Explainer: Why gold loans are booming in India
India's gold loan market hit ₹15.6 trillion by November 2025—a 42% year-on-year increase to November 2025 (compared with November 2024).
With gold prices climbing, people can borrow more against their jewelry, and both retail and bank gold loans have skyrocketed.
Gold loans are now a necessity
Gold loans are now a go-to for quick cash, especially for small businesses, rural families, and retail borrowers.
NBFCs are major players in the segment.
Retail and bank loans both rising
Higher gold prices mean bigger loan amounts—loans above ₹2.5 lakh now make up half of all lending here.
Plus, over 900 new NBFC branches have opened in FY26 so far, and large NBFCs such as Muthoot FinCorp have been expanding their networks, making it even easier to access these loans.
What to expect next
NBFCs's assets under management are expected to grow in FY2026 as demand keeps rising and more branches open—so if you're thinking about leveraging your gold for some extra cash, you're definitely not alone!