Capital Small Finance Bank Gold loan show a massive increase in its customer base

Due to less documentation and high market value, a lot of people having idle gold at home are turning to Gold loans as their resort to battling against financial crisis and difficulties. The pandemic COVID-19 has shaken the world to its core and most of all affected their financial status. The Banks and NBFCs to cover their losses have increased their eligibility critics, documents requirement for various loans like personal loan, auto loan, education loan, etc. The increase in the interest rate and processing fee in these loans have also left a lot of customers astray. In such a scenario, getting a personal loan has become a little tedious.

But the Banks have a solution for the people in immediate need of some money. Capital small finance bank is now offering low-interest rates and low processing fees for the customers opting for Gold loans with them. It is also expected that during this fiscal, the average gold prices on-year mean gold-loan assets managed by NBFCs could see a growth of 15-18%. This growth was flat during the first quarter of the financial year due to low disbursement that occurred because of the countrywide lockdown. For months, the doors to all banks and Non-banking finance companies were closed leading to stagnant growth and losses for the banks. Krishnan Sitaraman, Senior Director for CRISIL Ratings in an interview said that though all the forms of loans were affected by the pandemic, gold loans didn’t face a lot of difficulties to get disbursed and collected or even repledging the loans in the lockdown. 

Simultaneously, gold loan financiers like Capital small finance banks are expected to raise great profits from gold loans. Also, according to the latest RBI guidelines, gold loans can be offered up to 90% of the market value. 


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