Gold Loans

Gold kept by customers as security against loans allegedly went missing from a Bank of India branch locker in Uttar Pradesh's Firozabad district, police said on Thursday. A total of 96 packets containing pledged gold were found missing from the locker of the bank's Bharaul branch, officials said. The bank's Agra regional office chief manager Aditya Pratap Singh lodged an FIR at the Araon police station on Wednesday night against three employees, including the then branch manager. Superintendent of Police Aditya Langhe said the complaint stated that bank staff member and key custodian Dilip Kumar, a resident of Basgaon village in Etawah district, had been absent without information since May 27, due to which locker-related work had stopped. When the bank failed to contact him, suspicion arose and the matter was reported to the regional office in Agra. Following this, senior security manager Ankit and senior manager (security) of the Ghiror branch, Sushil Kumar, were sent to the Bhar

Consumer durable financing has emerged as the primary gateway to formal credit as lenders increasingly favour borrowers with established repayment records

Retail loans rose 16.6 per cent to Rs 170.2 trillion in FY26, with gold loans emerging as the fastest-growing segment amid rising bullion prices and regulatory easing

From rising oil-linked risks and services data gaps to gold loan expansion and global capital flows, here are the key insights from Business Standard's Opinion page

The portfolio can glitter only if backed by prudence

Piramal Finance expects strong growth in AUM and profits by FY27, while planning stake sales in non-core businesses and expanding its rural lending and branch network

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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

Backed by International Holding Company, Samman Capital aims to transform into a diversified NBFC and enter India's top three by AUM by FY29

Maintain a liquidity buffer in case you get a margin call due to falling gold prices

The new framework, which is scheduled to come into effect on April 1, 2026, aims to strengthen regulatory oversight and promote responsible lending practices in the gold loan segment

Gold loan disbursements nearly doubled in Q3 FY26 as borrowers favoured gold-backed credit, with NBFCs leading growth and PSBs contributing the largest share, Equifax data shows

Experian data shows secured loans growing 42% in Q3FY26, led by strong demand for gold loans, even as unsecured lending rebounded and home loans maintained steady momentum

Gold loans overtake auto loans as the second-largest retail segment, with rapid growth driven by soaring gold prices and rising borrower demand

Higher-ticket loans show better credit performance compared to small-ticket loans.

With clearer RBI norms, easing microfinance stress and digital-first models, small finance banks are set for steady growth and deeper reach among underserved customers

Assets under management of non-banking financial companies specialising in gold loans are set to log a compound annual growth rate (CAGR) of about 40 per cent between this fiscal and next, surpassing Rs 4 lakh crore by March 2027, a report said. The surge will be driven by elevated gold prices, a shift towards secured credit and an evolved regulatory environment, outpacing the CAGR of 27 per cent clocked between fiscals 2023 and 2025, said the report by Crisil Ratings. Gold prices soared about 68 per cent in the first nine months of this fiscal year to an all-time high. "This enhances collateral values, enabling lenders to scale up disbursements," it said. Furthermore, amid the limited availability of credit from segments such as unsecured lending, borrowers are looking for other sources of funding. To capitalise on these lending opportunities, gold-loan NBFCs (both large and mid-size ones) have been expanding their market presence, despite stiff competition from banks, Crisil Rati

EMI-based repayment steadily reduces the principal and lowers LTV, offering better protection against price volatility than the bullet option

JM Financial said the non-bank lender's diversified retail-focused franchise, strong asset quality and expanding non-interest income engine position it well for sustained growth.

Muthoot Finance posted robust Q2FY26 earnings driven by higher gold prices and strong AUM growth, but analysts flag risks from yield pressure, NIM compression and regulatory uncertainty