A

PROJECT REPORT
ON

BULLION SERVICES & GOLD LOAN SERVICES OF

MUTHOOT FINANCE LTD.

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF THE DEGREE OF EXECUTIVE MASTER’S IN

BUSINESS ADMINISTRATION (E-MBA)

SUBMITTED BY: GUIDED BY:

SONALI MR. C B MISHRA
MBA- 4TH SEMESTER

BHARATI VIDYAPEETH DEEMED UNIVERSITY

INSTITUTE OF MANAGEMENT & RESEARCH,
NEW DELHI
 An ISO 9001:2010 Certified Institute

NAAC Accredited Grade “A” University

 CERITIFICATE

This is to certify that Sonali d/o Dev Dutt pursuing E-MBA from Bharati Vidyapeeth Deemed University
School of distance education, New Delhi has successfully completed Project Report in our organization on
the topic titled, BULLION SERVICES & GOLD LOAN SERVICES OF MUTHOOT FINANCE LTD. from August
2018 to September 2018. During her Internship project tenure in the organization, we found her hard
working, sincere and diligent person and her behavior and conduct was good during the project. We wish
her all the best for her future endeavors.

Project supervisor
 DECLARATION

I hereby declare that the project report, entitled “A STUDY ON BULLION SERVICES
& GOLD LOAN SERVICES OF MUTHOOT FINANCE LTD.” is base on my original study
and has not been submitted earlier for any degree or diploma of any
institution/university.

Sonali

Place:………………

Date:……………….
 ACKNOWLEDGEMENT

Life of any human being is full of inter-action no one is completely self-sufficient by himself. In our daily
life we go ahead by hoping from each other. Before I get into thick of things I would like to add a few
heartfelt words for the people who were part of this project in numerous ways; people who gave
unending support right from the stage where the project idea was conceived.

I would like to thank respected Dr. A R Deshmukh, Director, Bharati Vidyapeeth Institute of
Management and Research for providing students with a platform where we can relate class room
teachings with industry practices.

I would like to thank to Mr. C B mishra my faculty guide at BVIMR, New Delhi. My deep
appreciation for the efforts, helpful hints and cooperation is reserved for him who ensured that I
move on the right lines. He has been always a constant source of inspiration to me.

Last but not least I am also very thankful to all my faculties and friends, who helped me time to time
regarding books and problem solving.

(SONALI)
 PREFACE

Bullion refers to precious metals in bulk form which are regularly traded in commodity markets. The
value of bullion is typically determined by the value of its precious metals content, which is defined by its
purity and mass. Bullion coins describe contemporary precious metal coins minted by official agencies for
investment purpose in unlimited numbers. Historically, most of the currency was in the form of bullion
coins, silver and gold being the most common metals. Some bullion coins have been used as currency
throughout 20th century.

Gold has always been a valued commodity. Particularly in India, it is considered as auspicious, and used in
the form of jewellery, coins and other assets. Due to their high value, people have been taking loans
against gold ornaments for centuries and purchasing bullion coins for investment and gifting purpose.

Till about a decade ago, most of such lending activities used to take place in the unorganized sector
through pawnbrokers and money lenders.

However, the scenario has changed with the entry of organized players. According to our latest report, in
the past few years, banks and non-banking finance companies (NBFCs) have made a significant presence
in the gold loan market. It is anticipated that the organized gold loan market will grow at a compound
annual rate of 25.5% during FY 2012 to FY 2018.

My research report, finds that the organized gold loan market and bullion market have grown
tremendously over a period of time, thanks to the changing borrower’s perception about gold loan, and
rising loan requirements.

A new trend of gold financing for purchasing has also been observed in the industry. I found that the
borrower’s outlook is changing as people are increasingly taking gold loans to meet their various short-
term needs and whatever is the market fluctuation rate, people are getting attracted towards the bullion
for investment purpose. It has been observed that the organized players are exploring the potency, and
expanding their networks into North, East and West regions. My report studies bullion services and gold
loan services of Muthoot Finance Ltd in East Delhi.
 TABLE OF CONTENTS

