Manappuram gold loan:

Manappuram Gold Loan provides special offers on Gold Loan within a minute 1.Get Loan up to 1 2. Pledge your Gold Jewellery or Ornaments and avail cash 3. Disbursal will be dependent on the net weight and purity of the gold. Attractive features of Manappuram Gold Loan against Crore. it.

Avail loan in just 5 minutes. When disbursing Gold Loan, they only require your recent ID: Driving License, Ration Card, or Passport and no other documents are required. Get the Highest Amount of Rs. 2,000* per gram of Gold. No other hidden charges. A variety of schemes for your needs and to suit all income groups. No end user restriction Pay interest only for the exact period of loan, and to the exact number of days. Different schemes for different needs, to suit all income groups. No processing fee.

Eligibility for Manappuram Gold Loan

Salaried individuals between 21 to 60 years of age Self Employed individuals between 21 to 75 years of age Gold should have a carat range of 18 to 24 The tenure of the loans is 6 months or 12 months Rate of Interest ranges from 5%-10% EMI option you can take loan up to 36 months

Documents required for Manappuram Gold Loan

Election ID card with address proof PAN card with address proof Driving license Any Govt department ID card

The loan amount would depend upon the weight of the gold. Manappuram values loan against gold per gram at Rs1,400. However, they only consider 90% of the total weight of gold being submitted for a loan. This would mean your actual loan amount is Rs1,260. The total monthly interest you will pay under this scheme would be 1%.

However, if you want a higher amount of loan against your gold, there are a few more schemes (which charge you higher interest). For a monthly interest of 2.17%, Manappuram will provide you a loan of Rs1,450 per gram (after deducting a margin of 10% as explained above). The interest payout is similar to that of Muthoot Fincorp. You can pay your interest on a monthly, quarterly, half-yearly or yearly basis - which will obviously impact the actual interest that you are paying out.

Operational Schemes Get the Highest Amount of Rs. 2,000* per gram of Gold.

Scheme Name Tenure Rate of Interest

GL-C1 1 Year 25% p.a.

0 365 days

Scheme Name Tenure Rate of Interest 0 90 days 91 180 days 181 365 days

GL-A2 1 Year 19% p.a. 22% p.a. 25% p.a.

Scheme Name Tenure Rate of Interest 0 90 days 91 365 days

GL-B2 1 Year 22% p.a. 25% p.a.

Scheme Name Tenure Rate of Interest 0 30 days 31 60 days 61 365 days

GL-D2 1 Year 15% p.a. 20% p.a. 25% p.a.

Scheme Name Tenure 0 30 days 31 60 days 61 90 days 91 180 days 181 365 days

Rate of Interest

GL-D1 1 Year 12% p.a. 16% p.a. 20% p.a. 24% p.a. 25% p.a.

Note : Overdue interest is chargeable at 3% p.a. after 1 year Compounding in all Schemes at monthly rest

Recovery of Interest Rates

Mode of calculation Interest rate will be quoted on annualized basis only. Interest amount will be calculated on the daily outstanding balance in the loan account at the contracted rate.

Interest will be calculated on the basis of 360 days a year. Compounding, if any, will be provided in specific loan schemes. All loans carry the fixed contracted rate till closure of account. Risk related rate of interest Since a higher LTV (loan per gram) translates to a higher risk interest rate and LTV will be correlated. Assuming all other factors to be the same a higher LTV loan will attract a correspondingly higher interest rate as compared with a lower LTV loan. The interest rate applicable will vary from time to time and will be mentioned against the specific operative schemes / loan products. Maximum rate of interest The maximum interest rate chargeable has been fixed at 25 % pa with effect from 1st Dec 2012. Penal / Overdue interest When the loan remains outstanding beyond the normal tenure ( at present 1 year) without FULL servicing of interest overdue / penal interest will be charged at 3% pa (i.e. contracted rate plus 300 basis points) on the amount due and payable till the account is regularized / closed.

Current Schemes Scheme Name Tenure Rate of Interest Overdue Interest Processing Fee Other than Kerala & Tamil Nadu - 0.25% of loan amount LTV (Loan per gram) Please contact nearest branch GL-C1 12 Months 24% p.a. (Monthly Compounding) 3% p.a. (After 12 Months) Kerala & Tamil Nadu - Rs. 20 per loan account

Charges on Gold Loans

Back Postage Charges Loans upto Rs.10,000 30 100 130 Loans Above Rs.10,000 & upto Rs.20,000 30 110 140 Loans Above Rs.20,000 30 120 150

Schemes

Type of Notice Ordinary Regd.AD

Notice date 60th,120th,& 240th day 180th & 365th day Total

30 days (V/ D1/ E/ F/ G/ M/ MJ/ N/ O/ P/ S/ S1/ S2/ MITRAS3/ S3A/ S4/ S5/ S6/ SS/ SS5/ X/ X1/ X2/ X3/ XL/ XP/ Y/ YS)

Ordinary 3 months Schemes (A/D/Z) Regd.AD

120th,180th&300th day 240th & 365th day Total

30 100 130 20 100 120 20 100 120

30 110 140 20 110 130 20 110 130

30 120 150 20 120 140 20 120 140

Ordinary 6 months Schemes (B/H/T) Regd.AD

210th & 300th day 240th & 365th day Total

Ordinary 12 months Schemes (A2/B2/C/C1/D2/E2/F2/R) Regd.AD

180th & 270th day 370th & 400th day Total

Delivery of gold against lost pawn ticket First Instance Subsequent Instance Rs.75 Rs.100

Statement of accounts Within 30 days of closure After 30 days of closure NIL Rs.25

Stamp duty (Gold Loan sanctioned from 01-04-2012) Karnataka State Pledge value less than or equal to Rs.1 lakh Pledge value above Rs. 1 lakh NIL 0.1% of pledge value Other than Karnataka State NIL NIL

Swarnanidhi Swarnanidhi (Gold Purchase Scheme) We help you purchase gold, upon the invoice from the concerned jewellery shop.

