TN stores most of its wealth as gold
Posted on: 29/Aug/2017 12:42:24 PM
A major portion of the wealth of households in Tamil Nadu are stored in the form of gold. Out of their total debt, about 40 percent are in the form of gold loan, as discovered by the Reserve Bank of Indias panel.
A recent report from the Household Financial Committee has stated details about the wealth allocation for different categories of wealth which are as follows:
- Real estate 59.4 percent
- Gold 28.3 percent
- Financial assets like bank deposits 3.1 percent
- Retirement accounts 3.2 percent
This panel that drafted the report includes RBI members, members of Securities and Exchange Board of India, Insurance Regulatory and Development Authority, and Pension Fund Regulatory and Development Authority. The panel was headed by Tarun Ramadorai of Imperial College London.
Coming on to debts, gold is the preferred loan option for Tamil Nadu households. This accounts to about 41.3 percent out of the total debt. This is followed by the other non-institutional debts such as loans from money lenders, friends, family, etc. This accounts to 42.1 percent, and unsecured debt for 37.9 percent, and mortgage loan of 11.3 percent.
Considering households in Tamil Nadu, there is comparatively large amounts of gold, and Andhra Pradesh follows next.
