India's Gold Loan Rush Hits Record Growth

Gold loan growth in India has accelerated rapidly over the past few years, outpacing other retail loan segments. According to RBI data, gold loans by banks surged 88.1% year-on-year in July 2026, while those by non-banking financial companies (NBFCs) shot up 68.5% y-o-y.

This growth is driven by several factors, including rising gold prices and strong collateral values. 'Many players have seen an average increase of 50%, and some have even registered a growth of 100-150% in a year,' says Pravin Salian, a financial consultant and gold loan expert.

The gold loan portfolio outstanding reached Rs 22.7 trillion in August 2026, driven by increasing credit demand and the continued appeal of gold loans as a quick and accessible source of secured funding, according to Sachin Seth, Regional Managing Director at CRIF India and South Asia.