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.

Gold loans surged 84% in FY26, becoming a key credit driver as repeat borrowers and rising prices boost demand across India.

Public sector banks are losing ground in the gold loan market to private lenders and NBFCs, which offer faster service and wider reach. While NBFCs are rapidly gaining market…