CHAPTER NO PARTICULARS PAGE NO

Chapter 1 Introduction

Chapter 2 Research Methodology

Chapter 3 Conceptual Discussion

Chapter 4 Data Analysis

Chapter 5 Findings & Conclusions

Chapter 6 Suggestions

Bibliography

Annexure
 CHAPTER-1

INTRODUCTION
1.1 ABOUT MUTHOOT FINANCE LIMITED

Muthoot Finance Ltd. is the largest gold financing company in India in terms of loan portfolio, according
to the 2010 update of the IMaCS Research & Analytics Industry Reports, Gold Loans Market in India, 2009
("IMaCS Industry Report, (2010 Update)"). Muthoot Finance Ltd. provide personal and business loans
secured by gold jewellery, or Gold Loans, primarily to the individuals who possess gold jewellery but
could not access formal credit within a reasonable time, or to whom credit may not be available at all, to
meet unanticipated or other short-term liquidity requirements. ...

CORPORATE ETHOS

Being a prominent venture of the Muthoot Group, Muthoot Finance Ltd. carefully and passionately
imbibes the values of the former. Muthoot Finance Ltd. takes pride in Muthoot Finance Ltd. strong
foundation which is deeply rooted in the following pillars:

Ethics: Muthoot Finance Ltd. main aim is to put the needs of the customer first before anything else.

Values: Accountability for all Muthoot Finance Ltd. operations & services. Paying heed towards the
society makes them a socially responsible and intelligent citizen. Muthoot Finance Ltd. Empire has grown
leaps and bounds on the basis of these values. The times may change, but Muthoot Finance Ltd. values
will remain unchanged.

Reliability: With an unblemished track record throughout the markets Muthoot Finance Ltd. Serves
across national as well as global boundaries, Muthoot Finance values its commitment to customer-
service.

Dependability: Muthoot Finance Ltd. does not judge themselves by the profit Muthoot Finance Ltd. make
but by the trust and confidence that people have shown in them for the past 127 years.

Trustworthiness: Muthoot Finance Ltd. pledge loyalty in Muthoot Finance Ltd. operations, fairness in
Muthoot Finance Ltd. dealings and transparency in Muthoot Finance Ltd. practices. At Muthoot Finance
Ltd., Muthoot Finance Ltd. they embrace policies and practices that fortify trust.

Integrity: The value is innate to a corruption-free atmosphere and an open work culture. Muthoot
Finance Ltd. at Muthoot Finance Ltd. therefore cultivates transparency as a work ethic.
Good Will: Muthoot Finance serves more than 6 million customers across the country. Muthoot Finance
Ltd. adds over 80000 customers each day to Muthoot Finance Ltd. customer base. With an unmatched
goodwill, the company shoulders the responsibility of creating a deserving brand image.

SERVICES

Gold Loan

The Muthoot Gold loan portfolio is the largest in India as Muthoot Finance Ltd.ll is all around the globe. It
is humbling to know that more than 80,000 people avail Muthoot Finance Ltd. trusted services on a daily
basis. For the past 127 years, the company has been serving the interests of customers as its top most
priority.

Being India’s largest gold loan service provider, safeguarding the deposits of gold ornaments is Muthoot
Finance Ltd. primary concern. A flexible interest rate policy is what helps us cope with volatile markets.
Muthoot Finance Ltd. gold loan range starts from Rs. 1,500 and stretches up to Rs. 1 Crore. Serving over
80,000 customers daily, Muthoot Finance Ltd. assist almost every section of the society in obtaining quick
cash for leveraging their dreams.

SCHEMES SLAB PERIODS INTEREST RATES

TrueValue Loan 3 / 6 / 12 months 15% / 18% / 21% p.a.

Xpress Loan 3 / 6 / 12 months 20% / 21% / 24% p.a.

Super Loan 3 / 6 / 12 months 22% / 23% / 24% p.a.

Gold Loan Installment 6 / 9 / 12 / 18 / 21 / 24 / 15 14% / 14.5% / 15% / 16.75% /

Scheme months 17% / 17.25% / 17.5% p.a

Gold and Silver Coins.

Muthoot Finance Ltd. is a trusted name when it comes to providing financial services in the shortest
possible span of time. Muthoot Finance Ltd. at Muthoot Finance helps you invest in the most powerful
asset, which is gold. It is also a leading Silver and Gold Coins provider in India. Above all, Muthoot Finance
Ltd. promises quality.

