Editor’s Note
As gold prices reach new highs, the gold loan market is experiencing a parallel surge. This article examines how this traditional form of secured lending has nearly doubled in value in recent years, reflecting both economic trends and shifting strategies among financial institutions.
Amid the surge in gold prices, interest from banks and other lenders in gold loans, considered a secure lending option, has increased. According to a report, the total loans issued against gold jewelry have nearly doubled in the past two years, reaching ₹15.6 lakh crore by November 2025.
The report states that the country’s total gold loan portfolio has nearly doubled in the past two years. According to a recent report by CRIF High Mark, the total size of gold loans was ₹7.9 lakh crore in November 2023, which increased to ₹15.6 lakh crore by November 2025, marking a significant surge in just two years.
The report indicates that gold loans grew by 42% in the year leading up to November 2025. In the previous year ending November 2024, a growth of 39% was recorded. This consecutive high growth over two years shows that gold loans are becoming a significant part of retail credit.
The growing confidence in gold loans is also reflected in the overall retail loan figures. By the end of November 2025, the share of gold loans in the country’s total retail loan portfolio increased to 9.7%, up from 8.1% a year earlier. This means people are increasingly viewing loans against gold as a safer and easier option compared to personal loans or other credit.
However, the report also notes that the growth in the number of gold loan accounts has been limited. The number of active gold loan accounts increased by only 10.3%. Despite this, the total loan amount has grown rapidly because larger-sized gold loans are now being taken. Gold loans above ₹2.5 lakh now constitute nearly 50% of the total portfolio, compared to just 36.4% in March 2023.
An interesting finding from the report’s analysis is that over 56% of the total gold loan portfolio is held by male borrowers. However, when it comes to loan repayment, women have proven to be better. Female borrowers’ repayment records were found to be stronger compared to men.
In terms of market share, public sector banks continue to dominate the gold loan sector, holding about 60% share. The reason is that people still consider borrowing from large and trusted institutions safer. Meanwhile, non-banking financial companies (NBFCs) focused solely on gold loans held an 8.1% share, though their share is expected to grow in the future.
Experts believe that if gold prices remain high and the environment of economic uncertainty persists, the demand for gold loans could remain strong. Due to secure collateral and an easy process, gold loans are becoming a preferred credit option for the common people.