Kerala NBFC Holds 381 Tons Of Gold, Higher Than Many European Countries

Hyderabad, Nov 11 (Maxim News) : How much gold does each family have? For the common man, it is in pounds.  For the rich, it is in kilograms.  The gold held by our non-banking financial companies (NBFCs) in Kerala holds 381 tons.  If all these companies were a country, it would not be surprising that this country would be 16th in the world in terms of reserves.  These reserves are higher than many European countries.  

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As part of foreign exchange assets, Central banks around the world like the Reserve bank of india (RBI) buy tons of gold and hold it.

However, India ranks 7th globally in terms of the size of gold reserves held by central banks.  As of September 2025, the RBI had 880.18 tonnes of gold.  The gold pledged by customers with non-banking financial companies from Kerala reached 381 tonnes.  This is 43.28 percent of the gold accumulated with the RBI.  India has become the largest consumer of gold in the world.  Reports say that Indians have over 25,000 tonnes of gold.  It is estimated that 2,950-3,350 tonnes of gold is stored in the treasury asd collateral in the domestic loan market.  

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Big countries lagging behind, they would have competed head-to-head with Portugal.  Portugal is at 15th place with 382.66 tonnes.  Moreover, kerala NBFCs have surpassed the official reserves of many European countries.  Looking at these gold loan companies, Muthoot Finance continues to be unchallenged with reserves of 208 tonnes.  Kerala State Financial Enterprises (KSFE) has 67.22 tonnes, Manappuram Finance 56.4, MuthootFincorp 43.69, and Indel Money has about 6 tonnes of gold.  The total reserves held by these companies have crossed 381 tonnes.  However, the UK has 310.29 tonnes, Spain 281.58, and Austria 279.99 tonnes, Brazil, Australia and South Africa also lag behind Kerala NBFCs.  

Gold is not a means of saving but a symbol of status.  It is a helping hand in times of need.  That is why the gold loan business in India has become economically powerful for decades.  In tertiary and post-tier cities, small towns and villages, gold loans are the first priority for immediate needs.  Business, children’s education fees, household needs, emergencies.  Whatever the reasons, the firt thing that comes to mind is the gold in the house.  The price of 24 carat gold has crossed Rs. 1.24 lakhs for 10 grams.

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With copper becoming more expensive, gold has become more attractive.  The availability of rupees per gram has increased.  More gold is coming into the market as people are pledging their jewellery.  The liquidity crunch is forcing borrowers to turn to gold-backed credit.  Companies are taking Aadhaar cards from customers and disbursing loans within minutes.

The rise of gold price has been a boon for the Indian market, especially for the lower income groups.  Due to restrictions on unsecured loans, it is not easy to get loans from banks.  But gold loans are filling that gap.  Organized institutions account for 37% of gold loans in India.  The remaining 63 % is taken up by the unregulated unorganized sector like small financiers and local moneylenders.  However, if the loan is not repaid, the companies auction the gold pledged by the customers after a specified period.  The share of gold auctioned out of the pledged amount was earlier 2.5%.  Now it has come down to one percent. (Maxim News)  

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