Golden Surge: The Future of Gold Loan NBFCs

Assets under management for gold-loan focused non-banking financial companies (NBFCs) are anticipated to witness a 40% compound annual growth rate (CAGR) by March 2027, potentially exceeding ₹4 lakh crore. This impressive uptrend is largely attributable to surging gold prices and a conducive regulatory landscape, according to a report by Crisil Ratings.

The report emphasizes the role of high gold prices, which have soared 68% within this fiscal, in enhancing collateral values, thereby enabling lenders to increase loan disbursements. In addition, the scarcity of unsecured lending options is steering borrowers toward secured gold loans, further fueling the market for NBFCs, Crisil Ratings notes.

Director Aparna Kirubakaran of Crisil Ratings points out that leading gold-loan NBFCs are scaling up portfolios through existing branches while mid-sized companies are focusing on expanding branch networks and partnering with larger entities. With regulatory adjustments set for 2026, including loan-to-value (LTV) norms, NBFCs are advised to maintain rigorous risk management and audit practices to ensure sustainable growth.