Gold loans pick demand amid price rise in yellow metal

STC NEWS DESK
SRINAGAR, JULY 05 (STC): Rising gold prices have pushed up the demand for loans against the yellow metal in India. The ticket size of gold loans has been reported higher as compared to earlier trends.
The rapid growth of gold loans is enabling households to convert a traditionally held asset into a source of accessible finance.
The average ticket size of gold loans jumping 39% year-on-year (YoY) to Rs. 1.96 lakh in 2025-26 (FY26). The average ticket size has doubled in just three years (from Rs. 98,000 in FY23 to Rs. 1.96 lakh in FY26).
Reports indicate that it’s not only that the gold price index surged 144% over two years (between March 2024 and March 2026), gold loan sanction amounts soared by 200% over the same period.
The overall gold loan portfolio also expanded substantially, from Rs. 6.3 lakh crore in March 2023 to Rs. 19.4 lakh crore by March 2026, reflecting sustained momentum across the category. With gold becoming more valuable, there is a higher concentration of loans at ticket sizes above Rs. 3 lakh.L no pop
The share of gold loans in overall retail credit has also shown steady growth over the past two years, rising from 20% in FY24 to 30% in FY25 and then to 41% in FY26. Gold loan sanctions grew sharply both by value (+105% YoY in Q4 FY26) and by volume (+37% YoY in Q4FY26).
Market experts said gold loans are supporting greater financial inclusion while enabling consumers to meet a wide range of personal and livelihood needs.
Meanwhile, the data shows that despite strong growth, the quality of the gold loan portfolio did not deteriorate. In fact, delinquencies have declined to 0.2% in March 2026 from 0.4% in March 2023, demonstrating that expansion in the segment has continued alongside stable credit performance and prudent risk management practices.

(Straight Talk Communications)