{
  "id": 14693512,
  "title": "Gold Loans, MSME Credit & Digital Lending: Rakesh Singh On India’s Changing Borrowing Habits",
  "url": "https://urgent.news/2026/10/15/gold-loans-msme-credit-digital-lending-rakesh-singh-on-indias",
  "topic": "world",
  "section": "World",
  "published": "2026-10-15T11:54:05.000Z",
  "source": {
    "name": "Free Press Journal",
    "slug": "free-press-journal",
    "url": "https://www.freepressjournal.in/business/gold-loans-msme-credit-digital-lending-rakesh-singh-on-indias-changing-borrowing-habits"
  },
  "original_language": "en",
  "account": "Rakesh Singh, Executive Director and CEO at Aditya Birla Capital, discussed India's changing borrowing habits on The Simple Hai! Show. The conversation covered the growth of gold loans, challenges faced by micro, small and medium enterprises (MSMEs), the role of digital lending platforms, and the importance of responsible borrowing.\n\nGold loans, which allow households to use their gold as collateral, have seen significant growth in recent years. India has an estimated USD 5 trillion worth of gold held by families, providing a substantial opportunity for the industry. Factors such as rising gold prices and the convenience of using existing assets as collateral have contributed to the sector's expansion. The gold loan market is currently valued at around Rs 19 lakh crore, with NBFCs contributing approximately Rs 4 lakh crore.\n\nHowever, accessing formal credit remains a challenge for many MSMEs. Singh noted that small businesses often turn to friends, family, or local sources for financing, sometimes at higher interest rates, due to limited access to suitable formal financing. Banks, NBFCs, and fintech companies all have roles to play in addressing this credit gap by offering products tailored to different customer needs and ensuring efficient processes. In fact, around 57-58% of Aditya Birla Capital's loan book is directed towards MSMEs.\n\nDigital platforms are transforming the lending landscape by enabling lenders to assess small businesses more easily. Singh highlighted the importance of digital payments, Aadhaar-based verification, PAN linkages, GST records, and credit bureau information in providing lenders with a clearer understanding of customers and their financial activity. Aditya Birla Capital developed its Udyog Plus platform, which currently has nearly 2.4 million registered businesses.\n\nWhile digital lending offers convenience, Singh cautioned that easier access to credit also brings risks. Customers who take multiple loans from various lenders may face increased debt burdens. Lenders must monitor borrowers' leverage and ensure that repayment capacity is suitable for their financial circumstances, especially for those with irregular or seasonal earnings. Maintaining awareness around credit scores and repayment discipline is essential to prevent negative impacts on future loan access.",
  "summary": "India’s lending landscape is evolving as technology makes credit more accessible and businesses look for faster ways to raise funds. From households using gold as collateral to small businesses seeking formal credit, borrowing is becoming an important part of how individuals and enterprises manage their financial needs. In a conversation with Vivek Law on The Simple Hai! Show, Rakesh Singh,…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}