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<div type="image" title="Data from RBI suggests that the outstanding amount on gold loans has swelled from Rs 85,009 crore in September 2022 to Rs 1,47,081 crore in September 2024." msid="115250619" hostid="261" sizebytes="118350" caption="&amp;lt;p&amp;gt;Data from RBI suggests that the outstanding amount on gold loans has swelled from Rs 85,009 crore in September 2022 to Rs 1,47,081 crore in September 2024.&amp;lt;/p&amp;gt;"></div> “Ye le beta, humare khaandani sone ke gehne. Ise girvi rakhva de, shayad kuch paise aa jaye ghar main.” How many times have we seen similar dialogues repeat itself in Bollywood films of the 70s and 80s—abject poverty and a frail-looking old mother pleading to her son to pawn the family’s heirloom <keyword id="18712" type="General" weightage="20" keywordseo="gold" source="Orion">gold</keyword> ornaments to a jeweller, all to get a few bucks? Well, if you’d ask that son in 2024, he’d rather hit the loan button on his <keyword id="19977340" type="General" weightage="20" keywordseo="demat" source="keywords">Demat</keyword> account than pawn his mother’s gold jewellery. Given how Indians are rapidly resorting to taking loans against their investments in shares and mutual funds, these might as well be a cherished family heirloom in today’s time. Fair warning though; it's not as if gold and loans against it are going down in India’s lending scene. It's very much the opposite, shining brighter than ever! The secured loan category is having its time in the spotlight, and people are certainly looking beyond land and property to get their hands on some extra monies! But what is funding the steep rise behind these loans? And are they as failsafe and secure as they’re made out to be? We decode for you in this week’s Simply Put. <h2>The great Indian pawning party</h2>Pawning one’s gold has been, by far, the OG Indian financial move to get a loan. That continues well into 2024, and apparently, more so when India decides to wed and celebrate! Data from <keyword id="19899808" type="General" weightage="20" keywordseo="rbi" source="keywords">RBI</keyword> suggests that the outstanding amount on gold loans has swelled from Rs 85,009 crore in September 2022 to Rs 1,47,081 crore in September 2024. It looks like Gold took the motto of rise and shine too seriously! Table 1: Growth in gold loans <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Year </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Amount (In Rs crore) </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">September 2022 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">85,009 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">March 2023 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">89,370 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">September 2023 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">97,426 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">March 2024 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1,02,562 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">September 2024 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1,47,081 </td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table> Source: RBI data While the world continues to be riled up in multiple geopolitical crises in 2024, gold has been making merry of these tough times. Thus far this year, domestic gold prices have grown by 23%, outperforming benchmark indices like Nifty and Sensex by a mile, which have gone up by 9.85% and 8.86%, respectively. The growth in gold loan disbursal rates month on month this year could also put Nifty and Sensex’s growth to shame. In just September 2024, gold loans grew an astounding 51%, up from 40.9% in August, 30.5% in June, and just 14.8% in March. <h2>Hey, wait up for me, says <keyword id="23953567" type="General" weightage="20" keywordseo="las" source="keywords">LAS</keyword></h2>In lockstep with the elder, gold loan sibling, advances against shares and bonds have also been inching up since 2022. Data from RBI (Reserve Bank of India) notes that as of September 2022, the outstanding quantum of loans that were taken against shares (LAS) and bonds stood at Rs 7,397.94 crores. This inched up to Rs 7,764 crore in September 2023. Come 2024, and it looked like this was LAS’ time to shine. Loans swiftly skyrocketed, with outstanding loans in this category going up from Rs 8,492 crore in March 2022 to a staggering Rs 9,546 crore at the end of September 2024. Naturally, the smoke of LAS has its fire in the record inflows that Indians are pouring into the stock market and mutual funds month on month. Per AMFI (<keyword id="20090034" type="General" weightage="20" keywordseo="association-of-mutual-funds" source="keywords">Association of Mutual Funds</keyword> in India), the net AUM (assets under management) of India’s mutual fund industry grew to Rs 67,25,614.61 crores in October 2024, up from Rs 67,09,259.24 crores in September 2024. Even the number of retail mutual fund folios, which include equity, hybrid, and solution-oriented mutual funds, burgeoned to 17,23,52,296 in October, as compared to 16,81,61,366 in September. The same goes for stock investments in India, where the number of new demat accounts that are added every month just simply refuses to climb down. As of last month, total demat accounts in the country stood at 17.9 crore, which is more than the entire population of full-fledged nations like Japan (12.45 crore), Russia (14.38 crore), and Bangladesh (17.3 crore). In fact, since February this year, the monthly growth of LAS has been hitting double digits. From 11.3% in March to 21.6% in May to 26.8% in August, growth in LAS has been exceptional, hitting 22.9% in September this year. For context, monthly growth in the LAS segment was at a mere 5% in September 2023. <h2>What's driving the growth?</h2>It's a win-win for both the bank and the customer. Customers love them because LAS is available at a lower interest rate compared to unsecured personal loans. You can get a loan at an interest rate of anywhere between 9 and 12% by pledging your gold, MF units, or shares. Compare this to over 10-28% rates, which is the range where unsecured personal loans charge interest. Banks love <keyword id="827883" type="General" weightage="100" keywordseo="secured-loans" source="Orion">secured loans</keyword> since they are well-secured. In case you default on paying back, the bank can sell off your gold, shares, or mutual fund units to recover the amount. This takes a lot of stress off the banks, which are already dealing with secured loans’ riskier sibling-unsecured lending. High NPAs (non-performing assets) and non-payments in the unsecured borrowing space have already put RBI on red alert, which is why the apex bank is tightening the screws on unsecured lending, which was well on its way to becoming a ticking time bomb. As a result, credit growth has moderated to 12.8% YoY in October, as against the 19.3% rise recorded in the year-ago period. Yet it's not like the banks won't feel the heat. Analysts at Nomura note that personal loan delinquencies in India that have been overdue by over 90 days rose to 5.1% in the last financial year, as opposed to just 3.9% in the year prior. <h2>How does it work?</h2>Both these loans work on a similar principle: Your loan amount is equal to a certain percentage of the actual market value of your asset. This is known as the <keyword id="20051485" type="General" weightage="20" keywordseo="ltv" source="keywords">LTV</keyword> (loan-to-value ratio). In the case of gold and debt mutual funds, RBI mandates that this LTV be about 75-80%. So, for every Rs 100 of gold or debt mutual fund unit you pledge, your maximum loan amount cannot exceed Rs 80. If you pledge gold, which has a market value of Rs 10 lakh, you can take a loan of up to Rs 8,00,000. In the case of shares and mutual fund units, this limit is set at 50%. So, your shares worth Rs 5,00,000 can only get you a loan worth Rs 2,50,000. But the bright side? You can continue earning returns on your investments and pay interest only on the amount you use, since this loan works as an overdraft facility. <h2>Super safe, you say?</h2>Interest rates on both of these loans are very much dependent on the market value of the asset, which wildly fluctuates on a day-to-day basis. So, in case the value of your asset falls, you’ll have to keep a margin or more of the same asset in order to continue with the loan and maintain the LTV balance. Failure to do so could mean the bank can even sell off your asset. Says financial planner Nema Chaya Buch. “Yes, LAS offers easy availability of funds since these loans come with a lower interest rate as compared to personal loans. Also, you continue to earn average returns of 10–13% on your equity investments. But the downside is, in case of emergency, those pledged securities cannot be sold. Also, if the equity market goes down, then the bank may ask for additional collateral. Raghvendra Nath, MD, Ladderup Wealth Management notes that taking a LAS is best when the value of your securities has appreciated significantly. “This allows you to maximize the loan amount based on your collateral while also addressing financial needs without having to liquidate your investment portfolio. However, there are notable disadvantages to consider. The market risk is significant; a substantial decline in market value could lead to margin calls, which may incur fees and charges if there are delays or prepayments, ultimately increasing the effective cost of borrowing. Furthermore, failure to make timely payments could result in the loss of your assets.”. Umesh Mohanan, ED &amp; CEO, of Indel Money, cautions that one should have a sufficient quantity of gold to get the loan amount one wants. "According to the current RBI rules, the loan applicant/borrower can draw up to 75% of the total market value of the collateral/gold jewellery. So, always carry a sufficient quantity of gold based on one’s loan requirement. “The most important thing is that the valuation of the gold depends on the purity of the gold. If the borrower pledges gold with higher purity, such as 24 carats or 22 carats, he will get the maximum loan amount," he adds.

