Why The Gold Loan Business Attracts So Many Companies in India?
Summary Points: Piramal Finance’s entry into the gold loan business, as reported by Business Standard on March 28, 2025, highlights a growing trend among Indian banks and NBFCs. India’s massive gold reserves (25,000–30,000 tonnes) and cultural affinity for gold drive demand for quick, collateral-based loans. The business model offers low risk (default rates below 1%)…