The gold loan industry in India is experiencing rapid growth. It is expected to cross ₹10 lakh crore in FY25 and reach ₹15 lakh crore by 2027.
NBFCs Are Leading the Surge
Non-Banking Financial Companies (NBFCs) are playing a major role in this expansion, registering a strong 17–19% year-on-year growth. This momentum is driven by several advantages offered by NBFCs:
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Faster loan processing
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Higher loan-to-value (LTV) ratios
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Flexible repayment options
Banks vs NBFCs – Who’s Leading?
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Public Sector Banks (PSBs) continue to dominate the overall gold loan market with a 63% market share, largely due to their strong presence in agriculture-backed gold lending.
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However, in the retail gold loan segment, NBFCs are emerging as the clear leaders, even disbursing more gold loans than personal loans in many cases.
This shift signals a changing borrower preference toward quicker, more flexible lending options.
Key Growth Drivers
The following factors are fueling the robust expansion of the gold loan industry:
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Rising gold prices
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Competitive interest rates
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Fintech collaborations and digital lending platforms
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Reduced demand for unsecured loans
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Increased competition resulting in customer-centric terms
As gold prices reach record highs and consumers seek fast, hassle-free credit, NBFCs are making gold loans more appealing than ever before.
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