Banks also started processing gold loans faster. It may not be done for all gold loans. But they have improved a lot in recent years. You can check the websites of leading banks as well. They have also started processing in few hours.
Regarding the target customers, as per the last quarterly report from manappuram finance, they are struggling to retain their high value customers. In past before few quarters, they have provided teaser loans to retain them. With rising interest rates and increase in cost of borrowing, they have stopped that and you could see the number of customers declining gradually.
Moats of gold loan finance companies are slowly eroding. They have high cost of borrowing when compared to banks, banks can provide more amount for the same amount of gold(LTV for banks is around 80% I guess) and banks have also started processing gold loans through online and reduced the processing times.
Again, only in the coming quarters we will know how they are going to perform. Manappuram is at better valuation and diversified when compared to Muthoot finance. In last conf call as well, they mentioned demand in rural areas have not picked up fully. We need to wait and watch.
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