EXECUTIVE SUMMARY

As part of the curriculum of the Master's degree in Business Administration at

Visvesvaraya Technological University. I am supposed to undertake project work in an
organization after the third semester. The internship allowed me to know the realities of
the business and the application of theoretical knowledge in a practical environment. In
fact, the purpose of the training is to create an administrator with greater adaptability and
who can provide a creative solution to the organization with which he works, so that he
helps students become a complete administrator for the industry and efficient . This
internship report is an effort of mine to fulfill it.

Project work has provided a platform to bridge the gap between theory and practice. It
gave us the opportunity to relate the concepts of management with the actual functioning
of the organizations. This study was conducted by collecting data from various sources.
The study is mainly based on the primary and secondary data, and the secondary data has
been compiled from the books and the website.

The study is mainly aimed at a general presentation of the functioning of an organization

and to relate the theoretical concepts, the study has been carried out by collecting relevant
data from company records and also the observations made during the course of the
internship training.

The report manages the prologue to the profile of the business and the profile of the
organization. The back of the report manages a particular point that covers the profile of the
association of the organization. This report for the most part comprises of the idea of the
business and the offices that have been given in the association. Your vision, mission and
strategies, profile of items and administrations, zone of activity, offices, contenders data,
SWOT investigation, future development and points of view. The Advances and Advances
is an indispensable usage that starts from the minute a planned borrower enters the branch
and plays out the dispersion and check of the credit with the goal of confirming and keeping
up the nature of the advances and the administration of the credit chance. Credits and
advances is the evaluation of the feasibility of long haul arranged assets regarding investors'
riches and the official examination of the considerable number of expenses and advantages
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of the undertaking that is utilized to clarify the task proposition. The Bank has predicted and
received the Code of Best Practices throughout the years. This, as a result, speaks to the bank's
convictions towards a compelling Corporate Administration. The progression of the
budgetary area requires another innovation to deal with the expanding weights on the viability
of banks and money related part organizations.

Assess the business immovability, proficiency, financial soundness and liquidity

circumstance of the bank utilizing endless proportions. The information was likewise
gathered through the immediate strategy and the acknowledged technique for gathering the
data is an individual meeting and fiscal concentrates were additionally taken to accumulate
the data. The exploration think about is helped out through the examination of the money
related affirmation and the individual talk. The examination demonstrates the credits and
advances of the organization IIFL.

I believe it's an extraordinary open door for me to work with this organization and be a piece
of it. The preparation has improved my certainty level and in the process I have procured
numerous new abilities. It gives me experience on the genuine working of the distinctive
bureaus of the association, with interdepartmental relations and their significance. Along
these lines, helping me broadly, to become familiar with the workplace of the organization,
the act of its rules and the methodology of the organization and furthermore how to function
in testing and genuine conditions.

At long last, it was a lovely encounter amid my whole preparing period at IIFL, Chintamani
branch. what's more, I trust that my exertion in the planning of the undertaking is palatable
to the degree essential.

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 CHAPTER – 1
INTRODUCTION

INDUSTRY PROFILE

India has a various economic place gift method speedy expansion, every in phrases of
robust increase of existing economic offerings companies and new entities coming into the
marketplace. The arena comprises enterprise banks, insurance businesses, non-banking
financial organizations, co-operatives, pension finances, mutual finances and different
smaller economic entities. The banking regulator has allowed new entities which includes
bills banks to be created currently thereby together with to the forms of entities operating
within the region. But, the economic quarter in India is predominantly a banking quarter
with commercial banks accounting for added than sixty four in step with cent of the overall
belongings held by using the usage of the monetary gadget.

Mutual fund (mf) organization in India has visible fast growth in assets underneath control
(aum). Standard aim of the industry stood at rs 24.03 trillion (us$ 342.01 billion) among
April - November 2018. On the same time the amount of mutual fund (mf) equity portfolios
reached a immoderate of seventy 4.6 million as of June 2018.

Every different critical component of India’s economic industry is the coverage enterprise.
The coverage enterprise has been increasing at a quick pace. The full first 12 months
pinnacle charge of existence insurance corporations reached rs 193,866.23crore (us$ 30.10
billion) throughout financial yr 2018.

At the side of the secondary marketplace, the marketplace for preliminary public gives
(ipos) has moreover witnessed speedy enlargement. The whole amount of preliminary
public services (ipo) extended to us$ 1.2 billion raised from 37 between April – June 2018.

Over the last few years India has witnessed a large boom in mergers and acquisition (m&a)
hobby. In h12018, seventy four deals of acquisition came about in monetary quarter. The
complete cost of such transactions turns into us$ 4.166 billion.
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Furthermore, India’s leading bourse Bombay stock alternate (bse) will set up a joint
assignment with ebixinc to build a strong insurance distribution network inside the use via
a new distribution alternate platform.

Speculations/Trends

• Investments via outside portfolio economic professionals (fpis) in indian capital

markets have finished Rs 6,310 crore (us$ 899.12 million) up to november 22, 2018.

• as of October 2018, the cash related attention lab has selected eleven fintech trend-
setters with a mission people$ nine. five million superior by means of the iim-ahmedabad's
bharat incorporation hobby (bii) along jp Morgan, Michael and Susan dell status quo, and
the invoice and Melinda doorways status quo.

• The personal value and investment (pe/vc) ventures got here to us$ 25.20 billion
between Januarys to October 2018.

Government sports

• In December, 2018, securities and exchange main frame of india (sebi) proposed
direct overseas posting of Indian groups and different administrative adjustments.

• Bombay stock alternate (bse) provided week after week fates and alternatives
contracts on sensex 50 listing from October 26, 2018.

• in September 2018, sebi asked proposals to boost policies with a purpose to enhance
the overall administration fashions for guarantors, cross-between or framework suppliers
inside the cash associated market.

• the legislature of india propelled india put up installments bank (ippb), to offer each
locale one department with a purpose to help increment provincial entrance. As of august
2018, branches out of 650 branches are actually operational.

Gold has dependably been an esteemed ware. Especially in India, it is considered as

favorable, and utilized as gems, coins and different resources. Because of their high esteem,
individuals have been taking credits against gold trimmings for a considerable length of

4
time. Till about 10 years back, a large portion of such loaning exercises used to occur in
the sloppy area through pawnbrokers and cash banks. Be that as it may, the situation has
changed with the section of composed players. As indicated by our most recent report, in
the previous couple of years, banks and non-banking fund organizations (NBFCs) have
made a critical nearness in the gold credit advertise. It is foreseen that the sorted out gold
credit market will develop at a compound yearly rate of 25.5% amid FY 2012 to FY 2015.

India is one of the biggest buyers of gold with an expected load of 23,000 tons. Around 40
percent of the gold advance market is in South India. Open part banks and NBFCs like
Muthoot Money and Manappuram control almost 81 percent of the composed gold advance
market. Casual players in the part like pawn dealers and cash banks, which are unregulated,
control 40-60 percent of the gold advance exchanges in the nation, state gauges.

The report said development drivers for the business would be prohibition from standard
individual and retail advances by planned banks, changing dispositions towards applying
for gold credits, topographical requests, vast volume of existing gold held by provincial
networks, accessibility of gold advance in very adaptable terms and lower default rates in
the supply side.

The report said gold credit organizations are required to keep delinking the gold value
instability hazard by offering more variations of lower residency advance items. Expanded
challenge from Little Money Banks (SFBs) will lessen the yield and players ought to put
resources into innovation and computerization all things considered. The space is probably
going to see fascinating associations with fintechs to help streamline and mechanize forms.

The report said the business is on a development direction and key players have begun
utilizing innovation (online gold advance), customized credit plans, improved marking and
focused on advertising. Another key late activity was to de-interface gold value instability
to business benefit. Despite the fact that demonetization caused an impermanent deficit in
business, the negative effect was brief as key players moved to computerized installments.
The advanced environment has made validity and has tilted for the specific gold advance
NBFCs.

Accuses Related of Gold Credit:

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• Loan making ready rate: at the same time as a portion of the expert co-ops may also
waiver those charges, a few banks do fee a coping with cost.

• Valuation charge: these are the costs to be paid to the valuator. Those costs are
moreover express to the professional organisation and people having in-house valuators
don't fee any extra sum for valuation.

• Overdue installment punishment: the greater part of the professional co-ops price
past due installment punishment and this can also range from one company to the
following.

• Pre-installment punishment: a massive portion of the expert co-ops don't rate a

punishment for compensation ear lier than the improvement residency is finished.
Anyways, some may additionally at present have this price set up.

ORGANIZATION PROFILE

IIFL Possessions Restricted (in the past India Infoline Constrained) d/b/an IIFLand India
Infoline, is an Indian expanded money related administrations organization headquartered
in Mumbai. The association was established by Nirmal Jain. IIFL and its gathering
organizations are sponsored by Canadian financial specialist Prem Watsa, private value
firm Broad Atlanticand CDC Gathering, the UK Government's private value arm. IIFL is
positioned among the best seven budgetary combinations in India and as the top
autonomous money related administrations firm in India regarding market capitalization.
Nirmal Jain is the Executive of the gathering, while R Venkataraman is the Gathering
Overseeing Chief and Co-Advertiser.

History of The Company

IIFL changed into installed on oct 17, 1995 by way of normal jain , a 1986 alumni from
college of Mumbai and a former scholar of Indian basis of the executives, Ahmadabad.
Jain is some of the couple of effective commercial enterprise visionaries submit the
monetary development time in India brought pv narasimha rao. Jain become currently

6
applied with Hindustan switch confined. The employer was established as integrity
exploration and administrations personal confined which gave inquire approximately on
the Indian financial system, organizations and corporate. The call became later changed to
India info line constrained.
More than one years into the enterprise, the affiliation ended up with customers which
covered studies institutions, banks and corporate. They at that factor started propelling their
examination items to become step by step recognizable inside the marketplace. In the inside
the period in-between, the dotcom transformation become starting to arise in India. The
web site changed into made in 1999.
Making the enterprise one stride beforehand this accumulating of experts opened an
exchanging entryway – www.5paisa.com – in 2000 as a result moved into the matter of
being a complete management broker business enterprise. Amid this time they augmented
their dissemination set up.
In 2001, the Indian dotcom industry saw a defeat. Amid this time, persevering with wound
up extreme. The affiliation at that factor chose to tie-up with driving extra safety agency
ICICI prudential, on this manner setting to make use of its dissemination set up and turning
into India’s first corporate operator for protection.
Nowadays, IIFL possessions restricted (Bloomberg code: IIFL in, NSE: IIFL, BSE:
532636) is India’s using coordinated cash related administrations bunch with specific
running organizations, in the main non-banking and lodging account, riches and useful
resource the board, broker, budgetary object dissemination, project banking, institutional
values, realty and property caution administrations.
IIFL possessions has a solidified general belongings of over rs forty five billion;
international nearness in Canada, us, united kingdom, Singapore, Hong Kong, Switzerland,
Mauritius, and UAE; a employee personnel of greater than 10,500, a stable system of more
than 2,250 management regions spread crosswise over india, over rs 233 billion boost
assets below management; over rs 1,250 bn riches resources underneath exhortation, the
board and dissemination; more than 500 stocks beneath research and greater than three
hundred of the sector's pinnacle institutional financial professionals depending on IIFL's
examination.

