Gold Loan: People rush to borrow against household gold; 70% surge in gold loans—what is the reason?

Gold Loan: According to the latest RBI data, the gold loan portfolio of NBFCs grew by nearly 70% in May 2026. Find out why people are increasingly opting for gold loans and the reasons behind this trend.

Gold Loan: If you think personal loans or home loans are the most popular choices, the picture has changed. Recent RBI data indicates that gold loans have become the fastest-growing loan segment. A massive surge has been observed, particularly in gold loans offered by NBFCs. According to a new report released by the RBI, the total credit extended by NBFCs against gold jewelry reached ₹3.29 lakh crore by the end of May 2026. This marks an increase of approximately 69.9% compared to May of the previous year.

Why are people taking gold loans?