Loan Against Gold Provider in India

Loan distributes against 24ct and 22ct gold; Loan Tenor from 30 to 365 days; Loan Amount - INR 3k to INR 1000k;

Gold considered an auspicious metal is opening up business opportunities in India. Largely driven by the unorganized segment in the past, most of whom included the pawn brokers, the gold loan market has now started to be driven heavily by the organized segment. The stigma attached to pledging gold is slowly thinning among people while companies are campaigning that gold is an effective assistant at the time of financial need. Express loan within 5 minutes is the most attractive feature of this loan product offered by almost all the market leaders.

Having identified the potential business opportunities as well as the risks involved, even the Micro financial institutions are opening up shops to get market share in rural India.

According to IMACS, India is one of the largest market of gold accounting with about 10% of the world gold stock weighing 18000 tons of gold. Value of gold stock has been growing at about 22% (CAGR) since FY 2002 in India. According to Manappuram finance limited, the second largest market player in the gold loan industry, only about 10% of the gold available in India is used for gold loan leaving room for potential business opportunity. In FY 2010, 33% of the market share in the gold loan market was held by 3 major gold loan companies giving a tough competition to the commercial banks who held more than 80% of the market share three years back.

Investors can contact us on Merar for more information.