India’s gold loan portfolio swells to 42% to Rs 15.6 lakh crore as PSU banks tighten grip: Report

India’s gold loan portfolio expanded sharply to Rs 15.6 lakh crore as of November 2025, registering a robust 41.9% year-on-year growth, with public sector banks (PSBs) consolidating their dominance by holding nearly 60% of the outstanding book, according to CRIF High Mark’s latest CreditScape report on gold loans.

The report shows that gold loans have emerged as the fastest-growing segment within retail lending, outpacing consumption and overall retail credit growth. Gold loans now account for about 9.7% of India’s total retail loan portfolio, up from around 8.1% a year earlier, underscoring the growing preference for secured lending amid volatile economic conditions and elevated gold prices.

Active gold loan accounts

As of November 2025, active gold loan accounts stood at 902.6 lakh, reflecting a relatively moderate growth of 10.3% year-on-year. This divergence between portfolio outstanding and account growth indicates that expansion has been driven largely by higher loan values rather than a sharp rise in borrower numbers. Rising gold prices have boosted collateral values, allowing borrowers to raise larger loans against the same quantity of pledged gold.

Public sector banks

Public sector banks remain the dominant players in the gold loan market, accounting for 59.9% of portfolio outstanding and 46.6% of active loans as of November 2025. Gold loan-focused non-banking financial companies (NBFCs) held a smaller 8.1% share of portfolio outstanding but accounted for a higher 16.6% of active loans, pointing to their growing role in incremental lending.

Borrowers aged 36–45 years formed the largest demographic segment, representing 31.9% of portfolio outstanding. Male borrowers held 56.4% of the gold loan portfolio, while female borrowers accounted for the remaining 43.6%.

Gold loan exposure

Regionally, gold loan exposure remains highly concentrated. The top 10 states accounted for nearly 91% of the portfolio outstanding, with southern states contributing over three-fourths of the total. Tamil Nadu alone accounted for about a third of the portfolio. Gujarat emerged as the fastest-growing major state, recording year-on-year growth of nearly 67%. While asset quality improved across most states, pockets of stress persisted in Uttar Pradesh, Maharashtra, Tamil Nadu and Odisha, where delinquency levels were above the national average.

Higher-ticket gold loans

Higher-ticket gold loans are gaining traction, with loans above Rs 2.5 lakh steadily increasing their share of origination value, from 36.4% in FY23 to 48.4% in FY25, and further to 59.1% in the first eight months of FY26. Smaller loans of up to ₹2.5 lakh, however, continue to dominate origination volumes, underscoring their importance in mass-market lending.

Gold loan origination value more than doubled during the first eight months of FY26, rising 111.1% year-on-year to Rs 17.4 lakh crore, with origination volumes reaching 1,052.5 lakh loans. Loans above Rs 2.5 lakh continued to drive value growth, contributing 59.1% of total origination value, up sharply from previous years.

In the smaller-ticket segment, the average loan size increased to Rs 76,500 in the first eight months of FY26 from Rs 71,200 in FY25, marking an 8.6% year-on-year rise. Loans up to Rs 2.5 lakh accounted for 42.6% of total portfolio outstanding and 79.4% of active loans, with portfolio outstanding at ₹6.6 lakh crore. Asset quality in this segment remained stable, with PAR 31–90 at 1.4%.