Indian banks ramp up gold loans to win NBFC customers
Indian banks are stepping up their gold loan game, hoping to win over customers from NBFCs as demand keeps rising.
Union Bank of India, for example, now disburses gold loans at its 1,671 gold loan points, typically receive loans within 30 minutes, thanks to appraisers using weighing equipment, touchstones and acid testing kits, with its gold loan portfolio growing about 30% annually.
India's gold loans ₹18.6L cr
Other major banks aren't sitting still: Indian Bank identified 725 branches as Gold Shoppe branches and added 982 empanelled appraisers in just six months.
Indian Overseas Bank expanded its appraisal team and started tracking delays so things move faster.
Digital tools are also speeding up approvals: some banks now process gold loans in about 15 minutes.
CRIF estimates the gold loan market at ₹18.6 lakh crore at end-March 2026, up 50.4%, and it looks like the gold loan race is just getting started.