A

PROJECT REPORT
ON

‘A study on customer satisfaction towards gold loan with

Special respect to
Muthoot Fincorp Pvt.Ltd’

Project Report submitted to

KUMAUN UNIVERSITY, NAINITAL

In partial fulfilment of requirement for

the award of the degree of

BACHELOR OF COMMERCE {HONS.}

SESSION {2021-2024}

SUBMITTED TO: SUBMITTED BY:

MISS. RAHNUMA MALIK DEVA SARDAR

{ASSISTANT PROFESSOR}
{MANAGEMENT DEPARTMENT BCH6TH

SEMESTER ROLL NO.

211335860039

DROAN COLLEGE OF EDUCATION & TECHNOLOGY,

RUDRAPUR (U.S. NAGAR)
Affiliated to Kumaun university , Nainital
CERTIFICATE

(FROM FACULTY GUIDE)

I hereby declare that the work presented in the report entitled “A study on customer
satisfaction towards gold loan with special respect to Muthoot Fincorp Pvt. Ltd
Rudrapur” was undertaken by me component for the partial fulfillment of the requirements
for the award of “Bachelor of commerce” at the DROAN COLLEGE OF EDUCATION &
TECHNOLOGY, RUDRAPUR. No part of this report has been submitted earlier and
elsewhere for any other similar title. The information and facilities used for this work have
been duly acknowledged. The study was conducted at Finance department, “Muthoot Fincorp
Pvt. Ltd”

SIGNATURE OF PROJECT GUIDE

MISS. RAHNUMA MALIK

DECLARATION

I Deva Sardar student of B.Com [hons] 6th semester of Droan college of Education &
Technology , hereby declare that this project report on “GOLD LOAN” is written and
submitted by me under the guidance of Mr. DEVA SARDAR is my original work.

The entire analysis and conclusion this report are based on the information which is collected
by me during the training period. The empirical finding In the report are based on the data
collected myself while preparing this project.
ACKNOWLEDGEMENT

I would like to thank first to the supreme power “God” for showering blessings on me for
learning attitude. I would also like to thank my parent who encourage me for my study.
I am indebted to DR. SHARMSHER SINGH the head of department. I would like to pay my
thanks to. MISS. RAHNUMA MALIK (project guide) for guidance during the course of study
and all other faculty members of the Department of bachelor of commerce have extended the
desired professional support for the study. I express my grateful thanks to all of them.

The employees and the staff supported and helped me in every possible way in completion of the
project. The company personnel provided me the support material related to GOLD LOAN. I
honor their concern for my career.

Date:-

Place:

4
PREFACE

This project report has been prepared in fulfilment of the requirement for the Summer
Internship project: “A study on customer satisfaction towards gold loan with special
respect to Muthoot Fincorp Pvt. Ltd” in the academic year 2021-23.

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

5
TABLE OF CONTENT

Chapter
Particular
No.
1 Introduction of Gold Industry

1.1 Introduction of Gold Investment

1.1.1 How to Get a Gold Loan in India?

1.1.2 How Does a Gold Loan Work?

1.1.3 Why Are Indians Exploring Options to

Take Gold Loans?
1.1.4 Future of Gold Loans in India

1.1.5 Current Scenario:

1.1.6 Porter’s five forces model

1.2 Introduction of Company

1.2.1 Founder of Muthoot Group

1.2.2 Board of Directors of Muthoot Fincorp Pvt. Ltd.

1.2.3 History of Muthoot Fincorp Pvt. Ltd.

1.2.4 Where they stand Today?

1.2.5 Muthoot Fincorp Pvt. Ltd.’s Goal

1.2.6 Products and Services provided by

Muthoot Fincorp Pvt. Ltd.
1.2.7 Gold Loan in Muthoot Fincorp Pvt. Ltd.

1.2.8 Gold Loan Process

1.2.9 Features provided by Muthoot Fincorp Pvt. Ltd.

1.2.10 Gold Loan Scheme

1.2.11 EMI Gold Loan Scheme of Muthoot

Fincorp Pvt. Ltd.

