NBFCs, Gold Loans, and Financial Inclusion in India: A Case Study of
Muthoot Finance

Samarth Vir Singh

doi:10.46609/IJSSER.2025.v10i02.021

Title: NBFCs, Gold Loans, and Financial Inclusion in India: A Case Study of Muthoot Finance
Authors: Samarth Vir Singh
Journal: International Journal of Social Science and Economic Research (IJSSER) ISSN: 2455-8834 Volume: 10 Issue: 2 Publication Date: February 2025 DOI: 10.46609/IJSSER.2025.v10i02.021
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Samarth Vir Singh Canadian International School
MLA 8 Singh, Samarth Vir. "NBFCs, Gold Loans, and Financial Inclusion in India: A Case Study of Muthoot Finance." Int. j. of Social Science and Economic Research, vol. 10, no. 2, Feb. 2025, pp. 799-806, doi.org/10.46609/IJSSER.2025.v10i02.021. Accessed Feb. 2025. APA 6 Singh, S. (2025, February). NBFCs, Gold Loans, and Financial Inclusion in India: A Case Study of Muthoot Finance. Int. j. of Social Science and Economic Research, 10(2), 799-806. Retrieved from https://doi.org/10.46609/IJSSER.2025.v10i02.021 Chicago Singh, Samarth Vir. "NBFCs, Gold Loans, and Financial Inclusion in India: A Case Study of Muthoot Finance." Int. j. of Social Science and Economic Research 10, no. 2 (February 2025), 799-806. Accessed February, 2025. https://doi.org/10.46609/IJSSER.2025.v10i02.021.
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ABSTRACT: This paper examines the critical role of Non-Banking Financial Companies (NBFCs) in promoting financial inclusion in India, with a focus on Muthoot Finance's gold loan services. By analyzing publicly available data and recent trends, the study highlights how NBFCs address the credit needs of underserved populations, particularly in rural and semi-urban areas. The advantages of gold loans, such as quick disbursal, minimal documentation, and competitive interest rates, are explored alongside challenges like over-reliance on gold as collateral. The paper provides comparative insights between NBFCs and traditional banks, showcasing how advancements in digital banking have bolstered financial inclusion. Policy recommendations include streamlined regulations, alternative data usage, and targeted financial products to enhance the reach and efficacy of NBFCs. This study aims to contribute to the understanding of NBFCs' potential in bridging financial gaps and advancing inclusive economic growth in India.

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