MUMBAI — India's leading gold loan companies have accumulated a combined 334 tonnes of gold bullion by FY26, a record stockpile that exceeds the official gold reserves held by nations including the United Kingdom and Brazil.
The three dominant players—Muthoot Finance, Manappuram Finance, and IIFL Finance—have significantly expanded their precious metal inventories as demand for gold-backed credit surges across the country. IIFL Finance recorded a sharp uptick in its gold holdings following the resolution of earlier regulatory challenges that had constrained its operations.
Manappuram Finance has similarly scaled up its gold financing business, capitalising on robust consumer demand for quick, collateral-based loans in both urban and rural markets.
The expansion reflects India's enduring cultural affinity for gold and the growing preference for asset-backed lending among households seeking liquidity without divesting their holdings. Gold loans have emerged as a critical financial instrument, particularly in states like Bihar where agricultural communities often pledge family jewellery during lean seasons or for working capital needs.
This institutional accumulation of bullion also positions these non-banking finance companies as significant stakeholders in India's broader gold ecosystem, which imports over 800 tonnes annually to meet domestic consumption and investment demand.