Attractive Features

Different schemes to suit your needs. No hidden charges. Minimum Duration - 12 months to Maximum - 60 months. Minimum weight of Gold Coin when purchased from Manappuram Finance - 1 gram to Maximum - 1000 grams Minimum weight of Gold when purchased from other companies - 16 grams to Maximum - 800 grams Scheme 1 This scheme is applicable for the purchase of GOLD COIN from outside companies. Duration Down payment 12 Months 15.00 % 24 Months 15.00 % 36 Months 15.00 % 48 Months 15.00 % 60 Months 15.00 % Scheme 2 This scheme is applicable for the purchase of GOLD ORNAMENTS. Duration Down payment Interest rate 12 Months 25.00 % 12.00 % 24 Months 25.00 % 12.00 % 36 Month s25.00 % 12.50 % 48 Months 25.00 % 12.50 % 60 Months 25.00 % 13.00 % Scheme 3 This scheme is applicable for the purchase of GOLD COIN from Manappuram Finance. Duration 12 Months 24 Months 36 Months 48 Months 60 Months 5.00 % 5.00 % 5.00 % 5.00 % 5.00 % Down payment Interest rate 10.00 % 10.00 % 10.50 % 10.50 % 11.00 % Interest rate 12.00 % 12.00 % 12.50 % 12.50 % 13.00 %

General Terms and Conditions

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. When interest is not paid at monthly intervals the interest shall be compounded as mentioned above. Interest

will be calculated on the basis of 360 days a year on the amount outstanding. 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. Interest will be payable from the date of the loan till the account is closed, both days inclusive. 2 The loan is based on the weight, purity of the Gold and adjusted market value. 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. 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. However, the Borrower shall have the option to foreclose the loan at any time during the currency of the loan by paying the principal loan amount along with interest and other charges. The Borrower can also make part payments of principal or interest at any time during the currency of the loan. Pre-payment charges, if any, will be mentioned in the pawn ticket. As notices / reminders will be sent to the Borrower as per requirements postage charges will be recovered from the respective account. 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. The Company reserves the right to sell the Gold by public auction at any point of time or in the immediate future, even before the expiry of the period of the loan of one year, after serving a registered notice to the Borrower subject to the terms mentioned in para 13 below, if the Company is convinced, at its sole discretion, 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, interest and other charges due. Auction of Gold shall be carried out as per the guidelines issued by the Reserve Bank of India or other Authority. The Company shall intimate the Borrower by registered letter or courier service its intent to subject the Gold to public auction well before the proposed auction date. As a matter of policy the Company shall subject to auction all accounts remaining fully or partially unsettled after a period of 1 year from date of the loan. The list of accounts subject to auction along with the date and venue for auction shall be displayed at the concerned branch of the Company. If full repayment of the loan along with interest and charges is not made within the period of the loan (one year) or within such period as demanded by the Company, the Company shall have the right to sell or otherwise dispose of the Gold at the risk of the Borrower. The Borrower out of his/her free will authorizes the Company to dispose of the Gold by public auction at any time after 2 weeks from the date of notice to the Borrower at the given address subject to the terms mentioned in Para 13 below and adjust from the net proceeds of such sale all amounts, including interest and other charges, due to the Company in respect of the loan. If there is any surplus on such sale the Company shall have the right to appropriate such surplus towards any other liability of the Borrower, solely or jointly with others, on any account whatsoever, to the Company at any of its offices. In case of any shortfall, after disposal of the Gold, the Company shall have the right to resort to legal proceedings against the Borrower to recover the shortfall. In the event of loss of pledged Gold due to theft, burglary or for any other reasons, from the custody of the Company, the liability of the Company shall be limited to replacing the lost Gold with equal net weight as mentioned in the loan application form / pawn ticket. The Borrower and Company agree not to take any undue advantage of any unintentional / clerical error committed in the loan application form / pawn ticket. The Borrower agrees that stones embedded in the Gold, if any, carry no value. The Borrower further agrees that the Company has made only a preliminary verification of the Gold and that the Company has the right to further check the purity of the Gold by experts at a later date, if required, at the Companys sole discretion. The Company shall have the right to melt all or any portion of the Gold, at any time during the currency of the loan, if the Company has reason to believe, based on fresh or subsequent assessment, that the purity of the Gold is less than that declared by the Borrower. The Company shall have the right to exercise lien on the Gold offered as security for this loan to secure the repayment of any other liability of the Borrower to the Company, which is due and payable, until such other liability is also fully settled. Exercise of such lien will be duly intimated to the Borrower by letter, email, SMS, telephone or any other mode of communication. While as a matter of good practice and ethics the Company will not normally effect any changes in the agreed interest rate, charges etc. the Company may in exigencies effect changes prospectively after due intimation to the Borrower. The Borrower agrees to settle the loan within 7 days of the date of such intimation in case the revised rate of interest, charges etc. as intimated by the Company are not acceptable to the Borrower.

10

11

12

The Company shall have the right to assign or transfer the rights under this documentation, executed by the Borrower, to obtain necessary advance or financial facility from any Bank or Financial Institution or other organizations or for any other lawful purpose, at any time during the currency of the loan. The address for all communications to the Borrower shall be the one furnished in the loan application form by the Borrower. Unless any change of address is duly intimated by the Borrower to the Company in writing and duly acknowledged , non- receipt of communication sent to the Borrower due to incorrect address furnished or any change thereof shall tantamount to a valid receipt /acceptance of the communication sent by the Company. The Borrower shall also keep the Company duly intimated about any changes in the recorded landline phone or mobile phone number to facilitate communications. The Borrower shall use the loan amount only for the stated purpose and undertakes that the loan shall not be used for any unlawful, illegal or unauthorized purpose. In the event the Borrower fails to produce the pawn ticket at the time of settlement, the Company may, at its sole discretion, deliver the pledged Gold to the Borrower after completion of the formalities and subject to payment of processing charges as may be applicable from time to time which will also be displayed in the notice board. The Borrower shall bear, pay and reimburse all charges relating to administration , interest tax, service tax, duties (including stamp duty), sales tax/VAT and taxes (of any description as may be levied from time to time by Government or any other authority) and all other costs and expenses whatsoever in connection with (a) application for and the grant and repayment of the Loan; (b) recovery and realization of the Loan together with interest; (c) enforcement of Security (Gold) ; (d) clearance of arrears of all taxes and any other charges and levies of the Government in respect of Security and (e) insuring the Security (Gold). For clarifications or complaints the Borrower may contact the Customer Services Cell on Toll Free No 1800-420-2233 or by post at Manappuram Finance Ltd. Head Office, Valappad, Thrissur 680567 Kerala or by email to crm@manappuram.com giving the name of the branch and account number. All disputes, differences and/or claim arising out of or touching upon this gold loan, whether during its subsistence or thereafter, shall be settled by arbitration in accordance with the provisions of the Arbitration and Conciliation Act, 1996, or any statutory amendments thereof and shall be referred to the Arbitration of an Arbitrator to be appointed by the Company. The award given by such Arbitrator shall be final and binding on the Borrower and the Company

