Date:10/06/2025

Gold has always held a special place in Indian households—not just as a symbol of wealth but also as a vital financial safety net. In a remarkable trend during FY25, Indians increasingly turned to this “yellow metal” for credit access. According to a Times of India report citing RBI data, loans against gold more than doubled, registering a staggering 103% growth—from just over ₹1 lakh crore to nearly ₹2.1 lakh crore. This rise occurred even as overall bank credit growth experienced a sharp slowdown.

In this blog, we’ll dive deeper into the factors  why gold loans got doubled, making them the fastest-growing loan category in India. Discover the reasons behind this surge and how gold-backed credit is shaping the lending landscape.

Key Factors Behind the Gold Loan Boom:

1. RBI’s Reclassification of Agricultural Loans

In 2023, the Reserve Bank of India directed banks to reclassify certain agricultural loans as gold loans. This change significantly increased the reported figures, offering a statistical boost to the segment.

2. NBFC Restrictions Redirect Borrowers to Banks

With large NBFCs facing regulatory restrictions in gold lending, many borrowers moved to traditional banks and trusted gold loan providers like money2me. This shift significantly expanded the formal sector’s share in the gold-backed credit market.

3. Rising Gold Prices

As gold prices soared, borrowers received higher loan amounts for the same quantity of jewellery. This increased loan eligibility and made gold loans an attractive and convenient credit option.

Why Borrowers Prefer Gold Loans Today

The surge in gold loans is not just about market trends—it’s also about real borrower needs. Here’s why more individuals and MSMEs are opting for gold loans:

• Quick Disbursal: Instant approvals and minimal paperwork mean faster access to funds.
• Lower Interest Rates: Being secured loans, gold loans often carry lower interest rates compared to unsecured credit.
• Higher Loan Amounts: Thanks to rising gold prices, the same jewellery now unlocks more credit.
• Support for Small Businesses: MSMEs and entrepreneurs use gold loans to meet short-term working capital needs.
• Emotional Assurance: You don’t sell your gold—you just unlock its value temporarily.
• Digital Convenience: With platforms like money2me.in, customers can apply online or avail doorstep service for maximum convenience

What It Means for You

In today’s times, people need money for many reasons—business, health, education, emergencies. But not everyone can get personal or business loans from banks easily.

That’s where gold loans help. You just pledge your gold, and get the money you need—fast and stress-free.

More and more people now trust their gold, not credit cards or bank approvals, to meet their needs. And trusted companies like money2me make this process easy and safe for everyone.

Your gold is not just for wearing on special days. It can help in tough times, without selling it.

With gold loans from money2me, you can get quick money whenever you need it—for your family, farm, shop, or any need.

Visit money2me.in or walk into your nearest branch.
Let your gold support your dreams.