Gold Loan- Emerging Oppurtunities and Challenges

Abstract

The desire to possess gold has been ingrained in the psyche of humans for centuries in the fomz of coins, jewellery, bullion etc.Gold has been a status symbol in llldia. It has always been a coveted asset due to its ready acceptability as collateral for lenders coupled with liquidity. According to an estimate of World Gold Council, approximately JO percent of world's gold is in India 's possession. The rise of the middle-income class and compounding increase in purchasing powers complemented by the eamin,: capacity of women- a core Customer group for gold have further provided an impetus to the demand for gold. Gold loan NBFCs have recorded significant growth in recent years in terms of both their balance sheet and physical presence. The present paper attempts to study the key players in gold loan market.the reasons for the rise of Gold loans, and the challenges in the light of the revised RBI Guideline