INTRODUCTIONIndia is one of the largest markets for gold and as of fiscal 2010, accounts for approximately 10% of the total world gold stock with an annual demand of approximately 700 tonnes. Several gold based financial products have been made available to retail consumers in the Indian market from time to time with a view to bring the gold holdings to the core financial market. Lending against gold has been one of the most popular instruments based on gold, and it works well with the Indian rural population, which typically views gold as an important savings instrument that is liquid and can be into converted into cash instantly to meet their urgent cash requirements. Moreover, traditionally gold owners in southern India are more open than elsewhere in the country to accept and exercise the option of pledging gold to borrow money. STATEMENT OF THE PROBLEM One of the most discussed topics in the present competitive gold loan market is about the best gold loan company. The two stand out names in this context is Muthoot Finance Limited and Manappuram General Finance and Leasing Ltd, Both companies face a cut throat competition among each other to reach the top position of this market. In order to maintain and increase the market share both companies have to find out their weakness and turn it into their strengths. Satisfied customers are vital for the existence of the firms. This study aims to bring out the reasons which make customers choose one company over the other and enlist the best gold loan company in India. REASONS FOR SELECTION OF THIS TOPIC Muthoot Finance Limited is the largest gold financing company in India in terms of loan portfolio (Source: IMaCS Industry Report (2010 Update). Muthoot provides personal and business loans secured by gold jewellery. They have a “Systemically Important Non-deposit taking NBFC” headquartered in the southern Indian state of Kerala. Our branch network as of October 31, 2010 was 2,813 branches… Manappuram General Finance and Leasing Ltd or MAGFIL is a non-banking financial company (NBFCs) situated in Valapad, Thrissur, Kerala state. Manappuram is the first NBFC in India to get a short term rating of A1+ from ICRA (the highest short term rating awarded to any corporate in India by ICRA) and a long term rating of LA+ from ICRA. Manappuram has over 1,000 branches across 15 states, with a staff strength of over 6,500 people and a customer base of over 5,000… There have been many studies connected with the comparison between two different organisations, but no significant efforts has been made to study the gold loan provided by Muthoot Finance and Manappuram Finance, the two top gold loan financing companies in India. Until now a study on the gold loan facilities offered by Muthoot and Manappuram has not undertaken. The present study seeks to fill up the gap and is likely to open further detail for probe in this regards. LEARNING FROM THE STUDY This study will help to identify the best gold loan provider and the reasons which make it stand out from its competitors. The comparative analysis will also help to recognize the important features which a customer looks into while choosing a gold loan plan. And as for the other players in the market, this study will enable them to be acquainted with their weaknesses and strive to improve those features in which they lag behind the top player. ORGANISATIONAL PROFILE INDUSTRIAL PROFILE OVERVIEW OF THE INDIAN ECONOMY India is the fifth largest economy in the world after the European Union, the United States, China and Japan with an estimated GDP of approximately US$3.56 trillion in 2009, on purchasing power parity ("PPP") basis. India is also one of the fastest growing economies in the world. According to the Central Statistical Organization, India's GDP grew at a rate of 7.4% in fiscal 2010. According to India Brand Equity Foundation, India is one of the largest bullion markets in the world. India is also the largest consumer of gold jewellery in the world (approximately 20% of global gold consumption), and the largest importer of gold in the world. Gold imports were approximately 739 tonnes in fiscal 2010. OVERVIEW OF THE INDIAN CONSUMER CREDIT MARKET The consumer credit market in India has undergone a significant transformation over the last decade and experienced rapid growth due to consumer credit becoming cheaper, more widely available and increasingly a more acceptable avenue of funding for consumers. The consumer credit market has developed in India due to the following factors: • Increased focus by banks and financial institutions on consumer credit resulting in a market shift towards regulated lenders from unregulated moneylenders/financiers. • Increasing trend of Indian consumers to acquire assets such as cars, goods and houses on credit. • Fast emerging middle class households in our target segment. and growing number of • Improved terms of credit as interest rates in India fall in line with global interest rates. • Legislative changes that offer greater protection to lenders against fraud and potential default increasing the incentive to lend. • Growth in assignment and securitisation arrangements for consumer loans has enabled non deposit based entities to access wholesale funding and compete solely on their ability to originate, underwrite and service consumer loans. Credit availability, affordability and consumer confidence are the key drivers for consumer loan growth. A variety of financial intermediaries in the public and private sectors participate in India's consumer lending sector, including the following: • Commercial banks. • Long-term lending institutions. • NBFCs, including housing finance companies. • Other specialized financial financial institutions and institutions and state-level • Lenders in the unorganized sector. GOLD FINANCE INDUSTRY IN INDIA The recent economic boom and crash has sent shock waves throughout the economy, creating radical change in business paradigms, consumer demands, and