NBFC gold-backed loans surge nearly 70% despite RBI's tighter rules
Non-bank lenders' gold jewellery loans jumped about 70% year-on-year in June, even as the RBI tightened regulations on such lending.
Reserve Bank of India figures reveal that NBFCs' loans secured by gold jewellery increased 69.3% year-on-year, reaching Rs 3.41 lakh crore at June's close, after a 69.9% rise in May. The expansion dwarfs the 20.3% growth in NBFCs' total retail loan book, which itself rose from Rs 21.29 lakh crore a year earlier to Rs 25.62 lakh crore. The RBI introduced a harmonised framework in June 2025 to tighten rules on gold and silver collateral lending, citing earlier supervisory concerns about third-party sourcing, appraisal quality, and loan-to-value ratios.
Nonetheless, gold-backed credit grew more than three times faster than overall retail lending, while other segments such as housing, vehicle and consumer durable loans also posted solid gains. The data, covering a sample of upper- and middle-layer NBFCs and housing finance firms, underscore persistent borrower appetite for gold-secured financing despite heightened regulatory scrutiny.
Why it matters
The rapid rise in gold-backed loans shows strong consumer demand and potential risk exposure for lenders under tighter RBI oversight.
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