Loan News · 27 October 2026 · 3 min read
In short: Gold loans have grown very fast in India. Bank gold loans rose 83% in a year to ₹5.6 lakh crore in August 2026, and NBFC gold loans rose 69% to ₹3.6 lakh crore (RBI data, via Reuters). Now some lenders are seeing more late payments. At Shriram Finance, bad gold loans (Stage 3) rose to 3.12% in July to September, from 2.28% a year earlier. This follows our earlier explainer on the gold loan boom.
The numbers lenders reported
| Lender | What they reported (Q2 FY27) |
|---|---|
| Shriram Finance | Gold loan book ₹8,974 crore; gross Stage 3 gold loans 3.12% (2.57% in Q1, 2.28% a year ago) |
| Bajaj Finance | Gold loan book about ₹24,000 crore; Stage 2 and 3 loans up 15 basis points in the quarter, mostly from short-term gold loans it has stopped offering |
| Piramal Finance | CEO Jairam Sridharan said 15% to 23% of industry gold loan disbursals in the past year went to people already 90+ days late on another loan |
Stage 2 means a loan is more than 30 days overdue. Stage 3 generally means more than 90 days overdue, which is treated as a bad loan. Sridharan also said that having a gold loan is not by itself a sign of higher risk, but the data is “worth noting and tracking”, Reuters reported.
What it means for you
- Know your repayment type. Some gold loans are EMIs. Others are “bullet” loans where you pay interest and principal at the end. Bullet loans feel light at first but need a big payment later.
- If you fall behind, the lender can auction your gold after giving notice. Talk to the lender early if you expect trouble; renewing or part-paying is cheaper than losing jewellery.
- Do not take a gold loan to pay off another overdue loan without a plan. It can push you deeper into debt.
- Expect stricter checks. Lenders worried about stress may look harder at your credit report, even for gold-backed loans.
- Compare costs on our loans page and check your monthly outgo with the EMI calculator.
What to watch next
More NBFC and bank results in the coming weeks will show whether gold loan late payments keep rising. Also watch for any RBI comments on gold loan lending, and the gold price, since a fall in gold prices reduces the safety cushion on these loans.
Sources
- Deccan Chronicle: Shriram Finance reports rise in bad gold loans in Q2FY27
- Business Standard (Reuters): Bajaj Finance, Piramal Finance flag early signs of stress in gold loans
- Whalesbook: NBFC gold loan risks rise amid branch expansion
This is a news summary for education, not investment advice. Figures are as reported on or before 27 October 2026; check official sources before making decisions.