Archive · 4 Sep 2025
Gold Lenders Seek Self-Regulatory Status, Priority Sector Tag
Gold loan companies in India want to be in charge of their own rules and be recognized as a special type of loan, like a priority sector loan.
They want to be a Self-Regulatory Organization (SRO) to set standards.
These companies believe that gold loans are different from other loans because they are backed by gold and are often used by people in rural and semi-urban areas.
The companies want special status to make it easier for people to get loans at lower rates and more affordable.
The RBI recently made new rules to help these borrowers by making it easier to get small loans.
Gold loan industry lobby seeks self-regulatory organization (SRO) status from RBI.
The Association of Gold Loan Companies (AGLOC) plans to start the SRO process.
AGLOC also seeks special status for gold loans, akin to priority sector loans.
The NBFC gold loan financiers account for around ₹3 trillion worth of cumulative assets.
Revised RBI norms in June 2025 aim to improve credit access, especially for rural borrowers.
- Who
- The Association of Gold Loan Companies (AGLOC) and gold loan financiers
- What
- Are seeking self-regulatory organization (SRO) status and special status for gold loans.
- When
- The association plans to approach the regulator "as soon as possible."
- Where
- India.
- Why
- To obtain separate treatment and expand credit access for borrowers.
- Organization Seeking SRO Status
- Association of Gold Loan Companies (AGLOC)
- AGLOC's Goal
- To promote and safeguard the interests of gold loan companies
- Cumulative Assets of NBFC Gold Loan Financiers
- Around ₹3 trillion
- Revised RBI Norms Issued
- June 2025
- RBI Norms' Goal
- To improve access to formal credit for rural and semi-urban borrowers