Muthoot Finance, India’s largest gold-loan provider, has reported a strong financial performance for the second quarter of FY26. The company recorded an 87.5% year-on-year rise in standalone profit, reaching ₹23,450 crore (approx. USD 266.8 million).
This impressive jump reflects the rising demand for gold-backed loans as gold prices continue to stay at elevated levels in the country.
Muthoot Finance’s gold-loan portfolio touched ₹1.32 trillion, marking a 47% growth compared to the same period last year.
With gold prices reaching new highs, borrowers are able to unlock more value from the same quantity of gold. This has pushed loan demand upwards, especially during a period when unsecured loans are facing tighter credit conditions.
Seeing the strong momentum, the company revised its gold-loan growth guidance from the earlier 15% to a much higher 30–35% for FY26.
The performance of Muthoot Finance shows the broader trend in India’s lending ecosystem. When unsecured loan risk rises, customers prefer safer, fast-approval loans against gold. This also helps lenders maintain lower NPAs and stronger balance sheets.
Financial experts believe that if gold prices continue their bullish trend, gold loan companies may continue reporting strong quarters ahead.
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Higher gold prices have increased the collateral value for borrowers.
With stricter norms around unsecured credit, customers are gravitating toward secured options like gold loans.
This shift is helping lenders like Muthoot Finance expand quickly while maintaining strong lending margins.
The growth trend signals how gold-backed lending continues to be a reliable financial tool during economic uncertainties.
The performance of Muthoot Finance shows the broader trend in India’s lending ecosystem. When unsecured loan risk rises, customers prefer safer, fast-approval loans against gold. This also helps lenders maintain lower NPAs and stronger balance sheets.
Financial experts believe that if gold prices continue their bullish trend, gold loan companies may continue reporting strong quarters ahead.