Gold loans jump over 50% in FY26 as borrowers shift from unsecured credit
Rising gold prices lifted collateral values and pushed gold loans to 22.4% of consumer credit in March 2026. Canara Bank’s non-agri gold-loan book crossed Rs 1 lakh crore in Q1FY27, while NBFCs held 22% of the organised gold-loan market.
Indian gold loans surged over 50% in FY26 as rising gold prices lifted collateral values and borrowers shifted from unsecured credit. Canara Bank’s non-agri gold-loan book crossed Rs 1 lakh crore, while NBFCs gained organised-market share.
Why this matters
The gold-loan expansion follows Canara Bank’s recent 5-bps MCLR increase across tenors, which lifted its one-year benchmark to 8.75%; Bank of Baroda held its rate at 8.70%.
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