People had never seen such interest in the gold loan before. On July 25, 2025, the loan on gold reached Rs 2.94 lakh crore. There is a growth of 122 percent in a year. It has a hand in the rules of gold, softening in gold loan rules and changing thinking about gold loans. Till now the gold loan was considered the last option. But, now people are seeing more benefits in gold loans. Now more loans are also being provided due to bounce in gold.
Gold prices in country and abroad at record high
Gold loan prices in India have reached record high. Gold prices have also set a new record of height abroad. On September 29, the gold futures on MCX rose by 1.32 per cent to Rs 1,15,294 lakh per 10 grams. There are many reasons for the rise in gold prices. These include geopolitical tension, impact on the supply chain of tariffs and shopping in many centers of the world. The kind of return that Gold has given in the last few years has also increased the interest of people in investment in gold.
Gold loan growth 30-40 percent CAGR
Experts say that now people in cities are showing great interest in taking gold loans. Before festivals, traders increase their stock by taking a gold loan. Due to this, the growth of gold loan has been 30-40 percent CAGR in the last few years. A big reason for the increasing interest of people in gold loans is that a person’s credit history is not necessary for this. The gold loan comes in the secured loan category. Due to this, there is not much risk in giving gold loan to bank or NBFC.
Gold has been giving economic security for centuries
Experts say that at first sight, there is not much risk in taking a gold loan. But, the fast growing gold loan shows that people are mortgaging their assets, which are useful in the back. Gold in India has been seen as assets that are useful when other sources of money are closed. For decades, the family has been watching the gold kept in the house as a security. The increasing number of people taking gold loans lead to two meanings.
Gold loan interest less than second loan
First, people seem beneficial to take gold loan compared to the second loan. This is correct because the interest rate of gold loan is lower than a loan on a personal loan or credit card. Second, when the money comes, you can bring the loan back to your home by repaying the loan. Some people believe that keeping gold at home also helps in security. There is no worry about its security when the bank has gold. While giving gold loan, banks maintain your gold loan record.
Gold loan should be your last option
Experts say that despite the benefits of gold loan, you should avoid taking gold loan again and again. Special conditions such as children’s education, health emergency should avoid taking gold loan. Second, if you have taken a gold loan, then there should be no lapse in its repayment. The bank or NBFC has the option to seize it if there is no repair of gold loan. In such a situation, there is a danger of losing the asset, which has been giving financial security to the family for decades.