Hyderabad: Gold loan NBFCs in India will record strong growth over the next two years, with assets under management expected to cross ₹4 lakh crore by March 2027, according to CRISIL Ratings.
In its report, CRISIL Ratings projected a growth rate of nearly 40 per cent for gold loan NBFCs during the next two years. This marks a sharp rise from the 27 per cent average growth recorded in the previous two-year period.
CRISIL attributed the acceleration mainly to the sharp rise in gold prices. During the first nine months of the current financial year, gold prices climbed by nearly 68 per cent. This rise allowed lenders to extend higher loan amounts against the same collateral.
Gold loan NBFC growth driven by prices and regulatory shifts
CRISIL also noted that tighter norms on unsecured lending pushed borrowers towards safer options such as gold loans. As a result, demand for gold-backed credit increased across customer segments.
To capitalise on this trend, gold loan NBFCs adopted different strategies. Large NBFCs expanded their business through existing branches by leveraging brand strength. Meanwhile, mid-sized players opened new branches and partnered with banks and larger NBFCs as originating agents.
CRISIL Ratings Director Aparna Kirubakaran said the average AUM per branch rose from ₹10 crore in FY24 to ₹14 crore in the first half of the current financial year. She added that simplified loan-to-value norms for small-ticket gold loans, effective from April 1, 2026, will further support sector growth.