I am not sure if this is a India specific issue.
I understand that gold is a basically non-value add asset and real estate business generates jobs and people do need houses to live in.
My doubt is whether Govt./Reserve Bank of India gives any explicit incentives to banks to offer cheaper home loans ?
If it were just demand/supply, I feel that gold loans should have been cheaper as people (atleast Indian people) still love gold due to inflation and other macroeconomic crises that happen from time to time.
This is just my hunch, it would be great if I can find some infographics/data on this issue...