A PROJECT REPORT ON MANAPPURAM GOLD LOAN IN

CHIRALA
A Mini project report submitted to Y.A Govemment college for women in Chirala
in partial fulfillment of the requirement for the award of VI Semester degree
BACHELOR OF COMMERCE
IN THE DEPARTMENT OF COMMERCE

Submitted By
'
N. Bhargavi[REG NO. Y192016023]

P.Rebka [REG NO,Y192016024]

R.Leela Vathi [REG NO. Y192016025]

SK.Gousia [REG NO. Y192016026]

T.Mayuri [REG NO. Y 192016027]

2019-2022 Batch B. Com (General)

FA0r» 1-02-2022 T 31-03-20)2-
Under the supervision of

Smt. M. VELANGANNI. M.COM; SLET

Lecturer Department of Commerce

DEPARTMENT OF COMMERCE

Y.A GOVERNMENT COLLEGE FOR WOMEN IN CHIRALA -523155

ACHARYA NAGARJUNA UNIVERSITY

MARCH- 2022
 •

DECLARATION
We declare that this project work entitles "A PROJECT REPORT ON
MANAPPURAM GOLD LOAN' is a bona fide project work in partial fulfillment
of requirement for the award under the guidance ofSmtM.VELANGNNI, Lecturer
in commerce, YA Government college for women in Chirala. We also declare that
this group project report has not previously formed the basis for the award of any
degree, diploma, associate ship, fellowship, or other similar type of recognition.

Signature of the team member

N. BHARGAVI [REG NO,Y192016023]

P. REBKA [REG NO.Y192016024]

R. LEELA VATHI [REG NO. Y192016025] f. )alavolhi
SK. GOUSIA [REG NO. Y192016026] 9 Gou%19
T. MA YURI (REG NO.Yl92016027)

- Place: Chirala

Date: 2O -0%- 0tR

 r
/r

-
r

-
-
r

-
r YA GOVERNMENT COLLEGE FOR WOMEN CERTIFICATE

r This is to certify that the project report entitle "A PROJECT ON

r
MANAPPURAM GOLD LOAN "that is being submitted ByN. Bhargavi [REG
r
NO.Y192016023],P. Rebka [REG NO. Y192016024],R .Leela Vathi [REG
r
NO. Y192016025],SK. Gousia[REG NO. Y192016026]T. Mayurt [REG
r
NO.Y192016027] impartial fulfillment of requirement for the award of VI
r
semester Degree of Bachelor of Commerce (B.COM), Y.AGC (W) ,Chirala
r
affiliated to Acharya Nagarjuna University is a record of bona fide work carried
r
out by them under my guidance and supervision. The result embodied in the mini
r
group project has not been submitted to any other University.
r

r
Y.�ni�asa �c:::hil.

r Srl. Sri. M. VELANGN';1i,�OM; SLET

r Lecturer& Head Prejeet Guide

-
a
Department of Commerce Lecture in Commerce

YAGDC (W) CHIRALA YAGDC[W] CHIRALA

r

s%.lkere#asear
Place: CHIRALA

Date:

& principal
o
YA. Got. Degree College tor Women
CHIRALA, Praksam Dist., (A.R.)
 ACKNOWLEDGEMENT

We would like to take the opportunity to taken and express our deep sense Of
gratitude to our mentor SmtM,VELANGNNI, Lecture in Commerce Y.A
Government College for Women in Chirala, we are greatly indebted to her for
providing their valuable guidance at all stages of the study, her advice constructive
suggestion, positive and supportive attitude and continuous encouragement,
without which it would have not been possible to complete the project.

We hope that we can build upon the experience and knowledge that we have
gained and make a valuable contribution towards this college in coming future. We
express my sincere thanks to Sri. Y, SRINIVASARAO., Head, Department of
Commerce and all the faculty members of Department of Commerce,
YAGovemment College for women in Chirala for their cooperation and help in
this regard.

We express my sincere gratitude to Dr. Ch. Ramanamma, principal,

Y.AGovernment College for women in Chiralafor providing various facilities.

We are thankful to all the respondents in Chirala Manipuram Branch for their
kindcooperation.
We would like to express our gratitude to our families and friends for their timely
support and cooperation in completing this report successfully. Above all, we
express our external gratitude to God Almighty under whose divine guidance we
have been able to complete this work successfully.