6
1.2.12 SWOT Analysis

1.3 Conceptual Framework

1.3.1 Importance of Study

1.3.2 Pros of Taking a Gold Loan

1.3.3 Cons of Taking a Gold Loan

1.3.4 Research Questions

2 Literature Review
3 Research Methodology

3.1 Research Objective

3.2 Research Design

3.3 Objective of the Study

3.4 Collection of data

3.5 Data Analysis Tools

3.6 Limitations of the study

4 Data Analysis and Interpretation

4.1 Demographical Analysis

4.2 Statistical Analysis

5 Findings

6 Suggestion
6.1 Suggestion

7 Conclusion

7.1 Conclusion

7.2 Learning from SIP

8 Bibliography

9 Questionnaire

7
Chapter – 1 :- Introduction
of Gold Industry

8
Introduction of Gold Investment

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

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

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

9
How to get a Gold Loan in India?

To avail a gold loan, customers have three options:

1) Visit a Bank Branch to Get Your Gold Evaluated

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

2) Request for Door-step Evaluation of Your Gold

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

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

3) Apply for a Gold Loan Digitally

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

When the customer decides to part with the decided gold jewellery or bars by
pledging it against the gold loan disbursal decided by the financial entity, they
receive a receipt, also called a pawn ticket, which lists out the full details about
the pledged ornaments (including weight, karatage, pictures among others
details).
10
How Does a Gold Loan Work?

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

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

75% of the market value of the pledged gold ornaments. This LTV is capped by
the Indian banking regulator Reserve Bank of India. This amount can be
withdrawn by the customer whenever required. On repayment of the loan, the
customer has the option to repledge the same gold for future loans.

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

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

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

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

11
Why Are Indians Exploring Options to
Take Gold Loans?

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

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

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

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

George Alexander Muthoot, the Managing Director of Muthoot Finance, has

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

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

12
Future of Gold Loans in India

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

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

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

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

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

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

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

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

13
Current Scenario:

In India, due to Covid-19 people feel more unsecure about their

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

14
Porter’s five forces model

The Five Forces model is named after Harvard Business

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

 Threat of new entrants:

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

15
market and they are also giving low interest rate on gold loan and
there is also fear about will their services maintained the
customer’s satisfaction! If they are not satisfied their customer then
they will change their bank and join another bank and Muthoot
Fincorp will lose their customer.

 Bargaining power of Suppliers:

Bargaining power of suppliers in Consumer Financial Services – If

suppliers have strong bargaining power, then they will extract
higher price from the Muthoot Fincorp. It will impact the potential
of Muthoot Fincorp to maintain above average profits in Consumer
Fincorp Services industry.
 Bargaining power of Buyers:
Bargaining power of buyers of Muthoot Fincorp and Financial
sector. If the buyers have strong bargaining power, then they
usually tend to drive price down thus limiting the potential of the
Muthoot Fincorp to earn profits.

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

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

Fincorp has to either continuously invest into R&D or it risks

losing out to disruptors in the industry.

16
CHAPTER 1.2
INTRODUCTION OF COMPANY

DATE OF ESTABLISHMENT 19th March 2002

CIN U65929KL1997PLC011518

REGISTERED ADDRESS Muthoot

Centre, TC No

14/2074-7

Punnen

Road

Trivandrum

Thiruvananthapuram -

695039 Kerala – India

TAG LINE “JAB ZINDAGI BADALNI HO!”

17
Founder of Muthoot Group

Muthoot Pappachan was a simple and devout man,

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

In the year 1887, Muthoot Ninan Mathai, patron

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

18
Board of Directors of Muthoot Fincorp Pvt. Ltd.

Sources:

{Muthoot Fincorp, 2021-22}

19
History of Muthoot Fincorp Pvt. Ltd.
We take our name, Muthoot, from our family, which is a branch of a traditional
Orthodox Christian family, based in Kozhencherry, a small town in the erstwhile
primary state of Travancore. (Kerala). In the year 1887, Muthoot Ninan Mathai
(Patron Founder of the group), started as a retail and wholesale trader of grains at
Kozhencherry. The wholesale goods were supplied to the large Estates owned by
British Companies. Later, understanding the needs of the estates’ workers and at
the request of the British owners, who appreciated the values & principles of Mr.
Ninan Mathai, he started a form of Chit Fund. The aim was to provide self-less
service for the workers, who were not able to manage their cash and would tend to
lose and/or misspend the same. Giving the workers an avenue for saving, provide
for exigencies and also secure their tomorrow, started as a simple solution to the
need at that point in time, soon gained momentum and spread across. The business
grew slowly but steadily along with its share of ups and downs. Functioning out of
a single office in Kozhencherry, Muthoot Ninan Mathai entered the gold loan
business in the 1950s. He soon went on to become the largest player in Chits &
Gold Loans. Even today, people from across the state are happy to come to
Kozhencherry for gold loans & chits. The Late Muthoot Ninan Mathai had four
sons, Ninan Mathew, M. George, M. Mathew and Mathew M. Thomas (Muthoot
Pappachan) who were involved in the business from their childhood and later took
over the family business. In the late 1980s, the business was most amicably split
four ways and Shri Muthoot Pappachan founded the Muthoot Pappachan Group.

