India's gold loan market is witnessing a troubling increase in delinquency rates, particularly among borrowers with larger and multiple loans. As reported by TransUnion CIBIL, borrowers with outstanding amounts exceeding ₹2.5 lakh (approximately $3,000 USD) faced a delinquency rate of 1.5% at the end of December, which is 2.2 times higher than those with lesser exposures. Notably, those with more than five loans had an even higher delinquency rate of 1.9%. The overall gold loan market reached ₹16.2 lakh crore (around $1.95 trillion USD) by December, reflecting a significant increase from 5.9% of India's retail credit portfolio in March 2022 to 11% by year-end. This surge is largely driven by small businesses and the rising prices of gold, although lenders are now adopting a more cautious approach as gold prices have corrected by 15% since reaching record highs. Lenders are now focusing on a loan-to-value ratio of 60-65%, down from a previous regulatory limit of 75%, to safeguard against potential defaults. The report emphasizes the need for lenders to assess borrowers' overall indebtedness and repayment capacity, rather than relying solely on collateral strength.