Gold Loan Market in India: Finding New Opportunities Through Search Trends

The gold loan industry in India is currently experiencing a growth spurt. While the number of searches for gold loans in India has increased by 11.64% for FY’23, the amount of gold loans that have been disbursed has also increased. For loan providers, these numbers are very telling and can help them connect with customers, at scale.

According to a leading publication, the portfolio of bank loans secured against gold jewelry experienced a significant growth of 16.2% year-on-year as of January 2023. This growth can be attributed to the banks' competitive interest rates on these loans, which have become more attractive than those offered by non-banking finance companies (NBFCs).

Moreover, Bajaj Finserv states that in 2022 the Indian gold loan market was valued at approximately USD 55.52 billion. Projections indicate a growth trajectory at a compound annual growth rate (CAGR) of 12.22% from 2023 to 2029, with predictions that the market size will expand to USD 124.45 billion by the end of 2029.

On the other hand, a report by Techmagnate, a leading digital marketing agency in New Delhi, provides an overview of the user search behavior related to gold loans in India. One of the most important takeaways from the report is that searches for gold loans have seen a marked increase in FY’23.

The data in these reports also corroborates the growing searches for gold loans in India and the evolution of customer behavior is visible from both aspects. People in India are open to loans against gold as collateral to fulfill their growing aspirations and needs.

This means providers and lending institutions in India have an opportunity to tap into the gold loan search trends market and strengthen their digital marketing efforts to hasten their growth. The key here, of course, is to enable their growth with great responsibility.

Gold Loan Search Trends In India:The State of the Landscape

According to the research conducted by Techmagnate, search volumes for gold loans have increased by 11.64%, going from 9.55L in FY’22 to 10.66L in FY'23.

Additionally, in the list of the Top 10 keywords, ‘gold loan interest rate’ and ‘gold loan calculator’ have dominated the industry’s search trends, with a year-on-year search volume growth of 22.22% and 22.30% respectively.

Coming Out Ahead: The Top 5 Brands for Gold Loans by Search Volume

Within the gold loan industry, well-known brands like IIFL Finance, Muthoot Finance, SBI, BoB, and Indian Overseas Bank are showing up with the highest search volumes. Here’s a quick look into their performance for FY’22-23.

IIFL Finance

With a search volume of 175.64K in FY’23 and a market share of 27.88%, IIFL Finance holds the top position. Despite a minimal growth of 0.52% from the previous year, it still commands the largest share of searches.

Muthoot Finance

Ranked second with a search volume of 90.83K in FY’23 and a market share of 14.42%, Muthoot Finance saw a 6.10% growth in search volume.

State Bank of India

The State Bank of India ranked third, with a search volume of 56.58K in FY’23 and a market share of 8.98%. It experienced a growth of 7.67% in search volume, indicating a growing consumer interest in its gold loan offerings.

Bank of Baroda

Bank of Baroda stands fourth, with a search volume of 54.63K and a market share of 8.67% in FY’23. It saw an impressive growth of 34.06% in search volume.

Indian Overseas Bank

In the fifth position, Indian Overseas Bank had a search volume of 41.71K and a market share of 6.62% in FY’23. The search volume growth for this bank was 29.25%.

Highlighting the importance of the newly released report, Sarvesh Bagla, CEO and founder of Techmagnate, commented“Our extensive analysis of over 1400 keywords related to Gold Loan searches reveals the evolving nature of customer behavior. Brands that leverage these insights to adapt and enhance their digital presence are the ones that will benefit the most from our report’s data.”

Download the report to see the full list of brands.

Gold Loans Marketing Ideas: Leveraging the Insights for Growth

The insights shared in this report indicate a strong window of opportunity that brands can capitalize on for their growth. For instance, the list of the Top 10 Keywords is extremely useful for shaping a digital marketing strategy. Moreover, the insights related to local and vernacular searches can also help brands fine-tune their targeting and messaging.

Here are 3 strategies for brands to employ to begin leveraging these insights.

Leverage Opportunities within Local Searches

Many customers search for gold loan services locally, such as, 'muthoot gold loan near me', 'gold loan near me', etc. However, the searches from non-brand keywords are also increasing steadily; they’ve grown by 21.65% in FY’23.

Ignoring local listings or a fully optimized Google My Business profile is not a feasible option for loan providers. They must ensure local visibility to pull in the right traffic and customers.

Vernacular Search

According to gold loan search insights from Techmagnate’s report, non-branded vernacular searches have shown a rapid upward trajectory with a whopping 96.51% market share.

A strong opportunity exists for gold loan providers to understand these searches and create content that answers genuine customer queries in regional Indian languages.

A similar surge in vernacular languages is seen in Personal Loan Search Trends, making up 95.23% market share for non-branded keywords.

Capitalize on Mobile App Development and Marketing

Gold loan mobile apps have also shown an interesting search trend. While non-branded keywords show a growth of 1.23% with a market share of 15.41%, branded keywords have captured the bulk of the market share with a staggering 84.59%.

This presents unique app-marketing opportunities for lending institutions to optimize for branded keywords so they can start performing well on the App and Play stores. Gold loan lenders can build a strong presence by leveraging targeted keywords and optimizing app content for brand-specific search terms, which will ensure visibility, competitiveness, and even relevance.

Data-Driven Insights to Enable Growth

The Gold Loan Search Trends report shows a growing consumer interest in online gold loan services, giving banks and NBFCs a unique opportunity to harness any untapped potential.

The data indicates an evolving gold loan market in India that brands can leverage by focusing on multiple avenues, including vernacular content, mobile apps, and local SEO for increased customer reach.

Loan providers need to work with a top digital marketing agency like Techmagnate to fine-tune their SEO strategies and enhance their online presence because that will be the best way to connect with their customers.

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