NBFC gold loans continue near 70% growth, reach Rs 3.41 lakh crore in June: RBI
New Delhi, August 8
Gold-backed lending by non-banking financial companies continued to grow at nearly 70 per cent year-on-year in June 2026, extending the sharp expansion seen in the previous month, according to data released by the Reserve Bank of India.
Outstanding NBFC loans against gold jewellery rose 69.3 per cent year-on-year to Rs 3.41 lakh crore at the end of June 2026, after recording 69.9 per cent growth in May.
The latest numbers indicate that the strong growth in gold-backed lending has continued into June, with loans against gold jewellery growing significantly faster than the overall retail loan portfolio of NBFCs.
Retail loans grew 20.3 per cent year-on-year in June 2026, accelerating from 14.3 per cent growth recorded a year earlier.
"Within retail loans, 'housing', 'vehicle' and 'loans against gold jewellery' segments displayed robust credit growth," the RBI said in its sectoral deployment of credit release.
According to the accompanying RBI data, outstanding retail loans increased to around Rs 25.62 lakh crore in June 2026 from Rs 21.29 lakh crore a year earlier.
Within retail lending, housing loans grew 11.4 per cent year-on-year to around Rs 8.44 lakh crore, while vehicle loans increased 15.2 per cent to around Rs 6.24 lakh crore. Consumer durable loans recorded a sharper 46.8 per cent rise to Rs 72,201 crore.
The continued expansion in gold-backed lending comes as the RBI has strengthened the regulatory framework governing loans against gold and silver collateral.
The central bank had issued the Reserve Bank of India (Lending Against Gold and Silver Collateral) Directions, 2025 in June last year, laying down a harmonised regulatory framework for such loans across regulated entities, including NBFCs.
The directions followed supervisory concerns flagged by the central bank in September 2024. RBI had identified deficiencies in gold-loan practices, including shortcomings in the use of third parties for sourcing and appraisal of loans, inadequate due diligence, weaknesses in monitoring loan-to-value ratios and lack of transparency during auctions of gold jewellery in cases of default. RBI had also asked regulated entities to closely monitor their gold-loan portfolios in view of significant growth seen at some lenders.
However, the growth was uneven across sectors. Credit to industry grew 6.7 per cent year-on-year, slowing from 10.3 per cent in June 2025. The RBI said the moderation was "primarily driven by subdued growth in infrastructure, a major constituent of the segment."
Services sector credit growth also moderated to 17.6 per cent from 22.4 per cent a year earlier. Commercial real estate recorded strong expansion, while growth in credit to trade and transport operators moderated.
Agriculture and allied activities, on the other hand, recorded credit growth of 17.9 per cent in June, sharply higher than 5.1 per cent a year earlier.
The RBI said the provisional sectoral credit data are based on a sample of NBFCs in the Upper and Middle Layers and housing finance companies, which together account for about 87 per cent of total credit covered by the central bank's reference data.
— ANI
Reader Comments
My grandmother's gold jewellery has been sitting in the bank locker for years. Now I understand why these loans are so popular—the interest rates are reasonable and the process is so simple. These NBFCs are doing a great job serving rural India.
This is concerning honestly. 😐 While gold loans are convenient, the speed of growth makes me wonder about over-leveraging. We saw what happened with the microfinance crisis in 2010. Hope RBI's new guidelines ensure these companies don't exploit vulnerable families who pawn their last bit of jewellery.
In our village in UP, gold loans are the only option for farmers before harvest season. The 17.9% growth in agriculture credit and 70% in gold loans go hand in hand. At least the RBI is monitoring this sector closely now after those issues in 2024.
People forget our culture sees gold as security, not just ornament. My aunties have been taking gold loans for years for everything from daughter's wedding to medical emergencies. 3.41 lakh crore shows how much faith Indians have in their gold. Strong cultural plus financial logic here!
Good that RBI has tightened the rules after those malpractices in 2024. My friend had a terrible experience with an NBFC who undervalued her gold during verification. Regulations need to be stricter on transparency. Growth is great, but protecting customers matters more.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.