New Delhi, April 14 Gold loans in India have expanded fourfold over the past three years, with the average ticket size nearly doubling to nearly Rs 2 lakh, indicating a sharp rise in borrower demand and growing acceptance of gold-backed credit, a report showed on Tuesday.
According to a report by TransUnion CIBIL, gold loan balances have grown nearly four times since March 2022, with their share in India’s retail credit portfolio rising from 5.9 per cent to around 11 per cent by December 2025, which is the second-largest retail credit product by balance share.
The growth in the gold loans driven by higher borrower adoption, increasing ticket sizes, broader lender participation, and a shift in borrower profiles, with more consumers entering the segment, including women and individuals with stronger credit histories, it said.
The report further highlighted that growth has been particularly strong among NBFCs, whose share in gold loan balances increased from 7 per cent in March 2022 to 11 per cent in December 2025. Meanwhile, public sector banks also strengthened their position, with their share rising from 57 per cent to 62 per cent during the same period.
The average gold loan balance per account rose from Rs 1.1 lakh in March 2022 to Rs 1.9 lakh in December 2025.
Origination volumes surged 2.3 times since Q1 2022, while origination value jumped around five times. The average ticket size increased from Rs 90,000 in Q1 2022 to Rs 1.96 lakh in Q4 2025.
Borrower profiles have also evolved, with the share of prime and above-prime borrowers rising from 43 per cent in 2022 to about 52 per cent in 2025, while the share of new-to-credit customers declined from 12 per cent to 6 per cent, indicating a more mature and diversified borrower base.
The report also stated that women borrowers have emerged as a key growth driver, accounting for 39 per cent of gold loan originations in 2025 -- up from 36 per cent in 2022 -- with strong traction across both traditional southern markets and states such as Uttar Pradesh, Rajasthan, Gujarat, Maharashtra, and Madhya Pradesh.
Borrower leverage, with the average outstanding per borrower increasing from Rs 1.9 lakh in December 2022 to Rs 3.1 lakh in December 2025. The share of borrowers with exposure above Rs 2.5 lakh rose to 14 per cent from 10 per cent in 2022.
TransUnion CIBIL MD and CEO Bhavesh Jain said that gold has always held deep financial and cultural relevance in India, but what we are seeing now is a structural shift in how gold-backed borrowing is being used.
"Gold loans are increasingly becoming a mainstream, organised and accessible form of secured credit. Their rapid growth reflects both lender confidence and rising consumer acceptance," he said.
However, the rapid growth has raised concerns around asset quality.
For loans originated in the six months ended June 2025, overall delinquency stood at 1.1 per cent. Borrowers with exposure above Rs 2.5 lakh showed higher delinquency of 1.5 per cent, more than double the 0.7 per cent seen among lower-exposure borrowers.
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