13

14

15

16

17

18

MANAPPURAM FINANCE LIMITED AUCTION POLICY Sept 2012) The Company shall resort to realization of the security only through Public Auction. As a general rule auction process shall be initiated for all accounts wherein the principal and interest have not been paid by the end 12 months from disbursement. Accounts that have not completed 12 months from disbursement date may be taken up for auction in exceptional circumstances when the interests of the Company are adversely affected and all other recovery initiatives have not succeeded. Auction shall be conducted in Auction Centres / Offices approved internally by the Company. Auction of the gold ornaments shall be taken up on as-is-where-is basis as far as possible. In exceptional cases the Company may be constrained to melt and assay the gold ornaments

before auction. A notice in the local language shall be sent to all unsettled pledges beyond 12 months after disbursement by registered post AD, at the address provided by the borrower in the loan application form / KYC document, at the end of 12 months after disbursement, requesting the borrower to immediately pay the full dues failing which the security would be liable to be put on auction, without further notice, for recovery of the dues. Reasonable opportunity will be given to all borrowers to redeem the gold ornaments to avoid forcing the Company to auction. The list of accounts taken up for auction shall be displayed at the concerned branches atleast 15 calendar days before scheduled date of auction on the security. Conduct of auction proceedings shall be announced through advertisement in two newspapers - one in vernacular and the second in a national daily atleast 4 calendar days before the scheduled auction date. Surplus, if any, arising in individual accounts shall be refunded to the borrower, without delay, irrespective whether a claim is made or not by the borrower, either through crossed account payee cheque or electronic transfer. However, a rightful lien on such surplus shall be retained, subject to proper notice, in case the borrower has other unsettled liabilities to the Company. Legal action for recovery of shortfall in individual accounts may be considered at the Companys discretion.

Moneycontrol Bureau

The Reserve Bank of India is worried about the scorching pace at which loans-against-gold have been growing of late, an official at the banking regulator told CNBC-TV18. The two listed gold loan firms, Manappuram Finance and Muthoot Finance reported a strong growth in earnings for the third quarter, even as the overall demand for loans in the banking system has been shrinking. Reacting to the news shares of both the companies have fallen 5% and 6% respectively.

The central bank is now considering tighter regulations for the segment, the official said. This is could be in the form of limits on the loan that a gold loan firm can give as a percentage of the value of loan. This is also known as the loan-to-value. RBI may also restrict the maximum interest that a gold loan firm can charge its customers, and also the penalties that gold loan firms can impose.

At present, gold loan firms charge anywhere between 18-24% as interest. The interest rate also depends on the ticket size of the loan. Higher the loan-to-value, more will be rate of interest. The central bank is also considering rules to ensure better protection for customers availing gold loans. People who avail loans against gold are mostly from the unorganised sector, who do not have access to credit from banks.

Last year, the RBI had removed priority sector tag for loans given by banks to gold loan firms. What that meant was gold loan firms would have to pay market rates for borrowing money from banks, instead of the concessional rate they would get for a priority sector loan.

On Tuesday, the RBI barred Manappuram Finance from accepting accept public deposits, as it found out that the company had outstanding fixed deposits issued in the name of a privately-owned promoter firm. This led to a 20% fall in the stock price on Wednesday.

Gold loan measures in manapuram

A) PREAMBLE / INTRODUCTION The Fair Practice Code (FPC) has been formulated by Manappuram Finance Ltd. (the Company) in response to guidelines issued by Reserve Bank of India vide circular DNBS.CC.PD.No.266 / 03.10.01 / 2011-12 dated 26 March 2012 titled Guidelines on Fair Practices Code for NBFCs replacing the existing code posted on the Companys website. The FPC will be applicable to all the offices of the Company including the Head Office, Valappad, Thrissur, Kerala, the Regional Offices located in various centres and the Branches located across India. The FPC shall be binding on all the employees and officers of the Company. B) OBJECTIVES The objectives of the FPC are as under. i) Adopt the best practices in dealings with customers. ii) Set challenging benchmarks and strive to achieve high operating standards for ensuring customer satisfaction. iii) Follow transparent, fair, ethical and legally tenable practices while conducting business. iv) Provide all necessary information and inputs to customers / prospective customers and promote a mutually beneficial long term relationship. v) Facilitate a continuously growing base of satisfied customers while scrupulously avoiding acquisition of customers having doubtful credentials or criminal background.

