Gold Loan Market Surges Fourfold in Five Years

The gold loan market has experienced rapid growth over the past five years, nearly quadrupling to ₹18.6 trillion as of March 2026 and surpassing personal loans to become the second-largest asset class in the retail segment.

This surge can be attributed to a more than 60% rise in gold prices and growing demand for gold-backed loans for personal consumption and business needs, with the market experiencing 50% year-on-year growth in FY26.

Despite this growth, gold loan penetration remains low, with only around 8% of the estimated gold held by Indian households currently monetised. However, experts believe that there is significant potential for growth, as physical assets continue to dominate Indian household savings.