Surge in Gold Loans: A New Trend in India's Retail Credit Market

Gold loans have rapidly become a significant part of India's retail credit landscape, with a remarkable increase in borrower participation, especially among women. The latest report reveals that gold loan balances have surged, reflecting a shift towards larger loan amounts and a more diverse borrower profile. With women now accounting for a substantial portion of loan originations, the market is expanding geographically and demographically. The average ticket size has also risen significantly, indicating a trend towards higher-value borrowing. This article delves into the key factors driving this growth and the changing dynamics of the gold loan market in India.

By Narendra Chaudhary Apr 14, 2026, 14:47 IST

Gold Loans: A Rapidly Growing Segment

Gold loans have swiftly ascended to become the second-largest retail credit product in India, showcasing a significant increase in borrower engagement, larger loan amounts, and a diverse range of lenders. This trend is particularly notable among consumers and women, who are increasingly entering the credit landscape. As per the Gold Loan Landscape Report by TransUnion CIBIL, the total gold loan balances have surged 3.8 times since March 2022, elevating their share in the retail credit portfolio from 5.9% to 11.1% by December 2025.

Women Borrowers: Key Contributors to Growth

Women have become a crucial factor in the expansion of gold loans, representing 39% of loan originations by volume in 2025, an increase from 36% in 2022. This growth is evident not only in southern regions but also in western and northern states. The report indicates significant progress among women borrowers in states like Telangana, Uttar Pradesh, Rajasthan, Gujarat, Maharashtra, and Madhya Pradesh, highlighting a wider geographical demand.

Rising Average Loan Sizes

The average gold loan balance per account has risen from Rs 1.1 lakh in March 2022 to Rs 1.9 lakh by December 2025, reflecting a trend towards larger borrowing amounts. Additionally, gold loan origination volumes have increased 2.3 times since Q1 2022, with the total value of originations growing 5.1 times during the same period.

Changing Borrower Profiles

The average ticket size for gold loans has escalated from Rs 90,000 in Q1 2022 to Rs 1.96 lakh in Q4 2025, indicating a shift towards higher-value loans. The composition of borrowers is also evolving, with the proportion of prime and above-prime borrowers rising from 43% in 2022 to approximately 52% in 2025. Conversely, the share of new-to-credit borrowers has decreased from 12% to 6%, suggesting a more diverse borrower base.

Increased Borrower Leverage

The report also notes a shift in borrower leverage, with the average outstanding amount per borrower increasing from Rs 1.9 lakh in December 2022 to Rs 3.1 lakh by December 2025. Furthermore, the percentage of borrowers with gold loans exceeding Rs 2.5 lakh has risen to 14% by the end of 2025, up from 10% in 2022.