Modernising Gold Lending For Rural India: Inside Swapnil Ghans Mission To Turn Heritage Into Financial Empowerment

In India, gold is not just a commodity—it’s a emotion, cultural cornerstone, a symbol of security, and a store of intergenerational wealth. It’s something that’s bought not merely for investment, but passed down as heirloom, embedded with memories and meaning. Yet when times are tough, that same gold can become the last resort for liquidity—an emotional decision cloaked as a financial one.

 

In this context, Swapnil Ghan Co-founder at Sudhan Gold Loan brand of Equifintech Private Limited have built something extraordinary: a fintech platform rooted in empathy, driven by efficiency, and designed to help rural communities unlock the value of their gold without losing the heart behind it. Their unique model partners with India’s widespread but often underutilised credit cooperative societies—organisations akin to credit unions in the West—to bring structured, regulated, and affordable gold-backed lending to the parts of the country that have been traditionally underserved.

 

Recently recognised as the winner of “Best Gold-Backed Lending India 2025,” Swapnil’s journey is a case study in how technology and cultural understanding can converge to create a better kind of finance.

 

Brett

It’s really fascinating to speak with you, Swapnil. I’ve always thought that gold holds a unique place in Indian society—it’s not just a store of value, it’s part of the culture, part of people’s history. And it’s that emotional connection, I imagine, that makes the business of gold lending so compelling. What you’ve done is take something incredibly traditional and find a way to modernise it. How did that start?

 

Swapnil

You’re absolutely right. Gold holds a very special place in the Indian household—not just financially but emotionally. And that was a huge consideration when we started our journey. We began operations in a village called Kopargaon, which is around 10 kilometres from Shirdi and about 300 kilometres from Mumbai. It’s a rural area, and we deliberately chose to start there because we saw a huge gap in how financial services were reaching the rural population.

 

We looked at the role of credit cooperative societies—what you’d call credit unions in the West. In Maharashtra, these societies are well established. They’re embedded in local communities, they enjoy a high degree of trust, and they operate across rural India. Yet despite their reach, they weren’t offering gold loans in any significant way. So we asked ourselves: why?

 

The reality is, although the societies had the reach, they didn’t have the structure. They lacked the systems, the product design, and the technology to deliver gold loans efficiently and securely. So we approached the problem from three angles: first, we standardised the lending process; second, we designed products tailored to rural customer needs; and third, we built a tech stack that automated risk assessment, disbursement, and compliance.

 

We launched officially in December 2020. In our first year, we managed assets of ₹100 crore. The second year, we hit ₹500 crore. As of now, we’re at ₹850 crore in assets under management, and we’ve disbursed more than ₹3,000 crore in loans through our partner network across Six states and over 240 branches. And what’s critical here is the cost of borrowing—we keep our average interest rate below 14%. When you compare that with NBFCs in India who charge 22% or more for gold loans, that’s a huge difference.

 

We estimate we’ve saved rural customers around ₹240 crore in interest payments. That’s the kind of impact we wanted to make from day one.

 

Brett

That’s an incredible number—and it really reinforces how something that sounds quite simple on the surface can become a transformative financial tool if done right.

 

Swapnil

Exactly. And it wasn’t about taking advantage of a market inefficiency—it was about identifying systemic gaps and addressing them properly. From the very beginning, we spent time with the customers themselves. We asked why they weren’t going to their local credit societies for gold loans, even though they had the gold and the need.

 

What we found was deeply rooted in emotion. Most people in rural India don’t buy gold as an investment. They inherit it—from their parents, grandparents. It’s a family asset. So when someone comes forward for a gold loan, it’s usually during a difficult time. This is their last resort. That means there’s enormous emotional weight behind that transaction.

 

We made a conscious decision to respect that. In fact, we trained our entire team with a core philosophy: you’re not lending against gold, you’re lending against trust, against emotions. We’re not here to profit from auctions or to sell off gold. We’re here to support people during times of need and ensure they get their asset back once they’re back on their feet.

 

Brett

That must be incredibly hard to balance—the emotional context with the commercial needs of the business.

 

Swapnil

It is. But it’s essential. We’ve created a culture internally where everyone understands that responsibility. We don’t call ourselves moneylenders or pawnbrokers. We’re not in the business of accumulating gold. Our job is to keep our operations sustainable by charging a reasonable interest, ensure timely repayment, and return the gold in good condition to the customer who entrusted it to us.

 

Right now, we’re holding nearly a tonne of gold in custody. That’s not ours—that’s the trust of thousands of people. And our banking and credit society partners, like Samata Patsanstha, Godavari Urban Multi-State, Shri Rangnath Swami Patsanstha, Maheshwar Multistate and many more Cooperative Societies, have been incredibly supportive. They share our values and our commitment to responsible lending.

Brett

And gold, of course, has become such a strong asset class. In many ways, it’s better than property.

 

Swapnil

Absolutely. Gold is liquid, easily stored, and universally valued. And when we looked into it further, we found that Indian households collectively hold an estimated 27,000 tonnes of gold. That’s just household gold—not including temple reserves or commercial holdings. That’s an incredible reservoir of capital, lying dormant.

 

Our goal has always been to unlock that capital responsibly. So when a customer brings us their gold, we test it using traditional methods. We employ trained valuers with deep experience. They rub the ornament on a test stone, apply acid and salt solution to assess purity, and in rare cases, they make a small cut to verify authenticity.

