Surveying The Indian Gold Loan

Cognizant 20-20 Insights Surveying the Indian Gold Loan mart executive director Summary Gold has long been a valued commodity, particularly in India where it is considered auspicious, and has been in use for centuries in the form of jewelry, coins and other assets. though fortunate is a exceedingly pellucid asset, it wasnt until belatedly that consumers leveraged it effectively to meet their liquidness submits. Lenders provide impartwords by securing fortunate assets as collateral. Compared with the rest of the world, in India the bullion loan mart is big business. Until a decennium back, most of the lending was in the un make sector with pawnbrokers and money lenders. However, this scenario changed with the entrance of nonionized sector players such as banks and non-banking finance companies (NBFCs) which now overshadow more than 25% of the marketplaceplace. The organized gold loan market has grown at 40% CAGR from 2002 to 2010. NBFCs develop been a major driv ing force substructure this growth given their extensive network, faster turnaround time, high loan-to-value ratios and the ability to serve non-bankable customers. Of late, banks deal improved their gold loan harvest-feast features and services. Coupled with relatively lower take rates and charges, banks live to gain market share at the expense of NBFCs in the near future.

With fast growth, regulatory scrutiny has increased on gold loan lending practices. NBFCs are under great focus as a result of their higher interest rates and charges, and non-adherence to realize your customer (KYC) regulations. This ma y further tinct the dominance of NBFCs in t! he gold loan market. At beneficial 1.2% of the total gold stock in the country at present, gold loans have a huge growth potential. However, firms need to develop distribution, product and risk mitigation strategies to get a share of the pie in a profitable and sustainable fashion. play down: Gold and the Indian Society As previously noted, gold has traditionally been among the most liquid assets and is an...If you want to get a full essay, order it on our website: BestEssayCheap.com

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