Gold Loan: There is an influx of people taking gold loan in banks, how to get double benefit as it is expensive?

Gold Loan: There are fluctuations in the prices of gold and silver. Due to tension in the Middle East, the condition of the bullion market is also very bad. But in the meantime the public has found a solution to it. Now people are using gold as investment and focusing more on gold loans. This business now seems to be growing even faster in the financial year 2026.

Tremendous increase in gold loans
In fact, according to a report by Experian, there has been a tremendous increase in new gold loans in the fourth quarter of the financial year 2026. It increased by 115% to Rs 7.6 lakh crore. At the same time, total gold loan AUM (Assets Under Management) increased by 47% to Rs 11.9 lakh crore. Looking at the market, it can also be assumed that gold loan has become the fastest growing secured loan sector in FY26. The main reason for this is that people have to do less paperwork in gold loan and get the money quickly.

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increase in loan amount
According to reports, the average size of gold loan has also increased rapidly. In the financial year 2024, people were taking an average gold loan of Rs 1 lakh, but in the financial year 2026 it increased to Rs 1.7 lakh. However, home loan still remains the largest loan category, with an average size of around Rs 33.5 lakh. But in terms of rapid growth, gold loan has gone ahead.

Why is the demand for gold loan increasing?
Gold prices are continuously increasing, hence people are finding it beneficial to take gold loan. Seeing the record breaking rise in gold prices, people are earning double from it. On the other hand, RBI has increased the strictness on unsecured loans, due to which people are moving towards secured loans. In such a situation, people are now more busy in taking gold loans than taking personal loans.

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