Gold loan AUMs to grow by 15-20% in 2020!
A demand for gold loans through banks & NBFCs In their Market Update for the November 2020 World Gold Council (WGC) published, Gold loans help India weather the Covid-19 storm. At the occasion Somasundaram PR, Managing Director, India, WGC said, “The gold loan industry has traditionally been a pillar of support for small businesses and households in need of emergency short term assistance. In addition to unorganized lending that normally co-exists with any robust gold market, the regulated Institutional framework of “gold loans” in India has made it ubiquitous over the past decade which is indeed a boon. In particular, Covid has boosted demand for gold loans through banks and non-banking financial companies (NBFCs). The recent rise was seen some time since July 2019 when prices started moving up sharply. 28.8% rallies in domestic gold price this year and the need for quick credit among small businesses will further spur gold loans’ growth post Covid. Gold loans will