Gold loan securitisation volumes rose around 1.5 times year-on-year in the first half of FY27, leading growth across asset classes as India’s overall securitisation market recorded its highest-ever half-yearly volume of ₹1.47 lakh crore, according to rating agency ICRA.
Overall securitisation volumes increased around 42% year-on-year in April-September 2026, ICRA said in a release on October 12. Activity picked up in the second quarter, when volumes reached ₹86,000 crore, supported by gold loans, a recovery in vehicle loan securitisation and continued traction in MSME and business loans.
Sachin Joglekar, Vice President and Co-Group Head, Structured Finance Ratings, ICRA, said gold loans continued to lead growth in securitisation volumes during H1 FY27. Vehicle loans, MSME/business loans and mortgage loans also maintained a steady pace of growth, he said.
ICRA expects securitisation volumes to reach at least ₹2.6 lakh crore to ₹2.7 lakh crore in FY27, which would mark an all-time high.
Vehicle loans account for one-third of H1 volumes
Vehicle loans accounted for around one-third of total securitisation volumes in H1 FY27 (first half of FY27), compared with 25% in the first quarter. ICRA attributed the increase to some lenders re-entering the market or increasing their sell-down volumes in the second quarter.
Mortgage loans, small business loans and micro loans were the other key asset classes, each accounting for a share ranging between 12% and 15% of overall H1 volumes.
The market remained evenly split between Pass-Through Certificates (PTCs) and the Direct Assignment (DA) route, in line with the trend in the previous quarter.
Why securitisation matters for lenders
Securitisation allows lenders to sell pools of loan receivables to investors, providing funding against the underlying loans’ future repayments. It is one of the funding channels used by non-banking financial companies (NBFCs).
ICRA said NBFCs’ continued reliance on securitisation to meet their funding requirements supported the expansion in volumes during the first half of FY27.
The growth in gold loan securitisation indicates an increase in the volume of gold-backed loans being securitised. It should not, however, be read as a direct measure of growth in total gold loans outstanding, fresh disbursements or the number of borrowers.
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