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 age where customers often arrive at the showroom already scrolling through comparisons, blogs, and influencer videos, having a knowledgeable and trustworthy sales team has never been more crucial. Jewel Goldi (India), sister concern to the prestigious Shree Ramkrishna Exports, has set a new benchmark by collaborating with the International Institute of Gemology (IIG) to empower its teams with future-ready skills through a customized corporate training program.

The truth about today’s consumer is simple yet profound: They are overwhelmed, not necessarily informed. While a quick search online offers thousands of options, it often leads to more questions than answers. And when customers step into a store, they seek not just beauty but guidance.

Understanding this shift, Jewel Goldi (India) embarked on a training journey with IIG that delved into Gemology, Jewellery Design Storytelling, Consumer Psychology, and Advanced Selling Techniques. The program was thoughtfully structured to help their team navigate the complex AIDA journey: Awareness, Interest, Desire, Action, seamlessly, ensuring that the customer’s path to purchase feels natural and fulfilling.

 Jitendra Jodhani, Director of Jewel Goldi (India), shared, “In today’s environment, a customer is looking for someone who can cut through the noise and offer clarity. Thanks to IIG, our team is now that voice of clarity, helping customers make informed, confident decisions.”

Interactive learning sessions, real-world case studies, practical gemstone identification, and customer engagement role-plays brought the learning alive, making sure that the knowledge wasn’t just understood; it was lived.

 Rahul Desai, CEO & Managing Director of IIG, added, “When a customer walks into your store, they don’t just want to buy; they want to believe. In an environment full of half-truths and endless options, a knowledgeable team member becomes the lighthouse. Our training was focused on helping the Jewel Goldi team become those trusted navigators in the customer’s journey.”

Backed by a passionate team of educators: Rajesh Patel, Gunjan Sapra, Anand Gusani, Ashwin Chandrasekhar, and Ritesh Shah; the training emphasized relevance, engagement, and practical value every step of the way.

By investing in human capital and future-proofing their workforce, Jewel Goldi (India) showcases a progressive mindset that more businesses are starting to adopt. In an increasingly competitive retail landscape, it is this commitment to quality training that separates good brands from great ones and ensures customers always find their way home to trusted names.