Gold Loan is the most significant product in the product portfolio of Kosamattam Company. The Gold Loan customers are typically businessmen, vendors, traders, farmers, salaried individuals and families, who for reasons of convenience, accessibility or necessity, avail of their credit facilities by pledging their gold jewellery with them under various gold loan schemes. These Gold Loan schemes are designed such that higher per gram rates are offered at higher interests and vice versa, subject to applicable laws. This enables the customers to choose the Gold Loan scheme best suited to their requirements. These Gold Loan schemes are revised by them, from time to time based on the rates of gold, the market conditions and regulatory requirements. Gold Loans are sanctioned for a tenure of upto 12 months, with an option to the customers to foreclose the Gold Loan. The average Gold Loan amount outstanding was Rs 45,343, RS 45,121, Rs 43,864 and Rs 37,366 per loan account, for the six month period ended September 30, 2022 and the financial years ended on March 31, 2022, March 31, 2021 and March 31, 2020, respectively. For the six month period ended September 30, 2022 and the financial years ended March 31, 2022,March 31, 2021 and March 31, 2020, their yield on Gold Loan assets were 18.13%, 17.70%, 17.76% and 19.43%,respectively..In addition to the core business of Gold Loan, they also offer fee based ancillary services which includes micro-finance, money transfer services, foreign currency exchange, power generation, agriculture and air ticketing services.As on October 31, 2022, they had network of 997 branches with significant market presence in Southern India and around 3,728 employees.Based on rating the coupon rates are attractive, financial performance also improving and industry is also showing sign of growth. So we give NEUTRAL rating to this debt offer. Series 1Series 2Series 3Series 4Series 5Series 6Series 7Series 8Frequency of Interest PaymentCumulativeMonthlyCumulativeMonthlyCumulativeMonthlyCumulativeCumulativeTenure18 Months24 Months30 Months36 Months39 Months48 Months54 Months88 MonthsCoupon RateNA8.25%NA9.00%NA9.50%NANAEffective Yield (yearly)8.00%8.57%8.49%9.38%9.25%9.92%9.43%9.91%Maturity Amount1,122.40/-1,000/-1,226/-1,000/-1,333/-1,000/-1,500/-2000/-
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