Gold Loans Soar 70%

Non-banking financial companies' gold-backed lending grew nearly 70% year-on-year to reach Rs 3.41 lakh crore in June 2026, significantly outpacing overall NBFC credit growth of 14.4% during the same period.

The total NBFC credit reached Rs 59.3 lakh crore in June 2026, with retail loans increasing by 20.3% year-on-year. Housing and vehicle loans also displayed robust credit growth during this period.

NBFC credit to industry expanded by 6.7% year-on-year in June 2026, while credit to the services sector grew 17.6% year-on-year. Additionally, credit to agriculture and allied activities increased by 17.9% year-on-year.

The Reserve Bank of India strengthened regulations for gold and silver collateral loans, which may have contributed to the growth in gold-backed lending.

The strong expansion in gold-backed lending is a notable trend in the NBFC sector, and it will be interesting to see how this growth continues in the coming months.

## Context The growth in NBFC credit is taking place amidst a broader economic context, where the Reserve Bank of India has revised its growth forecast upwards to 6.7% for FY27, citing resilient domestic demand and sustained expansion in manufacturing and services. However, the outlook remains uncertain due to factors such as the south-west monsoon, El Nino conditions, geopolitical developments, and global trends.