Gold Loans Go Mainstream: India Market Set for 26% Growth by FY26

• India's gold loan market is projected to grow by 26% by FY26, reaching ₹15 lakh crore.
• The market is shifting from a "last-resort" option to a mainstream credit choice due to structural changes and regulatory clarity.
• RBI's tiered loan-to-value (LTV) framework and relaxed operations are boosting borrower confidence, especially for rural and MSME sectors.
• Rising gold prices have increased collateral but also heightened asset-quality risks for lenders, leading to refined risk models.
• Gold loans offer advantages like low entry costs, flexible repayment, and no prepayment penalties, appealing to diverse borrowers.

Why It Matters: Gold loans are now a mainstream, flexible credit choice for Indians.