Gold Loan

The regulatory framework effective April 2026 has created the foundation for mitigating risks in gold loans but more needs to be done

Bajaj Finance and Piramal Finance flag early signs of stress in gold loans as rapid lending growth raises concerns over repayment delays, borrower leverage and defaults

Indian banks ​and non-bank lenders have rushed to lend to consumers against their ​gold holdings as they consider these loans more secure

Gold loan securitisation and a recovery in vehicle loan transactions drove a 42 per cent rise in volumes, with ICRA projecting a record Rs 2.6-2.7 trillion for FY27

NBFC credit against gold jewellery grew 68.5 per cent year-on-year in July, while growth at banks moderated to 88.1 per cent from 136.4 per cent a year earlier

MOFSL noted that public sector banks continue to command the highest market share in gold loans at 60 per cent as of March 2026.

Gold loans stood at around ₹18.6 trillion, or nearly 11 per cent of retail credit, after growing at a 34 per cent CAGR between FY21 and FY26.

Aditya Birla Capital joins other NBFCs like Tata Capital and Godrej Capital, which also announced plans to enter the gold loan business.

Aditya Birla Capital said its entry into the gold loan segment marks a strategic expansion of its secured lending portfolio and "complements its existing retail and MSME lending franchise

Manappuram Finance is moving from promoter-led management to a professional leadership model as Bain Capital deepens its stake in the gold loan-focused NBFC

Compare total cost and maintain a buffer to reduce auction risk

Organised gold loans by banks and NBFCs are expected to cross Rs 30 trillion by March 2028, while lenders adjust to revised RBI repayment and LTV norms

Divya S of Capri Global said that a weak monsoon often increases gold loan demand, as rural households monetise jewellery to finance the next crop cycle or bridge working capital gaps.

Life Insurance Corporation of India (LIC) and foreign portfolio investors (FPIs) collectively hold a 25 per cent stake in Rajesh Exports, data shows.

Muthoot Finance's total income increased by 65.1 per cent year-on-year to ₹9,291.36 crore, compared to ₹5,627.37 crore in the year-ago period

Rapid expansion has made gold loans the second-largest retail credit segment, but rising borrower leverage and repeat borrowing patterns are prompting calls for tighter regulatory oversight

Lenders must engage with customers on credit usage, as they did during the pandemic: Bhavesh Jain

Gold loans drive retail credit growth, with bank lending against jewellery doubling year-on-year in February, sharply outpacing overall retail loan expansion

Crisil Ratings expects gold-loan NBFCs to maintain strong profitability as rising demand, better operating leverage and benign credit costs support returns over the next two fiscals

Banks are shifting from unsecured loans to gold-backed lending amid rising gold prices, but RBI says low LTVs and limited exposure pose no systemic risk