The credit growth may be slowing as a result of sharp rise in interest rates and gold buying may have become a costly affair but with the increase in the worth of the gold, financing companies and banks are witnessing a significant rise in their portfolio of loan against gold.
One of the very famous financial companies has witnessed a five-fold increase in the retail loan portfolio from Rs 3,000 crore in March, 2009 to over Rs 15,000 crore in March.
Another one witnessed a 120 per cent rise in its gold loan disbursement in the quarter ended June from Rs 3,111 crore in the quarter ended June 2010 to Rs 6,858 in June 2011.
All financial companies are expecting a rise of 40-50 per cent in its retail loan portfolio. Market players say that there has been a change in the perception about gold loans and that has helped in the growth.
Sources reveal, As organised players have moved to rural areas and small towns there has been a substantial shift from the unorganised players to the organised players. Also, over the last few years, substantial advertising and entry of PSU banks and private banks in this businesses is giving it more and more respectability.
A rise in the interest rate of personal loans between two and three percentage points over the last one year as a result of rising interest rates and several banks reducing their exposure to personal loans is also working to the gold loans advantage.
“Over the last one year, if the gold prices have gone up by over 40 per cent, the value of loan per gram of gold has risen between 25-30%. Given the current rise in prices, gold loan companies are careful about the loans advanced.
Source: http://www.financialexpress.com/new
Follow us: www.facebook.com/karvywealth
One of the very famous financial companies has witnessed a five-fold increase in the retail loan portfolio from Rs 3,000 crore in March, 2009 to over Rs 15,000 crore in March.
Another one witnessed a 120 per cent rise in its gold loan disbursement in the quarter ended June from Rs 3,111 crore in the quarter ended June 2010 to Rs 6,858 in June 2011.
All financial companies are expecting a rise of 40-50 per cent in its retail loan portfolio. Market players say that there has been a change in the perception about gold loans and that has helped in the growth.
Sources reveal, As organised players have moved to rural areas and small towns there has been a substantial shift from the unorganised players to the organised players. Also, over the last few years, substantial advertising and entry of PSU banks and private banks in this businesses is giving it more and more respectability.
A rise in the interest rate of personal loans between two and three percentage points over the last one year as a result of rising interest rates and several banks reducing their exposure to personal loans is also working to the gold loans advantage.
“Over the last one year, if the gold prices have gone up by over 40 per cent, the value of loan per gram of gold has risen between 25-30%. Given the current rise in prices, gold loan companies are careful about the loans advanced.
Source: http://www.financialexpress.com/new
Follow us: www.facebook.com/karvywealth
No comments:
Post a Comment