A Comparative study of the various offerings provided by Financial institutions with respect to Gold Loans

Dhanya J S



Loans against Gold are traditionally considered taboo in households. Even when gold is pledged, it is still done as the last resort. Gold jewellery at home is considered on par with “Goddess Lakshmi” and hence hedging gold for a loan is considered inappropriate. This perception towards Gold loan has gradually undergone a change and individuals have started seeing the value of loan against gold as against availing a personal loan. The Gold loan market that was highly fragmented and dominated by local jewelers has gradually seen the entry and growth of NBFCs and banks; a clear indication of the viability of gold loans as an important loan product.

The gold loans market has recently seen a lot of action from both the consumers and the industry. With gold rate spiraling upwards, borrowers are able to get decent valuation for their gold; and the process of getting such a secured loan is also largely hassle free. The southern Indian markets have been particularly lucrative for the gold loan business;  85% - 90% of the gold loan market is in the States of Andhra Pradesh, Tamil Nadu and Kerala.

According to an estimation of the ICRA Management Consulting Services (IMACS), the organized gold loan-market in India stands at $8 billion and is growing at a compound annual growth rate (CAGR) of 40% since 2002. There is still ample potential in this segment and with more banks /NBFCs coming into this business, there could be considerable growth in terms of volume.





• Philip Kotler, Kevin Lane Keller, Abraham Koshy and Mithileshwar Jha. Marketing Management. United States: Pearson Publications,13th Edition.

• Dr. C.R. Kothari , Research Methodology. New Delhi: Wishva Prakashan Publications, 2001.

• Ahluwalia, I.J., Mohan, R. and Goswami, O. (1996). Policy reforms in India. Paris: UNESCO.

• Bajpai, S. and Unnikrishnan, N. (1996). The impact of television advertising on children. New Delhi: Sage.

• Khan, M.M.A. (1995, May 15). Enormity tempts marketers to make a passage to India. Advertising Age, p.12

• . Kilburn, D. (2000, 13th November). Marketing to reach rural India. Marketing Magazine, 105 (45), p.6.

• Kripalani, M. (2002, June10). Battling for pennies in India’s villages: Coke and Pepsi struggle to control market.

• Kripalani, M. (2003, February 10). Finally Coke gets it right. Businessweek, (3819), p.18.

• Khairullah, H. Z. and Khairullah, Z.Y. (2002). Dominant cultural values: content analysis of the U.S. and Indian print advertisements. Journal of Global Marketing, 16, (1/2), pp.47-70.


• www.google.com

• www.lowelintas.com

• www.muthootfincorp.com

پاراگلایدر Full Text: PDF


  • There are currently no refbacks.

Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.

ISSN : 2251-1555