Gold loans have emerged as India’s second-largest retail credit product by balance share, according to TransUnion CIBIL's latest Gold Loan Landscape Report, reflecting a sharp expansion in the segment over the past three years. The share of gold loans in overall retail credit increased from 3.9% in March 2022 to 11.1% in December 2025, marking a 3.4x rise during the period. The report attributes this growth to higher borrower adoption, increasing ticket sizes, and broader participation from lenders.
Growth in Loan Size and Balances
The study highlights a steady rise in loan sizes. The average ticket size increased from ₹0.9 lakh in Q1FY22 to ₹1.96 lakh in Q4FY25. Similarly, the average balance per account rose from ₹1.1 lakh to ₹1.9 lakh between March 2022 and December 2025. Among lenders, non-banking financial companies (NBFCs) increased their share in gold loan balances from 7% to 11%, while public sector banks expanded their share from 57% to 62% during the same period.
Origination volumes grew 2.3 times between Q1FY22 and Q4FY25, while the value of originations increased 5.1 times, indicating a shift towards higher-value loans. The borrower profile has also evolved. The share of borrowers with exposure above ₹2.5 lakh increased to 14% from 10% in 2022. The proportion of prime and above-prime borrowers rose to around 52% in 2025 from 43% in 2022, while the share of new-to-credit borrowers declined from 12% to 6%.
Changing Participation Trends
Women borrowers accounted for a higher share of gold loan originations, increasing to 39% in 2025 from 36% in 2022. Demand also expanded beyond traditional southern markets to states such as Telangana, Uttar Pradesh, Rajasthan, Gujarat, Maharashtra, and Madhya Pradesh.
The report noted an increase in borrower leverage, with the average outstanding per borrower rising from ₹3.1 lakh in December 2022 to ₹3.3 lakh in December 2025. The share of borrowers with exposure above ₹2.5 lakh also increased, indicating deeper credit penetration.
Delinquency Levels
Overall delinquency in gold loans stood at around 1.1% for loans originated in the six months ended June 2025. However, delinquency was higher for larger loans, at 1.5% for loans above ₹2.5 lakh, compared to 0.7% for smaller-ticket loans.
The study also noted that borrowers with a history of serious delinquency had higher risks within the segment, with credit-access closure rates estimated to be about 1.6 times higher than non-defaulting borrowers.
Disclaimer: The information provided in our blogs is for informational purposes only and should not be construed as financial, investment, or trading advice. Trading and investing in the securities market carries risk. Always conduct your own research and consult with a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results. Copyrighted and original content for your trading and investing needs.
© 2026 — Tradejini. All Rights Reserved.
