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ARTICLE · 30 APRIL 2025

Draft Gold Loan Guidelines: Streamlining The Ecosystem Or Derailing Growth Momentum?

Corporate Professionals - Advisors & Advocates
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India's gold loan market is glittering brighter than ever. As per Reserve Bank of India (RBI) data released on February 28, the gold loan portfolio saw a jaw-dropping growth of 76.9%...

IndiaFinance and Banking
Nitesh Latwal
Nitesh Latwal
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Growth story of the Gold Loan category

India's gold loan market is glittering brighter than ever. As per Reserve Bank of India (RBI) data released on February 28, the gold loan portfolio saw a jaw-dropping growth of 76.9% in January 2025—a massive leap compared to 17.4% in the same period last year. Outstanding gold jewellery loans stood at ₹1.79 lakh crore as of January 24, 2025, a steep rise from ₹1.01 lakh crore in 2024 and ₹86,133 crore in 2023.

What's Driving This Gold Rush?

1. Skyrocketing Gold Prices

Gold prices in India soared to ₹98,000 approx. per 10 grams in April 23, 2025, up from around ₹62,690–₹64,090 in early 2024. This spike allows borrowers to get larger loans by pledging less gold. However, this also brings risks—if prices fall, borrowers could face challenges repaying or securing further credit.

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