even in economic cultures themselves. One of the greatest changes in the developing world has been a change in the people's relationship with gold. Since the days of the Roman Empire, gold has been seen as both a designer luxury and an immense store of value, and because of its portability and use as jewelry, gold has been a traditional fashion and savings account for people in Eastern Europe, India, and other foreign countries for a very long time. But lately, old habits seem to be dying fairly easily. The pawning of gold, which has for a long time been perceived as shameful, is rapidly becoming an acceptable practice. In India, for example, this long-held tradition is being replaced by gold loan businesses, which offer personal and business loans with gold as a security for lower interest rates than one would have access to with an unsecured loan. Many of the borrowers are women, who are now becoming more active members of society and are looking for ways to finance things such as holiday trips, children's educations, and down payments for homes. Private lenders in India are making a killing off of this new trend. Once a very small industry, the gold loan business has taken off and is now a booming trend in India. The business is an easy way for people in impoverished areas to gain access to quick credit. This is not to say that credit comes cheap; many of these gold loan businesses charge interest at rates as high as 18%; higher than many of the credit cards we are familiar with. While this may seem a bit harsh, this is still a great leap forward both culturally and economically for people in the third world. Historically, informal lending practices such as these are the beginnings of developed credit markets in later stages of development. This helps people like those in rural India gain access to the credit that they need to begin building futures for themselves and their children. The company was founded in 1949 by late Mr. Manappuram Group has emerged as a force to reckon with. The principal asset of the company was the impeccable integrity devotion and .P. a workforce of over 14. We are involved in providing a wide range of financial solutions to our customers that will make their life easy. we are India`s Largest Listed and Highest Credit rated Gold Loan Company.MANAPPURAM GENERAL FINANCE AND LEASING LIMITED With the Trust. Commitment and Transparency extending over 61 years. mainly with money lending activity on a very modest scale.950 branches spread over 19 States of India and a total business over Rs. V. Nandakumar. a great visionary of his times. under the stewardship of Mr.500 and a customer base of over 5 Million. V. Today with 9 companies under its fold. Padmanabhan. the Chairman of the company. having more than 1. The company commenced its operations at Valapad.C. 70 Billion. Mr. V. MAGFIL had several Firsts. Nandakumar. First NBFC from Kerala to get a credit rating of "MA+" from ICRA. Mr. Nandakumar was working as an officer of the erstwhile Nedungadi Bank. Nandakumar has been instrumental in taking the organization to its present level. before he took over the captaincy of the company. First NBFC from Kerala to receive a Certificate of Registration issued by RBI mainly on the strength of the company`s ability to settle the depositors` claim in full. . Within a short span of time MAGFIL recorded a phenomenal growth to become a premier NBFC from South India. the company never had to look back. With an alert mind and unconventional methods of problem solving. He believes that the future belongs to those who can advantageously use the technology to serve the customers by evolving customized products and services.foresight of its founder. Mr. Known for his sharp business acumen and professionalism.P. Mr. Under his dynamic leadership. (a credit rating agency approved by RBI) which signifies the company`s ability to make timely repayment of the principal and interest under its Public Deposit Programme. his illustrious son. On the sad demise of the founder in 1986. The Group`s flag-ship Company. In a short span of time. The company soon established itself as a safe haven for investments of the people of the area providing absolute safety and assured returns. Nandakumar has put this organization on the launching pad. Manappuram General Finance and Leasing Limited (MAGFIL) was established in 1992 in the wake of economic reforms launched by the Government of India mainly to take advantage of the importance assigned to Leasing as a vehicle to promote decentralized pattern of Economic Growth through small and medium enterprises. the present Chairman took over the reins. First NBFC from Kerala to go for public issue. As a part of its diversification. was set up in the year 2000. it is one of the topmost Nidhi Companies in South India. a chit fund company registered under the Chit Fund Act 1982. Chennai and Cochin Stock Exchanges and are actively traded in BSE at levels far above par. . this Group set up Manappuram Benefit Fund Limited. where most of the Chit Fund Companies in Kerala found it difficult to conform to the discipline of this central legislation. a NIDHI Company to provide specialized services to its members. a central legislation enacted by Government of India. Kerala to receive Foreign Direct First NBFC from Kerala to receive AD. the company also started Forex business upon the Reserve Bank of India granting it a fullfledged money changers license in the year 2002. Today. 