Gold Loan Before Budget: What Low-Income Borrowers Need to Know

• NBFCs report that gold loans are predominantly availed by low-income individuals.
• The majority of gold loans disbursed are for amounts less than 50,000 rupees.
• Banks benefit from Priority Sector Lending (PSL) status for these gold loans.
• Gold loan NBFCs, however, do not receive the same PSL benefits as banks.

Why It Matters: Low-income individuals frequently use gold loans, but NBFCs lack PSL benefits unlike banks.