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A

Summer Training project report

On

Customer Perception about Gold Loan as Short Term of Finance

AT

Perception about Gold Loan as Short Term of Finance AT Submitted by: KEYUR M UPADHYAY Enrollment

Submitted

by:

KEYUR M UPADHYAY Enrollment No: 167610592051 M.B.A - SEM-II Batch: 2016-2018

SUBMITTED TO

SHREE SAHAJANAND INSTITUTE OF MANAGEMENT BHAVNAGAR (AFFILIATED TO GUJARAT TECHNOLOGICAL UNIVERSITY)

Declaration

I, undersigned hereby, declare that the research project assigned to us in MBA, under

the guidance of professor, written and submitted by us as our original work.

The empirical findings and analysis in this project are based on the primary as well as

secondary data collected by us. We have not duplicated any material or data either from

any source of data collection from any visited firm.

Hereby declare project reported titled ,Customer Perception about Gold Loan as

Short Term of Finance " Is a part of curriculum and data used in this project will

remain confidential.

Place: BHAVNAGAR Date:

Keyur Upadhyay

(167610592051)

Certificate

It is a certified that the work presented in this report entitled Customer Perception about Gold Loan as Short Term of Finance “has been carried out for partial fulfillment of curriculum for the degree of master of business administration.

We further certified that this report has not been submitted elsewhere foe a degree. The information obtained from various sources to present the report has been summarized and acknowledgement.

Counter signed by

Mr. Birju Jani

Assistant professor

Keyur Upadhyay

Executive Summery

Management as a profession cannot be taught merely in four walls of the classrooms. Only theoretical knowledge is not sufficient to build competitive managers. Practically knowledge of the business environment is equally important.

In today business world service sector is running towards its booming stage. So I choose service industry for my training session in M.B.A.

I choose kotak Mahindra bank as Effectiveness of customer satisfaction service in private bank who entered the market before few years and made its own place among all its competitors.

Service is the company‟s ability to fulfill the physical, emotional and physiological needs of its customers. Service is supremely important in an organization because it is what productivity depends on. If your service is good for your customer then it will be come up with time and changing market conditions. The project centers the research titled Customer Perception about Gold Loan as Short Term of Finance survey at the kotak Mahindra bank.

To accomplish the task, a survey was carried in and around kotak Mahindra bank with a sample of respondents taken on random basis approaching the customers. A structured questionnaire was prepared and administrated and the data so collected was analyzed by percentage and methods.

Preface

Summer training is in an integral part of master of business administrative program. The main objective of summer training is to work in the organization for a stipulated period and gain the valuable knowledge of management skills so that the student can learn how to work as a team instead of individual and how to handle critical situations in the business.

The knowledge gained by reading the books is just theoretical in nature. Summer training is an opportunity to every student to learn practical aspects, a part from academic knowledge. As a practical point of view, I completed my summer training in kotak Mahindra bank, Bhavnagar which gave me the practical knowledge of customer satisfaction service on private bank and also aspects of management.

I learn a lot from this training about the corporate life, which will be useful further in my professional life.

Acknowledgement

We learn management “manage +men+ T(time , task etc).” we all agree with this statement and wish to include that it would have been not possible to complete this project without help and support of many people. we are thankful to all of them.

It gives my immeasurable pleasure, to knowledge the help and advice given by all the concern people.

It is matter of great pleasure for me to get this opportunity of expressing our deep and sincere of gratitude to all the faculties of the SHREE SAHAJAND INSTITUTE OF MANAGEMENT (center for management studies) and Gujarat technological university for this guidance and generous support that give me sufficient strength to prepare this summer internship project report.

I greatful to SHREE SAHAJANNAD INSTITITUE OF MANAGEMENT for granting to

prepare this report and special thanks to Mr. Birju Jani (Assistant professor) for timely help and inspiring guidance without which we would not have successfully completed this report.

Last but not the least I am indebted to my parents and all of my well wishers, who provide me their time, support and inspiration needed to prepare this report.

Table of contents

Topics

Page no

Declaration

2

Preface

3

Acknowledgement

4

Executive summery

5

Company overview

8 -16

Gold information

18-34

Research problem

36

Literature review

37-38

Research objective

39

Hypothesis statement

40

Research methodology

41

Data analysis and interpretation

42-67

Hypothesis testing

68-72

Research findings

73

Recommendation

74

Limitation of study

75

Conclusion

76

Bibliography

77

Questionnaire

81

Board of directors

1.1

Uday kotak

Founder & MD & vice executive chairman

Dipak Gupta

Joint MD

Jaimin Bhatt

President & Group CFO

Shanti Ekambaram

President - consumer Banking

KVS Manian

President - Corporate, Investment &

Institutional Banking

Mohan Shenoi

Chief operating officer

Gaurang Shah

President Asset management insurance & international business

D kannan

Group head commercial banking

8

KOTAK MAHINDRA BANK SUCCESS STORY

Established in 1985, the Kotak Mahindra group has been one of India's most reputed financial conglomerates. In February 2003, Kotak Mahindra Finance Ltd, the group's flagship company was given the license to carry on banking business by the Reserve Bank of India (RBI). This approval created banking history since Kotak Mahindra Finance Ltd. is the first nonbanking finance company in India to convert itself in to a bank as Kotak Mahindra Bank Ltd. Today, the bank is one of the fastest growing bank and among the most admired financial institutions in India.

The bank has over 323 branches and a customer account base of over 2.7 million. Spread all over India, not just in the metros but in Tier II cities and rural India as well, it is redefining the reach and power of banking. Presently it is engaged in commercial banking, stock broking, mutual funds, life insurance and investment banking. It caters to the financial needs of individuals and corporate. The bank has an international presence through its subsidiaries with offices in London, New York, Dubai, Mauritius, San Francisco and Singapore that specialize in providing services to overseas investors seeking to invest into India.

In a study by Brand Finance Banking 500, published in February 2014 by the Banker magazine (from The Financial Times Stable), KMBL was ranked 245th among the world's top 500 banks with brand valuation of around half a billion

dollars ($481 million) and brand rating of AA+.and merge with ING Vysya bank in

2015.

Merger with ING Vysya Bank

2014, Kotak Bank acquired

in

a

deal valued at

15,000 Cr

(US$2.3 billion). With the merger, total employment will jump to almost 40,000, and the count of branches reached 1261.Post the merger, ING Group, which controlled ING Vysya Bank, will own a 7% share in Kotak Mahindra Bank.

Products and Services

The bank offers complete financial solutions for infinite needs of all individual and non– individual customers depending on the customer's need – delivered through a state of the individual customers depending on the customer's need delivered through a state of the art technology platform. Investment products like Mutual Funds, Life Insurance, retailing of gold coins and bars etc are also offered. The bank follows a mix of both open and closed architecture for distribution of the investment products. All this is backed by strong, inhouse research on Mutual Funds.

The bank‟s savings account goes beyond the traditional role of savings, and allows us to put aside a lot more than just money. The worry – free allows us to put aside a lot more than just money. The worryfree feature of Savings Account provides a range of services from funds transfer, bill payments, 2way sweep through our ActivMoney feature and much more. We can place standing instructions for investment options that can be booked through Internet or through Phone banking services. The Savings Account thus provides for attractive returns earned through a comprehensive suite products and services that offer investment options, all delivered seamlessly to the customer by well integrated technology platforms.