Simply Put: Secured Loans 2.0 — why more and more Indians are turning to gold, shares and mutual funds to get loans

India's <keyword id="22879519" type="General" weightage="20" keywordseo="organised-gold-loan-market" source="keywords">organised gold loan market</keyword> is projected to double in the next five years to Rs 14.19 lakh crore despite expected moderation in growth due to stricter regulations, according to a <keyword id="19938520" type="General" weightage="20" keywordseo="PwC-India" source="keywords" meta.keywordsubtype="org" meta.entityname="PwC India" meta.hostid="153" meta.entityid="PwC India">PwC India</keyword> report. In fiscal 2023-24, the organised <keyword id="21627536" type="General" weightage="100" keywordseo="gold-loan-market" source="keywords">gold loan market</keyword> demonstrated substantial growth, reaching a valuation of Rs 7.1 lakh crore, according to the report titled 'Striking gold: The rise of India's gold loan market' . "It is expected to reach around Rs 14.19 lakh crore by FY 2029 at a five-year CAGR of 14.85 %," it said. Indian families own massive quantities of gold, estimated at 25,000 tonne. Existing gold holdings with <keyword id="19895507" type="General" weightage="20" keywordseo="Indian-households" source="keywords">Indian households</keyword> are valued at roughly Rs 126 lakh crore, the report said. It further said the gold loan market is poised to see moderate growth over the next two years, as gold lenders are facing increased scrutiny from regulatory authorities regarding loan-to-value (LTV) maintenance and auction-related procedures. "The second-largest player in the gold loan market being inactive would have an impact on market growth in FY25," the report said. Also, the <keyword id="19899808" type="General" weightage="20" keywordseo="rbi" source="keywords">RBI</keyword>'s advisory to <keyword id="19938300" type="General" weightage="20" keywordseo="NBFCs" source="keywords">NBFCs</keyword> on cash disbursement, which limits the amount of cash disbursal to Rs 20,000, could push customers to rely on the unorganised sector. The regulator has also raised concerns about the evaluation process for lending activities through fintech startups. The increased regulatory scrutiny and revised guidelines have led to a dip in the share prices of leading NBFCs, PwC said. "Gold loan lenders are expected to use this period to ensure that they are compliant with all regulatory guidelines while undertaking several measures to optimise their middle and back offices through digitisation initiatives," it said. Lenders are also expected to implement cost optimisation initiatives that will help drive up the bottom-line profitability of their companies and enhance investor confidence which has slightly depleted as a result of the regulatory scrutiny. Furthermore, the report said rising gold prices over the past financial year may also drive lenders to take a cautious approach to lending rates and pricing as any downward movement in gold prices will result in a substantial LTV breach that will further create operational issues for lenders in the form of auctions. "The growth of the gold loan market is expected to be steered by both banks and NBFCs," the report said. The emergence of digital gold loan aggregator platforms and their strategic collaboration with gold loan lenders such as banks and NBFCs will be a key driving factor for the growth of the industry, enabling gold loan lenders to tap into a previously untapped segment of digitally savvy customers. "While the forecasted growth of the gold loan market means potential growth for all players, the impact on the players may vary. Banks are expected to benefit from their lower interest rates," PwC said. Jaikrishnan G, Partner (Financial Services), PwC India said lending against gold is the oldest form of credit. It remains one of the most attractive options for consumer as well as lenders. "High return-on-assets, manageable risk, timely regulatory interventions, growing adoption, tech-enabled operating models have all contributed to sector growth. As India embraces the vision of Viksit Bharat, gold loans will provide much needed liquidity and credit access to growing small and medium entrepreneur segments," he said. The report further said growth by NBFCs is expected to be fuelled by their expansion and increased outreach to regions with low penetration, bringing new credit customers to the financial services ecosystem. Also, fintechs will play a critical role in bringing in the required technology and innovation into the industry, thus helping lenders to create unique product propositions to boost growth, it said. <keyword id="20037818" type="General" weightage="20" keywordseo="South-India" source="keywords">South India</keyword> contributes to a vast extent, as it emerges as the dominant market for gold loans, with 79.1% share of the total outstanding loans. The report also noted that an assumption can be made that the entire Rs 126 lakh crore worth of gold will not be available for pledging due to various reasons like jewelry belonging to religious institutions, jewellery with emotional value, and certain jewellery held by individuals who are not in need of finance.

