Gold Loan In India: Gold loans have become very popular in India. In fact, gold loans have now become the second-largest retail credit product in terms of balance share.
According to a report by TransUnion CIBIL, gold loan balances have surged by nearly 4x (4 times) since March 2022. Gold loan shares in the country's retail credit portfolio have increased from 5.9 per cent to 11.1 per cent by December 2025.
Gold Loan In India: What Report Said
The Gold Loan Landscape report said that the rise reflects rising borrower adoption, higher ticket sizes and increased participation by lenders.
The borrower profile, as per the report, includes women. It also includes customers with extensive credit profiles.
Gold Loan In India: NBFCs vs Banks
The report said that the growth in gold loans has been strong among NBFCs. NBFCs have increased their portion of gold loan balances from 11 per cent in December 2025 to 7 per cent in March 2022. This increase tells about the increased participation by the lenders and also a rise in demand for gold loans.
The share of public sector banks also increased, but remained well below that of the NBFC. State-run bank's shares surged to 62 per cent from 57 per cent in the same period.
The average gold loan balance per account increased to Rs 1.9 lakh in December 2025 from Rs 1.1 lakh in March 2022, the report said.
Gold Loan Industry Supply (Indexed) | Gold Loan In India
Bhavesh Jain, MD and CEO, TransUnion CIBIL, said that gold has always held deep financial and cultural relevance in India. What we are seeing now is a structural shift in how gold-backed borrowing is being used.
"The growth in gold loan demand reflects both lender confidence and rising consumer acceptance," he said.
"This is an indication that gold loans are no longer being used only for short-term liquidity needs but are becoming part of broader household borrowing behaviour,” he added.
