After all, why are people mortgaging their house’s gold? There is some trend or special benefit, RBI report told the reason behind

Gold Loan News: There has been a slight decline in the price of gold for the last few days. According to media reports, there is a continuous increase in the number of people taking gold loans in the country. The Financial Stability Report (FSR) released by the Reserve Bank of India (RBI) has revealed that now people are taking gold loans in large numbers. According to RBI, gold loan has now become the fastest growing retail loan in the country. But, what remains to be seen is why people are taking gold loans in such large numbers. Is there any benefit behind this or is it just a trend?

Bank reports say that since March 2024, there has been an increase of about 42.4 percent in gold loans. The reason behind this has been revealed by RBI. Let us know about it.

RBI said this

The report released by RBI said that gold loans are now becoming the largest part of non-housing retail borrowings. According to reports, both banks and NBFCs have rapidly expanded their gold loan portfolio in FY26. Not only this, RBI also warned that if there is a big fall in the prices of gold in future, then the pressure on the lenders may increase. The demand for gold loan is not only increasing in big cities and metro cities, but its demand is also increasing in many small cities.

Why is the demand for gold loan increasing?

According to reports, many reasons are believed to be behind the increase in demand for gold loans. The reason behind the increase in demand for gold loan is the rise in prices along with the fact that nowadays less documentation is required to take a gold loan, due to which people are taking more gold loans. Not only this, the process of gold loan has become easy in today’s time, due to which one can get the loan quickly. In times of emergency, people are taking help of gold loan to get financial help from somewhere. However, in some cases risk can also be seen in this.

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