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Gold Loan Demand Surges As Bullion Prices Rise
Borrowers increasingly pledge jewellery as higher gold valuations improve collateral capacity and provide short term liquidity access.
Elevated gold prices have triggered a surge in gold loan demand across India. Higher valuations enable borrowers to unlock greater liquidity against the same jewellery assets. Financial institutions report rising enquiries from households and small businesses managing temporary cash flow gaps. Experts advise maintaining prudent loan-to-value ratios, as sudden price corrections could increase repayment pressure or force partial collateral liquidation during volatile phases.