50 million.convertible Redeemable Debenture issue for Rs. In 1993.II (Authorised Dealer . Manappuram Chits (I) Limited. It is the FIRST NBFC from Kerala to have received Adequate Safety rating for its Secured Non. These are the Highest Short Term Rating awarded by ICRA and CRISIL to any Corporate in India and Long term rating of LA+ for its working capital limit. First NBFC from Investment (FDI).II) License from RBI. First NBFC from Kerala to obtain Broker`s License from IRDA (Insurance Regulatory & Development Authority). The shares of the company are listed in Mumbai. First NBFC in the country to receive a Short-term rating of A1+ by ICRA and P1+ by CRISIL. First NBFC from Kerala to issue bonus shares at the ratio 1:1. It is a matter of considerable pride that the company has a full-fledge training establishment with very few parallels in the NBFC sector. The Group has received ISO 9001-2000 certification in the year 1993 as a hallmark of its having attained the International Quality Standards. Ezremit and MoneyGram. company was awarded Broker`s License by IRDA to sell insurance. Coinstar. the company has derived its strength from the dedication of its highly motivated staff. Whilst the company`s core activity continues to be Gold Loan. where in-house training courses are conducted almost continuously in a very professional manner for up gradation of the skills and for enhancement of functional efficiency so as to make the organization a . in collaboration with Xpress Money. In November 2006. the company has recognized that the best of investments are investment in people and has accordingly assigned considerable importance in the matter of training its staff. In order to look after the fee-based activities exclusively. it has entered very aggressively into fee-based activities especially in the wake of opening up of insurance sector allowing private participation. Being an organization with a vision. As an Insurance broker. Zoha. Thus the company has emerged as a one-stop financial Super Market. the company is able to offer its customers a wide variety of products tailor-made to their requirements. the flagship company of the Group. the Group has promoted a separate company called Manappuram Insurance Brokers Private Limited (MAIBRO) as wholly owned subsidiary of MAGFIL. Instant Cash.The company also commenced in a big way for instant money transfer facility. As a premier organization. Instant Money Transfers being the fastest method of inward and outward remittance of funds will be useful to NRIs for remitting money to or from their relatives in India. who will be able to receive the proceeds within a few minutes of remittance. When converted into equity. Two Hundred and Eighty Four) equity shares of Rs. the company has also received capital infusion of Rs. with participation from its promoters. Every employee has been given very clear idea of his role which enables them to function more efficiently and produce better results.each for Rs.284 (Rupees Four Million. 234 million each. Six Hundred and Sixty Seven Thousand.each at a price of Rs. These funds have been raised for expanding our business in gold loan and vehicle loan by opening of more branches across the country. 1 Billion and 80 Million from UK and the USbased equity firms. The UK-based Ashmore Alchemy. both these investment companies together will be holding Rs. with a wide Branch network across the .100/. a joint venture between Ashmore and Alchemy has invested Rs.79% of paid. The Group functions with a tremendous sense of social responsibility. Hudson Equity Holdings Limited and Sequoia Capital India Investment Holdings for preferential issue of compulsorily convertible preferential shares of Rs. aggregating to Rs.667. The company`s vision in the short term is to emerge as a strong national player. The setting of Manappuram Institute of Management (MAINMA) in September. we have appointed Earnest & Young. 10/. 100. an internationally reputed firm as our auditors. 320 million through its Mauritiusbased investment vehicle.up equity share capital of the company. 468 million to be converted into equity shares later. 4. 2005 to be groomed into a management institution of all India repute was dictated by this social responsibility. LLC. In November 2008. Considering the increase in the size and volume of operations of the company."Customers` Delight". The Company has signed an agreement with M/s. AA Development Capital India Fund.272 constituting a maximum of 29. again. even minutes at some of the NBFC viz. Some lenders charge a nominal fee for processing and others a small fee as closing charges.A BETTER DEBT OPTION If you have gold jewellery to offer as collateral for personal loan. However. within hours. . "One of the major advantages is that the loan is processed almost immediately. procedural hassles are minimal and banks don't check your credit score. this will save a lot of your time. most normally require no more than a proof of income or address. With the current interest rate fluctuations. GOLD LOAN . Not only are your overall costs reduced. a jewel loan requires no such score.entire country to serve its customers as a one-stop financial super market that makes our customers` life easy. While the requisite documents for a jewel loan differ across lenders. Here is where your jewels can lend a hand. specifically gold. with minimal documentation. opting for a jewel loan as against a personal loan is more lucrative. can be as low as Rs 5. Co-operative banks require you to be a member. MANAPPURAM FINANCE. The amount of documentation and the excessive verifications before your personal loan gets processed can be a nightmare. The clincher: the interest rates between a jewel loan and a personal loan can differ by as much as 5-8 per cent for the same amount loaned. charges for which. The Credit Information Bureau (India) Ltd scores which reflect an individual's credit history are beginning to play an important role in acquiring personal loans. Some banks. Subject to specific guidelines from the apex bank. reflecting the market price at that point of time. the RBI had issued a notification which permitted bullet repayment (a lump sum payment of the principal at maturity) of gold loans.Jewel loans can be availed of at co-operative banks. less than 3 minutes. as they would not have any record of your default history. the only disadvantage. In any case. Approaching another branch or bank in this case would be one solution. the time is much