Place: Chirala

Date: 90-0%- 90t

 INDEX

SL.N CHAPTERS PARTICULARS Pg.No

1. CHAPTER-1 Introduction 1-6
2. CHAPTER-2 Research
Methodology 7-11

3. CHAPTER-3 Manappuram 12-19

profile
4. CHAPTER-4 Data Analysis 20-29
. . .
5. Finding, 30-33
Suggestion
Conclusion
6. Bibliography 34-36
Annexure
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CHAPTER-I
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Introduction
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 Overview of the Company

Manappuram Finance Ltd. is one of India's leading gold loans NBFCs. Promoted
by Shri. V.P. Nandakumar, the current MD & CEO, its origins go back to 1949
when it was founded in the coastal village of Valspar (Thrissur District) by his late
father Mr. V.C. Padmanabhan. The firm was involved in pawn broking and money
lending carried out on a modest scale. Shri Nandakumar took over the reins
inexpired.

Since then, it has been a story of unparalleled growth with many milestones
crossed. Incorporated in 1992, Manappuram Finance Ltd. has grown at a rapid
- pace. Today, it has 4637 (Includes branches of subsidiary companies) branches
across 28 states/UT's with assets under management (AUM) of Rs. 272.24 work
- for then 30,000.

MANY ACHIEVEMENTS
Soon after it commenced its operations, the company gathered several "firsts" to its
credit. The first non-banking financial company (NBFC) in Kerala to receive a
Certificate of Registration issued by the RBI, it was also among the earliest to go
for an IPO in 1995. In 2007, it became the first Kerala based NBFC to receive
investment from foreign institutional investors (FIIs) when the celebrated PE fund,
Sequoia Capital, invested Rs.700 million along with Hudson Equity Holdings.
Sizable foreign investment was received during two OIPS in 2010 when a total of
Rs.12,450 million was raised. Manappuram Finance Ltd. was the first NBFC in
Kerala to obtain the highest short term credit rating of AI+ from ICRA. In 2010, it
became the first Kerala-basedNBFC to offer ESOPs (Employee Stock Option Plan)
to its middle and senior management functionaries.

A RECORD OF INNOVATIONS

As a pioneer and trailblazer, Manappuram Finance Ltd. has always been an

innovator par excellence that enabled it to lead the way and stay ahead in the game.
Technology innovations:
In the matter of technology, Manappuram was one of the earliest to adopt the
"core banking" platform. This was no mean achievement considering that unlike
the banking sector there were no ready-made software solutions for gold loans. It
came about only because the company invested in developing its own proprietary
solutions, and today its technology platform is one of its core strengths. The
investment in technology has paid off in many ways, for instance, in streamlining
procedures to reduce turnaround times in gold loan disbursal and in implementing
below.
Critical to the success of a large-scale gold loan business is.the ability to weed out
spurious and substandard gold at the pledge stage itself. The purity testing that is
carried out essentially verifies the purity of the ornament at a particular point or
two. It is not designed for I00 percent certainty. Moreover, the gold loans business
emphasizes speed and hassle-free experience. Therefore, simplicity of procedure is
also a must, and a balance must be struck. At Manappuram, advanced risk
management practices were put in place that drew upon the promoter's intimate
understanding of the business. It was implemented through the IT platform which
generates alerts to management upon any suspicious or abnormal transactions at
the branches. For example, the gold loan business focuses on household used
jeweler to which borrowers may be expected to have an emotional connect. When
a branch accepts multiple numbers of the same ornament for pledge, it is more
likely to be a local jeweler or pawnbroker and the system automatically flags the
auditors.
In keeping with its record of technology led innovations, the company launched its
latest product "Online Gold Loans" in 2015. A customer who has completed the
initial formalities can now avail a gold loan 24X7, from anywhere in the world, in
fact, even as he sits at home. The loan proceeds are instantaneously transferred to
his bank account. The concept is now proposed to be extended further with launch
of a co-branded debit card that would allow even customers without access to bank
anywhere.
Product innovations:
Manappuram has Jed the way in the matter of product innovations too. Gold loans
were for long sold as a "one-size-fits-all" product. The company was a pioneer in
4
introducing variety to it, for instance, by offering progressively higher loan
amounts at higher price points. It was also the first to come up with "one-day
interest" where borrowers have the option to settle a gold loan at their earliest
convenience, even within a day, at a time when the norm was to recover a month.
The most recent innovation is the launch of short tenured gold loans. Historically,
all gold loans were sanctioned for one year and bullet repayments of both interest
and principal was the norm. After the fierce correction in gold prices in 2013, gold
loan companies were faced with higher defaults and profitability took a hit.
Manappuram Finance Ltd. launched short term gold loans of three- and six-month
tenure and today, the bulk of its gold loan portfolio has been shifted to the short-
term buckets.

