Ahmedabad: The craze for taking gold loans by customers has been increasing rapidly for the last two-three years. In addition, there has been an increase in lending with security for non-banking financial companies (NBFCs).
As gold prices have been continuously increasing in the last one year and due to sudden volatility in the last few years, companies are lending 60 percent of the value of gold. The demand for gold loans has seen a double increase compared to personal and other loans.
Due to high gold prices, the average ticket size of gold loans has doubled in the last one or two years and reached 50 to 60 thousand, said IIFL Finance MD Nirmal Jain.
He further added that as of December 31, 2025, there are consolidated loan assets under management worth ₹98,336 crore, of which the share of gold loans is more than 43,000 crore. Gujarat’s share in the total gold loan AUM is on average 18 percent i.e. 7500-8000 crores, growing 100 percent on an annual basis, he mentioned. Gujarat has an AUM share of more than 15 thousand crores in the company’s total AUM.
IIFL Finance to raise 2,000 crores through bonds
IIFL Finance Limited has launched a public issue of secured redeemable NCDs. The issue size is ₹500 crores with a green-shoe option to maintain oversubscription up to ₹1,500 crores, which will take the total issue amount to ₹2,000 crores.
The company has been continuously reducing unsecured lending for some time and is focusing more on secured lending. The share of personal loans has been reduced to almost nothing. It has a strong presence across the country and has a diverse retail portfolio. It serves the credit needs of 4.6 million customers, many of whom do not require loans. The company has a vast network of 4,761 branches spread across the country and a strong workforce of 36,786 employees.
