Loan News · 31 October 2026 · 3 min read
In short: New Reserve Bank of India (RBI) data, released on Friday evening and reported through Saturday, shows bank loans against fixed deposits (FDs) rose 53.3% in a year to ₹2.17 lakh crore by 30 September 2026. Loans against gold jewellery jumped 83% to ₹5.6 lakh crore. Overall bank credit grew 19.4%, and the average interest rate on fresh loans dipped to 8.51%.
The key numbers (as of 30 September 2026)
| Type of lending | Outstanding | Growth in a year |
|---|---|---|
| All bank credit | ₹229.95 lakh crore | 19.4% (11.4% a year ago) |
| Loans against FDs (incl. FCNR(B) deposits) | ₹2.17 lakh crore | 53.3% (14.3% a year ago) |
| Personal loans (all retail) | ₹74.27 lakh crore | 17.3% |
| Gold jewellery loans | ₹5.6 lakh crore | 83% |
| Loans to NBFCs | ₹22.53 lakh crore | 41.8% |
| Average rate on fresh rupee loans | 8.51% | 8.61% in August |
Why loans against FDs are surging
Much of the jump comes from FCNR(B) deposits. These are foreign-currency deposits, mostly from NRIs. Under a special swap window opened on 8 June, banks had raised about $133 billion through such deposits by 31 August, and some depositors borrowed against them. So this is not mainly ordinary savers breaking into their FDs.
Gold loans, on the other hand, are being driven by high gold prices: the same jewellery now fetches a bigger loan. We covered rising stress in this area in gold loan bad loans rise.
What it means for you
- Need short-term cash and have an FD? A loan against it is usually cheaper than a personal loan or credit card debt. Banks often charge about 0.5–2 percentage points above your FD rate, and your FD keeps earning interest.
- Taking a gold loan? Gold prices have fallen sharply in the last few days. If prices drop further, the lender can ask you to repay part of the loan or add more gold. Borrow well below the maximum.
- Fresh loan rates are easing slightly. If you are shopping for a home or car loan, compare offers on our loans page and check the monthly payment with the EMI calculator.
- Private banks charge more: their average rate on fresh loans was 9.19% in September, against 7.93% at public sector banks.
Sources
- Business Standard: Bank advances against deposits surge 53% on FCNR(B) leverage
- Free Press Journal: Bank loans against fixed deposits surge 53.3% to ₹2.17 trillion
- ANI: Bank credit growth accelerates across services, industry and agriculture
This is a news summary for education, not investment advice. Figures are as reported on or before 31 October 2026; check official sources before making decisions.