Gold Loan Service - 1467 Words

Project Report On Gold Loan Service in India Subject: Management of Financial Services Submitted to: Submitted by: Dr. Sanjay Medhavi Mayank Raj MBA III sem. Roll no. 28 Department of Business Administration University of Lucknow Introduction: Gold considered an auspicious metal is opening up business opportunities in India. Largely driven by the unorganized segment in the past, most of whom included the pawn brokers, the gold loan market has now started to be driven heavily by the organized segment. The stigma attached to pledging gold is slowly thinning among people while companies†¦show more content†¦The product is packed with features such as: * Hassle-free quick processing of loans. * Simplified paperwork. * Easy payment options. * Attractive interest rate. Gold loans (or deposits) are not backed by cash collateral and, in some cases, are not backed by non-cash collateral. However, the gold may be on-sold by the borrower. With Gold Loan, you can get an instant loan against your gold jewellery and ornaments. The procedure is simple, documentation is minimal and approval is quick. Features amp; Benefits : * You can avail Loan upto Rs.20,00,000 amp; upto 80% of value for any purpose * Safety amp; Security of your Gold Jewellery * Loan processed in 30 Minutes * ATL - Anytime Liquidity * No EMI, Service only Interest and enjoy the Loan facility * Lower Interest Rates * Simple documentation and fast processing. * Overdraft limit varies depending on the market rate of gold. * Interest rate is payable only amount of the overdraft that you use. Major Players in providing Gold Loan : There are majorly four sectors that provide this service. These are: 1. Public Sector Bank 2. Private Sector Bank 3. NBFCs 4. Co-operative Societies Financial institutions provide 70% to 85% of value of gold pledged as loan. The interest rates vary from 12% to 15.25% for banks whereas NBFCs offer between 12% and 21% depending on the value of the gold pledged. The timeShow MoreRelatedThe Effect Monetary Policy has on Macroeconomic Factors Essay1595 Words   |  7 Pagesa house, a new car, borrow money for home improvements and many other decisions on purchases which will impact the total level of spending in the economy. The Federal Reserve has two main assets, securities and loans to commercial banks, thrifts-savings and loans, mutual savings and loans and credit unions. Securities are government bonds that have been purchased by the Federal Reserve Banks. They consist largely of Treasury bills (short term securities), Treasury notes (mid-term securities), andRead MoreInter-Branch Transactions Essay1591 Words   |  7 Pages3. PERSONAL LOANS 1. The branch obtained fully filled and duly signed Personal Loan Applications from the applicants, but not properly obtained approval from The Regional Manager. 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