India's Gold Loan Market Surges Fourfold in Five Years

The gold loan market in India has seen significant growth over the past five years, surging nearly four times to Rs.18.6 trillion as of March 2026, according to a report by Motilal Oswal Financial Services.

This growth is attributed to a more than 60% rise in gold prices and increasing demand for gold-backed loans for personal consumption and business needs.

The market is expected to grow at a 28% compound annual growth rate (CAGR) over the next two years, surpassing Rs.30 trillion by March 2028.

Despite this rapid expansion, penetration remains low, with only around 8% of the estimated gold held by Indian households currently being monetised.