India’s gold-loan originations jump 115% to ₹7.6 lakh crore in FY26 Q4 as banks pivot to secured credit

India’s gold-loan originations surged 115% year on year to ₹7.6 lakh crore in the final quarter of FY26, helped by a sharp rise in gold prices that lifted the value of household jewellery used as collateral. The upswing also reflects a broader shift toward secured lending after the RBI increased capital requirements for most unsecured consumer credit while exempting gold loans. Because loan sizes and asset quality are closely linked to bullion prices, a recent pullback in gold has weighed on shares of major lenders such as Muthoot Finance. Gold’s central role as collateral is reinforcing a feedback loop between prices and retail credit growth.