IIFL Finance's lending partners mull options to grow gold loan book

IIFL Finance’s co-lending partner banks for gold loans are reviewing the arrangements and exploring various options, including inorganic routes, to grow the gold loan book.

This follows the Reserve Bank of India’s (RBI’s) restrictions on non-banking financial companies (NBFCs) from engaging in gold loan business.

The RBI on Monday debarred IIFL Finance from sanctioning and disbursing fresh gold loans with immediate effect, citing “material supervisory concerns” to safeguard the interests of customers.

Some of its co-lending partners for gold loans include Canara Bank, DCB Bank, and DBS Bank.

IIFL Finance, among the top two NBFCs in the gold loan business,