INCLUSION IN NSEL CASE:

7
IIFL alongside couple of other top agents have been blamed for different inconsistencies
on NSEL. Organizations including EOW-Mumbai and SFIO have discovered the main 5
specialists including IIFL liable of incorrect spelling NSEL contracts, KYC control,
customer code change, benami exchanges and implantation of dark cash through their
NBFCs on the Trade stage. The EOW had captured senior workers of three financiers in
particular IIFL, Motilal Oswal& Anand Rathi in Walk, 2015. This was trailed by the market
controller, SEBI issuing various show-cause notification to the agents in 2016, 2017, 2018
and 2019 separately. The EOW-Mumbai in its beneficial charge sheet has likewise blamed
the three financiers IIFL, Motilal Oswal& Anand Rathi of tricking customers. In February
2019, SEBI announced IIFL and Motilal Oswal 'not fit and appropriate' as ware subordinate
dealers dependent on the suggestions of SFIO and EOW's report.
Grants
IIFL has been granted by Euro cash for the Best Private Financial Administrations
Generally in India for 2017. It has likewise been pronounced as the Best Private Bank in
India at the Worldwide Fund Best Private Bank Grants in 2017.
• Euro cash grants IIFL for Best Private Financial Administrations - India, 2017.
• ET NOW - Managing Room Legends, 2017.

PROCESS OF THE COMPANY

In the occasion client neglects to settle the advance Account or reimburse
intrigue/portions/Principal Amount/some other sum, charges the aggregate Outstanding
post the fulfillment of Loan residency or something else IIFL will issue the notice at client
address given in this Application by giving 10 days time from the issue of the notice to
client for reimbursement of the aggregate Outstanding. In the occasion client neglects to
reimburse the aggregate Outstanding even in the wake of giving 10 days see for
reimbursement client Pledged Gold Articles might be sold by IIFL in a Public Auction
according to IIFL arrangement The Auction will be reported to the Public by method for
the issue of the Advertisement in no less than two papers of which something like one
paper will be of a vernacular dialect and another will be a national day by day paper. On
the off chance that any of the Pledged Articles are sold at a value lower than the sum due
from client, client will pay the shortage add up to IIFL In the event that default in
reimbursing the deficiency sum by the client, IIFL has all the privilege to start lawful
8
activity against the client and claim every one of the movables and unfaltering's property
having a place with client. In the event that the Pledged Articles are sold at a more
expensive rate than the sums due from the surplus sum assuming any, might be discounted
to client in the wake of altering the various sums payable by client to IIFL. On the off
chance that misfortunes are brought about marked down, the equivalent will be repaid by
client to IIFL and in the occasion client can't make great such misfortunes IIFL may
organize legitimate continuing to recoup the misfortunes from client resources/property.
IIFL will not be in charge of any misfortunes or expenses brought about in moving the
equivalent whenever caused such offers of promised articles.
IIFL maintains whatever authority is needed to move any of the Pledged Articles by
closeout anytime of time, even before the expiry of a year if IIFL is persuaded that the
market cost or the most extreme feasible incentive by clearance of the Pledged Articles, is
probably going to descend underneath or equivalent to the aggregate sum payable by client,
by method for key measure of the Loan premium and different sums payable in regard of
the Loan , in the wake of serving a notice of 10 days to client at his location given in this
application.
Interest rates
The loan costs extend from 10% to 15% contingent upon the client and vehicle portion.
The client portion involves independently employed corporate specialists and association
firms, while vehicle section incorporates different vehicles for example trucks transports
autos and so forth.

The rate relies upon a great deal of elements for example the quantity of vehicles claimed
by the borrower his business turnover reimbursement track record from different agents
(assuming any) and so forth The money related organizations can affirm the rate of
premium once they have contemplated the reports. The loan cost might be settled or
variable.

Objectives of The Company

 To know the business arrangement of the offer market
 To know how the estimation of offer is determined
 To know the different factors on which costs of offer varies

9
 To examinations the adjustments in exchanging method after the trade moved from
objection framework to internet exchanging framework
 To realize the different administration given by the India information line restricted
 To know how IIFL is best administration given as a stock representative in the district
 To learn about whether individuals are happy with IIFL and the executives framework
or not

Rewards and Awards of the Company

April 28, 2000 Change from Private Constrained to Open Restricted Organization May 23,
2000 To focus on the retail budgetary center individual business through an online set-up.
Walk 23, 2001 To focus on the retail cash related go-between business through disengaged
and likewise online set-up. Accomplishments 1995 - Joined as an esteem investigate and
guiding firm with a client base that included driving FIIs banks directing firms and
corporate. 1999 - Rebuilt the arrangement of activity to get a handle on the web moved
archives.indiainfoline.com collected capital from supposed private esteem monetary pros.
2000 - Initiated the movement of individual budgetary things; impelled online esteem
trading entered life inclusion spread as a corporate pro. Perceived by Forbes as 'Best of the
Internet' and 'ought to scrutinize for monetary expert's 2004 - Obtained items broking grant
pushed Portfolio The board Administration.

2005-Recorded on the Indian securities trades India Data line settles an esteem band
between Rs 70 and Rs 80 for its pending open issue. The association is turning out with
open issue of 1.18 crore gives to an expected worth of Rs 10 through the book assembling
course The issue is slated to open on April 21 and close on April 27 Enam Money related
Specialists Private Ltd would be the sole book running lead head to the issue while In time
Range Vault Ltd is the selection focus to the issue. India Data line open issue gets 6.6
events oversubscription-IIL picks R Mohan as VP-India Information line Ltd has taught
that the Organization has gone into a publicizing simultaneousness with Times Gathering
where in the Organization and other social event associations would spend about Rupees
Thirty Crores all through the accompanying 5 years in print and also non print media of
The Occasions Gathering.- India Data line to buy 75-pc stake in Moneytree2006 India

10
Information line dispatches prohibitive SMS Esteem Included Administration India
Information line goes into imperative simultaneousness with Saraswat

Bank-India Information line to dispatch stock trading on cell phones India information line
to take off MCX, NCDEX, DGCX programming Procured enlistment of DGCX; pushed
hypothesis dealing with a record organizations

2007 - Propelled a select trading stage; drafted an institutional qualities gathering; confined
a Singapore reinforcement raised over USD 300 mn in the social affair pushed buyer
subsidize business under the 'Money line' mark. concede from Money Asia Most Improved
Financier India awar from Asia money

India Data line Ltd has instructed that according to the renunciation of Mr. Nimish Mehta,
Organization Secretary and Consistence Officer of the Organization. Ms. Falguni Sanghvi
has been assigned as the Organization Secretary with effect from October 07,2008.- The
Organization has parts its hypothetical worth from Rs10/to Rs2/

2009 - Got enlistment for a cabin account association from the National Lodging Bank got
Fastest creating Value Broking House Huge firms in India by Dun and Bradstreet

2010-Got on a basic dimension underwriting for investment of the Singapore Stock Trade
Got enlistment of the Colombo Stock Trade

2011-Propelled IIFL Shared Reserve IIFL got SEBI signal for Common Store business
IIFL reports dispatch of its Life Time Paid ahead of time Whenever Cash back agent thing

2012-"PFRDA names India Data line Account Ltd IIFL as Purposes of Quality Fly under
New Benefits Framework NPS

VISION AND MISSION

Vision:
To be seen comprehensively and all around as a particular improvement affiliation
equivalent with the best in the field covering the entire scope of the advancement activities
and organizations in the structure division.
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Mission:
From a spearheading start-up in 1995, we have constantly created to ascend as one of
India's driving cash related organizations gathering. As far back as our beginning our
strategy has been to modify our capacities and market bits of information to the country's
rapidly changing business condition. Our improvement course has quite recently served to
fortify our accentuation on our space of fiscal organizations.

Quality Strategy

Decency

Decency in our exchanges with all partners including workers, clients, and sellers, deprived
of dread or support.

Trustworthiness

Respectability and genuineness the very pinnacle of nature, in letter, in soul, and in the
entirety of our dealings with individuals, interior or outer.

Item And Administration

Home loan Credit

In home advance credit we have following have contract propels given by IIFL.

Home Advances

IIFL offers credits to purchase of private properties, home improvement, home upgrade
and plot propels through its reinforcement India Information line Lodging Account
Constrained The best residency for hotel progresses is 240 months. The Organization
sources home development applications through its direct sourcing channel DSA
framework and trade channels The Organization successfully changed over twofold the
amount of customers throughout the last financial Exercises 201314, in the midst of the
year, the Organization started focusing on extending lodging advances to the low-pay part
ticket size of credits up to Rs.2.5 million, inferable from higher intrigue. The idea of
moderate cabin in home credits extended altogether in 2013-14 over the span of the last

12
money related. IIFL effects on its expansive branch organize making leads and sourcing
clients Its solid systems and methods have helped in structure a continuing and productive
portfolio. In an idea to go retail IIFL began and set up a strong course of action of
administering guidelines to go to customers the country over.

Advance against Property

Advances against property (LAP) are obliged working capital necessities, business use,
new fitting property acquirement and improvement financing LAP continues being the
greatest and the most overall thing inside the home advances area. The autonomously
utilized segment, which is the main section of LAP requires capable checks and controls
to ensure a quality portfolio and danger decline IIFL has grasped key checks as for the
borrowers 'credit establishment and practices authentic and particular security appraisal
IIFL impacts on outside and furthermore inside assessment of properties including
valuations by all inclusive property pros for huge home advance credits. The affirmation
strategy contains supported and self-sufficient coercion control checks Activities, 2013-
14IIFL focused on the retail section and adequately diminished the ordinary ticket gauge
by 36 percent in LAP when stood out from 2012-13.IIFL fortified its in-house assembling
and genuine gatherings for improved aggregation viability.

