Determinants of Customer Preference Towards Gold Loans as a Source of Credit in Goa An Empirical Study

Priyanka Da Silva

doi:10.36948/ijfmr.2026.v08i04.85227

Determinants of Customer Preference Towards Gold Loans as a Source of Credit in Goa An Empirical Study

Author(s)	Ms. Priyanka Da Silva
Country	India
Abstract	Gold loans have emerged as one of the most preferred secured credit products in India owing to their quick processing, minimal documentation, and flexible repayment options. The increasing demand for gold loans has encouraged banks, Non-Banking Financial Companies (NBFCs), and cooperative institutions to strengthen their gold loan portfolios. Despite the rapid growth of the gold loan market, empirical evidence regarding customer preference and satisfaction, particularly in the state of Goa, remains limited. This study investigates the determinants influencing customers' preference towards gold loans as a source of credit in Goa. The study employs a descriptive and analytical research design using primary data collected from 139 gold loan borrowers through a structured questionnaire. Convenience sampling was adopted to collect responses from customers across Goa. Statistical tools including percentage analysis, cross-tabulation, Pearson correlation, and multiple regression analysis were employed to analyse the collected data and test the proposed hypotheses. The findings reveal that trust and security, competitive interest rates, processing speed, transparency in loan procedures, and ease of documentation significantly influence customers' preference for gold loans. The majority of respondents preferred banks over NBFCs owing to higher levels of confidence regarding the safety of pledged gold. Personal financial requirements and business needs were identified as the primary reasons for availing gold loans. Most borrowers expressed satisfaction with the accessibility and convenience of gold loan services, although respondents suggested improvements in interest rates and communication regarding loan terms. The study contributes to the existing literature by providing empirical evidence from Goa, a region where limited research has been conducted on gold loan preferences. The findings offer valuable implications for banks, NBFCs, policymakers, and financial institutions in designing customer-centric gold loan products and improving service quality. Future research may expand the geographical scope and incorporate behavioural and technological determinants influencing customers' borrowing decisions.
Keywords	Gold Loans, Customer Preference, Customer Satisfaction, Banks, NBFCs, Credit Services, Goa, Financial Institutions
Published In	Volume 8, Issue 4, July-August 2026
Published On	2026-08-06
DOI	https://doi.org/10.36948/ijfmr.2026.v08i04.85227

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Determinants of Customer Preference Towards Gold Loans as a Source of Credit in Goa An Empirical Study

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