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Gold loans shine brightest in India’s retail credit segment

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According to Reserve Bank of India (RBI) data, outstanding loans against gold jewellery soared 103% to ₹2.09 lakh crore as of March 2025, up from ₹1.03 lakh crore a year earlier, making gold loans the fastest-growing category even as overall bank credit growth slowed

Several factors have converged to fuel this remarkable expansion:

  • Rising Gold Prices: The value of pledged jewellery increased as gold prices surged, enabling borrowers to secure larger loans against the same collateral.
  • Regulatory Shifts: The RBI’s crackdown on unsecured lending, particularly personal and microfinance loans, prompted both banks and non-banking finance companies (NBFCs) to pivot toward secured lending products like gold loans
  • Loan Reclassification: In 2023, the RBI directed banks to reclassify certain agricultural loans as gold loans, further boosting the reported figures
  • Shift from Informal to Formal Sector: Regulatory tightening and digital onboarding have encouraged borrowers to move from informal lenders to banks and NBFCs, especially in southern India where gold-backed lending is deeply entrenched

Market Impact and Outlook

Gold loans now account for approximately 3.5% of total retail credit, up from 1.2% five years ago 

Lenders highlight the appeal of gold loans for their low credit risk and quick disbursal, with repeat customers often leveraging rising gold prices to refinance or increase their borrowing limits.

Contrary to popular perception, gold loans are not limited to financially distressed borrowers. Banks report growing demand from small businesses and middle-class households seeking short-term working capital, with average ticket sizes exceeding ₹1 lakh and low default rates.

 

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JB Insights

Jewellery-Inspired Eyewear Emerges As Fashion’s Latest Luxury Statement

Crystal embellishments, sculptural silhouettes and gemstone-inspired details are redefining luxury eyewear as collectible fashion accessories.

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Jewellery-inspired eyewear is emerging as one of fashion’s biggest trends, with luxury sunglasses becoming statement accessories that go far beyond sun protection. Designed with crystal embellishments, sculptural silhouettes and jewellery-inspired detailing, these pieces are transforming everyday looks into standout style statements.

From weddings and brunches to holidays, race days and special occasions, statement eyewear is becoming an essential fashion investment. More than just accessories, these designs are meant to spark conversations, complement personal style and elevate any outfit.

Among the standout names driving this trend is Gentle Monster, whose Bijou De 02 from its 2025 Jewelry Collection features an oval silver-metal frame inspired by precious jewellery. The collection reimagines eyewear as wearable jewellery with intricate structural detailing, making each piece both a fashion accessory and a design object.

Swarovski continues to elevate crystal-studded eyewear with its Mask Shape SK7024, inspired by the brand’s Hyperbola jewellery family. The wraparound design incorporates flowing silver-tone curves adorned with round- and square-cut crystals, reflecting Swarovski’s signature approach to crystal craftsmanship.

Indian designer Bhavya Ramesh brings handcrafted artistry into eyewear with the Hysteria Sunglasses, featuring sterling silver, tribal-inspired metalwork, brass ghungroos and intricate handcrafted detailing by Jaipur artisans. The design celebrates India’s jewellery-making traditions while offering a bold contemporary aesthetic.

Hellcat Eyewear’s Red Hand Sunglasses embrace the growing trend of sculptural, jewellery-inspired frames with bold artistic detailing, reflecting fashion’s shift towards statement eyewear that doubles as wearable art.

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JewelBuzz is Asia’s First Digital Jewellery Media & India’s No.1 B2B Jewellery Magazine, published by AM Media House. Since 2016, we’ve been the trusted source for jewellery news, market trends, trade insights, exhibitions, podcasts, and brand stories, connecting jewellers, retailers, and industry professionals worldwide.

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