DBS Bank India is looking to more than double its Rs 6,300 crores gold loan book within the the next five years, the company said while launching new features to its credit offerings in return of the precious metal.
“We are witnessing exciting trends in the gold loan sector in India and have evolved our offering to cater to a wider audience that could be younger, more urban or more digitally savvy and rightly expects more from their lender,” said Sajish Pillai, MD & Head – Assets and Strategic Alliances, Consumer Banking Group, DBS Bank India.
“With a compelling product proposition and rising demand in the market, we are well-positioned to grow this offering significantly in the next few years,” he added.
The bank said the loan quantum in India ranges from a minimum of Rs 25,001 to a maximum of Rs 50 lakhs per customer.
DBS Bank said it has witnessed encouraging growth in its gold loans business, driven by its expanded network of about 530 branches across 350 locations, and heightened demand from the agrarian community, primarily in South India.
The gold loan book for DBS Bank India has increased 26% in 2023 so far from year earlier, leveraging on the bank’s ‘phygital’ strategy.
The bank also said it has introduced a balance transfer feature that will borrowers to transfer their existing outstanding loan balance from other financial institutions to DBS Bank India. This is expected to result in savings on interest rates and processing fees.
