Report Ocean introduces a fresh report examining the ‘India Gold Loan Market’, encompassing its size, share, growth, industry trends, and forecast up to 2032. This comprehensive analysis delves into various industry components and growth patterns that offer valuable insights for anticipating the market’s future trajectory.
Obtain a comprehensive report on the India Gold Loan Market, which includes a full table of contents, over 100 tables and figures, and charts. The report provides precise information on the market before and after the COVID-19 outbreak, segmented by region.
In 2019, the Indian gold loan market was valued at approximately INR 2,921.42 billion. Projections indicate that this market will witness substantial growth, reaching an estimated value of around INR 6,275.40 billion by 2025. This expansion is expected to occur at a compound annual growth rate (CAGR) of approximately 12.75% during the 2020-2025 period.
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Market Overview:
Gold holds a special place in Indian culture, symbolizing social status, financial security, and a rich cultural heritage. As of 2019, Indian households collectively possessed approximately 25,000 tons of gold, making India the world’s largest holder of this precious metal. Notably, rural communities account for around 65% of the total gold demand in the country. Indians often view gold as a symbol of sentiment and rarely sell it, even in times of financial emergencies. Instead, they prefer to pledge their gold as collateral to secure short-term loans. Gold loans come with relatively low-interest rates, ranging from 9.5% to 24%, and offer flexible repayment tenures, spanning from a few days to five years.
Segment Insights:
The Indian gold loan market is divided into two primary segments: the organized gold loan market (formal) and the unorganized gold loan market (informal). The organized segment comprises public banks, private banks, small finance banks, cooperative banks, Non-Banking Financial Companies (NBFCs), and Nidhi companies. In contrast, the unorganized sector is primarily dominated by money lenders and pawnbrokers.
Currently, the unorganized sector holds a majority share, accounting for over 60% of the Indian gold loan market. However, the organized sector is poised for substantial growth in the foreseeable future.
Among the organized sector players, NBFCs represent the largest share of the market. Rural customers are increasingly turning to NBFCs due to their efficient loan processing, systematic gold valuation, auctioning processes, and secure storage facilities. Banks also offer gold loans, primarily as part of their Priority Sector Lending (PSL) requirements. Additionally, small finance and Nidhi companies make up the cooperative segment of the Indian gold loan industry, contributing approximately 12.98% to the organized gold loan market. Private sector banks are gradually entering the Indian gold loan market, introducing tech-driven solutions such as online gold loan services.
Impact of COVID-19:
The Indian gold loan market experienced a positive impact during the nationwide lockdown prompted by the COVID-19 pandemic. Gold loan products outperformed other retail banking products during this period. As economic distress and job losses mounted, gold emerged as a form of insurance and retirement planning for many Indians. People turned to gold loans to meet their immediate financial needs.
Furthermore, the demand for gold loans is expected to continue expanding, as borrower risk profiles have deteriorated significantly, and lenders are becoming more risk-averse. Many NBFCs are facing liquidity challenges, which are affecting their capacity to provide loans. Consequently, gold loans are becoming a reliable option for borrowers who face difficulties obtaining loans through traditional channels.
Key Companies:
- Axis Bank of India
- Central Bank of India
- Federal Bank Limited
- HDFC Bank Limited
- ICICI Limited
- Kotak Mahindra Bank Limited
- Manappuram Finance Limited
- Muthoot Finance Limited
- State Bank of India
- Union Bank of India
Reasons to Consider Purchasing the India Gold Loan Market Report:
Comprehensive Market Insights: Delve into the depths of the India Gold Loan Market Report to gain an all-encompassing and meticulous analysis of the market landscape. Uncover details such as market size, share, trends, and growth catalysts, which provide invaluable perspectives on both the present market scenario and its promising future prospects.
Reliable Projections: Rely on the report’s dependable forecasts and projections, which are underpinned by rigorous research methodologies, insights into industry expenditures, and assessments of market expansion rates. These foresights empower businesses to make well-informed decisions and chart out effective strategies for the times ahead.
In-depth Competition Analysis: Equip yourself with an extensive evaluation of key market players, their array of products, and the strategies they employ. This comprehensive understanding arms businesses with the knowledge needed to not only comprehend their rivals but also to craft strategies that position them ahead in the dynamic market arena.
Clear Market Scope and Segmentation: Gain clarity on the broad expanse of the market through the report’s clear delineation of market scope. With detailed insights into diverse market segments and their growth potential, businesses can discern and capitalize on opportunities that align with their objectives.
Insightful Regional Examination: Assess the market’s performance across different regions, enabling enterprises to pinpoint lucrative markets and tailor their approaches accordingly. With region-specific insights, businesses can adapt strategies that resonate with the unique dynamics of each area.
Evaluation of Industry Technology: Grasp the pulse of technological progress within the India Gold Loan market. The report dissects cutting-edge advancements and trends, providing businesses with a window into emerging technologies that have the potential to reshape the industry.
Dynamics of Supply and Demand: Acquire a profound comprehension of supply-demand dynamics. This understanding empowers businesses to optimize production, distribution, and inventory management processes, resulting in enhanced operational efficiency.
Informed Investment Decision Making: Leverage the report’s critical information and data-driven insights to facilitate informed investment choices within the India Gold Loan market. Equipped with this knowledge, businesses can confidently allocate resources to avenues with the greatest potential for returns.
Unveiling Long-Term Growth Avenues: Through the scrutiny of trends and growth stimulants, the report illuminates the enduring opportunities the India Gold Loan market holds. By identifying these sustainable growth prospects, businesses are poised to set a course for lasting success.
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