Gold loans allow individuals to borrow money using gold as collateral. Some key features of gold loans include being secured, having a short disbursal time, and providing a high loan-to-value ratio. Benefits include not having to sell gold during financial difficulties, no prepayment charges, and interest rates that depend on the amount pledged. Gold loan demand and growth has increased in India in recent years, particularly in rural areas, with commercial banks and NBFCs being major players. There is a strong correlation between growing gold demand and gold loan growth in India.

1. Gold Loans
Making Gold work for you!
Ankush Kumar

2. Agenda:
• Introduction
• Features
• Benefits
• Gold Loans in India
• Conclusion
Ankush Kumar

3. Introduction Customer’s
Gold
Temporary Transfer
Customer Company
Company’s
Fund
•Pledging of gold ornaments, coins, etc.
•The lender provides liquidity for that.
•Predetermined rate of interest.
•Gold Loan is a hassle free finance option.
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4. Features:
•Secured
•Multipurpose
•Low Disbursal time
• High Loan to Value (LTV) Ratio
•Shorter Loan Tenure
•Varied Interest Rates
•Multiple Repayment Options
Ankush Kumar

5. Benefits:
•You need not have to sell your gold for contingencies.
•No charges for pre closing the loans.
•Individuals of low income group or from rural/lower economic
strata can also avail.
•The interest rate is not fixed and depends upon the amount of gold
pledged.
•With the RBI's latest norms, the gold loan extended would be as
low as 60%.
•Quick & easy evaluation of property (gold).
•whole disbursal process is quicker than personal loans.
Ankush Kumar

6. Gold Loans In India
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7. Gold Demand & Loans in India:
•The demand for gold in India is:
•South India states accounting for around 40 % of the annual
demand,
•Followed by the West (25 %),
•North (20-25 %) and
•East (10-15%).
•Rural India accounts for about 65 per cent of total gold stock in
the country
•Banks view gold loans for agriculture as a safer means to meet
their priority sector lending targets
•Commercial banks, cooperative banks and gold loan NBFCs
Major players.
•Thousand of branches spread all over the India.
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8. Gold’s Demand Pattern in India
Demand (Tones) 1079
975
871
792
743
707 716 679
537
486 462 471 467
367
Year 1999 Year 2012*
Source: World Gold Council and Estimations from DGCI&S Data
Ankush Kumar

9. Gold Loans in India:
Annual Growth Rate of Gold Loans:
2011-12 78.3
2010-11 67.2
2009-10 62.6
2008-09 52.5
0 20 40 60 80 100
Total Gold Loans (Per cent)
Average Annual Growth (2008-2012) 65.5%
Source: RBI Report- Jan’13
Ankush Kumar

10. Conclusion:
•Gold Loans Services are the Win-Win situation for
both the parties.
•Demand of Gold increasing rapidly in India & showing the strong
co relation between the growth of Gold Loans & demand of gold
in last 4 years
90
Growth% of Gold Loans
80
70
60
50
40
30
20
10
0
0 200 400 600 800 1000 1200
Demand of Gold (Tones)
Ankush Kumar

11. Thank You
Ankush Kumar