MPower Card

Muthoot Money is ticket to heavy discounts, rebates and interesting services that add value to
customer’s membership, MPower Card is a CRM service provided by Muthoot Finance.

Money Transfer

Muthoot Money Transfer makes it possible for you to RECEIVE AND SEND money to the dear ones with a
blink of an eye. With 2 million transfers being executed annually, the company is recognized as the
largest single payout centre in India. Real-time transfer allows quicker delivery of the amount, which
takes no more than 10 minutes. Muthoot Finance Ltd. is the only single money transfer payout agent
servicing all transfer services at Muthoot Finance Ltd. branches in India.

Foreign exchange

With simplified foreign exchange services, you have the power to travel anywhere in the world with little
to worry about currency availability. Muthoot Exchange brings you hassle-free currency exchange
services that are provided at competitive rates. Since Muthoot Finance Ltd. deal in all of the major
currencies like Euro, US Dollar, British Pound and Japanese Yen, Muthoot Finance Ltd. exchange services
are useful for a wide array of avid travelers.

Travelsmart

An International Air Transport Association (IATA) accredited agency, Muthoot Travelsmart took no time
to become a leading travel services provider. Muthoot Travel Smart was designed to be more than just a
travel service. You can also avail Muthoot Finance Ltd. flexible and customized travel insurance and
foreign exchange (two additional prominent services under the Muthoot Brand umbrella) alongwith
Muthoot Finance Ltd. travel packages and tour arrangements. All these services are aimed at aiding and
assisting the customers travel, be it for professional or personal purpose.
Health management services

Managing Health is a discipline and principle at Muthoot Finance Ltd. They have classified health
management into a few step process comprising risk evaluation, client evaluation, value analysis, and
consultancy. With the objective of providing maximum benefit solutions to Muthoot Finance Ltd.
customers Muthoot Finance Ltd. focus on analysing markets, client evaluation, option evaluation and
expert consultation. Muthoot Finance Ltd. offers a series of plans that help in securing important aspects
of life such as the future of customer’s family and education of kids.
1.2 INTRODUCTION TO THE BULLION MARKET

The Market where precious metals are traded is known as bullion market. The precious metals are Gold,
Silver, and Platinum.

It is a forum through which buyers and sellers trade pure gold and silver. The bullion market is open 24
hours a day and is primarily an over-the-counter market, with the most trading based in London. The
bullion market has a high turnover rate and most transactions are conducted electronically or by phone.
Gold and silver derive their value from their industrial and commercial uses; they can also act as a hedge
against inflation.

1.2.1 SIZE OF THE INDIAN BULLION MARKET

India is the leading consumer and importer of bullion. It consumes nearly 800 metric tons of gold, which
accounts for 20 per cent of world gold consumption. Out of this, around 600 metric tons of gold goes into
making jewellery.

The domestic bullion and jewellery market is estimated to be around US$ 16.1 billion, which is expected
to grow to the size of US$25 billion within 2-3 years.

India’s gem & jewellery sector commands around 80% of the jewellery trade worldwide. Total Export of
jewellery in April 2009 was at Rs.5749.56 Crore.

The Indian gems and jewellery industry is one of the fastest growing segments in the Indian economy.
The annual growth rate is approximately 15 per cent.

Gems and jewellery worth US$ 17.79 billion was exported during April 2008 to February 2009. The United
Arab Emirates (UAE) was the largest importer of gems and jewellery from India in 2008-09, with a share
of 31 per cent.

This was followed by Hong Kong with 25 per cent and the US with 20 per cent. The gems and jewellery
sector accounted for 13 per cent of India’s total merchandise exports.

1.3 BULLION COIN

A bullion coin is a coin struck from precious metal and kept as a store of value or an investment, rather
than used in day-to-day commerce. Investment coins are generally coins that have been minted after
1800, have a purity of not less than 900 thousandths and are, or have been, a legal tender in their
country of origin.

Bullion coins are also typically available in various weights. These are usually multiples or fractions of 1
troy ounce, but some bullion coins are produced in very limited quantities in kilograms and even heavier.

