Rising gold prices led to a surge in gold loans, with a 125% increase in November
Gold loans have seen a significant surge, increasing by 125% in a single year. This surge is due to rising gold prices, which are helping people access higher loans. Banks have now overtaken NBFCs in the market share of gold loans.
The rise in gold prices over the past year has also led to an increase in gold loans. According to the latest data from the Reserve Bank of India, gold loans taken from banks by the end of November increased by 125% compared to the previous year.
The surge in gold prices has increased collateral values, allowing people to take out larger loans. Vehicle loans have seen an 11% increase due to increased demand for passenger and commercial vehicles after the GST cut, while consumer loans have seen a decline, primarily due to demand from the festive season that ended in October. Let us explain what the RBI data reveals.
Gold loan figures will surprise you
According to RBI data, loans against gold have seen the highest growth in the past year. Significantly, their annual growth has doubled in the last six months.
Outstanding gold loans increased from ₹898 crore in November 2023 to ₹1.59 lakh crore by November 2024 and reached ₹3.5 lakh crore by November 2025.
Gold prices have increased by approximately 64% in 2025, with the price of 10 grams of 24-carat gold reaching approximately ₹1.35 lakh. Manish Mayank, Head of Gold Loan Business at IIFL Capital, highlights the changes over the past year.
Banks outperform NBFCs
According to the report, NBFCs have expanded their gold loan portfolio, with outstanding loans reaching ₹3 lakh crore. Meanwhile, according to the RBI's latest Trends and Progress Report, banks have overtaken NBFCs in the gold loan market share, capturing 50.35 percent, while financial companies hold the remaining share.
Muthoot Finance, Manappuram, and IIFL Finance are among the largest gold loan providers. According to the RBI's Financial Stability Report, the combined gold loan share of banks and NBFCs accounted for 5.8 percent of total outstanding loans at the end of September.
How fast will car and personal loans be?
Vehicle loans increased to ₹6.8 lakh crore by the end of November, driven by GST reductions and festive discounts. On the other hand, personal loans (12.7%), commercial immovable assets (12.5%), and services (11.7%) accounted for the largest share.
Loans to NBFCs and industry grew by 9.5%. Within personal loans, some sub-categories declined due to their decreasing share in outstanding loans. Home loans declined from 16.66% to 16.43% year-on-year, while credit card outstanding declined from 1.66% to 1.52%.
ICICI Bank stated in a research report that data suggests that consumption slowed slightly by the end of October, with the end of the festive season, and this trend may persist until salary growth picks up.
How much loan has been given to the housing sector?
Loans to the housing sector grew 9.8% year-on-year to ₹31.9 lakh crore, driven by a reduction in home loan interest rates since the beginning of the year. Loans to NBFCs reached ₹17.2 lakh crore, a 9.5% year-on-year increase, but this growth was slower than the 10.9% growth in October.
Sectoral loan data shows that bank loans to the trade sector saw the highest growth, rising 14% to ₹12.3 lakh crore. This was supported by relief measures announced by the government and the RBI.
The regulator allowed banks to offer loan moratoriums to exporters until December to ease payment pressures due to the 50% tariffs imposed by the US government.
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