Gold Loans Surpass Credit Card Debt in India by ₹1.6 Lakh Crore

In a significant shift in borrowing patterns, gold loans in India have surpassed credit card debt, highlighting the impact of rising gold prices and stricter regulations on unsecured lending. 

Gold Loans Outpace Credit Card Debt 

As per the Zerodha Capital data, gold loans have surged to ₹4.6 lakh crore, significantly outpacing credit card dues, which stand at approximately ₹3 lakh crore.  

This marks a notable change in household borrowing preferences, driven by the increasing value of gold and a cautious approach by lenders towards unsecured credit. 

The data indicates that gold loans crossed the threshold of credit card debt in mid-2025 and have continued to widen the gap.  

The shift is attributed to a combination of factors, including elevated gold prices and regulatory measures aimed at tightening unsecured lending practices. 

Factors Driving the Shift 

The rise in gold prices has enhanced the borrowing capacity of households and small businesses, allowing them to unlock more value against pledged jewellery. This has made gold loans an attractive option for those seeking liquidity. 

Meanwhile, credit card debt has plateaued after years of growth, as banks and non-banking financial companies focus more on secured lending products.  

The Reserve Bank of India's tightened norms around unsecured retail credit have further influenced this trend. 

Read More: Gold ETFs Attract ₹3,040 Crore in April 2026 as Silver ETFs Post Outflows! 

Data Insights 

According to data from 41 select scheduled commercial banks, outstanding gold loans have risen from below ₹1 lakh crore in 2021 to over ₹4.5 lakh crore in 2026.  

In contrast, credit card debt has remained steady near the ₹3 lakh crore mark after a period of consistent growth from 2017. 

Conclusion 

The data underscores a significant shift in borrowing behaviour, with gold loans now surpassing credit card debt by ₹1.6 lakh crore. This trend reflects the combined influence of rising gold prices and a cautious lending environment for unsecured credit. 

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