C) DECLARATIONS & COMMITMENTS i) The Company undertakes to abide by all applicable laws, regulations and guidelines passed / issued by the Regulators (Reserve Bank of India, SEBI, IRDA etc.) and other competent authorities such as Government, Local Authority etc. ii) The Company commits itself to full customer satisfaction through efficient, professional and courteous services across all its offices. iii) The Company shall consistently strive to meet with and improve upon the internally set benchmarks and practices and be ahead of the standards prevalent in the industry. iv) The Company undertakes not discriminate customers on grounds of religion, caste, gender or language. v) The Company will provide clear and full information about its products and services to its customers / prospective customers and will not resort to any misleading or potentially misguiding advertisement or publicity. vi) The Company undertakes to desist from introducing any products / services having elements of hidden charges or lack of transparency. vii) The Company will communicate in the local language with the customer and in English at the request of the customer. viii) The Company undertakes to take all possible and reasonable measures to secure the safe custody of the security pledged by the customer and to compensate the customer for any accidental, inadvertent or fraudulent loss of the security whilst in the custody of the Company. ix) The Company undertakes not to take advantage of any unintentional or clerical error made by the customer while transacting business. x) The Company is committed to put in place a system for promptly addressing complaints and suggestions of the customers supplemented with a structured Grievance Redressal Mechanism having an escalation matrix. xi) The Company shall display the FPC on its website and also make available to the Customer, on request, a copy of the FPC on demand. D) FAIR PRACTICES (I) LOANS, TERMS & CONDITIONS, INTEREST RATE & CHARGES i) The Company shall make available loan application forms in local language to all prospective customers free of cost at the concerned branches mentioning also the supporting documents to be submitted alongwith. An acknowledgement for receipt of duly completed loan application forms will be given to the customer in all cases. As a matter of policy and customer service loan applications are sanctioned / rejected immediately. Disbursement of the loan and acceptance of security will be carried out nearly simultaneously.

10

ii) The Company shall disclose all relevant information relating to a loan / product such as eligible loan amount, interest rate, charges, penal/overdue interest, interest calculation methodology, rebate on interest etc. before sanction of the loan to enable the customer / prospective customer to take an informed decision. The Customer / prospective customer will also be provided, on request, the detailed terms and conditions of the loan before sanction. iii) The Company shall ensure that a loan sanction letter (pawn ticket) is given to the customer containing all the terms and conditions governing the loan facility in the local language or other language understood by the customer. The loan sanction letter (pawn ticket) will also mention the loan amount, loan account number, interest rate, charges, loan processing fees etc. The loan sanction letter (pawn ticket) which will bear the signature of the authorized official of the company will also serve as a receipt for the security (gold) pledged at the branch by the customer. iv) The Company shall not in the normal course make any changes / modifications in the terms and conditions of the loan, including rate of interest, which could adversely affect the customer financially or otherwise. In abnormal circumstances when such changes / modifications are inevitable, keeping in view the new circumstances, adequate and proper notice shall be given to the customer about any such change/modification. (II) MARKETING & PROMOTION i) The Company shall not deliberately promote a product with any ulterior / selfish motives or contrary to the customer requirements or expectations as disclosed by the customer. The Company will ensure that its personnel engaged in marketing and operations are suitably trained and instructed so as to preclude selling of its products by misrepresentation to the customer / prospective customer. ii) The Company will not indulge in profiteering by charging usurious rates of interest on loans or take undue advantage of adverse market conditions. The rates of interest will be based on variables such as cost of funds, risk premium, loan scheme, loan per gram, profit margin etc. and shall be in conformity with the Interest Rate policy of the Company and Regulatory Guidelines from time to time. It shall also, by and large, be in tune with industry practices and benchmarks. iii) Full and updated information regarding loan schemes, rate of interest, loan per gram, charges etc. will be displayed on the website of the Company and also displayed in the branches. Complete or select information will also be made available through various media channels, posters, brochures, notices, displays etc. based on the decisions of the management of the Company from time to time. (III) RECOVERY OF DUES, EXERCISE OF LIEN & DELIVERY OF SECURITY i) The Company will not, as a matter of fair dealing, normally recall the loan before the initially agreed tenure except in unanticipated or abnormal circumstances where the Companys interests are adversely affected e.g. when the security value diminishes substantially, when the quality of gold is not found to be acceptable, due to any regulatory /

11

government directives etc. In all such cases proper and reasonable notice shall be given to the customer recalling the loan before expiry of the normal tenure. ii) The Company will make all possible soft or persuasive efforts to get the customer to repay the dues without resorting to disposal of the security. The Company does not accept nor will it encourage the use any coercive or hard measures to recover its dues from the customer. iii) The Company will deliver the security (gold) to the customer immediately upon settlement of the loan in the same condition as was at the time of sanction of the loan. In case of any damage caused to the security (gold) due to mishandling by its employees, the Company shall at its cost get the damage repaired or alternately pay reasonable compensation to the customer on a case to case basis. If the security (gold) has signs of damage thereon, before being taken custody of by the Company at the time of sanction of loan, the fact will be briefly incorporated in the sanction letter (pawn ticket). iv) The Company will exercise only legitimate right of lien over the pledged security or such cash surplus as may arise upon settlement of existing loans at any time. Such right of lien shall arise only if the customer has any other dues, either directly or as guarantor, and will be subject to proper intimation of such right of lien being given to the customer by the Company. v) The Company shall issue a signed and, normally, a system generated receipt for all cash payments made by the customer immediately. The Company shall also accept payments vide cheques, demand drafts, electronic transfers etc. subject to the condition that return of the security (gold) will be made only after confirmation of realization. vi) Even though the loan sanction letter (pawn ticket) contains all applicable terms and conditions of the loan the Company shall, nevertheless, endeavour, on a best effort basis, to send advices, reminders etc. regarding due date for payment of interest, principal etc. by letter, courier service, telephone , SMS etc. vii) The Company shall, on demand, provide the customer or his duly authorized representative with a statement of the loan account at any time during the currency of the loan or immediately upon closure. However, the Company may, at its discretion, require payment of reasonable processing charges by the customer for providing statement of account if such demand is made 30 calendar days after closure of the account. viii) The Company will resort to disposal of security (gold) only as a last resort and that too after adequate and proper notice is served on the customer to repay the dues. Such notice will be as per the terms contained in the sanction letter (pawn ticket) and also in compliance with applicable laws and regulatory guidelines. The disposal of the security (gold) will be taken up through public auction when the customer does not positively respond to the communications sent by the Company to close the loan account alongwith interest and other charges. ix) Where the Company proposes to dispose of the security even before the normal tenure of the loan based on the

