Low-Risk Gold Loan Customers Show Repeat Borrowing Trends

The Hindu - Business · business

TransUnion CIBIL data reveals that over half of low-risk gold loan borrowers took out a new loan within 12 months, even as some segments face repayment stress. Among borrowers with high CIBIL scores taking loans of ₹2.5 lakh or less, 57% repeated their borrowing. Lenders are advised to assess borrowers' overall financial obligations beyond just the gold value. Despite overall portfolio quality improving, 7% of active borrowers with healthy profiles experienced repayment delays. India's outstanding gold loan balances have nearly tripled in three years, reaching ₹22.5 lakh crore.