Loans Against Gold Jewellery Recorded Triple Digit Growth, Says RBI Bulletin

Now it is the peak season for buying gold as many nuptials are underway. The gold price is seeing a great hike compared to the last few months. According to the RBI Bulletin, gold loans have seen growth by triple digits since February 2025.

The Reserve Bank of India’s December 2025 report said that, due to strong gold values and demand for secured credit, gold loans in India increased by 128.5% to Rs. 3.38 lakh crore by October 2025.

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The proportion of gold loans in overall non-food credit is still comparatively small, but it has nearly doubled in the last year, indicating a significant change in borrowing behavior.

According to the report, the recent surge in gold-backed lending suggests a notable change in household financial behavior, with families increasingly using idle gold assets to cover their consumption and liquidity requirements in the face of changing economic circumstances.

Additionally, the trend reflects a larger move towards asset-backed borrowing, notably among families and small businesses looking for cash without taking on long-term debt. Gold loans often have lower interest rates and faster disbursement than credit cards or personal loans, making them ideal for covering seasonal costs, emergency expenditures, or working capital needs.

The RBI said that, in spite of the strong expansion, the total exposure remains controlled, which reduces the risk to financial stability right away.

The growth of gold loans has occurred concurrently with a fall in inflation and robust local demand, both of which have contributed to the overall expansion of credit across industries, as reported by ANI.