Gold Loan Boom: Rs 14.5 lakh crore market spurs NBFCs to add 3,000 branches

MONEYCONTROL News | November 25, 2025 / 10:00 IST India's gold loan industry is poised for major expansion as non-bank lenders prepare to add nearly 3,000 dedicated branches over the next year, the Economic Times reported. The fast-growing market, largely dominated by state-owned banks, rose 36% year-on-year to reach Rs 14.5 lakh crore by the end of September.

Industry executives told the Economic Times that this planned branch rollout is among the largest annual expansions seen in the segment. Many lenders are setting up exclusive gold loan branches to capitalise on rising demand while also extending the product to their existing networks.

George Alexander Muthoot, managing director of Muthoot Finance, said to the Economic Times that demand for gold loans has surged as borrowers who are unable to secure unsecured microfinance loans are increasingly turning to gold-backed credit to meet their financial needs. The microfinance sector has tightened lending norms amid heightened asset quality concerns, pushing more customers-particularly farmers and small traders-toward jewellery-backed loans. Strong gold prices have further boosted loan eligibility.

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Source: https://www.moneycontrol.com/news/business/gold-loan-boom-rs-14-5-lakh-crore-market-spurs-nbfcs-to-add-3-000-branches-13694425.html