India Gold Loan Market By Type of Lenders (Banks, NBFCs, Fintech, and Others (Local Providers, etc.)), By Mode of Disbursal (Cash, Cheque, and E-Transfer), By Market Type (Organized and Unorganized), By End User (Salaried Middle Class, Housewives, Traders, Micro-Enterprises, Self-Employed, Others) By Interest Rate (Up to 10%, 11%-20%, 21%-30%, 31%-40%, Above 40%), By Region, Competition Forecast & Opportunities, 2019-2029F

Industry : BFSI
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Published Date : NA

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Summary

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Report Description

Forecast Period	2025-2029
Market Size (2023)	USD80.12 Billion
CAGR (2023-2028)	6.80%
Fastest Growing Segment	NBFCs
Largest Market	South India

The India Gold Loan Market was valued at USD80.12 Billion in 2023 and is anticipated to grow with a CAGR of 6.80% through 2029. The India Gold Loan Market is growing at a robust growth rate owing to increasing demand for credit, availability of affordable gold loan options, and government initiatives.

India Gold Loan Market Scope

Gold loan is a type of secured loan where a borrower pledges their gold jewelry, coins, or bars as collateral to avail of a loan from a lender. The loan amount is typically a percentage of the gold's market value and is disbursed by the lender to the borrower, who is required to repay the loan amount along with interest within a specific period.

Gold loans are popular in India, where gold is considered a cultural and traditional asset, and are typically used by borrowers for short-term financing needs such as medical emergencies, education expenses, business needs, and other urgent financial requirements.

Gold loans have several advantages, including quick and easy processing, lower interest rates, no credit score requirement, and high loan-to-value ratio.

India Gold Loan Market Overview

The gold loan market in India is a significant and growing sector of the Indian financial services industry. Gold loans are popular in India, where gold is considered a cultural and traditional asset. The gold loan market provides quick and easy access to credit for individuals who may not have access to traditional forms of credit or prefer not to take on unsecured debt.

The gold loan market in India is highly competitive, with several players offering a range of loan products with varying terms and interest rates. Lenders are increasingly using technology to offer digital gold loans, making the loan application and disbursal process more streamlined and convenient for borrowers.

Overall, the gold loan market in India provides a significant opportunity for lenders and investors, and its growth is expected to continue in the coming years, driven by the increasing demand for credit, rising gold prices, and digital transformation.

India Gold Loan Market Drivers

The India Gold Loan Market is driven by several factors that have contributed to its significant growth over the years. One of the key drivers is the cultural and traditional affinity for gold as an asset class in India. Gold has always been considered a symbol of wealth and prosperity in the country, and it is commonly used for weddings, festivals, and other occasions. This cultural inclination towards gold has resulted in a large gold reserve in Indian households, making it a readily available source of collateral for loans. Another significant driver of the gold loan market in India is the growing demand for credit in both rural and urban areas. With the Indian economy continuing to grow, there is an increasing demand for credit, particularly in rural areas where access to credit may be limited. Gold loans are an attractive option for borrowers who may not have access to other forms of credit or who prefer not to take on unsecured debt. Moreover, gold loans are generally processed quickly and have lower interest rates compared to other forms of credit.

The increasing gold prices in recent years have also contributed to the growth of the gold loan market in India. Higher gold prices have led to an increase in the loan amount that can be availed against gold collateral, making gold loans more attractive to borrowers. This trend has resulted in a surge in demand for gold loans, particularly in rural areas where gold is widely available.

Government initiatives to promote financial inclusion and increased access to credit have also played a significant role in driving the growth of the gold loan market in India. The Pradhan Mantri Jan Dhan Yojana and the Mudra Yojana are two such initiatives launched by the Indian government that provide loans to small businesses and entrepreneurs, thereby increasing their access to credit. These initiatives have resulted in an increase in the number of borrowers seeking gold loans for their financial needs.

India Gold Loan Market Trends

The India Gold Loan Market has witnessed several trends in recent years that have influenced its growth and development. One of the most prominent trends is the increasing use of technology in the gold loan market. Gold loan providers are increasingly using technology to offer digital gold loans, enabling borrowers to apply for loans online and receive disbursals directly to their bank accounts. This has made the gold loan application and disbursal process faster, more convenient, and less cumbersome for borrowers. Additionally, lenders are using artificial intelligence (AI) and machine learning (ML) algorithms to analyze gold prices and other data to offer customized loan products to borrowers.

The gold loan market in India has also witnessed an increase in the number of small ticket loans. This trend is driven by the increasing demand for small loans from individuals and small businesses. The small ticket loans have a short tenure, and borrowers can avail these loans without providing any income proof. The loans are processed quickly and disbursed within few hours, making them an attractive option for borrowers who need quick access to cash.

