India’s gold loan portfolio is on track to reach ₹30 lakh crore (approx. $360 billion) by March 2028, up from ₹18 lakh crore a year earlier, according to a new assessment by domestic rating agency ICRA.
The projection underscores the sector’s accelerating momentum, with lenders increasingly viewing gold-backed credit as a core growth engine rather than a niche product.
Over the last two fiscal years ending March 2026, the overall gold lending market expanded by 38% annually.
The surge is being fueled by divergent growth rates between traditional banks and non-banking financial companies (NBFCs).
Over the last two fiscal years ending March 2026, the overall gold lending market expanded by 38% annually.
While banks grew their books at a steady 35%, NBFCs posted a sharper 54% increase, reflecting their aggressive push into semi-urban and rural markets where gold holdings are high but formal credit access remains limited.
This rapid scaling has intensified competition, prompting large NBFCs to pursue mergers and acquisitions to consolidate market share.