Gold loan book outlook in 2022: There is huge scope for gold loan lending for NBFCs and banks, says Muthoot Finance MD

New Delhi: Gold, always considered a safe haven for investment in uncertain times, is likely to be the top haven for investors amid the ongoing pandemic.

George Alexander Muthoot, MD, Muthoot Finance in an exclusive conversation with Reema Sharma of Zee Media Said, as the nascent economic recovery is slowly taking root, 2022 will be an important year to watch amidst the challenges posed by the new COVID variants.

While the spread of the Coronavirus pandemic and Omicron Edition is again troubling investors, the turnaround in the Indian economy is going to boost sentiment.

George Alexander Muthoot said, “As the economy returns to normalcy, the demand for credit from the MSME sector has increased and we are optimistic of achieving 15% growth guidance for FY22.”

He further added that gold loans emerged as the easiest and quickest source of credit for the business community during the pandemic, with people pledging their jewelry to secure short-term loans.

“India is the largest consumer of gold and we believe that there is a lot of scope for NBFCs and banks to offer gold loans. While gold loan opportunities will only get wider in the years to come, furthermore we aim to be our one-stop point by offering various financial services to our consumers, such as Gold Loan, Personal Loan, Home Loan, Money Transfer, Insurance, Consumer durables/2W/4W loans and gold coins. We have launched several digital initiatives like Mobile App, POS, Online Gold Loan, Gold Loan through Prepaid Card and will continue to focus on digital front even in 2022.

He further added that the gold financing sector is also excited about the emergence of trends like gold digitization, digital gold lending, gold secured credit cards and gold wallets in the coming year.

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