Gold loans in India lift secured lending as Experian reports stronger FY26 growth

Gold loans were expected to stay important for lenders in the near term, as demand and loan sizes kept rising. Experian said secured lending was taking a larger role in India’s retail credit market. The report linked the trend to strong sourcing volumes and higher average ticket sizes in gold loans.

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Experian reported that secured loans made up 68 per cent of sourcing value in FY26. Secured lending rose 35 per cent year-on-year. This was faster than the 22 per cent growth seen in unsecured lending. The report said gold loans were a key driver of this shift.

Gold loans growth in FY26 and Q4FY26

Gold loan sourcing value more than doubled year-on-year to Rs 7.6 lakh crore in the fourth quarter of FY26. This marked a 115 per cent rise, Experian said. Assets under management grew 47 per cent to Rs 11.9 lakh crore as of March 2026. The figures pointed to steady expansion in the segment.

The average gold loan ticket size climbed to Rs 2.1 lakh in Q4FY26. It stood at Rs 1.4 lakh in the year-ago period. Experian said this jump suggested stronger customer traction. It also reflected improving loan sizes in a segment backed by collateral.

Across FY26, Experian said gold loan sourcing kept a stronger growth path than unsecured products. The report compared it with personal loans and credit cards. These categories were often driven by high volumes. Even so, gold loans showed faster momentum through the year.

Secured lending and retail credit sourcing in FY26

The report noted a wider recovery in retail credit demand. Overall sourcing grew 31 per cent year-on-year to Rs 75 lakh crore in FY26. Experian linked this to better borrower confidence. It also said ticket sizes improved across segments, alongside a strong return in unsecured lending.

Experian said secured lending gained prominence in portfolio mix due to gold loans. The report suggested collateral-backed loans may keep anchoring retail credit growth. This view depended on current trends continuing. It also reflected lenders’ focus on secured products.

Gold loans market share shift among NBFCs and banks

Non-banking financial companies gained from the gold loan rise, the report said. NBFCs increased market share in sourcing value to 40 per cent in Q4FY26. It was 28 per cent a year earlier. Over the same period, the share of public sector banks moderated, Experian added.

Asset quality for gold loans also improved, according to Experian. Net 90+ delinquency rates eased to 0.2 per cent from 0.3 per cent a year ago. The report said this supported further growth. It also matched the stronger demand and higher ticket sizes seen in FY26.

With inputs from PTI