Some of the loan instruments available are:-

I] HOME LOANS
Real estate is currently one of the fastest growing sectors in India. Banking sector is also
registering profitable business since the last few decades, with the growth of real estate. a!ority
of the banks are also offering easy home loans at attractive rates to their customers. "ow that
getting a home loan is so easy, it seems everyone can fulfill his # her long cherished dreams of
purchasing lands, building their houses and e$panding their homes. %ifferent types of home
loans are tailored to suit the heterogeneous re&uirements of the customers.
Home Purchase Loans: 'his is the basic home loan for the purchase of a new home.
Home Improvement Loans: 'hese loans are given for implementing repair works and
renovations in a home that has already been purchased by you.
Home Construction Loan: 'his loan is available for the construction of a new home.
Home Extension Loan: 'his is given for e$panding or e$tending an e$isting home. (or
instance, you may apply for a loan for the addition of an e$tra room in your home and for
similar cases etc.
II] PERSONAL LOANS
)ersonal loan is a lump sum amount that you take either from a bank or building society or
another lender. Such loans help you to take care of your immediate re&uirements without much
of a hassle. In fact, personal loan is one of the &uickest ways of borrowing money. *lso, no
&uestions regarding the end use of the loan are asked. +ou can use the loan amount for any
purpose such as home renovation, marriage e$penses, medical e$penses, holidays, consumer
durables, higher education etc. ,hile applying for the loan, the lender usually conducts a credit
worthiness check, before giving the loan. )ersonal loans are repayable in e&ual monthly
installments -.Is/ and the loan tenure varies from 0 to 1 years.
'he ma$imum amount of personal loan for which you are eligible depends upon your take-home
salary. 'he e$act loan amount depends on your eligibility and takes into account many other
0
things as well, like your credit rating, !ob security, residential location and the ability to repay the
loan amount in time.
*s personal loans are given without any security and involve a high risk, the interest charged is
usually more as compared to other loans, usually varying from 02 to 234. *part from this,
interest processing fee is also charged from the borrowers.
III] AUO LOANS
,ith a plethora of auto loan opportunities available in India these days, it is now possible for one
to buy your dream car within a matter of days. "o need to save up money for making complete
down payment at the time of buying. 5ust gather enough amount for the initial payment and pay
the rest in easy installments, by taking up a loan. 'he best part about auto financing is that, apart
from the new cars, loans are available for old cars as well.
*fter undertaking a thorough research of each and every scheme, one will need to pick the one
that suits the most, in terms of interest rate, monthly installments, duration, and so on. 'he si6e
of the loan will depend upon the cost of the vehicle and its type -standard or premium/, along
with the percentage financing one want or are being offered.
In case of a new car, up to 784 of cost of the car is finance, while the percentage gets reduced to
984 in case of old car.

I!] LOAN A"AINS SHARES
'he main purpose of taking loans against shares is to preserve investment, apart from taking care
of personal needs. )eople also resort to such a loan to meet their contingencies and get li&uidity
without actually selling the shares. It is advisable to take loan against e&uity -shares :
debentures/ only when e$pecting a certain sum of money a few months down the line and need
some funds in the interim. If one is reinvesting the loan amount, ensure that the benefits you
2
derive are more than the cost you have to incur -which includes interest and processing fee/.
;arefully consider the risk involved in such a move.
<oan against shares is available in the form of an overdraft facility against the pledge of financial
securities like shares#units#bonds. *fter you submit the loan application with all the share
certificates and other relevant documents, a current account is opened in your name. +ou can
then withdraw up to the amount sanctioned and interest will be charged only for the number of
days you use the amount. 'he loan amount that can be sanctioned depends on two factors: the
e$tent of funding on a particular stock and the price -called the base price/ considered by the
lender for calculating the value of the shares.

=

HISOR#$ %&&% In'ia economic crisis
In 0791, India had started having balance of payments problems. By the end of 0778, it was in a
serious economic crisis. 'he government was close to default, its central bank had refused new
credit and foreign e$change reserves had reduced to such a point that India could barely finance
three weeks> worth of imports. India had to airlift its gold reserves to pledge it with International
onetary (und -I(/ for a loan.
'he crisis was caused by currency overvaluation? the current account deficit and investor
confidence played significant role in the sharp
e$change rate depreciation.
'he economic crisis was primarily due to the large
and growing fiscal imbalances over the 0798s.
%uring mid eighties, India started having balance
of payments problems. )recipitated by the @ulf
,ar, India>s oil import bill swelled, e$ports
slumped, credit dried up and investors took their
money out. <arge fiscal deficits, over time, had a
spillover effect on the trade deficit culminating in an e$ternal payments crisis. By the end of
0778, India was in serious economic trouble.
'he caretaker government in India headed by )rime inister ;handra SekharAs, immediate
response was to secure an emergency loan of B2.2 billion from the International onetary
(und by pledging CD tons of IndiaAs gold reserves as collateral 'he Reserve Bank of India had to
airlift 3D tons of gold to the Bank of .ngland and 28 tons of gold to the Enion Bank of
Swit6erland to raise BC88 million. "ational sentiments were outraged and there was public
outcry when it was learned that the government had pledged the countryAs entire gold reserves
against the loan. 'he move helped tide over the balance of payment crisis, !olting the country out
of an economic slumber.