less than the minimum three days of processing time for a personal loan. each bank may fix its rate for gold. Care should be exercised if you have defaulted on a loan earlier. Loan to value. MANAPPURAM FINANCE is exceptional in this regard maximum as it serves the customer with amount at minimum time i.e. or the maximum ratio of a loan's size to the value of the asset. .. In late 2007. some co-operative and public sector banks may take up to a day to issue the loan. private sector banks and other private lenders. Your jewels might not be returned at the end of the loan tenure if you approach the same branch. The Reserve Bank of India has no strict policy on jewel loans. offer it only in certain regions. for a jewel loan is on par with that of a personal loan. public sector banks. be it personal or any other. While private lenders process the loan in less than a couple of hours. however. the individual must repay some amount of the principal along with the interest every month. MANAPPURAM FINANCE .G. But.A State Bank of India official. cautioned that some time in the near future. Considering the advantage a jewel loan offers in terms of a rent-free locker. the tenure is annual. they would start looking at Cibil scores before approving a jewel loan. an advantage with monthly renewals is that the loan value also increases every month with the appreciation of gold. as non-repayment for a continuous period of three months will render the loan a non-performing asset.) RAGHU. The loan tenure is not uniform across banks. Non-banking financial companies like Manappuram Finance have a onemonth tenure. however. With private lenders like HDFC Bank and some co-operative banks. AGM. At SBI. a little bit of juggling can even help you save renting a locker for your jewels! (Obtain a fixed deposit on the loan. which should work out lesser than the rent charged on lockers. Higher loan amounts. Choose from a range of schemes. in minutes! Loans up to One Crore rupees. founded in 1949. registered under Reserve Bank of India. Highlights of Gold Loan . Loan against Gold Ornaments Why go for Personal or Business loans when you have the power of gold with you! Get a loan against your gold. net weight of the gold. Draw instant Cash by pledging your Gold Ornaments and Jewellery.SERVICES Gold Loan / Loan Against Gold Welcome to India`s First Listed and Highest Credit Rated Gold Loan Company. there’s one just right for your needs. depending on purity. Pay interest only for the exact period of loan. No time-consuming formalities involved.30 18% days 18% 18% 31-60 21% 21% GL D2 Rate of Interest (p. and to the exact number of days. Different schemes for different needs.) In Keral a 21% In Karnataka. Operational Schemes Scheme Name Tenure GL D1 0 .a. Minimum Requirements: Only one recent ID—Voter ID/ Ration Card/ Driving License/ Passport.30 14% days 14% 14% 31-60 days 18% 18% 18% 61-365 days 24% 24% 24% 0 . In Tamilnadu & Other Andhrapradesh States . to suit all income groups. the Customer can continue on the initial interest rate.C1 scheme Rebate @ 1% p.days GL B2 GL A2 GL A+ GL C1 61-365 days 24% 24% 24% 0-90 days 20% 21% 21% 91-180 days 22% 23% 23% 181-365 24% days 24% 24% 0 .a. shall be provided if account settled / paid interest before first 3 months of the tenure. provided he/she is .90 19% days 20% 20% 91-180 days 22% 22% 22% 181-365 24% days 24% 24% 0-90 days 21% 22% 22% 91-365 days 24% 24% 24% 0-365 days 22% 24% 25% Rebate in Gold loan Scheme: In GL. In all other schemes mentioned above. The loan is based on the weight. Interest shall be payable at the rate specified as above along with incidental charge as may be fixed by the Company from time to time.a. the Borrower shall have the option to foreclose the loan at any time . Interest will be calculated on the basis of 360 days a year on the amount outstanding. The period of loan is one year and the Borrower is required to repay the loan along with interest on or before one year from the date of disbursement. Note: Overdue interest is chargeable at 3% p. When interest is not paid at monthly intervals the interest shall be compounded as mentioned above. However. 3.regular in paying monthly interest. after 1 year Compounding in all Schemes at monthly rest General Terms and Conditions 1. purity of the Gold and adjusted market value. Interest will be payable from the date of the loan till the account is closed. If the loan is not repaid on demand within one year the Company shall have the right to levy overdue interest @ 3% pa after one year on the amount of loan plus interest in default. A higher LTV (loan per gram) is assessed by the Company as a greater risk as compared to lower LTV because of which higher LTV loan attracts a higher rate of interest. both days inclusive. 2. if the Company is convinced. The charges may be revised from time to time at the discretion of the Company which will also be displayed in the notice board and Company's website. at its sole discretion. after serving a registered notice to the Borrower subject to the terms mentioned in para 13 below. As notices / reminders will be sent to the Borrower as per requirements postage charges will be recovered from the respective account. 5. Prepayment charges. if any. The Company reserves the right to sell the Gold by public auction at any point of time or in the immediate future. interest and other charges due. will be mentioned in the pawn ticket. that the market price/ maximum realizable amount by sale of the pledged Gold has come down below or equal to the total amount due from the Borrower by way of principal. . even before the expiry of the period of the loan of one year.during the currency of the loan by paying the principal loan amount alongwith interest and other charges. 