Apart from Phone banking and Internet banking, the Bank offers convenient banking facility through Mobile banking, SMS services, Netc@rd, Home banking and BillPay facility among others.to the customer by well integrated technology platforms. The Depository services offered by the Bank allows

The Depository services offered by the Bank allows the customers to hold equity shares, government securities, bonds and other securities in electronic or Demat forms.Netc@rd, Home banking and BillPay facility among others. The Salary 2 Wealth offering provides comprehensive

The Salary 2 Wealth offering provides comprehensive administrative solutions for Corporates with features such as easy and automated web based salary upload process thereby eliminating the paper work involved in the process, a dedicated relationship manager to service the corporate account, customized promotions and tie – ups and many such unique features. The whole gamut of investment ups and many such unique features. The whole gamut of investment

products and investment advisory services is available to the salary account holders as well.

For the business community, the bank offer comprehensive business solutions that include the Current Account, Trade Services, Cash Management Service and Credit Facilities. The bank‟s wholesale banking products offer business banking solutions for long – and Credit Facilities. The bank‟s wholesale banking products offer business banking solutions for longterm investments and working capital needs, advice on mergers and acquisitions and equipment financing. To meet special needs of the rural market, the bank has dedicated business offerings for agricultural financing and infrastructure. Its Agriculture Finance division delivers customised products for capital financing and equipment financing needs of our rural customers.

For financial liquidity the bank offers loans that meet personal requirements with quick approval and flexible payment options. To complete the personal financial offerings space, the bank now offers Kotak Credit Card which is a hassle– free, transparent product that also happens to be the first vertical credit card in free, transparent product that also happens to be the first vertical credit card in the industry.

Awards

ICAI Award : Excellence in Financial Reporting under Category 1 Banking Sector

for the year ending 31st March, 2010

Asia money : Best Local Cash Management Bank 2010

IDG India Kotak won the CIO 100 'The Agile 100' award 2010

IDRBT

Banking Technology Excellence Awards Best Bank Award in IT Framework and Governance Among Other Banks' – 2009 2009

Banking Technology Award for IT Governance and Value Delivery, 2008Framework and Governance Among Other Banks' – 2009 IR Global Rankings – Best Corporate Governance Practices

IR Global Rankings Best Corporate Governance Practices Ranked among the

top 5 companies in Asia Pacific, 2009

Finance Asia Best Private Bank in India, for Wealth Management business, 2009

Kotak Royal Signature Credit Card Was chosen 'Product of the Year' in a

survey conducted by Nielsen in 2009

IBA Banking Technology Awards

Best Customer Relationship Achievement – Winner 2008 & 2009 Winner 2008 & 2009

Best overall winner, 2007Relationship Achievement – Winner 2008 & 2009 Best IT Team of the Year, 4 years in

Best IT Team of the Year, 4 years in a row from 2006 to 2009– Winner 2008 & 2009 Best overall winner, 2007 Best IT Security Policies & Practices, 2007

Best IT Security Policies & Practices, 2007Best IT Team of the Year, 4 years in a row from 2006 to 2009 Euro

Euro money Best Private Banking Services (overall), 2009

Emerson Uptime Champion Awards Technology Senate Emerson Uptime

Championship Award in the BFSI category, 2008

2010

Best Investment Bank in India, 2010 Best Equity House in India, 2010 Best Broker in India, 2010 Best Domestic Equity House, 2010 Best Local Brokerage in the Asia money Brokers Poll 2010 Best Investment Bank in India, 2010 Best Bank for Equity Finance in India, 2010 Best Domestic Investment Bank, 2010

Best Investment Bank in India, 2006, 2007, 2008, 2009 & 2010 Best Equity House in India, 2008 & 2010 Best Domestic Equity House, 2008, 2009 & 2010 Kotak Mahindra Bank has launched a credit card called Kotak Trump Card that offers 10% cash back on dining as well as movie and play spends.

2011 : Kotak Mahindra Bank launches interbank mobile payment service

Milestones

1986 – Kotak Mahindra Finance Ltd started the activity of Bill Discounting

1986 Kotak Mahindra Finance Ltd started the activity of Bill Discounting

1987 – Kotak Mahindra Finance Ltd entered the Lease and Hire Purchase

1987 Kotak Mahindra Finance Ltd entered the Lease and Hire Purchase

market

2003 – Kotak Mahindra Finance Ltd. converted into a commercial bank – the first

2003

Kotak Mahindra Finance Ltd. converted into a commercial bank the first

Indian company to do so.

2009 – Kotak Mahindra Bank Ltd. opened a representative office in Dubai.

2009

Kotak Mahindra Bank Ltd. opened a representative office in Dubai.

Entered Ahmedabad Commodity Exchange as anchor investor.

company profile

Type

Public company

Treaded as

BSE: 500247 NSE: kotak bank

Industry

BankingIndustry

financial serviceas BSE: 500247 NSE: kotak bank Industry Banking Founded 1965 (As kotak Mahindra finance ltd) Headquarters

Founded

1965

(As kotak Mahindra finance ltd)

Headquarters

Mumbai, India

Key people

Uday kotakKey people

Dipak guptaltd) Headquarters Mumbai, India Key people Uday kotak Jaimin bhatt shanti Ekambaram KVS manian Mohan Shenoi

Jaimin bhattMumbai, India Key people Uday kotak Dipak gupta shanti Ekambaram KVS manian Mohan Shenoi Gaurang D

shanti EkambaramMumbai, India Key people Uday kotak Dipak gupta Jaimin bhatt KVS manian Mohan Shenoi Gaurang D

KVS manianIndia Key people Uday kotak Dipak gupta Jaimin bhatt shanti Ekambaram Mohan Shenoi Gaurang D kannan

Mohan ShenoiIndia Key people Uday kotak Dipak gupta Jaimin bhatt shanti Ekambaram KVS manian Gaurang D kannan

GaurangKey people Uday kotak Dipak gupta Jaimin bhatt shanti Ekambaram KVS manian Mohan Shenoi D kannan

D kannanIndia Key people Uday kotak Dipak gupta Jaimin bhatt shanti Ekambaram KVS manian Mohan Shenoi Gaurang

Arvind kathpaliaMumbai, India Key people Uday kotak Dipak gupta Jaimin bhatt shanti Ekambaram KVS manian Mohan Shenoi

Products

Deposit accounts

Loans

Investment services

Revenue

$ 4.3 billion (2016)

Net income

$ 530 million (2016)

Total assets

$ 5.8 billion (2015)

Web-site

Vision Statement

To be the most trusted global finance services brand and the most preferred financial services employer with focus on creating value.

Organization Structure

Chief executive officer Chief operation officer Co-chief executive officer Head marketing Head-business Department
Chief executive officer
Chief operation officer
Co-chief executive officer
Head marketing
Head-business Department
Head –institutional sales
Co-head –retail sales and Distribution

What is Gold Loan?

