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Gold Loan News: Data from CRIF High Mark reveals that South Indian states are at the forefront when it comes to availing gold loans. These states include Tamil Nadu, Andhra Pradesh, Karnataka, Telangana, and Kerala.

Gold Loans: On the gold loan front, a highly startling and concerning statistic has emerged from the country's banking sector. India's gold loan portfolio has recorded a year-on-year surge of 50 percent. Most astonishingly, 75 percent of this total outstanding debt is accounted for by just five South Indian states alone.

South Indian States Lead the Way

According to data from the credit information company CRIF High Mark, as of March 2026, out of a total gold loan portfolio worth ₹18.6 lakh crore (including both banks and NBFCs), the five southern states—Tamil Nadu, Andhra Pradesh, Karnataka, Telangana, and Kerala—account for ₹13.94 lakh crore.

The data indicates that as of March 2026, Tamil Nadu leads the pack with outstanding loans amounting to ₹5.96 lakh crore. Andhra Pradesh (₹3.08 lakh crore), Karnataka (₹1.81 lakh crore), Telangana (₹1.60 lakh crore), and Kerala (₹1.45 lakh crore) rank second, third, fourth, and fifth, respectively, in terms of outstanding gold loans. This segment has witnessed rapid growth driven by rising gold prices, increased credit demand, and a growing preference for secured borrowing. Thanks to a deep-rooted cultural affinity for gold and a robust lending infrastructure, South India continues to remain the stronghold for this sector.

What is the Situation in Other States?

Despite being the most populous state in the country, Uttar Pradesh has an outstanding gold loan balance of only ₹42,300 crore. The figures for other major states are also relatively low—West Bengal has outstanding gold loans of ₹35,000 crore, Rajasthan has ₹41,700 crore, and Gujarat stands at ₹57,100 crore. In March 2026, the southern states led the pack in terms of growth—Karnataka (10.5%) and Telangana (12.8%)—followed by UP (11.2%).

Who topped the charts in other categories?

According to a report by CRIF High Mark, asset quality within the gold loan segment has improved. Between March 2025 and March 2026, default rates in the large-ticket loan segment—ranging from ₹2.5 lakh to ₹5 lakh—were halved. This indicates that collateral coverage has strengthened significantly within the large-ticket segment. According to the report, personal loans recorded a healthy year-on-year (y-o-y) growth of 12.9%. This demonstrates that, despite stricter lending norms, the demand for unsecured retail credit remains sustained.

Turning to other categories, consumer durable loans witnessed a 20.8% increase, driven primarily by a surge in the purchase of electronics and household appliances. Vehicle financing also continued to show strong momentum, recording a year-on-year growth ranging between 13.9% and 15.1%. Meanwhile, according to the report, home loans maintained a steady growth rate of 9.4%, driven mainly by housing demand and ongoing activity within the property market.