Published On: Aug 22, 2019

More and more Indians are pawning family gold in case of credit crunch. The trend, which has prompted some lenders to impose restrictions as risks and borrowing costs rise, has been accelerated by record gold prices. ‘As a lot of NBFCs (non-bank financial companies) have become cautious of giving unsecured or even secured loans, we are seeing more customers opting for gold loans instead,’ said Sumit Bali, chief executive officer of IIFL Finance. ‘One can obtain a gold loan and walk out of the branch in just thirty minutes.’ George Muthoot, director at Muthoot Fincorp said, ‘Pledging gold is becoming more lucrative with rising prices. We have seen healthy demand for gold loans in the last few months.’  

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