Gold loan defaults almost double since March with ₹22.5L/cr outstanding
Business
Gold loan defaults have almost doubled since March, with overdue loans now making up 0.3% of the total by August 2026.
At the same time, outstanding gold loans hit a massive ₹22.5 lakh crore, three times more than three years ago, showing just how quickly this sector is growing, but also how much stress is building up behind the scenes.
Loan value up 12% to ₹8.2L/cr
Even though fewer new gold loans were handed out (down 15%), the total value of these loans actually grew by 12% year-over-year to ₹8.2 lakh crore, meaning borrowers are taking bigger loans on average.
Interestingly, Gen Z borrowers jumped by 19% in just five months.
With more young people turning to gold loans and defaults rising, lenders may need to rethink how they manage risk and connect with new customers.