Negative impactSector
Gold loans hit ₹22.5 lakh crore; CIBIL finds borrowers are taking bigger loans
CNBC-TV18 53 min ago·5 Nov 2026, 8:52 am
India's gold loan sector has reached a record high of ₹22.5 lakh crore, driven by a clear shift in borrower behavior. The latest data from credit information firm CIBIL indicates that customers are increasingly opting for larger loan amounts and returning for repeat financing. This trend suggests that while gold remains a preferred asset for securing credit, borrowers are utilizing it more aggressively to meet growing financial needs.
For investors, this surge in loan sizes signals a potential increase in credit risk for lenders. While higher loan volumes boost immediate revenue, larger ticket sizes mean that a default by a single borrower can have a more significant financial impact. It also highlights the importance of monitoring how lenders manage their asset quality as the market matures.
Going forward, investors should watch for updates on asset quality metrics, such as non-performing assets (NPAs). It will also be important to see if lenders are tightening their underwriting standards to mitigate the risks associated with these larger, repeat loans.
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