India’s love for gold is no secret. But now, the gold reserves of India’s 3 gold loan companies have surpassed the reserves held by the central banks of the UK, Singapore, and Brazil!
These companies are Muthoot Finance, IIFL Finance, and Manappuram Finance, who saw the sharpest rise in 3 years in their gold loan holdings to 334 tonnes in FY26.
The three listed gold loan companies added nearly 20 tonnes of gold during FY26. Their growing stockpile now equals nearly 38% of the gold reserves held by the Reserve Bank of India (RBI), up from 36% a year earlier.
At the end of March 2026, the RBI held around 880.5 tonnes of gold reserves. Meanwhile, the combined holdings of these lenders were equivalent to nearly 46% of India’s total gold imports for FY26, which stood at 721 tonnes.
The numbers highlight how rapidly gold-backed lending has expanded in India, especially as households continue to rely on gold jewellery for short-term borrowing needs.
Much of the increase came from IIFL Finance, which added around 19 tonnes of gold during the financial year.
The company’s gold loan business had slowed after the RBI temporarily barred it from issuing fresh gold loans in March 2024. After the restrictions were lifted, its gold holdings recovered to nearly 60 tonnes, returning close to earlier levels.
At the same time, Muthoot Finance (the country’s largest gold loan provider) saw its holdings decline by around 7 tonnes to 209 tonnes.
Manappuram Finance reported its highest-ever gold holdings of 63 tonnes in FY26, up nearly 12% from the previous year. The company has increased its focus on gold loans as stress in the microfinance sector has pushed lenders toward safer, collateral-backed lending.
Gold loans continue to remain attractive for both borrowers and lenders. Customers get quick access to funds without selling family jewellery, while lenders benefit from the security of physical gold collateral.
The rise in gold holdings among India’s top gold loan companies reflects more than just business growth. It highlights the continuing importance of gold in Indian households and the financial system. With combined holdings now exceeding the reserves of countries like the UK, Singapore, and Brazil, gold-backed lending has become one of the most significant segments in India’s retail finance market.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks. Read all related documents carefully before investing.
Published on: May 27, 2026, 11:55 AM IST
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