Gold-Loan NBFC AUM to Exceed Rs 4 Lakh Crore by FY27 on Record Gold Prices: CRISIL

• Gold-loan NBFC AUM is projected to reach over Rs 4.0 lakh crore by March 2027, growing at a 40% CAGR.
• Record gold prices, up 68% in nine months, boost collateral values and lending capacity for NBFCs.
• Limited unsecured credit availability drives borrowers towards gold loans due to quick processing and easy access.
• NBFCs are expanding their footprint and branch networks to meet rising demand, despite bank competition.
• Revised LTV norms for lower-ticket gold loans, effective April 2026, will further support growth by increasing lending headroom.

Why It Matters: Gold-loan NBFC AUM is set for significant growth, driven by high gold prices, demand for secured credit, and regulatory support.