Gold Loans Double Share in India’s Securitisation Market

Crisil Ratings reported that gold loans accounted for 25% of India’s retail securitisation market in the first half of FY27, more than doubling their share from a year earlier. The increase was driven by portfolio growth among gold financiers and strong investor demand.

The overall retail securitisation market grew 42% year-on-year to a record ₹1.46 lakh crore in H1FY27, compared with ₹1.03 lakh crore in the same period the previous year. The figures exclude large transactions from two non-financial sector entities in the year-ago period, allowing for a like-to-like comparison.

Crisil attributed the rise in gold loan securitisation to strong portfolio growth among gold financiers and buoyant investor demand. Gold loans became the fastest-growing asset class in the retail securitisation market during the period.

Vehicle loans continued to be the largest asset class, accounting for 33% of overall volumes, down from 42% a year earlier. Mortgage-backed securitisation accounted for 17%, microfinance for 12%, and other categories—including business loans, personal loans, education loans and lease-backed transactions—for the remaining 14%.

The rise in gold loans has also influenced the mode through which retail loans are securitised. The share of pass-through certificates (PTCs) in overall securitisation volumes declined to 47% in H1FY27 from 68% in H1FY26. Direct assignments (DAs) accounted for the remaining 53%.

Vehicle loans continue to be securitised predominantly through the PTC route, while the rising share of gold loans, which are largely executed through DAs, has resulted in an increase in the share of DA transactions.