Innovative approach to raising finance:

For a non-banking financial company (NBFC), raising funds was a big challenge in
the nineties. In the aftermath of the CRB scam of 1997, raising deposits from the
public was difficult and banks were not comfortable with lending to NBFCs in
general. Moreover, Manappuram's foray into gold loans was untested as a business
model. Growth was slow in the initial days. The picture was to change only after
In the first breakthrough, Manappuram became the first gold loan company to raise
finance through the securitization and assignment route in a tie up with ICICI
Bank. The arrangement with ICICI Bank continued to work well for a few years
and the company was put on the growth path. Buoyed by the success, the company
planned a big expansion of the branch network. However, around 2006, ICICI
Bank faced some regulatory hurdles regarding securitization, and they could no
longer fund the company. With ICICI Bank pulling out, the expansion plans pardy.
At this point, the company chanced to get its second break. Teaser, the sovereign
investment fund of Singapore, was looking to expand its footprint in the Indian
financial market. Mr. Nandakumar happened to be in Singapore to take part in a
conference of NBFCs.
Having heard Mr. Nandakumar speak about the gold loan business, Tease
expressed interested in financing Manappuram through their India arm Fullerton.
Teaser's debt participation provided the visibility and paved In December 2007,
Manappuram became the first NBFC in Kerala to attract foreign institutional
investment when the celebrated PE fund Sequoia Capital invested Rs. 700 million
together with Hudson Equity Holdings. Since then, the company has regularly
received foreign investment. The second round of private equity funding in
November 2008 was led by Ashore Alchemy which, together with Sequoia and
Hudson, put in another Rs.I,080 million. Sizable foreign investment was received
during the two QIPS in 2010 when a total of Rs.12,450 million was raised. Once
private equity came in, the company was able to shift gears and grow much faster
 than before because now even the PSU banks were willing to lend to it. From this
back.
Conventionally, companies have sought funds from foreign investors after they
have tapped the domestic banks and other financial institutions. In the case of
Manappuram, the order was upended. Because the domestic banks were
uncomfortable lending to NBFCs, especially one with an untested business model
focused on gold loans, the company went out of India and roped in the foreign
players first. Once they were persuaded, the domestic players became
morecompany.
Innovative Marketing Campaign with multiple celebrity Brand
Ambassadors:
Despite the vast amount of gold in private hands in India, the gold loan business is
yet to grow to its true potential even today, There was a continuing stigma attached
' '
to pledging gold. Rather than use their gold to raise money, many preferred to go
rates.
- Manappuram has been proactive in tackling this sensitive issue head-on. It
. .
followed a strategy of a big-budget advertising campaign that revolved around
celebrity brand ambassadors with strong regional appeal, who talked about gold
loans to the masses in their own language. When the fashion was to use one
celebrity brand ambassador for a nationwide campaign, Manappuram's campaign
beginning in 2010 had a galaxy of super stars like Ashy Kumar, Mohall,
MethuenChakra arty, Vicar, Venkatesh etc. and they were used to target different
geographies; Mohandas for Kerala, Kasha Kumar for the Hindi speaking belt, Viral
for Tamil Nadu etc. The campaign was successful in growing the gold loan
category as a whole and benefits were reaped by players across the sector.
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CHAPTER-II
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- Research
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Methodology
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 SIGNIFICANCE OF THE STUDY

Manappuram Finance Limited (Formerly known as Manappuram General Finance

and Leasing Ltd) is one of the largest NBFCs in India predominantly dealing in
gold loans. It is the second largest listed player in the gold loan segment with a
collimated AUM of Rs 15765 core (FY2018) of which gold loans account for Rs
11735 core. It has a strong pan-India presence through its 4199 strong branch
networks spread across 24 states and 4 union territories serving a customer base of
more than 3.8 million. In addition to gold finance the company is focusing on
affordable housing finance vehicle and equipment finance which includes
commercial vehicle loans two-wheeler loans tractor & car loans microfinance SME
finance project and industrial finance corporate finance and insurance broking. The
company operates its housing finance business under its subsidiary Manappuram
Home Finance Limited (MAHOFIN). Manappuram General Finance and Leasing
f
Ltd was incorporated on July 15, 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 patter of Economic Growth through
small and medium enterprises
r
During the year 1994.-95 the company opened new branches in Calicut Gruver
r
Emakulum and Tripura. In the year 2002 they started Forex business as a part of its
r
diversification. During the year 2002-03 the company opened 8 new branches in
e
r
various places. During the year 2003-04 the company entered into various

