Archive · 25 Aug 2026
Rising Gold Prices Drive Loan Demand Across Andhra Pradesh
Many people in Andhra Pradesh are borrowing money by giving their gold jewellery to lenders temporarily.
This is called a gold loan.
Gold prices have risen, so the same jewellery can now help people borrow more money.
Farmers are using the loans for different parts of the farming season.
Some families are using them to pay school and college fees.
Banks say tens of thousands of people are applying for these loans every day.
Borrowers can use banks or private gold-finance companies.
Private companies may charge higher interest, so many people prefer banks.
An estimated 80,000 to one lakh people are seeking gold loans across Andhra Pradesh each day.
About 8,000 of the state’s 10,200 bank branches are handling gold-loan transactions.
Higher gold prices allow borrowers to obtain larger loans against the same jewellery.
Farmers are borrowing in stages for kharif expenses, while families are also using loans for education costs.
Private gold-finance companies are attracting borrowers, but their higher interest rates make banks more attractive to many customers.
- Who
- Borrowers, including farmers and families, are seeking loans against jewellery from banks and private gold-finance companies.
- What
- Gold-loan demand has risen sharply, with borrowers pledging jewellery to obtain larger loans as gold prices increase.
- When
- The increase became more pronounced from the beginning of the kharif season; some borrowers pledged gold in June.
- Where
- Across Andhra Pradesh, including rural bank branches in districts such as Kurnool, Nandyal, and Kadapa.
- Why
- Borrowers are using the funds for farming expenses, education costs, and other needs, while higher gold prices increase their borrowing capacity.
- Estimated daily applicants
- 80,000 to one lakh people across Andhra Pradesh
- Total bank branches
- More than 10,200
- Branches handling gold loans
- Around 8,000
- Applications per branch daily
- About 10 to 25
- Daily gold pledged
- An estimated 160 to 200 kilograms
- Example loan
- A borrower obtained ₹5 lakh against 10 tolas of gold
- Private lenders
- Around 2,000 private gold-finance companies also serve borrowers