India's Gold Loan Market Poised to Surpass ₹30 Lakh Crore by FY28

India's gold loan market is on track for unprecedented growth, with rating agency ICRA forecasting that loans extended by banks and non-banking financial companies (NBFCs) will exceed ₹30 lakh crore by March 2028.

This represents a compound annual growth rate (CAGR) of over 30% from FY27 to FY28, driven by rising consumer demand, aggressive expansion by lenders, and evolving market dynamics.

The surge is largely attributed to the strong demand for retail gold loans, particularly among individuals borrowing for personal consumption or business needs.

ICRA expects banks and NBFCs to continue expanding their branch networks and gold loan offerings, ensuring sustained growth despite moderating gold prices.