3
(H# IN)IANS A*E O "OL)++
0/ "o,' is consi'ere' an e-uiva,ent .or ,i-ui' cash: @old is highly li&uid and portable as a
Security or *sset. It can be converted to cash anytime when an emergency arises and is
considered a friend in need.
2/ "o,' is consi'ere' as Status S/m0o,: .specially in India gold symboli6es wealth. In Indian
weddings the gold the bride brings in show her familyAs status and wealth and forms part of the
dowry given to bride. It is believed that a bride wearing 23k gold on their wedding to bring luck
and happiness throughout the married life.
=/ "o,' is a ver/ 1oo' investment: @old is an asset which has consistently increased in value
and thereby considered as a safe and secure investment. @old is considered an
effective diversifier which helps to reduce portfolio risk.
3/ "o,' is consi'ere' as a 1oo' 1i.t item: ItAs precious and worthy across all
cultures and times. 'he gold !ewelry is given as gifts during weddings, festivals
and other special occasions.
1/ "o,' has 1reat re,i1ious si1ni.icance: @old is the symbol of the Findu
@oddess <akshmi and considered highly auspicious. @old is brought or
presented on festivals like %hanteras and *kshaya 'ritiya. 'oe rings are never
made of gold as it represents the goddess of wealth and should not be soiled by
touching a humanAs feet.
C/ "reat Ornamenta, !a,ue: ,ho can resist gold GrnamentsH ,omen of every
age and time have always loved wearing gold ornaments. oreover, @old
Grnaments are never out of fashion. It also may be remembered that ,edding rings are also
traditionally made of gold to mark a long lasting relationship.
D/ "reat va,ue as Heir,oom: @old !ewelry is something which can be passed down from one
generation to the other as ancestral property.
Isn>t this why people say @old is foreverH
*E# 2EAURES O2 "OL) LOAN
1
Secured <oan is borrowed against the gold deposited by the applicant.
ulti-purpose 'he loan can be used for any purpose, as long as it is not for any
illegal activity or speculation in the stock market. "B(;s place even
fewer restrictions on the use of loan.
<ow disbursal
times
"B(;s and the unorgani6ed sector disburse loans at a much faster
pace -as low as three minutes to a few hours/ as compared with banks
which may take a few days.
Figh loan-to-value
-<'I/ ratios
,hile banks would typically not give more than D14 of the gold
value as loan, "B(;s> lending could go as high as 714 in case of
high-purity gold.
Shorter loan
tenures
'here is no minimum period for the loan and, if need be, one can
return the loan amount the very ne$t day. 'he average tenure of the
loan is about 78 to 088 days.
Iaried interest rates 'he interest rate depends on the tenure and amount of loan. It varies
from 024 to 094 in the case of banks, while for "B(;s, it could
reach 234. 'he interest rates charged by the unorgani6ed segment are
much higher and can range from =84 to 184. Reasonable rates of
interest are especially applied if the loan to value -<'I/ does not
e$ceed 18-C84.
ultiple repayment
options
Repayment can be structured as !ust interest amount with principal
being repaid at the end of the period in one lump sum. Repayment
through .I, covering interest as well as principal, can also be an
option.
C
IN)IAN MAR*E A A "LANCE
A LOO* A HE N32C SECOR
'he Indian "B(; sector can broadly be segregated into:-
0/ Infrastructure "B(; segment,
2/ 'he Fousing (inance "B(; segment and
=/ 'he Retail or ;onsumer (inance "B(; segment.
'he Indian "on Banking (inance ;ompanies -"B(;s/ accounts for a critical part of the
country>s overall financial system. It is estimated that the "B(;s as a whole account for 7.04 or
Rs. 3 trillion of assets of the entire financial system in India
RAIONALE 3EHIN)
"OL) LOAN
*s the name suggest its loan against @old. It>s the most
convenient way to receive cash in no time from any "B(;#Bank by pledging your gold
;oins#bars#.$change traded funds .'(s# SBI gold certificates etc., this is one loan product
which comes with minimal documentation : no processing time
)roduct is designed in a way it ensures hassle free process for the customer : loan availed can
be put to any use.
<oan amount eligibility is evaluated basis on the @old value banks usually fund D8-984 of the
gold market value : on repayment of the loan gold deposits are returned back to the customer.
D
'his loan comes much cheaper than personal loan as it>s a secured product : rate of interest
ranges between 00.1-234 per annum.
Rate of interest is decided on two factors risk criteria-:
0. ,hat 4 of market value of @old you are availing loan. -If its 784 of the @old market value
then interest charged will be higher : vice a versa for lower loan amount as compared to gold
value/ :
2. ;ustomer relationship with the bank.
CHALLEN"ES
2ACE) 3# N32C4s
'he beginning of the last decade was very challenging for "B(; as they had to starve off
issues such as high cost of funds, low asset profile, intense competition, positioning
difficulties, slow economic and industrial growth and a high degree of ")*s.
