Page 24 - Bullion World Volume 03 Issue 07 July 2022

Bullion World | Volume 5 | Issue 09 | September 2025

Some significant steps that can be undertaken to develop the
organised gold loan market in India include:

1. Allowing NBFCs to expand – NBFCs with their 3. Build Financial Awareness – Unorganised
ability to reach the masses should be provided lenders are not part of the regulated environment
with opportunities to expand their branches/ and may not follow the customer fair practices.
services especially those who have contributed Moreover, the customers dependent on the
significantly to the growth of the gold loan industry unorgnised lenders will not be a part of the
with rich traditional heritage. Their ability to tailor formal banking system either. It is important that
products to specific customer needs is a key there is financial awareness across regions, and
strength, enabling them to effectively cater to the significance of regulated entities need to be
diverse customer requirements.Currently, gold highlighted. With more than 60% of the gold loan
loan NBFCs require to follow separate branch market unorganised today, there is huge scope for
licensing guidelines when expanding beyond building awareness, and curating the right tools
1000 branches which can slow down speed of and methodologies to empower the common man
expansion and limit their ability to meet growing on financial aspects.
customer demands. Allowing NBFCs to expand
closer to the customer would be of great impetus 4. Trust is paramount to gold loan business –
for industry and reaching to families for their credit Trust is the cornerstone of the gold loan industry,
need. Muthoot FinCorp, the flagship Company where customers entrust their valuable jewellery to
of 138-year-old business conglomerate Muthoot lenders in times of need. As a result, NBFCs have
Pappachan Group has received 250 licenses a fiduciary duty to uphold the highest standards
in the recent period, enabling us to expand our of integrity, transparency, and security. This
services to the hinterlands of the country. Our includes implementing robust security measures
focus is to reach the untapped, provide them with to safeguard pledged jewellery, maintaining
the financial support and ensure financial inclusion transparent business practices, and fostering a
while contributing to nation building. culture of trust and reliability. By doing so, NBFCs
can build and maintain customer confidence,
2. NBFCs must adopt a phygital model to serve which is essential for the long-term success of the
the customers – physical branches as well as business.
digital services. Customers today need immediate
resolutions to their requirements. Digital presence
is a significant aspect for an NBFC today to ensure As we strive towards a Viksit Bharat
customer satisfaction and enhance customer by 2047, every individual plays
experience. But at the same time, it is important a vital role in driving economic
to have your branches close to your customers growth. At Muthoot FinCorp, our
especially for the gold loan NBFCs with pledge 27,000+ strong Muthootian family is
being a physical process and customers need propelling this growth momentum.
to know and see in person where their gold is With a diverse portfolio of over 36
kept safely. At Muthoot FinCorp, we serve India’s products along with our flagship
common man with a Purpose to transform their
lives by improving their financial well-being. We gold loan service, we cater to the
have both phygital and digital presence with our varied lifecycle needs of India's
3700+ branches across the country and Muthoot common man, empowering them to
FinCorp ONE mobile app ensuring timely seamless achieve their goals
services to our customers.

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