Gold Advances

IIFL typically considers little masters traders vendors farmers and salaried people, who,
for reasons of solace transparency or need guarantee their gold jewelleryIIFL gives revamp
retail credit things subject to the borrowers 'essentials IIFL administers up to 75 percent of
the gold regard which gives an adequate support and offers concentrated rates on revamp
plans with versatile portion decisions. As a part of the affirmation methodology IIFL
officers endeavor suggested checks and lead borrower examinations Characteristics have
been affirmed and arranged in asset quality practices and have an unsanctioned romance
of something like one year. Each branch has palatable security game plans as suggested by
RBI.

Commercial Vehicle Loan

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IIFL entered this business part in December 2012 offering advances to a wide scope of
business vehicles new and used business vehicles and transports pretty much nothing, light,
medium and considerable business vehicles, among others The business vehicle financing
bunch sources clients through its prompt arrangements propel, organize moving experts,
affirmed dealers of various makers and besides the entire IIFL branch orchestrate. The
business vehicle back gathering includes people from the sourcing division arrangements
and aggregations and the underwriting office credit and assignments The Organization has
placed assets into automated structures and methodology; purposely discovered focus
focuses support snappier administering and help cut down turnaround time Credit
suggestions are surveyed reliant on parameters including industry experience, getting
history, advance documentation and critical KYC records as embraced by the RBI.

Departmental Diagram
IIFL Gold Credit:
Gold credit or advance against gold is the least requesting and speediest way for altering
your cash related necessities. To benefit a gold development, you ought to just promise
your gold embellishments with us and we would give you a credit aggregate as per the
market estimation of your gold. Rather than various advances gold credit does not
anticipate that you should give any compensation or pay check. Also, it has moderately cut
down advance expenses requires lesser documentation and from now on is set up in lesser
time.
We at IIFL give most extraordinary development against your gold at any rate credit costs.
We have a strong closeness Dish India and have upgraded a broad number of customers in
a restricted ability to center. We offer various sorts of plans as per your need and
convenience.

SCHEME OF GOLD LOAN:

Scheme Scheme Funding Purity ROI Per gram Frequency

Code Name % monthly Rate

331 DHAMAL Carat 18carat and 1.75 1850 Monthly

14
 Based above

334 DHMALQ Carat 18carat and 2.20 1750 Quarterly

Based above

346 JAN Carat 18carat and 1.00 1250 Monthly

SHAKTI Based above

366 SARAL 100% 18carat and 1.30 1600 Monthly

above

371 BHARAT 100% 20carat and 1.50 1750 Monthly

NIRMAN 20 above

374 SARAL 3Q 100% 20carat and 1.60 1650 Quarterly

above

376 SARAL 4M 100% 21carat and 1.75 1800 Monthly

above

379 SARAL 4Q 100% 21carat and 1.80 1750 Quarterly

above

381 SARAL 5M 100% 21carat and 2.00 1850 Monthly

above

Area of Operation
 India
 Canada
 United States
 United Kingdom
 Switzerland
 Singapore
 Hong Kong
 Mauritius

Infrastructure Facility

Training for recently selected workers.

15
 Conserve regular assets and advance reusing and reuse.

Conduct offices to task in an ecologically mindful way other than meeting statutory
commitments as relevant by including natural mindfulness among the workers and
partners.

SWOT ANALYSIS

Quality: - IIFL quality is his advantage gathering strategy in month to month intrigue
period Five days term to give clients since he sets aside effort to paid time

Shortcoming: - IIFL shortcoming is punishment is 0.5 is according to plan and friends'

arrangement advance intrigue and in all respects carefully excessively received by IIFL.

Opportunity: - The standpoint for the economy and budgetary divisions has turned
unmistakably positive. There are astonishing open doors for your Organization. With
monetary movement grabbing, it appears to be great occasions are ahead. In any case, great
occasions don't kill the danger of smugness and grave mistakes. A money organization in
the matter of loaning must be based on strong basics to benefit as much as possible from
circumstances. Our reputation has been based on strong development for example a
development with a solid accentuation on resource quality and administrative consistence.
Along these lines, we trust that we measure up to make the most out of the astounding open
doors that lie ahead.

Dangers: - IIFL contenders for ex. Muthoot, Mannapuram and HDFC are principle
contenders for IIFL that dangers for IIFL.

Future Development And Outline

Moody's Speculators Administration says that the liquidity requirements looked by some
nonbank monetary organizations (NBFIs) in India (Baa2 stable), after the default of
Foundation Renting and Money related Administrations Ltd (IL&FS) (unrated) in
September 2018, will probably fix in general credit supply in the nation.

16
"Therefore, India's Gross domestic product development will ease back to simply above
7% for monetary 2019 and 2020. This outcome is underneath an expected 7.4% outturn in
the monetary year finishing Walk 2018 and beneath the get in development that we
imagined a couple of months back," says Michael Taylor, a Moody's Overseeing Executive
and Boss Credit Officer for Asia Pacific. "Furthermore, any further trouble in the Indian
NBFI division will present critical drawback dangers to India's development standpoint,"
Taylor included.

Moody's clarifies that India's NBFIs are a critical supplier of credit to the nation's economy
and, in the monetary year finished 31 Walk 2018, represented about 17% of all out
advances and 33% of all out retail advances.

"In a drawback situation, a more keen log jam in NBFI credit supply would altogether fix
in general credit accessibility, drive up acquiring costs and lessen financial development
by around a large portion of a rate point over a couple of years," says Satisfaction
Rankothge, a Moody's VP and Senior Examiner.

"Flimsier ostensible Gross domestic product development over a drawn out period would
burden India's financial quality and the general sovereign credit profile," includes
Rankothge.

FINANCIAL STATEMENT
FINANCIAL STATEMENT OF THE IIFL GOLD LOAN, CHINTAMANI
BRANCH

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 in Rs.. Laks….
Particulars Mar '17 Mar '16 Mar '15
12 mths 12 mths 12 mths

Total Share Capital 63.58 63.31 62.05

Equity Share Capital 63.58 63.31 62.05
Share Application Money 0.15 0.00 0.00
Reserves 1,435.91 1,412.58 1,338.02
Net worth 1,499.64 1,475.89 1,400.07
Secured Loans 0.00 50.00 50.00
Total Debt 0.00 50.00 50.00
Total Liabilities 1,499.64 1,525.89 1,450.07
Mar '17 Mar '16 Mar '15
12 mths 12 mths 12 mths

Gross Block 2.79 1.55 1.48

Less: Accum. Depreciation 0.72 0.63 0.55
Net Block 2.07 0.92 0.93
Investments 1,521.84 1,417.35 1,378.30
Sundry Debtors 1.09 5.24 3.28
Cash and Bank Balance 8.53 3.34 41.62
Total Current Assets 9.62 8.58 44.90
Loans and Advances 37.43 111.84 43.98
Total CA, Loans & Advances 47.05 120.42 88.88
Current Liabilities 65.87 9.92 17.34
Provisions 5.46 4.48 0.70
Total CL & Provisions 71.33 14.40 18.04
Net Current Assets -24.28 106.02 70.84
Total Assets 1,499.63 1,524.29 1,450.07
Contingent Liabilities 37.96 35.55 71.83
Book Value (Rs) 47.17 46.63 45.13

PROFIT AND LOSS ACCOUNT OF IIFL in Rs.. Lakhs….

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Particulars Mar '17 Mar '16 Mar '15
12 mths 12 mths 12 mths

Sales Turnover 142.61 211.41 109.04

Net Sales 142.61 211.41 109.04
Other Income 16.37 0.00 1.00
Total Income 158.98 211.41 110.04

Employee Cost 0.26 8.78 2.17

Selling and Admin Expenses 0.00 0.20 0.00
Miscellaneous Expenses 0.00 5.57 2.25
Total Expenses 0.26 14.55 4.42
Mar '17 Mar '16 Mar '15
12 mths 12 mths 12 mths
Operating Profit 142.35 196.86 104.62
PBDIT 158.72 196.86 105.62
Interest 0.00 6.35 4.33
PBDT 158.72 190.51 101.29
Depreciation 1.93 0.09 0.07
Profit Before Tax 156.79 190.42 101.22
PBT (Post Extra-ord Items) 156.79 190.42 101.22
Tax 0.00 18.45 3.01
Reported Net Profit 156.78 171.98 98.22
Total Value Addition 0.26 14.55 4.41
Equity Dividend 142.92 134.08 90.68
Corporate Dividend Tax 0.06 0.00 0.07

Shares in issue (lakhs) 3,179.08 3,165.37 3,102.34

Earning Per Share (Rs) 4.93 5.43 3.17
Equity Dividend (%) 225.00 212.50 150.00
Book Value (Rs) 47.17 46.63 45.13

19
 CHAPTER – 2

CONCEPTUAL BACKGROUND AND LITERATURE REVIEW

INTRODUCTION TO FINANCE

Fund is one of the real components, which enacts the general development of economy.
Money is the backbone of monetary exercises. The investigation of business account is
worried about the arrangement, stream and utilization of money inside a business
association and with interest for, and supply of, assets for business inside the economy in
general.

This would empower the nation to have supply of assets to the business and farming
persistently. Financial matters issues of the country can be explained serenely through
which independence can be accomplished. In this way the money related framework
assumes a noteworthy job in the structure up the economy. Each undertaking, regardless
of whether huge, medium or little needs money to carry on its tasks to accomplish its
objectives. Henceforth, account is so vital today that it is appropriately said it is life blood
of an undertaking. Without sufficient fund, no venture can achieve its targets. The capacity
of fund has been customarily ordered into two kind's to be specific private account and
open money. It manages the prerequisites, receipts and payment of assets in government
foundations like state, nearby, self-government.

Private money is worried about the necessity, receipts and dispensing of assets in the event
of an individual, a benefit looking for business association and a non-benefit association.
Amid the pre-autonomy period, money related imperatives have hampered the fast
improvement of industry in the nation.

MeaningofFinance

As per Howard and Upton, "money might be characterized as that managerial zone or set
of regulatory capacities in an association which relates with the course of action of each

20
and credit so the association may have the way to do the destinations as palatably as would
be prudent.

