For centuries, Indians have cherished gold for its beauty and its inherent value. This has given rise to the ever-popular gold loan, a financial instrument that has helped countless families weather economic storms. In the wake of the challenges posed by the COVID-19 pandemic, the significance of gold loans has further increased.
Data from the RBI shows that gold loan disbursals nearly doubled from ₹46,791 Crores to ₹80,617 Crores between September 2020 and September 2022. Furthermore, India's gold holdings stand at over 14% of the world's gold (27,000 tonnes), of which a significant portion (5,300 tonnes) is pledged for loans.
