From last resort to retail giant: how the gold loan surge reflects a credit shift
While portfolio-level asset quality remains strong, delinquency rates vary significantly across borrower segments. According to TransUnion CIBIL, borrowers whose gold loan exposure exceeds ₹2.5 lakh
While portfolio-level asset quality remains strong, delinquency rates vary significantly across borrower segments. According to TransUnion CIBIL, borrowers whose gold loan exposure exceeds ₹2.5 lakh after origination have delinquency rates more than twice those of borrowers with smaller balances. Delinquencies are also higher among customers whose debt is concentrated in gold loans and among those with recent repayment issues. The report found that borrowers with the highest levels of gold loan dependence were more likely to experience a deterioration in credit access over time.
The BriefWire