Gold loan market projected to double in 5 years to Rs 14.19 lakh crore, says PwC India's report

The <keyword id="21627536" type="General" weightage="100" keywordseo="gold-loan-market" source="keywords">gold loan market</keyword> in <keyword id="19895063" type="General" weightage="20" keywordseo="India" source="keywords">India</keyword> is on the cusp of substantial growth, driven by rising per-gram gold rates and increasing customer demand. Currently, the market is predominantly controlled by the <keyword id="21485305" type="General" weightage="20" keywordseo="unorganized-sector" source="keywords">unorganized sector</keyword>, which holds a 63 % share, while <keyword id="22789155" type="General" weightage="20" keywordseo="organized-players" source="keywords">organized players</keyword>, including banks and Non-Banking Financial Companies (<keyword id="19938300" type="General" weightage="20" keywordseo="NBFCs" source="keywords">NBFCs</keyword>), account for the remaining 37 %, according to a recent <keyword id="20055667" type="General" weightage="20" keywordseo="PwC" source="keywords" meta.keywordsubtype="org" meta.entityname="PwC" meta.hostid="83" meta.entityid="PwC">PwC</keyword> report. Indian households are estimated to possess approximately 25,000 tonnes of gold, valued at around Rs 126 lakh crore. Despite this vast wealth, the existing gold loan market through organized channels is valued at just Rs 7.1 lakh crore. With the market penetration of gold loans in India currently at only 5.6%, there is considerable untapped potential within <keyword id="22902023" type="General" weightage="20" keywordseo="household-gold-holdings" source="keywords">household gold holdings</keyword>. Although not all gold is available for pledging--due to factors such as religious significance, emotional value, or lack of financial need--there remains substantial opportunity for growth in the gold loan sector. The gold loan market in India has historically been dominated by the unorganized sector. However, in recent years, organised players, particularly NBFCs, have begun to gain market share. Banks, too, have been making inroads, especially through retail gold loans and a continued focus on agricultural gold loans. This shift is expected to continue as organised players leverage their formal lending structures, transparency, and customer trust to capture a larger share of the market. Shaji Varghese, CEO, Muthoot FinCorp Limited, "Gold loan assets have been growing steadily and the potential to grow further is high since a major part of the country's gold loan market is still in the unorganized sector. <keyword id="19910265" type="General" weightage="20" keywordseo="gold-prices" source="keywords">Gold prices</keyword> have been rising over the years. There is also a paradigm shift on how buying gold is perceived today. Traditionally gold was purchased for historical, cultural and societal reasons and while that continues, people have started buying gold as an investment and also as a convenient option to raise funds for financial requirements." India remains one of the world's largest consumers of gold, with total demand reaching 747 tonnes in 2023. However, this represented a 3% decrease compared to the previous year, primarily due to the surge in gold prices, which dampened demand for gold jewellery. The price of gold in India increased from Rs 55,375 to Rs 66,532 per 10 grams (22 carats) between November 2023 and May 2024, prompting a shift towards lightweight or lower-carat jewellery items. Globally, the demand for gold grew by 3 % in 2023, with China emerging as the largest market. The global market's expansion presents opportunities for Indian gold loan financiers to explore new avenues for growth beyond domestic borders. Gold's relationship with the US dollar is a key factor influencing gold prices in India. A weakening rupee often leads to an increase in gold prices, as gold is priced in USD internationally. This dynamic drives higher imports and increases the cost of gold in rupees, further fuelling demand as investors seek a safe haven against currency fluctuations. V.P. Nandakumar, Managing Director and Chief Executive Officer, Manappuram Finance Ltd, "Of late, the sharp increase in gold prices has imparted some stability to the gold loan book of most players and we do not expect gold prices to come down due to geo-political factors, the accumulation of gold by central banks as well as the lasting allure of the yellow metal." The securitisation of gold through various financial instruments offers new avenues for gold loan players to diversify their offerings. By using gold-based security as collateral, established players can introduce new loan products that leverage the intrinsic value of physical gold.

India's gold loan market set for rapid growth amid rising prices; unorganized sector holds 63% share, notes recent PwC report

New Delhi, Non-Banking Financial Company (NBFC) <keyword id="3504742" type="General" weightage="20" keywordseo="IIFL-finance" source="Orion">IIFL Finance</keyword> has become the second largest gold loan provider surpassing Manappuram Finance. "The gold loan portfolio has crossed Rs 23,690 crore assets under management (AUM), surpassing Manappuram Finance at Rs 20,809 crore worth of gold loan AUM. "This has cemented <keyword id="82050" type="General" weightage="20" keywordseo="IIFL" source="Orion">IIFL</keyword> Finance's position as the second largest gold loan provider in India in terms of AUM," IIFL Finance head of Gold Loan Business Saurabh Kumar, said. The market leader in gold loans is Muthoot Finance with an AUM of Rs 66,089 crore, as of September 2023. Kumar said, "the company has about 18.6 lakh customers and over 70 per cent of our customers are repeat customers helped by customer centric approaches like repayment grace period, no foreclosure charges, transparency in dealings and proactive customer need identification." The company expects a 25-27 per cent increase in gold loan in FY'24, he said. IIFL Finances provides gold loans through 1,486 towns and rural areas across 25 states and 4 Union Territories to salaried, self-employed and Micro, Small and Medium Enterprises (MSME) customer segments. Besides, gold loan, IIFL Finance offers affordable home loan, microfinance loans and business loans and has a consolidated AUM of Rs 73,066 crore.

IIFL Finance emerges as second largest gold loan NBFC

<ul><li>Borrowers can get loans of up to 75% of the <keyword id="18712" type="General" weightage="20" keywordseo="gold" source="Orion">gold</keyword>'s appraised value, as mandated by RBI regulations. </li><li>Before getting a <keyword id="130134" type="General" weightage="20" keywordseo="gold-loan" source="Orion">gold loan</keyword>, it is crucial to research and compare various lenders in the market. </li><li>The choice of repayment tenure and frequency can significantly influence the interest rate on your gold loan. </li></ul>A gold loan is a secured loan where borrowers pledge their gold jewellery as <keyword id="125948" type="General" weightage="20" keywordseo="collateral" source="Orion">collateral</keyword>. It offers quick approval, minimal documentation, no credit checks, competitive interest rates, and flexible loan amounts based on the gold's value. Since a gold loan is a secured loan, the interest rates are lower than <keyword id="1548041" type="General" weightage="20" keywordseo="unsecured" source="Orion">unsecured</keyword> loans like personal loans. Interest rates on gold loans can vary between 8.5% to 11% per annum or more in some cases. Here are five essential tips to help you secure the best interest rates when applying for a loan against your gold jewellery. <cmsannotation type="cmsannotation" annotationid="Conduct thorough research" comment="Subhead" text="Conduct thorough research">Conduct thorough research</cmsannotation> Before getting a gold loan, it is crucial to research and compare various lenders in the market. Different financial institutions and lenders offer varying gold loan interest rates, so doing your research can save you a substantial amount of money in the long run. <cmsannotation type="cmsannotation" annotationid="Understanding loan- to- value ratio" comment="Subhead" text="Understanding loan- to- value ratio">Understanding loan- to- value ratio</cmsannotation> One of the most critical factors impacting gold loan interest rates is the loan-to-value (LTV) ratio. This ratio determines how much money you can borrow against the value of your gold. Borrowers can get loans of up to 75% of the gold's appraised value, as mandated by RBI regulations. <cmsannotation type="cmsannotation" annotationid="Choose the right repayment plan" comment="Subhead" text="Choose the right repayment plan">Choose the right repayment plan</cmsannotation> The choice of repayment tenure and frequency can significantly influence the interest rate on your gold loan. Opting for a shorter repayment period with more frequent instalments can often lead to a lower interest rate. On the other hand, selecting a longer repayment plan with fewer payment intervals may result in a higher interest rate. You can choose to repay your interest on a monthly, bi-monthly, quarterly, half-yearly, or annual basis as per your convenience. <cmsannotation type="cmsannotation" annotationid="Monitor gold market prices" comment="Subhead" text="Monitor gold market prices">Monitor gold market prices</cmsannotation> Interest rates on gold loans can be affected by external factors unrelated to the loan itself. Keep a close eye on fluctuations in global gold prices, as they can impact interest rates. Generally, when the price of gold rises, interest rates tend to decrease, making loan repayment more manageable. Being aware of these market trends can help you time your gold loan application to secure the best interest rates. <cmsannotation type="cmsannotation" annotationid="Maintain a stable income" comment="Subhead" text="Maintain a stable income">Maintain a stable income</cmsannotation> Some lenders may request proof of your monthly income during the gold loan application process. Demonstrating a steady income source can work in your favour, as it shows your ability to repay the loan. This can lead to lenders offering you lower interest rates. However, many lenders do not require income proof for a gold loan application. In such cases, your KYC documents are sufficient. By understanding the loan-to-value ratio, selecting an appropriate repayment plan, monitoring gold market prices, and maintaining a stable income source, borrowers can increase their chances of securing favourable terms for their loan against gold. Keep these tips in mind to make the most out of your gold assets while securing the funds you need.

