Gold rate cross ₹1.4 Lakh mark: How are gold loan providers benefiting from this?

Synopsis: In December 2025 24k Gold value hit an all time high of Rs 1.44 Lakh for 10g. Several NBFCs that provide Gold loans have been expanding and some of them are even expecting a surge in demand for gold loans like never before. Along with rating agencies expecting a 30-35 percent growth in the AUM in FY26.

Gold prices have steadily risen in recent months, driven by global economic uncertainties, inflation, currency fluctuations, central bank policies, geopolitical tensions, and rising demand for jewellery and investments. Today, 24k gold has been trading at Rs 1.41 lakh for 10g, this is still around the all time high of Rs 1.44 Lakh which was hit in December 2025.

The Booming Sector of Gold Loans

India’s gold loan sector is booming, with non-bank lenders planning nearly 3,000 new branches in the next 12 months. The market that was traditionally dominated by state-owned banks, grew 36 percent year-on-year to Rs 14.5 lakh crore by September 2025. Rating agency ICRA projects the organised gold loan market to reach Rs 15 lakh crore in FY26, a year earlier than expected.

NBFC gold loan assets under management (AUM) are expected to expand 30- 35 percent in FY26. This growth is driven by elevated gold prices and slower growth in unsecured loan products.

Expert Analysis

The MD of Muthoot Finance said to ET that the demand for gold loans is rising like never before, with many people failing to get unsecured micro loans looking up to gold loan lenders to meet their fund requirement. High gold prices have made loans against jewellery attractive for farmers, small traders, and salaried customers. These loans are used for working capital, home improvement, weddings, or short-term liquidity. Leading lenders like Muthoot Finance, Bajaj Finance, IIFL Finance, and L&T Finance are aggressively expanding. Collectively, they plan to open 1,800 new branches.

Today, nearly 70 percent of gold loans are available for agriculture and small businesses, while the remaining share is utilised for home improvement, weddings, and other planned or emergency financial needs. This indicates that gold loans are increasingly seen as a mature and responsible credit product. With demand rising, NBFCs are focusing on branch expansion to capture market share. The growth of this sector reflects both the popularity of secured credit and rising gold prices. 

The combination of high gold prices and increasing demand for secured credit is fueling the gold loan boom in India. Analysts believe that gold loans will continue to grow rapidly in the coming years. With NBFCs expanding aggressively, access to gold loans is becoming easier across the country. The sector is poised to remain a key part of India’s lending landscape. Following are key NBFC player’s  that have the most exposure to benefit from the increasing gold prices and gold loan rates 

Muthoot Finance

Muthoot Finance is a leading non-banking financial company (NBFC) engaged in the business of providing gold loans to individuals and small businesses. Incorporated in 1939 and headquartered in Kochi, Kerala, the company has a strong presence across Southern India, with an extensive branch network catering to short-term credit needs backed by gold collateral.

In the latest quarter Muthoot saw a YoY revenue growth of 47 percent, going from Rs 4,929 Cr in Q2FY25 to Rs 7,283 Cr in Q2FY26, while the QoQ went up by 13 percent from Rs 6,450 Cr in Q1FY26.

The YoY Net Profits growth is at 82 percent, going from Rs 1321 Cr in Q2FY25 to Rs 2412 Cr in Q2FY26, while the QoQ growth stood at 22 percent from Rs 1974 Cr in Q1FY26.

Manappuram Finance

Manappuram Finance is a leading Non-Banking Financial Company (NBFC) offering a wide range of fund-based and fee-based financial services, including gold loans, microfinance, vehicle finance, housing finance, and money exchange services. Incorporated in 1949 and headquartered in Valapad, Thrissur district, Kerala, the company has built a strong pan-India presence, with gold loans remaining its core and largest business segment. 

In the latest quarter the company saw a YoY revenue fall by 13 percent, going from Rs 2,633 Cr in Q2FY25 to Rs 2,283 Cr in Q2FY26, while the QoQ went up by almost 1 percent from Rs 2,262 Cr in Q1FY26.

The YoY Net Profits went down by 62 percent, going from Rs 572 Cr in Q2FY25 to Rs 217 Cr in Q2FY26, while the QoQ growth stood at 64 percent from Rs 132 Cr in Q1FY26.

IIFL Finance 

IIFL Finance Ltd is a diversified Non-Banking Financial Company (NBFC) in India, engaged in the business of loans and mortgages through its subsidiaries. Incorporated in 1995 and headquartered in Mumbai, Maharashtra, the company offers a wide spectrum of financial products, including home loans, gold loans, business loans, microfinance, capital market finance, and developer & construction finance, catering to retail and corporate customers across India.

In the latest quarter IIFL Finance saw a YoY revenue growth of 29 percent, going from Rs 2,556 Cr in Q2FY25 to Rs 3,305 Cr in Q2FY26, while the QoQ went up by 12 percent from Rs 2,953 Cr in Q1FY26.

The company made a loss of Rs 93 Cr in Q2FY25 but as of Q2FY26 the company has made a profit of Rs 418 Cr., and also witnessed a QoQ growth of 52 percent from Rs 274 Cr in Q1FY26.

Capri Global Capital Ltd

Capri Global Capital Ltd is a diversified Non-Banking Financial Company (NBFC) with operations spanning MSME lending, affordable housing finance, construction finance, and car loan distribution. Incorporated in 2011 and headquartered in Mumbai, Maharashtra, the company expanded its lending portfolio by entering the gold loan segment in August 2022, strengthening its presence in secured retail lending.

In the latest quarter Capri Global saw a YoY revenue growth of 49 percent, going from Rs 752 Cr in Q2FY25 to Rs 1,121 Cr in Q2FY26, while the QoQ went up by 11 percent from Rs 1,004 Cr in Q1FY26.

The YoY Net Profits growth is at 143 percent, going from Rs 97 Cr in Q2FY25 to Rs 236 Cr in Q2FY26, while the QoQ growth stood at 34 percent from Rs 175 Cr in Q1FY26.

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