Archive · 29 Jul 2026
Gold Loan Market to Reach ₹30 Lakh Crore by FY28
The gold loan market in India is expected to grow significantly, reaching ₹30 lakh crore by March 2028.
This growth is driven by both banks and non-banking financial companies (NBFCs), with NBFCs growing faster.
The market has seen strong growth in the past two years, with NBFCs expanding their portfolios by 54% and banks by 35%.
The growth is mainly due to higher gold prices rather than an increase in the amount of gold pledged.
Despite the rapid growth, credit losses are expected to remain low because gold is a liquid asset.
The entry of new players and expansion plans of large NBFCs are supporting this growth.
The gold loan market in India is projected to reach ₹30 lakh crore by March 2028.
NBFCs are expected to grow at a CAGR of 35% annually over the next two years.
Banks are expected to grow at a CAGR of 30% during the same period.
NBFCs’ share in the overall gold loan portfolio is expected to increase to 23% by FY28.
The growth in gold loan portfolios is primarily driven by higher gold prices rather than an increase in the quantity of gold pledged.
- Who
- Icra Ratings, NBFCs, Banks
- What
- Gold loan market growth projection
- When
- By March 2028
- Where
- India
- Why
- Increasing demand and greater appetite among lenders
NBFCs
Banks
Growth Rate
NBFCs
NBFCs are expected to grow at a CAGR of 35% annually over the next two years.
Banks
Banks are expected to grow at a slightly lower CAGR of 30% during the same period.
Portfolio Share
NBFCs
NBFCs’ share in the overall gold loan portfolio is expected to increase to 23% by FY28.
Banks
Banks will maintain a larger share of the gold loan portfolio compared to NBFCs.
- Projected Market Size by FY28
- ₹30 lakh crore
- Current Market Size (as of March 2026)
- ₹18 lakh crore
- NBFCs' Growth Rate
- 35% CAGR
- Banks' Growth Rate
- 30% CAGR
- NBFCs' Share in Gold Loan Portfolio (FY28)
- 23%
- NBFCs' Share in Gold Loan Portfolio (FY26)
- 22%
- Credit Losses
- Likely to remain limited due to the liquid nature of gold as collateral
- Primary Driver of Growth
- Higher gold prices rather than a significant increase in the quantity of gold pledged
