3 min readMumbaiAug 8, 2026 07:43 PM IST
Credit against gold jewellery extended by non-banking financial companies (NBFCs) surged 69.3% year-on-year to Rs 3.41 lakh crore in June 2026, emerging as the fastest-growing major retail lending segment, according to data released by the Reserve Bank of India (RBI).
Gold-loan growth by NBFCs accelerated sharply from 40.6% in June 2025, even as overall credit growth by NBFCs, including housing finance companies (HFCs), rose to 14.4% in June 2026 from 11.1% a year earlier.
The surge in gold prices has prompted people to pledge gold holdings for the finance requirements.
The RBI data show that outstanding credit extended by NBFCs stood at Rs 59.31 lakh crore at the end of June 2026, compared with Rs 51.86 lakh crore in June 2025.
The figures are based on a sample covering NBFCs in the Upper and Middle Layers and HFCs, accounting for about 87% of total NBFC credit.
Almost all NBFCs, led by Muthoot Finance, in the Upper Layer category of the RBI are active in the gold loan business,
Retail lending remained the key driver of the expansion, with growth accelerating to 20.3% in June 2026 from 14.35 a year earlier.
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Outstanding retail credit increased to Rs 25.62 lakh crore from Rs 21.29 lakh crore, RBI said.
Within retail lending, loans against gold jewellery recorded the sharpest growth at 69.3%. Consumer durable loans also expanded rapidly, rising 46.8 % year-on-year, while vehicle loans grew 15.2%.
Housing loans, including lending by HFCs, grew 11.4% to Rs 8.44 lakh crore.
The acceleration in retail lending was accompanied by stronger growth in credit to agriculture and allied activities. Credit to the sector grew 17.9 per cent in June 2026, sharply up from 5.1 per cent a year earlier. Outstanding credit to agriculture and allied activities stood at Rs 79,684 crore, RBI said,
In contrast, credit growth to industry moderated.
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Industrial credit grew 6.7% year-on-year in June 2026, compared with 10.3% in June 2025.
The moderation was primarily driven by subdued growth in infrastructure, the RBI said. Infrastructure credit grew 5.1% during the period, against 9.7% a year earlier.
Within infrastructure, credit to the power sector expanded 4.9%, it said.
Credit growth in the services sector also moderated, although it remained relatively strong at 17.6% in June 2026, compared with 22.4% a year earlier.
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Commercial real estate was a notable exception, with credit rising 33.8% year-on-year to Rs 1.11 lakh crore.
Growth in credit to trade and transport operators, however, moderated to 17.1% and 9.8%, respectively.
The RBI data also showed a reversal in the “other loans” category, which grew 17.5% year-on-year in June 2026, compared with a contraction of 19.5% a year earlier.
The central bank said the sectoral credit data are provisional and based on information reported by the sampled entities on the last day of the month.
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The sample covers NBFCs in the Upper and Middle Layers and HFCs and accounts for about 87% of total NBFC credit, based on the benchmark cited in the RBI’s Report on Trend and Progress of Banking in India 2024-25.