India's gold loan market is experiencing explosive growth, attracting major global investors. Indian households hold approximately 34,000 tons of gold valued at roughly five trillion dollars, with most remaining untapped. The gold loan segment has more than doubled in just one year, reaching 4.3 trillion rupees and becoming India's largest retail lending category after mortgages and auto loans. Bain Capital recently secured Reserve Bank of India approval to acquire up to 41.7 percent of Manappuram Finance, India's second-largest gold loan provider, signaling strong international confidence. Rising bullion prices have made gold loans increasingly attractive as borrowers can unlock greater value from the same amount of metal. Tighter banking regulations on unsecured lending and growing household financial stress are further driving demand.
