Manna, Pure & Simple
Sucheta Dalal 25 Feb 2010

According to the World Gold Council’s data, the total value of gold with Indians is roughly 60% of total bank deposits. It is no wonder then that gold schemes offered by a company that spells safety and security have an incredible following. One such story is that of the Rs3,000-crore, Kerala-based, Manappuram group which offers gold loans. While the Tanishq model offers women a chance to save up to buy a coveted piece of jewellery, Manappuram offers a loan against pledge of gold, with the promise of quick, hassle-free repayment. Unlike the red tape surrounding loans against property, borrowing against gold is apparently hassle-free and cleared in five minutes. The KYC (‘know your customer’) requirement is minimal (unlike for other financial instruments) and, although Manappuram operates in 15 states with 950 branches, it is best known in the south or community pockets in other states. The same goes for Muthoot Finance which also enjoys a spanking growth rate. In fact, their success has got leading commercial banks sniffing at the business opportunity of lending against jewellery.