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
ACKNOWLEDGEMENT
This 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 SUMMARY
The 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
PGNO.
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 25
DATA
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 54
money?
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

18
COMPANY OVERVIEW
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

19
multiple tools for technical analysis.
Acquisition of Agri Marketing Services Limited ("Agri")
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

20
GROWTH AND DEVLOPMENT

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 registrar to 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

21
equities team; formed a Singapore subsidiary; raised over USD 300 mn in the
group; launched consumer finance business under the ‘Money line’ brand.
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)”

22
PERFOMANCE AND OTHER KEY PERFOMANCE DATA
Healthy Net-worth
(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.

16.5
16.1
16

15.5
15.1
15
14.2
14.5

14

13.5

13
2011-12 2012-13 2013-14

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
 70
64.7
60
52.5 50.7
50

40

30

20

10

0
2011-12 2012-13 2013-14

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.
14
12.1 12.4
12

10

7.3
8

0
2011-12 2012-13 2013-14

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.
10
8.9
9 8
8
7
6
4.4
5
4
3
2
1
0
2011-12 2012-13 2013-14

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
 profit after tax rs.
2500
2104
2000 1887.2

1500
1053.8
1000

500

0
2011-12 2012-13 2013-14

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
internal appraisal of properties including valuations by international property

27
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
department (sales and collections) and the underwriting department (credit

28
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 Scheme Funding Purity ROI Per gram Frequency
code name % monthly rate
331 DHAMAL Carat 18carat and 1.75 1850 Monthly
based above
334 DHMALQ Carat 18carat and 2.20 1750 Quarterly
based above
346 JAN Carat 18carat and 1.00 1250 Monthly
SHAKTI based above
366 SARAL 100% 18carat and 1.30 1600 Monthly
above
371 BHARAT 100% 20carat and 1.50 1750 Monthly
NIRMAN 20 above
374 SARAL 3Q 100% 20carat and 1.60 1650 Quarterly
above
376 SARAL 4M 100% 21carat and 1.75 1800 Monthly
above
379 SARAL 4Q 100% 21carat and 1.80 1750 Quarterly
above
381 SARAL 5M 100% 21carat and 2.00 1850 Monthly
above

30
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
under the control of bank or finance company from where you take a
Gold Loan.

31
  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
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

32
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-
employed, businessmen and private and public limited companies for their
financing needs for owning and running commercial vehicles.

33
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.

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.

34
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.
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

35
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
urban areas, looking to buy cars, go to banks for loans, but those seeking
trucks, especially from smaller towns, prefer vehicle finance NBFCs.

42
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 Questionnaire , Interview method
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 People
require
money
1 12
2 32
3 26
4 30

32
30
26

12

1 2 3 4

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?

relatives 52
friends 10
loan 30
saving 8

52

30

10
8

relatives friends loan saving

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

100
95

90

80

70

60

50

40

30

20

10
5

0
yes no

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

90

10

yes no

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

60

50
50

40
40

30

20

10

0
muthoot IIFL

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

66

34

own rent

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

67

33

yes no

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

80

20

yes no

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

50

25

15
10

home loan gold loan commercial loan commercial vehical

loan

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.

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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.

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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_An
nualReport_2013-14.pdf
 http://www.dnb.co.in/EquityBroking2012/Adv%5CIndia%20Infoline%20L
imited.pdf
 http://scholarship.claremont.edu/cgi/viewcontent.cgi?article=1247&cont
ext=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 People

money
1
2
3
4

Q2 how do you manage when you required money?

relatives
Friends
Loan
Saving

Q3 Are you aware about concept of gold?

Yes
No

Q4 Have you used gold loan?

yes
no

Q5 if yes which company?

Muthoot
iifl

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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

68