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

20
Where they stand Today?

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

Muthoot Fincorp Pvt. Ltd.’s Goal

Our Values

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

Our Mission

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

Our Vision

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

21
Products and Services provided by Muthoot Fincorp
Pvt. Ltd.

Gold Loan
Wealth Small
Management Business
Service Loan

Product
Micro
Finance and Home Loan

Services
Money
Transfer Auto Loan

Forex

22
Gold Loan in Muthoot Fincorp Pvt. Ltd.

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

23
Gold Loan Process

Visit:

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

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

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

24
Features provided by Muthoot
Fincorp Pvt. Ltd.
 Easy to get:
They sanction your gold loans quickly and without any problems or
a credit score. Walk into any one of 3600+ branches across India
and get loan against gold instantly. They will calculate the value of
the gold (purity check) right in front of you and with a simple
process, within a few minutes, they will sanction the loan for you.

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

 Attractive Rate of Interest:

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

 They Keep Your Gold Safe & Insured:

Your gold is kept in lockers within Strong Rooms at the branch.
They use world-class surveillance and safety standards. Your Gold
kept with bank is also insured for its market value.

25
Gold Loan Scheme

Gold LTV (Loan to Unique Base Interest

Loan Value) / Loan Muthoot Blue Per Annum
Schemes Amount Min. Benefits
Souther Rest
Max. / Tenure
n of
/ Processing
branche India
Fee (inclusive
s
of GST except
for Prepaid
Scheme)
etc.
Muthoot Loan Value: ✓ Good Credit 12% to 12% to
Blue Guide Up to Rs. Behaviour 23% * 24% *
Gold Loan 99,999 Discount ✓ Loan
Processing Tenure
Fee: Rs.12 to Completion
Rs.20 Tenure: Reward ✓ Digital
Up to 6 Payment
Months Reward ✓ Rewards
– EMI Schemes
(Download Full
– PDF)
Muthoot Loan Value: ✓ Good Credit 12% to 12% to
Blue
Behaviour
Bright Gold From Rs. 1 Lakh 23% * 24% *
Loan to Rs. 2.99 Lakh Discount ✓ Loan
Processing Fee: Tenure
Rs.20/- inclusive Completion
of GST or 0.25% Reward ✓ Digital
of the Loan Payment
amount Subject Reward ✓ Rewards
to Maximum of
– EMI Schemes
Rs.500/-
(Download Full
Tenure: Up to 6
– PDF)
26
Months
Muthoot Loan Value: ✓ Good Credit 17% to *17%
Blue Power From Rs. 3 Behaviour 19% to 19%
Gold Loan Lakh to Rs. Discount ✓ Loan *
4.99 Lakh Tenure
Processing Fee: Completion
0.25% of the Reward ✓ Digital
Loan
Payment
amount
Reward ✓ Rewards
Subject to
– EMI Schemes
Maximum
(Download Full
of Rs.1200/
– PDF)
Tenure: Up to
6 Months
Muthoot Loan Value: No ✓ Good Credit 15% to 15% to
Blue
Behaviour
Smart Gold cap 22% * 22% *
Loan Processing Fee: Discount ✓ Loan
Rs.50/- Tenure
inclusive Completion
of GST & free
Reward ✓ Digital
registration for
Payment
NACH
Reward ✓ Rewards
Minimum
Tenure: 3 – EMI Schemes
Months (Download Full
Maximum – PDF)
Tenure: 36
Months* (36
Months tenure
applicable from
Rs.5 Lacs
onwards)

27
24X7 Loan Processing ✓ Good Credit N/A N/A
Fee: 0
Express Behaviour
processing
Gold Loan fees for Discount ✓ Loan
the first 5
disbursals Tenure
Completion

28
29
EMI Gold Loan Scheme of Muthoot
Fincorp Pvt. Ltd.

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

Sources:
(Muthoot Fincorp, n.d.)

30
SWOT Analysis

SWOT stand for Strength, Weaknesses, Opportunities and Threat

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

SWOT analysis in Muthoot Fincorp Pvt. Ltd.

STRENGTHS:

▪ Muthoot fincorp’s strength is their Muthoot group which is

very famous in gold loan area from the very long time and
their

31
experience in this industry help Muthoot Fincorp to make
base clear because customer’s faith in Muthoot is high.
They are providing best interest rate with minimum paper
work and their services satisfied customer.
 Diversified product profile of the MPG group.
 Healthy asset quality in the gold loan segment to
support overall group asset quality
 Improving earnings profile for gold loan business

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

OPPORTUNITIES:

 Nowadays people are taking gold loan more and more and
the market in gold loan is being large day by day. Muthoot
Fincorp have to take the opportunity of collect as possible as
customer through the market. They have to make their policy
easy and simple so rural area can also cover by them and
they make their branches in every corner of India.
THREATS:
 Many new banks are jump in this industry. Big threat is
that new comers in this industry will give tough
competition to them and customers are divided or transfer
to other bank because if new comers will give some extra
benefit or services better than Muthoot Fincorp, they will
lose customer. So new entrants are the biggest threat of
company.

