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- An annual growth of 50% was recorded in the gold loan portfolio across the country.
- 75% of gold loan outstanding amount exists in five South Indian states.
- Highest gold loan in Tamil Nadu, Andhra Pradesh, Karnataka, Telangana, Kerala.
- Increase was also seen in personal, consumer durable, vehicle, home loans.
Gold Loan: On the gold loan front, a very shocking and worrying figure has emerged from the country’s banking sector. India’s gold loan portfolio has registered an annual increase of 50 percent. The most surprising thing is that 75 percent of this total outstanding loan is in the accounts of five South Indian states alone.
South Indian states are at the forefront
According to data from credit information company CRIF High Mark, out of the total Rs 18.6 lakh crore gold loans (including banks and NBFCs) as of March 2026, five southern states – Tamil Nadu, Andhra Pradesh, Karnataka, Telangana and Kerala – account for Rs 13.94 lakh crore.
It said that Tamil Nadu leads with outstanding of Rs 5.96 lakh crore by March 2026, Andhra Pradesh with outstanding of Rs 3.08 lakh crore, Karnataka Rs 1.81 lakh crore, Telangana Rs 1.60 lakh crore and Kerala at second, third, fourth and fifth place respectively with outstanding of Rs 1.45 lakh crore. This segment grew rapidly due to rising gold prices, high credit demand and preference for secured borrowing. South India remains its stronghold due to its cultural attachment to gold and strong lending network.
What is the condition of other states?
Despite being the most populous state, the outstanding gold loan in Uttar Pradesh is only Rs 42,300 crore. The figures for other big states are also less – gold loans outstanding in West Bengal are Rs 35,000 crore, Rajasthan is Rs 41,700 crore and Gujarat is Rs 57,100 crore. Southern states led in terms of growth in March 2026 — Karnataka (10.5%), Telangana (12.8%), followed by UP (11.2%).
Who is at the forefront in other categories?
According to CRIF High Mark report, asset quality has improved in the gold loan segment. During March 2025 to March 2026, the default rates in the larger loan segment of Rs 2.5 lakh to Rs 5 lakh have reduced to half. This shows that collateral coverage has become stronger in the big ticket segments. According to the report, a good growth of 12.9% was recorded in personal loans year-on-year (yoy). This shows that despite strict lending regulations, the demand for unsecured retail credit remains consistent.
Talking about other categories, consumer durable loans increased by 20.8%, mainly due to increase in purchase of electronics and home appliances. There was also a steady increase in vehicle financing, which recorded an increase of 13.9% to 15.1% year-on-year. At the same time, according to the report, there was a steady growth of 9.4% in home loans, the main reason for which was the demand for housing and the activities taking place in the property market.
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