India’s gold loan market is expected to reach Rs 4,617 billion by 2022 at a five-year compounded annual growth rate of 13.4 per cent, a KPMG report said. The 2018-19 fiscal year saw gold loan companies aggressively expanding their branch network across the northern and eastern states in the country, it said. “Moving forward, these companies are expected to focus on optimising their asset utilisation and leveraging their existing branch infrastructure to maximize the branch-level AUM and customer outreach,” KPMG India said in the report ‘Return of gold financiers in India’s organised lending market’. The emergency of the online and digital models in the gold loan space by NBFCs and new-age fintech players that offer gold loans at the customers’ doorstep have opened up an untapped market among digitally enabled customers, it said.

(Economic Times)