Getting a gold loan? Here is how to get the best interest rates

<ul class="summary-list"><li>Stocks wavered and closed mixed on Tuesday. </li><li>Doubts about the pace of rate cuts shook shook stocks and bonds earlier this week. </li></ul>US indexes ended mixed on Tuesday as investors adjusted their outlooks for rate cuts for the rest of the year. The <a target="_blank" href="https://markets.businessinsider.com/index/s&amp;p_500">S&amp;P 500</a> and the <a target="_blank" href="https://markets.businessinsider.com/index/dow_jones">Dow Jones Industrial Average</a> dipped slightly, while the <a target="_blank" href="https://markets.businessinsider.com/index/nasdaq_100">Nasdaq</a> edged up. The benchmark S&amp;P 500 added to losses from Monday's session, pulling back further from records notched last week as investors adjusted their outlooks for rate cuts. Commentary from several Fed officials outlining expectations for a modest rate-cutting cycle forced investors to recalibrate expectations of swift, steep rate cuts. The bond market sold off Monday in response, and the 10-year Treasury yield jumped 11 basis points to hover at 4.2% on Tuesday. On Tuesday. That marks the key bond yield's highest level in three-months. Still, investors expect more rate cuts at coming meetings, and according to the <a target="_blank" href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html?redirect=/trading/interest-rates/countdown-to-fomc.html">CME FedWatch Tool</a>, the odds of a quarter-point interest rate cut next month stand at 89.6%. Meanwhile, earnings season has been mostly positive so far. Nearly one-fifth of S&amp;P 500 companies have reported third-quarter results, and about 80% have beaten profit estimates by 5%, Bank of America said.<a target="_blank" href="https://markets.businessinsider.com/stocks/gm-stock">General Motors</a> rose over 10% Tuesday after<a target="_blank" href="https://www.businessinsider.com/gm-stock-earnings-crushing-it-suvs-trucks-evs-2024-10"> topping forecasts</a> on Tuesday. Tesla and Boeing are scheduled to report on Wednesday, followed by UPS on Thursday.Here's where US indexes stood at the 4:00 p.m. closing bell on Tuesday:<ul><li><a target="_blank" href="https://markets.businessinsider.com/index/s&amp;p_500?utm_source=markets&amp;utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_source=markets&amp;utm_medium=ingest&amp;utm_source=markets&amp;utm_medium=ingest&amp;utm_source=markets">S&amp;P 500</a>: 5,851.20, down 0.05% </li><li><a target="_blank" href="https://markets.businessinsider.com/index/dow_jones?utm_source=markets&amp;utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_source=markets&amp;utm_medium=ingest&amp;utm_source=markets&amp;utm_medium=ingest&amp;utm_source=markets">Dow Jones Industrial Average</a>: 42,924.89, down 0.02% (-6.72 points)</li><li><a target="_blank" href="https://markets.businessinsider.com/index/nasdaq_composite?utm_source=markets&amp;utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_source=markets&amp;utm_medium=ingest&amp;utm_source=markets&amp;utm_medium=ingest&amp;utm_source=markets">Nasdaq composite</a>: 18,573.13, up 0.18%</li></ul>Here's what else happened today:<ul><li><a target="_blank" href="https://www.businessinsider.com/polymarket-whale-trump-vs-harris-betting-odds-polls-election-2024-10">The Polymarket 'whale' is placing as many as 71 bets a minute in favor of Trump.</a></li><li><a target="_blank" href="https://www.businessinsider.com/russia-ukraine-war-moscow-assets-frozen-uk-loan-west-sanctions-2024-10">Russia's frozen assets are being used by the UK for a $3 billion loan to Ukraine.</a></li><li><a target="_blank" href="https://markets.businessinsider.com/news/commodities/paul-tudor-jones-gold-crypto-bitcoin-election-inflation-debt-crisis-2024-10?_gl=1*1nv0ey9*_ga*MTMxNDIwNDI1Ni4xNjc1Njg3OTU4*_ga_E21CV80ZCZ*MTcyOTYxNDUwNy43NTUuMS4xNzI5NjI1MTk5LjYwLjAuMA..">Legendary investor Paul Tudor Jones said he's holding gold and bitcoin to hedge against post-election inflation risk</a>.</li><li><a target="_blank" href="https://www.businessinsider.com/co-living-office-conversion-housing-shortage-dormitory-apartment-gensler-pew-2024-10">'Flexible co-living' could help bring down office-conversion costs and add housing supply, new study says.</a></li><li><a target="_blank" href="https://markets.businessinsider.com/news/stocks/tesla-q3-earnings-preview-wall-street-auto-margins-robotaxi-2024-10?_gl=1*n4gz7a*_ga*MTMxNDIwNDI1Ni4xNjc1Njg3OTU4*_ga_E21CV80ZCZ*MTcyOTYxNDUwNy43NTUuMS4xNzI5NjI3MDAyLjYwLjAuMA..">What Wall Street is watching for in Tesla's upcoming earnings report.</a></li></ul>In commodities, bonds, and crypto:<ul><li><a target="_blank" href="https://markets.businessinsider.com/commodities/oil-price?utm_medium=ingest&amp;utm_source=markets&amp;utm_medium=ingest&amp;utm_source=markets">West Texas Intermediate</a> crude oil was up 2.38% to $72.24 a barrel. <a target="_blank" href="https://markets.businessinsider.com/commodities/oil-price?utm_medium=ingest&amp;utm_source=markets&amp;utm_medium=ingest&amp;utm_source=markets">Brent crude</a>, the international benchmark, jumped 2.23% to $75.94 a barrel.</li><li><a target="_blank" href="https://markets.businessinsider.com/commodities/gold-price?utm_medium=ingest&amp;utm_source=markets&amp;utm_medium=ingest&amp;utm_source=markets">Gold</a> was higher by 0.80% to $2,760.9 an ounce.</li><li>The 10-year Treasury yield increased one basis point to 4.2%.</li><li><a target="_blank" href="https://markets.businessinsider.com/currencies/btc-usd?utm_medium=ingest&amp;utm_source=markets&amp;utm_medium=ingest&amp;utm_source=markets">Bitcoin</a> shed 0.17% to $67,533.29.</li></ul>

