Economy · India
Gold loan sector shows signs of stress, lenders report
Lenders have observed an increase in gold loans being taken by customers who are already more than 90 days overdue on existing loans, indicating potential stress in the sector. Jairam Sridharan, MD & CEO of Piramal Finance, stated that between 15% and 23% of the industry's gross gold loan disbursements in the past year went to such customers. Piramal Finance's policy prohibits lending to borrowers who are already overdue. Data from the Reserve Bank of India (RBI) also suggests a rise in gold loans.
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- Centre (2): Business Standard, The Times of India