Gold Loan Sector After RBI’s Draft Norms: Fintech Push
Why in the news
After RBI released draft gold loan rules on 9 April 2025, fintech firms and new lenders are rushing to enter this segment, expecting more clarity and stability.
Key facts
- Draft guidelines: issued 9 April 2025 to align the regulatory framework for gold loans.
- Co-lending: fintechs used to unsecured lending now partner with banks and NBFCs for secured gold loans, expanding credit while sharing risk.
- Household gold: about 25,000 tonnes, making loans against jewellery a popular safety net.
- Informal share: an estimated 65% of the market is served informally, so formalisation has room to grow.
| Player | Move |
|---|---|
| L&T Finance, Poonawala Fincorp | Entering the gold loan market |
| Rupeek, Oro Money, Indiagold, Manipal Fintech | Already active; Manipal appointed Puja Abhishek Singh (ex-Paytm) as CEO |
| Moneyview | Valued at $1 billion in 2024; planning entry |
| PhonePe | Acquiring gold loan customers for Muthoot Finance and Muthoot Fincorp via its app |
| BankBazaar | Sources gold loan customers for Muthoot Fincorp, which put in ₹15 crore for a stake |
Significance
- Clearer norms may attract investment and partnerships.
- Co-lending widens credit access and spreads risk.
- Formalising the under-served segment could widen access.
Exam angle
- Regulator behind the draft: Reserve Bank of India.
- Concept: co-lending between fintechs and banks/NBFCs.
- Number to recall: 25,000 tonnes household gold; 65% informal.