Gold loan business has become one of the hot businesses in India. Many companies have this business. Excellent growth rate is disclosed by the gold loan companies include Manappuram and Muthoot capital etc. Indian houses hold almost 20000tn gold. It is the double of the US central bank gold reserve. The main attraction is that there is no delay in the loan for gold. The institutions are ready to give loans because of the increasing gold prices.
High interest rates were realized by the regional financial institutions earlier. Since our commercial banks were very tight to give other loans, gold loan was the only resort for the common people. The number of people were very high who took loan with high interest could not repay and lose their gold. The poor people were cruelly exploited earlier. The situation has changed now and the people can get fast loan for gold now. It is mainly because the fresh high price creation of gold.
