India's Gold Loan Market Expands Amid Global Gold Price Volatility
What happened
Gold loans have become a fast-growing lending segment in India. Gold loans expanded at a compound annual growth rate of about 42% during FY24-FY26, which is nearly double the growth of other non-housing retail loans. Non-Banking Financial Companies saw their gold loan books nearly double with 96.5% year-on-year growth in FY26, exceeding the industry's overall growth of 54.5%.
From businesstoday.in
Why it matters
The rapid expansion of the gold loan market provides a domestic buffer against drops in global gold prices. While gold prices may have eased from record highs, the sector remains fundamentally strong, according to analysis of the Reserve Bank of India's Financial Stability Report.
India is a major market hub for gold transactions.
From businesstoday.in
How it developed
Newest first. Tap a step to see who reported it.- Banks currently hold ₹5 trillion in gold jewellery loans as of October 2026.Sub-event
- Borrowers are increasingly using gold loans as a source of credit.Sub-event
- Multiple Indian states contributed data to the collective gold loan outstanding figures on August 10, 2026.Sub-event
Indian gold loan market is expanding, strengthening the domestic market against global price volatility.1 source