India's Gold Loan Market Sees Record Growth in FY26, with New Loans Increasing by 115% Amid Rising Demand.

India's Gold Loan Market Surges in FY26, Emerging as Standout Credit Story

The gold loan market in India has witnessed unprecedented growth in the financial year 2026, with new loans surging to a staggering Rs 7.6 lakh crore in the fourth quarter, marking a significant increase of 115 percent year-on-year. According to the latest Experian report, the Assets Under Management (AUM) of gold loans rose 47 percent annually to Rs 11.9 lakh crore as of March 2026.

The report highlights that gold loans have emerged as one of the strongest drivers of growth in secured lending in FY26, with the average ticket size (ATS) rising sharply from Rs 1 lakh in FY24 to Rs 1.7 lakh in FY26. Although home loans still lead in ticket size at Rs 33.5 lakh in FY26, their growth has been relatively gradual compared to that of gold loans.

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Gold loans have consistently outperformed personal loans and credit cards, backed by the physical retail value of the precious metal, according to Experian data. The growth of the gold loan market can be attributed to three key factors: record gold prices boosting loan-to-value (LTV) linked borrowing capacity, the RBI's tightening of unsecured lending norms pushing borrowers toward collateral-backed credit, and the formalisation of the segment through banks and NBFCs, along with the RBI's revised LTV framework that raised the cap to 85 percent for Rs 2.5 lakh loans.

Augmont's Dr. Renisha Chainani expects the long-term organised gold loan market to reach Rs 18 lakh crore by FY27, driven by rising gold prices, expanding credit demand, and the RBI's revised tiered LTV framework. However, she also highlighted key risks, including rising NPAs and regulatory tightening on valuation and auction norms, which could moderate growth velocity.