Kerala bank gold loans reach record ₹1.48 lakh crore

Gold loans issued by banks in Kerala have reached a record high of ₹1,47,948.91 crore as of June 30, 2026. Data from the State Level Bankers’ Committee (SLBC) indicates that total gold loans provided by both nationalized and private banks in the state increased by 44.1% over a two-year period, rising from ₹1,02,654.60 crore in June 2024.

For the first time, agri-gold loans issued by banks exceeded the ₹1-lakh crore threshold, reaching ₹1,06,726.41 crore by the end of June 2026. The non-agricultural segment also saw significant growth, with outstanding loans rising nearly 63% to ₹41,222.55 crore.

Industry experts suggest this surge reflects a structural shift where gold loans are increasingly viewed as a mainstream credit product rather than a last-resort measure. The rise is attributed to rising living costs and higher gold prices, which allow borrowers to secure larger loan amounts against the same quantity of jewelry.