New Delhi, April 14 (NationPress) The landscape of gold loans in India has seen a remarkable increase, expanding four times in just three years. The typical ticket size has also nearly doubled, now approaching Rs 2 lakh. This surge reflects a significant uptick in demand from borrowers, as well as a growing acceptance of gold-backed credit, according to a report released on Tuesday.

As per findings from TransUnion CIBIL, the outstanding balance of gold loans has escalated nearly fourfold since March 2022, with their portion in India's retail credit market climbing from 5.9% to approximately 11% by December 2025. This positions gold loans as the second-largest retail credit product by balance share.

The rise in gold loans can be attributed to several factors: increased borrower adoption, larger ticket sizes, a wider array of lending institutions, and a shift in borrower demographics. More consumers are now entering this space, including a growing number of women and those possessing robust credit histories.

The report emphasized a notable growth trend among NBFCs, whose share of gold loan balances increased from 7% in March 2022 to 11% by December 2025. Public sector banks also solidified their position, enhancing their share from 57% to 62% within the same timeframe.

The average gold loan balance per account rose significantly from Rs 1.1 lakh in March 2022 to Rs 1.9 lakh in December 2025.

Loan origination volumes surged 2.3 times since the first quarter of 2022, with origination value soaring nearly five times. The average ticket size jumped from Rs 90,000 in Q1 2022 to Rs 1.96 lakh in Q4 2025.

Borrower demographics have also evolved, with the share of prime and above-prime borrowers increasing from 43% in 2022 to about 52% in 2025. Conversely, the segment of new-to-credit customers diminished, falling from 12% to 6%, indicating a more seasoned and varied borrower base.

Significantly, women borrowers have emerged as a pivotal factor in this growth, making up 39% of gold loan originations in 2025, up from 36% in 2022. This trend is evident across both traditional southern markets and states such as Uttar Pradesh, Rajasthan, Gujarat, Maharashtra, and Madhya Pradesh.

Borrower leverage has also seen an increase, with the average outstanding loan per borrower rising from Rs 1.9 lakh in December 2022 to Rs 3.1 lakh by December 2025. The proportion of borrowers with exposures exceeding Rs 2.5 lakh grew to 14%, up from 10% in 2022.

TransUnion CIBIL's MD and CEO, Bhavesh Jain, remarked that gold has long been a symbol of financial and cultural significance in India. What is now emerging is a transformative shift in the utilization of gold-backed borrowing.

"Gold loans are becoming an increasingly mainstream, organized, and accessible form of secured credit. Their rapid growth is indicative of both lender confidence and rising consumer acceptance," he noted.

Despite this rapid expansion, concerns have arisen regarding asset quality.

For loans issued during the six months concluding in June 2025, the overall delinquency rate was recorded at 1.1%. Borrowers with balances exceeding Rs 2.5 lakh exhibited a higher delinquency rate of 1.5%, more than double the 0.7% observed among borrowers with lower exposures.