New Delhi, May 20: India’s retail lending sector expanded by 16.6%, with a significant contribution from gold-backed loans, according to a recent report. The increase reflects strong demand for consumer credit and the growing reliance on gold as a trusted source of short-term financing.
Financial analysts note that gold loans have emerged as a key driver of retail credit growth, helping banks and non-banking financial companies (NBFCs) expand their lending portfolios while providing individuals with quick access to funds. Personal loans, consumer finance, and other retail credit products also contributed to the overall growth.
The report highlights that as households continue to seek flexible and accessible credit options, gold-backed lending is expected to remain an important segment in India’s retail finance landscape.