What is Gold Loan? As the name suggests this is the loan given against gold. Many

As the name suggests this is the loan given against gold. Many nationalized banks, private banks and other financial companies offer this loan at attractive rates. Many go for this loan for short period to meet the requirement of their children‟s education, marriage and other financial problems in the family. And others think that instead of keeping the gold idle at home or locker, loan against gold is the best option. Moreover with the rise in gold rates the demand from companies and banks offering such loans has raised. For instance.

A Gold Loan is a secured Loan taken by depositing gold as collateral So far, the

Gold Loan market was dominated by non-banking finance companies, but

gradually Organized banks have also started entering the business thereby giving

a clear indication of its viability as an effective Loan product A Borrower is a

person who takes a Loan from the Loan lender The Gold Loan market in India is broadly classified into two categories, namely Organised Sector and Unorganized sector Organized sector primarily constitutes formal institutions like banks and

NBFCs; Unorganised sector includes informal institutions like private money lender and pawn broker However, the market shares between the Unorganized and the Organised sector is extremely skewed.

Types of gold

1) Colored gold

Gold can take different colors depending on the metals it is mixed with. The different gold hues are generally for the purpose of jewelry. To give you a quick idea here are some different types of gold colors and how they are made:

White Gold: For gold to take a white color, it must be mixed with a white metal For gold to take a white color, it must be mixed with a white metal such as nickel, manganese or palladium. Standard White gold is usually 14K of gold (58.5% purity) while the rest is divided as 21% copper, 7.84% zinc, and 12.73% nickel. and White gold can often be rhodium plated to give it a more shiny and white appearance.

Gold can take these colors when mixed with

copper. The more copper in the alloy, the darker the tone of red that will surface. A common rose gold alloy composition is 18K (75% gold) mixed

with 25% copper while a 50/50 mix of gold (12K) with copper results in what we would call red gold.

Green Gold: Green gold, otherwise known as electrum , is a natural forming alloy which combines gold Green gold, otherwise known as electrum, is a natural forming alloy which combines gold and silver. The greenish color varies depending on the exact mixture but back in the 73% gold, 27% silver

Blue Gold: 46% gold, 54% indium.on the exact mixture but back in the 73% gold, 27% silver Purple Gold: 80% gold,

Purple Gold: 80% gold, 20% aluminum.in the 73% gold, 27% silver Blue Gold: 46% gold, 54% indium. Black Gold: 75% gold,

Black Gold: 75% gold, 25% cobalt.in the 73% gold, 27% silver Blue Gold: 46% gold, 54% indium. Purple Gold: 80% gold,

Rose, Pink, Red Gold:27% silver Blue Gold: 46% gold, 54% indium. Purple Gold: 80% gold, 20% aluminum. Black Gold:

Types of gold bullions

Gold barsTypes of gold bullions Gold bullion coins Other types of Gold Numismatic Gold Coins Unrefined Gold

Gold bullion coinsTypes of gold bullions Gold bars Other types of Gold Numismatic Gold Coins Unrefined Gold 21

Other types of Gold

Numismatic Gold Coins

Unrefined Gold

Advantages of Gold Loan

Gold loan doesn‟t demand any certificate to show your salary or income and even no credit card history is required. Thus even unemployed and non working people can go for gold loan.

Unlike any other unsecured loan, gold loan doesn‟t require many papers, only few documents such as ID proof and address proof is enough to avail for such loan.

One of the main advantages of gold loan is its low interest rates. Usually loan over gold is provided at the interest of 12-16% per annum and this is quite low compared to personal loans available at interest rates of 15-26% per annum.

In rural areas Agricultural loan against gold is also available for agriculturist at very nominal rate of Interest of 7%-8%, proof of agricultural document needs to be provided

Gold loan is the most simple and convenient forms of loan because here all you need to do is pledge your gold with a bank or finance company and get upto 80% of the market value of the gold as a loan.

Borrower will be given an option to pay only interest during the entire term and at the end of the tenure you can pay complete borrowed amount in single shot.

In case of gold loan processing time is very less. Usually banks take just few hours to complete the process where as in case of NBFC‟s (Non Banking Financial Companies) a few minutes is enough for the same. So for immediate financial help this is the best option.

Charges associated with Gold Loan

Loan processing charge: :

While some of the service providers may waiver

these charges, some banks do charge a processing fee.

Valuation Charge: These are the charges to be paid to the valuator. These charges are also : These are the charges to be paid to the valuator. These charges are also specific to the service provider and those having in-house valuators do not charge any extra amount for valuation.

Late payment penalty: Most of the service providers charge late payment penalty and this too can vary : Most of the service providers charge late payment penalty and this too can vary from one institution to the other.

Pre-payment penalty: Most of the service providers do not charge a penalty for repayment before the : Most of the service providers do not charge a penalty for repayment before the loan tenure is over. But some may still have this charge in place.

It is advisable to check with the loan provider before taking the loan. These charges could change the amount that you may finally receive.do not charge a penalty for repayment before the loan tenure is over. But some may

Advice on Gold Loans

Go for gold loan if you are confident of returning the money in time otherwise, you will be penalized and all your pledged gold will come under the control of bank or finance company.Advice on Gold Loans While opting for gold loan check the interest rates in various banks

While opting for gold loan check the interest rates in various banks and private finances. If you go for private lenders then better to go with one who has been in this business for many years.gold will come under the control of bank or finance company. As far as you are

As far as you are not emotionally linked to your gold ornaments this is the best option. However nothing like this can help you during your difficulties and with the fall of dollars and euro many think gold is the only safe thing left.finances. If you go for private lenders then better to go with one who has been

Documents required for Gold Loan

Identity proof such as passport, voters ID or driving license.Documents required for Gold Loan Address proof such as electricity bill, ration card, telephone bill etc.

Address proof such as electricity bill, ration card, telephone bill etc.proof such as passport, voters ID or driving license. For signature proof you need to submit

For signature proof you need to submit your passport copy, driving license or any other document with your sign.such as electricity bill, ration card, telephone bill etc. 2 passport size photographs. Some of the

2 passport size photographs.copy, driving license or any other document with your sign. Some of the leading companies and

Some of the leading companies and banks offering gold are ICICI bank, Muthoot Finance, Manappuram Gold Loan, SBI and HDFC, kotak Mahindra bank.

Gold loan as Follows

o

Gold loan is a secured loan

 

o

Eligibility : Anyone at any Age with gold as collateral is eligible.

 

o

Documentation

:

Quick

Loan

approval

sand

disbursals,

with

minimal

documentation.

o

Loan to value: Multitude of Loan options with higher LTVs.

 

o

Non-bankable customers are also served

 

o

Convenient hours of operation

 

o

Better operating cost structure vies-à-versa bank.

 

o

Flexibility in provision of very small and very large Loan amounts

 

India is one of the biggest markets for gold and Gold Loan According to World Gold Council, India accounts for 10 of total world gold stock, of which rural India accounts for 65 of the total gold stock2 For Indians, gold is not just a commodity, but an auspicious metal that they buy for various purposes on different occasions.