12

rights conferred on the Company vide loan application and loan sanction letter (pawn ticket) adequate and proper notice will be served on the customer before such action is initiated for recovery of dues. x) The Company prefers and encourages customers to take back delivery of the security immediately upon full settlement of all dues. However, should there be exceptional instance of the Customer being unable to take delivery of the security (gold), not attributable to the inability of the Company, after closure of the loan account reasonable safe custody charges may be payable which will be duly advised to the customer or displayed in the branch premises and the Companys website. xi) The Company will not interfere in the affairs of the customers except for the purposes mentioned in the terms & conditions of the loan or when constrained to do so due to inadequate or false disclosures made by the borrower at the time of putting through the transactions. (IV) CUSTOMER SERVICE & GRIEVANCE REDRESSAL i) The Company will implement all possible steps to prevent and minimize customer complaints / grievances ii) The Company will facilitate the customer to pay the whole or part of the dues at any of the branches of the Company subject to the condition that delivery of the pledged security shall be made only at the branch where loan was originally disbursed. iii) The Company will put in place an effective Customer Grievance Redressal mechanism details of which will be displayed on the website and in all the branches. The mechanism will specify interalia the names & designations of the officials with whom complaints can be registered, their postal address / telephone numbers/ email address, escalation matrix, time limit for acknowledging receipt of complaint, time limit for dealing with the complaint etc. iv) The Company will put in place an effective training system to ensure that employees of the Company are customer friendly and do not resort to rude, inappropriate or unethical behavior. v) The Company will endeavour to work out and display the time norms for putting through and completing the various transactions. vi) The Company will have a sympathetic approach to the problems faced by the customer especially the poor and underprivileged sections. (V) MISCELLANEOUS i) The Company shall display the normal business hours at the respective branches, the list of holidays and notify the changes, if any, by way of a notice displayed in the premises of the branch or through press notification. ii) Personal information of the customer will not be shared with unauthorized persons or agencies or third parties by the Company. However, the Company will be bound to honour and comply with legal or regulatory requirements, if any, in this matter obligating it to part with such information even without notice to the customer.

13

GOVT REGULATIONS ASSOCIATED WITH GOLD LOAN:

Regulatory concerns Most gold loans are renewed on maturity and the borrower keeps paying interest. Once the borrower defaults, the lender auctions the gold. And sometimes, gold loan financiers, who are also jewellers, buy back jewellery through auctions. RBIs concerns on the gold loan market are largely due to the significant rise in imports of gold in recent years, which has a bearing on the countrys current account deficit. Direct bank financing for purchase of gold in any form could fuel demand for gold for speculative purposes. Indias gold imports stood at 181.3 tonnes in the April-June quarter of 2012, according to data from the World Gold Council. The central bank began tightening norms for NBFCs lending against gold first in February 2011 when it removed the priority sector tag to such loans that banks used to give to NBFCs for on-lending. This pushed up the cost of money for NBFCs. In March 2012, RBI capped the amount NBFCs can lend against gold or the LTV ratio at 60%. And this was followed by capping banks exposure to single gold loan NBFCs from 10% to 7.5% of their capital base. Commercial banks were also asked to set an internal ceiling for overall exposure to gold loan NBFCs. In October, RBI barred banks from financing the purchase of gold in any form other than working capital finance. The regulatory attention has prompted AGLOC to form a fair practice code, which promises to not charge excessive interest rates and disclose the interest rate, processing fee and other service charges levied on customers. The code also bars lenders from resorting to undue harassment of the borrower by persistently bothering the borrowers at odd hours, and the use of muscle power to recover loans. It stipulates the induction of independent directors (to constitute at least one-third of the board) and the institution of an audit committee with an independent director as chairman on the lines of commercial banks. According to analysts, gold loan NBFCs have found a way out of the 60% LTV cap by adding the making charges to the value of the gold. This enables them to give out at least 70-75% of the value of the gold as loan. RBIs norms could help the sector get its act together, said an analyst. Corporate governance issues have been a concern with gold loan lenders, but the industry is slowly moving to corporate environment. RBI has been taking steps to curb the growth by choking bank funds to the sector... With more steps coming in, these firms can organize themselves better, said Abhinav Sharma, assistant general manager (NBFCs) at Care Ratings Ltd.

14

MUTHOOT FINANCE GOLD LOAN | INTEREST RATES

Muthoot Finance Gold Loan Muthoot Gold Loan in 5 Minutes. Compare Muthoot Gold Loan, Interest Rates, EMI, Eligibility and Documents. Features and Benefits:

Loan disbursal in 5 minutes Loans starts from Rs. 1,500 to 1 Crore Minimal documentation High quality customer service in short response time In-house evaluation of Gold 0% processing fees Pre-payment option-without any penalty

Benefits provided by Muthoot Finance Gold Loan

1. Low interest rate of 2. No requirement of income certificate 3. Immediate and quick sanctioning of 4. Person can avail gold loan even if you have bad credit record gold for the gold gold loan. loan. loan.

Interest Rates of Muthoot Gold Loan

Scheme Super Loan Easy Loan Xpress Loan Realvalue Loan Truevalue Loan Gold Loan Overdraft Gold Loan Installment Scheme Gold Loan Installment Scheme Fair value Loan Slab Period/s 12 months 6 / 12 months 9 / 12 months 6 / 12 months 3 /6 /12 months NA 6 / 9 / 12 / 15 months 18 / 21 / 24 months 3/ 6/ above 6 months Rate of Interest 24% p.a. 23% /24 % p.a. 21% / 24% p.a. 20% / 23% p.a. 15% / 18% /21% p.a. 20% 14% / 14.5% / 15% / 16.75 p.a. 17% / 17.25% / 17.5% p.a. 17% p.a./ 20% p.a. / 24% p.a.

They have been actively involved in campaigns to spread message regarding the financial potential of gold holdings with individual consumers in India. There is traditional perception that to avail of a gold loan is a desperate measure. The truth is quite the contrary, and by availing of a gold loan, one can change the profile of gold holdings from an idle asset to a productive asset, says TMG managing director George Alexander Muthoot.

