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A gold loan is a loan given against gold. It is a secure loan where gold articles are taken as collateral by the lending bank or Non-Banking Financial Company. The loan amount is usually sanctioned by lenders based on a certain percentage of the gold’s value. More
It’s one of the quickest ways to raise money in India, but speed should not replace understanding.
The bank has set a principal recovery target of Rs 10,000 crore for the full year. Additionally, recoveries routed through income typically contribute Rs 700–750 crore per quarter. Q3 recoveries stood at Rs 812 crore, and a similar run-rate is expected in Q4, Chand said.
After a sharp 15 percent correction in gold prices since Jan 30, the central bank is said to have sharpened its oversight on banks and NBFCs
After moderating earlier in FY26, lending picked up sharply towards the end of 2025. As of December, bank credit grew at 14.5%
Contrary to popular perception, gold loans are no longer primarily distress-driven
Leading players such as Muthoot Finance, Muthoot Fincorp, IIFL Finance and Bajaj Finance are collectively expected to open around 1,800 branches
A gold loan can sometimes be a smarter, cheaper and quicker option than a personal loan—if you know when to choose it.
Their family-run firm that’s doled out gold loans for almost nine decades is on a roll as consumers take advantage of surging bullion prices to swap jewelry for short-term cash
When cash can’t wait, pick the option that saves interest, protects your assets, and gets money to you on time.
Sources say loan to value by leading NBFCs and a few banks in the gold loan segment has started reducing by 2 – 4 percent, in anticipation of a likely dip in gold prices.
Higher gold prices mean customers can borrow more against their ornaments, driving demand but the sharp price movement also raises risk, the CEO tells Moneycontrol
The gold loan market has surged 122% year-on-year to Rs 2.94 lakh crore as of July 2025, driven by rising gold prices, eased regulations, and increased accessibility for low-credit borrowers.
The bank’s gold lending portfolio has a huge runway for growth
Indian Bank offering the lowest rate on gold loan, followed by Punjab National Bank at 8.35% and Bank of India at 8.6%.
The NBFC cited three key factors behind the strong quarterly show, which are, a healthy demand for gold loans, strong momentum in gold prices, and recent lending guidelines by RBI that were seen as business friendly by the industry.
When you require money urgently and own gold jewellery, pawning it can give you cheaper interest and quicker sanction than unsecured loans.
In absolute terms, the outstanding loan against gold jewellery stood at Rs 2.77 lakh crore as on June 27 . There has been a decline in the consumer durable segment
Last month, the central bank released the final guidelines for lending against gold and silver collateral.
Capri Global has also strengthened its digital services with a 'Smart Auto Pay' facility for gold loans, which it said is designed to make gold loan repayments more convenient and hassle-free.
Malhotra said the Loan-to-Value (LTV) for gold loans below Rs 2.5 lakh will be revised to 85 percent, from the proposed 75 percent as part of the latest recommendations.
The central bank must listen to bankers’ concerns and craft a framework that regulates without alienating
The Department of Financial Services has suggested to RBI that the requirements of small gold loan borrowers should not be adversely affected. It also said the norms will be suitable for implementation from January 1, 2026.
According to the RBI’s draft guidelines, lenders have to include appropriate single borrower limits and sectoral limits for loan portfolio against gold collateral, mechanisms to ensure end-use of loans, LTV ratio, valuation standards, and standards of gold purity.
Gold loan NBFCs may need to reduce their LTV at disbursement from current 65-68% to around 55-60%, in order to comply with revised norms, a Crisil note has said.
Torn between a gold loan and a personal loan? This guide breaks down the pros, cons, and key differences to help you choose the right option based on your financial needs.