r
diversified activities as acting as corporate agents for life and general insurance
vehicle finance acting as full-fledged money changers online share trading instant
r money transfer etc. through and with their 100% subsidiary. Also, they
commenced instant money transfer facility in collaboration with Xpress Money
r Constar Instant Cash ZolaEremite and Money Gram. During the year 2004-05 the

r
company acquired 100% equity shares in Manappuram Insurance Agents and
Brokers Ltd. Also, they widened their activities further by opening I4 new
branches in various places. During the year 2006-07 the company was granted the
prestigious Authorized Dealer Category II license by the Reserve Bank which will
enable the company to undertake a wide range of non-trade remittances apart from
currency exchange transactions. In November 2006 the company's 100%
subsidiary Manappuram Insurance Brokers Put Ltd received the insurance Broking
License from the Insurance Regulatory and Development Authority (IRDA)
During the year 2008-09 the company strengthened their IT infrastructure and
systems to support their operations. The connectivity to branches was also
upgraded to provide improved information flow to branches and to further support
the collection system. year.

CSR REDEFINED •
Besides focus on the business, the cause of the wider community is central to the vision of
the company. The Manappuram Foundation was established in October.2009 to drive the -
company's initiatives in Corporate Social Responsibility (CSR). The major project of the
Foundation is an original scheme, Janaraksha Manappuram Free Health Insurance
Scheme" extending health insurance to 20,000 Below Poverty Line (BPL) families in the
seven Panchayats located around the Valapad Head Office of the Company. They are now
eligible for free medical care up to Rs.60,000 per year along with cashless treatment at
District.

The Manappuram Foundation has set up the Manappuram Academy tor Professional
Education to impart free coaching for Professional Courses like CA/CS/IOWA, to bright
students from low income households. The company was honoured with a Special
Commendation' at the Golden Peacock Awards for Corporate Social Responsibility for the
year 2014.
-
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-
- OBJECTIVES OF THE STUDY

1. To assess the various Gold loans offered by the Institution.

- 2. To understand how far these loans are beneficial to the customers.
3. To analyse the availability and effectiveness of Manipuram Gold loans
-
- METHODOLOGY OF THE STUDY
The present study was conducted based on both Primary data and
Secondary data. The Primary data was collected through offline survey
method. A detailed Questionnaire was prepared to collect data from the
selected sample. The required secondary data have been collected from
sources like magazines, journals, economic surveys, and from internet. For
the study, bar diagram and pie diagram etc.are used.
SAMPLING METHODS
In this procedure, units to be included in the sample are selected at the
convenience of the investigator rather than by any pre-specified or known
probabilities of being selected.
SAMPLINGUNITS
This study covers 100 customers of Manipuram Gold Institution.

DATA COLLECTION MERHODS

We use both Primary and Secondary data for data collection. The Primary
method of data collection used in this study is Interview method with a
Structured Interview. Secondary data used in the project are magazine
articles, journals, economic surveys, websites etc.
TOOLS AND TECHNIQUES
Simple statistical tools used for analyzing the data include percentages,
Tables, pie diagrams and Bar diagrams etc.
LIMITATIONS OF THE STUDY
There might be errors due to the bias from the respondent
Itis arepresentative study as we focused on customers belonging to
rural areas.
Due to time constraints the survey could be conducted on limited
number of participants and thus, deep, and detailed study in certain
cases was obstructed.

