The Reserve Bank of India has expressed concern about the increasing amount of gold loans. Well, this is also a matter of concern because on one hand there has been a surge in the demand for gold. The prices of gold are increasing by Rs 100 or more in a day and on the other hand, the trend of taking loans by mortgaging gold is also increasing. What does that even mean? According to the Reserve Bank of India data, gold loans were increasing at the rate of 26 percent annually for the last several years. This is too much in itself. But in the last quarter of the last financial year, gold loans have increased by 32 percent.
Taking loan by mortgaging gold is the last option for middle class and lower middle class people. They are trying this option, which automatically shows that the problems of the people have increased. The Reserve Bank’s concern is purely economic because it feels that if the loan increases at this pace, the amount of bad loans may increase significantly and the balance sheets of the banks may deteriorate again. Now the balance sheet has been corrected by writing off the debt. But apart from economic reasons, there should also be concern because of how much inequality is increasing in the society. On one hand, the demand for gold is not decreasing despite the price being Rs 74 thousand per tola, while on the other hand, the number of people taking loans by pledging gold is increasing. Obviously, the one who is pledging the gold is not buying it.