<p>Bengaluru: Women borrowers have emerged as an important growth driver in gold loans’ expansion as they have accounted for 39% of gold loan originations by volume in 2025, up from 36% in 2022. According to TransUnion CIBIL’s Gold Loan Landscape Report, strong growth among women is visible not only in southern markets but also across western and northern states. The report highlights notable momentum among women borrowers in states such as Telangana, Uttar Pradesh, Rajasthan, Gujarat, Maharashtra and Madhya Pradesh, and these reflect the broadening geography of demand.</p><p>The report stated that gold loans have grown rapidly to become the country's second-largest retail credit product by balance share, and gold loan balances have grown 3.8x since March 2022, with their share in India’s retail credit portfolio rising from 5.9% to 11.1% by December 2025.</p><p>Also, the average gold loan balance per account increased from Rs 1.1 lakh in March 2022 to Rs 1.9 lakh in December 2025.</p>.Gold loans and India's MSME opportunity.<p>Gold loan origination volumes have grown 2.3x since the first quarter of 2022, while origination value has increased 5.1x over the same period. The average ticket size rose from Rs 90,000 in Q1 2022 to Rs 1.96 lakh in Q4 2025. This indicates that the market is moving toward higher-value borrowing.</p><p>The report highlighted that borrower profiles are also changing, and that this suggests that gold loans are becoming more broad-based and diverse in the borrower profiles.</p><p>Bhavesh Jain, MD and CEO, TransUnion CIBIL, said, “Gold has always held deep financial and cultural relevance in India, but what we are seeing now is a structural shift in how gold-backed borrowing is being used. Gold loans are increasingly becoming a mainstream, organised and accessible form of secured credit. Their rapid growth reflects both lender confidence and rising consumer acceptance."</p><p>“What is particularly notable is that the segment is drawing more borrowers with stronger credit profiles, larger ticket sizes and repeat usage. This is an indication that gold loans are no longer being used only for short-term liquidity needs but are becoming part of broader household borrowing behaviour,” he added.</p><p>The report said that borrowers with a history of serious delinquency who subsequently rely on gold loans face a significantly higher risk of disengagement from the formal credit system. Their credit-access closure rate was around 1.6x higher than that of non-defaulting borrowers, suggesting that for a section of stressed borrowers, gold loans may increasingly be functioning as a product of last resort.</p>
<p>Bengaluru: Women borrowers have emerged as an important growth driver in gold loans’ expansion as they have accounted for 39% of gold loan originations by volume in 2025, up from 36% in 2022. According to TransUnion CIBIL’s Gold Loan Landscape Report, strong growth among women is visible not only in southern markets but also across western and northern states. The report highlights notable momentum among women borrowers in states such as Telangana, Uttar Pradesh, Rajasthan, Gujarat, Maharashtra and Madhya Pradesh, and these reflect the broadening geography of demand.</p><p>The report stated that gold loans have grown rapidly to become the country's second-largest retail credit product by balance share, and gold loan balances have grown 3.8x since March 2022, with their share in India’s retail credit portfolio rising from 5.9% to 11.1% by December 2025.</p><p>Also, the average gold loan balance per account increased from Rs 1.1 lakh in March 2022 to Rs 1.9 lakh in December 2025.</p>.Gold loans and India's MSME opportunity.<p>Gold loan origination volumes have grown 2.3x since the first quarter of 2022, while origination value has increased 5.1x over the same period. The average ticket size rose from Rs 90,000 in Q1 2022 to Rs 1.96 lakh in Q4 2025. This indicates that the market is moving toward higher-value borrowing.</p><p>The report highlighted that borrower profiles are also changing, and that this suggests that gold loans are becoming more broad-based and diverse in the borrower profiles.</p><p>Bhavesh Jain, MD and CEO, TransUnion CIBIL, said, “Gold has always held deep financial and cultural relevance in India, but what we are seeing now is a structural shift in how gold-backed borrowing is being used. Gold loans are increasingly becoming a mainstream, organised and accessible form of secured credit. Their rapid growth reflects both lender confidence and rising consumer acceptance."</p><p>“What is particularly notable is that the segment is drawing more borrowers with stronger credit profiles, larger ticket sizes and repeat usage. This is an indication that gold loans are no longer being used only for short-term liquidity needs but are becoming part of broader household borrowing behaviour,” he added.</p><p>The report said that borrowers with a history of serious delinquency who subsequently rely on gold loans face a significantly higher risk of disengagement from the formal credit system. Their credit-access closure rate was around 1.6x higher than that of non-defaulting borrowers, suggesting that for a section of stressed borrowers, gold loans may increasingly be functioning as a product of last resort.</p>
