Rise in Personal and Gold Loans Alongside Digital Lenders’ Shift to Bond Markets in India

Indian lending trends show a rise in personal loans among affluent borrowers who prefer credit over liquidating investments, while secured lending, especially gold loans, surged 42% year-on-year in Q3 FY26 driven by rising gold prices. Concurrently, digital lending startups are diversifying funding by tapping public bond markets through non-convertible debentures, reducing reliance on traditional non-bank lenders and lowering borrowing costs amid regulatory support for retail investor participation.