A STUDY ON A RISK MANAGEMENT OF GOLD LOAN TO PROVIDERS BY CUSTOMERS WITH SPECIAL REFERENCE IN COIMBATORE CITY

This study is based on the growth of gold loan practices in the region of Coimbatore, which is largely influenced by the growth of the economy, financial knowledge, and the cultural practice of saving gold resources for the long term. The study offers an insight into the provision of gold loans by banks and NBFCs to cater to the personal and commercial financial requirements of customers. The study states the primary risks faced by lenders, such as changes in the price of gold, defaults by customers, false valuations, fraudulent practices, and regulatory issues, which are handled in an efficient manner by lenders. The study further evaluates the feedback received by lenders to enhance the quality of their service to customers. The findings state that customers want lenders to expedite the loan-disbursal process, follow simple processes, and be aware of interest rates, repayment terms, and associated risks with gold loan purchases