Gold-backed loan disbursals soar 94% in Q3 FY26, says Equifax report

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

Gold loan disbursements rose 94 per cent year-on-year (YoY) to Rs 8.16 trillion in the October–December quarter of FY26 (Q3 FY26), up from Rs 4.23 trillion in the year-ago period, as borrowers increasingly preferred gold-backed loans over other credit options for business needs, according to the Equifax Retail Insights report.

 

Private sector banks saw gold loan disbursements rise 65.75 per cent YoY to Rs 1.21 trillion, while public sector banks (PSBs) recorded a 71.24 per cent increase to Rs 3.75 trillion. Non-banking financial companies (NBFCs) posted the sharpest rise, with disbursements surging 189 per cent YoY to Rs 2.5 trillion. PSBs remained the largest contributors, accounting for about 46 per cent of total disbursements. 

 

The report noted that while gold prices grew at a compound annual growth rate (CAGR) of 25 per cent over the past three years, gold loan growth surged 94 per cent in the past year alone, indicating a strong case of product substitution. 

For NBFCs, growth in other business segments remained muted; business loans and commercial vehicle loans grew 5 per cent and 10 per cent YoY, respectively, compared with nearly 190 per cent growth in gold loans.

 

“Hence, borrowers seem to prefer gold loans over other available means for their business needs. However, gold loans alone cannot sustain the growth momentum for very long as the underlying asset growth may not keep pace,” the report said.

 

As of December 2025, fresh disbursements grew 40 per cent YoY, while overall assets under management (AUM) expanded nearly 13 per cent, marking one of the strongest growth phases in recent years.

 

The personal loan segment also rebounded strongly, with disbursements rising nearly 34 per cent YoY, returning to pre-slowdown momentum. PSBs led the growth with a 42 per cent YoY increase, almost double the pace of private sector banks. At the same time, lenders showed a visible “flight to quality”, with the share of loans below Rs 10 lakh rising to 37 per cent over the past two years.

 

High-ticket borrowers continued to show stronger resilience, with PSU and private sector banks maintaining industry-leading net 90+ delinquency rates of 0.4 per cent and 0.6 per cent, respectively, in this segment.

 

Credit cards were the only product to witness a contraction in volumes, although asset quality improved, with industry net 90+ delinquency declining to 1.56 per cent from 1.93 per cent a year earlier.