Why Gold Loans Doubled in 2025: Insights

Gold loans saw a major rise in 2025, with demand almost doubling across India. More people turned to gold loans as a quick and reliable way to meet urgent financial needs during uncertain times. Here’s why:

1. Gold Prices Hit Record Highs

As gold prices increased, borrowers received higher loan amounts for the same gold. This made gold loans more attractive, especially in emergencies.

2. Fast & Simple Process

Gold loans offer instant approvals, minimal documentation, and no credit score requirement. It became the first choice for quick funds.

3. Rise in Personal Loan Rejections

Due to rising NPAs, banks became stricter with unsecured personal loans. Many turned to gold loans as a safer, secured alternative.

4. Rural Demand Went Up

Farmers and small business owners in rural areas used gold loans to manage crop loss, health issues, and daily expenses.

5. MSMEs Switched to Gold Loans

Small businesses found gold loans easier to access compared to business loans, which often come with strict terms and delays.

6. Affordable Interest Rates

In 2025, gold loan interest rates ranged between 8% to 12% p.a., making them cheaper than most unsecured loans.

Conclusion

Gold loans became the most preferred borrowing option in 2025 due to their speed, ease, and value. More Indians unlocked the true power of gold when they needed it most.