Gold Loans

Rising repayment delays and tighter renewal rules underline the risks of using gold loans to manage existing debt

Increasing household debt needs careful examination

Shriram Finance aims to double gold loans' share of its AUM to 5 per cent in two years, while expanding EV financing and exploring partnerships with Japanese automakers.

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

Industrial credit growth accelerated from 6.5 per cent a year earlier, while loans against gold jewellery grew 88.1 per cent, down from 136.4 per cent

While gold has traditionally been a dormant store of value for Indian households, the current price upcycle is increasingly turning the asset into a source of liquidity through gold-backed loans.

Data centres, renewable energy and urbanisation are driving corporate credit demand, while gold loans and borrowers from smaller cities are fuelling retail growth, its ​chief executive said

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.

Public sector lender Indian Bank expects its gold loan book to cross Rs 1.5 lakh crore in the current financial year, supported by robust demand for the product. "Gold loan is safe lending for banks...it is not a consumption loan, but mostly it is income-generating and also helps small businesses to grow. Last year, we saw very significant growth of 30 per cent in the segment due to a jump in gold prices. It will be slower this year as there is a 30 per cent decline in gold prices," Indian Bank MD and CEO Binod Kumar told PTI in an interaction. This growth would come from tonnage, he said, adding that the gold loan segment is likely to grow about 20 per cent. Currently, the gold loan portfolio is around Rs 1.25 lakh crore, and the book should exceed Rs 1.5 lakh crore during this financial year at the anticipated growth rate, he said. Kumar further said that RAM (Retail, Agriculture, and MSME) constitutes 65 per cent of the overall loan book while the remaining 35 per cent is from .

Gold loans could gain from a structural shift towards monetising household gold, lower borrowing costs and rising financial literacy, with penetration remaining relatively low

The NBFC arm plans to open 200-300 dedicated gold loan branches by March 2027 and scale the network to around 1,000 over the next three years

Strong growth in gold loan portfolios enabled public sector banks to exceed priority sector targets and earn higher fee income by selling surplus PSLCs in the June quarter

Shriram Finance is aiming to double gold loans' contribution in the overall loanbook to 5 per cent over the next three years, joining a slew of lenders ramping up focus in the more secure and high-value retail segment. The non-bank lender is also keen to increase the share of micro, small and medium enterprises in the overall loan portfolio over the medium term to 20 per cent, a top official has said. "Around 2.5 per cent of our loan book comes from the gold loan segment now. We want to grow it to 5 per cent in the next three years," its executive vice chairman Umesh Revankar told PTI recently. As of June 2026, the lender's overall gold loans outstanding had stood at Rs 7,514 crore, accounting for 2.39 per cent of the overall Rs 3.13 lakh crore book. Gold loans' share has been steadily increasing in recent times, and the first quarter of FY27 also saw a 46 per cent growth in portfolio when compared year-on-year and 13 per cent quarter-on-quarter. In March 2026, the gold loans ...

Tata Capital enters gold loan business with ₹318 crore Yogloans acquisition

Tata Capital will acquire an 88.6 per cent stake in Kerala-based Yogloans, marking its entry into the gold loan business and expanding its retail lending portfolio

L&T Finance reported a 31 per cent rise in Q1FY27 profit as strong retail loan growth, better asset quality and lower borrowing costs supported its performance

Commercial real estate loans grow over 40%, while gold loans grow 70% and consumer durable loans grow 42%

NBFCs accounted for over 98% of securitisation issuances in April-June 2026, with gold loans emerging as the largest asset class amid robust investor demand and healthy retail credit growth

RBI said gold loans have become the fastest-growing retail loan segment, with rising gold prices driving disbursements while improving lenders' collateral buffers

Strong risk-management practices, conservative lending ratios and timely auctions help lenders recover principal even under stressed gold-price scenarios, the agency says