Indian borrowers shift toward gold loans in 2026 as quick, collateral-backed credit gains appeal

The article examines a structural shift in 2026 as Indian borrowers increasingly turn to gold loans, drawn by lower credit hurdles, faster disbursals and the ability to keep ownership of pledged assets. It argues that household gold is moving from a “locker asset” to an active form of collateral. Tighter oversight of dynamic loan-to-value (LTV) management and reviews of borrowers’ total debt exposure are also pushing borrowers to maintain cleaner repayment records. High gold prices are boosting collateral values, while pledging rather than selling is indirectly easing supply pressure in the spot gold market.