India Gold Loan Market: Regional Perspectives – Mapping the Landscape

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According to a report by TechSci Research titled “India Gold Loan Market– By Region, Competition Forecast & Opportunities, 2019-2029F,” the gold loan market in India has experienced significant growth, primarily led by organized players such as Muthoot Finance, Manappuram Finance, and other smaller entities.

Several factors contribute to the growth of the gold loan market in India, including the ease of securing loans against gold, comparatively low interest rates, and the absence of stringent credit history or collateral requirements. The Reserve Bank of India (RBI) regulates the gold loan market, ensuring fair and transparent lending practices through guidelines that specify maximum loan-to-value ratios and other terms.

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The gold loan market is particularly attractive to borrowers in rural areas with limited access to formal banking services, where gold is considered a secure store of value. Small businesses and traders also find the market appealing for meeting short-term working capital needs.

While concerns exist regarding borrower over-leveraging and potential loan defaults, the overall outlook for the India gold loan market remains positive. Both men and women contribute to the market, with women having a significant role due to cultural factors that consider gold a valuable asset, primarily owned by women in the form of jewelry.

Furthermore, banks and financial institutions have introduced special gold loan schemes exclusively for women, offering lower interest rates, higher loan amounts, and additional benefits, fostering higher participation in the gold loan market.

The report segments the India Gold Loan Market based on various parameters such as the type of lenders, mode of disbursal, market type, end-user, interest rate, and region. Major states like Delhi, Gujarat, Karnataka, Maharashtra, and Andhra Pradesh lead in gold loan provision, with notable performance in cities like Hyderabad, Bengaluru, Chennai, Pune, Delhi, Rajkot, and Surat.

Report Scope

In this report, India Gold Loan Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

India Gold Loan Market, By Type of Lenders:

  • Banks
  • NBFCs
  • Fintech
  • Others

India Gold Loan Market, By Mode of Disbursal:

  • Cash
  • Cheque
  • E-Transfer

India Gold Loan Market, By Market Type:

  • Organized
  • Unorganized

India Gold Loan Market, By End User:

  • Salaried Middle Class
  • Housewives
  • Traders
  • Micro-Enterprises
  • Self-Employed
  • Others

India Gold Loan Market, By Interest Rate:

  • Up to 10%
  • 11%-20
  • 21%-30%
  • 31%-40%
  • Above 40%

India Gold Loan Market, By Region:

  • North
  • West
  • South
  • East
  • Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in India Gold Loan market.

Key market players in the India Gold Loan Market include:

  • Muthoot Finance Ltd
  • Manappuram Finance Ltd
  • Union Bank of India
  • State Bank of India
  • Kotak Mahindra Bank Ltd.
  • ICICI Bank Ltd.
  • HDFC Bank Ltd
  • AXIS Bank Ltd.
  • Central Bank of India
  • Federal Bank Ltd.

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Customers can also request for 10% free customization on this report.

Despite challenges such as borrower over-leveraging and competition from other loan types, the Indian gold loan market is expected to continue growing, driven by the cultural significance of gold, ease of securing loans, and the availability of credit. Mr. Karan Chechi, Research Director at TechSci Research, emphasizes the industry’s trend toward digitalization and the potential for continued growth despite regulatory challenges.

The report, titled “India Gold Loan Market By Type of Lenders (Banks, NBFCs, Fintech, and Others), By Mode of Disbursal (Cash, Cheque, and E-Transfer), By Market Type (Organized and Unorganized), By End User (Salaried Middle Class, Housewives, Traders, Micro-Enterprises, Self-Employed, Others), By Interest Rate (Up to 10%, 11%-20%, 21%-30%, 31%-40%, Above 40%), By Region, Competition Forecast & Opportunities, 2019-2029F,” aims to provide in-depth market intelligence for sound investment decisions, identifying emerging trends, drivers, challenges, and opportunities in the India Gold Loan market.

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About Techsci Research

TechSci Research is a research-based management consulting firm providing market research and advisory solutions to its customers worldwide, spanning a range of industries. TechSci Research’s core values are value, integrity, and insight. Led by a team of dynamic industry experts, TechSci Research provides its customers with high-value market research and advisory services that help them identify new market opportunities, growth engines, and innovative ways to capture the market share. As a result, TechSci’s client leads rather than follow market trends.

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