Gold loan market witnessing a significant growth in Kerala

Gold Finance market witnessing a significant growth in Kerala. 20% of India’s Gold consumption is happening in Kerala and due to the result of the rice in price of Gold, the people in Kerala find pledging of gold as a good opportunity to rise a huge sum of money. Now gold is not only considered as an ornament . people utilize it as property. Thus gold loans are provided for 3 months and Interest rate will be around 18% to 24%.

Some of the Factors which leading the Gold Loan Market are.

• · The Procedure for Loan are simple and low availability within Minutes.
• · there are no formalities
• · no depreciation of assets

Some of the Organized Players in the sector includes Manappuram, Muthoot Papachan, Muthoot M George Group etc. Manappuram, which is the largest credit rated Company is the first NBFC from Kerala to Receive certificate from RBI mainly on its strength to settle it’s depositors in full. Inorder to enhance their vision to emerge as a strong National player with a wide Branch networks all over India, they aggressively tapped the market with a national advertising campaign with more than 5 Brand ambassidors for different regions.

The campaign was launched during 2010. Ad campaign launched with Mohanlal . then they appointed Vikram for Tamil nadu region, Venkatesh for Andra, Puneeth Rajkumaar for Karnataka, Mithun chakrabarthy for Bengal and Akshay Kumar for Northern region. Manappuram ad campaign is the advertisement campaign with highest spend byA corporate from Kerala. The campaign launched with the slogan ' Manappuram stands for you'.

the campaign was conceptualized by Netra and the media operation is handled by Lintas media.

the ad campaign reinforce the customers about no need to go for personal loan or business loan, if they have gold.

During Dec 2010, Manappuram reported total AUM (Asset under Management) of 65.2 bn.Manappuram currently operates with 2100 branches in 20 states.

Some of the attractive features from Manappuram are -

• Avilabilty of Loan in 5 minutes
• For getting loan, only require any of the recent id from the customer
• Diminishing Interest rate staring from 1%

Another value addition from Manappuram is the late night availability of loan and also the availability of loan on sundays.

Another powerful player from the state Muthoot Finance established in 1939. The gold loan

company now runs with 1921 branches curently. as a part of their aggressive entry in National

level, they promoted the brand with the opportunity of IPL. Muthoot finance were the associate sponsor of Delhi Dare devils. now they will be the main sponser of the team for the upcoming IPL season 4. Muthoot Finance also launched product specific animated ads with their brand mascots

the two elephants - Mattu and Mittu. which communicates the features like 1% Interest , their value for gold etc. In the recent TVC, they communicates about th e gold loan in just five minutes.there recent advertisement communicates about the Gold loan avilability in just 5 min. it says that there will be not be any confusion for getting gold loan.

Muthoot fin crop, the flagship company of Muthoot Pappachan group runs with a different strategy. earlier, common people were not conscious about the difference between Papachan group and Muthoot finance. thus they came up with a strong communication with colour.

during 2010, they unveiled their new logo with light blue colour and began to use Blue and white

as their Brand colour.thus it create a big impact in the mind of customers and the new brand building also helps the group to establish a unique identity

Muthoot Papachan new brand identity TVC

Muthoot Papachan new brand identity - Print Ads

Muthoot Fin corp also came with new attractive schemes like Express 3 min gold loan, Smart + gold loan, swarnawarsham etc.

Products from Muthoot fin. corps

Sthree jyothi - the women entrepreneur programme

Muthoot papachan group also organized women entrepreneur programme sthree jyothi where training programme is provided for women entrepreneurs in management and other skills supported by MPG. So far MPG trained over 7400 women.also these people are provided with financial assistance through Muthoot mahila mitra loans. as a part of the programme, exhibitions were also conducted in 4 south Indian cities.

exhibition conducted by women entrepreneurs of Sthreejyothi programme supported by MPG