Suryoday SFB enters gold loan segment to scale secured lending portfolio

Suryoday Small Finance Bank has entered the gold loan segment, starting with Maharashtra

In a move to scale its secured loan portfolio, Suryoday Small Finance Bank (SFB) decided to enter the gold loan segment, with plans to start from Maharashtra with a phased expansion across other states in the coming months.

 

Why is Suryoday SFB entering the gold loan segment?

 

The SFB plans to enter the gold loan market in line with its strategy to be a diversified, full-service retail bank with a balanced, secure asset mix. The move is aligned with its strategy to strengthen a safer, more granular and collateral-backed lending portfolio, while meeting the evolving credit requirements of both existing and new-to-bank customers. The lender’s foray into gold loans marks a logical and strategic extension of its journey.

 

 

What customer demand is driving the bank’s move?

 

"Over the years, the SFB has built a strong foundation in unsecured business lending, especially supporting women entrepreneurs, helping them start, scale and sustain their enterprises. As these businesses have grown, so have their working capital needs, and many long-standing customers have consistently expressed their desire for the bank to offer a trusted, transparent gold loan solution. This step is therefore a natural progression, driven by customer demand, relationship-based banking, and SSFB’s deep understanding of grassroots entrepreneurial ecosystems," the SFB said.

 

How does the bank plan to scale the gold loan business?

 

With a presence across over 700 banking outlets in more than 15 states, the SFB is well placed to scale the gold loan business in a calibrated manner, leveraging its distribution strength, customer relationships, and digital underwriting capabilities.

 

What is the management’s view on gold-backed lending?

 

Commenting on the launch, R Baskar Babu, managing director and chief executive officer of Suryoday Small Finance Bank, said, "Introducing gold loans is a pivotal step in our strategic evolution. It allows us to diversify our asset book with a secured, stable and demand-driven product."

 

"Starting with Maharashtra, we will rapidly expand this offering nationally, reinforcing our commitment to providing comprehensive financial solutions. The bank sees strong long-term potential in gold-backed lending, supported by stable asset quality, predictable yields, and rising household gold monetisation," Babu added.