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As gold prices hit historic highs, gold loans surge

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For generations, the “locker of the house”—the family’s ancestral gold— was a sacred reserve of last resort. To pledge a wife’s mangalsutra or a grandmother’s bangles was a mark of deep financial shame, the ultimate signal of a family in distress.

But a fundamental shift in the Indian psyche is turning that social taboo into a sophisticated financial strategy. As gold prices hit historic highs, what was once “idle” jewelry is being recast as a high-octane asset class, driving triple-digit growth across the sector and attracting a new breed of affluent borrower.

The shift is most visible in the scale of borrowing. Historically, the gold loan market was dominated by the small borrower, with loans under Rs.2.5 lakh ($3,000) making up 60% of the market.

New data from CRIF High Mark reveals a sharp reversal:

  • FY2025: Small-ticket loans dipped to 51% of the market.
  • Current Fiscal (8 Months): Small-ticket loans have cratered to just 40%.

The vacuum is being filled by entrepreneurs and high-net-worth individuals (HNIs) who are using gold as collateral to secure single-digit interest rates for business expansion, often bypassing more expensive unsecured loans.

According to a Morgan Stanley note in Oct 2025, India holds about 34,600 tonnes of gold, valued at approximately ₹550 lakh crore. In comparison, the value of gold loans in India stands at around ₹15 lakh crore, against which nearly ₹25 lakh crore worth of gold is pledged.

Why Monetization Failed Where Loans Succeeded

The trend represents a private sector victory where government policy stumbled. In 2015, the Reserve Bank of India (RBI) launched the Gold Monetization Scheme to bring an estimated 25,000 tonnes of privately held gold into the formal economy.

The policy failed largely due to sentimental barriers. To earn interest, owners had to melt their jewelry into bullion, effectively destroying the artistic value and ancestral craftsmanship of heirlooms.

A Structural Change

Banking analysts suggest this is not a temporary spike, but a structural realignment in how India perceives wealth. The modern borrower is increasingly pragmatic, prioritizing the cost of capital over the stigma of the pawnshop.

As banks and NBFCs digitize the process—offering doorstep pick-up and instant credit—the traditional local moneylender is being replaced by fintech-driven platforms and institutional vaults.

The family gold is finally stepping out of the shadows—returning not as ornamentation, but as a powerful line of credit.

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National News

Mark this Mother’s Day with something as precious as she is, with Candere by Kalyan Jewellers

Celebrate her with thoughtfully crafted jewellery that reflects love, elegance, and everyday beauty

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Mother’s Day isn’t just about marking a date; it’s about recognising the everyday moments, the quiet sacrifices, and the effortless grace that often go unnoticed. The most meaningful gifts, then, are those that feel personal—pieces she’ll reach for not just on special occasions, but as part of her everyday life.

In this context, jewellery becomes more than an accessory. It transforms into a keepsake—something that reflects her personality, complements her style, and stays with her through both daily moments and special occasions. Jewellery feels especially fitting here; it mirrors how precious she is, making it not just a gift, but a meaningful reflection of her worth.

From subtle essentials to more expressive designs, Candere, a lifestyle jewellery brand under the house of Kalyan Jewellers, brings together pieces that are easy, wearable, and genuinely thoughtful—perfect for celebrating her in a way that feels natural, not overdone.

Here’s a curated Mother’s Day edit:

Rylie Diamond and Fancy Gemstone Ring


Playful yet refined, this rose gold ring by Candere features a floral-inspired cluster of vibrant pink stones, framed with delicate diamond accents. The open-ended design adds a contemporary twist, with a contrasting circular motif that brings balance and visual interest. Light, expressive, and easy to style, it’s perfect for adding a pop of colour to both everyday looks and special occasions.

Plain Glimmer Diamond V Ring


Sharp, minimal, and very easy to style, this V-shaped ring is all about clean lines. The diamond detailing adds a light sparkle without changing the simplicity of the design. It’s the kind of piece that works well for stacking or wearing on its own when she prefers something understated.

Classic Treand Diamond Cuff Bracelet


A refined blend of colour and craftsmanship, this rose gold bangle by Candere features elegant twin motifs accented with vibrant blue stones and delicate diamond detailing. The sleek, open-ended design keeps it light and versatile, while the intricate elements add just the right amount of character. Perfect for elevating everyday looks or adding a subtle statement to occasion wear, it’s a piece that balances tradition with a modern edge.

Enchanting Floral Diamond and Fancy Gemstone Oval Bracelet

Delicate with a playful twist, this rose gold bangle features a sleek, minimal band accented by a circular motif of multicoloured gemstones and subtle diamond detailing. The vibrant stones add a touch of personality, while the refined silhouette keeps it elegant and easy to wear. Perfect for everyday styling or adding a hint of colour to special moments, it’s a piece that feels both modern and effortlessly graceful.

Armida Diamond Earrings


Sleek with a hint of movement, these gold earrings feature layered, curved forms lined with shimmering diamonds. The cascading drop elements add fluidity and elongation, creating a striking yet balanced silhouette. Designed to catch the light with every turn, they bring a refined edge to both occasion wear and elevated everyday styling.

Giselle Diamond Dangle Earrings


With a graceful drop design, the Giselle Diamond Dangle Earrings bring a sense of movement and lightness. The cascading diamonds add just the right amount of brilliance, making them perfect for evenings or celebratory moments, while still maintaining a sense of everyday elegance.

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