Gold loans surge as India's fastest cash option amid import duty hike

Rising import costs and tighter credit conditions are pushing Indian consumers toward gold-backed lending, reshaping the domestic credit landscape.

By Handelsavisen Newsroom · Automated 2026-07-17 09:53 UTC · 1 min read

Gold loans are emerging as the fastest-growing source of quick cash for Indian consumers, according to a recent discussion with TransUnion CIBIL leadership.

Bhavesh Jain, MD and CEO of TransUnion CIBIL, highlighted the trend in a podcast with The Hindu Businessline, noting that the shift reflects broader changes in India's credit landscape.

The government recently raised import duties on gold and silver to 15% from 6%, a move aimed at curbing bullion purchases and reducing the current account deficit.

As traditional lending channels face scrutiny and interest rates remain elevated, households are increasingly turning to their gold holdings to secure liquidity.

The pivot toward gold loans comes against a backdrop of significant policy shifts in India, the world's second-largest gold consumer.

The government recently raised import duties on gold and silver to 15% from 6%, a move aimed at curbing bullion purchases and reducing the current account deficit.

Prime Minister Narendra Modi has also publicly urged citizens to reduce their reliance on physical gold, promoting alternative investment avenues instead.