• Gold loan is no longer a ‘last resort’


• So ‘smart investment’


• Kotak Mahindra Bank explains customer trend

Kotak Mahindra Bank Gold Loan Report 2026: Borrowers are now making use of hassle-free, fast and low-cost gold loans to take advantage of time-critical opportunities. Kotak Mahindra Bank today said gold loans in India are no longer just a “last resort” but are emerging as a planned lending option. The bank said that the generations lying in the house Gold By taking a mortgage, people are now getting loans effortlessly, quickly and at low cost as compared to home loans or unsecured loans.

“This clearly shows a change in consumer behavior,” he said of Kotak Mahindra Bank Shripad Jadhav, Chairman and Head of Gold Loan Department said. “Gold loans are no longer just a tool to weather financial crisis. Consumers with fixed incomes and assets are also raising funds by temporarily pledging gold to take advantage of time-sensitive opportunities. It is a disciplined way to meet their short-term needs.”

Due to the huge increase in the price of gold, the value of jewelery in the home has also gone up considerably. This has made it easier for families to meet their short and medium term financial needs. Rising prices are creating more debt against gold, which is being used to pursue new opportunities. Jadhav added, “This shift reflects the preference of retail borrowers for convenient borrowing, where gold loans require minimal documentation.”

First choice and widely accepted

Kotak Mahindra Bank has pointed out that there has been an increase in the volume of gold loans, which has also led to a large increase in the range of gold loan customers. This product which was once restricted to a limited section of the society has now become ubiquitous. salaried professionals, entrepreneurs and HNIs who enjoy fast credit availability, stability, convenience and low cost of credit have increasingly turned to gold loans, who are using gold loans for business expansion, children’s education, property investment or other urgent needs.

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“Cost and time savings are the biggest advantages of gold loans,” says Jadhav. “Gold loan interest rates are generally lower than unsecured loans, approvals are very quick and repayment options are stable. Gold loans are a smart tool for planned financial needs. The process is as simple as customers pledging their gold, availing the funds, repaying the loan and returning their jewelery with dignity.”

Increase in average loan amount

Earlier the expansion of gold loans was mainly seen in the states and semi-urban markets of South India. But, now the growth of gold loans has spread across all sectors and strata. Especially in the Rs 2 to 10 lakh range, there has been a huge increase in loan amounts, with gold loans becoming an alternative to property mortgage loans or home loan top-ups in many places. Customers are preferring gold loans to get loans faster. Consumers are now preferring to ‘mortgage’ their gold jewelery instead of selling it. The main reason for this is that even when the jewelery is mortgaged with the bank, the customer continues to benefit from the rise in the market price of gold.

“Nowadays, time is of the essence,” added Jadhav. “When business families, MSMEs and HNIs have only 48 to 72 hours to seize a big opportunity, a gold loan approved within minutes is very helpful for their needs.”

Why can gold debt become a dominant asset class?

India’s domestic gold reserves are valued at over $5 trillion. A large portion of this is in the form of heirloom jewellery, lying in bank lockers. Shockingly, almost 90 percent of this gold has not yet been monetized, that is, it has not been used in financial transactions. The gold loan figure of the organized sector has already reached around Rs 15 lakh crore. These loans have overtaken property mortgage loans in terms of growth. Gold loans are now second only to home loans in the secured retail category. According to Kotak Mahindra Bank, gold debt will emerge as an independent and dominant asset class in the coming years.

“‘Mortgage jewelry instead of selling it’ has become a simple rule for educated and financially savvy families,” says Jadhav. “Gold loans are a transparent and efficient way to raise funds for opportunities without losing your long-term wealth i.e. gold.”

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