Increased Hedging with futures - Factors

Gold Future Rate - a Bench mark Rate - increases Hedge effectiveness

Hedging awareness Seminars by Regulators-Exchanges-Members

Regulatory Enablers

Income Tax Amendment - Futures Trading treated as business income and not Speculative income

Guidance note on Derivative accounting No net impact in the statement of profit and loss under hedge accounting

Disclosure requirement for listed company to disclose commodity price

risk on and hedging activities in the annual report limits.

Adequate position

Kotak commodities: Gold hedging with futures Challenges

Hedging for profit mentality

Perception - Commodity hedging vs currency hedging

High cost of hedging - CTT

Except futures no other product available

No Liquidity in long dated contracts

Daily MTM onerous operational process

Hedging Data disclosure still at an initial stage

Customer perception about gold loan

Women perception

Kotak has a huge holding of gold in the private sector, but they feel that it is still a very small percentage. They have about 65 tons of gold in custody and expect that more could be put to productive purpose if the awareness and benefits of Gold loan is spread. Muthoot Smart Plus Gold Loan 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. Their efforts show the house-wives what the family‟s gold holdings can achieve for their husband‟s business. The group‟s recently-launched gold loans at an interest rate of 1% a month offered had been well received in the market, prompting even those who had not previously considered taking a gold loan to avail of the scheme. Muthoot said many also realized how gold loans could work out cheaper than personal loans and loans on credit card accounts. What is Gold Loan? To start with let us define the term gold loan. It is nothing but a loan which one can take from someone against gold. This gold can be in the form of bars or in the form of coins or in the form of jewelry. Just imagine a scenario where you have enough gold jewelry stored in your house and you are looking for some quick money. So, what can you do in that scenario? Will selling the gold off be a good idea? The answer is a big „no‟. In this scenario, one can go for gold loans. You can borrow some money from a person keeping the gold jewelry with him and when you have enough money in your own hand, you can take back the jewelry after paying back the loan to the person. This way, you will neither lose the jewelry nor be suffering from the problem of the need of instant money. Gold Loan Is For Whom The Kings or Beggars? We always have a perception that gold symbolizes prosperity and loan is for the poor. So, how can these two words „gold‟ and „loan‟ come side by side to form a phrase gold loan? If you think

you are someone who has no or little idea about the answer to the asked question, then you must read on this article to have a good idea about gold loan. Why to options for Gold Loan? Now that you know how to get a gold loan, you must spend some time knowing why it‟s a good bet to opt for gold loans. Firstly, gold loans are one of the most secured loans. Secondly, one can use the loan taken against gold to fulfill any purpose. So, he or she does not get constrained by the purpose of the loan in this case. As far as the interest rate is concerned, the banks are charging an interest of twelve and a half percent annually while the non-banking organizations are charging at a rate of around two percent monthly. These rates are at par with the rates involved with the other types of loans. So, gold loans are good in this aspect as well.

Gold Monetization- Are We Willing To Part With Our Gold?

Last week, Narendra Modi launched three ambitious schemes - Gold Monetization Scheme (GMS), Sovereign Gold Bonds Scheme and the Indian gold coin. Since the announcement of these schemes in the budget, there has been a lot of buzz around their success. After all this is not the first time a gold related scheme has been launched. Our fascination with gold goes way back into history. India has a rich tradition of gold consumption and production. Presently, India is ahead of China as world‟s largest consumer of gold in the world. Cherished as both an adornment and an investment, Indian households own approximately 22,000 tones of gold. According to the GMS scheme, investors can deposit physical gold with banks and earn interest on it. The interest can be earned in gold as well as cash terms. The minimum quantity of gold that a customer can bring is set at as low as 30 grams, encouraging even smaller investors.

Customer’s perception toward gold loans

Customer plays a crucial role in the success/failure of business. Customer perception and satisfaction towards a product produced by the company is an ultimate target of the companies in present days. Even if the product may be either a tangible (physical appearance) or an intangible (service oriented), the companies are concentrating to convince and satisfy the customers to develop their business with their products. In this research, the researcher is trying to evaluate the differences in the customer perception between private/public banks and Non Banking Financial Services (NBFCs). The primary data for this research has been taken from the geographical region of Khammam district and its nearby towns. 200 Gold Loan beneficiaries in an equal ratio of customers towards banks and NBFCs were taken.

CONSUMER ATTITUDE AND PERCEPTION TOWARDS GOLD LOAN

Gold Loan Market in India is well organized gold loan market has grown tremendously over a period of time, thanks to the changing consumer perception about gold loan, and rising loan requirements. A new trend of gold financing for purchasing has also been observed in the industry. The main objective of the study is that to study the demographic and socio-economic status of the gold loan borrowers in the study region and to measures the loan borrowers level of satisfaction towards jewel loans offered by Scheduled Commercial Banks in India.

Customer Attitude about gold loan

According to a recent estimate by the World Gold Council, there is around 18,000 tonnes of gold lying with individuals in India and as much as 65 per cent of India‟s gold lies with people in rural areas. Indian households have been buying gold for generations for socio-cultural, religious and economic reasons. Gold is a store of value and hedge against inflation. With gold prices zooming, borrowers have discovered that they can raise more money with the same collateral. With gold loans, small individual players have superseded those in the big cities to leverage their possession of gold jwellery to avail quick loans for businesses.

Gold loan market Survey

Gold loan is a simple modification of the age-old practice bymoney lenders and has been institutionalized by the bank snow. In this loan, one has to deposit the household gold in the form of jewellery with the bank or financing agency and get a loan up to 60 per cent of the gold deposited.

A Study on Perception of investors towards Gold as an investment

Since the beginning of civilization, gold has been one of the most sought after metals in the world. Because of its durability it has been used by nations as fiat currency. Nations may fall, paper money may lose its value but gold will always remain as something of value. But there are certain disadvantages in investing gold. As compared to other precious metals, gold has a low industrial demand. Largely investors only decide its demand and value. In the short run, gold is an excellent store-house of wealth as long term investment gold is not an ideal investment. This is because its return is easily outplaced by the equity market. Moreover investment in gold has no payout in terms of dividends. This study aims at collecting investor‟s response towards investment in gold. Seventy five respondents were interviewed through structured questions. Pros and cons of investing gold have been elicited. The author has highlighted the limitations in investing in gold. It is learned that gold import has eroded most of our foreign currency.so it will increase our current account deficit resulting in declining our rupee value against dollar.

