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Gold Loans – Gold loans are catching up but banks need to beware the risks
As Indian economy embarks on Unlock 1.0, the big challenge for individuals and businesses is the availability of adequate funding to bridge the revenue gaps. In this light, gold loans have emerged as a viable and workable alternative.
Rush for gold loans
The gold loan market was dominated for a long time by the non-banking gold finance companies. The likes of Muthoot and Manappuram from Kerala were the undisputed names in the business. In India, nearly half the gold loan business is unorganized in the sense that it is outside the RBI regulated channels. In the post-COVID scenario, most banks are bracing themselves for a spurt in gold loan demand. It is easier to get and also safer for the banks to disburse as it is back-to-back lending.
blog.tradeplusonline.com/stock-market-updates/gold-loans-...
Gold Loans – Gold loans are catching up but banks need to beware the risks
As Indian economy embarks on Unlock 1.0, the big challenge for individuals and businesses is the availability of adequate funding to bridge the revenue gaps. In this light, gold loans have emerged as a viable and workable alternative.
Rush for gold loans
The gold loan market was dominated for a long time by the non-banking gold finance companies. The likes of Muthoot and Manappuram from Kerala were the undisputed names in the business. In India, nearly half the gold loan business is unorganized in the sense that it is outside the RBI regulated channels. In the post-COVID scenario, most banks are bracing themselves for a spurt in gold loan demand. It is easier to get and also safer for the banks to disburse as it is back-to-back lending.
blog.tradeplusonline.com/stock-market-updates/gold-loans-...