Archive · 11 Aug 2026
SBI Gold Loans Outpace Xpress Credit as Borrowers Shift
State Bank of India is a very big bank in India.
The bank gives out loans, which are money people borrow and pay back with a little extra.
One kind of loan is a personal loan called Xpress Credit.
Another kind is a gold loan, where people give their gold jewelry to the bank and get money for it.
Lately, lots more people are choosing gold loans instead of personal loans.
That is because gold loans cost less, almost 3% cheaper in interest.
The bank's gold loan money went up super fast, with personal gold loans growing more than 97%.
Now the total gold loan amount is Rs 3.10 lakh crore.
The bank's leaders say they are happy and do not want to raise gold loan prices.
They think people may come back to Xpress Credit once the gold loan boom slows down.
SBI's gold loan book reached Rs 3.10 lakh crore, outpacing the once fast-growing Xpress Credit personal loan segment.
Personal gold loans grew 97.54% to Rs 1.25 lakh crore, while Xpress Credit expanded just 8.25% to Rs 3.75 lakh crore.
Customers are switching from Xpress Credit to gold loans because of an interest rate arbitrage of almost 3%, according to Chairman CS Setty.
About three-fourths of the bank's incremental agriculture loan growth comes from gold loans, which total Rs 1.85 lakh crore.
Gold loan traction is spreading beyond traditional southern markets, with Uttar Pradesh among states showing growth.
SBI keeps gold loan pricing at 9% with a loan-to-value ratio of 50-55%, and has no plans to raise prices.
- Who
- State Bank of India (SBI), including Chairman CS Setty and Managing Director (Retail Business & Operations) Rama Mohan Amara.
- What
- SBI's gold loans are growing rapidly and overtaking its Xpress Credit personal loan product as customers shift due to cheaper interest rates.
- When
- Reported after SBI's latest quarterly results, with growth trends covering the last several quarters.
- Where
- India, with gold loan growth expanding from traditional southern markets to states such as Uttar Pradesh.
- Why
- Borrowers prefer gold loans because of an interest rate arbitrage of almost 3% compared with Xpress Credit.
- Bank
- State Bank of India
- Total gold loan book
- Rs 3.10 lakh crore
- Personal gold loans
- Rs 1.25 lakh crore (97.54% growth)
- Agriculture gold loans
- Rs 1.85 lakh crore
- Xpress Credit book
- Rs 3.75 lakh crore (8.25% growth)
- Interest rate arbitrage
- Almost 3% in favor of gold loans
- Gold loan pricing
- 9%
- Loan-to-value (LTV) ratio
- 50-55%