New Delhi, April 14: Gold loans in India have surged fourfold over the past three years, with the average loan amount nearly doubling to approximately ₹2 lakh. This reflects a significant increase in borrower demand and growing acceptance of gold loans, according to a report released on Tuesday.
According to a report by TransUnion CIBIL, the gold loan balance has increased nearly four times since March 2022. This has raised the share of gold loans in India’s retail loan portfolio from 5.9% to nearly 11% by December 2025.
The report indicates that this growth in gold loans is driven by increased adoption among borrowers, higher ticket sizes, broader participation from lenders, and changes in borrower profiles. More consumers are entering this segment, including women and individuals with better credit histories.
Furthermore, the report highlights that non-banking financial companies (NBFCs) have seen particularly strong growth, with their share of gold loan balances rising from 7% in March 2022 to 11% by December 2025. Meanwhile, public sector banks have also strengthened their position, increasing their share from 57% to 62% during the same period.
The average gold loan balance per account has risen from ₹1.1 lakh in March 2022 to ₹1.9 lakh by December 2025. The volume of loans has increased 2.3 times since the first quarter of 2022, while the loan value has nearly quintupled. The average loan value rose from ₹90,000 in the first quarter of 2022 to ₹1.96 lakh in the fourth quarter of 2025.
There has also been a shift in the profile of borrowers, with the share of prime and above-prime borrowers increasing from 43% in 2022 to nearly 52% in 2025. Conversely, the share of new loan customers has decreased from 12% to 6%, indicating a more mature and diverse borrowing base.
The report also noted that borrower leverage has increased, with the average outstanding amount per borrower rising from ₹1.9 lakh in December 2022 to ₹3.1 lakh by December 2025. The proportion of borrowers with loans exceeding ₹2.5 lakh has grown from 10% in 2022 to 14%.
Bhavesh Jain, MD and CEO of TransUnion CIBIL, stated that gold has always held deep financial and cultural significance in India, but we are now witnessing a structural change in the use of gold loans.
He added, “Gold loans are rapidly becoming a mainstream, organized, and accessible form of secured lending. Their rapid growth reflects both lender confidence and increasing consumer acceptance.”
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