SWOT Analysis for kotak Mahindra bank

Strength:

Good brand imageSWOT Analysis for kotak Mahindra bank Strength: Financially strong Stable and growing firm Weakness: Lacking extensive

Financially strongAnalysis for kotak Mahindra bank Strength: Good brand image Stable and growing firm Weakness: Lacking extensive

Stable and growing firmMahindra bank Strength: Good brand image Financially strong Weakness: Lacking extensive global services Opportunity:

Weakness:

Lacking extensive global servicesimage Financially strong Stable and growing firm Weakness: Opportunity: Diversifying portfolios for customers Good

Opportunity:

Diversifying portfolios for customersWeakness: Lacking extensive global services Opportunity: Good sales team Increase their services for customers New

Good sales teamservices Opportunity: Diversifying portfolios for customers Increase their services for customers New emerging markets

Increase their services for customersOpportunity: Diversifying portfolios for customers Good sales team New emerging markets Threats: Lack of public truss

New emerging marketsportfolios for customers Good sales team Increase their services for customers Threats: Lack of public truss

Threats:

for customers Good sales team Increase their services for customers New emerging markets Threats: Lack of

Lack of public truss

Research problem

Customer Perception about Gold Loan as Short Term of Finance

Literature Review

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

By Jasvindarjit Kaur (2016) India is known to be the largest importer of gold in the world. Indians have strong fascination and high sentiments to possess the gold. Resultant, the gold loan market also shown vigorous growth in the recent years. Gold loan NBFCs has created a remarkable position for themselves in the process of economic development and financial inclusion by monetizing the idle gold stock of the country on one hand. On the other hand gold loan NBFCs meet the consumption and financing needs especially of the rural and under banked populaces. But on the same time the robust growth of these gold loan NBFCs and their aggressiveness in tapping the potential gold loan market necessitated that their operations should be closely monitored. So, the present study is an endeavor to analyze and compare the financial performance of the two giant gold loan NBFCs namely Manappuram Finance Ltd. and Muthoot Finance Ltd. on the basis of CAMEL model. Overall, the study resulted that both the gold loan NBFCs perform on the same lines on the parameters of CAMEL model. But Manappuram Finance Ltd. is better performer in context of capital adequacy parameter while Muthoot Finance Ltd. is gaining lead in context of management efficiency.

By Priya Narayan , Balagopal Gopalkrishnan , Arvind Sahay(2017) India is the second largest consumer of gold in the world and gold is a major contributor to the current account deficit. Much of the gold goes out of circulation and is not available to support economic activity. To encourage consumers to bring the gold back into circulation, the government of India instituted the Gold Monetization Policy in 2015. This research views the Gold Monetization Policy in India through the lens of consumer associations with gold, as well as the banker and refiner perspectives on implementation challenges. The success of this policy is important for the country to better manage its current account balance, in a milieu where gold consumption holds sociocultural importance. The research uses an empirical approach to analyse how various stakeholders have approached the policy, and provides suggestions to increase uptake of the policy. It employs a mixed method approach to understand the motivations and barriers faced by various stakeholders in the gold ecosystem.

Research Objective

Primary Objective: Primary objective of my study is to understand the perception of consumers‟ about gold loan as a short term source of finance.

Secondary Objectives:

To understand consumers‟ awareness about different short term sources of finance finance

To understand thinking of consumers about gold loan as an option of short term source of finance.awareness about different short term sources of finance To understand the impact of culture and education

To understand the impact of culture and education on preference of gold loan as a short term source of finance.sources of finance To understand thinking of consumers about gold loan as an option of short

Hypothesis Statement

H 0 : There is no impact of culture on consumers‟ preference about gold loan as a short term source of finance

H 1 : There is impact of culture on consumers‟ preference about gold loan as a short term source of finance

H 0 : There is no impact of Education on consumers‟ preference about gold loan as a short term source of finance

H 1 : There is impact of Education on consumers‟ preference about gold loan as a short term source of finance

Research methodology

Type of data

Primary

Research design

Descriptive

Population (type & size)

Population of Bhavnagar city

Sampling method

Non probability convenience sampling

Sample size

377

Data collection method

Survey

Data collection instrument

Questionnaire

Data analysis tools and techniques

Tabulation , graphs and chi-square technique for hypothesis testing

Sample Size

What margin of error can you accept? 5   5% is a common choice  
What margin of error can you accept? 5   5% is a common choice  

What margin of error can you accept?

5
5
 

5% is a common choice

 

%

 

What confidence level do you need?

95
95

%

Typical choices are 90%, 95%, or 99%

 

What is the population size?

20000
20000

If you don't know, use 20000

 
 

What is the response distribution?

50
50

%

Leave this as 50%

 

377

Your recommended sample size is

 

Alternate scenarios

 

With a sample size of

100
100
200
200
300
300

With a confidence level of

90
90
95
95
99
99

Your margin of error would be

9.78

6.89

5.62

Your sample size would

267

377

643

%

%

%

need to be

Equation for calculating Sample size:

In terms of the numbers you selected above, the sample size

n

and margin of error

E

   

x

=

Z( c / 100 ) 2 r(100-r)

 
 

n

=

N x / ((N-1)E 2 + x)

 
 

E

=

Sqrt[ (N - n)x / n(N-1) ]

 

is the population size,

r

is the fraction of responses that you are interested in, and

where N is the
where
N
is the

for the confidence level

c.

 
are given by
are given by
Z(c/100)
Z(c/100)

Data analysis and interpretation

1. How many sources of finance you aware of.

Particulars

Responds

Personal loan

145

Loan against property

60

Loan against security

42

Loan against insurance policy

15

Loan against fixed deposit

26

Gold loan

80

Other

8

2.12 21.22 38.46 6.89 11.14 15.91 3.97
2.12
21.22
38.46
6.89
11.14 15.91
3.97

Personal Loan2.12 21.22 38.46 6.89 11.14 15.91 3.97 loan against property loan against security loan against insurance

loan against property2.12 21.22 38.46 6.89 11.14 15.91 3.97 Personal Loan loan against security loan against insurance policy

loan against security6.89 11.14 15.91 3.97 Personal Loan loan against property loan against insurance policy loan against fixed

loan against insurance policy11.14 15.91 3.97 Personal Loan loan against property loan against security loan against fixed deposit gold

loan against fixed deposit11.14 15.91 3.97 Personal Loan loan against property loan against security loan against insurance policy gold

gold loanPersonal Loan loan against property loan against security loan against insurance policy loan against fixed deposit

othersLoan loan against property loan against security loan against insurance policy loan against fixed deposit gold

Interpretation:

From the above chart we can conclude that 38.46% responds are in personal loan, 11.14%are on loan against security, 3.97% are responds are loan against insurance policy, 15.91% responds are for the loan against property, while 6.89% are responds on fixed deposit and 21.22% and 2.12 % are for gold loan and other loan respectively.

2. Have you ever used any one of the below given source of finance

Particulars

Responds

Personal loan

92

Loan against property

40

Loan against security

18

Loan against insurance policy

45

Loan against fixed deposit

23

Gold loan

147

other

12

3.18 24.4 38.99 10.61 6.1 11.94 4.78
3.18
24.4
38.99
10.61
6.1 11.94
4.78

Personal Loan3.18 24.4 38.99 10.61 6.1 11.94 4.78 Loan against property lLoan against Security Loan against insurance

Loan against property3.18 24.4 38.99 10.61 6.1 11.94 4.78 Personal Loan lLoan against Security Loan against insurance policy

lLoan against Security10.61 6.1 11.94 4.78 Personal Loan Loan against property Loan against insurance policy Loan against fixed

Loan against insurance policy6.1 11.94 4.78 Personal Loan Loan against property lLoan against Security Loan against fixed deposit Gold

Loan against fixed deposit6.1 11.94 4.78 Personal Loan Loan against property lLoan against Security Loan against insurance policy Gold

Gold loanPersonal Loan Loan against property lLoan against Security Loan against insurance policy Loan against fixed deposit

othersLoan Loan against property lLoan against Security Loan against insurance policy Loan against fixed deposit Gold

Interpretation:

are for the loan against property, while 6.1% are responds on fixed deposit and 38.99% and 3.18 % are for From the above chart we can conclude that 24.4% responds are in

personal loan, 4.78% are on loan against security, 11.94% are responds are loan against insurance policy, 10.61% responds gold loan and other loan respectively.

