Outstanding gold loans have surged over last three years, says Union Minister of State for Finance
Union Minister Pankaj Chaudhary reported that outstanding gold loans in India have surged significantly, reaching ₹18.29 lakh crore by March 2026. Despite the growth in lending, the gross non-performing asset ratio for these loans has declined over the last five years.
Why it matters
The data highlights the growing importance of gold-backed credit in India's financial inclusion strategy and the stability of the gold loan market.
Outstanding gold loans extended by banks and Non-Banking Financial Companies (NBFCs) in India have surged over the last three years, said Union Minister of State for Finance Pankaj Chaudhary on Monday.
Replying to a question by Cuddalore Member of Parliament M.K. Vishnu Prasad in the Lok Sabha, Mr. Chaudhary said that combined gold loan advances outstanding at Scheduled Commercial Banks (SCBs) and NBFCs rose from about ₹7.46 lakh crore as of March 31, 2023 to roughly ₹18.29 lakh crore as of March 31, 2026.
Gold loans outstanding at SCBs alone climbed from ₹6,15,341 crore in March 2023 to ₹14,63,118 crore in March 2026. Of this, Public Sector Banks accounted for ₹11,30,940 crore, followed by Private Sector Banks with ₹3,06,111 crore and Small Finance Banks with ₹18,356 crore.
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