'he largely institutionally funded "B(; industry struggled in an era of where credit
confidence was ebbing away. <oss of employment, deterioration in asset &uality and lack
of li&uidity were some of the standout characteristics of "B(;s during that phase.
9
'he RBI came to the rescue of the "B(;s by providing a range of measures such as
opening up a special repo window under the <i&uidity *d!ustment (acility, creation of an
S)I for li&uidity support, deferring higher ;*R norms for "B(;s and reducing risk
weights on bank>s e$posure to "B(;s.
SCOPE 2OR N32C4s
'he Indian "B(; sector plays a very important role in financial intermediation in the
country, accounting for around 7-084 of the total financial assets in the system and their
7
fundamental importance to the
country>s development is set to
continue. Fowever going forward
the situation is likely to be a lot
more challenging as the "B(;
sector seeks to grapple with the
twin issues of J
o %iminishing competitive advantages -weaker barriers to entry/ and
o @reater regulatory pressures.
@oing forward one is likely to see a greater influ$ of banking players within the "B(;
territories and unless the "B(; players can diversify their product offerings and tap
newer markets their competitive advantages will diminish.
'he RBI is looking to bridge the regulatory gap between banks and "B(;s and non
deposit taking "B(;s and deposit taking "B(;s and this increasing cost of regulation
will affect profitability and impose constraints on the business model of "B(;s.
"OL) LOAN SECOR IN IN)IA
HE REAL !ALUE O2 "OL)
'he Indian gold market is a market that has grown at an impressive pace and is still currently
brimming with opportunities. ,hile since (+82 till (+08 the gold stock in India is estimated to
have grown at a ;*@R -;ompounded *nnual @rowth Rate/ of =1-384 -It is estimated that in
08
(+00 alone the country imported 788-0888 tonnes of gold/ there is every reason to believe that
these rates can be sustained or even bettered going forward. 'he ,orld @old ;ouncil believes
that gold demand in the country will continue to grow at =84 in real terms driven by
urbani6ation, rapid @%) growth, burgeoning middle class incomes and a sustained and
potentially rising savings rate of =1-384
@old <oan Sector
"o,' Price in In'ia 5 67 #ears Histor/
@old has always fascinated us Indians but do you know how prices of @old have varied in India.
I happen to visit RBI website which publishes lots of reports including weekly @old prices.
So here it is 38 +ears price history of @old.
00
Gold Loan
Sector
Organized
sector
Unorganized
sector
OPPORUNI# 2OR OR"ANI8E) SECOR
India is estimated to possess 084 of the total gold stock in the world at 09888- 28888
tonnes.
02
'he opportunity for gold loan players lies in the fact that only 084 of this gold stock has
been pledged as gold and only 0-24 is captured by the organi6ed segment. @reater
professionalism, standardi6ation and the ensuing goodwill and trust can help channel the
gold stock to the broader gold loan segment with
particular reference to the organi6ed segment.
,hile the potential si6e and the scope of the gold
loan market are very admirable, that alone is not
enough. 'here has to be an undercurrent of strong
demand to lend credence to the scope and even on
this count there is much to be optimistic. In fact
there has been a radical shift in the perception of
gold loans by the average Indian. .arlier while pledging gold for loans was frowned
upon and was largely looked upon as a last resort, these days gold loans are being
taken even for the most elementary reason -or as bridge loans/, such that they have
come to be known in common parlance as 9the ,oan o. convenience:
@reater word-of-mouth, perception changes and the increasing share of the organi6ed
segment in the total gold loan market can help bring the idle old gold stock to the gold
loan market.
Strong consumerism levels have only contributed to the boom of gold loans. In
addition to that while initially the gold loans were only taken by the rural class, these
days a broader class of people encompassing office goers in metros and semi urban
places, the elderly and the youth have all embraced this product.
COMPEII!E E)"E 5 N32C4s
0=
'he gold loan players are broadly divided into the
o unorgani6ed segment -pawn brokers, fund brokers, money lenders/,
o the organi6ed gold "B(; players and
o organi6ed banks.
It is estimated that D84 of the gold loan market is unorgani6ed with only =84 accounting
for the organi6ed segment. 'he greater influ$ of the organi6ed sector is responsible for
bringing a degree of standardi6ation to the gold loan market and this has helped stoke
demand.

'he organi6ed gold loan "B(; segment is better positioned than their organi6ed banking
counterparts and the broader unorgani6ed segment as they have a standardi6ed gold loan
process, an abundance of gold appraisers, charge optimal rates that are lower than the
rates charged by the unorgani6ed segment and possess a strong sense of e$pediency in the
disbursement of loans relative to the banks.
03
HE SPAR* 2OR INERES
;ontrary to the popular notion, gold loans are soaring not because of the ongoing rally in gold
prices, but because of relatively low competition from organi6ed lenders like banks. *nd having
a tangible, super-secure commodity like gold for collateral can only add shine to the story.
