India's gold lending industry is projected to witness approximately 28 per cent compound annual growth rate (CAGR) over FY26-28E, driven by the formalisation of credit and low monetization of household holdings, according to a report by Motilal Oswal. The segment has now overtaken personal loans to rank as the second-largest consumer lending category for banks and non-banking financial companies (NBFCs), standing behind home loans.
Data from the report revealed that Indian households possess an estimated 28,000 tonnes of gold valued between Rs 380 trillion and Rs 390 trillion. Despite this base, the formal sector accounts for only a small portion of the asset pool.
