Gold loan outstanding jumps 77% in 12 months up to July, rings alarm bell

Overall, retail or personal increased by about 11.2 per cent in the reported period. 

New Delhi: Retail gold loans outstanding jumped by 77.4 per cent to Rs 62,412 crore in 12 months up to July from Rs 35,189 in the previous corresponding 12 month period, signalling signs of financial distress in Indian households.   Overall, retail or personal increased by about 11.2 per cent in the said period. Notably, retail loans account for 26 26 per cent of total bank credit, according to a report by Indian Express.   India’s largest public lender, the State Bank of India, noted that the gold loans jumped by 338.76 per cent as of June 2021, with the total gold loan book standing at about Rs 21,293 crore.