There has been a stormy rise in the demand for gold loans in India. Loans on gold have overtaken other personal loans, home loans, and car loans. According to the latest data from the Reserve Bank of India (RBI), a tremendous increase of 87.4% has been registered in the loan given against gold jewellery in February 2025. As of 21 February 2025, the total figure of gold loans given by banks has reached Rs 1.91 lakh crore. As of 23 February 2024 last year, this figure was Rs 1.02 lakh crore. In the year 2024, the annual growth of gold loans was only 15.2%.

The Reserve Bank of India has released these figures after collecting data from 41 banks. Since September 2024, banks' gold loans have seen a 50% increase, which is much more than the total loan growth. These figures for gold loans show that in case of immediate need of cash, people prefer to take loans by pledging gold. Due to the high prices of gold, people are also able to take more loans. The demand for gold loans has also increased due to the strict rules implemented by banks in giving unsecured loans.

Status of other loans
If we talk about other loans given by banks, the growth of personal loans was 21.7% in February 2024, which came down to 7.9% in February 2025. The growth rate of home loans also came down from 36.4% to 11.1%. Education loans have also declined and their growth also came down from 23.9% to 15.3%, while the growth of car loans fell from 17.6% to 9.6%.

Will this trend continue?

India is the second largest consumer of gold in the world and buying gold during weddings and festivals is common here. Therefore, a lot of gold is stored in Indian homes. According to experts, if there is no major change in inflation and interest rates, the demand for gold loans may continue in the future as well. It has become the safest way for people to raise cash quickly.

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