New Delhi, Jan 22 || Assets under management (AUM) of non-banking financial companies (NBFCs) specialising in gold loans is set to register a compound annual growth rate (CAGR) of 40 per cent between this fiscal and next, surpassing Rs 4 lakh crore by March 2027, a Crisil Ratings report showed on Thursday.
According to the report, the surge will be driven by elevated gold prices, a shift towards secured credit and an evolved regulatory environment, outpacing the CAGR of 27 per cent clocked between fiscals 2023 and 2025.
Large gold-loan NBFCs, having an established brand image, are scaling up their portfolio across existing branches. Meanwhile, their mid-sized counterparts are adopting a dual strategy of expanding their branch network as well as operating as originating partners for large NBFCs and banks, said Aparna Kirubakaran, Director, Crisil Ratings.
These efforts, combined with strong demand amid elevated gold prices, have boosted business per branch for gold-loan focused NBFCs by 40 per cent over the last two fiscals.