Positive impactSector
Gold loans near 10% of leading NBFCs’ loan books as lenders pivot to secured credit
Economic Times 7 hrs ago·22 Oct 2026, 1:01 am
Gold loans are becoming a major part of the business for many leading non-banking financial companies (NBFCs). Recent data shows that this type of lending now makes up nearly 10% of the combined loan books of four major lenders, a significant jump from just over 6% a year ago. This growth is part of a broader trend where NBFCs are focusing more on secured credit, such as gold and vehicle loans, rather than unsecured personal loans.
This shift matters to investors because it changes the risk profile of these companies. Gold loans are generally considered safer since they are backed by physical assets, which can be sold to recover funds if borrowers default. As NBFCs expand in this area, they are likely to see more stable earnings. However, investors should keep an eye on how these companies manage the rising volume of gold loans and the associated risks.
Moving forward, the key for investors will be to watch how the competition in this space evolves. With banks also increasing their gold loan portfolios, the market is becoming more crowded. Investors should monitor whether the growth in gold loans is sustainable and how it impacts the overall profitability of these financial institutions.
Key takeaways
- Category: Sector.
- AI reads the tone as positive (potentially bullish) for the stock.
Why it matters
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