India’s gold loan market has emerged from its traditional “last-resort” image to become a mainstream credit option, with industry experts projecting sustained growth through 2026. Structural shifts, regulatory clarity, and product flexibility are driving expansion, even as rising gold prices introduce new risks for lenders.

According to Adhil Shetty, CEO and Co-Founder of BankBazaar.com, “Higher gold values have expanded usable collateral, while wider access to formal credit and faster digital processing have helped households and MSMEs borrow more efficiently. Even if prices stabilise, the ongoing shift from informal to regulated lending supports sustained growth.”

Secular growth, not just cyclical demand

Gold loans have grown beyond short-term credit demand.

Shaji Varghese, CEO of

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