Bullion coins are sell for a premium over the market price of the metal on the commodities exchanges.
This is due to their comparative small size and the costs associated with manufacturing, storage and
distribution. The margin that is paid varies depending on what type of coin it is, the weight of the coin,
and the precious metal. The premium also is affected by prevailing demand.
1.4 BULLION PRICES IN INDIA ARE PRIMARILY DEPENDENT UPON 3
MAJOR FACTORS:

The international (London fix) price of gold and silver in US dollars

The twice-daily bidding session in London of the five major gold traders, at which the gold price is fixed or
set. The London Fix provides the basis for many gold contracts worldwide. For Silver, the price is fixed or
set once daily.

The value of the Indian rupee versus the US dollar

Gold and Silver prices should be uniform across the world. So base price in United States is considered
and depending upon currency value of respective country, prices of Gold and silver are decided. Basic
gold prices are in terms of troy-ounce and get converted into grams. Then after using Dollar-rupee
conversion factors and adding import duty gold prices are decided.

Local and overall Asian demand for gold and silver.

Further, the local market rates would be different because the local wholesale bullion market works on a
complex system of wholesalers, stockists, bulk consumers, re-sellers, and retailers.

GOLD LOAN

A gold loan is a loan which is secured against gold ornaments.

In muthoot finance limited a borrower pledges their gold ornaments in exchange for funds. Therefore, it
is a loan which is granted against a certain physical security of gold. Gold loans have successfully enabled
thousands of people to mobilize their personal assets, which would've otherwise simply been kept away
in a locker.

FEATURES OF GOLD LOAN

 Secured Loan is borrowed against the gold deposited by the applicant.

 There is no minimum period for the loan and, if need be, one can return the loan amount
the very next day. The average tenure of the loan is about 1 day to 15 months.
 Repayment can be structured as just interest amount with principal being repaid at the end
of the period in one lump sum. Repayment through EMI, covering interest as well as
principal, can also be an option.
 CHAPTER-2

RESEARCH METHODOLOGY
 RESEARCH METHODOLOGY

The process used to collect information and data for the purpose of making business decisions is
called research methodology.

2.1 COLLECTION OF DATA

Two types of Data can be collected

1. Primary data
2. Secondary data

PRIMARY DATA

The data collected directly by the investigator are called primary data. They are original and give
first hand information. It can be collected by different methods viz. direct personal investigation,
indirect oral investigation etc.

In the research, Primary data was collected through:

 Questionnaire: The primary data was collected mainly by using a questionnaire. A questionnaire
is a research instrument consisting of a series of questions and other prompts for the purpose of
gathering information from respondents.

 Personal interview: The personal interview was taken from half of the respondents. This was
mainly to elicit information that was left out in the questionnaire opinions and suggestions were
asked for the betterment of the project.

SECONDARY DATA

 Secondary data is that data which somebody else has collected and which had already been
passed through the statistical process. This indirect information is collected from newspapers,
journals, business manual, pamphlets, magazine, internal sales records, credit records and internal
reports. etc.
 For my research project the Secondary data is collected through
 Websites
 Journals and previous research reports like Bullion India research report etc.
 Newspapers ( THE HINDU)
2.2 SAMPLING PLAN

Sample Frame Convenience sampling method is used for collecting the primary data for the research
project.

Sample size 50 (25 sample for gold loan borrower and 25 sample for investors who buy gold/silver coin
from muthoot finance Ltd.).

Area of study muthoot finance branches in East Delhi

Tools for collection of data A questionnaire is developed to collect data from the respondent under the
sample.

Analysis of Data The primary data is analyzed by using statistical techniques like percent.

2.3 STATISTICAL TOOLS

The tools used for the analysis are Simple percentage and Diagrammatic representation.

 Simple Percentage

Percentage is used to describe relationship. Since the percentage reduces everything to a common base
thereby allow meaningful comparison to be made.

It is calculated by

Percentage = No of frequency/ Total no of frequency X 100

  Diagrammatic Representation
Diagrams are used to represent the tabulated data diagrammatically as they will give a vivid picture
about the information collected.

The diagrams include

 Bar graph
 Charts.

2.4 LIMITATIONS OF THE STUDY

 Time allowed for the study was not sufficient.

 Area of the study is limited to only East Delhi branches of muthoot finance.

 Sample size is small due to time and area of study constraints.

 The data provided by the respondent may not be correct or accurate.