'
-
CHAPTER-III
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Manappuram
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Profile
•
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Manappuram Finance Ltd, or MAFIL, is an Indian non-banking financial
company (NBFC) based in ... gold loan; forex & money transfer; SMS finance;
commercial vehicle loan Founder ofManappuram gold loan:V. C. Padmanabhan

Manappuram Finance Limited / Founder

6wJ
V.P. Nandakumar is the Managing Director & CEO of Manappuram
Finance Ltd., a leading gold loan company that is ranked among India's
top 20 non-banking finance companies. Manappuram's origins go back
to 1949 when it was founded by the late V.C. Padmanabhan, father of
Mr. Nandakumar. +

. Overview of the Company

Manappuram Finance Ltd. is one of India's leading gold Joan NBFCs. Promoted
by Shri. V.P, Nandakumar, the current MD & CEO, its origins go back to 1949
when it was founded in the coastal village of Valpak. (Thrissur District) by his late
father Mr. V.C. Padmanabhan. The firm was involved in pawn broking and money
lending carried out on a modest scale. Shri Nandakumar took over the reins in
father.
Since then, it has been a story of unparalleled growth with many milestones
crossed. Incorporated in 1992, Manappuram Finance Ltd. has grown at a rapid
pace. Today, it has 4637 (Includes branches of subsidiary companies)
branchesacross 28 states/UTs with assets under management (AUM) of Rs. 272.24.

MANY ACHIEVEMENTS

Soon after it commenced its operations, the company gathered several "firsts" to its
credit. The first non-banking financial company (NBFC) in Kerala to receive a
Certificate of Registration issued by the RBI, it was also among the earliest to go
for an IPO in 1995. In 2007, it became the first Kerala based NBFC to receive
investment from foreign institutional investors (FIIs) when the celebrated PE fund,
Sequoia Capital, invested Rs.700 million along with Hudson Equity Holdings.
Sizable foreign investment was received during two OIPS in 2010 when a total of
Rs.12,450 million was raised. Manappuram Finance Ltd. was the first NBFC in
Kerala to obtain the highest short term credit rating of AI+ from ICRA. In 2010, it
became the first Kerala-based NBFC to offer ESOPs (Employee Stock Option '
Plan) to its middle and senior management functionaries

A RECORD OF INNOVATIONS

As a pioneer and trailblazer, Manappuram Finance Ltd. has always been an

innovator par excellence that enabled it to lead the way and stay ahead game.
Technology innovations:
In the matter of technology, Manappuram was one of the earliest to adopt the "core
banking" platform. This was no mean achievement considering that unlike the
banking sector there were no ready-made software solutions for gold loans. It came
about only because the company invested in developing its own proprietary
solutions, and today its technology platform is one of its core strengths. The
 investment in technology has paid off in many ways, for instance, in streamlining
procedures to reduce turnaround times in gold loan disbursal and in implementing
below.
Critical to the success of a large-scale gold loan business is the ability to weed out
spurious and substandard gold at the pledge stage itself. The purity testing that is
carried out essentially verifies the purity of the ornament at a particular point or
two. It is not designed for 100 percent certainty. Moreover, the gold loans business
emphasizes speed and hassle-free experience. Therefore, simplicity of procedure is
also a must, and a balance must be struck. At Manappuram, advanced risk
management practices were put in place that drew upon the promoter's intimate
understanding of the business. It was implemented through the IT platform which
generates alerts to management upon any suspicious or abnormal transactions at
the branches. For example, the gold loan business focuses on household used

r jewelry to which borrowers may be expected to have an emotional connect. When

a branch accepts multiple numbers of the same ornament for pledge, it is more
likely to be a local jeweler or pawnbroker and the system automatically flags the
auditors.

In keeping with its record of technology led innovations, the company launched its
latest product "Online Gold Loans" in 2015. A customer who has completed the
initial formalities can now avail a gold loan 24X7, from anywhere in the world, in
fact, even as he sits at home. The loan proceeds are instantaneously transferred to
his bank account. The concept is now proposed to be extended further with launch
r
of a co-branded debit card that would allow even customers without

anywhere.

r
Product innovations:
Manappuram has led the way in the matter of product innovations too. Gold loans
were for long sold as a "one-size-fits-all" product. The company was a pioneer in
introducing variety to it, for instance, by offering progressively higher loan
amounts at higher price points. It was also the first to come up with "one-day
interest" where borrowers have the option to settle a gold loan at their earliest
convenience, even within a day, at a time when the norm was to recover a month.
The most recent innovation is the launch of short tenured gold loans. Historically,
all gold loans were sanctioned for one year and bullet repayments of both interest
and principal was the norm. After the fierce correction in gold prices in 2013, gold
loan companies were faced with higher defaults and profitability took a hit.
Manappuram Finance Ltd. launched short term gold loans of three- and six-month
tenure and today, the bulk of its gold loan portfolio has been shifted to the short-
term buckets, This has minimised price risk which is otherwise a major concern
loans.