 

Brett

And I guess that surprises people sometimes—they don’t always know what they have, right?

 

Swapnil

Yes, exactly. People often assume their jewellery is of high purity because it’s been in the family for decades. But that’s not always the case. That’s why accurate testing is so important—not just for us as lenders, but for the customer to understand what they truly own.

 

Once that process is done, and we complete the KYC using Aadhaar-based verification, the entire process takes about 14 minutes. The loan amount is transferred directly to the customer’s bank account. If they don’t have one, we help them open one with the credit society during the same onboarding process. One KYC—multiple services. It’s fast, it’s efficient, and it gives people dignity.

 

Brett

That’s brilliant. What are the loan terms usually?

 

Swapnil

We offer short-term loans—minimum six months, maximum twelve. We don’t charge penalties for early repayment. If someone wants to clear their loan after a month or so, that’s absolutely free, no fine. Our goal is to make the repayment journey as stress-free as possible.

 

What’s interesting is that more than 50% of our customers do roll over their loan once or twice, but by the third term, most settle the principal. It’s a natural financial cycle for them—borrow, pay interest, recover the gold when things improve.

 

Brett

And if someone can’t pay? Do you sell the gold?

 

Swapnil

Only in rare cases. Last year, the total gold we had to auction was just 0.001% of the overall holding. That’s minuscule. Our team works very hard to avoid that scenario. We encourage customers—just pay the interest if you can’t pay the full principal. For example, on a ₹1 lakh loan over six months, the interest would be around ₹8,000. That’s something most people can manage.

 

If we do have to auction gold, we only finance up to 85% of its assessed value to create a margin of safety. And if the auction brings in more than the outstanding amount, the excess is returned to the customer’s savings account. Always. That’s a principle we’ve followed since day one.

 

Brett

That’s the kind of transparency the industry needs. And I suppose with gold prices rising, even the worst-case scenario isn’t as bad as it might seem.

 

Swapnil

Correct. Gold prices have been climbing, which works in the customer’s favour. But again, our entire approach is built around avoiding auctions. We see it as a failure if we have to go down that road. Our philosophy is centred on protecting the trust our customers place in us.

 

Brett

And given everything going on globally—rising interest rates, cost of living pressures—I imagine demand has only increased?

 

Swapnil

Yes, very much so. We feel we’ve been at the right place at the right time. Over the last three years, the organised gold loan market in India has grown to ₹7 lakh crore. And that’s just the organised sector. According to a reputed chartered accountancy firm, that’s only about 35% of the total gold loan market in the country. The unorganised market is enormous.

 

That’s why it’s so important for us to offer a legitimate, regulated, customer-friendly alternative. We don’t want people falling into the black market, where lenders charge 3% interest per month—36% annually. That’s exploitative. That’s what we want to eliminate.

 

Brett

And where do you see yourself in the broader market landscape?

 

Swapnil

We’re not claiming to be the largest—that title belongs to big players like Muthoot Finance and Manappuram Finance. They’ve disbursed over ₹1 lakh crore in loans. But they operate as NBFCs.

 

We are different. We are a fintech company working directly with credit cooperative societies. We are the first to do this at scale. No one else is really operating in this hybrid model—leveraging fintech infrastructure with cooperative networks to deliver gold loans at grassroots level. That’s our niche, and we’re proud of it.

 

Brett

It’s such a compelling model. I had a similar conversation with someone in insurance recently—another industry that sounds dull on the surface, but actually touches lives in profound ways. What you’re doing here is preventing people from being pulled into dangerous lending situations, while helping them get through difficult periods without losing something precious.

 

Swapnil

Exactly. That’s why we’re so particular about training our staff, hiring them directly, and paying them fair salaries. Everyone who sources customers for us is a full-time employee—not an agent or commission-based salesperson. That gives us quality control and also helps create stable jobs in rural areas. It’s good for the business and good for the community.

 

Brett

And how do people find you—through the credit societies?

 

Swapnil

Yes. Our marketing is a mix of local outreach—pamphlets, newspaper ads, community events—and digital campaigns. But the key driver is our partnership with over 250 credit society branches. These societies are already well-integrated in the community. We simply help them expand their services.

 

When a customer walks into a branch, we have a trained valuer on site. The valuation happens there, the details are fed into our software through mobile input, and we fetch KYC data instantly via Aadhaar authentication. Within minutes, the money is in their account.

 

Brett

And if they don’t have a bank account?

 

Swapnil

No problem. As part of our onboarding flow, we auto-generate a savings account with the society for them—instantly, no extra paperwork. One KYC unlocks multiple services. It’s something we’ve streamlined specifically to serve customers who may be financially excluded otherwise.

 

Brett

It’s an incredible amount of work you’ve put in—and clearly, it’s paying off. Thank you so much for such an insightful and detailed conversation.

 

Swapnil

Thank you, Brett. It’s been a pleasure. We’re very committed to what we’re doing, and we believe it’s just the beginning. There’s so much more to be done.

Brett Hurll, Executive Editor at Global Financial Market Review, draws on over 35 years of international experience across technology and finance sectors, providing readers with sharp analysis and unique perspectives on emerging trends, market shifts, and the complex interplay between global business and political dynamics. His extensive background and senior leadership role position him as a trusted voice on financial markets and economic developments.  If you have an interesting editorial reach out to our team at editoral@gfmreview.com