Gold Loans Glitter As Portfolio Jumps 50% To Rs 19 Lakh Crore In FY26

Secured Credit Becomes The New Engine

Fresh data from CRIF High Mark and sector reports show gold loans emerging as the standout growth driver within retail lending, outpacing personal loans and even some housing segments. Elevated gold prices, larger ticket sizes and lenders’ preference for collateral-backed books are fuelling this expansion, with gold loans now accounting for a rising share of retail portfolios.

Banks, NBFCs And Regional Tailwinds

Banks hold the lion’s share of organised gold loan assets, but specialist NBFCs have also reported aggressive growth on the back of branch expansion and focused sourcing. Portfolio data indicates strong traction in states such as Gujarat, Karnataka and Maharashtra, highlighting how households are increasingly monetising idle jewellery to manage cash flow, business needs and debt consolidation.

What Rising Gold Loans Signal For The Economy

The 50%-plus jump in gold loans underlines both cyclical stress and structural formalisation: borrowers are substituting costlier unsecured credit with gold-backed funding, while lenders gain comfort from liquid collateral and improving delinquency trends. For policymakers and markets, this pivot towards secured lending will be a key theme to watch as interest rates, gold prices and retail credit quality evolve through FY27.

Key highlights

1. Gold loan portfolio rises about 50% YoY to nearly Rs 19 lakh crore in FY26
2. Gold loans now one of the fastest-growing retail credit products in India
3. Growth driven by high gold prices, larger ticket sizes and regulatory push towards secured credit
4. Banks dominate share, but NBFCs and southern/western states show sharp acceleration

Sources: CRIF High Mark