The Future of India's Gold Loan Market: Projections and Challenges

India's organised gold loan market is set to double to Rs 14.19 lakh crore by 2029 despite growth moderation from regulatory scrutiny. PwC India highlights significant growth during 2023-24 fiscal and notes the critical role of technology and fintech in boosting the sector. Challenges include stricter regulations and market impacts.

The organised gold loan market in India is projected to reach Rs 14.19 lakh crore by 2029, doubling its current size, despite anticipated growth moderation due to stricter regulations, according to a PwC India report.

In fiscal 2023-24, the market saw substantial growth, hitting Rs 7.1 lakh crore. The report, titled 'Striking gold: The rise of India’s gold loan market,' suggests a five-year CAGR of 14.85 per cent.

Increased regulatory scrutiny on loan-to-value maintenance and auction procedures is expected to challenge gold lenders, with the second-largest market player being inactive, and RBI's advisory limiting cash disbursements to Rs 20,000 potentially driving customers to the unorganised sector. The emergence of digital platforms and technology-driven solutions is anticipated to further propel the market's growth.