Crisil explains why gold loans are gaining a bigger share of India’s securitisation market

Gold loans represented a quarter of India’s retail securitisation market in the very first half of FY27, more than doubling their share from a year previously, as portfolio development amongst gold investors and financier need supported issuances, according to Crisil Ratings.

Gold loans’ share of total retail securitisation volumes increased to 25% in April-September 2026 from 11% in the matching duration last financial. The boost came as the general retail securitisation market grew 42% year-on-year to a record 1.46 lakh crore in the very first half of FY27, compared to 1.03 lakh crore a year previously.The figures leave out big deals stemmed by 2 non-financial sector entities in the year-ago duration, permitting a like-to-like contrast, Crisil stated in its October 8 release.Crisil associated the increase in gold loan securitisation to strong portfolio development amongst gold investors and resilient financier need. Gold loans became the fastest-growing possession class in the retail securitisation market throughout the duration.Lorry loans continued to be the biggest property class, representing 33% of total volumes, below 42% a year previously. Mortgage-backed securitisation represented 17% of volumes, microfinance for 12%, and other classifications– consisting of company loans, individual loans, education loans and lease-backed deals– for the staying 14%.How gold loans are altering the securitisation mixThe increase in gold loans has actually likewise affected the mode through which retail loans are securitised, Crisil stated.The share of pass-through certificates (PTCs) in general securitisation volumes decreased to 47% in H1FY27 from 68% in H1FY26. Direct projects (DAs) represented the staying 53%.

While car loans continue to be securitised mainly through the PTC path, the increasing share of gold loans, which are mostly carried out through DAs, has actually led to a boost in the share of DA deals.

DEEPANSHU SINGLA, DIRECTOR AT CRISIL RATINGS

Under a direct task, a lending institution straight moves a swimming pool of loans to a purchaser. Under the pass-through certificate path, financiers get money streams produced by an underlying swimming pool of possessions through the securities provided versus it.Car loan securitisation volumes grew around 13% year-on-year, following a healing in the 2nd quarter after fairly suppressed activity in the very first quarter. Mortgage-backed securitisation volumes increased 15%, while the combined service loan, individual loan and microfinance sectors signed up development of 30%, according to Crisil.The 2nd quarter represented around 60% of first-half retail securitisation volumes. Issuances went beyond 86,000 crore in the quarter, compared to 54,000 crore in the matching duration last financial.Banks stay the greatest financiersChecking account for almost 90% of financial investments in securitised properties throughout H1FY27, while foreign banks increased their share to almost 20%, Crisil stated.Foreign banks’ involvement was driven by concern sector loaning (PSL) requirements and appealing risk-adjusted returns, especially in swimming pools backed by non-priority sector loans. Non-banking monetary business (NBFCs) likewise increased their involvement as financiers.Payal Anand, Associate Director, Crisil Ratings, stated the involvement of foreign banks and other non-conventional financiers showed the advancement of the securitisation market, with yields and access to varied retail loan portfolios supporting financial investment choices.NBFCs, consisting of real estate financing business however omitting government-owned NBFCs, represented around 95% of retail securitisation issuances throughout the very first half.