·       Since August 2023, India’s gold loan balances have increased nearly threefold to touch ₹22.5 lakh as of August 2026

·       Two in five (42%) borrowers with prior credit stress at time of gold loan origination had returned to regular repayment across all active credit obligations 12 months later.  While the analysis does not establish causation, the findings highlight an observed borrower-level repayment pattern.

Mumbai, India, 5 November 2026 – India's gold loan market continued to expand in 2026, with outstanding balances reaching ₹22.5 lakh crore as of August, nearly three times the level recorded in August 2023. The market counted 5.5 crore active borrowers as of August 2026, accounting for 21% of India's credit-active consumers. Gold loan continues to be one of the fast growing credit products in the last  three years.

These findings come from TransUnion CIBIL's report Lending Unlocked: Gold Loans, November 2026, which examines gold loan portfolio growth, borrower participation, repeat borrowing and credit performance. The report found that gold loan sanction values rose 12% year-over-year (YoY) to ₹8.2 lakh crore during the three months ended June 2026, despite a 15% decline in origination volumes. Approximately 3.7 crore gold loans were disbursed during this period, while the number of unique borrowers originating a gold loan held broadly stable YoY at 2.4 crore. This indicates that the decline in origination volumes was not driven by lower borrower participation, but rather coincided with a shift towards larger-ticket loans. Loan originations of value greater than ₹2.5 lakh grew 19% YoY by volume, reflecting a shift towards higher ticket size loans.

Chart 1 – Indexed Growth in Originations

Source – TransUnion CIBIL credit bureau data analysis reported in “Lending Unlocked: Gold Loans November 2026”

Gold Loan Participation Remain Widespread Across Diverse Borrower Segments

Gold loan participation remained widespread across the country. Two-thirds of originations during Q2 2026 came from semi-urban and rural markets, and women accounted for two in five originations. The number of Gen Z² borrowers grew 19% YoY, and the share of borrowers with a CIBIL Score above 800¹ reached 40%, up four percentage points since the quarter ending June 2023. While southern states remain the foundation of India's gold loan market, recent growth has increasingly come from other regions, signalling broader acceptance of gold-backed credit beyond its traditional strongholds.

Repeat Borrowing Continues to Drive Growth in Gold Loan

The research found that gold loan borrowers have a markedly higher propensity for repeat borrowing compared with borrowers in other liquidity-oriented credit segments. Among low-risk borrowers who originated a gold loan between July 2023 and June 2025, more than one in two (57%) of consumers who availed a gold loan of ₹2.5 lakh or less and 54% of consumers who availed a gold loan of more than ₹2.5 lakh originated another gold loan within the following 12 months. Low-risk borrowers are defined as those with a CIBIL Score of 731 or above, have no loans 30 or more days past due in the preceding six months and no active liquidity-oriented credit products.

Compared with other liquidity-oriented credit products, gold loan borrowers were more likely to originate another gold loan. The percentage of borrowers who initially borrowed other liquidity-oriented products and subsequently originated the same type of credit product within 12 months was lower, as seen in the chart below. These products include personal loans of less than ₹1 lakh, personal loans of more than ₹1 lakh, credit cards and unsecured business loans. Subsequent originations included loans from any lender and may have involved renewals or top-ups. Understanding which customers return, borrow elsewhere, and how their total exposure changes can help lenders identify opportunities to deepen their relationship with existing borrowers.

Chart 2 – Repeat Gold Loan Originations and Comparison with Other Liquidity-Oriented Products

Source – TransUnion CIBIL credit bureau data analysis reported in “Lending Unlocked: Gold Loans November 2026”

Repayment Trends Among Previously Delinquent Borrowers

An additional analysis examined consumers who originated liquidity-oriented credit products between July 2024 and June 2025, had a CIBIL Score of 800 or below at the time of origination and had signs of prior stress. Three in ten borrowers (29%) who availed a gold loan of ₹2.5 lakh or less and 27% of borrowers who availed a gold loan of more than ₹2.5 lakh who originated a gold loan had at least one existing credit obligation that was 30 or more days past due in the month preceding origination. This was a higher incidence of prior credit stress than was observed for borrowers originating other products included in the study.

