Gold Loan Growth 2024: Rs 10 lakh crore will be distributed in the gold loan market, know how the market has gained momentum, how you can take loan…

Gold Loan Growth 2024: Gold loans through banks and NBFCs are growing at the rate of 8.45% annually. ICRA has estimated to distribute gold loans worth Rs 10 lakh crore in the current financial year 2024-25. The credit rating agency has estimated it to reach Rs 15 lakh crore in the next three years.

AM Karthik, co-group head of ICRA's Financial Sector Ratings, said, 'The Reserve Bank has tightened the rules for unsecured loans like personal loans. Meanwhile, due to rising gold prices, the trend of taking gold loan is increasing in 2023-24. It is expected to accelerate in the next financial year i.e. 2024-25.

Annual increase of 25% in last 3 years

According to ICRA report, the dominance of top-4 companies in the gold loan market was 83% in 2023-24. The organized gold loan market is expected to grow by 25% annually between 2019-20 and 2023-24.

During this period, the gold loan book of banks has increased by 26% and the gold loan book of NBFCs has increased by 18%. During the same period, agricultural loans taken against pledge of jewelery from banks have increased by 26% and retail gold loans by 32%.

For how long can you take a loan?

Generally you get 3 to 2 years to repay the loan. But it depends on the bank and NBFC. Like HDFC Bank gives loans ranging from 3 months to two years. SBI gives for up to three years. Muthoot and Mannapuram give loans for long periods.

Know how much gold loan you can take

You will get a maximum loan of Rs 90 thousand on gold worth one lakh. SBI gives gold loan up to Rs 50 lakh. Besides, they also give a loan of Rs 1500. Since these companies only provide gold loans, there is no maximum limit.

These documents are needed

According to SBI website, you will have to provide PAN card, Aadhaar and 2 passport size copies. Apart from this, you will also have to provide proof of address.

No need to check credit score

Gold loan is a type of secured loan. Therefore your credit score does not matter in this. You get this loan easily and at a lower interest rate than a personal loan.