India's gold loan market poised to exceed ₹30 trillion by FY28

India's gold loan market is positioned for significant growth over the next two years, with industry analysis suggesting the segment will exceed ₹30 trillion by FY28. The expansion reflects sustained consumer demand for collateral-based lending against gold holdings, a traditional yet resilient credit product across Indian markets.

Public sector banks continue to lead the gold loan landscape, commanding a commanding 60 per cent market share as of March 2026. This dominant position underscores the trust consumers place in government-backed lenders for such financial products, though private players and non-banking financial institutions have been gradually increasing their presence in this segment.

Market analysts have identified leading players positioned to benefit from this growth trajectory. The expansion is driven by several factors, including steady demand from retail consumers, rural market penetration, and the inherent security that gold collateral provides to lenders during volatile economic periods.

As gold loan portfolios expand, competition is likely to intensify among financial institutions seeking to capture market share in this high-margin lending category. The sector's growth potential reflects both demographic tailwinds and the cultural significance of gold in Indian household finances.