Summary:

According to PwC India's "Striking Gold" research, India's organized gold loan market is expected to triple in five years to US$ 169.07 billion (Rs. 14.19 lakh crore) at a CAGR of 14.85%. In fiscal 2023-24, the market rose to US$ 84.59 billion (Rs. 7.1 lakh crore). With Indian families owning around 25,000 tonnes of gold valued at US$ 1.50 trillion (Rs. 126 lakh crore), the industry may experience slower growth in FY25 due to tightened restrictions and the inactivity of a significant market participant.

The Reserve Bank of India's advisory restricting cash disbursement to US$ 238.29 (Rs. 20,000) may drive customers into the unorganized sector. Concerns about fintech assessments and heightened regulatory scrutiny have lowered share values for large NBFCs. Rising gold prices may encourage cautious lending to prevent LTV violations. Digital gold loan aggregators will target technologically savvy users. South India accounts for 79.1% of the market, although not all gold will be available for pledging.

Source: IBEF 

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