15

Muthoot Finance offers different type of loan products with interest rates ranging from as low as 12% to as high as 24%-25% "Our average interest rates on gold financing have increased to 21.6% from 19.7% six months ago, an increase of 1.9%," Muthoot Finance managing director George Alexander Muthoot said. The company offers different type of loan products with interest rates ranging from as low as 12% to as high as 24%-25%. "Yield on the loans we give has been at around 19% in last three years. But in last six months, banks have increased their lending rates so our cost of borrowings has also gone up, so we have increased our rates from 19.7% to 21.6%," he said. "But this 21.6% average is still the lowest offered by a NBFC in gold financing," he claimed Therefore, loans against gold have a mass appeal. At a time when gold is retailing at Rs18,000 for 10 grams, it is easy for people to pledge their gold and raise money. No wonder gold loans are doing roaring business.

Documents required for Gold Loan In Jamshedpur Muthoot Fincorp?

Original proof of identification. Any of the following are acceptable:

Passport Govt of India election ID card with address proof PAN card with address proof Drivers license Any Govt departmental ID card We are bound by and follow KYC norms as per the regulators guidelines.

Interest Rate structure of Muthoot Finance Smart Gold Loan

Loan Scheme Annual Interest Rate (on diminishing balance) 24% Remarks

Express 3 Minutes Gold Loan Daily Interest Scheme (Available in Kerala only) Express 3 Minutes Gold Loan Weekly interest remittance (Outside Kerala) Smart+ Gold Loan (EMI Scheme)

In all cases extra interest @3% per annum for every three months will be charged in the event interest is not serviced regularly, monthly or quarterly as agreed. In the event interest remains un serviced beyond 6 months, additional interest will be charged on the amount of interest outstanding at 1% for every completed month of default.

24 % / 27% ( as per the applicable scheme )

24%

16

Traders Flexi Gold Loan

24%

TERMS AND CONDITIONS

I was informed that I need to pay the interest amount on or before 17th of every month as per the date of issue of the loan. They said that they calculate interest for 30 days for every month. If in case I fail paying the interest on 17th of the month I will be charged double the interest rate multiplied by the number of days delayed. I was also informed that to avoid more interest payment & also if in case 17th of the month falls on sundays it's better to have the due date as 15th of the month instead of 17th. As per the said criteria or the information I got from "muthoot finance ltd" I started paying interest before 17th of every month so far. For the month of april'2011 I paid the interest on 16/04/2011 but for the month of may'2011 when I approached the branch for paying the interest on 17/05/2011 I was charged with rs. 200 (two hundred) extra saying that I'M paying the interest one day late compared with the interest payment date on the month of april'2011. This is where I'M victimized by not being informed about the specific procedure/The calculation of interest amount. Now at this instance "muthoot finance ltd" informs me about the different method of calculation of interest amount as per them the interest amount is calculated for 30 days period from the interest date paid for the last month & it's not as per the date issue of loan. For example : if I pay the interest on 16/04/2011 for the april'2011 month I will have to pay the next months interest on or before 16/05/2011 itself if not I will be charged at 2 percent interest. Even though we being promt & proactive in our payment of interest before the actual due dates as specified during the issue of loan we are again charged with unnecessary or heavy interest amount for no fault of us. The above said instance or the specific procedure/The calculation of interest amount is not informed to the customers by "muthoot finance ltd" at the time of availing loan nor it's listed in the "terms & conditions" of the company's document to the customers. Today when I approached the branch I was treated rudely by the office staff including they were very rude & reluctant to give any information for me more over I was charged rs. 200 extra for no reason. They say that the person who was present at the time of me availing the loan from "muthoot finance ltd" is not working with them now & they are blaming that person for all mistakes who was not present at the office during the instance. More over they were not accepting that the customer has no fault in this & he should not be charged for more interest amount.
MFL offer Gold Loan with varying loan amounts, advance rates (per gram of gold) and interest rates. The principal loan amounts they disburse usually range from ` 2,000 to ` 100,000 while interest rates on our Gold Loans range between 12.00% to 30.00% per annum. The company can disburse an average loan ticket size of ` 20,000 within five minutes from the time the gold is tendered to the appraiser. Furthermore, since loans are all over-collateralized by gold jewellery, there are minimal documentary and credit assessment requirements, thereby shortening our turnaround time. MFL generally lend between 60% - 90% of the price fixed internally for per gram of gold, which is generally lower than the market price of gold at that time.

17

All Gold Loans have maturity of maximum 12 months; however, average tenure is of 4 to 5 months.

RBI ROLES
The Reserve Bank of Indias (RBI) clamping down on gold loan companies by putting a cap on the loan-tovalue (LTV) ratio has impacted the growth of Muthoot Finance, Indias largest gold loan company. For the first time, the company has seen its gold loan outstanding decline by 5% to Rs. 23,000 crore as on June 30, 2012, from Rs. 24,300 crore as on March 31, 2012.

Concerned about the rapid growth of gold loan finance companies in recent years, RBI in March, 2012, had put a cap of 60% on the LTV ratio for such firms. Post the regulation, gold loan finance companies, which were till then lending up to 85% of the value of gold jewellery, were not allowed to lend more than 60% of the value of the jewellery pledged. Muthoot Finance, till March 2012, had an average LTV ratio of 72%. This is the first time we have seen our gold loan outstanding decline and the cap on the LTV ratio is the main reason for it, said K Padmakumar, executive director, Muthoot Finance. We are seeing our customers switch to banks and moneylenders as the LTV ratio cap does not apply to them, he said. For the company which saw its gold loan outstanding grow by 57% in 2011-12, the current financial year will be the year of consolidation. This will be the year of consolidation for us. We are looking at a growth of 20% in our gold loan outstanding in the current fiscal and will be opening fewer branches this year, said Padmakumar. The company plans to open around 200-250 branches in the current financial year, which is far less than the 900 branches it had opened in 2011-12. At the end of March this year, Muthoot Finance had 3678 branches in the country, of which around 60% were located in south India.

