%20(3).jpg)
Gold Loans Boom in India, Become Second-Largest Retail Credit Segment
Amidst global uncertainties and market volatility, investors have invested heavily in gold ETFs as a safe haven. Investments in the January-March 2026 period reached ₹31,561 crore, a significant increase compared to the previous year. During the same period, assets under management for gold ETFs also increased to ₹1.71 lakh crore, clearly demonstrating a sharp increase in demand for gold. Read the report:
Amidst global uncertainties, investors have reposed faith in precious metals like gold as a safe haven. Investments in Gold ETFs (Gold Exchange Traded Funds) have been robust in Q1FY26. According to data provided by Amfi, Gold ETFs saw investments of ₹31,561 crore during Q1FY26, which is almost six times the investments made during the same quarter last year. During Q1FY25, investments in gold ETFs stood at ₹5,654 crore.
The robust investments helped gold ETFs' AUM increase to ₹1.71 lakh crore by March-end FY26, from ₹58,888 crore in FY25. The net investments in Gold ETFs during March FY26 stood at ₹2,266 crore, which was down from ₹5,255 crore in February FY26 and ₹24,040 crore in January FY26. Experts say that due to better returns and market volatility, gold has emerged as an important investment option for investors. Nehal Meshram, Senior Analyst at Morningstar Investments, said, "The unusual surge in investment in January was primarily driven by risk-hedging strategies, portfolio rebalancing, and a rally in gold prices. Despite slowing flows in March, investor interest remains strong."
India's gold loan portfolio has grown 3.8 times since March 2022. According to TransUnion CIBIL's Gold Loan Landscape Report, the gold loan portfolio in India has expanded rapidly, making gold loans the second-largest retail credit product in the country.
