Gold loans in India have overtaken outstanding credit card debt for the first time, underlining a sharp shift in household borrowing patterns amid elevated gold prices and tighter regulatory scrutiny on unsecured lending.
According to data shared by Zerodha Capital, outstanding gold loans have surged to around Rs 4.6 lakh crore, nearly 57% higher than credit card dues of about Rs 3 lakh crore.
Sharing a chart based on Reserve Bank of India data, Zerodha Capital said gold loan balances crossed credit card outstanding debt in mid-2025 and have continued widening the gap since then.
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“Gold loans now outpace credit cards by Rs 1.6 lakh crore,” Zerodha Capital said in a post on X.
The divergence between the two borrowing categories has accelerated significantly over the past year. While credit card outstanding has largely plateaued after years of steady expansion, gold-backed lending has witnessed rapid growth since 2024.
Data from 41 select scheduled commercial banks showed outstanding gold loans rising from below Rs 1 lakh crore in 2021 to over Rs 4.5 lakh crore in 2026. Credit card debt, meanwhile, climbed steadily from 2017 before flattening near the Rs 3 lakh crore mark.
The trend comes at a time when banks and non-banking financial companies are increasingly focusing on secured lending products after the RBI tightened norms around unsecured retail credit, including personal loans and credit cards.
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Higher gold prices have also boosted the borrowing capacity of households and small businesses by increasing the value that can be unlocked against pledged jewellery.
The latest data highlights how Indian households are increasingly leveraging gold assets for liquidity as borrowing costs remain elevated and lenders turn more cautious on unsecured consumer credit.
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