Gold loans are rapidly emerging as one of India’s fastest-growing retail credit products, with sourcing surging 84 per cent year-on-year in FY26, outpacing all other segments, according to credit information bureau Experian.
The report highlights a sharp acceleration in growth momentum, with sourcing value rising to 84 per cent in FY26 from 69 per cent in FY25, reflecting robust demand and deeper market penetration. The industry’s portfolio has more than tripled, expanding to ₹19.4 lakh crore by March 2026 from ₹6.3 lakh crore in March 2023.
A key driver has been rising gold prices, which have enabled borrowers to unlock higher loan amounts. While the gold price index rose 144 per cent during the period, sanction amounts grew over 200 per cent. This has pushed average ticket sizes to double to ₹1.96 lakh in FY26 from ₹0.98 lakh in FY23.
Consumer behaviour is also evolving, with repeat borrowers accounting for around 75 per cent of new sourcing in Q4 FY26.
“India’s credit growth is increasingly being shaped by how effectively the financial ecosystem is enabling consumers to leverage existing assets to access formal credit,” said Manish Jain, Country Managing Director, Experian India. “The rapid growth of is helping households convert a traditionally held asset into accessible finance, supporting financial inclusion and meeting diverse funding needs,” he added.
The study revealed expansion is no longer limited to traditional southern markets, with strong growth recorded in Uttar Pradesh (+138 per cent), West Bengal (+112 per cent), Rajasthan ( per cent 105%) and Maharashtra ( per cent 102%). Asset quality has also strengthened alongside growth. Net 90+ delinquency improved to 0.2% in March 2026 from 0.4% three years earlier.