Gold Loans Soar: India Sees 125% Growth Amid Rising Prices, Banks Dominate Market

• Gold loans are India's fastest-growing bank credit segment, increasing by 125% by November 2025.
• Outstanding gold loans surged from Rs. 898 crore in Nov 2023 to Rs. 3.5 lakh crore by Nov 2025, doubling in one year.
• Rising gold prices (64% in 2025) make gold loans more attractive, allowing higher loan amounts for less gold.
• Banks now lead the gold loan market with a 50.35% share, surpassing NBFCs like Muthoot Finance and Manappuram Finance.
• Other credit segments like vehicle, personal, and commercial real estate loans also show growth.

Why It Matters: Gold loans are booming in India, driven by rising gold prices and banks' increasing market share.