Gold Loans as an Alternative Source of Credit for Low-income Households

Misha Sharma


The demand for gold in India has always been high, thus creating a huge potential for growth in the gold loan market. In recent decades, the market has emerged as a reliable sources of credit for low-income households. This report explores the various facets of the Indian gold loan sector. It looks at factors associated with participation in the formal and informal gold loan market, distinguishing features of the gold loan product, uses of gold loans in the absence of a borrowing constraint and reasons for high demand for gold.



Thematic Area

Financial Well-being and Social Protection