 Findings of the study are based on the assumption that the respondents have given correct
information.
 CHAPTER-3

CONCEPTUAL DISCUSSION
 CONCEPTUAL DISCUSSION

3.1 CONCEPTUAL DISCUSSIONS ON BULLION

According to LBMA, The Survey began life as an Alchemist article in 1997. A dozen participants
contributed trading range forecasts for gold and seven for silver, as well as providing their thoughts on
general market trends for the year ahead. With the pm gold price starting the year at $366.55 analysts
predicted that gold would trade during 1997 in the range $330 -$405. The average price for the year out
turned at the bottom end of the range at $331.3, down 9% on the year. For silver, with the price starting
1997 at $4.77, analysts forecast that the price would be in the range, $3.80 to $5.00. The actual average
price for 2007 out turned towards the top of the range at $4.89, marginally up on the year.

According to research conducted by BMG funds, the value of virtually every major currency is rapidly
eroding due to unprecedented currency creation by central banks around the world. Because currencies
are shrinking in value, so, is the value of the currency-denominated stocks, bonds and other financial
assets held inside an investor's portfolio. Investors may be surprised to learn that the Canadian and US
dollar have lost more than 82 percent of their purchasing power since 1971.

In contrast, precious metals bullion continues to rise in value against all currencies. Bullion is once again
resuming its historical role as money: a store of value and a proven source of real wealth and portfolio
protection that cannot be created out of thin air like paper currencies.

BullionVault, an online service for investors to buy and sell physical gold and silver, said its Gold Investor
Index declined to a five-month low in December as the metal posted its biggest annual drop since 1981.
“Buying gold as financial insurance at last year’s lower prices could soon prove smart if the stock-market
surge falters in 2014,” Adrian Ash, head of research at BullionVault, said in their research report.
3.2 CONCEPTUAL DISCUSSIONS ON GOLD LOAN

The organized gold loan market has grown at 40% CAGR from 2002 to 2010. NBFCs have been a major
driving force behind this growth given their extensive network, faster turnaround time, higher loan-to-
value ratios and the ability to serve non-bankable customers. Of late, banks have improved their gold
loan product features and services. Coupled with comparatively lower interest rates and charges, banks
stand to gain market share at the expense of NBFCs in the near future.

With rapid growth, regulatory scrutiny has increased on gold loan lending practices. NBFCs are under
greater focus as a result of their higher interest rates and charges, and non-adherence to know your
customer (KYC) regulations. This may further impact the dominance of NBFCs in the gold loan market.

At just 1.2% of the total gold stock in the country at present, gold loans have a huge growth potential.
 CHAPTER-4

DATA ANALYSIS
DATA ANALYSIS FOR BORROWERS

1. Frequency of Taking Gold Loan in a Year by borrowers from muthoot finance

Opinion Response % Of Response

ONCE 7 28

2-5 TIMES 10 40

6-10 TIMES 6 24

MORE THAN 10 TIMES 2 8

Response
45
40
35
30 40
25
20 28
15 24
10
5 8
0
Once 2-5 Times 6-10 Times More than 10
Times

INTERPRETATION

The above chart depicts that all most 40% of the borrowers apply for gold loan 2-5 times a year whereas
28% borrowers apply for gold loan only once. Very few apply for gold loan more than 10 times.
2. REASON BEHIND TAKING GOLD LOAN FROM MUTHOOT FINANCE

Opinion Response % of response

Minimal Documentation 5 20

In-House Gold Evaluation 8 32

Pre-Payment Option-Without Any Penalty 8 32

Customer Oriented Services 4 16

35

30

25 32
20 32
15
20
10 16
5

0
minimal In-house gold prepayment customer oriented
documentation evaluation option without services
any penalty

INTERPRETATION

According to data collected 32% of the borrowers undertake gold loan from Muthoot finance because of
their IN-HOUSE GOLD EVALUATION facility as well as on PREPAYEMNT OPTION WITHOUT ANY PENALTY
facility.
3. TYPE OF GOLD PLEDGED TO AVAIL THE GOLD LOAN

Opinion Response % Of Response

NECKLACE 10 40

RINGS 5 20

BRACELETS 2 8

PENDANTS 6 24

OTHERS 2 8

RESPONSE
50

40

30
40 RESPONSE
20
24

10 20

8 8
0
NECKLACE RINGS BRACELETS PENDANTS OTHERS

INTERPRETATION

The above graph shows that the majority of the respondents pledge Necklaces to avail the loan followed
by rings, pendants and bracelets.
4. AWARENESS ABOUT OTHER VARIOUS SCHEMES OFFERED BY MUTHOOT
FINANCE

