25% people can take

gold loan, 15% people can take commercial loan and 10% can take

commercial vehical loan.

60

RESULT AND FINDING

61

RESULT AND FINDING

Among all the respondents 80% are aware about different financial

services provided by IIFL and remaining 20% are not aware about the same.

IIFL gold loan is less preferred by the general people might because of less

awareness about IIFL goal loan services. Many people know the concepts of

gold loan in spite of that they don’t take Gold loan. Through responded

researcher analyzed the responded have own house but not more than 50%

take home loan and very few take commercial vehicle loan.

62

SUGGESTI ONS AND CONCLUSION

Suggestion:- Most of the people are not much aware of IIFL gold loan

services and its benefit. So INDIA INFOLINE FINANCIAL LIMITED can take

general awareness of GOLD LOAN SERVICES plan to the customers. INDIA

INFOLINE should maintain the customer satisfactions. There is lack of new

customer addition in the branches of Indian Info line Financial Limited, only

existing customer comes to respective branches for gold loan so it is

important to increase the awareness about the financial products of Indian

Info line Financial Limited in respective area. Some promotional activities are

required for the awareness of the customer. The Company should increase

Exposure. It is the good tool to capture the market. To increase awareness

about GOLD LOAN SERVICES AND OTHER FINANCIAL PRODUCT and the

name India Info line itself, the company should organize campaign. The

campaign can be weekly, monthly, yearly, it will give a good result to the

company to capture market in the competitive position.

Conclusion: - On the basis of the study it is found that India Info line Ltd is

better services provider than the other NBFC’s because of their good service

and personalized advice on gold loan and financial investment product. IIFL

provides the faster services as well as relationship manager facility for

encouragement and protects the interest of the investors. It also provides the

information through the internet and mobile alerts. Study also concludes that

people are not much aware of IIFL gold loan services. The company should

also organize seminars and similar activities to enhance the knowledge of

prospective and existing customers, so that they feel more comfortable while

investing in the financial products. The company should focus on the

advertising strategy and also the marketing of the product

63

LIMITATIONS OF THE STUDY Time limit is a major constraint.

This research reflects on individual public in morbi-shanala Road only.

So findings and suggestion given on the basis of this research cannot

be extrapolated to the entire population.

Sample size of the Questioner is 100 which is very small that is not

enough to study the awareness of consumer of that particular above

area.

Respondent are not sincere and care full to fill up the questioner so we

cannot find right solution.

As per the company rules many information was not disclosed.

As the managers are busy in their duty schedules it is not possible for

us to spend more time in interaction and discussion with them.

64

SCOPE OF FURTHER RESEARCH

There is very wide scope to further research because in time limitation

and area constrain are main limitation so there is a wide scope for company to

further research to whole branch there is region wise and income wise we go

further research. In these we also see there is very small sample size and not

enough for company side to take decision so we take very big sample size

and go to research its benefit for organization.

65

BIBLIOGRAPHY

www.indiainfoline.com

www.google.com

Literature of Review bibliography

George Alexander Muthoot (2013) gold NBFCs offer potential

borrowers superior advantages in terms of cost and security”, business

line

.

NAIR, GEETHA G.; , DR JANCY DAVY. (2014, APRIL). Market Surey .A study on Attitude of customer towards gold loan, 32.

prof.SHIVARAJ, .; , DEEPASHREE. (2015). A Study on gold loan in

muthoot finance limited. Indian Research Journal , 2, 14.

http://www.iiflfinance.com/Portals/0/IIISL_Solution/Pdf/

IIFL_Finance_AnnualReport_2013-14.pdf

http://www.dnb.co.in/EquityBroking2012/Adv%5CIndia%20Infoline

%20Limited.pdf

http://scholarship.claremont.edu/cgi/viewcontent.cgi?

article=1247&context=cmc_theses

http://faculty.chicagobooth.edu/raghuram.rajan/research/papers/

finsys.pdf

http://www.lfymag.com/admin/issuepdf/32-35_Gold%20Loan_FFYApril-

14.pdf

66

QUESTIONNAIRE Q1 how many times you have emergency required money?

Time required

money

People

1

2

3

4

Q2 how do you manage when you required money?

relative

s

Friends

Loan

Saving

Q3 Are you aware about concept of gold?

Yes

No

Q4 Have you used gold loan?

yes

no

67

Q5 if yes which company?

Muthoot

iifl

Q6 do you have your own or rent house?

owned

rented

Q7 Have you taken any home loan?

yes

no

Q8 Have you take any commercial vehicle loan?

yes

no

Q9 which loan you take more as you have need?

home loan

gold loan

commercial loan

commercial vehicle loan

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