India's Gold-Loan Market Set to Soar 28% Annually Through 2028
The gold-loan market in India is expected to experience significant growth between FY26 and FY28, driven by low penetration of household gold and rising demand for gold-backed financing. According to a report by Motilal Oswal Financial Services, the industry will grow at a 28% compound annual growth rate (CAGR) during this period, reaching Rs 30 lakh crore by March 2028.
The current market size stands at Rs 18.6 lakh crore as of March 2026, with the gold-loan industry expanding rapidly in recent years. The report notes that household gold holdings offer significant headroom for organised gold-loan growth, with only around 8% of the estimated 28,000 tonnes monetised so far.
The growth is being driven by higher gold prices and repeat borrowing, with existing borrowers accounting for 82% of originations in 2025. However, the report also highlights potential concerns around overleveraging as a result of increasing dependence on repeat borrowing and top-ups.