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India Gazette
2 days ago
- Business
- India Gazette
Gold loans have grown at CAGR of 20% in last 5 years: Report
New Delhi [India], July 1 (ANI): India's gold loan market has increased from USD 33 billion in FY19 to USD 83 billion in FY24, growing at a compound annual growth rate (CAGR) of 20 per cent, according to Praxis Global Alliance report. Gold loans have always been a popular way for Indians to borrow money. With a strong cultural link to gold, many families keep gold as part of their savings. Borrowing against gold is quick and easy, making it a preferred option for people from all income groups. The market includes both formal lenders like banks and non-banking financial companies (NBFCs), as well as informal moneylenders in villages and towns. One of the main reasons for the gold loan market's growth is the increasing trust in formal lending channels. Regulatory improvements have made borrowing safer and more transparent, encouraging people to choose banks and NBFCs over informal lenders. Government efforts to promote financial inclusion have also helped build confidence in formal lenders. Digital technology has played a big role in transforming the gold loan process. Start-ups and established companies are offering user-friendly digital services that let borrowers check loan eligibility, pledge gold, and receive funds online or even at home. Tools like eKYC, video verification, and biometric checks have made the process faster and more accessible, especially in urban and semi-urban areas. People's attitudes toward gold loans are also changing. Younger generations, including Gen-Z, now see gold not just as a family treasure but as a useful financial tool. They are more willing to use gold loans to meet short-term needs without feeling emotionally attached to the gold. Since gold can be easily reclaimed after repayment, many view gold loans as a smart and low-risk borrowing option. Lenders are also offering more flexibility, such as custom repayment plans, bullet payments, and different interest rate choices. This makes gold loans suitable for a wide range of borrowers with different financial needs. Southern India continues to dominate the gold loan market, holding 79 per cent of the total share. This is because of the region's long-standing habit of gold ownership and comfort with using gold as collateral. However, eastern and western parts of the country are now seen as the next areas of growth. Households in these regions also have a large amount of gold, but use it less often for loans. Lenders are now focusing on these areas to expand their reach. With growing formalization, digital access, and changing customer views, the gold loan sector is expected to keep expanding. It is set to become an even more important part of India's financial landscape in the coming years. (ANI)
Time of India
2 days ago
- Business
- Time of India
Gold loans have grown at CAGR of 20% in last 5 years: Report
New Delhi: India's gold loan market has increased from USD 33 billion in FY19 to USD 83 billion in FY24, growing at a compound annual growth rate ( CAGR ) of 20 per cent, according to Praxis Global Alliance report . Gold loans have always been a popular way for Indians to borrow money. With a strong cultural link to gold, many families keep gold as part of their savings. Borrowing against gold is quick and easy, making it a preferred option for people from all income groups. The market includes both formal lenders like banks and non-banking financial companies (NBFCs), as well as informal moneylenders in villages and towns. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Is It Possible to Get a Flatter Tummy After 50—And How? Lulutox Undo One of the main reasons for the gold loan market's growth is the increasing trust in formal lending channels . Regulatory improvements have made borrowing safer and more transparent, encouraging people to choose banks and NBFCs over informal lenders. Government efforts to promote financial inclusion have also helped build confidence in formal lenders. Digital technology has played a big role in transforming the gold loan process. Start-ups and established companies are offering user-friendly digital services that let borrowers check loan eligibility, pledge gold, and receive funds online or even at home. Live Events Tools like eKYC, video verification, and biometric checks have made the process faster and more accessible, especially in urban and semi-urban areas. People's attitudes toward gold loans are also changing. Younger generations, including Gen-Z, now see gold not just as a family treasure but as a useful financial tool. They are more willing to use gold loans to meet short-term needs without feeling emotionally attached to the gold. Since gold can be easily reclaimed after repayment, many view gold loans as a smart and low-risk borrowing option. Lenders are also offering more flexibility, such as custom repayment plans, bullet payments, and different interest rate choices. This makes gold loans suitable for a wide range of borrowers with different financial needs. Southern India continues to dominate the gold loan market, holding 79 per cent of the total share. This is because of the region's long-standing habit of gold ownership and comfort with using gold as collateral. However, eastern and western parts of the country are now seen as the next areas of growth. Households in these regions also have a large amount of gold, but use it less often for loans. Lenders are now focusing on these areas to expand their reach. With growing formalization, digital access, and changing customer views, the gold loan sector is expected to keep expanding. It is set to become an even more important part of India's financial landscape in the coming years.