In this context, some of the recent directives of the Reserve Bank of India to regulate the growth of Indias gold loan industry come as a serious assault on the inclusive growth agenda of the country. In March 2012, the RBI directed thatNBFCs must not provide loans exceeding 60%of the value of gold jewellery pledged with them.In April 2012, the RBI directed banks to rationalise their exposure ceiling in a single NBFC, having gold loans to the extent of 50%or more of its total financial assets, from 10%to 7.5%of the banks capital funds.At Muthoot, while we welcomed the RBIs regulation to cap the loan to value as a way of industry-wide standardisation and compliance, we feel that the recent initiatives could stagger industry growth and induce a shift gold loan seekers from the organised to the unorganised industry who are operating outside the RBIs purview. For decades, Indias organised gold loan segment worked hard to induce a business shift to a more credible alternative; there is a growing apprehension that the recent RBI initiatives could well undo the hard work of the years. In this connection, it would be pertinent to put the recent industry growth into a responsible long-term perspective: for the last few years, the rapid growth of Indias organised gold loan sector was merely an overdue correction following decades of unorganised sector growth in a traditional industry. The rapid growth was more due to a shift of the customer base from the unorganised sector to theorganised sector and also due to increase in the reach of industry players through the addition of new branches. Our apprehension is that with the RBI stepping in, the organised sectors cash supply lines will decline and this could affect the industrys capability to service growing customer needs across rural and semi-urban India. At Muthoot, while the directive restricting funding from banks affects our fund sourcing from banks (about 40%of our total working capital), we believe that since our bank borrowings are fairly diversified, several banks have adequate room to enhance their exposures within the revised exposure norms. We possess robust fundamentals to address these challenges. Our negligible credit losses coupled with strict provisions, a brand of trust, a dispersed presence across 3,678 locations, and one of the most rigorous Standard Operating

18

Procedures represent some of our core strengths. However, to derive active participation and support from all market participants (lenders, customers, capital market investors, local administration, among others), the RBI will need to dispel the apprehensions and negative perceptions about the sector. To provide the regulator comfort andtime to understand the growth dynamics of the sector better, the Company consciously decided to reduce the pace of its growth and consolidate its operations during the current year,focusing on improving customer service, staff training and internal controls while maintaining profitability.In the Companys opinion, a higher LTV cap, liberal funding from the banking system, level playing field with banks especially with regard to LTV and risk weightage, and dispelling the apprehensions and negative perceptions on the sector by the regulator will be a key requirement for the healthy growth of the sector.We offer all our support and cooperation to the regulator in understanding the sector better as well as to achieve its agenda of financial inclusion. Being the largest company in the sector, we have an added responsibility to take the lead role in setting the right sectoral trends and practices. We wish to assure all our shareholders that the Company will strive to enhance the confidence of the regulator while being engaged in itsjourney in Public Interest.

RECOVERY:
However, for gold jewellery the loan depends on the size of the ornament. If you have a gold ring or earring worth 22 carats, the loan amount that Muthoot Fincorp will give you would be Rs 1,350 for a gram. But for larger-size jewellery like a gold bangle, the amount would be Rs 1,450 per gram. If you are carrying along 24-carat gold for a loan, then you better have a gold coin. This will enable you to get a loan amount of Rs1,700 per gram. Manappuram's branch is located on the Western Express highway, but it is isolated. The building is rundown. All the stores in the building are shut, except for a solitary ATM. As you enter, there is a very dim light guiding you to the office. The guard sitting at the door tells me that the servers are not working. I request him to let me in as I just want details. The moment you enter, you see a very different office from the ones you have seen before. There are fans running, but no air-conditioning. Some windows are broken and there are paan stains on its walls. There is a room, (actually with a lock). I wonder if it may be the room where the gold is stored. The usual questions were asked. The person I first spoke to didn't have any knowledge of the schemes, so his colleague intervened. And this is a listed gold loan company. The loan amount would depend upon the weight of the gold. Manappuram values loan against gold per gram at Rs1,400. However, they only consider 90% of the total weight of gold being submitted for a loan. This would mean your actual loan amount is Rs1,260. The total monthly interest you will pay under this scheme would be 1%. However, if you want a higher amount of loan against your gold, there are a few more schemes (which charge you higher interest). For a monthly interest of 2.17%, Manappuram will provide you a loan of Rs1,450 per gram (after deducting a margin
19

of 10% as explained above). The interest payout is similar to that of Muthoot Fincorp. You can pay your interest on a monthly, quarterly, half-yearly or yearly basis - which will obviously impact the actual interest that you are paying out.

Kotaka Mahindra Key Features

Instant loan Utmost safety of your gold Minimal documentation Higher Loan to Value Easy repayment with multiple modes Overdraft facility Need not be an existing Kotak Bank customer

Documentation Requirement for Kotak Mahindra Loans in Bangalore:

Document Application form 1 photograph Identity details Residence details Signature verification from bank Degree certificate & Certificate of practice Payment track record Income details Bank account statements Salaried individuals Yes Yes Yes Yes Yes No No* Latest payslip & Form 16 (Form 16 required only when applying under holiday finance) For the last 3 months Professionals Yes Yes Yes Yes Yes Yes No* IT Returns & Balance Sheet & P/L Account statement for the last 2 years For the last 6 months Businessmen Yes Yes Yes Yes Yes No Yes IT Returns & Balance Sheet & P/L Account statement for the last 2 years For the last 6 months

Know More About Kotak Mahindra Bank

Eligibility
i. ii. iii. Age: Minimum 18 years Constitution: Resident Individual / Proprietor Security: Gold ornaments / articles above 18 carat.

20

Documentation

For Kotak customers: latest address proof (only if the address of the customer as updated in the bank records is different from the address stated in this application) For non-Kotak customers: Identity Proof, Address Proof, Signature Proof (KYC Documents) and 3 passport size photographs
For loans: *Conditions apply: Credit at the sole discretion of the Bank and subject to guidelines issued by RBI from time to time. Bank may engage the services of marketing agents for the purpose of sourcing loan assets.

