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Capri Global Capital Ltd (CGCL) commenced operations of its gold loan business on Tuesday by opening 108 branches spread across Rajasthan Madhya Pradesh, Delhi-NCR, Haryana, Gujarat, Uttar Pradesh, and Maharashtra.
The Mumbai-headquartered non-banking finance company, which currently offers MSME loans, affordable housing finance, auto loan, and construction finance, aims at increasing its gold loan branch network by September-end 2022 in North and West India.
The gold loan branches, which will offer gold loans up to 75 per cent of the value of pledged gold for tenures from 6 to 12 months with multiple repayment options, are equipped with artificial intelligence (AI)-powered security vaults to offer safety to the gold ornaments, as per a CGCL statement.
Rajesh Sharma, MD, said CGCL expects to build a gold loan book size of ₹8,000 crore and expand its network with 1,500 branch locations over the next five years.
“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 evident in the country’s rural and semi-urban geographies… We are bullish on tier-III, -IV, and -V cities of the country,” he said.
Ravish Gupta, Business Head-Gold Loan, said the 100 per cent free insurance cover, equivalent to the pledged value of gold, will make the borrowers worry-free about their asset security. He said the minimum gold loan amount that CGCL will offer is ₹3,000.
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