Gold loan in seven months increased by 50%, growth rate in total loan including personal loan is below 9%

Recently, gold has started giving an opportunity for borrowers. According to data from the Reserve Bank of India, during the first seven months of the current financial year, that is a month from April to October, there has been an increase of 50.4 percent in the loan that is given against jewelry. When the rate of every other personal loan segment is less than 9%, the pace of this growth was not expected.

According to RBI data, the total loan given against gold till October 18 was Rs 1,54,282 crore. It was Rs 1,02,562 crore at the end of March 2024. It increased by 56% on an annual basis. In October 2023, there was only a 13% increase. Bankers said there could be several reasons for the increase in gold loans.

This includes the changes in rules of non-banking financial companies (NBFCs) and prioritizing secured loans over unsecured ones. The increased demand for gold loans has been seen by some analysts as a sign of a financial crisis. As is known, in recent times, the price of gold has reached nearly Rs 80 thousand per ten grams.