NBFC Gold Loans Explode as RBI Data Shows Near 70% Surge, Leading Fastest Lending Growth Across Segments
The Non-Banking Financial Company (NBFC) lending segment has seen a dramatic boom in May, driven by an astonishing surge in loans against gold jewellery. According to data released by the Reserve Bank of India (RBI), outstanding credit extended by NBFCs against gold registered a phenomenal near 70 per cent growth year-on-year.This massive increase makes the gold loan segment the fastest growing lending area among all monitored categories. Outstanding loans against gold jewellery reached Rs 3.29 lakh crore at the close of May 2026, a sharp jump from the Rs 1.94 lakh crore recorded one year prior. The figures highlight strong consumer demand and financial activity within this crucial market segment.
Booming Retail Credit Segment
The retail loan portfolio also demonstrated robust expansion during the month. Overall retail credit witnessed significant growth, rising 19.5 per cent compared to 14.9 per cent in the same period last year. Housing loans, vehicle loans, and lending against gold jewellery were among the primary drivers fueling this substantial rise within the consumer financing space.Commercial Lending Hits Second-Highest Growth
Beyond personal finance, NBFCs continued strong support for businesses. Credit extended to the commercial sector recorded the second-highest growth across all segments. This crucial corporate lending rose 40.2 per cent year-on-year. The outstanding credit in this area stood at Rs 1.19 lakh crore in May, up from Rs 85,317 crore a year earlier.Sectoral Dynamics: Agriculture and Industry Performance
Credit flow into the agricultural sector and allied activities remained resiliently strong. This segment recorded a healthy 17.9 per cent growth in May 2026. This represents a marked improvement from the 5.0 per cent growth registered by agriculture during that month last year.The industrial sector, however, saw some moderation in lending activity. Loan growth to industry eased to 7.3 per cent in May. This slowdown is attributed primarily to slower growth observed specifically in infrastructure lending within this domain.
Services Sector Growth Moderates
Credit extended to the services sector also registered a softening trend compared to previous periods. The services sector saw its growth ease to 16.7 per cent year-on-year. This contrasts with the faster expansion rate of 23.9 per cent recorded for the services sector in May 2025.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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