Gold loans jump over 50% YoY, drive India's retail credit growth: Report
New Delhi, May 20
India's retail lending market continued to expand in Q4 FY26, though growth moderated sequentially to 4.6 per cent quarter-on-quarter, with gold loans emerging as the biggest driver as lenders increasingly shifted toward secured and collateral-backed credit, according to CRIF High Mark's latest "How India Lends - Credit Landscape in India" report.
The report said total retail loans outstanding reached Rs 170.2 lakh crore as of March 2026, registering a 16.6 per cent year-on-year growth and a 4.6 per cent quarter-on-quarter increase. Consumption loans grew 15.3 per cent year-on-year to Rs 118.6 lakh crore.
The report highlighted that growth in the retail credit market is increasingly shifting toward secured lending, led by gold loans and supported by stable housing finance. It identified "shift toward secured and collateral-backed growth" as one of the key themes shaping the lending landscape.
Gold loans emerged as the fastest-growing segment, with portfolio outstanding rising 50.4 per cent year-on-year to Rs 18.6 lakh crore and 15 per cent quarter-on-quarter. The report attributed the growth to "elevated gold prices, larger ticket sizes and regulatory tailwinds".
"Gold loans were the standout growth driver," the report said, adding that the segment also showed improving delinquency trends, reinforcing its role as "the strongest engine of retail credit growth in FY26."
Adding perspective on the segment's structural growth, Mohit Jain, Group Head at Axis Bank, said the gold loan segment has "now emerged as the second-largest product in retail lending after home loans, underscoring its growing relevance in customer credit portfolios."
He further said, "We are also witnessing a shift toward higher ticket sizes, and more income-generating end uses, reflecting evolving borrower needs and increased comfort with loans against gold."
On the housing segment, the report said home loans maintained steady momentum, with portfolio outstanding reaching Rs 44.4 lakh crore, up 9.4 per cent year-on-year and 3.4 per cent quarter-on-quarter. The report noted that growth in balances continued to outpace active loan growth, indicating "continued premiumization and a shift toward larger ticket-size mortgages."
Pankaj Gadgil, MD and CEO of Aditya Birla Housing Finance Ltd, said India's housing finance market remains "structurally resilient," supported by urbanisation, favourable demographics and improving affordability.
"The next phase of growth will be defined by the ability to balance expansion with discipline--leveraging technology & AI, strengthening distribution, ecosystem linkages, and maintaining consistent asset quality to deliver sustainable outcomes," Gadgil said.
The report also said personal loans grew 12.9 per cent year-on-year, while consumer durable loans expanded 20.8 per cent. Vehicle loans posted double-digit annual growth, though originations momentum moderated after the festive season.
CRIF High Mark noted that portfolio quality improved across most retail lending categories, with delinquency levels easing across secured segments, including home loans and gold loans.
At the same time, some unsecured and consumption-linked categories showed signs of slowdown in Q4 FY26. Auto loan originations declined 11.6 per cent quarter-on-quarter, while two-wheeler loan originations fell 22.1 per cent sequentially following the festive season. Credit card balances also remained subdued, staying flat year-on-year and negative on a sequential basis.
— ANI
Reader Comments
Interesting to see that while consumption loans grew 15%, personal loans are still up 12.9%. But the drop in auto and two-wheeler loans after Diwali is expected—everyone bought during the festive season. India's retail credit story is becoming more mature, with focus on assets like gold and homes.
Gold loans at 50% growth? That's huge! But I hope people are not overleveraging themselves. My concern is that if gold prices correct, some borrowers might get caught. The report mentions improving delinquency trends, so that's reassuring. Still, caution is needed.
Good to see home loans still growing at 9.4%—it shows the housing story is real, especially in tier-2 cities like my hometown. But the premiumization trend they mention is a worry: affordable housing seems to be getting left behind. Hope the government addresses this.
The shift to secured lending is a positive sign for financial stability overall. Gold loans at Rs 18.6 lakh crore is a massive number—almost 11% of all retail credit! I just hope the regulatory tailwinds mentioned don't become headwinds if the economy slows.
I work in a bank and I can tell you—gold loan demand is sky-high in rural areas. Farmers use it for seeds, fertilizer, and even weddings! But the rise in ticket sizes is interesting; maybe people are using it for bigger purposes like education or business expansion. 50% growth is no joke!
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