India’s gold loan market is witnessing a record-breaking boom, surging 122% year-on-year to reach ₹2.94 lakh crore as of July 2025, according to Parimal Ade, Founder of InvestYadnya.

In a post on X (formerly Twitter), Ade highlighted how Indians are increasingly choosing to leverage rather than sell their gold, taking advantage of high prices and easier access to short-term credit. Advertisement

“When prices of gold glitter, Indians don’t sell — they leverage,” Ade wrote, noting that gold loans are emerging as India’s fastest-growing retail credit segment, offering liquidity without breaking emotional ties to family gold.

What’s fueling the rush

Ade pointed to two major factors behind the surge:

Soaring gold prices, which have boosted the value of pledged collateral.

RBI’s relaxed

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