32
Conceptual Framework

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

Importance of Study

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

33
Pros of Taking a Gold Loan

 Existing Asset Can Be Used

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

 Repledging

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

 Bullet Payments

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

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

34
Cons of Taking a Gold Loan

 Lower LTV

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

 Priced Gold Asset Could Be Lost

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

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

 Credit Score Can Get Dented Upon Default

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

Research question:

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

Muthoot Fincorp Pvt. Ltd’

35
Chapter - 2 :- Literature
Review

36
(Kannan. V. Unnithan, February 2017) The present study about gold loan
procedures of Urban Cooperative Banks is good. Firstly, the various tests used to
follow and facilitate the good guidelines of Urban Cooperative Banks. Secondly,
to discuss the details of gold and gold ornaments loan sub rules. Thirdly, to list
out loan for purchasing gold ornaments. Finally discuss the details about gold
ornament overdraft. There are several Cooperative Societies compete the Urban
Cooperative Banks. The Local Gold Loan institutions also contest the Urban
Cooperative Banks. Different procedures of gold loan to be helpful the banking
employees of Urban Cooperative Banks that guideline will be good for
performing gold loan. It concludes with an outline of vital area from the
literature.

(Das*, October,2019) Gold is one of the very important assets among the entire
assets class. In India gold also holds sentimental or social values. Since ancient
times, it is used as a collateral asset against borrowing the money. Previously gold
loan business was mainly controlled by unorganized players. Now days organized
gold loan business is one of the emerging lending business segments for Non-
Banking Financial Companies (NBFCs) and Banks in India. Organized sector
registers record growth in last decade. Recently various regulations have changed
by Reserve Bank of India (RBI) and other external factors negatively impacted
the business growth and financial performance of this segment. The study is
descriptive and analytical in nature. A non-banking financial company is one that
does activities based on loans and advance, share, securities, bonds, debentures,
stocks, etc. and which is registered under the Companies Act of 1956. Every
organisation makes profits and losses. So, there is a need to be continued and loss
making needs to be discontinued. So, there is a need to identify what are the
causes that enable profit making and what causes lead to loss making and
remedial measures which can be taken to overcome the losses.
Hence in the study titled. “An empirical study on comparative financial
evaluation between Mannapuram Finance Limited and Muthoot Finance
Limited.” a comparison has been done between the two Non-Banking Financial
Companies. The study has been taken the past 5 years financial statements of the
37
two various statistical techniques have been used to find out the true financial
position

38
(George, 09 May 2015) Discernible growth of gold loan NBFCs recorded
mainly on the backdrop of appreciation in gold price affirming the indicators of
financial soundness such as capital adequacy ratio, Non-Performing Asset (NPA)
and share of borrowing in the total asset of bank that are contained well within the
limit specified by RBI. Rules and regulations on gold loan NBFCs and
concomitant decline in gold price have led to the saturation of growth of NBFCs.
In short, the sharp correction of gold price would have a devastating effect not just
on gold loan NBFCs but also on the entire financial market.

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

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

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

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

39
(Sibi, September - 2014) This paper covers the gold loan protection practices
among borrowers in financial institutions. The aim of this paper is to collect the
borrowers’ opinion towards protection practices followed by Banks and NBFCs.
The aim was achieved through a descriptive study involving a survey. The dataset
from the sample underwent series of statistical analysis, i.e., correlation analysis
and one way ANOVA. Loan against gold is traditionally considered taboo
especially in Indian households. Even when gold is pledged, it is still done as the
last resort.

(DEEPTI SHASTRI GUPTA, A STUDY OF PERFORMANCE ANALYSIS OF

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

40
So, this research work is focussing on the determinant factors of the gold loan
market in Indore city. It draws attention to the important factors of gold loan,
which includes the brand name, customer service, financial factors, etc.
The study infers that people of Indore city are very focussed on the type of
lending institution, the interest rate charged on the loan taken, gold rate
prevailing in the market, simplicity of procedures, etc.

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

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

(Pooja Kayasth1, May –June 2021) The study's aim is to learn about how people
feel about gold loans. In addition, factors impacting gold acquisition and gold
loan acquisition were investigated. To learn about people's attitudes toward gold
loans in the Bardoli area. To get the results of my research study about "To study
the people's perception towards gold loans finance with the reference of Bardoli
region," I used a descriptive research design and a primary data collection method
to achieve the study's goal. A total of 161 people were surveyed for this study.
Data was collected for this study from a questionnaire completed by residents of
the Bardoli region.
Following the data collection via questionnaire, I need to know what people's
perceptions on gold loans are. The public opinion of gold loans is that they are
41
preferable to personal loans. The vast majority of people borrow gold from
banks rather than NBFCs. People choose simple instalment as a mode of
payment for gold loans. People believe that getting a gold loan is a simple
process that takes less time.

