Gold Loan Book Outlook in 2022: Enormous scope for gold loan lending for NBFCs and banks, says Muthoot Finance MD

George Alexander Muthoot, MD, Muthoot Finance said, as the nascent economic recovery slowly takes roots, 2022 will be an important year to watch out for amidst the challenges posed by new Covid variants.

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

George Alexander Muthoot, MD, Muthoot Finance in an exclusive chat with Reema Sharma of Zee Media said, as the nascent economic recovery slowly takes roots, 2022 will be an important year to watch out for amidst the challenges posed by new Covid variants.

Though the coronavirus pandemic, and the spread of the Omicron variant, has again come to haunt investors, the turnaround in Indian economy is going to keep buoyancy in sentiments.

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

He further added that gold loans emerged as the easiest and quick source of credit to the business community during the pandemic, people pledged their ornaments to secure short term loans.

“India is the largest consumers of gold and we believe there is enormous scope for gold loan lending for NBFCs and banks. While the opportunity for gold loans will only widen in the coming years, in addition to that we also aim to become a one-stop point for our consumers by offering them varied financial services be it gold loan, personal loan, home loan, money transfer, insurance, consumer durable/2W/4W loans and gold coins. We have introduced several digital initiatives like mobile app, POS, online gold loans, gold loan through prepaid cards for disbursement and repayment and 2022 will also see continued focus on the digital front,” said.

He further added that the Gold financing sector is also excited to witness emergence of trends like gold digitalisation, lending against digital gold, gold secured credit cards and gold wallets in the upcoming year.