Add glitter of trust to households
financial services, the gold loan (GL) sector, particularly NBFCs, has substantially evolved over the past two decades. It has become indispensable for lower- and middle-income households, emphasising that GLs are a crucial financial safety net for many.
GLs enable individuals to access cash using gold as collateral without losing ownership. This shows its vital contribution to financial stability. They are short-term, low-obligation debt where borrowers anticipate future financial resources for repayment. GLs go beyond mere financial transactions. They encompass legacy, emotions, promises and deep-rooted trust. They are more than monetary support. They're a testament to the borrower's confidence and determination to face future challenges, fuelling aspirations in their endeavours.
Efforts by GL NBFCs have propelled gold loans into a recognised financial category across India. This push has initiated a noteworthy migration from the unorganised to the formal market. Despite these strides, about 70% of gold loans are still disbursed in the unorganised sector, indicating significant room for growth and integration into the mainstream financial system.
Today's GL market excels by harmoniously blending traditions with contemporary innovations. Each of the top GL NBFCs, through their extensive network of branches, manages over 100,000 customers daily. This is a testament to their skilled combination of hi- tech processes and high-touch service.
Customer loyalty within the sector is unparalleled, with 90% being repeat
