Gold Loan Disbursements Witness 94% YoY Surge in Q3FY26

Gold-backed lending witnessed strong growth during the October–December quarter of FY26, with total disbursements nearly doubling compared to the previous year. 

According to the Equifax Retail Insights report, gold loan disbursements rose to ₹8.16 trillion in Q3 FY26 from ₹4.23 trillion a year earlier, reflecting a growing preference among borrowers for secured credit backed by gold. 

NBFCs Lead Surge in Gold Loan Growth 

The rise in gold lending was particularly strong among non-banking financial companies (NBFCs), where disbursements surged 189% year-on-year to ₹2.5 trillion. 

Public sector banks continued to dominate the segment in absolute terms, with gold loan disbursements increasing 71.24% YoY to ₹3.75 trillion, accounting for nearly 46% of the total market. Private sector banks also recorded steady growth, with disbursements rising 65.75% YoY to ₹1.21 trillion. 

The report noted that the sharp rise in gold lending highlights a shift in borrowing behaviour. Over the past 3 years, gold prices have grown at a compound annual growth rate (CAGR) of about 25%, but gold loan growth expanded much faster, rising 94% in the last year alone. 

Borrowers Shift to Gold-Backed Credit 

Growth in gold loans has significantly outpaced expansion in other lending categories, particularly within NBFC portfolios. 

Business loans and commercial vehicle loans for NBFCs grew only 5% and 10% YoY respectively, compared with nearly 190% growth in gold loan disbursements. 

“Hence, borrowers seem to prefer gold loans over other available means for their business needs. However, gold loans alone cannot sustain the growth momentum for very long as the underlying asset growth may not keep pace,” the report said. 

The broader retail credit market also showed mixed trends. Fresh loan disbursements across segments rose about 40% YoY as of December 2025, while overall assets under management increased nearly 13%. 

Read More: Gold ETFs with Low Tracking Error – March 2026! 

Conclusion 

While gold loans have emerged as one of the fastest-growing credit segments, lenders remain cautious about long-term sustainability. The rapid expansion reflects strong demand for secured lending during periods of uncertainty, but future growth will depend on broader credit demand and movements in gold prices. 

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