Furthermore, gold loan providers are offering flexible repayment options to borrowers. Lenders are offering repayment options like EMIs, bullet payments, and overdraft facilities, which offer greater flexibility to borrowers in repaying their loans. This flexibility in repayment options has made gold loans more accessible to a wider range of borrowers, including those who may have struggled with traditional loan repayment structures.

India Gold Loan Market Challenges

While the India Gold Loan market has experienced significant growth in recent years, it also faces several challenges that could impact its future growth and sustainability. One of the biggest challenges is the increasing volatility of gold prices. Gold prices are subject to fluctuations due to several factors, including global economic conditions, political instability, and changes in monetary policy. Such fluctuations can lead to a reduction in the loan amount that borrowers can avail of, thereby impacting the demand for gold loans.

Another challenge faced by the Gold Loan Market in India is the risk associated with the physical custody of gold. The physical custody of gold requires secure storage facilities, which can be expensive to maintain. Moreover, gold thefts and frauds can also pose a significant risk to lenders. To address this challenge, lenders are increasingly adopting secure storage facilities and insurance policies to mitigate these risks.

Recent Developments

· In 2021, Shivalik Small Finance Bank (SSFB) and fintech company, Indiagold, signed a partnership agreement to introduce the first loan against digital gold. Customers will be able to access instant, digital loans up to USD805 through this agreement, and they will also be able to access gold loans with interest rates as low as 1% per month. The partnership was done to give customers quick liquidity against their gold assets access to affordable, secure credit.

· In 2021, Indiagold raised USD12 million in funding to expand its operations across the country and scale its business.

PayU, a provider of financial services, and Alpha Wave Incubation (AWI), a fund run by Falcon Edge Capital, took the lead in the Series A round. Along with Leo Capital, other investors Better Tomorrow Ventures, 3one4 Capital, Rainmatter Capital, and others took part in the round.

Market Opportunities

The India gold loan market offers significant opportunities for growth and development. With a long-standing cultural affinity for gold, India has one of the largest consumer markets for gold in the world. This has led to the establishment of a vast network of gold loan providers, including banks, non-banking financial companies, and other financial institutions. The gold loan market has witnessed steady growth over the years, driven by factors such as the increasing demand for short-term credit, the rise of the unorganized sector, and the expansion of digital lending platforms. The Indian government has also taken steps to promote the gold loan market, such as introducing gold monetization schemes and reducing the import duty on gold. These factors combined make the India gold loan market an attractive opportunity for both domestic and international investors seeking to tap into the growing demand for gold-backed loans.

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Market Segmentation

The India Gold Loan market is segmented based on type of lenders, mode of disbursal, market type, end user, interest rate, region and competitive landscape. Based on type of lenders the market is segmented into Banks, NBFCs, Fintech, and Others (Local Providers, etc.). Based on mode of disbursal the market is segmented into Cash, Cheque, and E-Transfer. Based on market type the market is segmented into organized and unorganized. Based on end user the market is fragmented into Salaried Middle Class, Housewives, Traders, Micro-Enterprises, Self-Employed, Others. Based on interest rate the market is segmented into Up to 10%, 11%-20%, 21%-30%, 31%-40%, Above 40%. Based on region, the market is divided into north, south, east, west.

Company Profiles

Muthoot Finance Ltd, Manappuram Finance Ltd, Union Bank of India, State Bank of India, Kotak Mahindra Bank Ltd., ICICI Bank Ltd., HDFC Bank Ltd, AXIS Bank Ltd., Central Bank of India, and Federal Bank Ltd. are some of the major players in the India Gold Loan Market.

Attribute	Details
Base Year	2023
Historic Data	2019 – 2022
Estimated Year	2024
Forecast Period	2025 – 2029
Quantitative Units	Value in USD Million, CAGR for 2019-2023 and 2024-2029
Report Coverage	Revenue forecast, company share, competitive landscape, growth factors, and trends
Segments Covered	Type of Lenders Mode of Disbursal Market Type End User Interest Rate Region
Regional scope	North, West, South, East.
Key Companies Profiled	Muthoot Finance Ltd, Manappuram Finance Ltd, Union Bank of India, State Bank of India, Kotak Mahindra Bank Ltd., ICICI Bank Ltd., HDFC Bank Ltd, AXIS Bank Ltd., Central Bank of India, and Federal Bank Ltd.
Customization scope	10% free report customization with purchase. Addition or alteration to country, regional & segment scope.
Pricing and purchase options	Avail customized purchase options to meet your exact research needs. Explore purchase options
Delivery Format	PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request)

Report Scope:

In this report, India Gold Loan Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

India Gold Loan Market, By Type of Lenders:

Banks
NBFCs
Fintech
Others

India Gold Loan Market, By Mode of Disbursal:

Cash
Cheque
E-Transfer

India Gold Loan Market, By Market Type:

Organized
Unorganized

India Gold Loan Market, By End User:

Salaried Middle Class
Housewives
Traders
Micro-Enterprises
Self-Employed
Others

India Gold Loan Market, By Interest Rate:

Up to 10%
11%-20
21%-30%
31%-40%
Above 40%

India Gold Loan Market, By Region:

North
West
South
East

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in India Gold Loan market.

