Gold Loans

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The gold loan portfolio of banks rose by 71.3 per cent year-on-year (Y-o-Y) till December 2024 to Rs 1.72 trillion

Commercial banks reported a 62 per cent increase in gold loan NPAs, which rose to Rs 2,445 crore in June 2024 from Rs 1,513 crore in March 2024

Gold loan financier Indel Money on Monday said it plans to raise up to Rs 150 crore through non-convertible debentures to fund business growth. The issue, which is open from October 21 to November 4, has an option of early closure in case of early over-subscription, Indel Money said in a statement. The funds raised through this issue will be used for the purpose of onward lending, financing, and for repayment/prepayment of principal and interest on borrowings of the company and general corporate purposes, it said. The company expects to penetrate new markets and expand its customer base in rural and semi-urban markets where a large portion of the population has limited access to credit, it said. Gold loan accounts for 91.82 per cent of the company's loan portfolio. The company has a network of 324 branches.

To enter gold loans, microfinance loans, and co-branded card segment; Co. to tap the dollar bond market soon

Muthoot Finance, Manappuram Finance shares slipped after the RBI found several irregular practices being followed by gold loan financiers

The gold loan segment has expanded at a compound annual growth rate (CAGR) of 25 per cent between FY20 and FY24, Icra said

India's organized gold loan market is poised to reach a new milestone, with rating agency Icra forecasting it to exceed Rs 10 trillion in the current financial year, and Rs 15 trillion by March 2027.

IIFL fell under regulatory scrutiny in March amid a crackdown on financial firms, when it was asked by RBI to stop disbursing new gold-backed lending following 'material supervisory concerns'

IIFL fell under regulatory scrutiny in March amid a crackdown on financial firms, when it was asked by RBI to stop disbursing new gold-backed lending following 'material supervisory concerns'

Follows RBI curbs on lender in March this year

Regulator last year hiked risk weights for unsecured loans and put curbs on IIFL Finance, a large player in gold loan business

Firm will not sell gold loans to asset reconstruction companies as the RBI is 'not comfortable', says George Alexander Muthoot

According to reports, the RBI has said no gold loan NBFC should disburse loan amount in excess of Rs 20,000 in cash

NBFCs are required to maintain a Loan-to-Value (LTV) ratio not exceeding 75 per cent for loans granted against the collateral of gold jewellery

Rightly so. Since November 1962, there have been many attempts to monetise gold. It's finally happening, but we must look for sustainable growth

Adds two directors on board, rejigs top management

The finance ministry has directed all state-owned banks to review their gold loan portfolio as instances of non-compliance with regulatory norms have been noticed by the government. The Department of Financial Services (DFS) in a communication addressed to heads of public sector banks has asked them to look at their system and processes related to gold loan. "We have asked banks to undertake comprehensive review of the gold loan business," Financial Services Secretary Vivek Joshi told PTI. A directive in this regard was issued last month advising them to fix anomalies relating to collection of fees and interest and closure of gold loan accounts. The letter flagged various concerns, including disbursement of gold loans without requisite gold collateral, anomalies regarding collection of fees and repayment in cash. The DFS urged banks to undertake a thorough review of the last two-year period from January 1, 2022 to January 31, 2024 so as to ensure that all gold loans were disburse

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