01
CHAPER ;
LIERAURE RE!IE(
0C
"OL) MAR*E AN) HE 3OOM O2 "OL) LOAN SE"MEN
India is one of the largest markets for gold, accounting for appro$imately 084 of the total world
gold stock as of 2808. Rural India accounts for C14 of this gold stock. 'hough gold prices have
increased at more than 074 ;*@R from 2882 to 2808, gold stock in India has grown at 224
;*@R during the same period to 09,888 tons -Rs. =2,888 billion/ as depicted in (igure 0. 'he
demand for gold has followed a regional trend with southern India accounting for 384 of annual
demand, followed by the west -214/, north -28-214/ and east -08-014/.
'he organi6ed gold loan market has grown at 384 ;*@R from 2882 to 2808. "B(;s have been
a ma!or driving force behind this growth given their e$tensive network, faster turnaround time,
higher loan-to-value ratios and the ability to serve non-bankable customers. Gf late, banks have
improved their gold loan product features and services. ;oupled with comparatively lower
interest rates and charges, banks stand to gain market share at the e$pense of "B(;s in the near
future.
0D
09
(igure 3 depicts the gold loan portfolio si6e for key organi6ed sector players, again highlighting
the rapidly growing dominance of "B(;s -e.g., uthoot (inance, anappuram and uthoot
(incorp/
CHAPER <
Compan/ pro.i,e

07
Intro'uction to II2L
II(< is the institutional e&uities division of India Infoline <td. -Bloomberg: II(< I"/, a listed
multi-services financial company with a market capitali6ation of ESB388 million. ,ith a team
of 21 research analysts, full-fledged sales and trading team, and an e$perienced investment
banking team, II(< is rapidly emerging as one of the premier institutional e&uities houses in
India. Fead&uartered in umbai, II(< has overseas offices in Singapore and %ubai.
*mongst its other businesses, India Infoline is one of the leading players in the retail broking
and insurance distribution, and is currently in the process of scaling up its non-banking
28
financial services and wealth management franchises. 'he group has over C88 branches located
all over India.
In'ia In.o,ine "roup
,e are a one-stop financial services shop, most respected for &uality of its advice,
personali6ed service and cutting-edge technology.
!ision Statement :
Gur vision is to be the most respected company in the financial services space.

In'ia In.o,ine "roup su0si'iaries:
India Infoline edia and Research Services <imited
India Infoline ;ommodities <imited
India Infoline arketing : Services
India Infoline Investment Services <imited
II(< -*sia/ )te <imited
Histor/
'he India Infoline @roup was originally incorporated on Gctober 09, 0771 as )robity
Research and Services )rivate <imited at umbai under the ;ompanies *ct, 071C with
Registration "o. 00 7=D7D. 'he India Infoline @roup commenced its operations as an
independent provider of information, analysis and research covering Indian businesses,
financial markets and economy, to institutional customers. ,e became a public limited
company on *pril 29, 2888 and the name of the ;ompany was changed to )robity
Research and Services <imited. 'he name of the ;ompany was changed to India
Infoline.com <imited on ay 2=, 2888 and later to India Infoline <imited on arch 2=,
20
2880.
22
2=
Mi,estones
0771
Incorporated as an e&uity research and consulting firm with a client base that included
leading (IIs, banks, consulting firms and corporate.
0777
Restructured the business model to embrace the internet? launched
archives.indiainfoline.com mobili6ed capital from reputed private e&uity investors.
2888
;ommenced the distribution of personal financial products? launched online e&uity trading?
entered life insurance distribution as a corporate agent.
2883
*c&uired commodities broking license? launched )ortfolio anagement Service.
2881
<isted on the Indian stock markets.
288C
*c&uired membership of %@;K? launched investment banking services.
288D
<aunched a proprietary trading platform? inducted an institutional e&uities team? formed a
Singapore subsidiary? raised over ES% =88 mn in the group? launched consumer finance
business under the Loney line> brand.
2889
<aunched wealth management services under the LII(< ,ealth> brand? set up India Info line
)rivate .&uity fund? received the Insurance broking license from IR%*? received the
venture capital license? received in principle approval to sponsor a mutual fund? received
LBest broker- India> award from (inance *sia? Lost Improved Brokerage- India> award
from *sia money.
2887
Received registration for a housing finance company from the "ational Fousing Bank?
received L(astest growing .&uity Broking Fouse - <arge firms> in India by %un :
Bradstreet.
2808
Received in-principle approval for membership of the Singapore Stock .$change
Received membership of the ;olombo Stock .$change
2800
<aunched II(< utual (und
IN)IA IN2OLINE 2INANCE L)
India Infoline (inance <imited is a subsidiary of India Infoline <imited -II(</. 'he ;ompany
was originally incorporated on 5uly D, 2883 as a private limited company under the provisions of
the ;ompanies *ct, 071C as India Infoline Investment Services )rivate <imited. 'he ;ompany
was converted to a public limited company with effect from 5uly 08, 288D.
'he ;ompany has obtained a certificate of registration dated ay 02, 2881 bearing registration
no.- 03D=C1 issued by the RBI to carry on the activities of a "B(; under section 31 I* of the
RBI *ct, 07=3.
'he ;ompany is engaged in the activity of mortgage financing, loan against securities, gold
loans, margin funding and other consumer financing products.
