NBFC Gold Loans Surge 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.