economy
Inside India newsletter: Gold loans are thriving in India
Gold-backed lending, a billion-dollar industry, is reshaping India’s retail credit landscape and drawing global investors to the sector.
TL;DR
- Indian households own over 34,000 tons of gold, valued at around $5 trillion.
- Gold loans are the fastest-growing retail credit category in India, with volumes more than doubling in one year.
- Stricter rules on unsecured loans, soaring global gold prices, and improved access are driving the gold loan boom.
- Global investors like Bain Capital and MUFG are increasing their involvement in India's gold lending sector.
- Non-banking financial companies (NBFCs) play a significant role in the gold loan market, often disbursing loans quickly.
- While some see the trend as financial maturity, others view it as a sign of economic stress and households feeling financially squeezed.