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Gold Loan: According to the latest RBI data, the gold loan portfolio of NBFCs grew by nearly 70% in May 2026. Find out why people are increasingly opting for gold loans and the reasons behind this trend.

Gold Loan: If you think personal loans or home loans are the most popular choices, the picture has changed. Recent RBI data indicates that gold loans have become the fastest-growing loan segment. A massive surge has been observed, particularly in gold loans offered by NBFCs. According to a new report released by the RBI, the total credit extended by NBFCs against gold jewelry reached ₹3.29 lakh crore by the end of May 2026. This marks an increase of approximately 69.9% compared to May of the previous year.

Why are people taking gold loans?

There are several reasons behind the rising demand for gold loans. The primary reason is that gold prices remain at record highs, allowing people to secure larger loan amounts against their jewelry than before. Additionally, the gold loan process is quite simple; it requires minimal documentation, offers quick approval, and ensures faster disbursement of funds.

What do the figures say?

According to RBI data, total retail loans grew by 19.5% year-on-year in May 2026. Meanwhile, gold loans recorded a growth of nearly 70%—the highest among all retail loan categories. While banks also offer gold loans, NBFCs have registered the fastest growth in this segment in recent months.

Keep these points in mind—

If you are considering a gold loan, do not opt ​​for it solely because the money is available quickly. Always thoroughly understand the interest rates, processing fees, loan tenure, and repayment terms before proceeding. Pledged gold could also be auctioned if the loan is not repaid on time.