The non-banking finance company (NBFC) Capri Global Capital Ltd. entered the gold lending business, branded Capri Loans
The company announced the opening of 108 branches in Rajasthan, Madhya Pradesh, Delhi-NCR, Haryana, Gujarat, Uttar Pradesh and Maharashtra. By the end of this quarter, the branch network will grow to 200 covering northern and western India, a company executive said.
These branches would offer gold loans for terms of 6 to 12 months with several repayment options. Capri Loans would provide loans of up to 75% of total pledged gold at competitive interest rates. Additionally, the company said it would provide additional insurance equivalent to the promised value of the gold ornaments.
Ravish Gupta, Business Head – Gold Loan, Capri Global Capital Ltd. said, “We are seeing increased demand for gold loans from Tier III, IV and V cities in the north and west of the country. Our goal is to build a gold loan portfolio of ₹8,000 crore and expand our network to 1,500 branches over the next five years”.
“Our competitive interest rate and transparent payment options will protect our customers from a higher cumulative interest rate. We are confident that our gold loan product will help us penetrate the northern and western regions and achieve our business target for the next five years,” he added.