About Gold Loan
Gold loan is basically sanctioned by accepting the gold ornaments of a customer as a pledge. Gold loans, like credit card borrowings or personal loans, are often used for short term for household requirements. By pledging the gold ornaments, coins, biscuits, bars etc. the lender provides you with the liquidity at a predetermined rate of interest. As the attitude and perception of people are changing now, therefore there is rising in gold loan takers, as also there is geographical demand to avail it. But the market is hampering to some extent as there are several strict regulations of government regarding it, and also the saving pattern of the consumers are changing
Attributes | Details |
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Study Period | 2018-2030 |
Base Year | 2023 |
Unit | Value (USD Million) |
Competition among existing players is due to the Gold Loan market share occupied by leading players. The industry leader is engaged in offering innovative and superior quality products to cater to the ever-growing demand for Gold Loan market. The companies are implementing strategic activities such as acquisitions and mergers along with collaboration with companies in other industries to aid them in improving sustenance and maintaining their competitive advantage Established and emerging Players should take a closer view at their existing organizations and reinvent traditional business and operating models to adapt to the future.
Barrick Gold (Canada), AngloGold Ashanti (South Africa), Freeport-McMoRan (United States), Newmont Mining (United States), Randgold Resources (Jersey), SBI Gold loan (India), Muthoot group (India) and Manappuram Finance Limited (India) are some of the key players that are part of study coverage.
Segmentation Overview
AMA Research has segmented the market of Global Gold Loan market by Type (Gold Bullion and Gold Ornaments), Application (Investment and Collecting) and Region.
On the basis of geography, the market of Gold Loan has been segmented into South America (Brazil, Argentina, Rest of South America), Asia Pacific (China, Japan, India, South Korea, Taiwan, Australia, Rest of Asia-Pacific), Europe (Germany, France, Italy, United Kingdom, Netherlands, Rest of Europe), MEA (Middle East, Africa), North America (United States, Canada, Mexico). If we see Market by Nature, the sub-segment i.e. Pure Gold will boost the Gold Loan market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth.
Influencing Trend:
Availability of gold loan in extremely flexible terms and lower default rates in the supply side
Market Growth Drivers:
Exclusion from mainstream personal and retail loans by scheduled banks, Changing attitudes towards applying for gold loans and Geographical demands
Challenges:
Low future outlook for gold prices in the next upcoming years and Evolving saving pattern of consumers
Restraints:
Increasing government regulations and Data security related to privacy
Opportunities:
Large volume of existing gold held by rural communities can increase the chances of rendering the gold loan which can increase the market growth
Market Leaders and their expansionary development strategies
In August 2023, Bank of Baroda (Bank), one of India’s leading public sector banks, announced the launch of 251 new Gold Loan Shoppes across the country. The Bank’s Gold Loan Shoppe is a dedicated, private enclosure within a bank branch to exclusively service gold loan customers. The Gold Loan, Shoppe provides customers quick service in a personalised manner, as well as ensures privacy for customers. and With this launch, the Bank now has a total of 1,238 Gold Loans Shoppes across the country.
In November 2023, Punjab National Bank (PNB) celebrated a one-day Digital Mahotsav at its Head Office in Dwarka, New Delhi, where a plethora of products and services were unveiled, the most notable being the Digital Gold Loan.
Key Target Audience
Gold Loan providers, Channel partners, Industry association, Downstream vendors, Government and investment communities, Research organisation and associations and End users
About Approach
To evaluate and validate the market size various sources including primary and secondary analysis is utilized. AMA Research follows regulatory standards such as NAICS/SIC/ICB/TRCB, to have a better understanding of the market. The market study is conducted on basis of more than 200 companies dealing in the market regional as well as global areas with the purpose to understand the companies positioning regarding the market value, volume, and their market share for regional as well as global.
Further to bring relevance specific to any niche market we set and apply a number of criteria like Geographic Footprints, Regional Segments of Revenue, Operational Centres, etc. The next step is to finalize a team (In-House + Data Agencies) who then starts collecting C & D level executives and profiles, Industry experts, Opinion leaders, etc., and work towards appointment generation.
The primary research is performed by taking the interviews of executives of various companies dealing in the market as well as using the survey reports, research institute, and latest research reports. Meanwhile, the analyst team keeps preparing a set of questionnaires, and after getting the appointee list; the target audience is then tapped and segregated with various mediums and channels that are feasible for making connections that including email communication, telephonic, skype, LinkedIn Group & InMail, Community Forums, Community Forums, open Survey, SurveyMonkey, etc.