Available Customizations:

With the given market data, TechSci Research offers customizations according to a company’s specific needs. The following customization options are available for the report:

Company Information

Detailed analysis and profiling of additional market players (up to five).

India Gold Loan Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]

Table of content

1. Introduction

1.1. Product Overview

1.2. Key Highlights of the Report

1.3. Market Coverage

1.4. Market Segments Covered

1.5. Research Tenure Considered

2. Research Methodology

2.1. Objective of the Study

2.2. Baseline Methodology

2.3. Key Industry Partners

2.4. Major Association and Secondary Sources

2.5. Forecasting Methodology

2.6. Assumptions and Limitations

3. Executive Summary

3.1. Market Overview

3.2. Market Forecast

3.3. Key Regions

3.4. Key Segments

4. Voice of Customer Analysis

4.1. Brand Awareness

4.2. Factors Influencing Purchase Decision

4.3. Challenges Faced Post Purchase

5. India Gold Loan Market Outlook

5.1. Market Size & Forecast

5.1.1. By Value

5.2. Market Share & Forecast

5.2.1. By Type of Lenders Market Share Analysis (Banks, NBFCs, Fintech, and Others (Local Providers, etc.))

5.2.2. By Mode of Disbursal Market Share Analysis (Cash, Cheque, and E-Transfer)

5.2.3. By Market Type Market Share Analysis (Organized and Unorganized)

5.2.4. By End User Market Share Analysis (Salaried Middle Class, Housewives, Traders, Micro-Enterprises, Self-Employed, Others)