As indicated by Anthony, "Budget summaries basically, are interval reports, displayed

every year and mirror a division of the life of a venture into pretty much subjective
bookkeeping period all the more as often as possible a year". The everyday exchanges of a
business are recorded in various auxiliary books.

These exchanges are accounted for in different records and their adjust are taken toward
the finish of the money related period. The point of keeping up different records is to decide
the benefit of the endeavor from the activities of the business and the monetary position.

Business Money
The term 'business money' is far reaching. It suggests accounts of business exercises. The
term, 'business' can be classified into three gatherings: trade, industry and administration.
It is a procedure of rising, giving and overseeing of all the cash to be utilized regarding
business exercises.

The principle highlights of account

1. Speculation Openings

In Fund, Speculation can be clarified as a use of cash for benefit or returns. Speculation
should be possible by:-

Making physical resources with the cash, (for example, improvement of land, getting
business resources, and so forth.),

Carrying on business exercises (like assembling, exchanging, and so forth.), and

Obtaining money related securities, (for example, shares, securities, units of common
assets, and so forth.).

Venture openings are responsibilities of financial assets at various occasions with a desire
for monetary returns later on.

2. Productive Chances
21
In Account, Productive open doors are considered as an essential desire (objective).

Productive open doors connote that the firm should use its accessible assets most
proficiently under the states of vicious aggressive markets.

Gainful open doors will be a dream. It will not result in momentary benefits to the detriment
of long haul gains.

For instance, business continued with rebelliousness of law, dishonest methods for
securing the business, and so on., for the most part may result in tremendous momentary
benefits yet may likewise ruin the smooth plausibility of long haul additions and survival
of business later on.

3. Optimal Blend of Assets

Money is worried about the best ideal blend of assets so as to get the ideal and decided
outcomes separately.

Essentially, reserves are of two kinds, in particular,

Claimed reserves (Advertiser Commitment, Value shares, and so forth.), and

Acquired assets (Bank Credit, Bank overdraft, Debentures, and so forth).

The sythesis of assets ought to be with the end goal that it will not result in loss of benefits
to the Business people (Advertisers) and must recoup the expense of specialty units viably
and productively.

4. Arrangement of Inside Controls

Account is worried about interior controls kept up in the association or work environment.
Interior controls are set of principles and guidelines confined at the commencement phase
of the association, and they are modified according to the prerequisite of its business.

Be that as it may, these tenets and guidelines are observed at different interims to achieve
a similar which have been reliably pursued.

5. Future Basic Leadership

22
Account is worried about the future choice of the association. A "Decent Fund" is a pointer
of development and great returns. This is conceivable just with the great expository choice
of the association. In any case, the choice will be confined by giving more accentuation on
the present and future viewpoint (monetary conditions) separately.

PROLOGUE TO LOANSAND ADVANCES

The time period 'credit score' alludes to the sum acquired by means of one man or woman
from some other. The sum is within the concept of credit score and alludes to the entire
paid to the borrower. Alongside those traces, from the view reason of borrower, it is
'acquiring' and from the view purpose of bank, it's far 'loaning'. Strengthen might be
regarded as 'credit' allowed in which the cash is disbursed and its recuperation is made on
a later date. It's miles an obligation for the borrower. At the same time as allowing
advances, credit score is given for a awesome purpose and for a foreordained duration.
Intrigue is charged at the credit at concurred fee and interims of installment. 'Increase' on
the other hand, is a 'credit score workplace' allowed by way of the financial institution.
Banks deliver propels to a incredible extent for transient functions, as an instance, purchase
of merchandise exchanged and assembly other momentary exchanging liabilities. There
may be a sense of obligation in advance, at the same time as a development is an workplace
being profited of with the aid of the borrower. Be that as it can, similar to credits, propels
are likewise to be reimbursed. For this reason a credit score workplace repayable in
portions over a period is called as strengthen at the same time as a credit score workplace
repayable inner one year might be called advances.

Credits:

A credit is a kind of obligation; this article centers solely around financial advances. Here,
a predefined sum authorized by the bank to the clients. The advance sum so endorsed is
paid to the borrower either in real money or by credit to his record. A specific measure of
intrigue must be paid by the borrower for the credit that must be obtained. A credit can be
reimbursed in single amount or in portions. Business banks for the most part give
momentary advances as long as one year for meeting the working capital necessities. Be
that as it may, nowadays, term advances surpassing one year are additionally given by
banks.
23
Advances:

Advances speak to the sum loaned by a bank to its clients. Advances are the benefits, which
get real offer of salary to the bank. An advance is allowed either against guarantee securities
or against the individual security of the borrowers. On account of the credit, intrigue is
charged overall measure of the authorized, regardless of the sum really with by the
borrower.

General Information about Loans and Advances

• Application for credit and advances

• Sanctioning of credits and advances
• Rules for approval of advances and advances
• Loans to non-individuals
• Period of advance
• Borrowing point of confinement of individuals
• Condition for payment of advances
• Utilization and reimbursement of credit
• Death of indebtedness of borrower
• Purpose of credits and advances
Credits are arrangement made by bank to its clients for their necessities and thusly bank
gets benefits regarding premium.

An advance is commonly authorized for a time of from one year to 10 years.

Appropriately, it has been named:

• Short term advances

• Medium term advances

• Long term advances

Transient advance will be for one year and medium term advance will be from one year to
six years and advance past 6 or 7 years it might be long or just called "Long haul
Advances".

24
Making Credits and Advances

Banks got stores so as to loan. Giving advances and advances out of the cash which the
bank gotten by the method for stores is the second significant capacity of banks.

Bank advances are ordinarily arranged by

1. Commercial and mechanical advances to business associations.

2. Interbank advances, which are for the most part government subsidizes exchanges,
starting with one bank then onto the next
3. Loan cooperation or advances to a solitary borrower shared by a few banks,
4. Real-domain advances which might be subdivided into development advances and
long haul credit,
5. Loan to buyers, for example, automobile advances and others types of shopper
portions credit

Importance of Loans and Advances

The importance of loans and advances are as follows

1. Mobilize the savings from the public and provide them to the traders and industrialists
for development of the nations
2. Economic growth and global recognition,
3. Protect the surplus funds,
4. Safe investment of deposited fund in the bank
5. Advancing loans to various types of business.

Types of Loans

Term Loans

Term loans can be classified into 3 types,

1. short-term Loans
Any advance repayable in a period under three years
2. Medium-term Loans
Any advance repayable in three years or more yet up to and comprehensive of 84 months

25
3. Long term credits
Credits repayable in past 84 months as long as 120 months [Including moratorium] in
regard of foundation ventures.
Banks in India with the method for improvement have turned out to be anything but
difficult to apply credit advertise. The accompanying advances are given by practically
every one of the nations.
Personal credit
Car credit or automobile advance
Loans against offers
Home credit
Education credit or understudy advance

Individual Credit

In close to home credit, one can get an authorized advance sum between from 10, 00,000
rupees relying on the profile of individual applying for the advance. HDFC, HSBC is a
portion of the main banks which bargain in close to home credit.

Vehicle Loans

Practically every one of the banks have bounced into the market of vehicle advance while
in some cases named as automobile advance. It is one of the quick moving money related
banks. Vehicle advances or automobile credits are authorized to the degree of 85% use
showroom cost of the vehicle with some straightforward paper works and a little preparing
charge.

Advances against offer

Advances against offers are anything but difficult to get in light of the fact that fluid
assurance is included.

Home Loans

Home advances are the most recent furor in the financial part with the created foundation
.Presently individuals are moving to township outside the city. More townships are coming
up to satisfy the need of house for all. The compensation changed the financing costs of
26
Home advance so as to coordinate the reimbursement of even working class individuals.
Practically all banks are managing in home advance ICICI, IDFC, HSBC are driving.

Instruction Credits

The instruction credit, rather to be named as understudy advance, is a decent bank for the
mass. Understudies with certain scholarly splendor, learning at school or colleges in India
and abroad are commonly given instruction advance to meet the costs on educational cost
expense or upkeep cost or book supplies.

Maltreatment In Loaning

Savage loaning is one type of maltreatment in the allowing of advances. It more often than
not includes giving an advance so as to set the borrower in a place that one can pick up
favorable position over the person in question. Where the moneylender isn't approved, it
could be viewed as an advance shark.

Usury is an alternate type of maltreatment, where the moneylender charges extreme

premium. In various timespans and societies the satisfactory loan fee has shifted, from no
enthusiasm at all to boundless financing costs. Mastercard organizations in certain nations
have been blamed by shopper associations for loaning at usurious financing costs and
making cash out of negligible "additional charges". Misuses can likewise occur as the client
manhandling the moneylender by not reimbursing the advance or with purpose to cheat the
loan specialist.

Principles of Lending
 Safety
 Liquidity
 Profitability
 Diversification
 Objects
 Security
 Public policy

Safety:

27
It is the foremost consideration that the banker should have while investing the funds.
Whatever be the advance made by him should come back with in the stipulated time. It
should be observed carefully that insincere and dishonest people not getting the loan from
the banker.
Liquidity:
It means capacity of the banker to convert the advance into cash to meet customer demand
across the counter while advancing the loan. Always he should keep in his mind easy
conversion of loans into cash without any loss hence he may advance loans only medium
or short term loans
Profitability:
Which mean earning the profit of course this the main reason for advancing the loans
banker should earn good returns for the purpose of a) paying interest to depositors, b)
paying the dividend to shareholders.
Diversification:
Another importance principle followed by a banker is to see that loans and advances spread
to different categories.
Object:
While advancing banker has to keep in his mind to advance only for productive purposes.
Which is good in the interest of nation’s economics as well as of him own?
Security:
It is very much essential that banker should have substantial security for his advances.
Although recent development says purpose is important then security it has a vital role in
recovery of advance, now a day’s banker is excepting insurance coverage also for loans.
Public policy:
As banker has prime position in economic development while advancing loans he should
also keep national policy and R.B.I. guide lines in his mind so that implementation of
economic plans and controlling economy will be effective.

28
General Rules That Are Relevant To Types of Credits and Advances:

1. Application for credits and advances: -

Applications for credits must be made in the structure endorsed by the crowd.
Notwithstanding the applications, the surety additionally needs to outfit full points of
interest called for and sign the application. The application can outfit any data as called by
the board as to any of the points of interest outfitted by his application.

