Whereas automobile loans rose 11% on the again of upper demand for passenger and industrial automobiles following a lower in items and providers tax, shopper sturdy loans contracted, seemingly on account of festive season demand ending in October.
Over the previous yr, gold loans have been the fastest-growing portfolio, with progress doubling within the final six months on a year-on-year foundation, RBI information present. Excellent gold loans jumped from ₹898 crore in November 2023 to ₹1.59 lakh crore by November 2024, and additional to ₹3.5 lakh crore as of November 2025.
Gold costs rose almost 64% in 2025, reaching about ₹1.35 lakh per 10 grams of 24 karat gold. Manish Mayank, head, gold mortgage enterprise, at IIFL Capital highlights the change over the previous yr.
Banks Overtake NBFCs
“The sharp progress in gold loans displays a structural shift in how small entrepreneurs and households entry credit score,” stated Mayank. “Gold loans meet pressing, short-tenure working capital wants with velocity, transparency and minimal documentation. The secured nature of the product has created a win-win, decreasing threat for lenders whereas providing debtors reasonably priced, versatile credit score with out disrupting money flows.”
Non-banking finance firms (NBFCs) expanded their gold mortgage e book, with excellent loans at Rs 3 lakh crore, based on trade estimates. Banks, in the meantime, overtook NBFCs in gold mortgage market share, holding 50.35%, with the rest accounted for by finance firms, based on RBI’s newest Developments and Progress report.
Muthoot Finance, Manappuram and IIFL Finance are among the many largest gold mortgage financiers.The mixed gold loans of banks and NBFCs had a 5.8% share in complete excellent loans as of September-end, RBI’s Monetary Stability Report confirmed.
Automobile loans climbed to ₹6.8 lakh crore by finish of November, aided by the GST lower and festive affords. Different segments posting sturdy progress included private loans (12.7%), industrial actual property (12.5%) and providers (11.7%). Loans to NBFCs and trade rose 9.5% every.
Inside private loans, some sub-categories moderated as their share in excellent loans dipped. The share of dwelling loans fell from 16.66% to 16.43% year-on-year, whereas bank card excellent declined from 1.66% to 1.52%.
“The info present that consumption has eased a bit with the conclusion of the festive season by end-October and will stay the case except wage progress picks up,” ICICI Financial institution stated in a analysis report.
Loans to the housing sector rose 9.8% year-on-year to ₹31.9 lakh crore, aided by decrease dwelling mortgage charges because the starting of this yr. Loans to NBFCs at ₹17.2 lakh crore rose 9.5% year-on-year, however the progress was slower in contrast with 10.9% in October.
Sector-wise credit score information point out that financial institution credit score grew probably the most for commerce, up 14% to ₹12.3 lakh crore, supported by aid measures introduced by the federal government and RBI. The regulator allowed banks to offer moratoriums on loans to exporters till December to ease cost pressures attributable to a 50% tariff imposed by the US authorities.
