Gold Loan Sector Booms: High Prices Drive 42% Growth in India

• India's gold loan sector sees robust growth, driven by elevated gold prices and increasing customer adoption.
• Gold loans grew 42% year-on-year to ₹15.6 trillion as of November 2025, with retail loans against gold jewellery jumping 93% and bank gold loans surging 127%.
• Muthoot FinCorp CEO Shaji Varghese highlights a structural shift, with gold loans now used as a planned liquidity source by MSMEs, traders, and households.
• Borrowers are moving from informal lenders to regulated NBFCs and banks due to transparency and customer protection.
• High gold prices (up 17% YTD) continue to support growth, with leading players showing strong fundamentals and disciplined lending.