From God’s Own Country to Gold’s Own Vault: Kerala’s NBFCs Outshine the UK With Rs 4.6 Lakh Cr Gold Reserves

India's obsession with gold is not hidden, but one of its states, Kerala, is making headlines with its humungous gold reserves. Non Banking Finance Companies (NBFCs) in Kerala hold a massive 381 tonnes of gold reserve, which is way more than gold reserves in the United Kingdom, Austria, Spain, and several other countries, reported The New Indian Express.

As per TNIE report, Kerala's NBFCs currently hold around Rs 4.6 lakh crore worth of gold with Muthoot Finance, Mannappuram Finance, Muthoot Fincorp, Kerala State Financial Enterprises or KSFE, leading the game.

Which NBFC Hold How Much Gold?

Muthoot Finance holds around 208 tonnes of gold, Mannappuram Finance holds around 56.4 tonnes of gold, Muthoot FinCorp holds around 43.69 tonnes of gold, and KSFE has 67.22 tonnes of reserves, and Indel Money has nearly 6 tonnes of gold reserves. The combined gold reserves of these NBFCs is way more than UK's gold reserves of 310 tonnes, and Spain's gold reserves of 282 tonnes, as per TNIE. GoodReturns couldn't independently confirm the gold reserves valuation held by top NBFCs in Kerala.

Why Kerala's NBFCs Hold Massive Gold Reserves?

In Kerala, gold serves as more than just an investment; it's a cultural symbol and financial safety net. Gold loans are deeply embedded in the state's economic fabric. "In tier-3, tier-4, and tier-5 cities, gold loans are the first preference for any immediate requirement - whether it's putting a son through college, painting the house, or buying machinery for a workshop," told TNIE.

The rising price of gold has made it an attractive option for many. Gold rate in India has increased by more than 50% since the beginning of the year 2025.

With the Reserve Bank of India (RBI) tightening rules on unsecured lending and loan rollovers, NBFCs find themselves in an advantageous position. The liquidity crunch has led borrowers to seek secured credit options like gold loans.

However, this boom has also fueled growth in the unorganised sector. Only 37% of India's gold loans are managed by organised entities; the rest remain with pawnshops and local moneylenders.

Globally recognised as the largest consumer of gold, India has between 2,950 to 3,350 tonnes locked in vaults as collateral for loans. Southern India remains central to this financial culture with Kerala at its core. The surge in gold prices has transformed household ornaments into valuable national assets.