Role of nbfc gold loan on the socio-economic position of its customers in koothattukulam municipality

A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 1956 engaged mainly in the business of loans and advances. India is home to over 200 small and large NBFC (Non-banking Financial Companies). The gold loan NBFCs offering loans against gold collaterals in India is on the rise. These NBFCs will keep customers’ jewelry or gold chips as collateral and led them money at interest rates that are slightly below those of conventional banks. The present study tries to assess the role of NBFC gold loan on the socio-economic position of its customers in Koothattukulam Municipality. The study observes that the non-banking finance companies play a good role in the study area by increasing the access of the customers, serves the rural customers and creates employment opportunity.