Archive · 30 Jul 2026
India’s Gold Loan Market to Reach Rs 30 Lakh Crore by 2028
India’s gold loan market is growing fast.
By March 2028, the total value of loans backed by gold is expected to be about Rs 30 lakh crore, up from Rs 18 lakh crore in 2026.
Companies that are not banks (called NBFCs) are expected to grow their gold loan books faster than banks.
This means NBFCs will own a bigger share of the market.
The growth is helped by more people asking for loans and by the price of gold going up.
However, more competition could make it harder for lenders to earn high profits.
India’s gold loan portfolio projected to reach Rs 30 lakh crore by March 2028, up from Rs 18 lakh crore in March 2026.
NBFCs expected to grow gold loan AUM at 35% CAGR FY27‑FY28, outpacing banks' 30% CAGR.
NBFCs' share of the gold loan market likely to rise to 23% by FY28 from 22% in FY26.
Rising competition may pressure lending yields and limit profitability, per ICRA Ratings.
Growth driven by new entrants, acquisitions, branch expansion, and higher gold prices rather than increased jewellery pledges.
- Who
- ICRA Ratings, non‑banking financial companies, banks
- What
- Forecast of gold loan portfolio growth and market share changes
- When
- Projected to reach Rs 30 lakh crore by March 2028; FY27‑FY28 growth rates
- Where
- India
- Why
- Increasing demand, new entrants, acquisitions, higher gold prices
- Portfolio size (March 2026)
- Rs 18 lakh crore
- Projected portfolio size (March 2028)
- Rs 30 lakh crore
- NBFC gold loan CAGR FY27‑FY28
- 35%
- Bank gold loan CAGR FY27‑FY28
- 30%
- NBFC market share (FY28)
- 23%