Gold loans surge five time in two years

Bank loans against jewellery jumped nearly fivefold to ₹4.6 lakh crore at end-March from about ₹93,301 crore two years earlier, marking a 123% year-on-year rise — the fastest growth among lending sectors, RBI data show. The sharp increase in gold-backed lending signals heavy household use of gold as collateral and a shift in secured consumer credit, with potential implications for bullion circulation and banks’ secured loan books. Other credit trends: priority housing loans rose 39.8% YoY to ₹10.44 lakh crore, personal loans grew 16.2%, while consumer-durable and export credit contracted. The data point to divergent demand patterns across sectors and may influence domestic bank lending strategies and liquidity dynamics, with indirect implications for the gold market and credit risk monitoring.