Gold loans surge as banks shift gears in 2025
Gold loans have jumped a massive 125% this year, way ahead of regular bank credit growth.
High gold prices are making it easier for people to get bigger loans against their jewelry, and banks are leaning into these safer, secured options.
Why does this matter?
Gold loans now make up 12% of all new credit. This shift may be helping to move lending out of the shadows and into the formal system.
Gold loans are increasingly providing more people with access to legitimate financing when they need it.
What's behind the trend?
Banks are stepping back from risky unsecured lending like credit cards (which barely grew), while the RBI's recent farm loan changes are also pushing more folks toward gold-backed borrowing.
It's a sign that in uncertain times, secured credit is becoming the go-to choice.