Gold has always been a
valued commodity. Particularly in India, it is considered as auspicious,
and used in the form of jewelry, coins and other assets. Due to their
high value, people have been taking loans against gold ornaments for
centuries. Till about a decade ago, most of such lending activities used
to take place in the unorganized sector through pawnbrokers and money
lenders. However, the scenario has changed with the entry of organized
players. According to our latest report, in the past few years, banks
and non-banking finance companies (NBFCs) have made a significant
presence in the gold loan market. It is anticipated that the organized
gold loan market will grow at a compound annual rate of 25.5% during FY
2012 to FY 2015.