3. Rate the following sources of finance for short term on the basis of preferability

Particulars

Responds

Personal loan

126

Loan against property

12

Loan against security

27

Loan against insurance policy

9

Loan against fixed deposit

78

Gold loan

114

other

11

2.92 33.42 30.24 3.18 20.69 7.16 2.39
2.92
33.42
30.24
3.18
20.69
7.16
2.39

personal loan2.92 33.42 30.24 3.18 20.69 7.16 2.39 Loan against property Loan against security Loan against insurance

Loan against property2.92 33.42 30.24 3.18 20.69 7.16 2.39 personal loan Loan against security Loan against insurance policy

Loan against security3.18 20.69 7.16 2.39 personal loan Loan against property Loan against insurance policy Loan against Fixed

Loan against insurance policy20.69 7.16 2.39 personal loan Loan against property Loan against security Loan against Fixed Deposit Gold

Loan against Fixed Deposit20.69 7.16 2.39 personal loan Loan against property Loan against security Loan against insurance policy Gold

Gold loanpersonal loan Loan against property Loan against security Loan against insurance policy Loan against Fixed Deposit

othersloan Loan against property Loan against security Loan against insurance policy Loan against Fixed Deposit Gold

Interpretation:

From the above chart we can conclude that 33.42% responds are in personal loan, 7.16% are on loan against security, 2.39% are responds are loan against insurance policy, 3.18% responds are for the loan against property, while 20.69% are responds on fixed deposit and 30.24% and 2.92 % are for gold loan and other loan respectively.

4. I regularly invest in gold.

Particulars

Responds

Strongly agree

168

Agree

65

Can’t say

30

Disagree

85

Strongly disagree

29

7.69 22.55 44.56 7.96 17.24
7.69
22.55
44.56
7.96
17.24

Strongly agree7.69 22.55 44.56 7.96 17.24 Agree Can't say Disagree Strongly Disagree

Agree7.69 22.55 44.56 7.96 17.24 Strongly agree Can't say Disagree Strongly Disagree

Can't say7.69 22.55 44.56 7.96 17.24 Strongly agree Agree Disagree Strongly Disagree

Disagree7.69 22.55 44.56 7.96 17.24 Strongly agree Agree Can't say Strongly Disagree

Strongly Disagree7.69 22.55 44.56 7.96 17.24 Strongly agree Agree Can't say Disagree

7.69 22.55 44.56 7.96 17.24 Strongly agree Agree Can't say Disagree Strongly Disagree

Interpretation:

From the above chart we can see that 44.56% are strongly agree with this statement , while 17.24% responds are agree and 7.96% , 22.55% , 7.69% responds are can‟t say , disagree and strongly Disagree respectively

5. Whenever I have access money I Purchase Gold or Gold ornaments.

Particulars

Responds

Strongly agree

168

Agree

40

Can’t say

54

Disagree

78

Strongly disagree

37

9.81 20.68 44.56 14.32 10.61
9.81
20.68
44.56
14.32
10.61

Strongly Agree9.81 20.68 44.56 14.32 10.61 Agreee Can't say Disagree Strongly disagree

Agreee9.81 20.68 44.56 14.32 10.61 Strongly Agree Can't say Disagree Strongly disagree

Can't say9.81 20.68 44.56 14.32 10.61 Strongly Agree Agreee Disagree Strongly disagree

Disagree9.81 20.68 44.56 14.32 10.61 Strongly Agree Agreee Can't say Strongly disagree

Strongly disagree9.81 20.68 44.56 14.32 10.61 Strongly Agree Agreee Can't say Disagree

Interpretation:

From the above chart we can see that 44.56% are strongly agree with this statement , while 10.61% responds are agree and 14.32% , 20.68% , 9.81% responds are can‟t say , disagree and strongly Disagree respectively.

6. Nowadays the Loan against gold is becoming one of the popular sources for short term and urgent financial need.

Particulars

Responds

Strongly agree

204

Agree

64

Can’t say

17

Disagree

62

Strongly disagree

30

7.96 16.45 4.51 54.11 16.97
7.96
16.45
4.51
54.11
16.97

Strongly Agree7.96 16.45 4.51 54.11 16.97 Agree can't Say Disagree Strongly Disagree

Agree7.96 16.45 4.51 54.11 16.97 Strongly Agree can't Say Disagree Strongly Disagree

can't Say7.96 16.45 4.51 54.11 16.97 Strongly Agree Agree Disagree Strongly Disagree

Disagree7.96 16.45 4.51 54.11 16.97 Strongly Agree Agree can't Say Strongly Disagree

Strongly Disagree7.96 16.45 4.51 54.11 16.97 Strongly Agree Agree can't Say Disagree

Interpretation:

From the above chart we can see that 54.11% are strongly agree with this statement , while 16.97% responds are agree and 4.51% , 16.45% , 7.96% responds are can‟t say , disagree and strongly Disagree respectively

7. Banks prefer more secured loans against unsecured loans because of increasing NPA issues.

Particulars

Responds

Strongly agree

64

Agree

73

Can’t say

94

Disagree

104

Strongly disagree

42

11.14 16.97 27.6 19.36 24.93
11.14
16.97
27.6
19.36
24.93

Strongly agree11.14 16.97 27.6 19.36 24.93 Agree Can't Say Disagree Strongly Disagree

Agree11.14 16.97 27.6 19.36 24.93 Strongly agree Can't Say Disagree Strongly Disagree

Can't Say11.14 16.97 27.6 19.36 24.93 Strongly agree Agree Disagree Strongly Disagree

Disagree11.14 16.97 27.6 19.36 24.93 Strongly agree Agree Can't Say Strongly Disagree

Strongly Disagree11.14 16.97 27.6 19.36 24.93 Strongly agree Agree Can't Say Disagree

Interpretation:

From the above chart we can see that 16.97% are strongly agree with this statement , while 19.36% responds are agree and 24.93% , 27.6% , 11.14% responds are can‟t say , disagree and strongly Disagree respectively

8. Banks’ policy of focusing more on secured loans has generated more popularity to gold loan and other secured loans like loan against property etc.,

Particulars

Responds

Strongly agree

40

Agree

73

Can’t say

106

Disagree

78

Strongly disagree

80

10.61 21.22 19.36 20.7 28.11
10.61
21.22
19.36
20.7
28.11

Strongly Agree10.61 21.22 19.36 20.7 28.11 Agree Can't Say Disagree Strongly Disagree

Agree10.61 21.22 19.36 20.7 28.11 Strongly Agree Can't Say Disagree Strongly Disagree

Can't Say10.61 21.22 19.36 20.7 28.11 Strongly Agree Agree Disagree Strongly Disagree

