Gold loan firms see opportunity to lend as banks turn risk averse

Gold loan companies (GLCs) are eyeing a golden opportunity to step up lending in FY21 in the backdrop of surge in the price of the yellow metal, banks turning risk averse and small and mid-size non-banking finance companies grappling with liquidity issues, amid outbreak of the corona virus pandemic.

While business has been hit due to the ongoing nationwide lockdown, which started from March 25 to contain the spread of the virus, GLCs expect to bounce back to usual business levels once the restrictions on movement of people and keeping businesses open are relaxed in certain parts of the country in the next couple of days.

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