Innovative approach to raising finance:

For a non-banking financial company (NBFC), raising funds was a big challenge in
the nineties. In the aftermath of the CRB scam of 1997, raising deposits from the
public was difficult and banks were not comfortable with lending to NBFCs in
general. Moreover, Manappuram's foray into gold loans was untested as a business
model. Growth was slow in the initial days. The picture was to change only after
the company hit upon unconventional ways to raise funds. Gold loan has been the
savior for many at critical junctures. People can make use of the gold ornaments,
bars, or coins held at homes or bank lockers and get money without any hassles.
Manappuram has been serving customers pan India with gold acquired.

Gold loan is a secured loan wherein the borrower would be mortgaging gold
property, let it be jewelry, coin, or bar, at the NBFC or bank and receive cash in
lieu. The money approved would be corresponding to the gold pledged at the
On the other hand, the gold loan amount will not consider the value of the gold
asset at the time of purchase. Instead, the current gold rate would be the yardstick
sought.

The gold loan has several features that distinguish it from other loans. In fact, the
beneficial features offered by gold loans make it the most useful loan. Quick
Approval -- Instant loan approval is the main feature of a gold loan. Borrowers
don't have to wait expecting approval from the higher-ups in the bank or NBFC in
the case of a gold loan. It would be approved, and money handed over after
confirming the identification details of the individual, examining the application,
gold.
Easy or No Documentation -- You cannot say that there is no documentation for
gold loan at all. Individuals applying for a gold loan have to fill an application,
attach the ID and address proof, and submit. That's it. The lender would verify the
details and notify the borrower of the amount receivable for the particular quantity
of gold. Once the client agrees to the same, the money would be issued without any
further delays. Secured Loan - Imagine the complexities involved when you
approach a bank or NBFC for a personal loan or business loan. The main factor
that would decide the eligibility of an individual is a credit score or CIBIL score.
The lender would scrutinize the credit history to ascertain whether the individual is
trustworthy or not. Although the past conditions cannot determine one's present
status, the finance firms will consider credit score as the benchmark. A gold loan is
a secured loan, in which you would be pledging gold Hence, the lender need not
check the credit history or CIBIL score of the borrower. This feature of the gold
concern.

Gold Loan for Any Purpose -- Gold loan lenders will not ask the purpose of the
finance. Most of the other loans need the individual to furnish the requirements,
Moreover, those loans would be admissible for specific purposes only. A gold loan
can be obtained for buying vehicles, renovating home, children's schooling,
finance needs for marriage, and so on. Repayment Options -- A vital feature of a
gold loan is that the borrower can choose how to repay it. In the case of most of the
other loans, the lender would decide the repayment process and EMis. That is not
the case here. NBFCs like ours, Manappuram Finance, offer four types of
repayment options. The customer can choose .the methodology and simply go
ahead with it. This feature of gold loans helps individuals t oplan the family budget
accordingly.

INTRESTRETS

Individuals can opt from a plethora of loan options. Each of the loan processing
procedures would be different. In addition, some of the loans are approved only for
purposes.
Gold Loan -- Gold loan is a secured loan that could be sought irrespective of the
type of requirement. We offer gold loans at remarkably low-interest rates. Further,
the value for gold is significantly higher than banks and other NBFCs.
Personal Loan -- Personal loan is another loan option available. The
personal loan interest rates are high compared to a gold loan, The loan approval
procedure is also daunting. The finance firms would check the individual's credit
score and credit history before approving the loan. There are fewer chances if the
CIBIL score is medium to poor. The personal loan interest rate varies from 14% to.
 Property Loan -- Borrowers can mortgage property and obtain loans against them.
This is normally considered for obtaining a higher amount. The loan interest rate
There are loans for specific purposes like a car loan, home loan, and education. A
gold loan is a secured loan wherein the borrower keeps their gold, ranging from
18K to 24K, with a bank or a financial institution as security and avails capital
against it.

Rebate in Gold loan Scheme

For regular monthly interest paying customers, the initial interest rate
slab will be continued during the contracted loan tenure.

Effective interest rate of various gold loan schemes is applicable after

adjusting interest rebate on prompt monthly interest remittance by the
customers. The eligibility for interest rebate is based on the interest
remittance frequency and available till the end of contracted loan tenure
to all customers.
'
• OGL registered customers will get attractive interest rate rebate by
repledging via on\ine mode in PUSX schemes based on the repledge
frequency as follows:

, 4 repledges in every 15 days from the inventory created date - Effective

Interest Rate of 12% p.a.

