Gold loan stress doubles in 5 months in August: Report

Mumbai: Stress in the gold loan outstanding for financiers doubled to 0.3 per cent in August from the March levels this year, a credit information company said on Thursday.

In the report comes amid voices of concern on gold loan portfolios expressed by some lenders lately, Transunion Cibil said the assets overdue for over 90 days have doubled to 0.30 per cent in August when compared with March this year.

Over the past few years, financiers have shown a very high preference for extending gold loans amid the growth in prices of the precious metal.

The Cibil report said the gold assets for financiers have trebled to Rs 22.5 lakh crore in the three years to August 2026 and added that 5.5 crore people, or one in every five credit active person, is paying a gold loan.

The report said there have been signs of moderation lately, with the number of loans disbursed declining 15 per cent on-year to 3.7 crore.

However, the sanction amounts were 12 per cent higher at Rs 8.2 lakh crore, indicating that the ticket sizes are going up.

It said the sanctioned amount of origination for loans above Rs 2.5 lakh grew 19 per cent in the June quarter.

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The Hans India