Opinion Response % Of Response

YES 15 60

NO 10 40

70

60

50
60
40
RESPONSE
30
40
20

10

0
YES NO

INTERPRETATION

The graph shows that more than half of the respondents (borrowers) are aware of the various schemes
offered by muthoot finance ltd.
5. SCHEMES USED FOR GOLD LOAN
Opinion Response % Of Response

GOLD LOAN INSTALLMENT SCHEME 2 8

TRUE VALUE LOAN 12 48

XPRESS LOAN 5 20

SUPER LOAN 6 24

60

50

40
48

30
response
20
20
10
24
8
0
Gold Loan Super Loan Xpress Loan True Value Loan
Installment
Scheme

INTERPRETATION

The above graph shows that the majority of respondents are attracted towards the true value loan
scheme due to their low interest rates whereas few respondents avail gold loan installment scheme.
6. AWARENESS ABOUT THE SLAB PERIODS ASSOCIATED WITH THE ABOVE
SCHEMES

Opinion Response % Of Response

Yes 21 84

NO 4 16

90

80
84
70

60

50
response
40

30

20

10 16
0
Yes No

INTERPRETATION

The above chart shows that more than 3/4th of the borrowers are aware of the slab periods associated
with the various gold loan scheme of muthoot finance ltd.
7. AWARENESS ABOUT RATE OF INTEREST ASSOCIATED WITH THE ABOVE
SCHEMES

Opinion Response % Of Response

Yes 18 72

NO 7 28

80

70

60 72
50

40
RESPONSE
30

20

10
28
0
YES NO

INTERPRETATION

The above graph depicts that the majority of the borrowers are aware about the rate of interests
associated with the various schemes which occupy 72% of the total response.
8. RATINGS FOR THE RATE OF INTEREST ON GOLD LOAN

Opinion Response % Of Response

HIGH 5 20

MODERATE 5 20

LOW 15 60

70

60

50

40
60

30

20

10 20 20
0
HIGH MODERATE LOW

INTERPRETATION

According to more than half of the borrowers muthoot finance rate of interest on gold loan is low.
9. SAFETY CONCERN REGARDING THE CUSTODY OF GOLD ORNAMENTS WITH
MUTHOOT FINANCE LTD

Opinion Response % Of Response

HIGH 19 76

MODERATE 5 20

LOW 1 4

80

70

60 76
50

40

30

20

10 20
4
0
HIGH MODERATE LOW

INTERPRETATION

The above graph shows that more than 75% of the borrowers are secure with the safety standards of
Muthoot finance ltd.
DATA ANALYSIS FOR INVESTORS

1. INVESTMENT TIME PERIOD IN BULLION COINS FROM MUTHOOT FINANCE

OPINION RESPONSE % OF RESPONSE

NEW INVESTOR 3 20

ONE YEAR 3 20

TWO YEAR 5 33

MORE THAN TWO YEAR 4 27

35

30
33
25
27
20
20 RESPONSE
15
20
10

0
NEW INVESTOR ONE YEAR TWO YEAR MORE THAN
TWO YEAR

INTERPRETATION

The above graph shows that the muthoot finance ltd has regular investors who invest their money in
bullion coins.
2. INVESTMENT PERCENTAGE IN BULLION COINS

OPINION RESPONSE % OF RESPONSE

Below 25% 15 60
25%-50% 7 28
50%-75% 3 12
Above 75% 0 0

70

60

50 60
40

30

20
28
10
12 0
0
BELOW 25% 25%-50% 50%-75% ABOVE 75%

INTERPRETATION

The graph shows that 60% of the investors invest less than 1/4th portion of their income in Bullion
Coins.
3. FACTORS AFFECTING INVESTING DECISIONS IN BUYING BULLION COINS

OPINION RESPONSE % OF RESPONSE

LOW RISK 5 20

HIGH RETURN 6 24

COMPANY GOODWILL 6 24

LIQUIDITY 8 32

35

30

25 32
20
24
24
15 20
10

0
low risk high return company goodwill liquidity

INTERPRETATION

The graph shows that 32% investors prefer liquidity factor while investing in Bullion coins.
4. PRIMARY MOTIVE FOR INVESTMENT IN BULLION COINS