4. The Borrower can also make part payments of principal or interest at any time during the currency of the loan. food security was defined in its most basic form as physical. At the International Conference on Nutrition (ICN) held in Rome in 1992.Rationale study Rationale It is well recognized that household food insecurity is one of the three underlying causes of malnutrition. social and economic access by all people at all . Food insecurity. poor conditions of health and sanitation. and inappropriate social and care environment are the major causes of poor nutritional status. Thus food insecurity exists when people lack access to sufficient amounts of safe and nutritious food and are therefore not consuming the food required for normal growth and development. short-term and long-term) of food and nutrition insecurity and intrahousehold inequalities of differing natures in different regions. it is difficult to design or evaluate policies and programmes intended to address household food and nutrition security or to examine the impact of non-household food and nutrition .times to sufficient. transitory. This may be due to the unavailability of food. or inadequate utilization at household level. insufficient purchasing power. safe and nutritious food which meets their dietary needs and food preferences for an active and healthy life. inappropriate distribution. It is difficult to know how many households or even individuals are food and nutrition insecure. and for an active and healthy life. Because of the lack of a universally applicable indicator and the lack of understanding household dynamics and factors influencing its dynamics. given the multiple dimensions (chronic. the disabled. infants. To shed light on these issues. and cultural.g. Study objectives The specific objectives of the study were to: Identify factors influencing the dynamics of intrahousehold food and other resource distribution for improving nutrition security of the vulnerable. and older people. Facilitate household and community-based interventions to ensure and enhance family well-being with specific focus on caring for the vulnerable. adolescents. socio-economic and behavioural considerations are routinely included in development policies and programmes that are intended to improve household food and nutrition security for the vulnerable. young children. nurturing. . pregnant and lactating women.security policies or programme activities on household food and nutrition security. The main aim was to provide guidance for policy-makers to ensure that household dynamics. and approaches to enhancing the health. e. Stimulate and build national capacity for operational research on determinants of health. in 1995 the WHO Department of Nutrition for Health and Development (NHD) home web page began undertaking a multi-country study on improving household food and nutrition security for the vulnerable. nutrition and behavioural change. caring and development functions within households and communities. 1 PRIMARY OBJECTIVES The primary objective of this study is to compare the gold loans provided by Muthoot Finance Limited and its competitors. To analyze the rate of customer satisfaction. Foster the development of human resources and programmes to protect and promote nutrition security of the vulnerable. OBJECTIVES OF THE RESEARCH PROJECT 3. To analyze the gold loan facility provided by Muthoot Finance limited. This study aims to bring out the reasons which make customers choose one company over the other. In order to maintain and increase the market share both companies have to find out their weakness and turn it into their strengths.2. . To observe the working of the various departments in relation with the study. Satisfied customers are vital for the existence of the firms. Both companies face a cut throat competition among each other to reach the top position of this market. The two stand out names in this context is Muthoot Finance Limited and Manappuram General Finance and Leasing Ltd. To know about the preferences of the customers. PROBLEM DEFINTION One of the most discussed topics in the present competitive gold loan market is about the best gold loan company. and facilitate and encourage an international exchange of ideas and experience in the area of household food and nutrition security. Collect and disseminate scientific and technical information. SECONDARY OBJECTIVE To suggest various factors to improve customer satisfaction. To study the behavioral factors of customers in choosing a particular gold loan. SCOPE OF THE RESEARCH PROJECT The scope of the study is to identify and analyze the factors which make the gold loan provided by Muthoot Finance Limited the best and most sought after. Indentify the factors responsible for the high customer satisfaction. . increasing the market share of the company. To evaluate the social security and empowerment process of the company. The reason behind the huge success of this facility is unlimited. To evaluate the suggestions of the customers which is necessary for the further development of the organization. Thus. This study intends to: To know the present market share of Muthoot Finance Limited. data collection and various tools in data collection.RESEARCH METHODOLOGY In this chapter. Secondary data were used to get an overview about the two companies. RESEARCH PLAN PRELIMINARY INVESTIGATION Preliminary investigation involves the following: Direct visit to the company. reliability and accuracy of the project. Analysed about the scope and viability of the existing facilities. Methodology can be said as the methods used by researchers in selecting samples. explains the structural frame work . sample size. It determines the strengths. Discussions with the branch manager.The research methodology considered as a blue print of the study. EXPLORATORY STUDY . To analyse and interpret the data collected using figures and tables. They are original and give first hand information.Kerlinger (1959) PHASES OF RESEARCH DESIGN Sample design Sample design deals with the method of selecting items to be observed for the given study. . Statistical design These design concern with the quantitative and statistical aspects of