One in Two Gold Borrowers With Strong Credit Profiles Took Another Gold Loan Within 12 Months: TransUnion CIBIL

Key Highlights:

• India’s gold loan outstanding balances reached ₹22.5 lakh crore in August 2026, nearly three times the level recorded in August 2023.
• The number of active gold loan borrowers rose to 5.5 crore, accounting for 21% of India’s credit-active consumers, with average balances touching ₹4.1 lakh per borrower.
• More than one in two low-risk borrowers who availed a gold loan originated another gold loan within the following 12 months, highlighting strong repeat borrowing behaviour.
• Gold loan sanction values grew 12% year-on-year to ₹8.2 lakh crore during the quarter ended June 2026, despite a decline in origination volumes, reflecting a shift towards higher-ticket loans.
• Two in five borrowers who had prior credit stress at the time of gold loan origination returned to regular repayment across all active credit obligations within 12 months.
• The share of borrowers with a CIBIL Score above 800 increased to 40%, while Gen Z borrower participation grew 19% year-on-year.

Bengaluru, November 5, 2026: India’s gold loan market continued its strong expansion in 2026, with outstanding balances reaching ₹22.5 lakh crore as of August 2026, nearly triple the levels recorded in August 2023.

According to TransUnion CIBIL’s latest report, “Lending Unlocked: Gold Loans, November 2026,” the market had 5.5 crore active borrowers as of August 2026, representing 21% of India’s credit-active consumers. Gold loans continue to rank among the fastest-growing credit products in the country over the past three years.

Shift Towards Larger Ticket-Size Loans
The report found that gold loan sanction values increased 12% year-on-year to ₹8.2 lakh crore during the three months ended June 2026.

During the same period:

• Approximately 3.7 crore gold loans were disbursed
• Unique borrowers originating gold loans remained broadly stable at 2.4 crore
• Loan originations above ₹2.5 lakh grew 19% year-on-year by volume

The findings indicate that market growth is increasingly being driven by larger-ticket loans rather than rising borrower participation alone.

Gold Loan Adoption Remains Widespread
Gold loans continue to witness strong adoption across various demographic and geographic segments.

Key trends include:

• Two-thirds of originations came from semi-urban and rural markets
• Women accounted for two in five gold loan originations
• Gen Z borrower volumes increased 19% year-on-year
• Borrowers with CIBIL Scores above 800 accounted for 40% of originations, up four percentage points from June 2023

While southern India remains the foundation of the gold loan market, growth is increasingly being supported by borrowers from other regions as gold-backed credit gains wider acceptance across the country.

Repeat Borrowing Remains a Major Growth Driver
The study highlighted a strong tendency among gold loan borrowers to return for additional borrowing.

Among low-risk borrowers who originated a gold loan between July 2023 and June 2025:

• 57% of borrowers taking gold loans up to ₹2.5 lakh originated another gold loan within 12 months
• 54% of borrowers taking gold loans above ₹2.5 lakh also returned for another gold loan within the following year

For the purpose of the analysis, low-risk borrowers were defined as those with:

• CIBIL Score of 731 or above
• No loans 30 days or more past due during the preceding six months
• No active liquidity-oriented credit products

The report notes that gold loan borrowers demonstrated higher repeat borrowing behaviour than consumers using personal loans, credit cards, unsecured business loans and other liquidity-focused credit products.

Previously Stressed Borrowers Show Improved Repayment Behaviour
The report also examined borrowers who originated liquidity-oriented credit products between July 2024 and June 2025 and had signs of prior credit stress.

Among gold loan borrowers:

• 29% of borrowers with loans up to ₹2.5 lakh had an existing delinquent credit obligation prior to gold loan origination
• 27% of borrowers with loans above ₹2.5 lakh also showed signs of prior stress

Twelve months later:

• 41% of borrowers with gold loans up to ₹2.5 lakh were current across all active obligations
• 43% of borrowers with larger gold loans were current across all active obligations

Overall, around 42% of previously delinquent gold loan borrowers returned to regular repayment behaviour across their active credit portfolio within twelve months.

The report clarifies that the analysis does not establish causation or suggest that gold loans directly improved repayment outcomes, but highlights a significant repayment pattern observed across a large borrower base.

Asset Quality Shows Improvement
Gold loan borrowers have shown improving repayment performance over recent quarters.

The share of active gold loan borrowers with accounts 30 or more days past due declined from:

• 2.0% in June 2025
• To 1.4% in June 2026

During the same period, the active borrower base increased from 4.8 crore to 5.4 crore borrowers.

Early Risk Indicators Identified
The report analysed five crore active gold loan borrowers with:

• CIBIL Scores above 730
• At least two years of credit history
• No active delinquent credit obligations as of December 2025

Among this cohort:

• 7% experienced delinquency between January and June 2026

Certain behavioural indicators increased future delinquency risk:

• Consumers missing more than one payment in the previous six months were three times more likely to experience delinquency
• Borrowers holding business-oriented loans alongside gold loans were twice as likely to experience delinquency
• Borrowers with non-mortgage outstanding balances above ₹5 lakh were 1.4 times more likely to become delinquent

Bhavesh Jain, Managing Director & CEO, TransUnion CIBIL, said: “As consumers access gold-backed credit at different stages of their financial journeys, lenders need to look beyond the value of the pledged collateral to understand their overall borrowing requirements.”

He added: “Repeat borrowing, changes in credit exposure and repayment behavior across different products are important considerations when assessing a customer’s financial position. A robust view of credit history, existing obligations and repayment capacity can help lenders identify suitable financing opportunities, strengthen customer relationships and manage portfolio risk responsibly.”

Growing Market Requires Stronger Borrower-Level Assessment
According to the report, the evolution of India’s gold loan market is being driven by:

• Broader consumer participation
• Increasing loan ticket sizes
• High levels of repeat borrowing
• Improving repayment behaviour

However, sustainable growth will increasingly depend on lenders combining collateral-based lending practices with a comprehensive understanding of borrower-level credit behaviour, financial obligations and repayment capacity.

The report concludes that a more holistic assessment of credit profiles can help lenders manage portfolio risk while continuing to support growth in one of India’s fastest-expanding credit categories.

About TransUnion CIBIL
TransUnion CIBIL is India’s leading credit information company and provides credit information, analytics, and risk-management solutions to financial institutions and businesses.

Its customers include:

• Banks
• NBFCs
• Housing Finance Companies
• Microfinance Institutions
• Telecom Operators
• Insurance Companies

The company leverages technology, credit data, and advanced analytics to help businesses make informed lending decisions while promoting greater financial inclusion and responsible credit growth.