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Gold Loans Gain Momentum as NBFCs Target Tier-2 Borrowers
Gold-loan disbursals rise sharply as NBFCs expand into smaller cities, offering faster, lower-cost secured credit options.
Non-bank lenders are reporting double-digit growth in gold-backed loans, with firms like Muthoot Finance and Manappuram Finance expanding aggressively into semi-urban markets. Lower processing times, flexible repayment and easing interest rates have revived household borrowing against pledged jewellery. Analysts note that while demand is strong, loan-to-value ratios remain conservative, reflecting regulatory caution. The segment is seen as a reliable short-term credit bridge amid uneven rural cash flows and soft agri income.