IFC's first investment in a gold-loan NBFC, to invest $35 mn in Manappuram

Gold loan companies offer loans to financially-excluded customers and MSMEs by enabling them to monetise their gold without the need for documentary proof of income

International Finance Corporation (IFC) will invest $35 million in Manappuram Finance Limited (MFL), Kerala-based lender, to tap on households and small enterprises who are looking for loans against their gold assets. This is IFC's first investment in a gold-loan NBFC in India.

“We are making our first investment in a gold-loan finance company to create opportunities for the rural and poor households in transition from informal to formal forms of credit," said Jun Zhang, IFC Country Head for India. 

Through this investment, IFC is supporting one of the priorities of the Indian government to unlock the value of idle gold