National News

Outstanding bank loans against gold more than doubled in a year

Published

1 year ago

May 2, 2025

In an unexpected divergence within India’s financial system, the fiscal year ending March 2025 witnessed a dramatic surge in gold-backed loans, even as overall credit growth decelerated. According to Reserve Bank of India (RBI) data, loans against gold more than doubled, rising by 103% from just over ₹1 lakh crore to nearly ₹2.1 lakh crore. This made gold loans the fastest-growing segment in the Indian credit market, outpacing all other lending categories.

This sharp growth in gold-backed lending occurred against the backdrop of slowing overall bank credit, which grew at 11% in FY25, down from a robust 20% in FY24. The contrast highlights both the resilience of asset-backed borrowing during times of economic strain and the evolving financial preferences of Indian households and small businesses.

Three key factors drove this boom:

Regulatory Reclassification by the RBI: In 2023, the RBI issued a directive requiring banks to reclassify many agricultural loans as loans against gold jewellery. This not only improved transparency but also artificially inflated the category’s growth figures. Banks traditionally prefer to label rural gold loans as agricultural credit to take advantage of lower interest rates and lenient repayment norms attached to farm lending.
Shift from NBFCs to Banks: Another major catalyst was the RBI’s move to curb gold lending by large non-banking financial companies (NBFCs), which had become dominant players in the sector. With regulatory limits in place, borrowers—especially those in rural and semi-urban areas—began shifting back to traditional banks for their gold loan needs.
Gold Price Appreciation: The continued rise in gold prices significantly boosted the borrowing capacity of individuals. Since loans are typically offered as a percentage of the gold’s market value, higher prices meant that customers could secure larger loan amounts without pledging more jewellery.

The explosion in gold loan volumes reveals much about the Indian financial ecosystem. On the one hand, it suggests increased financialisation of household assets, particularly gold, which has long been a preferred store of wealth in Indian society. On the other hand, it points to underlying financial stress, as households appear to be leveraging personal assets to meet liquidity needs in a slowing economy.

At a systemic level, the phenomenon underscores the interplay between regulatory decisions and credit flows, demonstrating how RBI’s interventions can redirect borrowing channels. While the gold loan segment soared, the broader deceleration in credit—from 20% to 11% year-over-year—raises concerns about investment appetite and consumption momentum, especially in key sectors like industry, infrastructure, and MSMEs.

National News

MMTC-PAMP Appoints Sidharth Malhotra As Brand Ambassador

As Part Of The Association, Sidharth Will Lead MMTC-PAMP’s New Integrated Campaign, ‘Purest And More,’ Showcasing The Brand’s Expanding Portfolio Across Physical Precious Metals, Digital Investments and Responsible Gold Recycling.

Published

1 day ago

August 27, 2026

JewelBuzz Spread The Buzz

MMTC-PAMP, India’s only London Bullion Market Association (LBMA)-accredited Good Delivery Gold & Silver refiner, today announced acclaimed actor Sidharth Malhotra as its Brand Ambassador, marking a significant milestone in the brand’s journey to strengthen its connection with a new generation of consumers. As part of the association, Sidharth will lead MMTC-PAMP’s new integrated campaign, ‘Purest And More,’ showcasing the brand’s expanding portfolio across physical precious metals, digital investments and responsible gold recycling.

The integrated campaign showcases MMTC-PAMP’s complete ecosystem, from 24K 999.9+ purest gold and silver coins and bars to digital gold and silver, gold recycling, online purchasing and assured buyback services. Through relatable, everyday moments and festive celebrations, the campaign reinforces MMTC-PAMP’s position as India’s most trusted precious metals brand while making gold ownership more relevant, accessible and convenient for today’s consumers.

Announcing the association, Samit Guha, Managing Director and CEO, MMTC-PAMP said:

“We are delighted to welcome Sidharth Malhotra to the MMTC-PAMP family. Sidharth has built a strong reputation through authenticity, credibility and a modern outlook—qualities that closely reflect the values of our brand. As one of India’s most admired and influential actors, he enjoys a deep connect across generations, making him an ideal ambassador as we continue expanding the reach of MMTC PAMP among both seasoned investors and first-time buyers.

This partnership comes at an exciting phase in our growth as we continue to redefine precious metals ownership through innovation, responsible sourcing and world-class quality. Through our ‘Purest And More’ campaign, we are showcasing how MMTC-PAMP today offers far more than physical gold—from digital investments and online buying to gold recycling and assured buyback—while remaining uncompromising on purity and trust.”

The campaign film unfolds through a series of relatable family moments around a wedding celebration, with Sidharth naturally introducing consumers to MMTC-PAMP’s diverse offerings. The storytelling highlights that every MMTC-PAMP offering is backed by the brand’s commitment to purity, trust and convenience while reinforcing its promise of “Purest And More.”

Speaking on the association, Sidharth Malhotra said:

“MMTC-PAMP has built a remarkable reputation for purity, trust and innovation, while also modernising the way people invest in and experience precious metals. Whether it’s celebrating life’s milestones, building long-term wealth or embracing more responsible choices through recycled gold, the brand continues to stay relevant for today’s consumers. I’m excited to be part of this journey and look forward to connecting with people through the ‘Purest And More’ campaign.”

The association brings together one of India’s most recognised actors with one of the country’s most trusted precious metals brands at a time when consumer interest in certified physical gold, digital gold and sustainable precious metals solutions continues to grow. With Sidharth Malhotra as the face of the brand, MMTC-PAMP aims to further strengthen its leadership position while deepening engagement with a younger, digitally connected audience.

The campaign will be amplified across television, digital platforms, social media, print, retail stores and e-commerce channels, with dedicated creatives highlighting key offerings including digital gold and silver, festive gifting, Virasat recycled gold, Akshaya Tritiya, Diwali and MMTC-PAMP’s certified purity credentials.

Link to the TVC (YouTube):