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Gold Loans

Making Gold work for you!

Agenda:

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• Introduction• Features• Benefits• Gold Loans in India• Conclusion

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Introduction

•Pledging of gold ornaments, coins, etc.•The lender provides liquidity for that.•Predetermined rate of interest.

•Gold Loan is a hassle free finance option.

Customer’s Gold

Customer CompanyTemporary Transfer

Company’s Fund

Features:

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•Secured•Multipurpose•Low Disbursal time• High Loan to Value (LTV) Ratio•Shorter Loan Tenure •Varied Interest Rates•Multiple Repayment Options

Benefits:

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•You need not have to sell your gold for contingencies.•No charges for pre closing the loans.•Individuals of low income group or from rural/lower economic strata can also avail.•The interest rate is not fixed and depends upon the amount of gold pledged.•With the RBI's latest norms, the gold loan extended would be as low as 60%.•Quick & easy evaluation of property (gold).•whole disbursal process is quicker than personal loans.

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Gold Loans In India

Gold Demand & Loans in India:

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•The demand for gold in India is:•South India states accounting for around 40 % of the annual demand,•Followed by the West (25 %),•North (20-25 %) and •East (10-15%).•Rural India accounts for about 65 per cent of total gold stock in the country•Banks view gold loans for agriculture as a safer means to meet their priority sector lending targets •Commercial banks, cooperative banks and gold loan NBFCs Major players.•Thousand of branches spread all over the India.

Gold’s Demand Pattern in India

486 462 471 467

367

537

792707 716 679

743

871

975

1079Demand (Tones)

Ankush KumarSource: World Gold Council and Estimations from DGCI&S Data

Year 1999 Year 2012*

Gold Loans in India:

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Annual Growth Rate of Gold Loans:

2008-09

2009-10

2010-11

2011-12

0 10 20 30 40 50 60 70 80 90

52.5

62.6

67.2

78.3

Total Gold Loans (Per cent)

Source: RBI Report- Jan’13

Average Annual Growth (2008-2012) 65.5%

Conclusion:

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700 750 800 850 900 950 1000 1050 11000

102030405060708090

Demand of Gold (Tones)

Gro

wth

% o

f Gol

d Lo

ans

•Gold Loans Services are the Win-Win situation for both the parties.•Demand of Gold increasing rapidly in India & showing the strong co relation between the growth of Gold Loans & demand of gold in last 4 years

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Thank You