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Gold loans surge as small borrowers shun MFIs: 122% jump in June, shows RBI data; soaring prices, lower rates fuel shift

Lower-income borrowers with limited income are increasingly turning to gold loans instead of microfinance institutions (MFIs) to meet urgent financial needs. Rising gold prices, lower gold-loan interest rates and stricter MFI lending norms are driving the trend. RBI data show gold-backed loans jumped 122 per cent year-on-year until June, while the Microfinance Industry Network reported…

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