All the banks ranging from SBI to ESAF have started exploring the gold market deeper.
Canara Bank has set up a Gold Loan business vertical in-order to push gold loans, a secured loan in the form of collateral gold ornaments. These loans will be offered to individuals for emergencies and farmers for crop cultivation.
“To make credit easy for the customers amidst the ongoing pandemic and to address their issues of emerging financial needs and to support their livelihoods, the bank has launched a special business vertical dedicated to gold loans,” Canara Bank said on Monday.
As discussed earlier, SBI said its gold loans are now available through YONO App. Small finance banks like Ujjivan, ESAF, and Jana are also looking to expand their reach in gold loans.
According to the World Gold Council, an estimate of 22000-25000 tonnes of gold is lying with the household sector in the form of assets in India. This can be utilized by the customers in times of financial crisis, thus leaving a huge potential growth for the gold sector according to Canara General Manager.