The share of gold loans in the retail loan portfolio has more than doubled in the past four years, while finance companies have emerged as the fastest-growing lender category, steadily gaining market share, showed a report by credit bureau Experian. International gold prices, calculated in dollars per troy ounce, have climbed 130% in the past five years.The Experian report, titled ‘Gold Loans in Transition’, said the share of gold loans in overall retail credit sourcing rose steadily from 18% in FY23 to 41% in FY26.The market share of PSU banks fell to 58% in March 2026 from 62% in March 2023, while that of finance companies, in terms of assets under management, doubled to 20% over four years. The share of private banks declined to 12% from 15% during the same period, while the rest of the industry saw its share drop from 13% to 10%.“Public sector banks, although still significant contributors, have consistently ceded market share, reflecting increasing competitive pressure from agile NBFC lenders,” the report said. The market structure is gradually shifting towards private and NBFC-led sourcing, highlighting stronger distribution reach, it added.In sourcing gold loans, the market share of non-bank finance companies has doubled to 44%, while that of PSU banks fell to 37% from 53% over the last six quarters ending March 2026, it said.The report noted that gold loans are no longer a secondary product but are emerging as a key driver of retail credit growth. “Customers are increasingly choosing gold loans, leading to a visible shift in the overall lending mix. Compared to other retail credit products, gold loans are seeing stronger momentum and higher customer traction.”Manish Jain, Country Managing Director, Experian India, said in the foreword, “Growth is driven by rising ticket sizes, wider geographic adoption, stronger customer demand, and increasing participation across banks, NBFCs, and specialised gold lenders.”The report also pointed out that the gold loan portfolio is gradually migrating towards higher-value loans—around Rs 3 lakh—as the underlying asset becomes more valuable.
Gold loans surge in Retail Mix; NBFCs outpace banks in market share gains: Experian report
A report by credit bureau Experian shows that gold loans have become a major driver of Indias retail credit growth, with their share in the retail loan portfolio rising from 18% in FY23 to 41% in FY26. The shift comes alongside a sharp rise in global gold prices, which have increased about 130% over the past five years.
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