the design such as technique of study. The last phase of this project is to give suggestions to both Muthoot Finance and Manappuram Finance. staff and the customers. Personal interviews with branch manager. Observational design Observational design relate to the conditions under which the observations are to be made while conducting research studies. PRIMARY DATA The data collected directly by the investigator are called primary data. structure and strategy of investigation conceived so as to obtain answers to research questions and to control variance” by F. the methods of model building etc. Normally data collected comes under two categories. COLLECTION OF DATA The successes of the study are based upon the proper collection of data.N. Questionnaires were used to understand various factors affecting the gold loan financing decision. Primary and Secondary. RESEARCH DESIGN “A research design is the plan. Survey method Survey is the most commonly used method of primary data collection in marketing research. This was mainly to elicit information that was left out in the questionnaire opinions and suggestions were asked for the betterment of the project. Primary data were collected through .Observation .It can be collected by different methods viz. This is widely used because it’s extreme flexibility. This facilitates the respondents to fill up the questionnaire is an easy and fast manner.Expert opinion Questionnaire The primary data was collected mainly by using a questionnaire. multiple choice questions and questions for recommendations and suggestions.Survey method . direct personal investigation. Survey research is a systematic gathering of data from respondents through questionnaire. indirect oral investigation etc. .Questionnaire .Personal interview . structured questionnaire consisting of a list of questions pertaining to the dichotomous questions. In study. The questions are divided in two following sections: Personal details Inquiry details Personal Interview The personal interview was taken from half of the respondents. magazines and World Wide Web. Thus secondary data are refined data from primary data. convenience sampling method is used for collecting the primary data.Annual reports . The advantages of this method are: It requires relatively shorter period of time to complete Researcher can information procure many different types of The amount of information produced on each aspect is larger.Websites . There is a possibility of more accurate reply SECONDARY DATA The collected by the investigator from the data already collected by others for some other purpose are called secondary data.Journals and magazines SAMPLING PLAN Sample Frame In a present study. 60 customers are selected as sample. In the survey. It is also called second hand data because data is collected from previous reports about the organization from the internal books. Secondary data are collected through . Tools for collection of data .Survey technique used in the study is personal interview. INTERPRETATION collect data AND PRESENTATION 1.A questionnaire is developed respondent under the sample.1 from the . to DATA ANALYSIS. How often do you take a gold loan in a year? Table 5. 67% of the customers choose this facility 6-10 times a year. The response of the customers suggest that 36. rate the following factors of Muthoot Finance Limited and Manappuram General Finance and Leasing Limited: . Rests 26.33 6-10 times 0 8 0 More than 10 times 0 0 0 INTERPRETATION The above chart was designed to understand number of times a customer applies for a gold loan in Muthoot and Manappuram.67 2-5 times 19 9 63. Customers who choose their gold loan facility once stands at 43.33% applies for a gold loan 2-5 times. As per the scale below.33% and those who choose the same 2-5 times a year stands at 30%. In case of Manappuram.Opinion Muthoot Respons e Manappu ram Response % of Muthoot % of Manappuram Once 11 13 36. Both Muthoot and Manappuram don’t have any customers who apply for gold loan more than 10 times.67% of Muthoot’s customers applies for a gold loan just once while the rest of the 63. Bad I.2 INTERPRETATION .5. Rate of interest Table 5.Good 2.Excellent 4.Very Good 3.33 20 Good 9 11 30 36.67 23.33 Bad 0 0 0 0 Very good fig.2 Opinion Muthoot Response Excellent Manappuram Response % of Manappura m % of Muthoot 6 6 20 20 10 6 33. 5.Fair 1.67 Fair 5 7 16. 3 . 5.33% and 20% of customers of Muthoot and Manappuram think the rate of interest is very good.67% (Muthoot) and 23. Location of the institute Table 5.The above chart was designed to understand the satisfaction of the customers with the interest rate on gold loan offered by Muthoot and Manappuram. While 33. 16. Here. None of the respondents thought that interest rate offered by both companies was bad.3 Muthoot Response Opinion Excellent Manappuram Response % of Manappu m % of Muthoot 8 5 26.66 26 Fair 0 5 0 16 Bad 0 1 0 3 Very good fig. II. 20% of the customers of both Muthoot and Manappuram believe that the interest offered by both companies is excellent. 30% (Muthoot) and 36.67% (Manappuram) of the respondents believe the interest rate is good.67 36 Good 5 8 16.33% (Manappuram) of the respondents believe the interest rate is fair.67 16 17 11 56. III.INTERPRETATION The above chart shows the customer response on the location of both the institutes.67% and 3.66% (Muthoot) and 26. This is easily recognisable as 26. Here. On the other hand.4 Staff behavior .67% of Muthoot’s respondents believe that location of the institutes is excellent while 56. 16.67% (Manappuram).67% of Manappuram’s respondents considered the location factor excellent and very good respectively.67% of them believe it is very good.33% of Manappuram’s clients opted for fair and bad respectively. The share of customers who choose ‘Good’ as their choice to this question stands as 16. Table 5. None of Muthoot’s customers selected fair and bad as their option while 16. Muthoot has a superior lead over Manappuram.66% and 36. 