Jewellery-backed loans soar 70%, lead NBFC retail credit growth
Outstanding loans against gold jewellery from non-banking financial companies (NBFCs) surged by 69.9% year-on-year to ₹3.29 lakh crore by May 2026, driven by high gold prices. This growth significantly outpaced the overall retail loan increase of 19.5%, with gold loans now comprising 5.6% of all loans. The trend indicates a shift towards secured lending, enhancing financial inclusion for households with substantial gold holdings.