(Kurian, November 2014) Discernible growth of gold loan NBFCs recorded

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

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

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

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

avail gold loan as it can be availed within the short duration from Banking
institution and Non-Banking Financing institution where the preference to other
credit was comparatively lesser as it consumes time. This research study is
related to a comparative survey of the gold loan offered by public sector Banks
42
and non-Banking Financing Companies in Madurai. This study is focused on the
preference of the borrowers in availing the gold loan, the awareness level of
borrowers about lending norms, factors in unending borrowers to avail the gold
loan, problems faced by the

43
borrowers while availing gold loan and satisfaction level of borrowers towards
public sector Banks and Non-Banking Financing Companies in availing gold
loan. An attempt has been made to collect information from 107 respondents
from the borrowers of gold loan from public sector Banks and Non-Banking
Financing Companies in Madurai city. The data collected using an appropriate
questionnaire were analysed and interpreted using statistical techniques, and also
the testing of the hypothesis was done, and conclusions arrived at whether the
theories were accepted or rejected.

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

(Apurva Shrivastava, 2014) Gold loan is currently an emerging trend which is

seen in the cities as it is available at much cheaper rate of interest and with
simplicity of getting it than the other financing options. So, this research work is
focussing on the determinant factors of the gold loan market in Indore city. It
draws attention to the important factors of gold loan, which includes the brand
name, customer service, financial factors, etc. The study infers that people of
Indore city are very focussed on the type of lending institution, the interest rate
charged on the loan taken, gold rate prevailing in the market, simplicity of
procedures, etc.
44
Chapter – 3 :- Research
Methodology

45
Research Objective

 To know the satisfaction level of customer towards gold loan special

respect to Muthoot Fincorp Pvt. Ltd.

Research Design

This study is based upon Descriptive research design. In this study

mainly descriptive research design is used to analyse the satisfaction level
of consumer towards gold loan special respect to Muthoot Fincorp Pvt.
Ltd.

Objective of the Study

 To analyse the rate of customer satisfaction.

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

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

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

Sample Size:152

Research Design: Descriptive research design

Type of data: Primary data

Data Collection Tool: Questionnaire in Google Form

46
Tools and techniques: SPSS Software

47
Chapter – 4 :- Data Analysis and
Interpretation

48
4.1 Demographical Analysis:
Gender of respondent:
GENDER

Frequen Percent Valid Cumulativ

c e
Percent
y Percent
Male 100 65.8 65.8 65.8
Female 52 34.2 34.2 100.0
Total 152 100.0 100.0

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

49
Age of respondent:

AGE
Frequenc Percent Valid Cumulati
y Percent ve
Valid
Percent
21- 62 40.8 40.8 40.8
25
25- 47 30.9 30.9 71.7
35
35- 36 23.7 23.7 95.4
50
>50 7 4.6 4.6 100.0
Total 152 100.0 100.0

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

MARITAL STATUS
Frequen Percen Valid Cumulat
cy t Percent ive
Percent
MARRIED 70 46.1 46.1 46.1
Vali UNMARRI 82 53.9 53.9 100.0
d ED
Total 152 100.0 100.0

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

51
Occupation of respondent:

OCCUPATION
Frequen Percen Valid Cumulat
Valid cy t Percent ive
Percent
STUDENT 48 31.6 31.6 31.6
JOB 76 50.0 50.0 81.6
BUSINESS 13 8.6 8.6 90.1
HOUSEWI 15 9.9 9.9 100.0
FE
Total 152 100.0 100.0

Interpretation:

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

52
Qualification of respondent:

QUALIFICATION
Frequen Percen Valid Cumulat
cy t Percent ive
Percent
U 36 23.7 23.7 23.7
G
Graduat 79 52.0 52.0 75.7
e
Valid
P 37 24.3 24.3 100.0
G
Total 152 100.0 100.0

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

53
Monthly income of respondent:

INCOME

Frequency Percent Valid Cumulativ

Percen e Percent
t
0-15000 69 45.4 45.4 45.4
15000-
53 34.9 34.9 80.3
30000
30000-
18 11.8 11.8 92.1
50000
>50000 12 7.9 7.9 100.0
Total 152 100.0 100.0

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

54
Emergency need of money to respondent:

EMERGENCY NEED OF MONEY

Frequency Percen Valid Cumulativ

t
Percen e
t Percent
0-2 92 60.5 60.5 60.5
2-4 44 28.9 28.9 89.5
4-6 8 5.3 5.3 94.7
>6 8 5.3 5.3 100.0
Total 152 100.0 100.0

