Gold loans emerge as second largest retail credit product after home loans

In line with the sharp rise in gold prices, gold loans have emerged as second largest retail credit product after housing loans. Gold loans have grown 3.8 times since March 2022 and now account for 11.1% of the retail credit portfolio by balance share, according to TransUnion CIBIL’s latest Gold Loan Landscape Report.

The origination value has risen 5.1 times since early 2022, the report said, while the average ticket size has more than doubled from ₹90,000 to ₹1.96 lakh, pointing to a growth in both borrower adoption and borrowing depth.