India Infoline (inance <td. is professionally managed and shares the professional values and
ethos of its parent company, II(< and has ac&uired and maintained a reputation for reliability,
transparency of operations and absolute integrity. * steady growth rate validates the trust that
industry has reposed in the ;ompany.
23
Mi,estones
0771
Incorporated as an e&uity research and consulting firm with a client base that included
leading (IIs, banks, consulting firms and corporate.
0777
Restructured the business model to embrace the internet? launched
archives.indiainfoline.com mobili6ed capital from reputed private e&uity investors.
2888
;ommenced the distribution of personal financial products? launched online e&uity trading?
entered life insurance distribution as a corporate agent.
2883
*c&uired commodities broking license? launched )ortfolio anagement Service.
2881
<isted on the Indian stock markets.
288C
*c&uired membership of %@;K? launched investment banking services.
288D
<aunched a proprietary trading platform? inducted an institutional e&uities team? formed a
Singapore subsidiary? raised over ES% =88 mn in the group? launched consumer finance
business under the Loney line> brand.
2889
<aunched wealth management services under the LII(< ,ealth> brand? set up India Info line
)rivate .&uity fund? received the Insurance broking license from IR%*? received the
venture capital license? received in principle approval to sponsor a mutual fund? received
LBest broker- India> award from (inance *sia? Lost Improved Brokerage- India> award
from *sia money.
2887
Received registration for a housing finance company from the "ational Fousing Bank?
received L(astest growing .&uity Broking Fouse - <arge firms> in India by %un :
Bradstreet.
2808
Received in-principle approval for membership of the Singapore Stock .$change
Received membership of the ;olombo Stock .$change
2800
<aunched II(< utual (und
3oar' o. )irectors
Mr= A= *= Pur>ar ?Non Executive Chairman@
r. )urwar is currently the ;hairman of India Ienture *dvisors )vt. <td., investment manager to
India Ienture 'rust J (und I, the healthcare and life sciences focused private e&uity fund
sponsored by the )iramal @roup. Fe has also taken over as the ;hairman of I< : (S Renewable
.nergy <imited in arch 2889 and India Infoline (inance <td in "ovember 2887.
Fe is working as Independent %irector in leading companies in 'elecom, Steel, 'e$tiles, )ower,
*uto components, Renewable .nergy, .ngineering ;onsultancy, (inancial Services and
Fealthcare Services. Fe is an *dvisor to i6uho Securities in 5apan and is also a member of
*dvisory Board for Institute of Indian .conomic Studies -II.S/, ,aseda Eniversity, and 'okyo,
5apan.
*wards received: M;.G of the yearM *ward from the Institute for 'echnology : anagement
-2883/? MGutstanding *chiever of the yearM *ward from Indian BanksA *ssociation -2883/?
M(inance an of the +earM *ward by the Bombay anagement *ssociation in 288C.
Mr= Nirma, Aain ?)irector@
r. "irmal 5ain is the founder and ;hairman of India Infoline <td. Fe is a )@% -)ost
@raduate %iploma in anagement/ from II -Indian Institute of anagement/ *hmedabad, a
;hartered *ccountant and a rank-holder ;ost *ccountant.
Fis professional track record is e&ually outstanding. Fe started his career in 0797 with Findustan
<ever <imited, the Indian arm of Enilever. %uring his stint with Findustan <ever, he handled a
variety of responsibilities, including e$port and trading in agro-commodities.
Fe founded )robity Research and Services )vt. <td. -later re-christened India Infoline/ in 0771?
perhaps the first independent e&uity research ;ompany in India. Fis work set new standards for
e&uity research in India. r. 5ain was one of the first entrepreneurs in India to sei6e the internet
opportunity, with the launch of www.indiainfoline.com in 0777. Ender his leadership, your
;ompany not only steered through the dotcom bust and one of the worst stock market
downtrends but also grew from strength to strength.
21
Mr= R= !enBataraman ?)irector@
r. R Ienkataraman, ;o-)romoter and .$ecutive %irector of India Infoline <td., is a B.'ech
-electronics and electrical communications engineering, II' Nharagpur/ and an B* -II
Bangalore/. Fe !oined the India Infoline Board in 5uly 0777. Fe previously held senior
managerial positions in I;I;I <imited, including I;I;I Securities <imited, their investment
banking !oint venture with 5 ) organ of ES, BO, and 'aib ;apital ;orporation <imited. Fe
was also the *ssistant Iice )resident with @ . ;apital Services India <imited in their private
e&uity division, possessing a varied e$perience of more than 28 years in the financial services
sector.
Mr= Ni,esh !iBamse/ ?In'epen'ent )irector@
r. "ilesh Iikamsey J Board ember since (ebruary 2881 - is a practicing ;hartered
*ccountant for 21 years and Senior )artner at #s Nhim!i Nunver!i : ;o., ;hartered
*ccountants, a member firm of F<B International, a world-wide organi6ation of professional
accounting firms and business advisers, ranked amongst the top 02 accounting groups in the
world.