Time of India
11-06-2025
- Automotive
- Time of India
EVs offer 15–20% cost advantage over diesel in logistics: Report
Electric vehicles used in India's logistics sector offer a 15–20 per cent lower total cost of ownership (TCO) compared to internal combustion engine (ICE) vehicles, according to a new report by management consultancy Praxis Global Alliance. The report titled Decoding the Economics of EV Fleets in Indian Logistics finds that this cost advantage is driving electric vehicle (EV) adoption, particularly in urban logistics and last-mile delivery. 'EV TCO is 15–20 per cent lower than ICE in 3W and small 4W fleets due to lower fuel and maintenance costs,' the report said. For electric three-wheelers used in logistics, the TCO is estimated between ₹2.5 and ₹3.1 per km, whereas diesel three-wheelers cost ₹3.5–₹4.2 per km to operate. In the case of four-wheelers, EVs incur a TCO of ₹7.5–₹9 per km, compared to ₹9.5–₹10.5 for diesel-powered vehicles. EV penetration in the e-commerce logistics segment stands at 14 per cent and is expected to rise to 35 per cent by 2027. According to the report, 'This is supported by economic parity achieved in multiple use cases and a favourable regulatory environment.' The study highlights that logistics EV adoption is highest in predictable, return-to-base applications with daily usage above 60–80 km, such as intra-city delivery and hyperlocal segments. However, the report notes that uptake remains limited in heavy commercial vehicles (HCVs) due to 'unfavourable TCO and payload constraints.' Electric HCVs are currently being piloted in mining and port logistics applications, but widespread adoption is not yet viable, the study adds. Battery-as-a-service (BaaS) and leasing are emerging models that improve affordability. BaaS can reduce monthly outflows for a 3W operator by up to 25 per cent. The model enables operators to switch to EVs with lower upfront investment. The study emphasises the role of fleet operators and logistics integrators in EV adoption. 'They enable route optimisation, bulk procurement, and charging downtime management,' it stated. Financing and charging infrastructure were identified as key constraints. 'Access to institutional financing is still limited for small fleet operators, and urban charging infra remains sparse in Tier II and III cities,' the report notes. Policy measures such as FAME-II subsidies, battery swapping draft guidelines, and state-level incentives have helped improve EV viability. The study recommends accelerating deployment of public charging networks and announcing a roadmap for zero-emission zones. India's logistics sector, currently valued at $250 billion, is expected to double by 2030. 'Integrating EVs across logistics use cases will be essential to decarbonise this growth,' the report said.
Time of India
11-06-2025
- Automotive
- Time of India
EVs offer 15–20% cost advantage over diesel in logistics: Report
New Delhi: Electric vehicles used in India's logistics sector offer a 15–20 per cent lower total cost of ownership (TCO) compared to internal combustion engine (ICE) vehicles, according to a new report by management consultancy Praxis Global Alliance. The report titled Decoding the Economics of EV Fleets in Indian Logistics finds that this cost advantage is driving electric vehicle (EV) adoption, particularly in urban logistics and last-mile delivery. 'EV TCO is 15–20 per cent lower than ICE in 3W and small 4W fleets due to lower fuel and maintenance costs,' the report said. For electric three-wheelers used in logistics, the TCO is estimated between ₹2.5 and ₹3.1 per km, whereas diesel three-wheelers cost ₹3.5–₹4.2 per km to operate. In the case of four-wheelers, EVs incur a TCO of ₹7.5–₹9 per km, compared to ₹9.5–₹10.5 for diesel-powered vehicles. EV penetration in the e-commerce logistics segment stands at 14 per cent and is expected to rise to 35 per cent by 2027. According to the report, 'This is supported by economic parity achieved in multiple use cases and a favourable regulatory environment.' The study highlights that logistics EV adoption is highest in predictable, return-to-base applications with daily usage above 60–80 km, such as intra-city delivery and hyperlocal segments. However, the report notes that uptake remains limited in heavy commercial vehicles (HCVs) due to 'unfavourable TCO and payload constraints.' Electric HCVs are currently being piloted in mining and port logistics applications, but widespread adoption is not yet viable, the study adds. Battery-as-a-service (BaaS) and leasing are emerging models that improve affordability. BaaS can reduce monthly outflows for a 3W operator by up to 25 per cent. The model enables operators to switch to EVs with lower upfront investment. The study emphasises the role of fleet operators and logistics integrators in EV adoption. 'They enable route optimisation, bulk procurement, and charging downtime management,' it stated. Financing and charging infrastructure were identified as key constraints. 'Access to institutional financing is still limited for small fleet operators, and urban charging infra remains sparse in Tier II and III cities,' the report notes. Policy measures such as FAME-II subsidies, battery swapping draft guidelines, and state-level incentives have helped improve EV viability. The study recommends accelerating deployment of public charging networks and announcing a roadmap for zero-emission zones. India's logistics sector, currently valued at $250 billion, is expected to double by 2030. 'Integrating EVs across logistics use cases will be essential to decarbonise this growth,' the report said.
