Repeat gold borrowing rises among low-risk customers, repayment stress persists: CIBIL

MUMBAI More than half of low-risk gold loan borrowers took another gold loan within 12 months, even as certain borrower segments continued to show signs of repayment stress, according to data released by TransUnion CIBIL. Among borrowers with CIBIL Scores of 731 or above who availed gold loans between July 2023 and June 2025, 57% of those borrowing ₹2.5 lakh or less took another gold loan within a year. The proportion stood at 54% among borrowers with loans exceeding ₹2.5 lakh.

Repeat borrowing included renewals and top-ups. “Lenders needed to assess borrowers’ overall financial obligations alongside the value of pledged gold,” said Bhavesh Jain, Managing Director and CEO, TransUnion CIBIL. He said repayment histories, repeat borrowing and changes in credit exposure across products were critical to responsible lending and portfolio management.

The analysis covered borrowers with clean recent repayment records and no active liquidity-oriented credit products in the preceding six months. Signs of stress, however, remain.