Retail gold loans are shining bright in banks’ overall loan portfolio on the back of rise in gold prices, demand shift from unsecured loans and borrower-friendly regulations.

This is underscored by the fact that their net portfolio growth in the loans against gold jewellery (LAGJ) segment (personal loans category) topped the ₹1 lakh crore mark for the first time in any half of a financial year in H1FY2026.

Banks’ LAGJ portfolio jumped about 51 per cent (or by ₹1,07,307 crore) in the first half (April-September) of FY2026. This portfolio was up about 43 per cent (or by ₹44,519 crore) in H1 of FY2025.

Their LAGJ portfolio had expanded by ₹61,654 crore in the second half (H2: October-March) of FY2025.

Given the uptrend in gold prices, borrowers are able to get more loan for a given quan

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