5. The share of customers who choose very good as the option stands at 30% for Muthoot and 40% for Manappuram. About 23.33 Very good 9 12 30 10 7 33.4 INTERPRETATION Staff behavior is interpreted in the above chart.33 23 Fair 4 4 13. 23 .34 13 Bad 0 0 0 Good fig.33% of both the organizations thought that the behavior of staff is excellent.Muthoot Response Opinion Manappuram Response % of Manappu m % of Muthoot Excellent 7 7 23. 34% of Muthoot’s respondents believe that staff behavior was good and fair respectively.33% and 13.67 Fair 4 3 13.5 .33% and 13. None of the respondents to the questionnaire believe that the behavior of staff in both these institutes was bad.33 Bad 0 0 0 Very good Good fig.34% in case of Manappuram. This preference was selected by 23. 5. Gold loan application procedure Table 5.33.5 Muthoot Response Opinion Excellent Manappuram Response % of Manap m % of Muthoot 12 6 30 3 7 10 11 14 36. IV. INTERPRETATION The above chart was designed to interpret the response of customers to Muthoot’s and Manappuram’s gold loan procedure.33% of Manappuram’s respondents believed that this factor was excellent and very good respectively.67% and 13. As for option ‘Good’ and ‘Fair’ the share stands at 36. .33% (Muthoot) and 46. No one selected ‘Bad’ in response to this question for either company. It was interpreted that 30% and 10% of Muthoot’s respondents as well as 20% and 23.67% and 10% (Manappuram). 5.6 INTERPRETATION .66 Fair 3 7 10 Bad 0 1 0 Very good fig.67 Good 5 12 16. Infrastructure facilities Table 5.V.67 14 6 46.6 Muthoot Response Opinion Excellent Manappuram Response % of Manap m % of Muthoot 8 4 26. Time taken for the whole gold loan procedure? Table 5.33% of Manappuram’s respondents believed that the infrastructure facility provided by the organization was bad.The above chart represents the rating given by the customers on the infrastructure facilities of both institutes. The option ‘Fair’ was selected by 10% (Muthoot) and 23. The option ‘Good’ was selected by 16. 2.33 % of Manapp m .67% was the share of Muthoot customers who thought that these facilities were excellent and almost half of the total respondents (47.7 Opinion Less than 5 Muthoot Response Manappuram Response 4 % of Muthoot 0 13.66% (Muthoot) and 40% (Manappuram) respectively.34% (Manappuram) respectively. 26. It was suprising to see 3. those who believed this facility is excellent stands at 20% and 40% of the total thought it is very good. And as for Manappuram.67%) believed it is very good. 60 minutes 2 5 6. time taken for clearing a gold loan. 5.10 minutes stands at 30% (Muthoot) and 20% (Manappuram).e.8 INTERPRETATION The above pie diagrams represents one of the main factors which decides the fate of any gold loan financing company i. . Those respondents who thinks the whole gold loan procedure takes 5.30 minutes 15 19 50 31.67 Others (Please mention) 0 0 0 fig.33% (Manappuram) respectively.minutes 5.10 minutes 9 6 30 11. The option ’11-30 minutes’ was selected by 50% (Muthoot) and 63. The option ’31-60 minutes’ was selected by 6.67 0 80.67 60.9 . 5. 3.33 6.8 Muthoot Response Opinion Manappuram Response % of Muthoot % of Manappura m 100% 2 0 6.67% (Muthoot) and 16.99% 12 14 40 46.67% (Manappuram) respectively.66 40. How satisfied are you with the security standards of Muthoot Finance Limited Manappuram General Finance and Leasing Limited? Table 5.67 fig.79% 9 8 30 26.59% 6 6 20 20 >40% 1 2 3. 4. It is interpreted that 6. Those respondents who trusted Muthoot’s and Manappuram’s security standards 60% . Both the institutes had 20% of the total respondents who believed that the security standard was 40% .67% of Muthoot’s respondents are 100% satisfied with their security standards while none of the Manappuram’s respondents are fully satisfied with the company’s security standards. How did you come to know about Muthoot. Both the institutes had 3.66% respectively. Manappuram and its facilities? Table 5.INTERPRETATION The above bar diagram is also another important determinant of a gold financing company’s success.33% (Muthoot) and 6. It is also interpreted that 40% (Muthoot) and 46.79% stands at 30% and 26.99% satisfied with the security facilities.9 Opinion Muthoot Response Manappuram Response % of Muthoot % of Manapp .59% trustable.67% (Manappuram) of the total respondents who believed that the security standard was less than 40% trustable.67% (Manappuram) of the respondents are 80% . 67 11 12 36. it is interpreted that newspaper as a medium penetrates about 30% for Muthoot and 20% for Manappuram.66 1 Friends and relatives 3 4 10 1 Others (Please specify) 0 0 0 T. .67 Notice 2 5 6. 5.V Advertisements fig.11 INTERPRETATION Here.m Newspapers 9 6 30 Journals and Magazines 5 3 16. Muthoot (6. the recent fluctuations of gold rates.67%) and Manappuram (10%).33 14 14 46. Taking into consideration. Do you think Muthoot Finance and Manappuram Finance are successful in providing effective gold loans? Table 5.67% for Muthoot and 40% for Manappuram Other sources like journals and magazines.Muthoot (10%) and Manappuram (13.The main medium of advertising for both the companies is T.67 Neutral 6 9 20 Disagree 3 4 10 Strongly disagree 0 0 0 Agree 46 13 .66%) and Manappuram (16.10 Opinion Strongly agree Muthoot Response Manappuram Response % of Muthoot % of Manappu m 7 3 23.V.67%). notice. 5.Muthoot (16.33%) also play vital roles in penetrating the market share for both the companies. advertisements which stand at 36. friends and relatives. Those respondents who strongly agree to this fact constitute 23.33% and 10% of the respondents of Muthoot and Manappuram respectively. 20% (Muthoot) and 30% (Manappuram) opted for neutral while rest 10% (Muthoot) and 13. .INTERPRETATION It is interpreted from the above 2 pie diagrams that a majority of the respondents (46.33% (Manappuram) disagreed to this fact.67%) both of Muthoot Finance as well as Manappuram Finance agrees to the fact that both companies were able to provide effective gold loans even after the recent fluctuations in gold rates. 