How a price surge fuelled gold loans, sparked talk of behavioural change
Gold loans surged 70% year-on-year as of May, driven by rising gold prices, according to Reserve Bank of India data. This growth indicates a shift in borrower behavior, with more creditworthy individuals using gold loans as a financial tool rather than a last resort, as participation from prime borrowers increased from 43% to 52%. Experts suggest that these loans are now being utilized for various purposes, including business growth, travel, and education.