New Delhi [India], June 23: Gold loan sourcing value accelerated significantly over the last two years, with value growth increasing from 69% in FY25 to 84% in FY26, indicating stronger customer demand and deeper market penetration.
The industry 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, observed Experian in its latest report.
The latest report, titled "Gold Loans in Transition: Market Evolution & Consumer Patterns," showcases how gold loans are rapidly evolving into a mainstream credit product, enabling consumers to unlock the value of household gold while contributing to broader financial inclusion and credit growth.
Commenting on the report, Manish Jain, Country Managing Director of Experian India, said, "In a country where household gold holdings are significant, the rapid growth of gold loans is enabling households to convert a traditionally held asset into a source of accessible finance.”
The report highlights a strong structural shift in India’s retail credit landscape, with gold loans increasingly being adopted by consumers as a reliable and accessible financing option. This trend is benefiting both borrowers and lenders.
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Gold rates in New Delhi today stand at approximately ₹13,498 per gram for 22K gold and ₹14,811 per gram for 24K gold.
The report reveals that growth in the gold loan segment is increasingly being driven by larger ticket sizes, stronger borrower demand, broader geographic adoption, and growing participation across banks, NBFCs and specialised gold lenders.
Experian's analysis of borrower and lender trends indicates that gold loans are now emerging as an important component of formal credit expansion and financial inclusion, moving beyond their traditional role as an emergency credit instrument.
The report identifies rising gold prices as a key factor influencing this growth trajectory. As gold values increase, borrowers are able to unlock larger loan amounts against the same underlying asset.
During the period studied, while the gold price index increased by 144%, gold loan sanction amounts grew by more than 200%, demonstrating how higher asset values are expanding access to credit.
This trend is also reflected in borrowing patterns, with average ticket sizes nearly doubling from Rs. 0.98 lakh in FY23 to Rs. 1.96 lakh in FY26, indicating a clear shift towards larger-value loans.
The growth story is also becoming increasingly broad-based across the country. While Southern India continues to remain an important market for gold loans, the report notes strong momentum across newer geographies.
Strong YoY sourcing growth in FY26 was seen in states such as Uttar Pradesh (+138%), West Bengal (+112%), Rajasthan (+105%), and Maharashtra (+102%), highlighting growing acceptance of gold-backed lending beyond its traditional regional concentration and indicating a broader pan-India expansion trend.
Priority Sector Gold Loans (PSGL) are playing an increasingly significant role in driving inclusive growth, accounting for approximately 23% of total gold loan sourcing value in FY26.
The segment continues to support formal credit access across rural, semi-urban, agricultural and underserved borrower communities.
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By unlocking the value of household gold, PSGLs are helping convert dormant assets into productive capital, especially supporting women-led households, micro-enterprises, livelihood generation and greater participation in the formal financial ecosystem.
Consumers are also evolving in terms of their borrowing behaviour. Gold loan customers are increasingly engaging with multiple credit products, with the share of such customers increasing from 10% in December 2021 to 17% in December 2025, indicating stronger borrower confidence and deepening customer relationships.
The report also points towards growing customer stickiness within the segment, with repeat borrowers continuing to play a significant role in driving growth.
In Q4 FY26, nearly 75% of sourced gold loan customers were repeat borrowers, indicating that gold loans are increasingly becoming a recurring credit solution rather than a one-time borrowing instrument and reflecting stronger customer trust and engagement within the formal lending ecosystem.
Despite strong growth, portfolio quality has remained resilient. Net 90+ delinquency improved from 0.4% in March 2023 to 0.2% in March 2026, demonstrating that expansion in the segment has continued alongside stable credit performance and prudent risk management practices.
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Ends.
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