The record prices of the yellow metal, which had risen more than 80% in 2025 and had touched Rs18,000/gram in late January, has helped gold loan companies and banks to increase their outstanding loans by 50.4% in FY26 to Rs18.6 trillion.
The record rally was most visible in the final quarter when the gold prices hit the roof on January 29 at Rs17,885 a gram when the international prices topped $5,600 an ounce mark on the same day. Since then the prices have nearly halved, but the loan markets based on pledged gold jewellery have not followed suit.
According to credit information bureau Experian, Q4 FY26 saw gold loans soaring 115% YoY to Rs7.6 trillion. And this rally was led by non-banking players such as Muthoots, Manappurams and IIFLs, whose market share also rose from 28% in FY25 to 40% in FY26, while the share public sector banks, which have been the industry leaders, fell sharply from 41% to 34%.
According to the report, gold loans outperformed personal loans and credit cards in the fiscal and the total outstanding gold loans reached a record Rs18.6 trillion in the fiscal, a 50.4% YoY surge.
“Gold loan market has emerged as the standout credit story in the fiscal 2026, with new loans surging to Rs7.6 trillion in Q4, a growth of 115% YoY and asset under management (AUM) rising 47% annually to Rs11.9 trillion,” Experian said.
The report also highlights that the average ticket size has risen sharply from Rs1 lakh in FY24 to Rs1.7 lakh in FY26. While home loans still lead in ticket size at Rs33.5 lakh in FY26, their growth has been relatively gradual compared to that of gold loans.