India’s Securitisation Market Hits ₹60,000 Crore in Q1 FY27, Gold Loans Lead

Gold loans emerged as the largest securitised asset class in India during the April-June quarter of FY27, according to a report by CRISIL Ratings. The asset class accounted for around 31% of total securitisation volumes, overtaking vehicle loans, which held a 26% share.

Overall securitisation issuances increased year-on-year to approximately ₹60,000 crore during the quarter. The shift highlights changing funding patterns among lenders and strong investor interest in gold loan-backed assets.

Gold Loans Lead India Securitisation Market in Q1 FY27

Gold loans became the biggest contributor to securitisation volumes during the April-June quarter of FY27. CRISIL Ratings reported that the segment accounted for around 31% of total issuances, marking a significant change in market composition.

Securitisation enables lenders to pool loans and sell them to investors, helping them raise funds and release capital for additional lending. The growth in gold loan securitisation was supported by strong portfolio expansion among gold loan financiers and sustained credit demand.

Why Gold Loan Securitisation Volumes Increased?

According to CRISIL Ratings, gold loan finance companies witnessed robust growth in their loan books during the quarter. To support continued lending activity, many lenders increasingly utilised the securitisation market as a funding source.

Strong demand for credit encouraged higher issuance volumes across the segment. This trend helped gold loans gain a larger share of the overall securitisation market compared with other retail asset classes.

NBFCs Dominate Securitisation Issuances

Non-banking financial companies (NBFCs) remained the primary originators in the securitisation market during the quarter. More than 98% of total securitisation issuances originated from NBFCs, highlighting their dominant role in the sector.

Unlike some previous peak periods, banks played only a limited role as originators. The data indicates that NBFCs continued to rely on securitisation as an important funding and capital management tool.

Investor Demand and Funding Structure Trends

Investor appetite for securitised gold loan pools remained strong during the quarter. CRISIL noted that public sector banks were among the major buyers, attracted by the asset class's negligible historical credit losses and favourable risk-weight treatment.

The funding mix also evolved, with direct assignment transactions accounting for 54% of total securitisation volumes, compared with 46% for pass-through certificate transactions. Nearly 87% of securitised gold loan deals were executed through the direct assignment route, reflecting lender and investor preferences.

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Conclusion

The April-June quarter of FY27 marked a notable shift in India's securitisation market, with gold loans overtaking vehicle loans as the largest asset class. Gold loans accounted for 31% of total securitisation volumes, while overall issuances reached about ₹60,000 crore.

The market was largely driven by NBFC-originated transactions, supported by strong demand from investors, including public sector banks. CRISIL Ratings also highlighted a broadening market, with the number of originators rising to around 115 from about 90 a year earlier, indicating growing adoption of securitisation as a funding mechanism.

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