Organised Gold Loan Market to Touch Rs 15 Lakh Crore This Fiscal
Rising gold prices, strong bank lending drive early growth milestone
India’s organised gold loan market is set to hit Rs 15 lakh crore by the end of this fiscal, a year ahead of earlier projections, as soaring gold prices and strong lending momentum boost growth.
The market, estimated at Rs 11.8 lakh crore in March 2025, is now projected by ICRA to expand rapidly and reach the milestone by FY26. Overall gold loans grew at a 26% CAGR in FY24 and FY25, with banks outpacing NBFCs in growth.
NBFCs’ assets under management (AUM) stood at Rs 2.4 lakh crore in June 2025, up 24%, and are expected to expand by 30–35% in FY26, mainly due to higher gold prices even as collateral tonnage remained steady.
Public sector banks continue to dominate the segment, led by agricultural and jewellery-backed lending. Their gold loan portfolios grew at a 27% CAGR over FY24–FY25, compared with 22% for private banks.
The RBI’s new guidelines aim to harmonise the sector and enhance transparency, though lenders anticipate short-term challenges in disbursements and assessments, particularly for loans above Rs 2.5 lakh. Smaller ticket loans, however, stand to benefit from relaxed loan-to-value (LTV) norms.