Disagree10.61 21.22 19.36 20.7 28.11 Strongly Agree Agree Can't Say Strongly Disagree

Strongly Disagree10.61 21.22 19.36 20.7 28.11 Strongly Agree Agree Can't Say Disagree

Interpretation:

From the above chart we can see that 10.61% are strongly agree with this statement , while 19.36% responds are agree and 28.11% , 20.7% , 21.22% responds are can‟t say , disagree and strongly Disagree respectively

9. There is nothing bad in taking loan against the gold.

Particulars

Responds

Strongly agree

214

Agree

50

Can’t say

0

Disagree

73

Strongly disagree

40

10.6 19.3 56.8 0 13.3
10.6
19.3
56.8
0
13.3

Strongly Agree10.6 19.3 56.8 0 13.3 Agree Can't say Disagree Strongly disagree

Agree10.6 19.3 56.8 0 13.3 Strongly Agree Can't say Disagree Strongly disagree

Can't say10.6 19.3 56.8 0 13.3 Strongly Agree Agree Disagree Strongly disagree

Disagree10.6 19.3 56.8 0 13.3 Strongly Agree Agree Can't say Strongly disagree

Strongly disagree10.6 19.3 56.8 0 13.3 Strongly Agree Agree Can't say Disagree

Interpretation:

From the above chart we can see that 56.8% are strongly agree with this statement , while 13.3% responds are agree and 0 , 19.3% , 10.6% responds are can‟t say , disagree and strongly Disagree respectively

10. Gold loan is very good and convenient option for short term need of money but it is treated badly in our culture.

Particulars

Responds

Strongly agree

217

Agree

30

Can’t say

2

Disagree

30

Strongly disagree

98

25.99 7.95 57.6 0.51 7.95
25.99
7.95
57.6
0.51 7.95

Strongly agreee25.99 7.95 57.6 0.51 7.95 Agree Can't Say Disagree Strongly Disagree

Agree25.99 7.95 57.6 0.51 7.95 Strongly agreee Can't Say Disagree Strongly Disagree

Can't Say25.99 7.95 57.6 0.51 7.95 Strongly agreee Agree Disagree Strongly Disagree

Disagree25.99 7.95 57.6 0.51 7.95 Strongly agreee Agree Can't Say Strongly Disagree

Strongly Disagree25.99 7.95 57.6 0.51 7.95 Strongly agreee Agree Can't Say Disagree

Interpretation:

From the above chart we can see that 57.6% are strongly agree with this statement , while 7.95% responds are agree and 0.51% , 7.95% , 25.99% responds are can‟t say , disagree and strongly Disagree respectively

11.

Taking Gold loan is socially not accepted option in our society.

Particulars

Responds

Strongly agree

194

Agree

60

Can’t say

15

Disagree

40

Strongly disagree

68

18.04 10.6 51.45 3.97 15.92
18.04
10.6
51.45
3.97
15.92

Strongly Agree18.04 10.6 51.45 3.97 15.92 Agree Can't Say Disagree Strongly Disagree

Agree18.04 10.6 51.45 3.97 15.92 Strongly Agree Can't Say Disagree Strongly Disagree

Can't Say18.04 10.6 51.45 3.97 15.92 Strongly Agree Agree Disagree Strongly Disagree

Disagree18.04 10.6 51.45 3.97 15.92 Strongly Agree Agree Can't Say Strongly Disagree

Strongly Disagree18.04 10.6 51.45 3.97 15.92 Strongly Agree Agree Can't Say Disagree

Interpretation:

From the above chart we can see that 51.45% are strongly agree with this statement , while 15.92% responds are agree and 3.97% , 18.04% , 10.6% responds are can‟t say , disagree and strongly Disagree respectively

12.

I prefer Gold loan as last option for generating finance.

Particulars

Responds

Strongly agree

32

Agree

104

Can’t say

33

Disagree

108

Strongly disagree

100

8.49 26.53 27.58 28.64 8.75
8.49
26.53
27.58
28.64 8.75

Strongly Agree8.49 26.53 27.58 28.64 8.75 Agree Can't Say

Agree8.49 26.53 27.58 28.64 8.75 Strongly Agree Can't Say

Can't Say8.49 26.53 27.58 28.64 8.75 Strongly Agree Agree

Interpretation:

From the above chart we can see that 8.49% are strongly agree with this statement , while 25.58% responds are agree and 8.75% , 28.64% , 26.53% responds are can‟t say , disagree and strongly Disagree respectively

13.

I prefer Gold loan when any other source is not possible.

Particulars

Responds

Strongly agree

78

Agree

67

Can’t say

94

Disagree

62

Strongly disagree

76

20.16 20.68 16.45 17.77 24.94
20.16
20.68
16.45
17.77
24.94

Strongly Agree20.16 20.68 16.45 17.77 24.94 Agree Can't Say Disagree Strongly Disagree

Agree20.16 20.68 16.45 17.77 24.94 Strongly Agree Can't Say Disagree Strongly Disagree

Can't Say20.16 20.68 16.45 17.77 24.94 Strongly Agree Agree Disagree Strongly Disagree

Disagree20.16 20.68 16.45 17.77 24.94 Strongly Agree Agree Can't Say Strongly Disagree

Strongly Disagree20.16 20.68 16.45 17.77 24.94 Strongly Agree Agree Can't Say Disagree

Interpretation:

From the above chart we can see that 20.68% are strongly agree with this statement , while 17.77% responds are agree and 24.94% , 16.45% , 20.16% responds are can‟t say , disagree and strongly Disagree respectively

14.

Taking Gold loan is sign of insolvency.

Particulars

Responds

Strongly agree

37

Agree

25

Can’t say

65

Disagree

34

Strongly disagree

216

9.81 6.63 17.24 57.3 9.01
9.81
6.63
17.24
57.3
9.01

Strongly Agree9.81 6.63 17.24 57.3 9.01 Agree Can't Say Disagree Sstrongly Disagree

Agree9.81 6.63 17.24 57.3 9.01 Strongly Agree Can't Say Disagree Sstrongly Disagree

Can't Say9.81 6.63 17.24 57.3 9.01 Strongly Agree Agree Disagree Sstrongly Disagree

Disagree9.81 6.63 17.24 57.3 9.01 Strongly Agree Agree Can't Say Sstrongly Disagree

Sstrongly Disagree9.81 6.63 17.24 57.3 9.01 Strongly Agree Agree Can't Say Disagree

Interpretation:

From the above chart we can see that 9.81% are strongly agree with this statement , while 6.63% responds are agree and 17.24% , 9.01% , 57.3% responds are can‟t say , disagree and strongly Disagree respectively

15.

Gold loan is very easy and convenient option for short term Finance but not popular because our culture treats it as bad.

