Now Reading: Banks challenge NBFCs with faster gold loans, 30-minute approval
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Banks challenge NBFCs with faster gold loans, 30-minute approval
Banks challenge NBFCs with faster gold loans, 30-minute approval
Banks are ramping up gold loan operations to take on NBFCs, adding appraisers and digitising processes to cut approval times to 30 minutes or less. Indian Bank has designated 725 branches as…
The Story in Brief
Banks are ramping up gold loan operations to take on NBFCs, adding appraisers and digitising processes to cut approval times to 30 minutes or less. Indian Bank has designated 725 branches as Gold Shoppe outlets with dedicated staff and added 982 empanelled appraisers in six months, taking the total to 3,538. Union Bank deploys jewellers at high-volume branches, and Indian Overseas Bank has expanded its appraiser panel to 2,910 with digital valuation controls. According to RBI data, the gold loan segment expanded 105% year-on-year in May to about Rs 5.2 lakh crore, though banks report around 30% growth because they classify loans across agriculture, personal and MSME categories. CRIF estimates the total gold loan market at Rs 18.6 lakh crore by March 2026.
The Indian Opinion
The rush to copy NBFCs' 30-minute gold loan model misses the bigger picture. Banks tout appraiser hires and digital dashboards, yet they still classify these loans under agriculture and MSME heads to mask real growth. RBI data shows a 105% year-on-year jump, but banks claim only 30% growth. Why should a customer care about category splits? The only number that matters: can a bank match the NBFC’s speed without the hidden costs? Watch the next quarter’s market share data, not the press release.
Source: timesofindia.indiatimes.com
This story was synthesised by AI from the source linked above.
