/images/ppid_59c68470-image-176897502571138023.webp)
/images/ppid_59c68470-image-176897259685546048.webp)
/images/ppid_59c68470-image-176897256175614956.webp)
/images/ppid_59c68470-image-176897258437691029.webp)
What is the story about?
Suryoday Small Finance Bank (SSFB) on Tuesday said it has entered the gold loan segment as part of its plan to expand secured lending. The bank has started offering the product in Maharashtra and intends to extend it to other states in phases.
The bank said the move aims to increase the share of collateral-backed loans in its portfolio and diversify its asset mix. Until now, SSFB has largely focused on unsecured business lending, particularly to small enterprises and women entrepreneurs. According to the bank, demand from existing customers for secured credit options has increased as their funding needs have grown.
SSFB plans to use its network of more than 700 banking outlets across over 15 states to scale the gold loan business. The bank also said it will rely on its existing distribution and underwriting processes while expanding the offering.
Baskar Babu Ramachandran, Managing Director and Chief Executive Officer, said the bank views gold loans as a secured lending product that can support portfolio diversification. He added that the rollout will begin in Maharashtra before expanding nationally.
Under the offering, SSFB will provide gold loans of up to ₹30 lakh with a standard tenure of 12 months. The bank said customers can choose between monthly interest payments with principal repayment at maturity or a bullet repayment of both principal and interest at the end of the tenure. The product does not carry pre-closure charges and allows renewal against the same pledged gold after repayment.
The bank said the gold loan market in India remains underpenetrated and has shown steady growth, making it a segment of interest for lenders seeking secured assets.
Suryoday Small Finance Bank began operations as a small finance bank in January 2017, following its earlier presence as a non-banking financial company. It operates across multiple states and union territories and is listed on the NSE and BSE.
The bank said the move aims to increase the share of collateral-backed loans in its portfolio and diversify its asset mix. Until now, SSFB has largely focused on unsecured business lending, particularly to small enterprises and women entrepreneurs. According to the bank, demand from existing customers for secured credit options has increased as their funding needs have grown.
SSFB plans to use its network of more than 700 banking outlets across over 15 states to scale the gold loan business. The bank also said it will rely on its existing distribution and underwriting processes while expanding the offering.
Baskar Babu Ramachandran, Managing Director and Chief Executive Officer, said the bank views gold loans as a secured lending product that can support portfolio diversification. He added that the rollout will begin in Maharashtra before expanding nationally.
Under the offering, SSFB will provide gold loans of up to ₹30 lakh with a standard tenure of 12 months. The bank said customers can choose between monthly interest payments with principal repayment at maturity or a bullet repayment of both principal and interest at the end of the tenure. The product does not carry pre-closure charges and allows renewal against the same pledged gold after repayment.
The bank said the gold loan market in India remains underpenetrated and has shown steady growth, making it a segment of interest for lenders seeking secured assets.
Suryoday Small Finance Bank began operations as a small finance bank in January 2017, following its earlier presence as a non-banking financial company. It operates across multiple states and union territories and is listed on the NSE and BSE.
/images/ppid_a911dc6a-image-17689735274494287.webp)
/images/ppid_a911dc6a-image-176897358555146525.webp)
/images/ppid_a911dc6a-image-176897283322951552.webp)