OPINION RESPONSE % OF RESPONSE

COLLECTION OF COINS 5 20
RISK AVOIDANCE 5 20
LIQUIDITY 12 48
OTHER INVESTMENT PURPOSE 3 12

60
50
40
48
30
20
20 20
10
12
0
ACCUMULATION MAINTENANCE LIQUIDITY OTHER INVST.
PURPOSE

INTERPRETATION

The above graph shows that 48% of the investor’s primary motive for investing in bullion coins is liquidity
as it transforms bullion coins into cash within a year and helps them in future uncertainties.
5. PLACE OF PURCHASE OF BULLION COINS SOLD BY MUTHOOT FINANCE LTD

OPINION RESPONSE % OF RESPONSE

FROM MUTHOOT BRANCHES 17 68

ONLINE MUTHOOT WEBSITES 5 20

MOBILE APP( MUTHOOT GROUP APP) 3 12

80

70

60

50 68
40

30

20

10 20 12
0
MUTHOOT BRANCHES ONLINE MOBILE APP

INTERPRETATION

The above graph shows that6% of the total investors are purchasing the bullion coins from muthoot
branches as they are getting on the spot delivery of their coins.
6. RATE THE SAFETY OF INVESTMENT IN BULLION COINS ACCORDING TO MARKET
FLUCTUATIONS

OPINION RESPONSE % OF RESPONSE

HIGH 12 48

MODERATE 8 32

LOW 5 20

60

50

40

30 48
32
20

10 20
0
HIGH MODERATE LOW

INTERPRETATION

The graph shows that, according to 48% of the investors it is safe to invest in bullion coins.
7. RATE THE LIQUIDITY PERCEPTION REGARDING INVESTING IN BULLION
MARKET

OPINION RESPONSE % OF RESPONSE

HIGH 19 86

MODERATE 4 16

LOW 2 8

100
90
80
70 86
60
50
40
30
20
10 16 8
0
HIGH MODERATE LOW

INTERPRETATION

The above graph shows that more investors considered the bullion market is having high liquidity where
as less investors considered that the liquidity is low.
8. RATE THE RISK REDUCTION PERCEPTION REGARDING INVESTING IN BULLION
MARKET

OPINION RESPONSE % OF RESPONSE

HIGH 10 40

MODERATE 10 40

LOW 5 20

45
40
35
30
40 40
25
20
15 20
10
5
0
HIGH MODERATE LOW

INTERPRETATION

According to Majority of the investors, the risk reduction perception regarding bullion market is high.
9. AWARENESS ABOUT THE ONGOING SCHEMES UNDER BULLION COINS
OFFERED BY MUTHOOT FINANCE LTD

Opinion Response % Of Response

Yes 12 48

NO 13 52

53

52

51

50 52
49 RESPONSE

48

47
48
46
YES NO

INTERPRETATION

The graph shows that the more than half of the respondents are not much aware of the ongoing schemes
offered by muthoot finance ltd.
10. SOURCES FOR INVESTING IN BULLION COINS

OPINION RESPONSE % OF RESPONSE

PERSONAL MONEY 18 72

FAMILY & FRIENDS 4 16

BANKS 2 8

OTHERS 1 4

80

70
72
60

50

40
RESPONSE

30

20

10 16
8 4
0
PERSONAL MONEY FAMILY & FRIENDS BANKS OTHERS

INTERPRETATION

The above graph shows that majority of the investors are using their own money for investment in
bullion coins.
 CHAPTER - 5
FINDINGS & CONCLUSION
 FINDINGS

 It was identified from the response that muthoot finance was successful in providing effective
gold loans even after the recent fluctuations in the prices of gold.

 It was also interpreted that Muthoot Finance was successful in providing long pay back periods to
its customers. This is also a reason for its success in this industry.

 It was also found that borrowers are more satisfied with the security standards of muthoot
finance on their gold jewellery.

 It was found that the primary motive for investment in bullion coins is liquidity factor.

 It was found that the investors are not much aware about the ongoing schemes of muthoot
finance on bullion coins.
 CONCLUSION

 Muthoot Finance Ltd. is a trusted name when it comes to providing financial services in the
shortest possible span of time.

