Paisa Vaisa with Anupam Gupta Why Gold Loans Are Booming in India | Shripad Jadhav | Paisa Vaisa
Sep 7, 2026
Shripad Jadhav, a Kotak Mahindra Bank executive focused on rural and semi-urban finance, explores India’s gold-loan boom. They discuss how household gold is unlocking fast credit for education, personal needs and MSME working capital. The conversation covers valuation, repayment options, interest rates, lender selection, price risks and the choice between borrowing against gold, taking a personal loan or selling it.
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Why Gold Loans Became Mainstream
- Gold loans grew because branch networks expanded, gold values reached useful borrowing levels, regulation improved, and stigma declined.
- Faster decisions and broader banking access turned pledging gold from a last resort into a mainstream credit option.
Gold Loans Are Becoming Routine Credit
- Rising gold-loan volumes do not necessarily signal financial distress because borrowers increasingly use them alongside existing credit.
- New-to-credit borrowers fell from about 30% in 2022 to 10%, while the average ticket rose from ₹90,000 to ₹2.6 lakh.
The Shopkeeper Who Funded Growth With Gold
- A shopkeeper bought ₹5 lakh of gold, watched it rise to ₹15 lakh, and repeatedly borrowed against it for working capital.
- The appreciating collateral reduced his borrowing cost versus personal loans and avoided extensive business paperwork.