Stock market today: Indexes end mixed as traders assess rate path and brace for more earnings

<ul class="summary-list"><li>This post originally appeared in the Insider Today newsletter.</li></ul>Welcome back! If you were among the "<a target="_blank" href="https://www.businessinsider.com/instagram-goodbye-meta-ai-train-generative-post-copypasta-profile-2024-9">Goodbye Meta AI</a>" posters on Instagram this week, I regret to inform you that it won't actually protect your data from being used to train AI. But I respect the effort.By the way, BI's subscription promotion ends tomorrow — <a target="_blank" rel="noopener" href="https://www.businessinsider.com/subscription/limited-offer">don't miss out</a>.In today's big story, Wall Street's big bet on China <a target="_blank" href="https://www.businessinsider.com/china-xi-jinping-stimulus-plan-wall-street-stock-market-economy-2024-9">might be fool's gold</a>.What's on deck:<ul><li>Markets: Trump and Harris both want the <a target="_blank" href="https://www.businessinsider.com/kamala-harris-donald-trump-crypto-bitcoin-donors-young-men-2024-9">crypto community in their corner</a>.</li><li>Tech: This chart shows how Netflix is <a target="_blank" href="https://www.businessinsider.com/netflix-stock-historic-high-chart-streaming-2024-9">absolutely crushing the streaming wars</a>.</li><li>Business: Everything thing you need to know about the potential strike <a target="_blank" rel="noopener" href="https://www.businessinsider.com/dockworker-strike-what-will-be-impacted-prices-inflation-martime-longshoremen-2024-9">that would upend supply chains</a>.</li></ul>But first, I just can't quit you.If this was forwarded to you, <a target="_blank" href="https://www.businessinsider.com/subscription/newsletter/insider-today">sign up here.</a><h3 id="7fa5f018-5b05-4a37-a8dc-d3f89138bcb3">The big story</h3><h2 id="5fd547b9-ec52-41fc-8e08-4f4b27dd8097">Here we go again</h2><div type="image" title="Xi Jinping holding a sparkler, preparing to launch a large cannon-fired Chinese Yuan Currency cash ball" height="1500" width="2000" msid="113821338" hostid="261" sizebytes="65812"></div>Just when Wall Street thought it was out, China is pulling it back in.US financial firms' interest in China was on its last legs, <a target="_blank" href="https://www.businessinsider.com/china-economy-aggressive-monetary-stimulus-interest-rate-rrr-2024-9">but a new stimulus package</a> has some investors excited again.The immediate impact of China's $114 billion package, which includes cutting interest rates and reducing the amount of money banks need to keep in reserve, has been big. But Business Insider's Linette Lopez isn't sold on <a target="_blank" href="https://www.businessinsider.com/china-xi-jinping-stimulus-plan-wall-street-stock-market-economy-2024-9">this being the start of a turnaround</a>.The fix is more of a bandage than anything else, as it doesn't address key economic issues plaguing the country.Reducing bank reserve requirements means more loans can be issued, but accessing capital isn't the problem, Linette writes. China's dumpster fire of a property market is what has consumers stuck in place.The majority of Chinese household wealth is invested in property (70%), which is a problem considering housing prices have fallen as much as 30% in Tier 1 cities.In short, Chinese consumers' money is tied to assets dropping like lead balloons, which doesn't make them keen to spend money.If you're still buying into the China hype, consider this: The stimulus package isn't that big.The government spent more than $1 trillion in the wake of the finance crisis and $157 billion in 2012 on infrastructure projects.As Linette puts it, "The problem does not match the price tag here."<div type="image" title="Inside a shopping mall in China." height="2845" width="4265" msid="113821331" hostid="261" sizebytes="892590"></div>Still, that's not stopping some Wall Streeters from diving back into China.Hedge fund billionaire David Tepper is <a target="_blank" href="https://markets.businessinsider.com/news/stocks/david-tepper-buys-chinese-stocks-country-launches-fiscal-stimulus-bazooka-2024-9">extremely bullish on the investing situation in China</a> after the most recent stimulus package, describing it as a buy "everything" moment.He's not alone. Traders, investors, and speculators have sent China's stock market to its <a target="_blank" rel="noopener noreferrer" href="https://www.businessinsider.com/china-boost-economy-stock-market-bazooka-stimulus-sentiment-rally-pboc-2024-9">best month in nearly a decade</a>, signaling that the market players think that Beijing's moves are a "bazooka."Most analysts agree that more will need to be done to keep the good times rolling. (Tepper, for what it's worth, acknowledged as much, noting that People's Bank of China governor Pan Gongsheng "promised to do more and more and more."What that looks like remains to be seen. The key gap in the current policy remains <a target="_blank" href="https://www.businessinsider.com/china-economy-stimulus-stock-market-consumer-deflation-outlook-real-estate-2024-9">fiscal support for China's discouraged consumers</a>, writes BI's Filip De MottIn the meantime, Wall Street's on-again-off-again relationship with China will prevail. As frustrating as the country can be to investors, too much opportunity exists for financiers to turn their back on it forever.So even if this latest crop of China believers gets burned, there will likely be another group willing to follow in their footsteps. After all, maybe this time will be different.<h3 id="77f31a4c-8462-4e3d-a71f-838cb79493fb">News brief</h3><h2 id="1fcd294b-3f53-425f-9f20-4093e8623b59">Top headlines</h2><ul><li>Hamas says its leader in Lebanon was <a target="_blank" href="https://www.businessinsider.com/hamas-says-leader-in-lebanon-killed-in-israel-air-strike-2024-9">killed in an Israeli strike</a></li><li>Globe Life hit with EEOC finding it "created, condoned" a work environment that is <a target="_blank" href="https://www.businessinsider.com/eeoc-finds-globe-life-created-hostile-work-environment-for-women-2024-9">abusive to women</a>.</li><li>The unsung warriors of <a target="_blank" href="https://www.businessinsider.com/price-is-right-bob-barker-models-sexual-harrassment-me-too-2024-9">'The Price Is Right.'</a></li><li>Apple no longer in talks to invest in OpenAI: <a target="_blank" rel="noopener" href="https://www.businessinsider.com/apple-falls-out-talks-invest-openai-wsj-report-2024-9">report</a>.