Overdraft against gold offers businessmen flexible repayment options

Industry experts feel that the rise in disbursal of gold loans is due to the NBFC liquidity crisis

Despite going slow on loans across all categories, non-banking financial companies (NBFCs) have started lending aggressively against gold in the recent months. Fresh loan disbursements have slowed down among NBFCs due to tighter liquidity conditions. Many of them are struggling to raise funds.
 
Gold loan disbursements, however, have been rising continually in the past four quarters. It jumped 44 per cent in the January-March quarter of the financial year (FY) 2018-19 compared to the previous quarter, according to data from CRIF High Mark - one of the four credit bureaus in the country. The jump quarter-on-quarter is significant as