Have gold loans interest rates fallen sharply in the Indian markets?

It is right that gold loans are getting cheaper, but that is purely due to tightening competition in the gold loan market. NBFCs like Muthoot and Manappuram have grabbed a chunk of the growth in gold loan business and now banks are trying to make up for lost time. Due to this stiff competition and lower cost of funds, the median gold loan cost has fallen from 18% to around 14%, although it would still vary on a regional basis.