Southern States Dominate India's Gold Loans with 80% Share

Many people in India borrow money from banks by giving their gold jewellery as a guarantee.

If they cannot pay back, the bank keeps the gold.

A new government report shows that people in five southern states—Tamil Nadu, Andhra Pradesh, Karnataka, Telangana and Kerala—borrow the most money this way.

Together, they are responsible for more than 80% of all gold loans taken from public sector banks.

The total amount of gold loans in these banks is more than 11 lakh crore rupees.

Tamil Nadu has the highest amount of gold loans.

The reason loans are growing fast is that gold prices have gone up, so the gold is worth more.

The report also says that fewer people are failing to repay their gold loans now than before.

The central bank, RBI, has made rules to protect borrowers, like telling them before selling their gold and giving back any extra money.

Gold loans help people who do not have bank accounts get credit in a safe way.