NBFC Gold Loans Skyrocket 70% to ₹3.41 Lakh Crore
By Business Desk
NBFC gold-backed lending surged 69.3% YoY to ₹3.41 lakh crore by June 2026, outpacing retail loan growth, according to RBI data.
Non-banking financial companies (NBFCs) experienced a substantial surge in gold-backed lending, with outstanding loans against gold jewellery reaching ₹3.41 lakh crore by the end of June 2026. This represents a robust 69.3% year-on-year increase, according to data released by the Reserve Bank of India (RBI).
This significant expansion in gold loans notably outpaced the overall retail loan portfolio growth of NBFCs, which stood at 20.3% year-on-year. The RBI highlighted ‘housing’, ‘vehicle’, and ‘loans against gold jewellery’ as key drivers of the strong credit growth within the retail loan segment.
Regulatory Framework Amidst Sustained Growth
The continued growth in gold-backed lending coincides with an enhanced regulatory framework for loans against gold and silver collateral, which the RBI introduced in June 2025. This framework was a direct response to supervisory concerns identified in September 2024.
- Deficiencies in third-party involvement for sourcing and appraisal were noted.
- Inadequate due diligence practices were a concern.
- Weaknesses in monitoring loan-to-value ratios were observed.
- A lack of transparency during auctions of gold jewellery in default cases was identified.
The RBI had also previously urged regulated entities to closely monitor their gold-loan portfolios, acknowledging the substantial growth already observed among some lenders.
Uneven Credit Performance Across Sectors
While gold loans demonstrated robust expansion, credit growth across other sectors presented a more varied picture. Credit to industry saw a moderation, growing by 6.7% year-on-year, down from 10.3% in June 2025, primarily due to subdued growth in infrastructure.
- The services sector experienced a moderation in credit growth to 17.6%, from 22.4% a year earlier.
- Commercial real estate, however, recorded strong expansion within the services sector.
- Agriculture and allied activities showed a sharp increase in credit growth, reaching 17.9% in June, significantly higher than the 5.1% recorded a year prior.
This provisional sectoral credit data is based on a sample of NBFCs in the Upper and Middle Layers, along with housing finance companies, collectively representing approximately 87% of the total credit covered by the RBI’s reference data.