Why NBFC gold loans are growing nearly 70% despite tighter RBI regulations
Non-banking financial company gold loans grew nearly seventy percent year-on-year. This expansion significantly outpaced overall retail credit growth for these institutions. The Reserve Bank of India had introduced new rules for gold lending practices. Despite regulatory scrutiny, demand for gold-backed credit remained robust. Credit growth in industry and services sectors showed moderation…
Non-banking financial companies (NBFCs) issuing gold loans experienced a sharp 69.3% increase in June, reaching Rs 3.41 lakh crore. This growth significantly outpaced the overall expansion of the NBFC retail loan portfolio, which rose by just 20.3% in the same period. Despite the Reserve Bank of India (RBI) tightening its regulations for lending against precious-metal collateral, gold-backed lending has continued to surge rapidly.
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