Capri Global Capital to enter gold loan business in first half of FY23

NBFC Capri Global Capital Ltd (CGCL) said it is planning to enter the gold loan business in the first half of the financial year 2022-23.

Non-banking financial company (NBFC) Capri Global Capital Ltd (CGCL) on Monday said it is planning to enter the gold loan business in the first half of the financial year 2022-23.

The lender aims to build a gold loan book size of Rs 8,000 crore and expand its network with 1,500 branch locations over the next five years, according to a statement.

Currently, it operates in two major verticals secured MSME loans and affordable housing finance. It also provides construction finance to affordable housing projects and distributes auto loan products of some banks.

"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," CGCL Managing Director Rajesh Sharma said.

He said the trend is evident in the country's rural and semi-urban geographies.

The company has appointed Ravish Gupta to head the business vertical.

As of December 31, 2021, the company's consolidated net profit stood at Rs 64.9 crore with assets under management (AUM) at Rs 5,769.3 crore.