Summary of this article
NBFC gold loans surged 69.9 per cent year-on-year in May.
Outstanding gold loan portfolio reached Rs 3.29 lakh crore in May.
Commercial and retail lending grew, while industry credit growth slowed.
Loans against gold jewellery extended by non-banking financial companies (NBFCs) grew 69.9 per cent year-on-year in May 2026, the fastest among all lending segments, according to the latest Reserve Bank of India (RBI) data. Outstanding gold loans reached Rs 3.29 lakh crore, up from Rs 1.94 lakh crore a year earlier.
The rise reflects a continued increase in demand for loans backed by gold jewellery, which has emerged as the strongest-performing category in the NBFC lending portfolio.
Retail Credit Growth Remains Strong
Retail lending by NBFCs also recorded healthy growth during the month. Overall retail credit increased by 19.5 per cent year-on-year in May, compared with 14.9 per cent in the corresponding month of 2025.
Within the retail portfolio, housing, vehicle and loans against gold jewellery recorded strong growth. Among these, gold loans expanded at the fastest pace.
Gold loans are generally processed quickly and are backed by pledged gold, making them different from unsecured personal loans.
Commercial Lending Sees Sharp Increase
Apart from gold loans, lending to the commercial sector recorded the second-highest growth among NBFC loan segments.
Outstanding commercial credit rose 40.2 per cent year-on-year to Rs 1.19 lakh crore in May 2026 from Rs 85,317 crore a year earlier.
Credit to agriculture and allied activities also remained strong. Outstanding loans to the sector grew 17.9 per cent year-on-year in May, much higher than the 5.0 per cent growth recorded in the same month last year.
The increase suggests that lending to agriculture continued to improve compared with the previous year.
Industrial And Services Credit Slows
While retail and commercial lending remained strong, credit growth to the industrial and services sectors moderated.
Outstanding credit to industry increased 7.3 per cent year-on-year in May, lower than the 10.0 per cent growth recorded a year earlier. According to the RBI, the moderation was mainly due to slower growth in lending to infrastructure projects.
Credit growth to the services sector also slowed. Outstanding loans to the sector rose 16.7 per cent year-on-year in May, compared with 23.9 per cent in the corresponding month of 2025.
The latest RBI data shows that NBFC lending remained broad-based in May, with gold loans leading overall growth, while retail, commercial and agricultural credit continued to expand despite slower lending to industry and services.
