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Inside India newsletter: Gold loans are thriving in India — and attracting global investors
- Gold-backed lending in India is surging, making it the fastest-growing retail loan segment as bullion prices rise.
- Bain Capital received RBI approval to acquire up to 41.7% in Manappuram Finance, signaling strong investor interest.
- NBFCs dominate gold-loan volumes, accounting for roughly 45%–50% of loans, according to Macquarie research.
- RBI data show gold loans more than doubled in a year to 4 trillion rupees in January.
- Shifts in consumer credit reflect tighter rules on unsecured lending and a surge in gold prices.
- The gold-loan surge is broadening beyond traditional southern and semi-urban markets to middle- and upper-class urban segments.
- Manappuram Finance and Muthoot Finance have benefited from rising demand, with their shares outperforming the Nifty 50.
- Industry executives see gold loans as a fast, accessible credit line, even for borrowers with lower credit scores.
- Analysts warn the gold-loan boom could indicate underlying financial stress amid slower income growth.
- The RBI's approval of private equity investment underscores international interest in India's gold-asset finance.
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