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

55
From where respondents get knowledge about loan:

FROM WHERE YOU GET INFO

Frequency Percen Valid Cumulativ

t
Percen e
t Percent
NEWSPAPER 34 22.4 22.4 22.4
HOLDING/BANNER 20 13.2 13.2 35.5
SOCIAL
58 38.2 38.2 73.7
MEDIA/INTERNET
FRIENDS/FAMILY 40 26.3 26.3 100.0
Total 152 100.0 100.0

Interpretation:
There are 38.2% respondents are getting knowledge about gold loan threw the
social media and internet, 26.3% are getting knowledge from friends and family
members, 22.4% are getting information from the Newspaper and remaining are
get information from holdings and banners. So, we can assume that Muthoot
Fincorp is investing advertisement money more in social media campaign to
catch higher customer range.
56
Purpose of taking loan:

PURPOSE OF TAKING LOAN

Frequency Percen Valid Cumulativ

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

Interpretation:

Main reason of taking gold loan is family requirement according to this data
because out of 152 response 92 are taking loan because of family requirement
which covered 59.9% of total response. Education fees is the second important
reason of taking loan
57
which covered 19.1% then medical emergency covered 13.2% of total and 7.9%
are covered by agriculture and others. From this data we can say that mostly
people use their gold in family requirement and they put their gold in bank and
borrow money from bank.

 Descriptive Analysis:

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

58
Interpretation:

 There are 152 total responses and there is scale based

questions in Questionnaire. Here the descriptive statistics
analysis has done by me.
 Mean value for easy documentation is 1.97 and that interpret that mostly
are agree with the statement that derived that Muthoot Fincorp has easy
documentation process.
 Mean value for less documentation process is 2.16 that interpret that
mostly are agree with the statement that is about Muthoot Fincorp has
less documentation process in gold loan.
 Mean value is 2.03 in faster loan approval that derived that the average
answer selected by respondent is agree.
 Mean value for affordable interest rate is 2.21 that derived that average
option which is selected by respondents is agree.
 Mean value for easy repayment is 2.06 that derive that respondent
gave average response of agree.
 Mean value for staff behaviour is 2.09 that suggest that there are
average respondents are agree with this statement.
 Mean value for fast response from staff is 2.00 that derived that there
are average responses collected as a agree opinion.
 2.1 is the mean value of problem time is convenient that interpret that
there is average response of agree.
 2.09 is the mean value of staff behavior is good as well as problem
solving skill is also good in that we can interpret that average response
is selected byrespondent is agree.
 1.97 is the mean value of statement that derived that safety of gold
provided by bank and average response selected from respondent is
agree.
 1.93 is the mean value which indicates that there is average selected
option is agree in insurance policy on gold.
 1.95 is mean value in locker facility provided by bank and that interpret
that average option selected is agree.
□ 1.97 is mean value in extra services provided with gold in that there is
59
average respondents are agree with this.

60
WILL YOU PRE FER TO OTHER

Frequen Percen Valid Cumulat

cy t Percent ive
Percent
YES 127 83.6 83.6 83.6
Vali NO 25 16.4 16.4 100.0
d
Total 152 100.0 100.0

Interpretation:

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

61
4.2 Statistical Analysis:
1. CROSS TABULATION:

GENDER * INT RATE AFFORDABLE * AGE Cross tabulation

Count
AGE INT RATE AFFORDABLE Total
SA A N D SD
MALE 5 25 7 2 1 40
GENDER
21-25 FEMA 2 14 6 0 0 22
LE
Total 7 39 13 2 1 62
GENDER MALE 10 15 6 2 1 34
25-35 FEMA 2 7 3 0 1 13
LE
Total 12 22 9 2 2 47
GENDER MALE 1 12 9 1 23
35-50 FEMA 2 9 2 0 13
LE
Total 3 21 11 1 36
GENDER MALE 1 2 0 0 3
>50 FEMA 0 2 1 1 4
LE
Total 1 4 1 1 7
MALE 17 54 22 5 2 100
GENDER
Total FEMA 6 32 12 1 1 52
LE
Total 23 86 34 6 3 152

Interpretation:
There are 25 are male and they are agree with that interest rate is affordable
which is provided by Muthoot Fincorp while taking gold loan. They are earning
less than 15000 per month.
62
GENDER * STAFF BEHAVIOR IS GOOD * AGE Cross
tabulation
Count
AGE STAFF BEHAVIOR IS GOOD Total
SA A N D SD
MALE 11 21 7 1 40
GENDER
21-25 FEMA 5 10 7 0 22
LE
Total 16 31 14 1 62
GENDER MALE 12 14 6 1 1 34
25-35 FEMA 0 8 4 0 1 13
LE
Total 12 22 10 1 2 47
GENDER MALE 3 12 7 1 23
35-50 FEMA 2 7 4 0 13
LE
Total 5 19 11 1 36
GENDER MALE 1 2 0 3
>50 FEMA 0 3 1 4
LE
Total 1 5 1 7
MALE 27 49 20 3 1 100
GENDER
Total FEMA 7 28 16 0 1 52
LE
Total 34 77 36 3 2 152

