New Delhi, June 16 -- India's gold-loan market reached Rs.18.6 trillion in FY26, up 50.4% from a year earlier, making it the country's second-largest retail credit segment after housing loans.

The growth signals a shift in how Indian households use gold. Traditionally, households viewed gold primarily as a store of value and a cultural asset, pledging it only during periods of financial stress. Now, they are increasingly monetising their idle gold holdings. The surge has been driven by rising gold prices and tighter regulations on unsecured credit.

However, as lenders expand aggressively into higher loan brackets and new geographies, signs of borrower stress are emerging, increasing risks for lenders.

Gold loans have emerged as one of ...