Fe is elected member of the ;entral ;ouncil of Institute of ;hartered *ccountant of India
-I;*I/, the *pe$ decision making body of the second largest accounting body in the world,
2808J280=. Fe is ;hairman of its Research ;ommittee, Iice ;hairman of its ;orporate <aws :
;orporate @overnance ;ommittee and member of its various other committees.
Fe is member of Review, Reforms : Rationali6ation ;ommittee -I;/, ember of <egal
*ffairs ;ommittee of Bombay ;hamber of ;ommerce and Industry -B;;I/, member of
*ccounting and *uditing ;ommittee of Bombay ;hartered *ccountant Society -B;*S/ and also
on its ;ore @roup, ;orporate embers ;ommittee of 'he ;hamber of 'a$ ;onsultants -;';/ :
a Regular ;ontributor to ,IR; *nnual Referencer on MBank Branch *uditM.
r. Iikamsey is also a %irector of India Infoline (inance <imited, Rodium Realty <imited, I;*I
*ccounting Research (oundation : few )rivate <imited companies and 'rustee in Sayagyi E Ba
Nhin emorial 'rust -Iipassana International *cademy/ : a few 'rusts focusing on .ducation.
2C
Mr= M N Sin1h ?In'epen'ent )irector@
r. Singh 5oined the AIndian )olice ServiceA in 07CD. Fe has worked as the chiefs of the crime
branch of umbai )olice, State ;I% and *nti-;orruption Bureau.
Ms= Pratima Ram ?(ho,etime )irector C Chie. Executive O..icer@
)ratima Ram has held senior management positions in State Bank of India, where she had
e$tensive e$perience in ;orporate and International Banking. Fer last assignment with the Bank
was that of ;ountry Fead of SBI>s Enited States Gperations based in "ew +ork. )rior to this, she
was ;.G of South *frica Gperations, based in 5ohannesburg. She also headed ergers :
*c&uisitions at SBI ;apital arkets.
2D
Su0si'iaries
;ompany has following step-down subsidiaries:
4. India Infoline Distribution Company Limited (distribution of retail loan products)
India Infoline %istribution ;ompany <imited is in the business of distribution of financial
products.
5. Money line Credit Limited (consumer finance)
oney line ;redit <imited is engaged in the business of loans. oney line ;redit
<imitedAs product bou&uet includes unsecured and secured personal loan and loan against
property.
6. India Infoline Housing inance Limited (!ousing finance)
India Infoline Fousing (inance <imited is the housing finance arm of the group. It is
registered with the "ational Fousing Board -"FB/. It is engaged in the business of
housing and related loan activities.
Pro'ucts
ortgage <oans , which includes Fousing <oans and <oans against )roperty.
;apital arket (inance, which includes <oans against Securities, )romoter (unding,
argin (unding, I)G financing and other structured lending transactions.
@old <oans , which includes finance against security of mainly used gold ornaments.
Fealthcare (inance , which includes finance for medical e&uipments and pro!ect funding
in the healthcare sector.
29
II2L "o,' Loan
@old loan or loan against gold is the easiest and &uickest way for servicing your financial needs.
'o avail a gold loan, all you need to do is pledge your gold ornaments with us and they would
provide you with a loan amount as per the market value of your gold. Enlike other loans, gold
loan does not re&uire you to provide any income or salary proof. oreover, it has comparatively
lower interest rates? re&uires lesser documentation, and hence is processed in lesser time.
'hey at II(< provide ma$imum loan against your gold at lowest interest rates. ,e have a strong
presence )an-India and have serviced a large number of customers in a very short span. ,e offer
different types of schemes as per your re&uirement and convenience. (ollowing are the main
features of our loans:-
<oan amount ranges from min Rs 1,888 to ma$ Rs 08,88,888
'enor for loans ranges from = months to 02 months
<oan can be paid back on a monthly or &uarterly basis
Interest # <oan *mount due can be paid at any of our @old <oan branches pan-India
inimal amount of paperwork and documentation is re&uired
<oan gets processed in as low as 1 minutes
Iariety of schemes are available to chose from
+our @old is insured and secured safely with us in fire and burglary proof vaults
Loan )is0ursement Proce'ure
27
Customers
;ustomers are typically small businessmen, vendors, traders, farmers and salaried individuals,
who for reasons of convenience, accessibility or necessity, avail of our credit facilities by
pledging their gold !ewellery with them rather than by taking loans from banks and other
financial institutions.
P,a/ers in the "o,' Loan In'ustr/
=8
'he key players in the Indian gold loan market include the unorgani6ed sector, banks J
public#private#cooperatives and "B(;s.
,hile the unorgani6ed sector, comprising local pawnbrokers and moneylenders, has
traditionally dominated the gold loan market for many decades and still commands nearly
D14 of the market, the organi6ed sector, led by "B(;s, is catching up fast.
'he organi6ed sector has grown at a rapid pace of 384 ;*@R from 2882 to 2808and is
e$pected to grow by ==4 to 304 ;*@R in 2800. *nd in doing so, these companies are
challenging the dominance of the large unorgani6ed sector.
