Data released by the Reserve Bank of India indicates that non-banking financial companies (NBFCs) experienced a 69.3% year-on-year increase in gold-backed credit extensions, with outstanding loans reaching Rs 3.41 lakh crore in June 2026.
The expansion reflects growing reliance on gold jewellery collateral for retail credit and small business financing needs. Financial institutions noted strong demand for liquidity against pledged precious metals.
Regulatory bodies continue to track loan-to-value ratios across non-bank lenders to maintain risk management standards across retail loan portfolios.
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Sources:
https://indianexpress.com/article/business/nbfc-gold-loans-rise