Money & Banking

Fino Payments Bank to double gold-loan sourcing to ₹2,000 crore

Our Bureau Mumbai | Updated on July 28, 2020 Published on July 28, 2020

Fino Payments Bank plans to double the value of its gold loan sourcing business in the current fiscal and will partner with banks and NBFCs to source gold loans on their behalf.

It plans to carry out over ₹2,000 crore of gold loan referral business this fiscal, said Amit Jain, Head (Alliances and PMO), Fino Payments Bank.

In FY20, it had facilitated gold loan sourcing worth ₹1,000 crore as a corporate business correspondent for a leading bank. More than 30,000 customers availed the service, with the average ticket size ranging from ₹50,000 to over ₹5 lakh.

“Fino is in talks with a few leading NBFCs to unlock the gold loan potential by leveraging its extensive retail network,” it said in a statement on Tuesday.

The bank’s retail network of over 2.25 lakh points comprising branches and merchants will also facilitate gold loan referral, along with a range of banking services. The network also includes more than 8,000 outlets of the bank’s strategic partner Bharat Petroleum (BPCL).

“We would be keen to associate with like-minded partners to bring their gold loan offerings closer to rural masses and help them avoid the trappings of the informal sector. We expect the demand to grow in FY21 as people turn to gold loans for their personal and working capital requirements,” said Jain.

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Published on July 28, 2020
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