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Gold Loans Average Ticket Size Jumps 39% YoY to ₹1.96 lakh

Analysts Attribute the Sharp Trajectory to Enhanced Collateral Valuations, Which Have Allowed Borrowers to Leverage Existing Assets for Higher Credit Limits

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Driven by a sustained rally in bullion prices, India’s gold loan market is experiencing unprecedented growth. The average ticket size surged 39% year-over-year to Rs.1.96 lakh in FY26, effectively doubling over three years. This nationwide portfolio expansion underscores robust credit demand and a broader penetration of formal financial services across demographics.

Gold loans have become the largest securitised asset class in India during the April-June quarter of FY27, overtaking vehicle loans for the first time this financial year, according to a CRISIL Ratings report. The report showed gold loans accounted for around 31% of total securitisation volumes, ahead of vehicle loans at 26%, as overall issuances rose 22% year-on-year to about Rs.60,000 crore.

Analysts attribute the sharp trajectory to enhanced collateral valuations, which have allowed borrowers to leverage existing assets for higher credit limits amid tightening liquidity in alternative retail segments.

The growth story is also becoming increasingly broad-based across the country. While southern India remains an important market for gold loans, there is strong momentum in newer geographies, according to Experian, a provider of credit information.

Strong YoY sourcing growth in FY26 was seen in states such as Uttar Pradesh (+138%), West Bengal (+112%), Rajasthan (+105%) and Maharashtra (+102%), highlighting growing acceptance of gold-backed lending beyond its traditional regional concentration and indicating a broader pan-India expansion trend

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Joyalukkas to Supply 1-Gram Gold Rings to 4.41 Lakh Newborns Under Tamil Nadu Government’s “Thai Maman Thanga Mothiram” Scheme

Joyalukkas to supply 1-gram gold rings to 4.41 lakh newborns under the Tamil Nadu Government’s welfare scheme

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Joyalukkas, one of India’s most trusted jewellery retail brands, has been selected as the L1 bidder for the Government of Tamil Nadu’s “Thai Maman Thanga Mothiram Thittam” scheme, under which 441,667 newborn babies will receive 1-gram gold rings.

The scheme covers newborn babies delivered in Government hospitals in Tamil Nadu. The initiative will cover eligible newborns from June 22, 2026, until the end of the current financial year.

Under the tender, Joyalukkas quoted a symbolic service charge of just 1 paisa above the prevailing gold rate. The quote covers the supply of the gold rings along with applicable making charges and associated costs, with Joyalukkas offering the service at virtually no profit. The cost of the gold will be borne by the Government of Tamil Nadu at the prevailing market rate.

The tender is valued at approximately ₹755 crore, with the gold component forming the major part of the overall procurement value. Joyalukkas’ 1-paisa quote reflects the company’s commitment to supporting the Government of Tamil Nadu’s welfare initiative rather than pursuing commercial margins from the programme.

The “Thai Maman Thanga Mothiram Thittam” is a welfare initiative aimed at providing a 1-gram gold ring to eligible newborn babies as a gesture of care, prosperity and social support. By extending the benefit to babies born in Government hospitals, the scheme seeks to support families accessing public healthcare across the state.

Commenting on the selection, Joy Alukkas, Chairman and Managing Director, Joyalukkas Group said:

“We are honoured to be associated with the Government of Tamil Nadu’s Thai Maman Thanga Mothiram Thittam. This is a meaningful initiative that touches the lives of thousands of families across the state. Our decision to quote just 1 paisa above the prevailing gold rate reflects our commitment to contributing to this important welfare programme without seeking additional commercial margins. We will ensure that every ring supplied meets the highest standards of purity, quality and hallmarking.”

With a strong presence across Tamil Nadu and decades of expertise in jewellery manufacturing and retail, Joyalukkas is well positioned to execute this large-scale supply efficiently and with the highest standards of quality and transparency.

The official work order is expected to be issued shortly, following which Joyalukkas will commence the supply of rings in coordination with the concerned Government departments.

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