Muthoot Finance is the largest gold loan NBFC in India, founded in 1997 and headquartered in Kochi. It provides personal and business loans secured by gold as well as other services. The study surveyed 104 Muthoot Finance customers in Karnataka to understand factors influencing their choice of Muthoot. It found that customers chose Muthoot due to low interest rates and easy processing. Most borrowers used loans for education or business investment. Friends and relatives were the main source of information about Muthoot and customers reported overall satisfaction with Muthoot's services.

1. SHOWNAL SERRAO
19MG1H1077
VI BBA(B)

2. INTRODUCTION
• Muthoot Finance Ltd is an Indian Financial Corporation and the largest gold loan NBFC in the country.
• It was incorporated in the year 1997
• Late Mr. M. George Muthoot is the founder of Muthoot Finance.
• It is subsidiary of Muthoot Group which is headquartered in Kochi, India.
• It provides personal and business loans secured by gold jewellery or Gold Loans.
• It also have 4,400 branches across the country.
• It has employed 25,554 employees as of 2020.
• It also offers foreign exchange services, travel and tourism services, and sells gold coins.
• As of March 2012, revenue stood at more than Rs.23,000 crore.

3. RESEARCH DESIGN
Statement of the problem : The study was conducted to evaluate the factors influencing customers in
choosing Muthoot Finance
Objectives of the study are;
1. to study the factor that differentiate Muthoot Finance as a preferred NBFC.
2. factors that influence customer borrowings from NBFC
Type of data: Data which is collected for the study is primary data. The primary data was collected
mainly by using a questionnaire.
Sampling size: 104
This study targeted the customers of Muthoot Finance in Karnataka.

4. FINDINGS
Table 3.1: Table showing number of respondents applied for gold loan
The above table shows us that 100% of the total respondents have applied for gold loan for various purpose.
Particulars No of respondents Percentage
Yes 104 100%
No 0 Nil

5. Table 3.2: Table showing purpose of gold loan
From the above table it is understood that 38% are used for education purpose, 28% for investment in
business. The rest 13% is used residential property, 12% repayment of other debt, and 9% for medical
treatment.
Purpose No of borrowers Percentage
Education 40 38.5%
Residential property 14 13.5%
Medical treatment 9 8.7%
Investment in business 29 27.9%
Repayment of other debt 12 11.5%

6. Table 5.2: Table showing reasons for choosing Muthoot Finance
The above table shows us that 47% of total borrowers participated in the survey have chosen Muthoot Finance
because of the less rate of interest. This also tells us that rate of interest is one of the main factors to choose
from different gold loan providers.
After low interest rate, borrowers have chosen easy processing and convenience provided by Muthoot Finance
Reasons for choosing
Muthoot finance
No. of borrowers Percentage
Low interest rate 49 47.1%
Easy processing 47 45.2%
Convenience 23 22.1%
Loan amount 12 11.5%

7. Table 3.4: Table showing sources of information about Muthoot Finance
From the above table it is understood that friends and relatives plays the major role in getting people. Since
they are giving better results than others sources, they should focus more on TV ads and newspapers and
should try to improve other sources.
Banner is the least selected option, only 1% of the total borrowers in the study have selected this option.
Source No of borrowers Percentage
TV Ad 17 16.3%
Newspaper 4 3.8%
Banners 1 1%
Friends and Relatives 82 78.8%

8. Table 3.5: table showing satisfaction of borrowers
The above table shows us that 92.3% of the borrowers are satisfied with the services provided by Muthoot
Finance and rest 7.7% are dissatisfied with the services of Muthoot Finance.
Service satisfaction No of borrowers Percentage
Yes 96 92.3%
No 08 7.7%

9. Table 3.6: Muthoot Finance often gives low interest rates with affordable schemes to its
customers
The above table shows that that 55% of total borrowers agree the fact that Muthoot Finance offers low interest
scheme to their customer but then 31% of total borrowers neither agree nor disagree with the fact. So they should
make their interest rate lesser to attract more customers.
Low interest rate
scheme
No of borrowers Percentage
Strongly disagree 9 8.7%
Disagree 4 3.8%
Neutral 32 30.8%
Agree 57 54.8%
Strongly agree 2 1.9%

10. Table 3.7: Table showing factors which borrowers check before applying for gold loan
The above table shows that the borrowing decisions are taken on the basis of Interest rate offered by the
NBFC’s. Around 45.2% of total borrowers have selected this option.
Time span is the least option chosen by the borrowers.
Factors No of borrowers Percentage
Discount 16 15.4%
Customer review 16 15.4%
Interest rate 47 45.2%
Schemes 17 16.3%
Time span 8 7.7%

11. Table 3.8: Muthoot Finance manipulates its customer by charging extra interest rate
upon delay of monthly repayment
The borrowers of Muthoot Finance believes that they charge extra interest rate upon delay of monthly
repayment. 53.8% of total borrowers have chosen yes and 46.2% borrowers believes that they does not charge
extra interest rate. Muthoot should check on this because they might lose their customers.
Extra interest rate No of borrowers Percentage
Yes 56 53.8%
No 48 46.2%

12. Table 3.9: Muthoot Finance confuses it's customer by their unclear terms and
condition when it comes to customer interaction
The above table shows that 36.5% of borrowers disagree to the fact and 34.6% of borrowers are neutral to the
fact that Muthoot finance used unclear terms and policies and confuses its people.
Confusion among
customers
No of borrowers Percentage
Strongly disagree 05 4.8%
Disagree 38 36.5%
Neutral 36 34.6%
Agree 25 24%
Strongly agree Nil Nil

13. Table 3.10: Table showing how many borrowers look at their terms and conditions or
blindly believe in brand name while approaching Muthoot Finance
The above table shows that 76.9% of total borrowers check all the terms and conditions of the policy beforehand
and do not trust in their brand name blindly.
The rest 23.1% trust brand name and approach Muthoot Finance for gold loan.
Brand name/ background
check
No of borrowers Percentage
Yes, I do check 80 76.9%
No, I believe in brand name 24 23.1%

14. Table 3.11: Table showing whether applying for gold loan in muthoot finance is a
complicated procedure or not
The above table shows that 51% of borrowers disagree with the statement and rest of them agree with the
statement made above.
Applying for loan is a
complicated process
No of borrowers Percentage
Yes 51 49%
No 53 51%

15. CONCLUSION
The study on preference of Muthoot Finance as NBFC was conducted to evaluate the factors that influence
customer in choosing NBFC and the factor that differentiate Muthoot Finance as preferred NBFC
• The questionnaire was sent to only to the customers of Muthoot Finance who applied for gold loan in
Muthoot Finance.
• When it was asked about the purpose of gold loan it was found that most of the borrowers have taken loan
for education and then for investment in business.
• It was found that borrowers have chosen Muthoot Finance because of low interest rate provided by them.
• Friends and relatives plays an important role in influencing public to go for Muthoot Finance.
• There has been good relationship between the management and the borrowers as customers are really
satisfied by the service provided by them.

16. THANK YOU