Terms and Conditions

The gold ornaments /coins proposed to be pledged by the customer will be assessed & valued immediately in order to arrive at the loan amount eligibility. The customer can then avail a maximum of 90% Loan-To-Value of the total valuation as certified by the bank's assayer. The customer at the time of availing the gold loan facility can decide on the facility available under the product, best suited to him as well as the type of the repayment amongst the following options: i. ii. iii. Term Loan - Bullet (Monthly interest servicing & principal repayment at the end of the tenure) Term Loan - EMI ( Equated Monthly Installment) Overdraft Facility

Overdraft facility provides the flexibility to the customer to rotate his funds & thus utilize the credit limit as per his needs. It not only suits the working capital needs of small business enterprises but also acts as an additional source for their business growth. Applicants who are not the existing customers of Kotak Mahindra Bank Ltd. can also avail this facility.

Following are the terms, conditions and rules ("Terms"), which shall be applicable to all Current (including Overdraft Accounts), Savings, Term Deposit and DEMAT Account(s) (collectively referred to as 'Accounts') with any of the branches of the Bank and the 'Services' offered by the Bank. The Terms may be read as a stand-alone document or may be read with such other documents/terms as may apply to a particular Account/ Service/ situation/ circumstance/ transaction. These terms and conditions are in addition to the terms and conditions as may be specified in any document/facility documents etc. as may apply to a particular Account/ Service/ situation/ circumstance/ transaction. In the event of any of these terms and conditions being contrary to those specified therein, the terms and conditions as specified in such other document(s) in respect of a particular Account/ Service/ situation/ circumstance/ transaction as the case may be will prevail over these terms and conditions. The Terms shall be available at the Bank branches. The Customer acknowledges and agrees that the Bank may at its sole discretion add to, modify or amend the Terms (including the Charges) from time to time and such changes shall be communicated to the Customer by display in the Bank premises or on the website, but individual communication may not be sent to him. The Bank may publish notices of general nature, which are applicable to the Customers on Bank's Website or on its notice board or in any other mode as may be decided by the Bank. Such communication and notices would have the same effect as a notice served individually to each Customer. The Customer may within a period of fifteen (15) days from the issue of the notice close the Account or discontinue availing of Service, failing which he shall be deemed to have accepted the change from the effective date mentioned in the notice or from the date as may be specified by the applicable law. The Bank may be required to abide by the rules and regulations of self-regulatory bodies, to which the Bank is or maybe affiliated, statutory/regulatory authorities and the Customer agrees that he may also be required to abide by such rules and regulations as may be advised/specified.

21

It is a personal loan secured against the gold ornaments / coins which a customer pledges with the bank. The loan amount can be utilized for personal / business & any other non-speculative & for approved purposes

Which all ornaments / coins can I pledge?

Customer can pledge all types of gold ornaments / coins which are 18 carat & above in purity. However the bank does not accept ornaments such as "Mangalsutra", "Thali", "Raksha", Kodi", "Karimanimala", "Gold Statues" & "Gold wrist watches"

What are the different loan tenures available

Gold Loan facility is available under 3 schemes:

Term Loan - Bullet (3 / 6 / 9 / 12 months) Wherein the loan amount will be disbursed instantly and the customer needs to service interest on monthly basis. Term Loan - EMI (24 / 36 months) Wherein the loan amount will be disbursed instantly and the customer needs to service equated monthly installment which includes interest as well as principal. Overdraft facility (12 months) Wherein customer will be provided with overdraft limit which he/she can rotate & utilize as per their needs during the tenure of 12 months & repay interest on monthly basis on the amount utilized.

What is the maximum Loan to Value available?

Customer can avail a maximum loan to value of 90% of the value of gold ornaments / coins being pledged.

How much loan amount can I avail?

Minimum Loan amount: 25,000/Maximum Loan Amount: 25,00,000/Do I need a guarantor to avail this loan?

Guarantor is not required while availing Gold Loan. What are the different modes of disbursement?

Disbursement can happen by way of Cash, Demand Draft, Fund Transfer (to customer's existing Kotak Mahindra Bank Ltd. account), NEFT & RTGS (to customer's other bank account). Can I avail overdraft facility for my business needs?

Yes. Customer can avail overdraft facility which will be valid for a period of 12 months. Customer can revolve & utilize funds as per his/her requirement to the extent of limit sanctioned based on the value of gold ornaments / coins being pledged.

22

Can I avail EMI facility?

Yes. Customer can avail Term Loan with EMI as repayment type for the 2 tenures of 24 & 36 months only. Customer will be required to provide Post Dated Cheques to avail such facility. Can I foreclose the loan earlier?

Yes. You can choose to foreclose the loan anytime after 1 & 1/2 months of availing the loan. Please refer to General Schedule of Features and Charges for Gold Loans for details.

Gold loan vs. Personal loan Evidently rates offered by gold loans are far cheaper than a personal loan. Lets compare the interest rates of a personal loan with a gold loan.
Personal loan 14.25-19% Processing fees of 2-3% 2-3% pre payment charges Rs 50 L 7 years Gold Loan 11.5-15% (depending on gold value) No processing fees No pre payment charges Rs 1 Cr. 1 year

Interest Rates Added Fees Added fees Maximum loan Maximum Tenure

Rate per gram

Gold Loan Period Maximum Amount

General Gold Loan

12 Months

75% of market value of Gold subject to a maximum of Rs. 2150/- per gram 80% of market value of Gold subject to a maximum of Rs.2250/- per gram 80% of market value of Gold subject to a maximum of Rs.2300/- per gram 80% of market value of Gold subject to a maximum of Rs.2350/- per gram

Special Gold Loan

6 Months

Special Gold Loan

3 Months

Special Gold Loan

2 Months

Period
General Gold Special Gold Loan Maximum 6 months Loan Maximum 12 months

23