Indians Pledge ₹4 Lakh Crore Gold Amid Soaring Prices; 40% Rise Expected

• Indian citizens have pledged gold worth approximately ₹4 lakh crore, with this amount expected to increase by 40% by next year due to rising gold prices.
• CRISIL reports that gold loan NBFCs' assets under management (AUM) are projected to grow at a 40% CAGR, exceeding ₹4 lakh crore by March 2027.
• Gold prices have surged by about 68% in the first nine months of this fiscal year, reaching an all-time high, increasing the value of pledged gold and enabling larger loan disbursements.
• Gold loan NBFCs are expanding their market through branch networks and partnerships, capitalizing on high gold prices and a shift towards secured credit.
• The Reserve Bank has tightened rules for gold loan NBFCs, emphasizing strict risk management, purity verification, and periodic audits to protect customer interests.

Why It Matters: Indians have pledged ₹4 lakh crore in gold, with this figure set to rise significantly due to soaring prices and increased gold loan demand.