Particulars

Responds

Strongly agree

142

Agree

74

Can’t say

23

Disagree

98

Strongly disagree

40

10.61 37.6 25.99 6.1 19.7
10.61
37.6
25.99
6.1
19.7

Strongly Agree10.61 37.6 25.99 6.1 19.7 Agree Can't Say Disagree Strongly Disagree

Agree10.61 37.6 25.99 6.1 19.7 Strongly Agree Can't Say Disagree Strongly Disagree

Can't Say10.61 37.6 25.99 6.1 19.7 Strongly Agree Agree Disagree Strongly Disagree

Disagree10.61 37.6 25.99 6.1 19.7 Strongly Agree Agree Can't Say Strongly Disagree

Strongly Disagree10.61 37.6 25.99 6.1 19.7 Strongly Agree Agree Can't Say Disagree

10.61 37.6 25.99 6.1 19.7 Strongly Agree Agree Can't Say Disagree Strongly Disagree

Interpretation:

From the above chart we can see that 37.6% are strongly agree with this statement , while 19.7% responds are agree and 6.1% , 25.99% , 10.61% responds are can‟t say , disagree and strongly Disagree respectively

Hypothesis Testing

Where,

Chi-Square Test =

Where, Chi-Square Test = (F0 – Fe) 2 Fe F 0 = Observed frequency F e

(F0 Fe) 2

Fe

F 0 = Observed frequency

F e = Expected frequency

H 0 : There is no impact of culture on consumers‟ preference about gold loan as a short term source of finance

H 1 : There is impact of culture on consumers‟ preference about gold loan as a short term source of finance

Response

positive impact

Negative impact

Total

Strongly Agree

194

142

336

Agree

60

74

134

Disagree

68

40

108

Strongly Disagree

40

98

138

Can‟t Say

15

23

38

Total

377

377

754

X 2 Table for hypothesis testing

Observed

Expected

F0 Fe

(F0 Fe) 2

(F0 Fe) 2 Fe

frequency

frequency

194

168

26

676

4.0238

60

67

-7

49

0.7205

68

54

14

256

4.7407

40

69

-29

841

12.1884

15

19

-4

16

0.8421

142

168

-26

676

4.0238

74

67

7

49

0.7205

40

54

-14

256

4.7407

98

69

29

676

12.1884

23

19

4

16

0.8421

TOTAL

     

45.031

(R-1)(C-1)

= (5-1) (2-1)

= 4

Significance level= 0.05 (5%) Calculated value= 45.031

Tabulated value= 9.4877 Calculated value (45.031) > tabulated value (9.4877) So, hypothesis is rejected

H 0 : There is no impact of Education on consumers‟ preference about gold loan as a short term source of finance

H 1 : There is impact of Education on consumers‟ preference about gold loan as a short term source of finance

Education

Yes

No

Total

Below Graduate

32

108

140

Above Graduate

104

100

204

Total

136

208

344

Observed

Expected

F0 Fe

(F0 Fe) 2

(F0 Fe) 2 Fe

frequency

frequency

32

70

-38

1444

20.6285

104

102

2

4

0.0392

108

70

38

1444

20.6285

100

102

-2

4

0.0392

TOTAL

     

41.3354

(R-1)(C-1)

= (2-1) (2-1)

= 1

Significance level= 0.05 (5%) Calculated value= 41.3354

Tabulated value= 3.8415 Calculated value (41.3354) > tabulated value (3.8415) So, hypothesis is rejected

Research Findings

We have to change our perception through education.Research Findings It is all about human perception. Taking gold loan is bad in our society

It is all about human perception.Findings We have to change our perception through education. Taking gold loan is bad in our

Taking gold loan is bad in our society that will be change.Research Findings We have to change our perception through education. It is all about human perception.

Recommendation:

The main aim of the research was to help the organization the increase productivity and efficiency of gold loan. So there are some Recommendation that can be help for the employee.

Limitation of the study:

The main factor of study that our culture and societies perception are bad to take the gold loanLimitation of the study: Perception are also depends on the education because of many times it

Perception are also depends on the education because of many times it is good source of finance.of the study: The main factor of study that our culture and societies perception are bad

Conclusion

I have completed my report as a researcher. I conclude that kotak Mahindra bank is good bank

ever. It always tries encouraging their customer for the taking gold loan.

I have increased my knowledge to a great experience. it is my pleasure that it was a very well opportunity for me to do research on this great bank.

BIBLIOGRAPHY:

Kothari C.R,” Research Methodology,” Second edition , New Age International Pvt. Ltd., New Delhi.

A Questionnaire on

Consumer’s Perception about Gold Loan as a short term source of Finance

1. How many sources of finance you aware of

Personal Loan

against

Loan

Fixed

Loan against Property

Deposit

Loan against Security

Gold Loan

Loan against Insurance

Others,

Policy

specify

2. Have you ever used any one of the below given source of finance

Personal Loan

against

Loan

Fixed

Loan against Property

Loan against Security

Loan against Insurance Policy

Deposit

Gold Loan

Others,

specify

3. Rate the following sources of finance for short term on the basis of preferability

Personal Loan

Loan against Property

Loan against Security

Loan against Insurance Policy

4. I regularly invest in gold

Strongly agree

Agree

Can‟t say

against

Loan

Deposit

Gold Loan

Others,

specify

Fixed

Disagree

Strongly disagree

5. Whenever I have access money I Purchase Gold or Gold ornaments.

Strongly agree

Agree

Can‟t say

Disagree

Strongly disagree

6.

Nowadays the Loan against gold is becoming one of the popular sources for short term and urgent financial need.

Strongly agree

Agree

Can‟t say

Disagree

Strongly disagree

7. Banks prefer more secured loans against unsecured loans because of increasing NPA issues.

Strongly agree

Agree

Can‟t say

Disagree

Strongly disagree

8. Banks‟ policy of focusing more on secured loans has generated more popularity to gold loan and other secured loans like loan against property etc.,

Strongly agree

Agree

Can‟t say

Disagree

Strongly disagree

9. There is nothing bad in taking loan against the gold

Strongly agree

Agree

Can‟t say

Disagree

Strongly disagree

10. Gold loan is very good and convenient option for short term need of money but it is treated badly in our culture.

Strongly agree

Agree

Can‟t say

Disagree

Strongly disagree

11. Taking Gold loan is socially not accepted option in our society.

Strongly agree

Agree

Can‟t say

Disagree

Strongly disagree

12. I prefer Gold loan as last option for generating finance

Strongly agree

Agree

Can‟t say

Disagree

Strongly disagree

13.

I prefer Gold loan when any other source is not possible

Strongly agree

Strongly disagree

Agree

Can‟t say

Disagree

14. Taking Gold loan is sign of insolvency.

Strongly agree

Agree

Can‟t say

Disagree

Strongly disagree

15. Gold loan is very easy and convenient option for short term finance but not popular because our culture treats it as bad.

Strongly agree

Agree

Can‟t say

Disagree

Demographic Information:

Name:€ Can‟t say € Disagree Demographic Information: Age: Occupation: Education: Contact € Strongly disagree 80

Age:€ Can‟t say € Disagree Demographic Information: Name: Occupation: Education: Contact € Strongly disagree 80

Occupation:€ Agree € Can‟t say € Disagree Demographic Information: Name: Age: Education: Contact € Strongly disagree

Education:Agree € Can‟t say € Disagree Demographic Information: Name: Age: Occupation: Contact € Strongly disagree 80

ContactAgree € Can‟t say € Disagree Demographic Information: Name: Age: Occupation: Education: € Strongly disagree 80

Strongly disagree