List o. nominate' 0anBs
=0
0. *llahabad Bank
2. Bank of "ova Scotia
=. Bank of India
3. ;anara Bank
1. ;orporation Bank
C. %ena Bank
D. F%(; Bank <td.
9. I;I;I Bank <td.
7. Indian Gverseas Bank
08. IndusInd Bank <td.
00.Griental Bank
02 )un!ab "ational Bank
0= State Bank of India
03 Enion Bank of India
List o. MaDor N32Cs
uthoot (inance
annapuram @old loan
uthoot (incorp
Reliance capital
Narvy @old <oan
Unor1aniEe' Sector
oneylenders
arwadis -5ewelers/
)awnbrokers
=2
CHAPER 6
Research Report
==
O3AECI!E O2 HE SU)#
'o find out the competitors operating in the @old <oan arket.
'o find out the awareness level of II(< providing loan against gold
'o find out the occupation and the income group who prefers gold loan
'o find out the perception of the people regarding loan against gold
'o find out the preference of people for @old banks or !wellers
'o find the futuristic scope of gold loan market
'o give recommendations to II(< for better marketing activities and strategic planning.
H#POHESIS
Fypothesis - 0
=3
Fo: )eople are not aware about the @old <oan.
Fa: )eople are aware about the @old <oan
Fypothesis J 2
Fo : )eople prefer @old banks or "B(;>s for @old <oans.
Fa : )eople prefer 5wellers for @old <oans.
RESEARCH MEHO)OLO"#
=1
'he methodology section is the blue print for researcher activity and specifies bow the
investigator intents to study the people or describe social settings. In other words the
methodology section make e$plicit the study desire and constitutes the Phow to do itQ phase.
Researcher has put his best possible effort to do this research and collect the necessary
information to learn about this topic thoroughly.
Research )esi1n:
%escriptive Research: %escriptive research is also called Statistical Research. 'he main goal of
this type of research is to describe the data and characteristics about what is being studied. 'he
idea behind this type of research is to study fre&uencies, averages, and other statistical
calculations. *lthough this research is highly accurate, it does not gather the causes behind a
situation. %escriptive research is mainly done when a researcher wants to gain a better
understanding of a topic for e$ample, a fro6en ready meals company learns that there is a
growing demand for fresh ready meals but doesn>t know much about the area of fresh food and
so has to carry out research in order to gain a better understanding.
Samp,in1 )esi1n
%= Samp,e SiEe:
'he sample si6e of my pro!ect is 088. Gut of which only D8 people attempted all the
&uestions. Gther =8 have not taken gold loan attempted only 1 &uestions.
;= Samp,e Unit:
@old 5ewelers, )eople who have taken loan against gold
<= Samp,e Metho':
=C
'he sample is selected in a non probability convenience sampling, irrespective of them
taken gold loan or not or availing the services or not. It was collected through mails and
personal visits to the known as well as unknown persons, by formal and informal talks
and through filling up the &uestionnaire prepared.
)ata sources:
Research is totally based on primary data. Secondary data can be used only for the reference.
Research has been done by primary data collection, and primary data has been collected by
interacting with various people. 'he secondary data has been collected through various !ournals,
websites and some special publications.
)ata Co,,ection Metho':
Survey ethod: 'he Survey method is the techni&ue of gathering data by asking &uestions to
people who are thought to have desired information. * formal list of &uestionnaire is prepared.
@enerally a non disguised approach is used. 'he respondents are asked &uestions on their
demographic interest opinion.
)ata Co,,ection oo,:
'he &uestionnaire was prepared and administered to collect the relevant primary data. 'he data
collection method was based on Ruestionnaire.
=D
Ana,/sisC2in'in1s
=9
%= /pes o. Loans avai,e' 0/ Peop,e
(indings:- @raph shows the general preference of loan taken by people. )ersonal
loans scored high followed by gold loan with home loan trailing far behind.
=7
;= A>areness )rivers
(indings:- 'I advertisements have the largest impact in creating awareness amongst the masses
followed by good publicity.
38
<= MaDor 2actors that a..ects Loan
(indings:- a$imum loan amount is of paramount importance while choosing a loan instrument
followed by convenience : interest rates.
30
6= Most ,iBe,/ Assets to 0e P,e'1e
(indings:- 'his shows that gold is the most convenient collateral that is pledged whereas home is
hesitantly parted
32
F= Reasons .or not taBin1 "o,' Loans
(indings:- 'his shows sentimental attachment of people for gold ornaments who do not wish to
pledge gold.
3=
G= Pre..ere' "o,' P,e'1in1 Out,et
(indings:- 5ewelers were most preferred by people for taking gold loan followed by "B(;>s and
lastly banks.
33
H= Pre..er' .or A>e,,ers
(indings:- 'rust and the ease of getting a loan coupled with a good value for gold were the
reasons !ewelers scored.
31
I= Pre.erence .or N32C4s
(indings:- * combination of competitive interest rates, short disbursal times and a high <'I ratio
were the favorite factors.
3C
&= "ro>th Inhi0itin1 .actors .or N32C4s
(indings:- <ack of awareness was the ma!or spoke in the wheel inhibiting business growth of
"B(;>s.
