Muthoot, Manappuram Finance, IIFL Share Price Tumble Up to 8% Amid Gold, Silver Crash

Shares of gold-loan companies plunged on Sunday, February 1, during a special Budget 2026 trading session. Muthoot Finance share price dropped 7.6% to ₹3,538, Manappuram Finance share price fell over 6% to ₹267.40, and IIFL share price shed 4% to ₹507 in early trades.

Loan-to-Value Ratios and Lending Risks

RBI guidelines set LTV at 85% for gold loans up to ₹2.5 lakh and 80% for loans between ₹2.5–5 lakh. With gold prices dropping sharply, lenders may face tighter lending conditions and higher credit risks.

Read more: Union Budget 2026: Who Are the Key Officials Working Behind the Scenes?

Gold and Silver Prices Slide Sharply

Gold prices rallied 135% in the past 13 months, from ₹76,700 in late 2024 to a record ₹1,80,779 on January 30, 2026. In the recent session, MCX Gold April futures slumped 23.3% to ₹1,38,634, and MCX Silver March futures fell 36.8% to ₹2,65,652. Internationally, metals also tumbled due to a stronger US dollar and Fed policy speculation.

Conclusion

Gold-loan stocks face volatility amid plunging precious metals. Investors are advised to stay cautious, watch lending risks, and avoid panic selling during the correction.

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/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 the related documents carefully before investing.