Very interesting field visit report (Hyderabad and Vizag) from Motilal about competition among gold loan NBFCs, I have attached the relevant excerpts at the end.
Summary: Competition is intense between Manappuram, Muthoot and IIFL. Each company is trying to poach high value customers by offering very low teaser rate loans (0.6% monthly interest) which are applicable if one pays monthly EMI. Apparently, 75-80% of customers who take these teaser loans end up not paying monthly interest and are moved to a higher interest rate slab. There is lot of flip flop happening where companies are changing the terms and conditions of these teaser rates abruptly resulting in very high balance transfer for high ticket sizes. Basically, these high ticket customers do not have any stickiness and have a plethora of options to avail loans.
Disclosure: Invested (position size here, no transaction in last 1-month)