New Delhi , May 20: India’s gold-backed loans have surged by more than 50% year-on-year, emerging as a key driver of growth in the country’s retail credit sector. This sharp rise underscores the growing reliance on gold as a secure and accessible source of short-term financing for households across India.
Financial analysts say the trend reflects not only the enduring trust in gold as a valuable asset but also the increasing need for liquidity among individuals and small businesses. Banks and non-banking financial institutions (NBFCs) have expanded their gold loan offerings, helping borrowers meet financial needs quickly while contributing to the overall growth of retail lending.
“Gold loans have become an essential tool for everyday financial management, allowing families to leverage their assets responsibly while supporting the broader retail credit ecosystem,” noted experts tracking the sector.
With continued demand for gold-backed lending, the segment is expected to play a central role in India’s financial landscape in the coming months, complementing other retail credit products such as personal loans and consumer finance.