Vehicle loans rose 11% on higher demand for passenger and commercial vehicles following a cut in goods and services tax, while consumer durable loans eased in October due to festive season demand.
RBI data shows that over the past one year, gold loans have been the fastest growing portfolio, with growth doubling in the last six months year-on-year. Outstanding gold loans increased from ₹898 crore in November 2023 to ₹1.59 lakh crore by November 2024 and ₹3.5 lakh crore by November 2025.
In 2025, the price of gold rose by around 64%, reaching around ₹1.35 lakh per 10 grams of 24 carat gold. Manish Mayank, Head, Gold Loan Business, IIFL Capital highlights the changes in the past year.Banks outperform NBFCs
“The sharp growth in gold loans reflects the structural change in how small entrepreneurs and households access credit,” Mayank said. “Gold Loans meet immediate, short-term working capital needs with speed, transparency and minimal documentation. The secured nature of the product has created a win-win for lenders while offering affordable, flexible credit to borrowers without disrupting cash flow.”
Non-banking finance companies (NBFCs) have expanded their gold loan books, with industry estimates at Rs. 3 lakh crores of outstanding loans. Banks, meanwhile, overtook NBFCs in the gold loan market share, accounting for 50.35%, with finance companies accounting for the rest, according to RBI’s latest Trends and Progress report.
Muthoot Finance, Manappuram and IIFL Finance are among the largest gold loan financiers.
Combined gold loans of banks and NBFCs accounted for 5.8% of the total outstanding loans at the end of September, RBI’s Financial Stability Report showed.
Vehicle loans rose to ₹6.8 lakh crore by the end of November, helped by GST cuts and festive offers. Other segments showing strong growth include personal loans (12.7%), commercial real estate (12.5%) and services (11.7%). Loans to NBFCs and industries increased by 9.5%.
Within personal loans, some sub-categories saw declines as their share in outstanding loans declined. The share of home loans declined to 16.43% from 16.66% year-on-year, while credit card outstandings declined to 1.52% from 1.66%.
“The data shows that consumption eased slightly with the end of the festive season by the end of October and this may remain the case until wage growth picks up,” ICICI Bank said in a research report.
Loans to the housing sector rose 9.8% year-on-year to ₹31.9 lakh crore, helped by lower home loan rates since the beginning of this year. Loans to NBFCs rose 9.5% year-on-year to ₹17.2 lakh crore, but growth was slower than 10.9% in October.
Sector-wise credit data showed that bank credit to businesses rose the most by 14% to ₹12.3 lakh crore, supported by the relief measures announced by the government and the RBI. The regulator allowed banks to provide a moratorium on loans to exporters till December to ease repayment pressure due to the 50% tariff imposed by the US government.
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