According to the World Gold Council, the Indian gold loan market is expanding rapidly to touch a level of Rs.460,000 crore by FY22. The size of the organized gold loan market is $47 billion and is expected to grow at around 16% annually in the next few years. In the aftermath of COVID, there was a huge demand for gold loans as normal loans linked to credit standing were not easily available. Hence the action shifted to gold loans as CIBIL score does not matter too much in such cases. This has boosted the profits of gold loan companies in India as well as the banks that are into extending gold loans.

Source:- Navia-Tradeplus