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The gold loan market will double in five years

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NEW DELHI: Despite an expected slowdown in growth due to stringent regulations, India’s organized gold loan market is set to double over the next five years to Rs. 14.19 lakh crore is expected. This possibility has been expressed in a report. According to this report published on the gold loan market of the country, the organized gold loan market has seen a significant growth in the financial year 2023-24 and it has reached a value of 7.1 lakh crore rupees. According to this, at an annual growth rate of 14.85 percent over five years, the loan against gold market is likely to reach Rs 14.19 lakh crore by FY 2028-29. The report said that Indian households own an estimated 25,000 tonnes of gold. According to the report, the current gold holdings of Indian households are around Rs 126 lakh crore. The loan against gold market will witness moderate growth over the next two years as lenders who provide loans against gold face scrutiny from regulatory authorities on procedures related to loan-to-value maintenance and auctions. . Additionally, the Reserve Bank’s advisory to non-banking financial companies on cash disbursements, which limits the cash disbursement amount to Rs 20,000, may force consumers to rely on the unorganized sector.

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