Gold Loan Boom in India: Foreign Investors Eyeing Lucrative Market
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CNBC Awaaz•21-03-2026, 15:17
Gold Loan Boom in India: Foreign Investors Eyeing Lucrative Market
•Indian households hold 34,000 tons of gold, valued at $5 trillion, fueling a rapidly growing gold loan sector.
•Gold loans surged to 4 trillion rupees by January from 1.75 trillion rupees a year ago, becoming India's largest retail loan segment after home and vehicle loans.
•Demand is driven by tightened unsecured loan regulations, rising gold prices allowing larger loans, quick disbursement, and lower interest rates.
•Foreign investors are entering the market: Bain Capital plans 41.7% stake in Manappuram Finance, and Mitsubishi UFJ Financial Group aims for 20% in Shriram Finance.
•NBFCs like Muthoot Finance and Manappuram Finance benefit significantly, offering loans within an hour, though experts suggest it may also indicate economic pressure.
