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Outstanding gold-backed loans  surge by  128% from a year earlier

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India’s appetite for borrowing against gold is reshaping the country’s credit landscape. Outstanding gold-backed loans have surged 128% from a year earlier, crossing Rs.4 lakh crore ($48 billion) for the first time, according to data from the Reserve Bank of India. As of Jan. 31, loans secured by gold jewellery stood at Rs.4,00,517 crore, marking one of the fastest expansions in retail credit in recent years.

The boom in gold loans has helped propel overall non-food bank credit growth to 14.4% year-on-year. Personal loans now account for 34.5% of total bank lending, outpacing other segments and underscoring a broader shift toward consumer-driven credit expansion

Gold loans alone contributed roughly 9% of incremental bank credit during the period. Between January 2024 and January 2026, outstanding gold-backed credit rose by nearly Rs.3.1 lakh crore—an increase of about 338% over two years—more than quadrupling the size of the portfolio.

Two factors are driving the surge. First, gold prices have climbed roughly 152% over the past two years, increasing the collateral value of household holdings. Second, regulatory guidance requiring banks to classify loans secured by gold explicitly as gold loans has sharpened reporting and accelerated balance-sheet growth in the segment.

The trend highlights a distinctive feature of India’s financial system: households’ vast stock of physical gold, long viewed primarily as a store of wealth, is increasingly being mobilized as collateral for formal credit.

While personal lending and credit to nonbank financial companies within the services sector continue to expand rapidly, industrial credit remains uneven. Loans to micro, small and medium enterprises are growing steadily, but borrowing by large corporations has stayed relatively muted.

Since March 21, 2025, banks have added Rs.21.8 lakh crore to their non-food loan books, translating into 12% growth for the financial year to date. Yet it is gold—rather than factories or infrastructure—that is emerging as one of the most dynamic engines of India’s current credit cycle.

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National News

Jewellery That Honors Her Journey: Celebrating Women’s Day with Kalyan Jewellers

A curated Women’s Day edit by Kalyan Jewellers brings together bold diamond statements and heritage-inspired gold designs that celebrate women’s strength, individuality, and personal milestones.

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This Women’s Day, celebrate women who lead with strength, ambition, and unmistakable individuality. Curated by Kalyan Jewellers, this jewellery edit brings together bold diamond statements and heritage-inspired gold designs that reflect confidence, resilience, and self-assured elegance. Each piece is more than adornment it’s a tribute to her journey, her choices, and the power she wears with pride.

The Heritage Bloom Gold Pendant

A beautifully sculpted floral pendant in luminous yellow gold, enhanced with refined dual-tone detailing. Its layered petal form evokes growth, resilience, and enduring grace an ode to traditions that evolve with time. Thoughtfully crafted for versatility, this piece moves effortlessly from everyday elegance to meaningful occasions, making it perfect for the woman who cherishes her roots while confidently carving her own journey forward.

The Duality Grace Drop Necklace

A sleek, contemporary drop pendant crafted in warm rose gold, this design brings together the subtle glow of pearls and the refined sparkle of diamonds in a striking vertical silhouette. The diamond-accented bar flows seamlessly into a luminous pearl drop, creating a poised balance between softness and strength. Its elongated form flatters the neckline while retaining a clean, minimalist appeal making it equally suited for polished workwear and effortless evening looks. Representing harmony between grace and confidence, this necklace is designed for the woman who carries both with ease.

The Empowered Band Diamond Ring

A striking geometric ring crafted in luminous yellow gold, this design features a layered arrangement of diamonds set within a sculptural frame. The structured silhouette and clean lines lend it a bold, contemporary edge, while the clustered diamonds add depth and radiant brilliance. Designed to make a statement without overwhelming, this ring embodies confidence, resilience, and modern femininity perfect for women who lead with purpose, whether in everyday power dressing or standout occasions.

The Everyday Brilliance Diamond Tennis Bracelet

A continuous line of radiant diamonds set in yellow gold, this timeless tennis bracelet embodies understated luxury and enduring strength. Each precisely set stone creates a fluid rhythm of light, resting effortlessly on the wrist with refined elegance. Designed for seamless day-to-evening wear, it adds just the right touch of sparkle without ever overpowering the look. A symbol of quiet confidence and everyday victories, this piece celebrates the grace and resilience with which she moves through every role she owns.

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