33 Disagree 0 0 0 Strongly disagree 0 0 0 .6. Does Muthoot Finance and Manappuram Finance assist by providing long payback period? Table 5.11 Opinion Muthoot Response Manappuram Response % of Manappu m % of Muthoot Strongly agree 12 5 40 16 Agree 14 16 46. In case of default.67 53 Neutral 4 9 13. it is interpreted a majority of the respondents agrees that both financial institutions assist by providing long payback period. .fig. Followed by neutral with 13.14 INTERPRETATION Here.33% (Muthoot) and 30% (Manappuram) 1 FINDINDS The management and employees of both the companies maintains a good relationship. This was closely followed by the opinion that the respondents strongly agrees that both financial institutions assist by providing long payback period. 5. . NBFCs score over banks on two fronts despite charging higher interest — quick approval and disbursal of loans.33%) have monthly income range between Rs.000. Media advertisement has an important role in spreading popularity of both companies among public i. Manappuram should work on improving their gold loan processing time. Majority of the customers were satisfied with the services. SUGGESTIONS FOR MANAPPURAM FINANCE They should take up more promotional measures to increase the market share of their products. Majority of the respondents’ have the opinion that the behaviors of both company’s staff are cordial and friendly. hence there was no need of complaints to be lodged.e. Most of the respondents (58. 36. and the only document required is an identification proof of the person pledging the gold. They should concentrate on expansion plans and open new branches in unexplored areas.5000 – Rs 10. and less documentation. An NBFC at the most takes 30 minutes to give the loan after verifying the gold.67% (Muthoot) and 40% (Manappuram) respectively. It helped me to find out the different factors responsible for the success of these two companies. Infrastructure facilities should also be improved and should be of international standards to compete with Muthoot Finance. CONCLUSION The comparative study between gold loan offered Manappuram Finance was aimed at finding out the reasons which makes these two companies stand out among other gold loan financing companies and also to identify the best gold loan provider among these two financing giants. Security standards and Interest rates are the other areas where Manappuram Finance should work on. The major finding that can be concluded from this study is that Manappuram General Finance and Leasing Limited still lacks in . A sample survey was selected. LIMITATIONS OF THE STUDY Time allowed for the study was not sufficient. The data provided by the respondent may not be correct or accurate.many areas although it has grown rapidly in the past few months and given Muthoot a run for its money. This experience has helped me gain knowledge about the business of gold loan financing in India. However proper . Some of the samples selected for the study did not respond properly to the questionnaire. this means that it may be difficult to understand answers and thus to act on them. Also. People are not always willing to fill questionnaires in so they may just throw them always. and this also does not allow for much detail. Questionnaires are impersonal. Prentice.care had taken to make the analysis and interpretations more meaningful. rendering the answer useless.Hall of India. there is a chance that the question may be misinterpreted. New Delhi. August 1994 . BIBLIOGRAPHY BOOKS Philip Kotler. “Marketing Management” ”. Open questions can take a lot of time to collect and analyse. Questionnaires also invite people to lie and answer the questions very vaguely which they would not do in an interview. 8th Edition. Sometimes questions used are too standardised (closed) so some peoples preferred answers may not be included. manappuram.htm http://www.asp?TID=2635&PN=1 .JOURNALS 17th Annual Report of Manappuram General Finance and Leasing Limited Draft Red Herring Prospectus of Muthoot Finance Limited issued on 30 th September 2010 WEBSITES http://www.in/2010/11/27/stories/201011275142060 0.com/ http://www.thehindubusinessline.com/forum/forum_posts.theequitydesk.muthootfinance.com/ http://www. 60 minutes e) Other (Please mention) ________________ 4. Location of the institute : III.GOLD LOAN MARKET SURVEY QUESTIONNAIRE FOR MANAPPURAM FINANCE 1.Excellent 4.10 minutes c) 11. How satisfied are you with the security standards of Manappuram General Finance and Leasing Limited? a) 100% b) 80-99% c) 60-79% d) 40-59% .10 times d) More than 10 times 2.Bad I. rate the following factors of Manappuram General Finance and Leasing Limited: 5. How often do you take a gold loan in a year? a) Once b) 2.Very Good 3. Staff behavior IV. Rate of interest : II. As per the scale below. Time taken for the whole gold loan procedure? a) Less than 5 minutes b) 5. Infrastructure facilities : : 3.30 minutes d) 31.5 times c) 6.Good 2. Gold loan application procedure: V.Fair 1. Do you think Manappuram Finance was successful in providing effective gold loans? 7. Advertisements d) Notice e)Friends and relatives f) Others (Please specify) 6. Any suggestions to improve the services offered by Manappuram General Finance and Leasing Limited? ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ . In case of default.V. Does Manappuram Finance assists by providing long payback period? 8.e) >40% 5. How did you come to know about Manappuram General Finance and Leasing Limited and its facilities? a)Newspapers b) Journals and Magazines c)T. Why do you prefer Manappuram General Finance and Leasing Limited over other Gold loan institutes and Government organisations? ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ Any complaints about Manappuram General Finance and Leasing Limited? ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ 9. the recent fluctuations of gold rates. Taking into consideration.