By Admin 
Gold Loan: The trend of pledging gold jewelry in India has increased somewhat than before. The data of the Reserve Bank of India (RBI) shows that by March 2025, the outstanding bank loans in lieu of gold have exceeded double. It has increased from Rs 1 lakh crore to 103 percent to about 2.1 lakh crore rupees. With this bounce, the gold loan has become the fastest growing segment.
Agricultural loans in lieu of gold jewelry
In fact, in 2023, RBI directed all banks to give agricultural loans in lieu of gold jewelery so that the farmer can meet his agricultural needs. Perhaps this is why the number of gold loans has increased. However, the loan given by banks in FY 2025 has come down from 20 percent to 11 percent as compared to last year. Typically, keeping the loan found in rural areas in lieu of gold in the category of agriculture credit benefits banks because one is low in interest rates and the terms of repaying it are also easy.
RBI banned NBFC on giving gold loan
After the Reserve Bank imposed a ban on granting loans on some major non-banking financial institutions, people turned to banks for this.
That’s why people are taking gold loan
On the other hand, due to the increase in gold prices, the number of people taking gold loans has also increased as more funds are being demanded according to the current market price instead of mortgaged jewelery. Despite the bounce in the gold loan, the borrowing has decreased. By the end of March 2025, the outstanding loan of banks has reached 182 trillion rupees.
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