The scale of gold loans in India surpasses credit card debt for the first time, marking a significant shift in household borrowing patterns.

(1) The scale of gold loans in India has surpassed outstanding credit card debt for the first time. This milestone change highlights a significant shift in Indian household borrowing patterns as gold prices continue to rise and regulators tighten scrutiny on unsecured loans. (2) According to data shared by Zerodha Capital, India's outstanding gold loan balance has surged to approximately 4.6 trillion rupees, nearly 57% higher than outstanding credit card debt (around 3 trillion rupees). (3) Data indicates that, as of mid-2025, the gold loan balance officially overtook outstanding credit card debt, and the gap between the two has continued to widen since then. Currently, gold loans lead credit card debt by 1.6 trillion rupees. (4) Over the past year, the divergence between these two types of borrowing has accelerated significantly: credit card debt has plateaued, while gold-backed loans have experienced rapid growth since 2024. The gold loan balance climbed from less than 1 trillion rupees in 2021 to over 4.5 trillion rupees by 2026. (5) This trend comes as the Reserve Bank of India tightens regulatory standards on unsecured retail lending such as personal loans and credit cards, prompting banks and non-bank financial institutions to increasingly focus on secured loan products. (6) At the same time, rising gold prices have boosted the borrowing capacity of households and small businesses—since pledging gold jewelry can unlock higher financing amounts. (7) The latest data shows that, amid persistently high borrowing costs and lenders growing more cautious toward unsecured consumer credit, Indian households are increasingly leveraging gold assets to access liquidity.