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

63
GENDER * SAFETY OF GOLD * AGE Crosstabulation
Count
AGE SAFETY OF GOLD Total
SA A N D SD
MALE 13 22 4 1 40
GENDER
21-25 FEMA 7 9 5 1 22
LE
Tota 20 31 9 2 62
GENDER MALE 13 15 3 1 2 34
25-35 FEMA 2 8 3 0 0 13
LE
Tota 15 23 6 1 2 47
GENDER MALE 5 11 6 1 23
35-50 FEMA 1 10 2 0 13
LE
Tota 6 21 8 1 36
GENDER MALE 1 1 1 3
>50 FEMA 0 4 0 4
LE
Tota 1 5 1 7
MALE 32 49 14 3 2 100
GENDER
Total FEMA 10 31 10 1 0 52
LE
Tota 42 80 24 4 2 152

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

64
GENDER * LOCKER FACILITY IS TRUST WORTHY * AGE
Crosstabulation

Count
AGE LOCKER FACILITY IS TRUST Total
WORTHY
SA A N D SD
MALE 13 19 5 2 1 40
GENDER
21-25 FEMA 6 9 7 0 0 22
LE
Tota 19 28 12 2 1 62
GENDER MALE 15 11 4 3 1 34
25-35 FEMA 4 6 3 0 0 13
LE
Tota 19 17 7 3 1 47
GENDER MALE 6 12 5 23
35-50 FEMA 3 9 1 13
LE
Tota 9 21 6 36
GENDER MALE 1 2 3
>50 FEMA 0 4 4
LE
Tota 1 6 7
MALE 35 44 14 5 2 100
GENDER
Total FEMA 13 28 11 0 0 52
LE
Tota 48 72 25 5 2 152

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

65
2. ONE WAY ANOVA:

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

ANOVA
OSLRGL
Sum of df Mean F Sig.
Squares Square
Between 2.394 3 .798 2.4 .068
Groups 26
Within 48.670 148 .329
Groups
Total 51.064 151

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

66
2)
H0: There is no significance association in the overall satisfaction of
consumer regarding mutual fund on the basis of Age group.
H1: There is significance association in the overall satisfaction of consumer
regarding mutual fund on the basis of Age group.

ANOVA
OSLRGL
Sum of df Mean F Sig.
Squares Square
Between 1.549 2 .774 2.3 .101
Groups 30
Within 49.515 149 .332
Groups
Total 51.064 151

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

67
Chapter – 5 :-
Findings

68
Findings:
 There are mostly male respondents in this research. Their portion
in this research is 65.8%. So I can pretend that there are mostly
male are taking loan on gold.
 In this research, age group of 21 to 25 years are more responding
to this questionnaire and I am assuming that youth is using gold as
a opportunity they don’t believe that gold is for show off they are
utilize the use of gold when they don’t need of gold. They covered
72.4% portion of total responses.
 Mostly unmarried respondents are there who take gold loan
from Muthoot Fincorp bank and they covered 77% of response.
I believe that unmarried people are taking decision by their own
and they are inly one who don’t need to take permission from
others so they are taking loan more than married because
married people have to ask their partner also and then they
decide that they should take loan or not that’s why there are less
married responses.
 In my data students are more because some of our witnesses of
gold loan and their parents are take loan and they have visited
Muthoot bank and they take services from bank that’s why
student’s responsesare more in this data. They covered more
than 60% portion.
 Majority of 52% respondents are graduated from overall responses.
 Majority of 45.4% respondents are earning less than 15000 per
month so we can assume that they are suffer from money crisis
more than others and they prefer gold loan to fight against money
crisis.
 Mostly 38.2% are those who get information from social media
and internet here we can assume that Muthoot is spending their
advertisement expense on social media campaign.
 Mostly people are taking loan because of family requirement and
they are covering 59.9% of total.

69

View publication stats

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

70

View publication stats

Chapter – 6 :-
Suggestions

71

View publication stats

6.1 Suggestion:

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

72

View publication stats

Chapter – 7 :-
Conclusion

73

View publication stats

7.1 Conclusion:

From my research I can conclude that there are more men who get benefit of
Respondents are satisfied from the services which are provided by bank Because they will
prefer other to try these services. Low income earner people
Take more loan as compare to high income earner.

