InvestorQ : Why are gold loans catching loans catching on a in a big way as a safe source of lending for Indian banks?
Katherine Gonsalves made post

Why are gold loans catching loans catching on a in a big way as a safe source of lending for Indian banks?

Answer
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Rutuja Nigam answered.
4 months ago


It is true that gold loans are catching on a in a big way among the Indian banks. In the current scenario it is all the more relevant as the big challenge for individuals and businesses is the availability of adequate funding to bridge revenue gaps. As a result, even for otherwise solvent people, gold loans are becoming easier to access. For a long time, Muthoot and Manappuram from Kerala were the undisputed names in the business. Now, banks are bracing themselves for a spurt in gold loan demand. In India, households hold more than 22,000 tons of gold worth a whopping $1.3 trillion and gold loans are the best way to leverage these assets in the light of the weak business scenario.