2. Approval of credits and advances: -

After security of the advance, applications like board may authorize in the advance
connected for, or decrease the advance sum or time of reimbursement, after the conditions
concerning security to dismiss the advance application. The board will undoubtedly
educate the candidate the reasons in regards to its choice. Anyway the candidate will be
prompted about the dismissal. The board choice wills him last while discarding advance
candidates.

A wide range of advances endorsed however not take-up inside a month from the date of
approval will by and large be considered as dropped. Be that as it may, can be get
revalidated if just solicitation made by the credit candidate through president inside 3
months.

3. Acquiring breaking point of part: -

'Individuals' signifies an individual who has contributed towards introductory offer capital
before enlistment or who has been conceded for the enrollment of the bank as per the
demonstration, rules and by laws and holds no less than one offer inside the bank.

a) Subject to the mandates of the RBI that might be issued every now and then, the board
will recommend the most extreme cutoff on a wide range of advances and advances to be
given to a part in Rs. 25000 as it were.

b) One part can stand most likely to another part.

29
4. Conditions for dispensing of advances: -

Advances sum will be dispensed simply after the advance is endorsed when the candidate's
mark in the advance understanding and other related archives in the recommended
structures are affirmed.

5. Outfitting of false/wrong points of interest:-

The board has full capacity to review the advance authorized to a part on the off chance
that the individual in question without a doubt has outfitted wrong false data to the bank in
the credit application. The individuals will not be qualified to get any sort of credit from
the bank for a time of 5 years from the date of full reimbursement of the said advance.

6. Use and reimbursement of advance:

A part will use the measure of advance authorized. On the off chance that the authorized
sum is used for a reason unique in relation to the reason, which it was endorsed, the crowd
will have forces to review such advances together with enthusiasm forward-thinking.

It will be obligation of each borrower to reimburse quickly the portion and enthusiasm on
credits and advances according to the terms and conditions introduced at the season of
authorization.

7. Demise or Indebtedness of a borrower: -

In the event that a borrower kicks the bucket or ends up bankrupt or is announced
legitimately impaired, the surety will educate the bank recorded as a hard copy inside 15
days from the date of his insight, to find a way to recoup the advance.

8. Demise or Indebtedness of the surety: -

In the event that a surety kicks the bucket or ends up bankrupt or is lawfully disintegrated,
the borrower ought to educate the bank about it recorded as a hard copy inside 15 days
from the date of his insight about it. The CEO/general director will advise the borrower to
outfit another qualified surety to the bank inside 15 days. On the off chance that he neglects
to do as such, despite anything contained in the credit understanding the bank will have

30
full to review and recoup the advance promptly with forward-thinking enthusiasm there
on.

Advances

Advances speak to the sum loaned by a bank to its clients. Advances are the advantages,
which get real offer of salary to the bank. An advance is allowed either against guarantee
securities or against the individual security of the borrowers. On account of the advance,
intrigue is charged in general measure of the endorsed, regardless of the sum really with
by the borrower.

General Information About Loans and Advances

 Application for loan and advances

 Sanctioning of loans and advances
 Rules for sanction of loans and advances
 Loans to non-members
 Period of loan
 Borrowing limit of members
 Condition for disbursement of loans
 Utilization and repayment of loan
 Death of insolvency of borrower
 Purpose of loans and advances

Types of Advances

Bank Advances Consist Of the Following:

1) Cash Credits.
2) Overdrafts.
3) Discounting of bills.
4) Clean Loans.

1.Cash Credits: This is a prominent kind of Development made by business banks. This is
authorized against the hypothecation or promise of the merchandise like horticulture and

31
modern items or against the certification of the individual or co commit. According to these
monetary game plans some measure of advance is authorized to the borrower and he can
use it at whatever point he needs. It isn't compulsory to draw the whole sum in
protuberance. The checks are issued against the records as and when required by the
advances can be credited to the records. In this way "Money Credit" account is a running
record, which can be worked by the desire of the borrower. Anyway the obligation balance
in the record ought not surpass as far as possible. The intrigue will be charged quarterly or
half yearly on the sum really utilized at a concurred rate. At the point when the money
credit is endorsed the broker should keep the sum at the credit of the borrower, independent
of the way that he uses the sum or not. Consequently the financier will free premium
income on unpaid parity. To repay this misfortune he joins "least premium condition" as
indicated by which the premiums to be paid on the sum used at a concurred rate or on the
part of money credit endorsed which ever "is higher. In this way money credit is a well
known advance record endorsed by the business banks. They are likewise called "spinning
merchandise advance" account as the plan is made against the stock and it is for a more
drawn out period and a present record need not opened for this situation.

2. Over Draft: This is a sort of credit endorsed up to a specific cutoff against a present
record. 'Over draft' signifies over illustration the present record up as far as possible, the
sum so drawn caries a concurred rate of intrigue. This is transitory monetary understanding
made for the brief time frame. Before the finish of the money related year the borrower
ought to convey back the present record to credit balance. The premium is paid just on the
used part of as far as possible, Thus the charges one percent on the "base premium proviso"
which is clarified under 'Money Credit'. Overdraft is endorsed against the guarantee
securities or against the individual security of the borrower.

3. Limiting Of Bills: This is a sort of money related settlement made between the investor
and client. As indicated by this the investor limits the exchange bills and the convenience
bills of trade for a shorter period express 60 days to 90 days and credits the client account
with the returns (for example face estimation of the bill less of rebate charges). The bill of
trade might be limited or obtained by the financier or it is given as a security against a
development. In the event that they are limited" or acquired by the financier, he will move
toward becoming 'holder for esteem', and can unreservedly go about as it will be his total

32
property. Yet, if there should be an occurrence of bills given as security, the investor can't
uninhibitedly deal with so much bills, as they are not supreme property. Another point to
be noted here is that the broker gets rebate ahead of time if there should arise an occurrence
of bills limited or bought, however he gets the enthusiasm at later phases of bills are given
as a security against a development.

4. Clean Credit: As indicated by this kind of advances, the investor makes advances to the
client against his own security of one individual. The sum is credited to the client's record
following authorization and is repayable in singular amount or in portions.

The period of loan ranges from one year to ten-twelve years. Accordingly it has been
classified as:

a) Short -term Loan: Will be for one year

b) Medium - term Loan: Will be from one year to Six year
c) Long - term Loan: More than six to seven Years
The interest charged on these loans will be slightly higher compared to cash credit or
overdraft. These are clean loans and interest is charged on entire amount and operation is
very simple.

LITERATURE REVIEW

Robert M. Buckley (2011) in his book 'Lodging Money in Building up Nations' looks at
the manner in which different changes have influenced the financing and conveyance of
lodging in creating and improving economies. A for investigation just as uses of the
structure on the off chance that reviews is exhibited in this book. A fundamental
accentuation all through is the show of the increases that can be acknowledged from
defeating the frequently obscured qualifications among monetary and money related
strategies for lodging. The book finishes up with the development of the World Bank

33
bolstered extends in this division and a synopsis of a portion of the standards of compelling
lodging account frameworks.

Jahangir, Shill and Hague (2007) communicated that the ordinary extent of profitability
through speculators esteem was one of a kind in the money related business from some
other territory of business, where credit to store extent filled in as a good marker of banks'
productivity as it portrays the status of advantage hazard the officials of banks. Regardless,
banks' danger isn't simply associated with this preferred standpoint chance the
administrators yet likewise related to improvement opportunity. Smooth improvement
ensures higher future returns to holders and there misrepresentations the productivity which
suggests current advantages just as future returns as well. Therefore, grandstand size and
market center rundown nearby returned to esteem and credit to-store extent grab the
attention of separating the banks‟ advantage.

Reddy (2015), in his examination titled, "overdues assessment and the board in banking"
separated the association among the crediting and healing of an apex financial institution.
His revelations advised that the advancing and recovery of the summit bank had now not
been proportionate, i.e., either the pinnacle bank couldn't meet the complete credit score
needs of the basic banks or the closing couldn't cozy the advantages from the top financial
institution. The primary banks have been worried by means of human beings now not for
co-employable organizations however rather for their own stakes. With the help of
coefficient of range device, he exhibited that there has been a wide dissipating in crediting
famous by means of healing. He sooner or later wrapped up with the assist of t-test that the
relationship amongst advancing and recovery became now not fine.

Chopra (2014), in her e-book, inspected operational adequacy of some picked open
territories banks. She determined the nonappearance of cleaned knowledge in banking
enterprise and confused for the colleague of clever organisation practices with update
blessings and profitability of open area banks. She proposed extensive agency of costs
similarly as prevailing of the banks.

Patel(2015),in his paper on practicality of state banking, decided that low quantity of
business consistent with department and per laborer and abnormal condition of credit score
keep volume had been precept contemplations inflicting adversities in not unusual
34
budgetary machine. He noticed that general concept of non-farm division credit in herbal
banks became going up.

Reddy and Reddy (2016), in their examination titled, "nature and measurements of willful
and non-willful default and impact of co-usable acknowledge arrangement for reference to
nellore vicinity of andhra pradesh" used multi-kind out reviewing approach and diverse
correct gadgets to interrupt down the clarifications at the back of overdues. They assumed
that landholding, changing shape, pay from agriculture, variety of ward relatives and
political deterrent had direct impact on restoration position of co-employable banks. They
prescribed that corporation of these banks ought to get a co-usable generous technique in
preference to exhibit technique 'as private increase is the foundation stone of captivating
rationale and society's enthusiasm in any respect factors of the officers will enhance
running society of the co-professionals.

Yunus (2005) clarified Grameen financial institution's new microfinance application,

solely targeted for terrible human beings in india. The 'battling people (homeless people)
software' became any other interest taken by means of grameen financial institution in past
due 2003. The goal of the program become no longer solely to financially permit but
additionally to assist the clear up and delight of the hobos. On this software, 31.eleven
million taka advances have been given to forty seven,454 scuffling with people without
charging any enthusiasm, as much as july 2005. Out of this coverage free credit, 15.forty
million taka had been reimbursed and 786 people had simply stopped asking.