7.2 Learning from SIP:

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

74

View publication stats

Chapter – 8 :-
Bibliography

75

View publication stats

Bibliography
Angel, P. V. (2019). A Comparative Study on Gold Loan Offered by Public Sector Banks
and Non-Banking Financing Companies, Madurai. Shanlax International Journal of
Commerce, 7.
Antony*, D. V. (1, 2017). A STUDY ON CONSUMER ATTITUDE AND
PERCEPTION TOWARDS
GOLD LOAN OFFERED BY SCHEDULED COMMERCIAL BANKS WITH REFERENCE
TO
COIMBATORE. International Journal of Computational Research and Development
(IJCRD).
Apurva Shrivastava, R. S. (2014). A Study on Factors Affecting the Gold Loan
Financing referance to indore city.
Das*, D. S. (October, 2019). AN EMPIRICIAL STUDY ON COMPARATIVE
FINANCIAL EVALUATION BETWEEN MANNAPURAM FINANCE LIMITED
AND MUTHOOT FINANCE
LIMITED. The International journal of analytical and experimental modal analysis.
DEEPTI SHASTRI GUPTA, D. V. (Dec.2020). A STUDY OF PERFORMANCE ANALYSIS
OF GOLD
LOAN NBFCS BASED ON CAMELS MODEL.
DEEPTI SHASTRI GUPTA, D. V. (Dec.2020). A STUDY OF PERFORMANCE ANALYSIS
OF GOLD
LOAN NBFCS BASED ON CAMELS MODEL.
Dr. Anurag Mehta, *. M. (june 2019). Approved percentage and gold loan: An
analytical Study. Journal of Emerging Technologies and Innovative Research
(JETIR).
Dr. Santhimol M.C*, J. J. (2019). Role of nbfc gold loan on the socio-economic position of its
Customers in koothattukulam municipality. International Journal of Management, IT
And Engineering.
forbes. (n.d.). Retrieved from www.forbes.com:
(https://www.forbes.com/advisor/in/gold/the-how-why-of-getting-a-gold-
loan/ George, J. a. (09 May 2015). Discernible growth of Gold Loan
NBFCs in India.
Kannan, S. (April 25, 2020). A Study on Financial Performance of Muthoot Finance and
Cholamandalam Finance.
Kannan. V. Unnithan, D. M. (February 2017). GOLD LOAN PROCEDURES OF
URBAN COOPERATIVE BANKS; A CASE GOLD LOAN PROCEDURES OF
URBAN COOPERATIVE
BANKS; A CASE. Asia Pacific Journal of Research.
Kurian, J. G. (November 2014). Discernible growth of Gold Loan NBFCs in India.
Muthoot Fincorp. (2019-20). Annual Report of Muthoot fincorp. In Annual Report
2019-20 (p. 9). Muthoot Fincorp.
Muthoot Fincorp. (n.d.). Muthoot Fincorp Pvt. Ltd. Retrieved from
www.muthootfincorp.com: https://www.muthootfincorp.com/about-us/founders/ \
Nishanth. (n.d.). Marketing Strategy of Financial ServicesFirm With Respect To
Muthoot Finance.
P.Vanitha Malarvizhi, A. (2019). A Comparative Study on Gold Loan Offered by Public
Sector Banks and Non-Banking Financing Companies,Madurai. International Journal of
Commerce.
76

View publication stats

Chapter – 9 :-
Questionnaire

77

View publication stats

Name:

Gender: Male ……..

Female……..
Age:
Between 21 to 25
Between 25 to 35
Between 35 to 50
Above 50

Marital Status:
Married
Unmarrie
d

Occupation:
Student
Job
Business
Housewif
e

Qualification:
Under
Graduate
Graduate
Post
Graduate
Other

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

How many times in a year you have emergency need of

money? Less than 2 times
2-4 times
4 to 6 times
More than 6 times

>From where you got information about Gold Loan scheme?

Newspaper
Holding / Banner
Social
Media/Internet
Friends/Family

78

View publication stats

>Purpose of taking Gold
Loan Family Requirement
Medical
Requirement
Education Fee
Agriculture Purpose
Other

79

View publication stats

SA A N D SD
Documentation process
is easy
Less document required for
gold loan
Gold loan approval is faster
Gold loan interest rate is
Affordable
Repayment options are easy
Staff behaviour is good
Response from staff is faster
Problem solving time is
convenient
Problem solving skill and
behaviour of staff is good
Muthoot Fincorp provides
safety of gold ornaments
Insurance policy on gold
provides high level
of assurance of gold
Locker facility is trustworthy
Services provided with gold
loan is good (Gold
Insurance,Mediclaim,Accident
insurance)
Loan closing system is faster

>Will you refer to others for gold loan? * Yes

No

80

View publication stats