Non-bank financial firm (NBFC) Capri Global Capital Ltd (CGCL) said on Monday that it plans to enter the gold lending business in the first half of the 2022-23 financial year.
The lender aims to build a portfolio of gold loans to the size of Rs 8,000 crore and expand its network with 1,500 branches over the next five years, according to a statement.
Currently, it operates in two major verticals, MSME Guaranteed Loans and Affordable Housing Finance. It also provides financing for the construction of affordable housing projects and distributes car loan products from certain banks.
“We are seeing immense reach in the gold loan market as financial hardship due to the pandemic has increased demand for credit in low to middle income households.
“Because of the emotional value associated with gold, people are pledging their gold as collateral and getting a short-term loan rather than selling it,” said CGCL chief executive Rajesh Sharma.
He said the trend is evident in rural and semi-urban geographies of the country.
The company has appointed Ravish Gupta as head of the business vertical.
As of December 31, 2021, the consolidated net profit of the company stood at Rs 64.9 crore with assets under management (AUM) at Rs 5,769.3 crore.
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