Gold loans may remain in focus amid strong momentum in retail credit growth: Experian

Gold loans may continue to remain in focus for lenders in the near term, backed by strong momentum already visible in sourcing volumes and rising ticket sizes, as secured lending gains prominence in India's retail credit market, according to a report by Experian.

The report showed that gold loan sourcing value more than doubled year-on-year to Rs 7.6 lakh crore in the fourth quarter of FY26, registering a 115 per cent rise, while assets under management (AUM) grew 47 per cent to Rs 11.9 lakh crore as of March 2026. Average ticket size also rose sharply to Rs 2.1 lakh from Rs 1.4 lakh in the year-ago period, indicating stronger traction in the segment.

Gold loan sourcing also maintained a consistently stronger growth trajectory than traditionally volume-driven unsecured products such as personal loans and credit cards through FY26, the report showed.

''Secured lending continued to gain prominence within the overall portfolio mix, driven by sustained momentum in gold loans,'' the report said, suggesting collateral-backed lending may continue to anchor retail credit growth if current trends persist.

Secured loans accounted for 68 per cent of sourcing value in FY26 and expanded 35 per cent year-on-year, outpacing unsecured lending growth of 22 per cent.

The report also highlighted a broad-based recovery in retail credit demand, with overall sourcing rising 31 per cent year-on-year to Rs 75 lakh crore in FY26, supported by stronger borrower confidence and improving ticket sizes across segments. While unsecured lending has seen a strong resurgence led by personal and consumer loans.

Non-banking financial companies (NBFCs) have emerged as key beneficiaries of the gold loan momentum, gaining market share in sourcing value to 40 per cent in Q4FY26 from 28 per cent a year earlier, while the share of public sector banks moderated during the period, according to the report.

The report further pointed to improving asset quality trends in gold loans, with net 90+ delinquency rates easing to 0.2 per cent from 0.3 per cent a year ago, indicating a supportive backdrop for continued expansion in the segment.

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