• 3 repledges in every 15 days from the inventory created date - 4%

interest Rebate.

• 2 repledges in every 15 days from the inventory created date - 2%

interest Rebate.

• 2 repledge in every 30 days from the inventory created date (1st

repledge in 1-15 days & next repledge in 16-30 days) -1.5 % interest
Rebate

• repledge in every 30 days from the inventory created date - 1 % inter

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CHAPTER-IV
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- Data Analysis
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a

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 Did you take loan from bank?
a. Yes b. No

TABLE 4.1
Opinion Res ondent Percentages
Yes 30 30%
No 70 70%
Total 100 100%

CHART 4.1

80
70

60

50

40 Yes
30 a No

20

10

0
Respondent percentages

Interpretation:30% of the respondents stated that they have taken loans from
banks ,70% of the respondents stated that they have taken loans from others
financial institutions namely money lenders etc.
2.For what purpose did you took loan?

a. House construction b. Field larva's c. others

TABEL4.2
Respondent Percentage
House loan 50 50%
Filed larva's 10 10%
Others 40 40%
Total 100 100%

CHART 4.2

Respondent

House construction
Field larves
•
a Others

Interpretation:50% of the respondent have taken loan for house purpose, 40%
of the respondent have taken loan for educational purpose as these both arc useful.
 3. What kind loan did you take?

a. Gold loan b. House Loan c. Education loan

TABEL 4.3

Kind of loan Respondent Percentage

Gold loan 100 100%
House loan Nil Nil
Education loan Nil NIL
Total 100 100%

CART 4.3

Percentage

p •

=�
f

z - _,
0% '
100
.

Ni Nil
Percentage

Gold loan House loan Education loan

- Interpretation:100% of the respondent have taken gold loan to satisfy their

- needs.
 4. From which financial institution did you take loan?

a. SBI b. Manappuram c. Andhra bank

TABEL 4.4
Kind financial Respondent Percentage
institution
SBI 20 20%
Manappuram 80 80%
Andhra bank - -
Total 100 100%

CHART 4.4

80

: 1./_-_
, -_-_-_-_--I I
50
RESPONDENT
40
a PERCENTAGE

20
fl
10
0
MANAPP'URAM ANDHRA BANK

Interpretation;80% of the respondent have taken gold loan from

Manappuram because of new rate of interest is levied on goal loan
 5.How much loan did you take from Manappuram?

a. 50,000 b.1,00,000 c. 1,50,000

TABEL 4.5

Amount gold loan Respondent Percentage

50000 10 10%
1,00,000 10 10%
1,50,000 80 80%
Total 100 100%

CHART4.5

/
V
V
V
V ' Series3
V • '
a Series2
/
,, Series1

be
,
-
Amount gold
loan
50,000 1,00,000 -
1,50,000
�
,

lnterpretation:80% of the respondents have to take only 1,50,000 amount as

the interest rate charged on Gold loan is high which is not affordable by low
mcome group.
 6.Can you repay the gold loan through online?
a. Yes b. No

TABEL 4.6
Repav Respondent Percentage
Yes 40 40%
No 60 60%
Total 100 100%

CHART 4.6

70

60

50

40

30
no

20

10

0
respondent percentage

Interpretation:60%of the customer repaying their loan through offline

because of insecurity in paying through online
7. Will Manappuram offers any additional facilities provided to the
customer?

a. Yes b. No

TABEL 4.7

Additional Respondent Percentare

Yes 70 70%
No 30 30%
Total 100 100%

CHART4.7

80

70

60

50

40

30

20

10

0
Respondent Percentage
.·

Interpretation:70% of the respondents stated that Manappuram

institution is offering additional facilities as that of the other banks is the
reason many chose Manappuram institution.

8.In Manappuram can a customer take other loans without repaying the
past loan?

a Yes b. No

TABEL 4.8
Additional loan Respondent Percenta e
Yes Nil Nil
No 100 100%
Total 100 100%

CHART 4.8
•

-
- 100
90

- 80
70

~ 60
50 •
~ 40 •
- 30

- 20
10

~ 0
Additional loan Ye$ No
~
-
~
~
~
-
Interpretation: I 00% of the respondent stated that there is no facility to
take additional loan until and unless previous loan is repaid.

