Assets of NBFCs expected to grow at 15-18% in current fiscal

As economic activity revives after the gradual lifting of the lockdown, the demand for gold loans is expected to rise. The gold loan assets of finance companies in country are estimated to grow by 15-18 per cent in current financial year, according to CRISIL.

The demand, especially from individuals for meeting urgent personal requirements and from micro enterprises for working capital to restart businesses, would propel gold loan growth.

Gold loans would be preferred as non-banking financial companies (NBFCs) and banks have tightened their underwriting norms for other loans. Also, higher average gold prices mean gold-loan assets under management of NBFCs could grow 15-18% this fiscal.