Gold Loans

Making Gold work for you!

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

Ankush
Kumar
Introductio Customer
n s Gold

Temporary Transfer
Custo Compa
mer ny

Compan
ys 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.
Ankush
Kumar
Features:
Secured
Multipurpose
Low Disbursal time
High Loan to Value (LTV) Ratio
Shorter Loan Tenure
Varied Interest Rates
Multiple Repayment Options

Ankush
Kumar
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
Gold Loans In
India

Ankush
Kumar
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.

Ankush
Kumar
Golds Demand Pattern in
India

Demand (Tones) 1079

975
871
792
743
707 716 679

537
486 462 471 467
367

Year Year
1999 2012*

Ankush
Source: World Gold Council and Estimations from
DGCI&S Data Kumar
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 10 20 30 40 50 60 70 80 90
Total Gold Loans (Per cent)
Average Annual Growth (2008-
2012) 65.5%
Ankush
Source: RBI Report-
Kumar
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%
80 of Gold Loans
70
60
50
40
30
20
10
0
700 750 800 850 900 950 1000 1050 1100

Demand of Gold (Tones) Ankush

Kumar
Thank You

Ankush
Kumar