Among these previously delinquent gold loan borrowers, two in five (42%) were current (0 days past due) across all their loans 12 months later. This was higher than the corresponding proportions seen across other liquidity-oriented credit products included in the study.

Table 1 – Gold Loan Borrowers Exhibit Higher Prior Stress at Origination and Show Stronger Subsequent Repayment Outcomes

Source – TransUnion CIBIL credit bureau data analysis reported in “Lending Unlocked: Gold Loans November 2026”

The analysis measured repayment performance at the consumer level across active loans 12 months post origination. While the analysis does not establish how loan proceeds were used or whether a gold loan directly influenced subsequent repayment behavior, the findings highlight a notable borrower-level pattern observed at substantial scale.

Compared with other collateral-backed liquidity products, gold loans reach a significantly broader base of consumers, including borrowers exhibiting signs of prior credit stress. This underscores the importance of borrower-level risk assessment in addition to collateral coverage, when underwriting gold loans. A comprehensive view of a borrower's overall financial position can help lenders better identify risk, evaluate financing needs and support responsible portfolio growth.

Mr. Bhavesh Jain, MD and CEO, TransUnion CIBIL, said: "As consumers access gold-backed credit at different stages of their financial journeys, lenders need to look beyond the value of the pledged collateral to understand their overall borrowing requirements. Repeat borrowing, changes in credit exposure and repayment behavior across different products are important considerations when assessing a customer's financial position. A robust view of credit history, existing obligations and repayment capacity can help lenders identify suitable financing opportunities, strengthen customer relationships and manage portfolio risk responsibly."

Potential Early Risk Indicators Amid Improving Performance

Gold loan borrowers’ performance has improved over the last several quarters. The proportion of active gold loan borrowers with gold loan accounts 30 or more days past due declined from 2.0% in June 2025 to 1.4% in June 2026. Over the same period, the number of active gold loan borrowers increased from 4.8 crore to 5.4 crore.

An analysis of a sub-segment of five crore active gold loan borrowers in December 2025 with a CIBIL Score above 730, at least two years of credit history and no existing credit obligations that were 30 or more days past due as of December 2025, found that 7% experienced delinquency across their credit obligations between January and June 2026.

Certain borrower segments were more likely to be delinquent in the next six months. Consumers who had missed more than one payment in the preceding six months, were three times more likely to experience delinquency in the next six months. The corresponding multiples were two times among consumers holding business-oriented loans alongside gold loans and 1.4 times among those with non-mortgage outstanding balances of ₹5 lakh or more.

Chart 3 – Consumer-Level Performance and Early Risk Signals

Source – TransUnion CIBIL credit bureau data analysis reported in “Lending Unlocked: Gold Loans November 2026”

The evolution of the gold loan market reflects more than growth in balances. As the product reaches a broader set of consumers, supports larger ticket sizes and exhibits high levels of repeat borrowing among good borrower profiles, sustainable growth will increasingly depend on lenders combining collateral-based lending with a comprehensive view of borrower-level credit behavior and overall financial obligations.

Disclaimer: The findings presented in this report are based on analysis of historical credit bureau data and are intended for informational purposes only. Observed trends and borrower outcomes do not establish causation, nor should they be construed as predictions or guarantees of future performance. Lending decisions should be based on an independent assessment of each borrower's circumstances.

Notes:

1. The ranges for CIBIL Score or TransUnion CIBIL Enhanced CreditVision (CV4) are: subprime = 300–670; near prime = 671–730; prime = 731–800; prime plus = 801–850; super prime = 851-900.

2. Gen Z is defined as a consumer born between 1995 to 2010. Credit active consumers or credit eligible consumers in the age group 18-31 years in 2026 are Gen Z.