</li><li>Who was Hassan Nasrallah, <a target="_blank" rel="noopener" href="https://www.businessinsider.com/who-was-hassan-nasrallah-the-hezbollah-leader-killed-by-israel-2024-9">the Hezbollah leader killed by Israel</a>?</li><li>Threads joins X in blocking posts to apparently <a target="_blank" rel="noopener" href="https://www.businessinsider.com/threads-blocks-jd-vance-leaked-links-2024-9">leaked documents about JD Vance</a>.</li></ul><h2 id="8120060b-ae66-48dc-b149-f0489a30ffa2">3 things in markets</h2><div type="image" title="Four of the rising stars in a photocollage" height="1500" width="2000" msid="113821334" hostid="261" sizebytes="562898"></div><ol><li>Ones to watch on Wall Street. Our annual list of Wall Street rising stars is here. We identified 25 of the top traders, investors, and dealmakers aged 35 and under. <a target="_blank" href="https://www.businessinsider.com/top-wall-street-executives-rising-stars-investing-trading-2024">Check out the full list</a>.</li><li>The fight for crypto bros' votes. Crypto might not matter to most voters, but for those who do care, it matters a lot. That's why former President Donald Trump and Vice President Kamala Harris are both dedicating resources <a target="_blank" href="https://www.businessinsider.com/kamala-harris-donald-trump-crypto-bitcoin-donors-young-men-2024-9">to court the crypto-community vote amid a tight race</a>.</li><li>The math ain't mathing on Trump Media's valuation. The company's nearly $3 billion market cap "seems unjustifiable," a chief global strategist said, considering its reported sales of $837,000 last quarter and a net loss of $16.4 million. What's worse, the political nature of the company <a target="_blank" href="https://markets.businessinsider.com/news/stocks/trump-media-stock-valuation-unjustifiable-even-after-70-drop-strategist-2024-9">means it has limited upside</a>.</li></ol><h2 id="f4b54806-7f81-450c-ba32-92560d4fae9b">3 things in tech</h2><div type="image" title="A photo collage of Elon musk, the Twitter logo, and the SpaceX spaceship" height="1500" width="2000" msid="113821333" hostid="261" sizebytes="171566"></div><ol><li>Elon Musk's "autocratic" style is an asset. His fixations are a threat. A new book by a veteran space journalist outlines SpaceX's success under Musk, who's described as a "mercurial leader." While his "autocratic control" of the company helped it gain dominance, his veer to the political right and fixation on X <a target="_blank" href="https://www.businessinsider.com/elon-musk-spacex-autocratic-style-success-politics-harm-2024-9">could undermine that dominance</a>.</li><li>OpenAI execs were reportedly worried the company could collapse when Ilya Sutskever left. Sutskever, the company's cofounder, left in May. According to a new report from The Wall Street Journal, <a target="_blank" href="https://www.businessinsider.com/openai-execs-worried-company-collapse-ilya-sutskever-left-report-2024-9">executives attempted to woo the AI researcher back</a> before rescinding the offer.</li><li>The streaming wars have a clear winner. Netflix is crushing the competition, but its victory was far from assured. The streamer's fortunes have changed astronomically in just a little more than two years — and <a target="_blank" href="https://www.businessinsider.com/netflix-stock-historic-high-chart-streaming-2024-9">it's left the competition in the dust</a>.</li></ol><h2 id="9260fa45-d397-4b3c-b4f8-4bb193976216">3 things in business</h2><div type="image" title="A man walks out of a store with a cart full of items, greeted by police officers outside." height="1000" width="1333" msid="113821336" hostid="261" sizebytes="39328"></div><ol><li>The war on "organized retail crime." Since the COVID-19 pandemic, retailers and law enforcement have been cracking down on retail theft, calling perpetrators "criminal masterminds." <a target="_blank" href="https://www.businessinsider.com/americas-war-organized-retail-crime-target-cvs-victorias-secret-2024-9">But those who commit these crimes are often homeless or mentally ill</a> — and some say this crackdown has effectively criminalized poverty.</li><li>Ready. Set. Strike. The International Longshoremen's Association, the largest union of maritime workers in the US, <a target="_blank" rel="noopener" href="https://www.businessinsider.com/dockworker-strike-what-will-be-impacted-prices-inflation-martime-longshoremen-2024-9">is set to start striking Tuesday</a> if its wage demands aren't met. Even a two-week strike would disrupt supply chains into 2025, according to one expert.</li><li>Medical bills are more negotiable than you think. You can negotiate your salary, and some people even haggle on things like cell phone bills and rent. When it comes to medical bills, though, many people accept the cost at face value. But healthcare experts told BI that <a target="_blank" href="https://www.businessinsider.com/how-get-medical-bills-reduced-negotiate-challenge-payment-plan-2024-9">pushing back on pricey bills is actually worth a shot</a>.</li></ol><h2 id="1ad7b482-3f4b-44b4-81b6-a864aa386478">In other news</h2><ul><li>Elon Musk wants to put people on Mars by 2030. <a target="_blank" href="https://www.businessinsider.com/elon-musk-spacex-plan-colonize-mars-dont-count-on-it-2024-9">Don't count on it</a>.</li><li>Brat summer is over. <a target="_blank" href="https://www.businessinsider.com/brat-summer-over-gen-z-fall-office-fashion-wish-list-2024-9">Here's what Gen Z's wearing to the office this fall</a>.</li><li>Is Mark Zuckerberg still obsessed with efficiency? <a target="_blank" href="https://www.businessinsider.com/meta-mark-zuckerberg-efficiency-obsession-wifi-password-2024-9">Check Meta's WiFi password</a>.</li><li>A record number of apartments will hit the market this year. <a target="_blank" href="https://www.businessinsider.com/apartments-record-us-housing-affordability-crisis-home-prices-real-estate-2024-9">That's great news for real estate affordability</a>.</li></ul><h2 id="9f5d80ac-3466-429f-a50a-2ffbb70c65ff">What's happening today</h2><ul><li>Fed chair Jerome Powell will speak at the National Association for Business Economics annual meeting.</li><li>The US fiscal year ends.</li><li>Ryan Routh, the man accused of attempting to assassinate Donald Trump on his golf course earlier this month, is arraigned on gun charges.</li><li>A court hearing for son of Mexican drug lord El Chapo on charges of drug trafficking and money laundering.</li></ul>The Insider Today team: Dan DeFrancesco, deputy editor and anchor, in New York. Jordan Parker Erb, editor, in New York. Hallam Bullock, senior editor, in London. Grace Lett, editor, in Chicago. Amanda Yen, fellow, in New York. Milan Sehmbi, fellow, in London.

