NBFC gold loans continue near 70% growth, reach Rs 3.41 lakh crore in June

In India, Gold-backed lending by non-banking financial companies (NBFCs) continued to grow at nearly 70 per cent year-on-year in June 2026, extending the sharp expansion seen in the previous month, according to data released by the Reserve Bank of India (RBI). Outstanding NBFC loans against gold jewellery rose 69.3 per cent year-on-year to Rs 3.41 lakh crore at the end of June 2026, after recording 69.9 per cent growth in May. The latest numbers indicate that the strong growth in gold-backed lending has continued into June, with loans against gold jewellery growing significantly faster than the overall retail loan portfolio of NBFCs.

Retail loans grew 20.3 per cent year-on-year in June 2026, accelerating from 14.3 per cent growth recorded a year earlier. ‘Within retail loans, ‘housing’, ‘vehicle’ and ‘loans against gold jewellery’ segments displayed robust credit growth. According to the accompanying RBI data, outstanding retail loans increased to around Rs 25.62 lakh crore in June 2026 from Rs 21.29 lakh crore a year earlier.

The continued expansion in gold-backed lending comes as the RBI has strengthened the regulatory framework governing loans against gold and silver collateral. The central bank had issued the Reserve Bank of India (Lending Against Gold and Silver Collateral) Directions, 2025 in June last year, laying down a harmonised regulatory framework for such loans across regulated entities, including NBFCs.

Earlier, the RBI had identified deficiencies in gold-loan practices, including shortcomings in the use of third parties for sourcing and appraisal of loans, inadequate due diligence, weaknesses in monitoring loan-to-value ratios and lack of transparency during auctions of gold jewellery in cases of default. RBI had also asked regulated entities to closely monitor their gold-loan portfolios in view of significant growth seen at some lenders.