5.2.5. By Interest Rate Market Share Analysis (Up to 10%, 11%-20%, 21%-30%, 31%-40%, Above 40%)

5.2.6. By Region Market Share Analysis

5.2.6.1. North India Market Share Analysis

5.2.6.2. West India Market Share Analysis

5.2.6.3. South India Market Share Analysis

5.2.6.4. East India Market Share Analysis

5.2.7. By Company Market Share Analysis

5.3. India Gold Loan Market Mapping & Opportunity Assessment

5.3.1. By Type of Lenders Market Mapping & Opportunity Assessment

5.3.2. By Mode of Disbursal Market Mapping & Opportunity Assessment

5.3.3. By Market Type Market Mapping & Opportunity Assessment

5.3.4. By End User Market Mapping & Opportunity Assessment

5.3.5. By Interest Rate Market Mapping & Opportunity Assessment

5.3.6. By Region Market Mapping & Opportunity Assessment

6. India Bank Gold Loan Market Outlook

6.1. Market Size & Forecast

6.1.1. By Value

6.2. Market Share & Forecast

6.2.1. By Mode of Disbursal Market Share Analysis

6.2.2. By Market Type Channel Market Share Analysis

6.2.3. By End User Channel Market Share Analysis

6.2.4. By Interest Rate Channel Market Share Analysis

7. India NBFC Gold Loan Market Outlook

7.1. Market Size & Forecast

7.1.1. By Value

7.2. Market Share & Forecast

7.2.1. By Mode of Disbursal Market Share Analysis

7.2.2. By Market Type Channel Market Share Analysis

7.2.3. By End User Channel Market Share Analysis

7.2.4. By Interest Rate Channel Market Share Analysis

8. India Fintech Gold Loan Market Outlook

8.1. Market Size & Forecast

8.1.1. By Value

8.2. Market Share & Forecast

8.2.1. By Mode of Disbursal Market Share Analysis

8.2.2. By Market Type Channel Market Share Analysis

8.2.3. By End User Channel Market Share Analysis

8.2.4. By Interest Rate Channel Market Share Analysis

9. Market Dynamics

9.1. Drivers

9.1.1. Quick Disbursement

9.1.2. Lower Interest Rates

9.1.3. Growth of Digital Channels

9.2. Challenges

9.2.1. Gold Price Volatility

9.2.2. Competition from Other Lenders

10. Market Trends & Developments

10.1. Growth of Gold Loan Securitization

10.2. Diversification of Loan Offerings

10.3. Increasing Focus on Customer Experience

10.4. Partnership with fintech

10.5. Digital transformation

11. Porter’s Five Forces Model

11.1. Competitive Rivalry

11.2. Bargaining Power of Buyers

11.3. Bargaining Power of Suppliers

11.4. Threat of New Entrants

11.5. Threat of Substitutes

12. SWOT Analysis

12.1. Strengths

12.2. Weaknesses

12.3. Opportunities

12.4. Threats

13. Policy & Regulatory Landscape

14. India Economic Profile

15. Competitive Landscape

15.1. Company Profiles

15.1.1. Muthoot Finance Ltd.

15.1.1.1. Company Details

15.1.1.2. Product

15.1.1.3. Financials (As Per Availability)

15.1.1.4. Key market Focus & Geographical Presence

15.1.1.5. Recent Developments

15.1.1.6. Key Management Personnel

15.1.2. Manappuram Finance Ltd.

15.1.2.1. Company Details

15.1.2.2. Product

15.1.2.3. Financials (As Per Availability)

15.1.2.4. Key market Focus & Geographical Presence

15.1.2.5. Recent Developments

15.1.2.6. Key Management Personnel

15.1.3. Union Bank of India

15.1.3.1. Company Details

15.1.3.2. Product

15.1.3.3. Financials (As Per Availability)

15.1.3.4. Key market Focus & Geographical Presence

15.1.3.5. Recent Developments

15.1.3.6. Key Management Personnel

15.1.4. State Bank of India

15.1.4.1. Company Details

15.1.4.2. Product

15.1.4.3. Financials (As Per Availability)

15.1.4.4. Key market Focus & Geographical Presence

15.1.4.5. Recent Developments

15.1.4.6. Key Management Personnel

15.1.5. Kotak Mahindra Bank Ltd.

15.1.5.1. Company Details

15.1.5.2. Product

15.1.5.3. Financials (As Per Availability)

15.1.5.4. Key market Focus & Geographical Presence

15.1.5.5. Recent Developments

15.1.5.6. Key Management Personnel

15.1.6. ICICI Bank Ltd.

15.1.6.1. Company Details

15.1.6.2. Product

15.1.6.3. Financials (As Per Availability)

15.1.6.4. Key market Focus & Geographical Presence

15.1.6.5. Recent Developments

15.1.6.6. Key Management Personnel

15.1.7. HDFC Bank Ltd.

15.1.7.1. Company Details

15.1.7.2. Product

15.1.7.3. Financials (As Per Availability)

15.1.7.4. Key market Focus & Geographical Presence

15.1.7.5. Recent Developments

15.1.7.6. Key Management Personnel

15.1.8. AXIS Bank Ltd.

15.1.8.1. Company Details

15.1.8.2. Product

15.1.8.3. Financials (As Per Availability)

15.1.8.4. Key market Focus & Geographical Presence

15.1.8.5. Recent Developments

15.1.8.6. Key Management Personnel

15.1.9. Central Bank of India

15.1.9.1. Company Details

15.1.9.2. Product

15.1.9.3. Financials (As Per Availability)

15.1.9.4. Key market Focus & Geographical Presence

15.1.9.5. Recent Developments

15.1.9.6. Key Management Personnel

15.1.10. Federal Bank Ltd.

15.1.10.1. Company Details

15.1.10.2. Product

15.1.10.3. Financials (As Per Availability)

15.1.10.4. Key market Focus & Geographical Presence

15.1.10.5. Recent Developments

15.1.10.6. Key Management Personnel

16. Strategic Recommendations/Action Plan

16.1. Key Focus Areas

16.2. Target Regions

16.3. Target Type of Lenders

17. About Us & Disclaimer

(Note: The companies list can be customized based on the client requirements.)

Figures and Tables

Frequently asked questions

What are the key factors driving the growth of India Gold Loan Market?

The key factors driving the India Gold Loan market are quick disbursement, lower interest rates, and growth of digital channels.

What are the challenges faced by India Gold Loan Market?

Gold price volatility and competition from other lenders are the major challenges in the India gold loan market.

What is the scope of gold loan in India?

The scope of gold loan in India is significant, given the country's cultural affinity for gold and the increasing demand for credit in both rural and urban areas. Gold loan is an attractive option for borrowers who may not have access to other forms of credit or who prefer not to take on unsecured debt.

Who are the key players in the India Gold Loan Market?

The key players in the India Gold Loan Market are Muthoot Finance Ltd, Manappuram Finance Ltd, Union Bank of India, State Bank of India, Kotak Mahindra Bank Ltd., ICICI Bank Ltd., HDFC Bank Ltd, AXIS Bank Ltd., Central Bank of India, and Federal Bank Ltd.

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Business Consultant

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Press Release

The India Gold Loan Market to Be Fueled By NBFCs During the Forecast Period

May, 2023

Increasing gold prices, digital transformation and diversification of loan offerings are the leading factors that will drive the India gold loan market in the forecast years.