Gold Loans Up 70%: Is Your Gold Working for You?

Gold loans from NBFCs have jumped nearly 70% in one year. If you need quick cash, pledging your gold jewellery may be cheaper and faster than taking a personal loan — but there are risks to know first.

Here's what happened: RBI data shows NBFC gold loans grew nearly 70% year-on-year in May 2026, the fastest-growing credit segment by far.. Overall NBFC credit expanded 14.2% during the same period, with retail lending driving most of the growth.. Borrowers are increasingly choosing gold loans over personal loans due to lower interest rates and faster disbursal times..

What you should do: Compare gold loan interest rates across NBFCs like Muthoot, Manappuram, and IIFL — rates vary from 9% to 24% annually, so shop carefully.. Check the Loan-to-Value (LTV) ratio before pledging — RBI caps it at 75% of gold value, so know exactly how much cash you can get.. Set a repayment reminder the moment you take a gold loan — defaulting means the lender auctions your jewellery, often with little warning..

Gold loan interest is NOT tax-deductible unless used for business or home purchase — keep receipts proving end-use if you plan to claim any deduction.