Gold loans surge in India: Average ticket size jumps 39% YoY to ₹1.96 lakh

A pawnbroker weighs gold ornaments(Reuters)AI Quick ReadIndians unlocked more from the sharp rise in gold prices, with the average ticket size of gold loans jumping 39% year-on-year (YoY) to ₹1.96 lakh in 2025-26 (FY26). The average ticket size has doubled in just three years (from ₹98,000 in FY23 to ₹1.96 lakh in FY26).

Gold loans are shifting toward higher ticket sizes across the board, with high gold prices driving the rapid growth in sourcing value. While the gold price index surged 144% over two years (between March 2024 and March 2026), gold loan sanction amounts soared by 200% over the same period.

As the underlying asset becomes more valuable due to rising prices, borrowers can take on larger loan amounts against the same gold holdings. This is clearly reflected in the constantly increasing average ticket size.

The value of gold loans taken by borrowers accelerated significantly over the last two years, rising from 69% in FY25 to 84% in FY26, indicating stronger customer demand and deeper market penetration. This growth trajectory is closely aligned with gold price trends, which serve as a key enabler, allowing borrowers to unlock greater value from the same collateral.

The overall gold loan portfolio also expanded substantially, from ₹6.3 lakh crore in March 2023 to ₹19.4 lakh crore by March 2026, reflecting sustained momentum across the category. With gold becoming more valuable, there is a higher concentration of loans at ticket sizes above ₹3 lakh.

The share of gold loans in overall retail credit has also shown steady growth over the past two years, rising from 20% in FY24 to 30% in FY25 and then to 41% in FY26. Gold loan sanctions grew sharply both by value (+105% YoY in Q4 FY26) and by volume (+37% YoY in Q4FY26).

“In a country where household gold holdings are significant, the rapid growth of gold loans is enabling households to convert a traditionally held asset into a source of accessible finance,” said Manish Jain, Country Managing Director of Experian India. “This is supporting greater financial inclusion while enabling consumers to meet a wide range of personal and livelihood needs,” he said.

The growth story is also becoming increasingly broad-based across the country. While southern India remains an important market for gold loans, there is strong momentum in newer geographies, according to Experian, a provider of credit information.

“Strong YoY sourcing growth in FY26 was seen in states such as Uttar Pradesh (+138%), West Bengal (+112%), Rajasthan (+105%) and Maharashtra (+102%), highlighting growing acceptance of gold-backed lending beyond its traditional regional concentration and indicating a broader pan-India expansion trend,” Experian said in its latest report.

“While single gold loan customers continue to dominate the portfolio, accounting for nearly 70% of total borrowers across years, there is a clear underlying shift toward increasing repeat borrowing behaviour. The share of customers holding multiple gold loans has remained relatively stable at an aggregate level, indicating a steady portfolio composition,” it said.

In Q4 FY26, nearly 75% of gold loan customers were repeat borrowers, indicating that gold loans are increasingly becoming a recurring credit solution rather than a one-time borrowing instrument and reflecting stronger customer trust and engagement within the formal lending ecosystem.

“The tenure profile of gold loans is showing a clear downward trend across lender categories, indicating a structural shift toward shorter-duration borrowing and faster loan churn,” the report said. “Average tenures have declined consistently over time, particularly for NBFCs (Non-banking finance companies), which exhibit the shortest tenures, reflecting quicker turnaround and higher-frequency borrowing behaviour,” it said.

Despite strong growth, the quality of the gold loan portfolio did not deteriorate. Delinquencies (where payments are more than 90 days past due) declined to 0.2% in March 2026 from 0.4% in March 2023, demonstrating that expansion in the segment has continued alongside stable credit performance and prudent risk management practices, the report said.

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