SMC Global Securities Limited

First, what’s a gold loan? Simple: You give your gold ornaments to a lender They give you money instantly - based on the value of your gold No credit history? No problem You walk in with gold and walk out with cash

And borrowers still prefer loans with less paperwork and more flexibility And here’s how gold loan interest rates stack up today (selected lenders): • Muthoot Finance – 10% to 11% • Manappuram Finance – 21% to 26% • SBI – 10% to 11% • HDFC Bank – 9.3% to 17.8%

There’s a deeper meaning - Gold prices are soaring That means your same old gold necklace now gets you a bigger loan If gold is ₹50K/10g vs ₹60K/10g - you get more money, same asset This alone has made many borrowers step up their gold loan usage

Urban vs Rural - It’s everywhere This isn’t just a rural trend Fintechs in cities are making gold loans even easier - doorstep collection, digital KYC, same-day disbursal Meanwhile, NBFCs and banks are active in rural belts, where gold is the go-to security

Still, gold loans hit the sweet spot: fast + cheap + safe So, what’s next? Will this demand keep rising? Short answer: Maybe not at the same speed, but the demand isn’t going away India is still underbanked Gold remains a trusted asset

And lenders love this too Rising gold prices = higher Loan-To-Value (LTV) = bigger disbursal amounts Some lenders are even offering top-up loans on your old gold loan Think of it like an instant credit upgrade… without asking for more documents

If you found this thread useful, share it with someone who’s curious about the lending landscape in India 🇮🇳 And follow for more simple explainers

TL;DR: • Personal loans are harder to get • Gold loans are easier, quicker, and now more rewarding • Both borrowers and lenders are leaning into them • Expect gold loans to become a core part of India’s credit ecosystem

Let’s talk interest rates for a sec Gold loans usually have lower rates than unsecured personal loans (because there’s collateral) But they are costlier than home loans (because storage, insurance, and handling costs are high)