NBFCs and Gold Loans in India
Muthoot, Manappuram and the Kerala Connection
Two Kerala-based companies dominate gold-loan NBFCs, alongside banks that also lend against gold.
A few names lead the gold loan business.
Muthoot Finance
From Kerala, it is India’s largest gold loan NBFC, with thousands of branches.
Manappuram Finance
Based in Thrissur, it is another major player with a wide network.
Banks
Banks also offer gold loans, often at lower interest rates.
Why branches matter
Because customers hand over physical gold, trust and nearby branches are crucial.
A branch nearby
A customer prefers a branch on her street to a distant bank, even if the rate is a little higher.
Assuming banks always offer the cheapest gold loans
Convenience can outweigh rates.
Key takeaways
- Muthoot and Manappuram lead.
- Both are from Kerala.
- Banks also lend against gold.
- Branches build trust.
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