CONNECT WITH US
Fintech

Fintech

Gold loans near 10% of leading NBFCs’ loan books as lenders pivot to secured credit

ET BFSI Fintech logo

Published on

Add as a preferred source on Google
Gold loans near 10% of leading NBFCs’ loan books as lenders pivot to secured credit

Gold loans near 10% of leading NBFCs’ loan books as lenders pivot to secured credit

Gold loans accounted for nearly 10% of the four lenders’ combined loan books, up from 9.3% in the June quarter and 6.23% a year earlier. Industry data showed that bank gold loans grew 83% year on year to Rs 5.6 lakh crore in August 2026, while NBFC gold loans increased 69% to Rs 3.6 lakh crore

IIFL Finance led with Rs 65,729 crore in gold loans, accounting for nearly 53% of its AUM. Bajaj Finance’s gold loan AUM rose 105% year on year to Rs 24,195 crore, outpacing overall loan growth. Piramal Finance flagged that 15% to 23% of industry gold loan disbursements went to borrowers already over 90 days overdue on another loan. A sustained fall in gold prices could weaken collateral cover, underscoring the need for prudent lending and borrower assessment.

Gold loans are emerging as a major growth driver for non-banking financial companies ( NBFCs ), with their share of the combined loan books of Bajaj Finance , HDB Financial Services , L&T Finance and IIFL Finance approaching 10% in the September 2026 quarter. Their combined gold loan portfolio nearly doubled year on year to about Rs 1 lakh crore, as lenders expanded secured lending amid stress in unsecured credit and microfinance. The rapid expansion is also bringing emerging signs of borrower stress into focus. 23% a year earlier. 6 lakh crore.



Source link
Related Topics:Fintech

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We TheMorningPulse.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It's possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.