Keywords : Gold Loans, Financial Inclusion, RBI Regulations, Technological Innovations, Loan-to-Value Ratio, Market Growth.

Abstract : India`s gold loan market has experienced remarkable growth over the last decade, establishing itself as a crucial source of credit for both individuals and businesses. Accounting for approximately 10% of the overall organized lending market in India, gold loans are particularly prevalent in rural and semi-urban areas, where over 65% of the population relies on them for quick and accessible credit. This study explores the factors driving the rise of the gold loan market, including India`s cultural affinity for gold, economic uncertainties, and advancements in technology. RBI’s regulatory framework which governs loan-to-value (LTV) ratios, risk management systems, and interest rate caps to ensure market stability has been highlighted by the paper. The research also delves into challenges such as fluctuating gold prices, competition from alternative financial products, and operational risks faced by lenders. Furthermore, advancements in technology, including digital lending platforms and AI-based valuation tools, have revolutionized the industry by streamlining the loan process and enhancing efficiency. With the gold loan market projected to grow at a CAGR of 15-18% between 2024 and 2030, driven by increasing digital adoption and a growing customer base, this research offers valuable insights into market dynamics and its prospects for future growth. By addressing regulatory challenges and leveraging technology, the sector can continue to expand and contribute to India’s financial inclusion efforts.

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