Archive · 8 Sep 2026
NBFC Gold Loans Rise 68.5% as Retail Credit Accelerates
Non-bank lenders in India gave many more gold-backed loans in July 2026 than they did a year earlier.
Their gold-loan growth was 68.5%.
Banks also increased gold lending, but their growth rate slowed compared with the previous year.
NBFCs held nearly Rs 3.54 trillion in gold loans, while banks held Rs 5.52 trillion.
Loans for buying consumer goods grew by 51.5%.
Housing and vehicle loans grew more steadily.
Some people think higher gold prices make these loans safer and more attractive to lenders.
Others worry that people may be borrowing more for spending instead of building assets.
NBFC gold-backed loans grew 68.5% year-on-year in July 2026, up from 43.9% a year earlier.
Banks’ gold-jewellery loans grew 88.1% in July, slowing from 136.4% a year earlier.
NBFCs’ gold-loan book reached nearly Rs 3.54 trillion, compared with Rs 5.52 trillion for banks.
Overall NBFC retail credit grew 21.4%, led by gold loans and consumer-durable lending, which rose 51.5%.
Services and industry credit growth moderated, while agriculture and allied-activities credit increased 18%.
- Who
- Non-banking financial companies, housing finance companies, banks and the Reserve Bank of India.
- What
- Gold-backed lending by NBFCs and overall retail credit recorded strong growth in July 2026.
- When
- July 2026, compared with June 2026 and July 2025.
- Where
- India; the report is datelined Mumbai.
- Why
- Higher gold prices increased the value of collateral and supported gold lending, while consumer credit also expanded.
Benefits of Gold-Backed Lending
Concerns About Consumption Borrowing
Lender security
Benefits of Gold-Backed Lending
Rising gold prices provide higher-value collateral and can make lenders more comfortable extending gold-backed credit.
Concerns About Consumption Borrowing
The rapid expansion of gold lending raises questions about whether credit is being directed away from asset creation.
Use of credit
Benefits of Gold-Backed Lending
Strong growth in consumer-durable loans indicates that borrowers are using credit to purchase goods.
Concerns About Consumption Borrowing
Some observers are concerned that borrowing is increasingly being used for consumption-related expenses rather than building assets.
- NBFC gold-loan growth
- 68.5% year-on-year in July 2026
- Bank gold-loan growth
- 88.1% year-on-year in July 2026
- NBFC gold-loan book
- Nearly Rs 3.54 trillion at the end of July
- Bank gold-loan book
- Rs 5.52 trillion at the end of July
- Overall NBFC retail-credit growth
- 21.4% in July 2026
- Consumer-durable loan growth
- 51.5% in July 2026
- Agriculture-credit growth
- 18% in July 2026