China's $114 billion stimulus package immediately boosted its stock market. But can it last? 

<ul class="summary-list"><li>US stocks were mixed on Monday ahead of the Fed's expected rate cut later in the week.</li><li>Fed fund futures show markets see odds of a 50 basis point cut as more likely than a 25 basis point move.</li></ul>US stocks were mixed on Monday ahead of a major Federal Reserve meeting that's expected to deliver the first interest rate cut in four years.The S&amp;P 500 and the Nasdaq Composite were lower while the Dow Jones Industrial Average climbed. Treasury yields dipped, with the 10-year bond down about one basis point to 3.64%.The Fed will convene it's two-day Federal Open Market Committee meeting on Tuesday, with its rate decision to come on Wednesday at 2 p.m.<a target="_blank" class="" href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html?redirect=/trading/interest-rates/countdown-to-fomc.html">According to the CME FedWatch Tool</a>, fed fund futures show markets think the odds of a larger, 50 basis point cut have risen to 65%. Investors in recent weeks have fretted over economic data that points to a slowdown in the US economy, and calls have grown for the Fed to enact a bigger cut to get ahead of a potential recession.Rate cuts are largely expected to be a bullish development for the stock market, and investors have been clamoring for lower interest rates all year. <a target="_blank" class="" href="https://www.businessinsider.com/interest-rate-cuts-decision-this-week-federal-reserve-powell-inflation-2024-9">Lower interest rates will impact everything</a> from home loans to credit cards to auto loans.On Monday, tech bull and Wedbush Securities analyst Dan Ives noted that coming rate cuts would reinvigorate the tech trade."In a nutshell we believe the stage is set for tech stocks to move higher into year-end and 2025 in our opinion as the Fed and Powell kick off its rate cutting cycle this week, macro soft landing remains the path, and tech spending on AI remains a generational spending cycle just starting to hit the shores of the tech sector," Ives wrote.The artificial intelligence trade <a target="_blank" class="" href="https://markets.businessinsider.com/news/stocks/oracle-nvidia-help-revive-stock-markets-ai-trade-this-week-2024-9">made a comeback last week</a> after several weeks of turbulence following Nvidia's second-quarter earnings. Shares of Nvidia, Broadcom, and Oracle all soared last week as key players in the space delivered remarks addressing some of investors' biggest concerns about returns on massive AI spending.Here's where US indexes stood shortly after the 9:30 a.m. opening bell on Monday:<ul><li><a target="_blank" href="https://markets.businessinsider.com/index/s&amp;p_500?utm_source=markets&amp;utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_source=markets&amp;utm_medium=ingest&amp;utm_source=markets">S&amp;P 500</a>: 5,628.94, up 0.1%</li><li><a target="_blank" href="https://markets.businessinsider.com/index/dow_jones?utm_source=markets&amp;utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_source=markets&amp;utm_medium=ingest&amp;utm_source=markets">Dow Jones Industrial Average</a>: 41,715.54, up 0.8% (323 points)</li><li><a target="_blank" href="https://markets.businessinsider.com/index/nasdaq_composite?utm_source=markets&amp;utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_source=markets&amp;utm_medium=ingest&amp;utm_source=markets">Nasdaq composite</a>: 17,571.60, down 0.7%</li></ul>Here's what else is going on:<ul><li><a target="_blank" class="" href="https://markets.businessinsider.com/news/stocks/stock-market-outlook-wall-street-bulls-reveal-worries-about-stocks-2024-9">The risks keeping Wall Street's biggest stock bulls up at night</a>.</li><li><a target="_blank" class="" href="https://markets.businessinsider.com/news/stocks/safe-defensive-stocks-ai-investing-rally-nvidia-semiconductors-selloff-outlook-2024-9">More analysts are recommending</a> investors resist the AI FOMO and invest in defensive shares.</li><li><a target="_blank" class="" href="https://www.businessinsider.com/florida-housing-market-sales-weather-climate-change-retirement-pandemic-costs-2024-9?mrfhud=true">People are souring </a>on one of the country's hottest housing markets.</li></ul>In commodities, bonds, and crypto:<ul><li>Oil futures rose. <a target="_blank" class="" href="https://markets.businessinsider.com/commodities/oil-price?type=wti">WTI crude</a> increased 1.2% to $69.41 a barrel. <a target="_blank" href="https://markets.businessinsider.com/commodities/oil-price?utm_medium=ingest&amp;utm_source=markets">Brent crude</a>, the international benchmark, rose 1% to $71.35 a barrel.</li><li><a target="_blank" href="https://markets.businessinsider.com/commodities/gold-price?utm_medium=ingest&amp;utm_source=markets">Gold</a> was edged lower to $2,607 an ounce.</li><li>The 10-year Treasury yield rose one basis point to 3.642%.</li><li><a target="_blank" class="" href="https://markets.businessinsider.com/currencies/btc-usd">Bitcoin</a> was down 2%, trading at $58,620.</li></ul>

Stock market today: Indexes trade mixed as investors look forward to major Fed decision     

