Gold Loan NBFCs say, credit demand from agri sector sees 12% upside

20 Sep 2022 , 12:04 PM

Gold loan non-banking financial companies (NBFCs) have witnessed a 12% uptick in credit demand from the farming sector in the ongoing Kharif season.

Industry executives stated that Paddy, fish farming and shrimp farming were the major driving factors in credit demand.

In general, credit demand from farming is high. However, during this Kharif season, fish farming and shrimp farming have shown progressive demand.

As per Thomas George Muthoot, Director of Muthoot Fincorp, gold loan offtake from the farming community recorded a surge of nearly 10-12%.

According to Indel Money CEO Umesh Mohanan, the economic recovery and the potential of an above-average rainfall have increased the likelihood of a prosperous Kharif season. Further, there is a strong demand from farming segments for gold loans to address short-term capital needs.

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