Fintech firms are jumping on to the gold loan bandwagon, and traditional gold loan giants such as Muthoot Finance Ltd have seen their portfolios expand since the covid pandemic struck last year. Both the quickening growth in gold loans and the auctions of gold for recovery are symptoms of an increase in household distress. “There is a new segment availing of gold loans, which is what we call the middle class," said C.V.R. Gold loan lenders have indicated that from here on, stress may reduce. To that extent, the rise in household distress attributed to being behind the spike in gold loan delinquencies may be slightly overstated.

Source: Mint August 15, 2021 18:46 UTC