<ul><li><keyword id="163007" type="General" weightage="20" keywordseo="muthoot-finance" source="Orion">Muthoot Finance</keyword> is one of the largest <keyword id="130134" type="General" weightage="20" keywordseo="gold-loan" source="Orion">gold loan</keyword> NBFC in India and it has been using its <keyword id="6354839" type="General" weightage="20" keywordseo="marketing" source="Orion">marketing</keyword> strategies effectively to make the brand a household name.</li><li><keyword id="9213956" type="General" weightage="20" keywordseo="abhinav-iyer" source="Orion">Abhinav Iyer</keyword>, GM, Marketing &amp; Strategy, Muthoot Finance tells us all the brand has been doing to not only grow its business but also to grow the category as a whole.</li></ul>It is no secret that Indians love gold. In fact, gold accounts for a large part of most Indian family’s wealth. While for years, securing loans against jewellery was looked at as a last resort, the last few years, especially the pandemic, has brought about an attitudinal shift in Indian consumers. Gold loans have been on a consistent rise over the last few years and this growth is coming from both micro enterprises and individuals. The pandemic hit many businesses and while things have been slowly moving towards normalcy, a lot of sectors still remain impacted, and people are still trying to find the balance. In such a scenario, gold loan has come up as both a convenient as well as a quick option to get cash. Over the years, there has been a shift in perception when it comes to taking a loan out on gold jewellery and one brand that has been trying to help the segment grow by trying to fasten this change is Muthoot Finance. Over the last few years, the brand has consistently stayed in the public consciousness with its marketing strategies. <keyword id="6357912" type="General" weightage="20" keywordseo="amitabh-bachchan" source="Orion">Amitabh Bachchan</keyword> has been a face of the brand for four years now. It has also been the Principal Team Partner for Chennai Super Kings, having turned it into a trusted, household name. <div type="Youtube" id="WZl9-VYIErY" title="Muthoot Finance - Haathi Pe Bharosa Karogey Toh Pakka Jeetogey - 2.5 Lakh Customers" thumbUrl="https://i.ytimg.com/vi/WZl9-VYIErY/mqdefault.jpg"></div> <div type="Youtube" id="ZpFUp9_P4X8" title="Muthoot Finance- Haathi Pe Bharosa Karogey Toh Pakka Jeetogey!" thumbUrl="https://i.ytimg.com/vi/ZpFUp9_P4X8/mqdefault.jpg"></div> We recently caught up with Abhinav Iyer, GM, Marketing &amp; Strategy, Muthoot Finance to understand how the pandemic impacted the company’s business and the role the brand has been playing in not only educating consumers about the sector but also helping the sector grow. Muthoot Finance’s growth story While the pandemic was not kind to many sectors and businesses, Muthoot Finance was able to sustain its growth, Iyer tells us. The consolidated AUM has grown by nearly 80% in the last three financial years from 2017-18 to 2020-21. Its consolidated net profit has grown by 114% during the same period. In other words, it has more than doubled during the said period. “We have grown considerably when it comes to our book size in the last few years. This year too, we are looking at growing our book size by 15%. We have made similar growth in terms of percentages when it comes to our profitability too. We serve over 2.5 lakh customers every day through our network of over 5000 branches. Contrary to common perception that we are a South-based brand, we are today a national brand, and grown consistently over the last decade,” shared Iyer. The brand has also been on an expansion mode. Over the last 2-3 years, it has added over 200 branches across the country. “If stock prices are a testament, we have made a healthy northward stride. From every stretch of imagination, we have grown, in terms of our physical branch presence, our customer base and our profitability over the last two, three years. And our marketing strategies have contributed considerably to this healthy and sustained growth,” added Iyer. Creating a winning marketing strategy It is often said that during times of crises, marketing budgets are usually the first to get slashed. We saw a lot of brands that stopped communicating with its consumers during the pandemic. However, Muthoot Finance is one brand that does not believe in this. In fact, it believes in staying in the public consciousness, staying constantly engaged. It has a half-yearly marketing strategy where it comes up with a high decibel campaign every six months, a strategy that has worked well for it. The brand recently launched its campaign ‘Hathi pe bharosa karoge toh pakka jeetoge’, featuring Amitabh Bachchan. The brand also recently launched the second season of its radio campaign called Muthoot Finance Sunheri Soch. At a time when more and more brands are steadily increasing their spends on Digital, while decreasing spends on traditional mediums, Muthoot Finance is one brand that has been consistently using mediums like Print, Radio and Outdoor. Speaking about its latest radio campaign, Iyer said, “Storytelling is the oldest form of teaching’ and we also believe that radio has always been seen as a credible and authentic medium of communication, hence we chose it as our primary medium of communication to reach out to our target audience and new customers. We also wanted to have a female voice this season and bring freshness to the table, hence this year we are extremely delighted to partner with <keyword id="6355846" type="General" weightage="20" keywordseo="madhuri-dixit" source="Orion">Madhuri Dixit</keyword> for Season 2. We have extensively researched and customized our series to be launched via radio alongside strong amplification across all prominent digital channels. We recorded a significant increase in our new customer acquisition and queries post the launch of Season 1. Thus, we did not hold back ourselves in investing again in radio and celebrating the art of <keyword id="282281" type="General" weightage="20" keywordseo="storytelling" source="Orion">storytelling</keyword>." On why the brand continues to invest on traditional mediums while also investing on newer mediums like Digital, Iyer added, “We are a national brand with around 5440 branches across India. More than 70% of our branches are in semi-urban and rural areas. We have served nearly 70 crore customer (including repeat customers) since our inception. So from all those parameters, we are a large, spread-out, national brand. So its important that some of these mass mediums are always there as part of our media mix. It would never be possible for us to do away with any of the mass mediums because the reach from mass media is critical for us. Meanwhile, digital is also a very important cog in the wheel. In the last three years, our digital and our IT teams have been working tirelessly to ensure the technological upgradation of our products and services. We launched our Gold Loan at home offering during the pandemic. That was a huge value-add from a technology perspective. There was a time you had to visit a branch to repay your loan interest. Today, you can do that using any digital payment platform, our chatbot or our WhatsApp business account. So today, it is not compulsory for people to visit the branch physically for availing loans or paying their interest. We are also investing substantially on digital marketing. Atleast 10% of our marketing budget is invested into digital marketing.” He also added that TV still makes for the largest chunk, between 40-45% of its marketing budgets. On what it got right when it comes to its marketing strategy, Iyer said it was a combination of a few things. “In the last few years, we have been on a marketing transformation journey. Firstly, partnering with Mr Bachchan has helped us cut across geographies, gender and age groups. Secondly, we partnered with Chennai Super Kings in 2018 when they were just coming back after a short break. <keyword id="6354832" type="General" weightage="20" keywordseo="ms-dhoni" source="Orion">MS Dhoni</keyword> is also someone who enjoys almost the same stature that Mr Bachchan does in Bollywood. He’s a trustworthy, dependable and balanced individual. So our partnership with CSK helped us in the Tamil Nadu market where we have about 900-950 branches. We have also been using transit medium very effectively and The Greater Kailash metro station and the Nandanam station in Chennai have our branding and it has completely transformed the stations. We also came up with a unique initiative during the Kumbh mela when we created huge gold lockers to help devotees keep their valuables at a safe place. This campaign helped us win numerous awards. Lastly, over the years, we have created a culture of launching half-yearly campaigns, new communications to bring about an attitudinal change in the minds of people. We try to be present throughout the years on all major ATL and BTL mediums. I believe these strategies have helped us grow as we are also trying to grow the category.” Owing to its presence in smaller towns and cities, the brand also focuses a lot on regional communications. The brand puts out its communications in 11 languages to ensure its reach is far and wide. Future areas of focus In what the scope for the segment is in the future, Iyer said, “Overall there are around 25,000 tonnes of gold (household jewellery) in the country and less than 5% of it is monetized. So there’s a huge potential for growth, both for us and the industry as a whole. So the focus would be on getting new customers to try and opt for gold loans. Its also a very simple product, you only pay interest for the number of days for which you have availed the loan. There is a whole lot of customer benefits which can help people benefit from the product. So our primary objective, even from a marketing perspective would be to grow the category significantly and help the category prosper by itself. We will also constantly keep working on bringing about an attitudinal change in people through our marketing and communications,” concluded Iyer.

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