Gold Loan Market Set to Hit Rs 15 Lakh Crore Milestone by 2026
India's organised gold loan market is predicted to reach Rs 15 lakh crore by March 2026, as banks strengthen their dominance and grow rapidly. This revision follows heightened gold prices and banks' increasing market share, outpacing NBFCs. By FY2027, the market is expected to expand to Rs 18 lakh crore.
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- India
The Indian organised gold loan market is poised to hit the Rs 15 lakh crore mark by March 2026, according to a recent assessment by rating agency Icra. This upward revision comes a year earlier than its previous forecast, emphasizing rapid growth driven largely by rising gold prices.
Banks are outshining their non-banking financial company (NBFC) counterparts, with their market share climbing to 82% of the gold loan portfolio by March 2025. A standout factor is the compounded annual growth rate of banks' gold loan assets, hitting around 26% from FY2020 to FY2025, compared to NBFCs' 20%.
Icra projects continued expansion, reaching Rs 18 lakh crore by FY2027. The strategic shift in banks' portfolio compositions, with increased retail/personal gold loans, complements the broader market momentum and gold price elevation, enhancing the sector's outlook further.
(With inputs from agencies.)
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