Capri Global Capital to enter the gold loan business
The company will launch this business in the 1st half of the FY2022-23 & aims to build a gold loan book size of Rs 8,000 cr and expand its network with 1500 branches in 5 years.
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Hyderabad Capri Global Capital Ltd. (CGCL), a non-deposit-taking and systemically important NBFC, plans to enter the gold loan business. The company will launch this business in the first half of the financial year 2022-23. The company aims to build a gold loan book size of Rs 8,000 crore and expand its network with 1,500 branches in the next five years.
"We see immense scope in the gold loan market as financial distress due to the pandemic has increased demand for credit across low-to-medium income households. Due to the emotional value associated with gold, people pledge their gold as collateral and secure a short-term loan rather than selling it. The trend is very evident in the rural and semi-urban areas. CGCL with increased rural presence, is well poised to serve customers and further financial inclusion within the communities," Rajesh Sharma, Managing Director, Capri Global Capital Ltd. Said.
The company has appointed Ravish Gupta to head the business vertical. He is entrusted with the responsibility of driving the new gold loan business across the country. Prior to joining CGCL, he headed the north zone of the gold loan business for India Infoline Finance Ltd.
CGCL operates in two major verticals – MSME loans and affordable housing finance – through its strong network of 110 branches spread across 11 States and Union Territories. Capri Global Housing Finance Limited, a subsidiary of CGCL, operates in the affordable housing finance space providing home loans to Lower and Middle-Income families and is a key contributor to the PM's vision of "Housing for All" by 2022.