H#POHESIS ESIN"
3D
Fypothesis -0

Fo : )eople are not aware about the @old <oan.
Fa : )eople are aware about the @old <oan.
(rom the analysis done above, it could be easily seen that ma!ority of the responds are aware
about the @old <oan.
'his could be easily reflected from &uestion 0,2 and 3.
(rom &uestion 0 we came to know that around 314 of peoples are aware about the @old <oan.
(rom &uestion 2 we came to know that around 294 of peoples knows about @old <oan by the
information spread through word of mouth.
(rom &uestion 3 we came to know that around C34 people use their @G<% to avail the <oan
Conc,usion:
Fence the researcher Re!ects the "ull hypothesis.
'hus it is proved that people are aware about the @old <oan.
Fypothesis -2
39
Fo : )eople prefer @old Bank or "%(;>s for @old loan
Fa : )eople prefer 5wellers for @old <oan.
(rom the analysis done above , it could be easily seen that )eople prefer 5wellers to avail the
@old <oan.
(rom &uestion C we came to know that around C34 people use 5wellers to avail the @old <oan.
(rom &uestion D we came to know that around =C4 people use 5wellers for @old <oan because
of their P;R.%IBI<I'+Q.
Conc,usion:
Fence the researcher Re!ects the "ull hypothesis.
37
"B(;>s growth rates in the last two years are
astronomically high with loan growth at more
than 0084 and RG.s of 104 plus. 'hese levels
are not sustainable. Besides the companies have
been adding large number of branches every year
and unless they can sustain solid business, some
of these branches could struggle operationally.
2LUCUAION IN PRICE AN) )EMAN) O2 "OL):$ uch of the "B(;>s business
is dependent on the favorable perception of gold. ,ere gold prices to crash it could affect
demand for gold loans and !eopardi6e the margin ratios of the companies.
HREA O2 R3I RE"ULAIONS:$ 'here is a lot of talk about the RBI potentially taking
a lot of measures to curb the rapid growth seen in gold loan companies. Regulatory measures
that have been mooted include higher margin ratios and a cap on branch e$pansion.
RISE O2 COMPEIORS:$ Recent influ$ of a large number of banks and "B(;s into the
gold loan market.
INE"RI# O2 EMPLO#EES:$ "B(;>s place a great deal of importance on the integrity
of its employees who are in a position to take advantage of their position by accepting
fraudulent gold or stealing the gold. Besides unless security measures are up to the mark, the
"B(; branches run the risk of being burgled.
CHAN"IN" SCENARIO
18
*s we enter the 20
st
century, several opportunities and events have led to the sculpting of
the socio-economic landscape of India.
India is endowed with a large percentage of youth population, which presents interesting
opportunities and edgy risks for today>s "B(;>s.
;onsiderable shift from conservative to a more liberal lifestyle, !ob profiles and
opportunities have increased the spending power of youth multifold. 'his empowers them
to lavishly spend money whilst fulfilling their latent desires of a lu$urious lifestyle.
'he generation is impatient, willing to spend at the drop of a hat to gain gratification
and flaunt audaciously. Such sentiments offer new insights and a chance for the "B(;>s
to multiply their business by slightly tweaking their strategies.
.mphasis on education, pursuing higher degrees, elite medical facilities are the
aspirations of today>s modern Indians. Fowever, these re&uire generous monetary influ$
at the right time. 'his need should be identified and dealt with by the "B(;>s.
10
RECOMMEN)AION
C
CONCLUSION
Reccomen'ations
12
CREAE A(ARENESS 5 USE MASS ME)IA

Bringing to the attention of people that private companies are also involved in gold loan
is of prime importance.
'his awareness drive can be initiated by -:
*iring 'I commercials e$plaining the product and concept,
%istributing prints and pamphlets
*iring on radio stations
Installing hoardings.
S'RG"@ BR*"%I"@ G( 'F. ;F*I"- Brand ambassadors in the form of
famous celebrities can be employed to instill confidence in the brand.
CONCLUSION
(or borrowers, gold loans have emerged as one of the best means of raising &uick, short-term
capital. (or lenders, gold loans are more advantageous compared with home and car loans
because of the shorter tenures, lower processing time and cost, and greater returns due to higher
1=
interest rates. 'hese factors, along with appreciation in value of gold, have led to an e$plosion in
the gold loan market.
(rom the research done above , it has been seen that Inspite of many Banks and "B(;>s people
prefer 5wellers for @old <oan. It has been seen that the main reason for this purpose is the
P'RES'Q and P;R.%II<I'+Q they provide.
Fence to fetch this opportunity "B(;>s should start targeting the people who goes to 5wellers
and should made them understand about the policies and benefits provided by Banks and
"B(;>s
3i0,io1raph/
(e0sites:
13
www.indiainfoline.com
http:##www.neytri.com#gold-loans-what-you-must-know#
http:##www.muthootfinance.com#services#gold-loan.html
http:##thegoldwatcher.blogspot.com#2800#81#indian-gold-loan-market-
e$panding.html
Re.erences:
Indian @old <oan arket J ;ogni6ant
'he .conomic 'imes
annapuram @eneral <easing (inance <imited 2800
11