Gold loans have emerged as the fastest-growing retail credit segment in India, with outstanding loans surging 50.4% year-on-year (Y-o-Y) to ₹18.6tn (trillion) as of March 2026, according to the latest edition of the ‘How India Lends – Credit Landscape in India’ report released by CRIF High Mark.
The report said the sharp rise in gold-backed lending significantly outpaced the overall retail credit market, where total retail loans outstanding increased 16.6% Y-o-Y to ₹170.2tn during the same period.
The study highlighted that gold loans have now become the second-largest retail lending product in India after home loans, reflecting a major shift in borrowing patterns and growing reliance on secured lending products.
According to the report, the rapid expansion in gold loans was driven by rising gold prices, higher collateral values, increased formalisation of lending, and stronger demand for secured credit, especially in semi-urban and rural India.
The gold loan portfolio outstanding rose from ₹12.4tn in March 2025 to ₹18.6tn in March 2026, while quarterly growth stood at 15%. Active gold loan accounts stood at around 89.9mn (million) during the period.
The report also noted that delinquencies in the segment remained stable to improving across categories, underlining the relatively lower risk profile of gold-backed lending. Pan-India portfolio at risk (PAR) 31-180 delinquency levels improved to 1.2% in March 2026 from 2% a year earlier.
Among states, Uttar Pradesh recorded the fastest annual growth in gold loan outstanding at 78.3%, followed by Telangana at 70.5%. Tamil Nadu continued to hold the largest gold loan portfolio at ₹5.97tn. Maharashtra’s gold loan portfolio grew 58% Y-o-Y.
The report observed that the sector was witnessing a clear shift towards higher-value loans. Loans below ₹100,000 saw their share in total originations value decline sharply from 22.9% in the fourth quarter (Q4) of FY23-24 to 9.9% in Q4 FY25-26. In contrast, loans above ₹250,000 steadily increased their contribution to the market.
Gold loan originations value during FY25-26 jumped 74.4% Y-o-Y to ₹30.47tn, while loan volumes increased 24% to 164.8mn accounts.
The report attributed the surge partly to rising gold prices and favourable regulations, including the 85% loan-to-value (LTV) cap for loans up to ₹250,000, which expanded borrower eligibility.
Public sector banks (PSBs) continued to dominate the gold loan market by value, accounting for 44.6% of originations in Q4 FY25-26. However, non-banking financial companies (NBFCs) emerged as the fastest-growing players, increasing their share in originations value from 20.7% in Q4 FY23-24 to 31.6% in Q4 FY25-26. NBFCs also led by loan volumes with nearly 49% market share.
The report further noted significant improvement in asset quality among NBFCs. PAR 31-90 delinquency for NBFC gold loans improved sharply from 2.15% in March 2025 to 0.56% in March 2026.
Commenting on the findings, George Alexander Muthoot, managing director (MD) of Muthoot Finance, said the growth reflected a structural shift in India’s credit landscape.
“The CRIF High Mark data tells a compelling story about where India’s credit landscape is headed. A 50.4% year-on-year growth in gold loan outstanding to ₹18.6tn is not incidental, it reflects a fundamental shift in how Indians are accessing formal credit,” he said.
He added that elevated gold prices and rising ticket sizes had supported growth, but the deeper driver was increasing confidence among households in gold-backed formal lending.
“What is equally significant is the broader context, total retail lending expanding 16.6% to ₹170.2tn, with secured credit leading the quality curve. The industry is maturing in the right direction,” he said.
Mr Muthoot said gold loans had evolved from a niche borrowing product into a mainstream instrument of financial inclusion, supported by regulatory clarity and rising collateral values.
The report also carried observations from Mohit Jain of Axis Bank, who said gold lending was increasingly moving beyond collateral-based lending towards broader credit assessment-linked models, which could support sustainable long-term growth in the segment.
Overall, the CRIF High Mark report suggested that secured lending products such as gold loans and home loans were showing stronger portfolio quality compared with unsecured categories, even as India’s retail credit market continued expanding at a healthy pace.
