Customers' Perception of Gold Loan Scheme- A Comparative Study of Banking and Non Banking Financial Companies

This descriptive study assesses and compares customer responses to gold loan facilities offered by banking and non-banking financial companies, specifically focusing on State Bank of India and Muthoot Finance in the Calicut district. Despite the widespread availability of gold loans from both sectors, there has been a lack of comparative analysis from a customer perspective. This research addresses this gap by investigating various aspects of service, including processing time, terms and conditions (especially interest rates), speed of service, and staff attitude. A sample of 60 gold loan customers, equally split between State Bank of India and Muthoot Finance, was selected using a simple random technique for primary data collection. Key findings indicate that customers from both sectors are predominantly in the 30-40 age group. Educational qualification also emerged as a significant factor influencing the choice of gold loan provider. While banking sector customers largely fall into the ₹20,000-₹30,000 income bracket, non-banking sector customers primarily belong to the below ₹10,000 income group. A notable difference was observed in staff attitudes, with non-banking companies receiving a "good" rating compared to an "average" rating for banking companies. Furthermore, customers held different opinions regarding interest rates, and the speed of service was significantly higher in the non-banking sector. The study also identifies distinct factors attracting customers: interest rates, bank reputation, and terms and conditions for banking customers, versus availability, easy processing, and personal staff contact for non-banking customers.