RBI Governor Sanjay Malhotra says India gold loans ₹20L/cr stable
Gold-backed loans in India have shot up to ₹20 lakh crore, with nonbanking financial companies, or NBFCs, making up ₹4 lakh crore of that.
The RBI is keeping a close eye on this trend, but Governor Sanjay Malhotra reassures everyone that things are stable thanks to strict loan-to-value rules and better asset quality.
Gold loan NPAs below 1%
Malhotra shared that gold loan nonperforming assets, or NPAs, are below 1%, so defaults aren't a big worry right now.
Rising gold prices and relaxed RBI regulations have made these loans more popular, letting people borrow more against their jewelry.
But there's a catch: most new loans come from repeat borrowers (82% in 2025), raising questions about whether lenders are just recycling the same customers instead of growing their base.