Hossain (1988) led an exam with admire to the impact appraisal of Grameen bank's
microfinance program in Bangladesh. The research took a correlation between 30 people
from the grameen financial institution and qualified non-participants in grameen bank
arranged towns. It's miles found that cooperation in grameen bank's microfinance program
undoubtedly affected people and aided in mitigating neediness. The ordinary family unit
revenue of grameen financial institution individuals turned into forty three percentage
higher than that of target non-contributors, and 28 percentage better than certified
nonparticipants. Grameen bank individuals burned via 8 percentage extra for each capita
on nourishment and thirteen percentage greater on apparel than target non-contributors and
35 percentage extra on sustenance and 32 percent on dress than goal own family devices
in correlation towns. He showed the advantageous earnings impact and furthermore
35
observed that grameen credit created impartial paintings sporting events
Carolyn and gear-teeth (1999) recognized the impact of cooperation inside the zaimbuko
application upon clients and their circle of relatives units featured that there was first rate
breadth for catching the consumer's capability to set aside a few cash if the lawful issues
will be settled. The reality of hungry seasons and intermittent deficiencies of operating
capital have been in rate of their destitution and poor circumstance, which could be
improved with funding finances and additionally protection items. Simpler get admission
to to amass assets may want to assist ladies with overcoming the intermittent emergency

Khandker (2003) anticipated the impact of microfinance foundations on the destitute

individuals using the board records of timespans of 1991-ninety two and 1998-99 in
bangladesh. He found lessening return after some time to the borrowings. For each a
hundred taka loaned, utilization accelerated by using 20.5 taka, out of which four.2 taka
had been from modern-day borrowings (1998-99) and 16.three taka are from past
borrowings (1991-92). He had additionally featured that microfinance faded destitution
among non-participants too via overflow affects wherein non-individuals profit with the
aid of increment in financial activities15 .

P. N. Joshi (1972) mentioned the RBI to give clear and explicit meaning of the distinctive
segments of need divisions. A portion of the brokers are not clear about the exact extent of
farming loaning. Direction from the RBI would assist them with increasing their
contribution in ranch credit on right lines.

M. A. Oommen (1972) found that among the institutional wellsprings of money to SSI in
Kerala, business banks gave the lion's offer. The help of business banks in Kerala remains
at standard with some propelled nations.

R. K. Hazari (1976) clarified that institutional financing does not mean supplanting
singular moneylenders with standardized moneylenders. Institutional financing should
empower the agriculturists to proceed onward to a dimension of new innovation that will
increment farming yield and work. This implies efficiency of both land and people.
Information identifying with money must almost certainly give a premise to evaluating
how much financing has truly added to extra yield and work.

36
P. C. D. Nambiar (1977) brought up that the job of business banks in the need areas isn't
bound just to the arrangement of fund. They need to assess the attainability of the task and
help the business visionaries to choose the correct kind of venture. He likewise accentuated
the requirement for appropriate co-appointment between government offices and banks for
better outcomes in the advancement of need segments.

I. G. Patel (1979) reminded the banks about their financial duty in the up-liftment of the
most unfortunate strata of the general public. A generous bit of the general population live
in servile neediness and the main need ought to be to give beneficial business chances to
the poor-whether they are in rustic or urban territories. Banks ought to prepare themselves
completely to fill in as instruments of advancement for the more unfortunate areas of
individuals.

Singh and Balraj (1979) led an examination on business bank loaning in Hissar area of
Haryana and reasoned that townspeople are assuaged from the misuse of moneylenders by
the task of a nationalized bank. In the meantime they additionally detailed different issues,
for example, uneasy, troublesome and non-accessibility of credits, costly and lumbering
methodology, unnecessary and futile customs, unsatisfactory system of advance
reimbursement and the nonappearance of simple openness of banking offices.

C. L. Khemani and K. V. Balakrishnan13 (1981) are of the supposition that if the

borrower chose under IRDP is profited loan specialist for his extremely certifiable
utilization needs, at that point the exceptionally goal of institutional fund for need part will
be vanquished. Utilization credit allowed based on explicit requirements of the objective
gatherings are not going to cause issues. The genuine utilization credits should be identified
with their base needs and their ability to reimburse.

B. K. Sarkar (1983) is of the conclusion that to dispatch an effective advertising drive for
the objective gatherings in the need area, nature relating to each portion of the general
public must be painstakingly checked and crucial data pertinent to showcase choices, for
example, obliviousness, reluctance, neediness, political impedance and so forth must be
broke down. As well as can be expected be determined just if the client and his genuine
need circumstances are surveyed in a significant manner.

37
K. V. Patel and N. B. Shete (1984) analyzed the behaviour of weaker section accounts
particularly with reference to their repayment behaviour by examining 1,554 accounts
operated by seven branches of three commercial banks located in five backward districts
in the states of Rajasthan, Madhya Pradesh and Karnataka. The study brings out the very
positive aspects of borrowers’ willingness to repay and the bankers’ promptness in making
efforts for recovery. The analysis helps in clearing some of the misgivings in weaker
sections financing and in improving the image of development banking.

U. C. Kulshrestha (1985) conducted a survey in the Western Region of Uttar Pradesh to

review the progress and working of the Lead Banks and concluded that the banks which
were assigned the lead role undoubtedly made considerable efforts in their lead districts in
conducting of economic surveys, preparing Credit Plans, branch expansion, deposit
mobilization and credit deployment to priority sectors. Thus the Lead Bank Scheme holds
out the promise to attain socio-economic objects in the society and to develop the rural
economy at the district level.

38
 CHAPTER – 3

RESEARCH DESIGN

TITLE OF THE STUDY:-

“A STUDY ON SCHEMES GOLD LOAN AND ADVANCES AT IIFL”.

CHINTAMANI.

Statement of The Problem

A present scenario there is urgency and requirements of huge capital for business survival
as well as individual lively hood at the same time by consideration and criteria of study
starts with necessity of the gold loans and advances and capital proportion to be granted.

Scope of The Study:

Customers are confronting numerous issues as far as profiting gold credits and Advances
administration in this way IIFL is giving help to the improvement of them as it assumes an
indispensable job being developed of Indian economy. It is fundamental to ponder the
standards and guidelines of the IIFL in loaning cash to general society.

Objectives of The Study

 To Study the demographic details of IIFL investors.

 To find out the level of awareness, knowledge, interest and opinion about various
aspect of loans in IIFL.
 To study different types of the loans and advances with respect to time made by
IIFL.
 To make suggestions on the basis of the analysis.

39
Operation Definition

Loans and Advance is a money related course of action, under which an advances is
conceded by the bank to borrower on a different record called the advance record. At the
point when an advance is endorsed to a borrower and it is paid borrower without a
moment's delay in singular amount either in real money or by exchange to the credit of his
present record.

Advances speak to the sum loan by a bank to its clients. Advances are the advantages,
which acquire significant offer of salary to the bank. Advances have a critical impact in the
gross income and net benefit of banks. The essential capacity of the bank is whether it is a
business bank or some other credit establishment, is to empower singular business
undertakings to buy merchandise or administrations. Advances and advances are assuming
an imperative job in the gross income and net benefit of Banks.

Mortgage It is the move of enthusiasm for the particular steadfast property having a place
with the borrower for the bank. The property ought to be with the end goal that it tends to
be unmistakably portrayed. The lawful proprietorship stays with the borrower.

Over Draft An overdraft is a monetary settlement under which a present record holder is
allowed to overdraw his record up to a concurred breaking point. Intrigue is charged on the
careful sum overdrawn by the client. It is allowed against the security of the borrower, it is
invaluable to the borrower since intrigue is charged just on the sum really overdrawn by
him. Course of action under which a client holding a bill of trade can get a credit
proportional to the estimation of the bill less.

Money Credits A money credit is a budgetary settlement under which a development is

allowed on a different record called money credit account is up to a predetermined breaking
point. Premium is charged on the sum utilized by the borrower, it is allowed against the
security of merchandise or individual security of at least one people other than the
borrower, brokers incline toward money acknowledge to coordinate credits as they need
not pay enthusiasm on the whole sum.

40
RESEARCH METHODOLOGY

An Exploratory/Graphic examination was brought out through efficient investigation of

the essential and auxiliary information of the Open Business Banks, Private Business
Banks and RRBs. A Country Explicit Contextual analysis was likewise attempted
dependent on Subjective and Quantitative information gathered through visits. Surveys
were created and the reactions were assessed with the end goal of study. The optional
information that was gotten was registered to evaluate the effectiveness of the Bank.

Methodology of the Study

The various data is collected by adopting 2 methods. They are,

A) Primary Data

It constitutes the main source of data was collected through following ways.
1. Personal interviews and discussions with managerial staff of related
departments
2. Visited stores and observed, how the inventories are stored, various types of
inventories maintained receipt and inspection procedure etc.
3. Primary data is main source of data, which was collected through personal
interviews and discussions with various managers and personal visit different
departments.

B) Secondary Data:

It is the data collected from the books, magazines, various web sites, annual reports of the
company records on materials managements and company’s brochures, data base stores
ledger and other materials. The data so obtained was co-related with data obtained from
secondary source and finally then inferences were draw.

Tools of Data Analysis

1.Averages 2.Tables

41
Limitations of The Study:-

 The analysis of the primary data may be affected by factors such as respondents
status of mind, knowledge etc.
 The company’s desire to maintain confidentiality in information acts as a limitation.
 As it is internal information it is very difficult to get the accurate data from the
company.
 An in depth study is not conducted due to the time constraint and last but not least
financial constraints.

CHAPTER SCHEME

CHAPTER 1 – INTRODUCTION

This chapter deals with the Industry profile, company profile of the IIFL, promoters
, vision, mission, quality policy, infrastructure facility, competitors, future growth and
prospectus and financial statements.

CHAPTER 2 – CONCEPTUAL BACKGROUND AND LITERATURE REVIEW

Theoretical overview of the study, introduction to Financial Management, Banking

Industry, Loans and advances its types and literature review.

CHAPTER 3 – RESEARCH DESIGN

This part clarifies the announcement of the issue, extent of the examination, Destinations
of the Investigation, procedure, Instruments and Strategies for Information gathering and
Constraints of the Examination and section plot.

CHAPTER 4 – DATA ANALYSIS AND INTERPRETATION

This chapter analyzes and interprets the data collected with the help of different tools and
techniques.

