TruCap Finance Ltd aims to achieve Gold Loan AUM of Rs. 700 crore

TruCap Finance Ltd has announced the interaction of Mr. Rohanjeet Singh Juneja, Managing Director & Chief Executive Officer of the Company with media which will be published in due course of time in print/digital mode.

Listed RBI-registered non-banking finance company TruCap Finance is aiming to achieve a gold loan AUM (asset under management) of Rs 700 crore in the current financial year through expanding its business in tier 3 and tier 4 cities, which are largely underserved by the formal credit channels.

Rohan Juneja, CEO of TruCap Finance said that in the first half of FY24, the gold loan AUM has grown to Rs 500 crore as compared to Rs 200 crore in the same period of the previous fiscal. "During the Dhanteras-Diwali period, we have seen a year-on-year growth of 12 percent to 15 percent in our gold loan business."

He added " However, we have been somewhat cautious while lending against pledged gold given the rise in gold prices. Geopolitical tensions have led to higher gold prices which could potentially cause some volatility. Due to this, we are being cautious."

The loan size during this festive season has averaged around Rs 1.5 lakh, while the average size across the entire profile stands at Rs 1.2 lakh. "Generally, the Kirana traders, small businesses, and small traders have opted for the gold loan," added Juneja.

He said that nowadays more people are open to taking gold loans. "Earlier it was seen as a sort of social stigma. But not anymore. Moreover, it is easier to avail of a gold loan. So people are opting for it," Juneja added.

Source : Equity Bulls

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TruCapFinance GoldLoan AUM