Summary of this article
India's outstanding gold loan market nearly tripled to Rs 22 lakh crore.
Women and Gen Z borrowers are driving gold loan adoption.
Repeat borrowing increased, but repayment delays remain a concern.
Gold loans have grown rapidly in India over the past three years. More borrowers are taking loans against their gold jewellery, and in larger amounts. Total outstanding gold loan amount reached Rs 22 lakh crore in July 2026, with 5.4 crore active borrowers and an average loan balance of Rs 4.1 lakh per borrower, according to a study by TransUnion CIBIL.
The report, Lending Unlocked: Gold Loans, has found that the total amount of outstanding gold loans has nearly tripled since July 2023.
Fewer Gold Loans Disbursed, But Loan Amounts Increase
Between April and June 2026, lenders gave out 3.7 crore gold loans worth Rs 8.2 lakh crore. The number of loans fell by 15 per cent compared with the same period last year. However, the total loan amount increased by 12 per cent.
Loans worth more than Rs 2.5 lakh recorded 19 per cent growth year-on-year. This means that although fewer loans were given out, borrowers took larger amounts.
Non-banking financial companies (NBFCs) had the largest share of gold loans by number. However, public sector banks increased their share from 34 per cent in June 2023 to 37 per cent in June 2026. They also accounted for 48 per cent of the total loan amount during the latest quarter.
More Women And Young People Taking Gold Loans
Around 2.4 crore borrowers took gold loans between April and June 2026. Women accounted for 41 per cent of these borrowers, up by five percentage points compared with 2023.
Young borrowers also made up a larger part of the market. The number of Gen Z borrowers taking gold loans grew by 19 per cent in one year. They accounted for 21 per cent of all gold loan borrowers during the June 2026 quarter.
Gold loans are also becoming more common outside southern India. Southern states accounted for 68 per cent of borrowers, but their share fell by five percentage points compared with 2023.
Among other states, Assam recorded the highest growth in gold loan borrowers at 25 per cent over three years. Uttar Pradesh followed with 23 per cent growth.
Many Borrowers Take Another Gold Loan
The study has shown that one in two low-risk gold loan borrowers took another gold loan within 12 months. This was the highest repeat borrowing rate among the types of loans covered in the study.
However, the study has also pointed to repayment concerns. Around 29 per cent of borrowers who took gold loans of up to Rs 2.5 lakh had at least one loan payment overdue by 30 days or more before taking the gold loan.