9. Are you satisfied with Manappuram gold loan?

a Yes b. No

TABEL 4.9
Opinion Respondent Percentage
Yes 100 100%
No Nil Nil
Total 100 100%

CHART
4.9

100
90
80
70
60 Yes
50
40
30
20
10
0
Respondent Percentage
•

Interpretation:100% of the respondent to are satisfied with

Manappuram because of loan rate of interest and other schemes
provided in the loan.

• •
 Findings,
-
Suggestions&
Conclusion
- -
 Findings
> 30% of the respondents stated that they have taken loans from banks 70% of
the respondents stated that they have taken loans from others financial
institutions namely money lenders etc.
> 50% of the respondent have taken loan for house purpose, 40% of the
respondent have taken loan for educational purpose as these both are useful.
> 100% of the respondents have taken gold loan to satisfy their needs.
> 80% of the respondent have taken gold loan from Manappuram because of
new rate of interest is levied on goal loan.
> 80% of the respondents have totake only I,50,000 amounts as than because
even to through large amount of loan is taken interest is nominal.
> 60%of the customer repaying their loan through offline because of insecurity
in paying through online
> 70% of the respondents stated that Manappuram institution is offering
additional facilities as that of the other banks that the reason Many chose
Manappuram institution.
> 100% of the respondent stated that there is no facility to take additional loan
until and unless previous loan is repaid.
> 100% of the respondent tore satisfied with Manappuram because ofloan rate
of interest and other schemes provided in the loan.
 Suggestion
• Many have chosen Manappuram gold loan but if the institution offers
educational loan to the students, then many students also will avail the
benefit.
• Manappuram don't offer any kind of loan schemes to the farmers. If scheme
are provided which are suitable to the farmers
then farmers also show interest towards Manappuram.
The loan limit given by Manappuram is very less to the no of customers to
the Manappuram is decreasing due to this reason if loan limit is increased
then it can attract more customers.
The online facility used by the customer is very less. If Manappuram gives
awareness to the customer how to work on online transactions, then it could
save customer's time.
• Special schemes offered by Manappuram are not known to the all the
customers, If at all these special schemes are explained in detail through
customer service, then all the customers could avail these benefits.
• •
+ Manappuram does not offer double loan credit facility to its customers i.e.,
repayment of old loan new loan will not the given to its customers. So, this
limitation should be removed to avail double loan.
 Conclusion
It is fair to conclude that availing loans against gold assets is a more profitable
option than availing personal loans. Firstly, lending firms are far more comfortable
in lending against security as compared to loan applications that come sans one.
Manappuram's is one such Institution which is providing gold loan to the
customers at ease

• •
 BIBLIOGRAPHY

https://www.linkedin.com/company/manappuram-finance-limited

https://en.wikipedia.org/wiki/Manappuram_General_Finance_and_L easing

https://www.manappuram.com/company/a-profile-of-the-md-ceo.html

https://www.manappuram.com/gold-loan-all-you-need-to-knowl
 ANNEXURE
QUESTIONNAIRE
Name of the respondent. .

Caste Religion Age .

Gender Village .
I. What educational qualification do you have?

a. Lower Primary b. Upper Primary c.SSC d. Inter e. graduate illiterates

2. How many members are in your family?

a. 2 b.3 c.4 d.5 e.6 and above

3.Family members involved in economic activity?

Activity .
a. Agriculture
b. Non- agriculture
c. Homemaker
d. Student
e. Nil
. .
4. What is the main source of income of your family?

Agriculture activities/non-agriculture activities

5. What activities do you carry out during spare time?

6. Did you took loan from bank?

a. Yes b.No

r
 7.For what purpose did you took loan?

a. House construction b. Field larva's c. others

8. What kind loan did you take?

a. Gold loan b. House Loan c. Education loan

9. From which financial institution did you take loan?

a. SBI b. Manappuram c. Andhra bank

10. How much loan did you take from Manappuram?

a. 50,000 b.1,00,000 c. 1,50,000

11. Can you repay the gold loan through online?

a. Yes b. No

12. Will Manappuram offers any additional facilities provided to the

customer?

a. Yes b. No
13. In Manappuram can a customer take other loans without repaying the
past loan?

,. . , I 4. How Manappuram is better than other financial institutions?

a Yes b. No

15. Are you satisfied with Manappuram gold loan?

a. Yes b. No