Gold As Collateral: Powering India’s Next Phase Of Inclusive Credit Growth With Indel Money

Gold has always been more than a cultural symbol in India. It is a financial backbone for millions of households. With an estimated 30,000 tonnes of gold held by Indian households, valued at nearly $5 trillion, the yellow metal represents one of the largest untapped pools of collateral in the country. Today, this dormant wealth is being actively mobilized, and at the forefront of this transformation are gold loan NBFCs like Indel Money, which are redefining access to credit in India.

India’s credit ecosystem is undergoing a structural shift, and gold-backed lending is emerging as one of its fastest-growing pillars. According to RBI data, loans against gold jewellery have crossed ₹4 lakh crore as of January 2026, registering a staggering 128% year-on-year growth. Between January 2024 and January 2026, the segment expanded by over ₹3.1 lakh crore, an extraordinary 338% jump that underscores the accelerating demand for gold-backed financing. Gold loans now account for nearly 9% of incremental bank credit, a clear signal that this asset class is no longer peripheral, it is central to India’s credit growth story.

This surge is not incidental. It is powered by a confluence of factors, most notably the sharp rise in gold prices, up over 150% in the past two years. This has significantly enhanced borrowing capacity, allowing customers to unlock higher value from the same asset. As loan-to-value (LTV) ratios remain regulated by the RBI, the system ensures both scalability and prudence. But beyond macro factors, it is the execution by leading NBFCs that is driving real momentum on the ground.

Indel Money stands out as a key force shaping this evolution. By combining deep on-ground presence with operational agility and digital capabilities, the company has transformed gold loans into a seamless, reliable, and highly accessible financial product. Its ability to deliver instant liquidity, often within minutes, has made it a preferred choice for customers across income segments, geographies, and use cases.

What sets Indel Money apart is not just speed, but inclusivity. In a country where a significant portion of the population lacks formal credit histories, traditional lending models often fall short. Gold loans, however, bypass this limitation by being asset-backed rather than score-dependent. Indel Money has leveraged this inherent advantage to bring first-time borrowers, rural households, and small businesses into the formal credit ecosystem, at scale.

This is particularly critical in a market where financial inclusion remains uneven. For millions of Indians, especially in semi-urban and rural areas, access to timely and affordable credit can be the difference between economic stagnation and upward mobility. Indel Money has positioned itself as a bridge in this context, unlocking liquidity for farmers, MSMEs, traders, and households for purposes ranging from working capital and education to healthcare and asset creation.

The company’s first approach has further strengthened its market position. Flexible repayment options, transparent valuation processes, and value-added features such as no-cost pre-closure, top-up loans, and insurance benefits have made gold loans not just accessible, but also highly user-friendly. By actively working to remove the traditional stigma associated with pledging gold, Indel Money has repositioned it as a smart financial strategy rather than a last resort.

The broader data reinforces this shift. According to TransUnion CIBIL, gold loans now account for 36% of total retail loan volume and 39% of value, making them the largest segment by share. The Consumer Market Indicator (CMI) has shown sustained improvement, with the December quarter marking the third consecutive period of growth- driven largely by the surge in gold loan demand and supply. Rising ticket sizes, with average loan values increasing 1.8 times since March 2023, further highlight the growing confidence in this segment.

Indel Money has been a direct beneficiary and driver of this growth. With gold loan assets under management of ₹3,477 crore as of December 2025 and strong per-branch productivity, the company has demonstrated both scale and operational efficiency. Its performance has been validated by India Ratings and Research, which assigned it an ‘IND A-’ rating with a ‘Stable’ outlook. This reflects not just financial strength, but also disciplined risk management, robust governance, and a clear long-term strategy.

Equally significant is the company’s geographic expansion. Traditionally, gold loans have been concentrated in southern India, particularly in states like Kerala. However, the market is now witnessing a decisive shift, with northern and central states such as Uttar Pradesh, Madhya Pradesh, and Rajasthan emerging as high-growth regions. Demonstrating strong execution, Indel Money has rapidly expanded its footprint to over 375 branches, building a formidable pan-India network across Kerala, Haryana, Gujarat, Maharashtra, Karnataka, Tamil Nadu, Andhra Pradesh, Telangana, Odisha, and beyond.

This aggressive expansion is not just about scale, it is about deepening access. By strengthening last-mile connectivity and building localized lending ecosystems, Indel Money is ensuring that credit reaches underserved and previously inaccessible markets. In doing so, it is not just growing its business but also contributing meaningfully to India’s financial inclusion agenda.

Regulatory developments are also playing a supportive role in shaping the future of the sector. The RBI’s move to introduce a tiered LTV framework, allowing up to 85% for small-ticket loans while maintaining caps for larger exposures, is a pragmatic step that balances growth with stability. For borrowers, this translates into greater access to funds; for lenders like Indel Money, it creates an opportunity to expand responsibly while maintaining asset quality.

At the same time, tighter norms around gold purity, valuation, and ownership verification are expected to further formalize the sector. This will enhance transparency, build customer trust, and create a more level playing field, favoring organized, compliant players. Indel Money, with its strong focus on governance, risk management, and operational discipline, is well-positioned to benefit from this shift.

The long-term outlook for the gold loan industry remains highly compelling. According to industry estimates, the organized gold loan market is expected to reach ₹18 lakh crore by FY27, driven by rising gold prices, increasing consumption, and expanding credit demand. In this high-growth environment, the role of NBFCs will be pivotal, not just as lenders, but as enablers of economic activity.

Indel Money is already moving ahead of this curve. By integrating technology with traditional lending strengths, the company is building a scalable, future-ready model. Its focus on innovation, compliance, and customer experience positions it as a leader in the next phase of growth. Moreover, evolving partnerships between NBFCs and fintech players are expected to further enhance efficiency, reduce turnaround times, and unlock new customer segments.

Importantly, the impact of gold loans goes beyond consumption; it often fuels productive economic activity. A significant portion of these loans is deployed as working capital for small businesses, agricultural inputs, home construction, and education. In many cases, this translates into asset creation and income generation, making gold loans a critical lever for grassroots economic development.

Even in the face of global uncertainties and short-term economic pressures, the structural drivers of the gold loan market remain intact. Strong GDP growth, rising financial awareness, and increasing acceptance of formal credit are expected to sustain demand. In this context, Indel Money’s confidence in long-term sustainable growth is well-founded.

As India charts its path towards a more inclusive and resilient financial system, gold-backed lending will play an increasingly strategic role. And at the center of this transformation is Indel Money, leveraging the timeless value of gold to unlock modern financial opportunities, empower millions, and redefine the future of credit in India.