RNCOS White Paper: Gold Loan Market is Growing at a Pace

Rural indebtness, easy availability of gold loans on extremely flexible Terms, changing consumer perception towards gold loan will thrive the Indian gold loan market”, Says RNCOS

The Gold Loan Market in India is the leading market in the world probably due to large demand of gold by Indians. India is having the largest gold stock in the world, i.e. more than 22,000 Metric Tons of gold held by the domestic households and temples. Gold has always been a valued commodity. It is considered auspicious, and used in the form of jewellery, coins and other assets in India. Due to its high value, people have been taking loans against gold ornaments for centuries.

The organized gold loan market has been grown tremendously over the last two years with significant growth in some of the specialized NBFCS. However, the recent RBI regulations have capped the loan-to-value (LTV) ratios on lending against gold jewellery. On the contrary, the regulation has made the operations more transparent, especially in case of NBFCs to provide opportunities to banks (both public and private) to grow their share in the coming years.

Speculating the growth prospects of Indian Gold Loan Industry, Shushmul Maheshwari, Chief Executive, RNCOS said Since the gold loan market is highly unorganized, the organized segment has a huge potential for growth through cannibalization of the unorganized segment. A bigger, better and more well-organized network of branches would facilitate the organized segment target this growth area. In India, the gold loan market is still under-penetrated considering the plentiful availability of gold as collateral with Indian private households and the accessible size of the gold loan market. This offers a considerable scope for growth of the gold loan market in India.

To tap the growing market, numerous major players such as Muthoot Finance, Muthoot Fincorp, Manappuram Finance Limited etc are continuously innovating and developing their brands to best suit the Indian market. In order to standardize the valuation and make it more transparent to the borrower, Reserve Bank of India has decided that gold jewellery accepted as security/collateral will have to be valued at the average of the closing price of 22 carat gold for the preceding 30 days as quoted by the India Bullion and Jewellers Association Ltd.

With over a decade of experience in providing business solutions/ market research and consultancy, RNCOS acts a growth partner to venture into and understand business environment better by providing solutions in all the business endeavors of our customers, be it product launching, geographic expansion, sales improvement, distributor/retailer tie-ups etc. We help the business prosper by providing our customers with actionable market intelligence and insights by studying the market dynamics, collating with the business and devising the right strategies.

Download the white paper from this link: http://rncos.viewpage.co/Indian-Gold-Loan-Industry

Check Related REPORTS on: http://www.rncos.com/Banking&Insurance.htm


Contact Details

Company Name: RNCOS E-Services Pvt. Ltd.
Issued By: Shushmul Maheshwari
Phone: 1204224700
Address: G-199, Sector-63
City: Noida
State: Uttar Pradesh
Zip: 201301
Country: India
Website: Visit the website

Keywords : India Gold Loan Market, India Gold Finance Industry, India Organized Gold Loan Market, India Gold Stock, India Gold Demand, Unorganized Gold Loan Market, Public Banks Gold Loan Market, NBFCs Gold Loan Market,

by Shushmul Maheshwari (few months ago!)

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