{"id":10080,"date":"2026-08-08T12:02:30","date_gmt":"2026-08-08T12:02:30","guid":{"rendered":"https:\/\/koshalsambada.in\/?p=10080"},"modified":"2026-08-08T12:02:30","modified_gmt":"2026-08-08T12:02:30","slug":"loans-against-gold-jewellery-why-nbfc-gold-loans-are-growing-nearly-70-despite-tighter-rbi-regulations","status":"publish","type":"post","link":"https:\/\/koshalsambada.in\/?p=10080","title":{"rendered":"Loans Against Gold Jewellery: Why NBFC gold loans are growing nearly 70% despite tighter RBI regulations"},"content":{"rendered":"<p><br \/>\n<\/p>\n<div>\n<div class=\"e9jwa\">\n<div class=\"vdo_embedd\">\n<div class=\"GfdvZ\">\n<section class=\"_bIDB  clearfix id-r-component leadmedia undefined undefined  E9tg9 \" style=\"top:0px\">\n<div class=\"_bIDB\" data-ua-type=\"1\" onclick=\"stpPgtnAndPrvntDefault(event)\">\n<div class=\"ypVvZ\">\n<div class=\"WGttI\"><img src=\"https:\/\/static.toiimg.com\/thumb\/msid-133051583,imgsize-65226,width-400,height-225,resizemode-4\/gold-loan.jpg\" alt=\"Why NBFC gold loans are growing nearly 70% despite tighter RBI regulations\" title=\"Outstanding NBFC loans against gold jewellery rose 69.3% year-on-year to Rs 3.41 lakh crore at the end of June 2026 (representative image)\" decoding=\"async\" fetchpriority=\"high\"\/><\/div>\n<\/div>\n<\/div>\n<div class=\"Ta7d_ img_cptn\"><span title=\"Outstanding NBFC loans against gold jewellery rose 69.3% year-on-year to Rs 3.41 lakh crore at the end of June 2026 (representative image)\">Outstanding NBFC loans against gold jewellery rose 69.3% year-on-year to Rs 3.41 lakh crore at the end of June 2026 (representative image)<\/span><\/div>\n<\/section>\n<\/div><\/div>\n<\/div>\n<p>Loans against gold jewellery by non-banking financial companies (NBFCs) continued to expand sharply in June, growing nearly 70% year-on-year, according to <a href=\"https:\/\/timesofindia.indiatimes.com\/topic\/reserve-bank-of-india\" styleobj=\"[object Object]\" class=\"\" commonstate=\"[object Object]\" frmappuse=\"1\" target=\"_blank\" rel=\"noopener\">Reserve Bank of India<\/a> (RBI) data.<span class=\"id-r-component br\" data-pos=\"3\"\/>Outstanding NBFC loans against gold jewellery rose 69.3% year-on-year to Rs 3.41 lakh crore at the end of June 2026, following a 69.9% increase in May. <!-- -->The pace of growth was significantly higher than the expansion in NBFCs&#8217; overall retail loan portfolio.<span class=\"id-r-component br\" data-pos=\"7\"\/>The latest data point to sustained demand for gold-backed credit even as the RBI has tightened its regulatory framework for lending against precious-metal collateral.<span class=\"id-r-component br\" data-pos=\"9\"\/><\/p>\n<p><h2><b>Gold loans grow faster than overall retail credit<\/b><\/h2>\n<\/p>\n<p><span class=\"id-r-component br\" data-pos=\"11\"\/>NBFC retail loans grew 20.3% year-on-year in June, accelerating from 14.3% growth a year earlier. Outstanding retail credit stood at around Rs 25.62 lakh crore, compared with Rs 21.29 lakh crore in June 2025, according to the RBI data.<span class=\"id-r-component br\" data-pos=\"15\"\/>The central bank said that within retail lending, housing, vehicle and loans against gold jewellery recorded robust credit growth.<span class=\"id-r-component br\" data-pos=\"17\"\/>Housing loans grew 11.4% year-on-year to around Rs 8.44 lakh crore, while vehicle loans rose 15.2% to around Rs 6.24 lakh crore. Consumer durable loans recorded even faster growth of 46.8%, reaching Rs 72,201 crore.<span class=\"id-r-component br\" data-pos=\"19\"\/>However, gold-backed lending remained a standout segment, expanding at more than three times the pace of overall retail credit.<span class=\"id-r-component br\" data-pos=\"22\"\/><\/p>\n<p><h2><b>RBI had flagged concerns over gold lending practices<\/b><\/h2>\n<\/p>\n<p><span class=\"id-r-component br\" data-pos=\"24\"\/>The continued surge comes after the RBI introduced a harmonised regulatory framework for lending against gold and silver collateral.<span class=\"id-r-component br\" data-pos=\"26\"\/>The RBI (Lending Against Gold and Silver Collateral) Directions, 2025, issued in June 2025, laid down rules for regulated entities, including NBFCs.<span class=\"id-r-component br\" data-pos=\"28\"\/>The framework followed supervisory concerns raised by the RBI in September 2024 over practices followed by some lenders.<span class=\"id-r-component br\" data-pos=\"30\"\/>These included deficiencies in the use of third parties for loan sourcing and gold appraisal, inadequate due diligence, weaknesses in monitoring loan-to-value ratios and a lack of transparency in auctions of pledged jewellery after defaults.