India’s gold loan market has emerged as the standout performer in retail credit, doubling in size over the past fiscal year and eclipsing the growth of traditional lending segments such as housing, vehicle, and even credit cards. 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 NBFCs such as Muthoot Finance and Manappuram Finance-where gold loans form a significant portion of assets under management-have reported record disbursements, despite recent RBI signals of stricter supervision and compliance requirements.

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. While the sector’s asset quality remains robust, analysts note a slight uptick in overdue loans, reflecting the broader economic environment.

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.

As India’s love affair with gold endures and regulatory dynamics continue to evolve, gold loans appear set to retain their glitter in the retail credit landscape.

Gold prices may have touched historic highs this Akshaya Tritiya, but that didn’t stop Indian consumers from making substantial purchases of the precious metal. Maharashtra-based P N Gadgil Jewellers recorded its highest-ever single-day festive sales, achieving a milestone turnover of Rs 139.53 crore on Akshaya Tritiya 2025 — marking a 35% growth over last year’s Rs 103.26 crore.

In terms of volume, the jeweller sold 122 kg of gold, up from 120.24 kg in 2024. Despite gold prices hovering between Rs 99,500 and Rs 99,900 per 10 grams, nearly 38% higher than last year’s Rs 72,300, consumers showed unwavering enthusiasm for festive gold buying.

P N Gadgil reported a 34% year-over-year growth in gold revenue, while diamond and silver segments saw 23% and 114% growth, respectively. Notably, even with a 31% increase in gold prices, the company witnessed a 1.46% rise in gold volume, and a significant surge in diamond and silver sales by 31% and 90%, respectively.

The bullish sentiment wasn’t limited to one retailer. Nationwide, gold and silver sales saw a massive upswing, with the Confederation of All India Traders (CAIT) estimating total trade on Akshaya Tritiya at Rs 16,000 crore, out of which Rs 12,000 crore was attributed to gold jewellery and related items.

This trend comes amid a spectacular five-year rally in gold prices — rising over 100% from Rs 47,677 per 10 grams in April 2020 to Rs 95,592 in April 2025. The yellow metal even crossed the Rs 1 lakh per 10 grams mark briefly on April 22, 2025 — a first in Indian history.

In an unforgettable celebration of craftsmanship and culture, Vummidi Bangaru Jewellers (India) Pvt. Ltd. (VBJ), and legendary fashion designer Anju Modi came together to orchestrate an evening of breathtaking artistry at The Leela Palace, Chennai.

Titled “An Affair of Glamour and Grandeur,” the evening marked a proud milestone — 125 years of VBJ, storied legacy — celebrated through an extraordinary convergence of heirloom jewellery and timeless couture. In a harmonious blend of tradition and innovation, Anju Modi’s ethereal creations found their perfect complement in VBJ’s intricate masterpieces, weaving a narrative that transcended generations.

The evening unfolded gracefully:
Guests were welcomed to a warm social hour before being transported into a world of enchantment by an emotive dance performance by Padma Bhushan awardee, Ms. Shobana. The crescendo of the night was an awe-inspiring runway presentation, thoughtfully curated in association with Evoluzione, featuring layered silhouettes, ornate bridal finery, and gleaming diamonds — each piece telling a story of India’s profound artistic passion.

Speaking at the event, Mr. Amarendran Vummidi and Mr. Jithendra Vummidi, Managing Partners of Vummidi Bangaru Jewellers (India) Pvt. Ltd, remarked: “At VBJ, every piece we create is an heirloom of emotion, craftsmanship, and history. As we celebrate 125 years, it is only fitting that we honor this journey with a collaboration that reflects India’s eternal spirit. Anju Modi’s revival of our weaving traditions mirrors our passion for preserving and evolving Indian craftsmanship. Tonight is not just about fashion; it’s about storytelling, legacy, and the soul of India.”

The runway’s finale was a moment of pride, with curators Ms. Vimmi, Ms. Ranjitha, and Ms. Sarika joining the Vummidi Bangaru Jewellers (India) Pvt. Ltd family and Anju Modi for a heartfelt final walk — a tribute to the artisans, designers, and patrons who continue to inspire VBJ’s vision.