42
CHAPTER 5 -- SUMMARY OF FINDINGS, CONCLUSION AND SUGGESTIONS
It presents the summary of all findings conclusions and suggestions
BIBLIOGRAPHY
ANNEXURE

43
 CHAPTER – 4

DATA ANALYSIS AND INTERPRETATION

TABLE 4.1

Table Showing the Age Group of the Respondents

PARTICULARS NO OF RESPONDENTS PERCENTAGE

18 to 25 Years 5 10 %

26 to 35 Years 23 46%

36-50 Years 17 34%

Above 50 Years 5 10%

Total 50 100%

Analysis:

The above table shows that out of total 50 respondents. in my survey, 10%
of respondent are falls under the age group of 18- 25 years, 46% of respondents are
comes under 26-35 years, 34% respondents are comes under 36-50 years and
remaining 10% of respondents are comes under above 50 years.

44
 CHART 4.1

Chart Showing the Age Group of the Respondents

PERCENTAGE
50%
46%
45%

40%
34%
35%

30% 18-25 years

25% 26 to 35 Years

20% 36-50 Years

Above 50 Years
15%
10% 10%
10%

5%

0%
18-25 years 26 to 35 Years 36-50 Years Above 50 Years

Interpretation

From the above analysis we came to interpret that, majority of respondents in my

survey i.e., 46% are falls under the age group of 26-35 years. So it indicates
majority are younger’s.

45
 Table: 4.2

Table showing Gender wise classification of respondents

Gender NO.OF RESPONDENTS PERCENTAGE

Male 42 84%

Female 8 16%

Total 50 100%

Analysis:

The above table shows that out of 50 total respondents in my survey, 84%
of the respondents are male and rest of the 16% of the respondents are female.

Chart : 4.2

Chart showing Gender wise classification of respondents

PERCENTAGE

16%

Male
Female

84%

Interpretation
46
 From my survey we came to indicate that, majority of respondents i.e., 84%
of respondents are Male.

Table 4.3

Table Showing the Occupation of the Respondents

AGE NO.OF RESPONDENTS PERCENTAGE

Business Person 13 26%

Govt. Employees 02 04%

Farmers 15 30%

Others 20 40%

Total 50 100%

Analysis:

The above table shows that out of total 50 respondents in my survey, 25% of
respondents are business persons, 4% of respondents are Govt employees, 30% of
respondents are farmers and 40% of respondents are having other occupation.

47
 Chart 4.3

Chart Showing the Occupation of the Respondents

PERCENTAGE

26%

40% Business Person

Govt. Employees
Farmers
4%
Others

30%

Interpretation

The above chart interprets that majority of the respondents i.e., 40% of respondents
are having the occupation of other Profession.

48
 Table – 4.4

Table Shows Qualification Wise Classification of Respondents

Particulars Respondents Percentage

PUC 12 24%

P.G 08 16%

U.G 07 14%

Others 23 46%

Total 50 100%

Analysis
The above table shows that out of total 50 respondents in my survey, 24% of
respondents are PUC holders, 16% respondents are post graduates, 14%
respondents are UG holders and 46% of respondents are other qualification
holders.

49
 Chart – 4.4

Chart Shows Qualification Wise Classification of Respondents

Percentage

24%

PUC
46% P.G
U.G

16% Others

14%

Interpretation:
The above chart interprets the majority of respondents in my survey i.e.,
46% of respondents are other qualification holders.

50
 Table No 4.5

Table Showing Family Monthly Income Wise Classification of Sample Respondents

Particulars Respondents Percentage

R.s 10000-20000 22 44%

R.s 21000-30000 15 30%

R.s 31000-40000 08 16%

R.s Above 40000 05 10%

Total 50 100%

Analysis:
The above table shows that out of total 50 respondents in my survey, 44% of
respondents monthly income was R.s 10000 to20000, 30% of respondents monthly
income was R.s 21000 to30000, 16% of respondents monthly income was R.s 31000
to40000, and 10% of respondents monthly income was above R.s 40000.

51
 Chart No 4.5

Chart Showing Family Monthly Income Wise Classification of Sample Respondents

Percentage
0

10%

16% 10000-20000
44%
21000-30000
31000-40000
Above 40000

30%

Interpretation.

From the above chart we can conclude that majority of the respondents i.e.,44% of
respondents monthly income was 10000 to20000. Only 10% respondents having monthly
income of above 40000.

52
 Table No 4.6

Table Showing Respondents Opinion Towards Gold Loan Taken In IIFL

Particulars Respondents Percentage

Yes 50 100%

No 00 00%

Total 50 100%

Analysis:

The above table shows that out of total 50 respondents in my survey, 100% of
respondents have taken gold loans and 00% of respondents have not taken gold loans.

Chart No 4.6
Chart Showing Respondents Opinion Towards Gold Loan Taken In IIFL

Percentage
120%
100%
80%
60%
Percentage
40%
20%
0%
Yes No

Interpretation:

The above chart shows that all the respondents in my survey have taken gold loans.

53
 Table No 4.7

Table Showing Respondents Awareness About Scheme of Loans Availability in IIFL

Particulars Respondents Percentage

Yes 45 90%

No 05 10%

Total 50 100%

Analysis:
The above table shows that out of total 50 respondents in my survey, majority of the
respondents i.e., 90% are aware about the schemes of loans availability in IIFL and 10%
of respondents are not aware about loan facility availability in IIFL.

Chart No 4.7
Chart Showing Respondents Awareness About Scheme of Loans Availability in
IIFL

Percentage

10%

Yes
No

90%

Interpretation
54
The above chart shows that majority of respondents are aware about the schemes of loans
availability in IIFL.

Table No 4.8
Table Showing Respondents Opinion Towards IIFL Gold Loan Interest Rates
When Compared to Other Financial Institutions

Particulars Respondents Percentage

High 10 20%

Moderate 35 70%

Low 05 10%

Total 50 100%

Analysis:
The above table shows that out of total 50 respondents in my survey,20% of respondents
said as high rate of interest, 70% of respondents said as moderate rate of interest and 10%
of respondents said as low rate of interest charging by IIFL Ltd towards Loans when
compare to other financial institutions.

55
 Chart No 4.8

Chart Showing Respondents Opinion Towards IIFL Gold Loan Interest Rates
When Compared to Other Financial Institutions

Percentage

10%
20%

High
70% Moderate
Low

Interpretation:
The above chart shows that majority of respondents said as the rate of Interest towards
loans in IIFL is moderate when compare to other Financial Institutions.

56
 Table No 4.9

Table Showing Respondents Opinion Towards Document Verification of Customers

in IIFL While Loan Sanctioning

Particulars Respondents Percentage

Very easy compared to 13 26%

other banks

Easy compared to other 20 40%

banks

Same as compared to 10 20%

other banks

Longer than other banks 07 14%

Total 50 100%

Analysis:
The above table shows that out of total 50 respondents in my survey, 26% of respondents
are agreed with very easy compare to the other financial institutions , 40% of respondents
are agreed with easy compare to the other financial institutions, 20% of respondents
agree with same as compare to the other financial institutions and 14% of respondents
agree with the longer than other financial institutions.

57
 Chart No 4.9

Chart Showing Respondents Opinion Towards Document Verification of Customers

in IIFL While Loan Sanctioning

Percentage

14%
26% Very easy compared to other
banks
Easy compared to other banks
20%
Same as compared to other
banks
Longer than other banks

40%

Interpretation:
The above chart shows that majority of respondents i.e,40% are agreed with the easy
when compared to other financial institutions about the document verification of IIFL
while loan sanctioning.

58
 Table No 4.10

Table Showing Respondents Opinion Towards Accessibility of IIFL Loans When

Compared to Other Banks

Particulars Respondents Percentage

Easy accessibility 20 40%

Accessibility 23 46%

Very difficult to access 07 14%

Total 50 100%

Analysis:
The above table shows that out of total 50 respondents in my survey, 40% of respondents
are agreed with easy accessibility of IIFL gold loans , 46% of respondents are agreed
with accessibility and 14% of respondents are agreed with very difficult to access of IIFL
gold loans.

59
 Chart No 4.10

Chart Showing Respondents Opinion Towards Accessibility of IIFL Loans When

Compared to Other Banks

Percentage

14%

40%
Easy accessibility
Accessibility
Very difficult to access

46%

Interpretation:
The above chart shows that majority of respondents i.e.,46% are agreed with the
accessibility of IIFL loans when compared to other financial instittuions.

60
 Table No – 4.11

Table Showing Respondents Opinion Towards the Customer Service Given by the
IIFL When Compared to Other Financial Institutions.

Particulars Respondents Percentage

Excellent 17 34%

Very good 13 26%

Good 15 30%

Average 05 10%

Total 50 100%

Analysis:
The above table shows that out of total 50 respondents in my survey, 34% of respondents
said as Excellent towards customer service Given by IIFL when compare to other
Financial Institutions, following as 26% of respondents said as very good, 30%
respondents said as good, 10% of respondents said as average.

61
 Chart No – 4.11

Chart Showing Respondents Opinion Towards the Customer Service Given by the
IIFL When Compared to Other Financial Institutions

Percentage

10%

34%
Excellent
Very good
30%
Good
Average

26%

Interpretation:

The above chart shows that majority of respondents i.e., 34% are agreed with excellent
customer service provided by IIFL when compared to other financial institutions.

62
 Table No 4.12

Table Showing Respondents Opinion About Type of Loan Customers have Taken
in IIFL

Particulars Respondents Percentage

Long term loan 20 40%

Medium term loan 13 26%

Short term loan 10 20%

Very short term 07 14%

Total 50 100%

Analysis:
The above table shows that out of total 50 respondents in my survey, 40% of respondents
have taken long term loan, 26% of respondents have taken medium term loan, 20% of
respondents are taken short term loan and 14% of respondents have taken very short term
loan.

63
 Chart No 4.12

Chart Showing Respondents Opinion About Type of Loan Customers Have Taken
in IIFL

Percentage
40%
35%
30%
25%
40% Long term loan
20%
15% Medium term loan
26%
10% Short term loan
20%
5% Very short term
14%
0%
Long term
Medium
loan Short term
term loan Very short
loan
term

Interpretation:
The above chart shows that majority of respondents i.e., 40% have taken a long term
loans in IIFL.

64
 Table No 4.13

Table Showing Respondents Opinion towards Public Advertisement about Schemes

of Loans Availability in IIFL

Particulars Respondents Percentage

Yes 35 70%

No 15 30%

Total 50 100%

Analysis:

The above table shows that out of total 50 respondents in my survey, 70% of respondents
have agreed with availability of advertisement towards schemes of Loans Availability in
IIFL, and remaining 30% of respondents have not agreed with the public advertisement
availability towards schemes of loans availability in IIFL.