<span class=\"id-r-component br\" data-pos=\"33\"\/>The RBI had also asked regulated entities to closely monitor their gold-loan portfolios amid significant growth at some lenders.<span class=\"id-r-component br\" data-pos=\"35\"\/>Despite the regulatory scrutiny, gold-backed lending has continued to expand rapidly.<span class=\"id-r-component br\" data-pos=\"37\"\/><\/p>\n<p><h2><b>Industry and services credit growth moderates<\/b><\/h2>\n<\/p>\n<p><span class=\"id-r-component br\" data-pos=\"39\"\/>The growth in gold loans contrasts with a moderation in credit to some other parts of the economy.<span class=\"id-r-component br\" data-pos=\"42\"\/>Credit to industry grew 6.7% year-on-year in June, down from 10.3% a year earlier. The RBI attributed the slowdown primarily to subdued growth in infrastructure, a major component of industrial credit.<span class=\"id-r-component br\" data-pos=\"45\"\/>Credit growth in the services sector also moderated to 17.6%, compared with 22.4% a year earlier. While commercial real estate recorded strong expansion, credit growth to trade and transport operators slowed.<span class=\"id-r-component br\" data-pos=\"47\"\/>Agriculture and allied activities were a notable exception. Credit growth in the segment accelerated sharply to 17.9% in June, from 5.1% a year earlier.<span class=\"id-r-component br\" data-pos=\"49\"\/>The RBI&#8217;s provisional sectoral credit data cover a sample of NBFCs in the Upper and Middle Layers and housing finance companies. Together, these institutions account for about 87% of the total credit covered by the central bank&#8217;s reference data, according to news agency ANI.<\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/timesofindia.indiatimes.com\/business\/india-business\/why-nbfc-gold-loans-are-growing-nearly-70-despite-tighter-rbi-regulations\/articleshow\/133051443.cms\" target=\"_blank\" rel=\"noopener\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Outstanding NBFC loans against gold jewellery rose 69.3% year-on-year to Rs 3.41 lakh crore at the end of June 2026 (representative image) Loans against gold jewellery by non-banking financial companies (NBFCs) continued to expand sharply in June, growing nearly 70% year-on-year, according to Reserve Bank of India (RBI) data.Outstanding NBFC loans against gold jewellery rose [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":10081,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":["post-10080","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-31"],"magazineBlocksPostFeaturedMedia":{"thumbnail":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/1786190550_gold-loan.jpg","medium":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/1786190550_gold-loan.jpg","medium_large":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/1786190550_gold-loan.jpg","large":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/1786190550_gold-loan.jpg","1536x1536":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/1786190550_gold-loan.jpg","2048x2048":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/1786190550_gold-loan.jpg","blogsy-small":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/1786190550_gold-loan.jpg","blogsy-small-tall":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/1786190550_gold-loan.jpg","blogsy-small-square":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/1786190550_gold-loan.jpg","blogsy-small-masonry":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/1786190550_gold-loan.jpg","blogsy-medium":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/1786190550_gold-loan.jpg","blogsy-medium-masonry":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/1786190550_gold-loan.jpg","blogsy-large":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/1786190550_gold-loan.jpg","blogsy-wide":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/1786190550_gold-loan.jpg"},"magazineBlocksPostAuthor":{"name":"admin","avatar":"https:\/\/secure.gravatar.com\/avatar\/8709732a479614e7a8aa24d3eb1b239f30dc6d90c61464ed495001e7a469d856?s=96&d=mm&r=g"},"magazineBlocksPostCommentsNumber":"0","magazineBlocksPostExcerpt":"Outstanding NBFC loans against gold jewellery rose 69.3% year-on-year to Rs 3.41 lakh crore at the end of June 2026 (representative image) Loans against gold jewellery by non-banking financial companies (NBFCs) continued to expand sharply in June, growing nearly 70% year-on-year, according to Reserve Bank of India (RBI) data.Outstanding NBFC loans against gold jewellery rose [&hellip;]","magazineBlocksPostCategories":["\u0b26\u0b47\u0b36 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