NBFC Gold Loans Surge

Gold loans have emerged as a major business segment for Non Banking Financial Companies (NBFCs). According to the latest data released by the Reserve Bank of India (RBI), gold loans extended by NBFCs reached ₹3.29 lakh crore by the end of May, marking a 70% year on year increase.

Among all categories of loans offered by NBFCs, gold loans recorded the highest growth during the past year. The RBI also noted healthy growth in housing and vehicle loans compared with the same period last year.