Gold loans rose 40.9% in August

The growth in loans advanced by banks against gold doubled to 41% in August, bucking relatively subdued trends in personal and vehicle loans, as per the latest bank credit data from the Reserve Bank of India (RBI).

“The recent surge in global gold prices will keep the demand buoyant in the coming months,” said Jahnavi Prabhakar, economist at the Bank of Baroda. While higher prices have increased the attractiveness of gold as collateral, RBI’s recent strictures on lenders for inconsistencies and push for stronger controls in the segment could throttle growth to a certain extent, CareEdge Ratings said.

Published - October 07, 2024 08:47 pm IST