Gold Loans Surge 50% to ₹19 Lakh Crore in FY26 Amid Rise in Secured Borrowing

Loans taken against gold jewellery increased 50% year-on-year to ₹19 lakh crore at the end of March FY26, according to data from CRIF High Mark. The segment recorded the highest growth among all retail loan categories during the year. 

The rise was supported by higher gold prices and increased borrowing against household jewellery. Gold prices gained around 36% in dollar terms over the last 12 months, lifting the value of pledged gold and increasing loan eligibility for borrowers. 

Retail Lending Grows 17% 

India’s retail loan market grew 17% year-on-year to ₹170 lakh crore in FY26, the report said. Growth in secured loans remained stronger than unsecured categories during the year. 

The report also noted an improvement in repayment trends across most retail segments. Delinquency levels declined during the period, while portfolio growth continued to remain ahead of the rise in active loan accounts. 

According to the report, this higher average loan sizes and a continued shift towards secured lending products. 

Borrowers Turn to Gold for Liquidity 

Gold loans, once largely associated with emergency borrowing, are now being used more frequently for short-term liquidity requirements. The report said this change has widened the borrower base for banks and non-bank lenders. 

Lenders are allowed to provide loans worth 75% to 85% of the value of pledged gold, depending on regulations. However, institutions generally lend below the permitted ceiling to protect against fluctuations in gold prices. 

Moderation in Vehicle Financing 

Some retail loan categories saw slower activity after the festive season. Auto loan originations declined 11.6% quarter-on-quarter, while 2-wheeler loan originations fell 22.1%, according to the report. 

The slowdown was also visible in consumer durable financing after higher seasonal demand in previous quarters. 

The data showed stronger growth in collateral-backed retail loans during FY26, with gold loans recording the sharpest increase among major lending categories. 

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Conclusion  

The increase in loans against gold jewellery lifted the overall growth of secured retail lending in FY26. At the same time, vehicle and consumer financing categories reported slower loan origination trends. 

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