 This research project helped me to find out the different factors responsible for the success of
muthoot finance ltd.

 The major finding that can be concluded from this study is that Muthoot Finance Limited is still
the best gold financing company in India as its investors are highly satisfied with the quality
standards of the company.

 The company generates its revenues mainly from the gold loan business.
CHAPTER - 6

SUGGESTIONS
 SUGGESTIONS

 Most of the people are unaware of the different financial products offered by Muthoot. So the
company should take necessary steps to create awareness among the public.

 The company can also give attractive offers to old borrowers and investors as well as prospective
new borrowers and investors.

 The company can also look into new ventures as it has established itself as the leader in gold loan
financing field.
BIBLIOGRAPHY
BIBLIOGRAPHY

BOOKS

 M. A. Olsen and Alison Matthews (1992), the Gold Book: A Guide to Commonly Traded
Gold Bullion Coins and Bars, Westminster Pub Co.

JOURNALS & REPORTS

 The article “Muthoot: Allow gold loan companies to access public deposits” in THE
HINDU which was published on January 24, 2014.
 GOLD INVESTMENTS AND ITS SHORT- AND LONG-RUN PRICE by Professor
Eero Patari in Helsinki, August 29, 2007.
 GOLD AND SILVER RESEARCH REPORT by Bullion India.
 ALCHEMIST by The London Bullion Market Association, March 2014.
WEBSITES

 http://www.muthootfinance.com
 http://www.muthootfinance.com/gold-loan/
 http://www.muthootfinance.com/gold-coins/
 http://www.preservearticles.com/2011092013726/what-are-the-features-merits-and-
demerits-of-gold-bullion-standard.html
 http://www.bullionindia.in/
APPENDICES
UESTIONNAIRE FOR BORROWERS

(a). Name:-
(b). Add: - Contact No:-
(c). Age:-
(d). Qualification:-

1. How Often Do You Take Gold Loan Within A Year?

 Once
 2-5 times
 6-10 times
 More than 10 times
2. Motive behind taking talking Gold Loan from Muthoot Finance Ltd. that attracted you the most?

 Customer oriented Services

 Pre-payment option-without any penalty
 Minimal documentation
 In-house gold evaluation
3. What type of gold you pledge to avail the gold loan?

 Necklaces
 Rings
 Bracelets
 Pendants
 Others
4. Are you aware about the various schemes offered by muthoot finance?

 Yes
 No
5. Which scheme have you used for gold loan?

 True Value Loan

 Xpress Loan
 Super Loan
 Gold Loan Installment Scheme
6. Are you aware about the slab periods associated with the above schemes?

 Yes
 No
7. Are you aware about Rate of interest associated with the above schemes?

 Yes
 No
8. How do you rate the returns on gold loan in Muthoot Finance Ltd?

 High
 Moderate
 Low
9. How safe do you rate the custody of your gold ornaments with Muthoot Finance ltd.?

 High
 Moderate
 Low
 QUESTIONNAIRE FOR INVESTORS

(a). Name:-
(b). Add: - Contact No:-
(c). Age:-
(d). Qualification:-

1. How long have you been in investing bullion coins from muthoot finance?

 New investor
 one year
 two year
 more than two year
2. What is the Investment portion of your income?

 Below 25%
 25% To 50%
 50% To 75%
 Above 75%
3. While investing your money in buying Bullion coins, which factor you prefer most?

 Low risk
 High return
 Company goodwill
 Liquidity
4. What is your primary motive for investment in Bullion coins? (Select one)

 Collection of coins
 Risk avoidance
 Liquidity (means the conversion of assets to cash)
 Other investment purpose
5. From where you purchase gold/ silver coins sold by muthoot finance ltd.?

 From muthoot branches

  Online muthoot website
 Mobile app (Muthoot GROUP APP)
6. How safe do you think is in investing gold?

 High
 Moderate
 Low
7. What is the liquidity perception regarding investing in bullion market?

 High
 Moderate
 Low
8. What is the risk reduction perception regarding investing in bullion market?

 High
 Moderate
 Low
9. Are you aware about the Ongoing Schemes under BULLION COINS offered by muthoot finance
ltd?

 Yes
 No
10. On which sources you depend for purchasing bullion coins.

 Personal money
 Family and friends
 Banks
 Or others. ( pls. specify)