Gold is a formidable part of showcasing Indian customs and traditions. Richly clad in gold jewellery forms the basis of Indian tradition and is a sign of prosperity and well being in a society. Also, in a rich social heritage filled with frolic and gay, gold jewellery are always esteemed and in demand. Even gifting gold is also very common in the country.

The tradition of borrowing loans by pledging gold ornaments is not recent and it had been prevalent from earlier times. Over a period of time, the perception of consumers towards gold loan has changed drastically. In the earlier times, gold owned by Indian families was rarely liquidated unless in extreme financial need. In addition, the gold loan or loan against ornaments was taken by the local pawnbrokers and money lenders.

Speculating the growth prospects of Indian Gold Loan Industry, Shushmul Maheshwari, Chief Executive, RNCOS said Owing to high gold stock and high utilization of gold in Southern India, the presence of money lenders was maximal in that region. Likewise, organized gold loan market derived from the South India and have biggest share of almost three-fourth of the total gold loan market. In Southern India, gold loan is very much preferred compared to other loans and has become the culture as the lenders do not accept any other collateral against loan.

In the other regions, organized gold loan market is growing as the players are expanding their network or branches in these regions. Indian households characteristically have an emotional connection and sense of personal belonging to the gold they possess, which is generally in the form of jewellery, coins or bars. However, companies are trying to change the perception of consumers to think gold as a valuable asset to take loan for various purposes.

With over a decade of experience in providing business solutions/ market research and consultancy, RNCOS acts a growth partner to venture into and understand business environment better by providing solutions in all the business endeavors of our customers, be it product launching, geographic expansion, sales improvement, distributor/retailer tie-ups etc. We help the business prosper by providing our customers with actionable market intelligence and insights by studying the market dynamics, collating with the business and devising the right strategies.

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ABOUT RNCOS

RNCOS is a leading industry research and consultancy firm incorporated in 2002. As a pioneer in syndicate market research, our vision is to be a global leader in the industry research space by providing research reports and actionable insights to companies across a range of industries such as Healthcare, IT and Telecom and Retail etc. We offer comprehensive industry research studies, bespoke research and consultancy services to Fortune 1000, Trade associations, and Government agencies worldwide.