₹390 lakh crore gold! India’s household hoard is 3x Pakistan’s economy
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Indian households are estimated to hold around 28,000 tonnes of gold worth ₹380–390 lakh crore, according to a report by Motilal Oswal Financial Services (MOFSL). At the upper end of the estimate, the value of this gold hoard is around 1.1 times India’s nominal GDP of ₹357 lakh crore in FY26 and nearly three times Pakistan’s nominal GDP of ₹127 lakh crore as of June 2026.
The size of India’s households gold stock is also more than 30 times the physical gold held by the Reserve Bank of India. The RBI held 880 tonnes of physical gold as of June 2026, valued at around ₹10 lakh crore.
The large gold stock also points to a sizeable opportunity for the organised gold-loan market. MOFSL estimates that only around 8% of household gold has been monetised through organised gold loans, leaving significant room for further penetration.
Only 8% of household gold monetised
MOFSL estimates the value of household gold at ₹391.24 lakh crore. Assuming an industry-level loan-to-value ratio of 60%, the brokerage estimates the potential gold-backed lending opportunity at around ₹31 lakh crore.
Against this, outstanding gold loans stood at ₹18.6 lakh crore, implying penetration of only around 7.9%.
“Indian households hold an estimated 28k tons of gold worth INR380-390t. However, only around 8% of this stock has been monetized through the organized gold loan market,” the brokerage said, adding that this highlights the significant untapped opportunity for formal gold-backed lending.
Gold prices add to borrowing potential
The sharp rise in gold prices has increased the collateral value of gold held by households, allowing borrowers to raise larger loans against the same quantity of metal.
Gold prices have hit multiple record highs in recent months, supported by safe-haven demand, central-bank buying and persistent global economic and geopolitical uncertainty. In India, 24K gold was priced at ₹1,54,910 per 10 grams on September 1, while international spot gold hovered around $4,354 an ounce.
MOFSL said the current gold cycle is different from earlier rallies, with investment and official-sector demand playing a larger role alongside jewellery demand.
India’s appetite for gold has remained strong despite policy measures aimed at shifting household savings towards financial assets. The country has continued to import gold worth roughly ₹2–6 lakh crore annually over the past decade.
Gold loans surge nearly 4x in five years
India’s organised gold-loan market has expanded nearly fourfold over the past five years to ₹18.6 lakh crore as of March 2026, according to the report.
Gold loans have overtaken personal loans to become the second-largest retail lending category after home loans, accounting for 15.7% of consumption loans, according to CRIF data. Retail gold loans at banks have grown at a CAGR of 78% over the past three years, making them the fastest-growing retail asset class, MOFSL said.
The brokerage expects the industry’s gold-loan book to grow at a CAGR of 28% during FY26–FY28 and cross ₹30 lakh crore by March 2028. Lower penetration, increasing acceptance of gold loans and the entry of more banks and diversified NBFCs are expected to support growth in the segment.
At the same time, gold continues to account for a significant share of Indian household savings. Physical assets accounted for 64% of household savings in FY25, while savings in gold and silver ornaments rose 27% to ₹2.18 lakh crore, according to RBI data cited by MOFSL.