•Gold loans are now a smart finance trend, shedding old stigmas; wealthy individuals and businessmen increasingly use them for large investments.
•Data shows a doubling of gold loans above Rs 5 lakh in two years, with their share in new sanctions rising from 17.7% to 36.5%.
•Rising gold prices, higher Loan-to-Value (LTV) ratios, and simplified processing are key drivers for this surge.
•Public sector banks lead the market, but NBFCs are rapidly expanding due to quick approvals and minimal paperwork, despite higher interest rates.
•The gold loan segment is India's fastest-growing retail loan category, with a 44% growth, reaching a Rs 16.1 lakh crore portfolio without increasing NPAs.
