By Admin 
Gold loan: Gold loan is emerging as a rapidly growing credit segment in India, with a growth of up to 125 percent on an annual basis till the end of November. This has been revealed in the report of Reserve Bank of India (RBI).
The rise in the price of gold in recent months is a major reason for this. When the price of gold increases, the number of gold loans also increases because the value of the pledged gold increases. With this, people get more loans at higher rates. In such a situation, it is becoming famous among those seeking short-term credit.
Why is the demand for gold loan increasing?
Over the past year, gold loans have consistently outperformed all other retail loan categories. RBI data shows that outstanding gold loans increased from Rs 898 crore in November 2023 to Rs 1.59 lakh crore in November 2024 and more than doubled to Rs 3.5 lakh crore by November 2025.
The interesting thing is that in the last six months its growth rate has doubled on an annual basis. In the year 2025, gold prices will increase by about 64 percent. During this period, the price of 10 grams of 24 carat gold reached approximately Rs 1.35 lakh. Due to this the demand for gold loan also increased. With the increase in the price of gold, its value per gram also increases, due to which people are able to avail the benefit of more loan in exchange of less gold.
Banks’ share in gold loans increased
Manish Mayank, head of gold loan business at IIFL Capital, says, “This rapid growth reflects a structural change in the way domestic customers and small businesses are taking loans.” He said that getting a gold loan is also easy as it requires less documentation and due to the fast processing, it quickly meets the working capital needs. Moreover, gold loan is secured. Unlike an unsecured personal loan, there is no risk in it.
This is the reason why banks are also emphasizing on increasing their share in the gold loan category, leaving NBFCs behind. The situation is that even though the gold loan portfolio of NBFC has reached about Rs 3 lakh crore, the bank is ahead in terms of market share. The share of banks in the gold loan market has now reached 50.35 percent. The remaining share is with companies like Muthoot Finance, Manappuram and IIFL Finance.
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