65
 Chart No 4.13

Chart Showing Respondents Opinion Towards Public Advertisement about

Schemes of Loans Availability in IIFL

Percentage

30%

70% Yes
No

Interpretation:
From the above chart we can interpret that majority 70% of the respondents have agreed
with the availability of public advertisements towards schemes of loans availability in
IIFL.

66
 Table No 4.14

Table Shows Respondent Feeling about Verity of Financial Gold Loan Products
Availability of IIFL When Compared to Other financial institutions

Particulars Respondents Percentage

Very good 05 10%

Good 20 40%

Average 17 34%

Poor 08 16%

Total 50 100%

Analysis:
The above table shows that out of total 50 respondents in my survey, 10% of respondents
feeling is very good about availability of variety of Financial Gold Loan Products in
IIFL, following that 40% respondents are satisfy with good, 34% respondents are satisfy
with the average, 16% respondents are satisfy with poor.

67
 Chart No 4.14

Chart Shows Respondent Feeling about Verity of Financial Gold Loan Products
Availability of IIFL When Compared to Other financial institutions

Percentage

10%
16%
Very good
34% 40% Good
Average
Poor

Interpretation:
From the above chart we can interpret that, majority of the respondents i.e., 40%
respondents are satisfy with the good verity of financial product availability in IIFL when
compare to other banks.

68
 Table No 4.15

Table Shows Respondents Answers Towards Availability of Mobile Alert Massage

Facility Towards Gold Loans in IIFL

Particulars Respondents Percentage

Strongly agree 30 60%

Agree 10 20%

Disagree 05 10%

Strongly disagree 05 10%

Total 50 100%

Analysis:
The above table shows that out of total 50 respondents in my survey, 60% of respondents
are strongly agreed, 20% respondents are agreed, 10% respondents are disagreed and
10% respondents are strongly disagreed about mobile message alert facility provided by
IIFL regarding Gold Loan.

69
 Chart No 4.15

Chart Shows Respondents Answers Towards Availability of Mobile Alert Massage

Facility Towards Gold Loans in IIFL

Percentage

10%

10%
Strongly agree
Agree
Disagree
20% 60%
Strongly disagree

Interpretation:

The above chart shows that majority of respondents i.e., 60% are agreed with mobile
alert message facility availability towards the gold loan in IIFL.

70
 Table No 4.16

Table Shows Respondents Willingness Towards Preferred of IIFL Instead of Other

financial institutions to Obtained Gold Loan

Particulars Respondents Percentage

Fast transition 07 14%

Less rate of interest 15 30%

Good co-ordination 18 36%

If any 10 20%

Total 50 100%

Analysis:
The above table shows that out of total 50 respondents in my survey,14% of respondents
preferred IIFL to obtain the Loan because of fast transition, followed by 30% of
respondents are accepted because of less rate of interest, 36% of respondents are agreed
with good coordination and 20% respondent preferred because of with other reasons.

71
 Chart No 4.16

Chart Shows Respondents Willingness Towards Preferred of IIFL Instead of Other

financial institutions to Obtained Gold Loan

Percentage

14%
20%
Fast transition
Less rate of interest
Good co-ordination
30%
If any
36%

Interpretation

The above chart shows that majority of respondents i.e., 36% have accepted IIFL to Obtain
the Loan because of good Co-ordination when compare to other financial institutions .

72
 Table No 4.17

Table Showing Respondents Opinion Towards Purpose of Taken Gold Loan In

IIFL

Particulars Respondents Percentage

For personal use 10 20%

Business purpose 20 40%

Agricultural purpose 13 26%

Housing purpose 07 14%

Total 50 100%

Analysis:
The above table shows that out of total 50 respondents in my survey, 20% of
respondents have taken gold loan for personal use, 30% of respondents have taken loan
for business purpose, 30% of respondents have taken loan for agricultural use and
remaining 20% of respondents have taken loan for housing purpose

73
 Chart No 4.17

Chart Showing Respondents Opinion Towards Purpose of Taken Gold Loan In

IIFL

Percentage

40%
40%
35%
30%
26%
25% 20% For personal use
20%
Business purpose
15% 14% Agricultural purpose
10%
Housing purpose
5%
0%

Interpretation

The above chart shows that majority of 40% respondents have taken loan from IIFL
for business purpose.

74
 CHAPTER-5

FINDING,SUGGESTIONSAND CONCLUSIONS.

Finding

 Majority of the respondents fall under the age group 26 to 35 years.

 Majority of the respondents are male.
 Majority of the respondents are having different professions.
 It is found that institution consist of different qualified customers.
 Most of the respondents monthly income is Rs. 10000 to 20000.
 100% of respondents in my survey have taken gold loan in IIFL.
 Most of the respondents are aware about the schemes of gold loans availability in
IIFL.
 Majority of the respondents tell that interest rate was moderate in IIFL.
 The study shows that majority of the respondents feel easy document verification
when compared to other financial institutions.
 Majority of the respondents agreed with excellent customer services provided by
IIFL.
 Majority of the respondents that is 46% agreed with the accessibility of gold loan
in IIFL.
 It is found that the majority of the respondents have taken long term gold loan in
IIFL.
 Most of the respondents agreed with the public advertisement towards schemes of
gold loan availability in IIFL.
 It is found that majority of the respondents feel satisfactory about variety of
financial product availability in IIFL.
 Most of the respondents feel that mobile alert message facility towards loan status
in IIFL.
75
Suggestions

1. In my survey most of the respondents were male, therefore the company has
to attract female also with giving special offers for women to become
equality in Gender representation.
2. In my survey respondents the Govt Employees are too less i.e., out of 100%
of respondents only 04% of respondents have taken Gold Loans, so the
company has to attract Govt Employees too.
3. Here in my survey I can suggest that, most of the respondents monthly
income is Rs. 10000-20000 so It indicates that the majority of respondents
from below poverty level, through this I can conclude that the company is
helping to poor families , therefore the company should keep it up further,
4. The IIFL has to fulfill 100% of respondent’s awareness about the Gold loans
availability.
5. IIFL should introduce new schemes of Gold Loan with less interest.
6. IIFL should increase the customer services.

76
Conclusion

The emergence of organized retail undoubtedly gives consumers a wider choice of goods,
more convenience, and a better shopping environment, among other benefits. Organized
retail can appear small but spread in all local markets, social economic developments. It is
also true that presently, they are facing many internal and external challenges, which are
hindering their performance. Hence, there is a need to consider the above listed challenges
for another reform to improve the performance of the gold loan particularly to meet the
requirement of new and open improve the performance of the gold loan particularly to meet
the requirement of new and open competitive environment.

This project went through all the ways to compare the loans of IIFL with that of other
institutions. It is satisfying thing to know that IIFL is growing towards a “service of
excellence”. All the achievements can be given a broader sky view by applying and
considering the findings and suggestions given in this project. Efforts have been made to
know all spectrum of possibilities through which IIFL can satisfy their customers more and
understandingly. For borrowers, gold loans have emerged as one of the best means of
raising quick, short-term capital. For 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 interest rates.

The availability of computerized software much of the technicalities of the assessment have
been largely simplified. The efforts by IIFL constantly update its evaluation procedures,
indicate its high level of professionalism and also explain why it is in a leading position
amongst the nationalized institutions. The project can be had with management of
borrowing firms to get better idea about the business, its viability and also the capacity of
management to tackle exceptional situations. Project appraisal methods try to reduce the
subjectivity involved in assessing the capacity of the borrowers with respects to repayment
capability.

77
 BIBLOGHAPHY
TEXT BOOK:
 Churiwal amit and shreni surveying the Indian gold loan market publications 20-
20
 Nair dnaynesh N changing consumers perception driving India’s organized gold
loan market, Mumbai India, international research review page number 7
 Report of Indian bullion market, the India bullion and jewelers association Ltd
page no 8
 Retrieve from report to reserve bank
 Economic times edited by Joby puthuparampil Johnson page no 8
 Gold control act Indian foreign exchange regulation act page no 7
 Nandakumar p gold loan gain respect page no 12

JOURNALS:
 Bhattacharya, S. and A. Thakor, “Contemporary Banking Theory,” Journal of
Financial Intermediation.
 Economic times
 Seasonal Magazine

WEBSITE:
 www.iifl.com
 www.Indiantimes.com

78
 ANNEXURE

Name of the respondent……………

1. Age wise classification of sample respondents

a) 18 to 25 Years b) 26 to 35 Years
c) 36 to 50 Years d) Above 50 Years

2. Gender wise classification of sample respondents.

a) Male b) Female

3. Occupation wise description of sample respondents

a) Govt employee b) Business person

c) Farmers d) Others

4) Qualification wise classification of sample respondents

a) PUC b) PG
c) UG d) Others

5) Family monthly income wise classification of sample respondents

a)10000 – 20000 b)21000 – 30000

c) 31000 - 40000 d) Above 40000

6) Have you taken gold loan in IIFL?

a) Yes
b) No

7) Do you aware about schemes of loans availability in IIFL?

a) Yes
79
b) No

8) How do you feel the interest rate of IIFL loans when compared to other banks?
a) High b) Moderate
c) Low

9) How do you feel the document verification of IIFL while loan sanctioning when
compared to other banks?

a) Very easy compared to other banks

b) Easy compared to other banks
c) Same as compared to other banks
d) Longer than other banks

10) How do you rate the accessibility of IIFL loans when compared to other banks?

a) Easy accessible b) Accessible

c) Very difficult to access

11) How do you feel about the customer service of IIFL when compared to other
financial Institutions?

a) Excellent b) Very good

c) Good d) Average

12) Generally which type of loan have you taken in IIFL?

a) Long term loan b) Medium term loan

c) Short term loan d) Very short term

13) Is there public advertisement towards schemes of loans availability in IIFL?

a) Yes b) No

80
14) How do you rate the variety of financial product (types of loans) of IIFL when
compared to other Financial Institutions?
a) Very good b) Good
c) Average c) Poor

15) Is there mobile alert message facility towards gold loan in IIFL?

a) Strongly agree b) Agree

c) Disagree c) Strongly disagree

16) Why do you preferred IIFL instead of banks to obtained Gold Loan?

a) Fast transaction b) Less rate of interest

c) Good co-ordination c) If any

17) What is Purpose of taken gold loan in IIFL?

a) For personal use b) Business purpose

c) Agriculture purpose c) Housing purpose

81