{"id":125798,"date":"2024-08-16T20:00:05","date_gmt":"2024-08-16T14:30:05","guid":{"rendered":"https:\/\/assamtimespost.in\/?p=125798"},"modified":"2024-08-16T20:00:05","modified_gmt":"2024-08-16T14:30:05","slug":"unstoppable-surge-gold-loan-demand-strong-despite-cash-disbursement-curbs-crisil-reports","status":"publish","type":"post","link":"https:\/\/assamtimespost.in\/?p=125798","title":{"rendered":"Unstoppable Surge: Gold Loan Demand Strong Despite Cash Disbursement Curbs, CRISIL Reports"},"content":{"rendered":"

\"\"<\/p>\n

G<\/span>old loan non-banking financial companies (NBFCs) experienced significant growth in June 2024, even as the Reserve Bank of India<\/a> (RBI) imposed cash disbursement restrictions, a CRISIL report reveals. This growth is buoyed by favorable gold prices and strong risk management practices.<\/span><\/h4>\n
\"Gold<\/a>
Gold Loan Demand Strong Despite Cash Disbursement Curbs, CRISIL Reports<\/figcaption><\/figure>\n

Ajit Velonie, Senior Director at CRISIL Ratings, highlighted an approximate 12% rise in June\u2019s disbursements compared to the previous quarter\u2019s average, with a notable 23% growth excluding one large player. These NBFCs effectively navigated the RBI\u2019s May 2024 directive, which mandated non-cash disbursements for loans exceeding Rs 20,000.<\/span><\/p>\n

The transition to digital channels was smooth, with only a minor increase in turnaround time, helping NBFCs maintain competitiveness over banks. However, CRISIL cautioned that a prolonged decline in gold prices could impact the sector. NBFCs must closely monitor loan-to-value (LTV) ratios and conduct timely auctions to mitigate risks.<\/span><\/p>\n

Despite the drop in gold prices following a reduction in customs duty in the Union Budget, the impact on gold-loan NBFCs has been minimal. According to CRISIL\u2019s director Malvika Bhotika, this resilience is due to a low LTV range of 60-65% as of June 30, 2024, and a focus on periodic interest collection.<\/span><\/p>\n

These measures indicate that gold loan NBFCs are well-positioned to manage gold price volatility and continue their robust performance despite regulatory changes.<\/span><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Gold loan non-banking financial companies (NBFCs) experienced significant growth in June 2024, even as the Reserve Bank of India (RBI) imposed cash disbursement restrictions, a CRISIL report reveals. This growth is buoyed by favorable gold prices and strong risk management practices. Ajit Velonie, Senior Director at CRISIL Ratings, highlighted an approximate 12% rise in June\u2019s […]<\/p>\n","protected":false},"author":1,"featured_media":125799,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jnews-multi-image_gallery":[],"jnews_single_post":{"source_name":"","source_url":"","via_name":"","via_url":"","override_template":"0","override":[{"template":"1","single_blog_custom":"","parallax":"1","fullscreen":"1","layout":"right-sidebar","sidebar":"default-sidebar","second_sidebar":"default-sidebar","sticky_sidebar":"1","share_position":"bottom","share_float_style":"share-monocrhome","show_share_counter":"1","show_view_counter":"1","show_featured":"1","show_post_meta":"1","show_post_author":"1","show_post_author_image":"1","show_post_date":"1","post_date_format":"default","post_date_format_custom":"Y\/m\/d","show_post_category":"0","show_post_reading_time":"1","post_reading_time_wpm":"300","post_calculate_word_method":"str_word_count","show_zoom_button":"1","zoom_button_out_step":"2","zoom_button_in_step":"3","show_post_tag":"1","show_prev_next_post":"0","show_popup_post":"1","number_popup_post":"2","show_author_box":"0","show_post_related":"1","show_inline_post_related":"1"}],"override_image_size":"0","image_override":[{"single_post_thumbnail_size":"crop-715","single_post_gallery_size":"crop-500"}],"trending_post":"0","trending_post_position":"meta","trending_post_label":"Trending","sponsored_post":"0","sponsored_post_label":"Sponsored by","sponsored_post_name":"","sponsored_post_url":"","sponsored_post_logo_enable":"0","sponsored_post_logo":"","sponsored_post_desc":"","disable_ad":"0"},"jnews_primary_category":{"id":"","hide":""},"jnews_social_meta":[],"jnews_override_counter":{"override_view_counter":"0","view_counter_number":"0","override_share_counter":"0","share_counter_number":"0","override_like_counter":"0","like_counter_number":"0","override_dislike_counter":"0","dislike_counter_number":"0"},"footnotes":""},"categories":[205,201],"tags":[3984,28821,26311,28824,28847,28818,28834,28814,28833,28844,28820,28815,28842,28830,28816,28808,28850,28836,28812,28848,28822,28825,28838,28829,28846,28839,28845,28827,28843,28831,28841,28810,28809,28828,28849,28823,28835,10357,28826,28851,28813,28852,28837,28819,28811,28817,28840,28832,7351],"class_list":["post-125798","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-economy","tag-3984","tag-12-rise","tag-26311","tag-23-growth","tag-60-65","tag-ajit-velonie","tag-banks","tag-cash-disbursement-restrictions","tag-competitiveness","tag-crisil-director","tag-crisil-ratings","tag-crisil-report","tag-customs-duty-reduction","tag-digital-channels","tag-favorable-gold-prices","tag-gold-loan","tag-gold-price-volatility","tag-gold-prices","tag-june-2024","tag-june-30","tag-june-disbursements","tag-large-player","tag-loan-to-value-ratios","tag-loans-exceeding-rs-20","tag-low-ltv-range","tag-ltv-ratios","tag-malvika-bhotika","tag-may-2024","tag-minimal-impact","tag-minor-increase","tag-mitigate-risks","tag-nbfcs","tag-non-banking-financial-companies","tag-non-cash-disbursements","tag-periodic-interest-collection","tag-previous-quarter-average","tag-prolonged-decline","tag-rbi","tag-rbi-directive","tag-regulatory-changes","tag-reserve-bank-of-india","tag-robust-performance","tag-sector-impact","tag-senior-director","tag-significant-growth","tag-strong-risk-management-practices","tag-timely-auctions","tag-turnaround-time","tag-union-budget"],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/assamtimespost.in\/index.php?rest_route=\/wp\/v2\/posts\/125798","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/assamtimespost.in\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/assamtimespost.in\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/assamtimespost.in\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/assamtimespost.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=125798"}],"version-history":[{"count":0,"href":"https:\/\/assamtimespost.in\/index.php?rest_route=\/wp\/v2\/posts\/125798\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/assamtimespost.in\/index.php?rest_route=\/wp\/v2\/media\/125799"}],"wp:attachment":[{"href":"https:\/\/assamtimespost.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=125798"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/assamtimespost.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=125798"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/assamtimespost.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=125798"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}