NBFCs See Jewellery-Backed Loans Surge 70 Percent

Non-banking financial companies in India have reported a 70 percent surge in jewellery-backed lending, making it a primary driver of retail credit growth. This sharp rise underscores the continued reliance of the unorganized and semi-organized sectors on gold as collateral for quick liquidity. NBFCs have aggressively expanded their gold loan portfolios, targeting segments where traditional bank credit remains difficult to access due to documentation requirements.

While consumer-facing gold lending prospers, the infrastructure finance sector is undergoing significant consolidation. A consortium including TPG, ICICI Bank, and GIC has moved to acquire Aseem Infrastructure Finance from the National Investment and Infrastructure Fund. This transaction highlights the strategic interest in high-quality infrastructure assets as institutional investors seek long-term returns in the expanding Indian infrastructure landscape.

The rise in jewellery-backed lending indicates a shift in retail credit preferences toward secured loans, particularly during periods of economic uncertainty. Simultaneously, the acquisition of Aseem Infrastructure Finance reflects a broader institutional trend of rebalancing portfolios to prioritize tangible infrastructure assets. These two developments—one targeting retail consumer liquidity and the other focusing on large-scale capital deployment—illustrate the diverse growth engines currently driving the Indian financial services landscape.