Large corporate backed non-banking finance companies (NBFCs) such as Tata Capital, Aditya Birla Capital and Godrej Finance have indicated that they want a pie of India's fast growing gold loan market.
Earlier this month, Aditya Birla Capital said it is entering gold loan business, targeting to open 1,000 gold loan branches over the next three years. The NBFC has planned a phase-wise rollout of 200-300 dedicated gold loan branches by March 2027 across high-potential markets.
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Rakesh Singh, ED and CEO- NBFC, Aditya Birla Capital, says gold loans are witnessing strong structural growth in India, and the NBFC's entry into this segment is 'natural extension' of it's secured lending strategy.
Tata Capital, the financial services arm of the
Tata Group, last month announced that it will enter gold loan business by acquiring Yogakshemam Loans Limited ("Yogloans"), a gold loan focused NBFC.
Yogloans operates through a network of 162 branches across Kerala, Karnataka, Tamil Nadu, and Andhra Pradesh, with Assets Under Management (AUM) of Rs 708 crore as of March 31, 2026. The company has around 32,000 gold loan customers.
The transaction is based on a pre-money equity valuation of Yogloans not exceeding Rs 318 crore. Rajiv Sabharwal, MD & CEO of Tata Capital, says Managing Director & CEO, TCL, said gold loans is a secured lending product with 'significant growth potential'.
Godrej Capital, too, announced entry into gold loan business by acquiring gold loan business of Kanakadurga Finance. The acquisition gives Godrej Capital immediate access to an established gold loan business, with approximately Rs 280 crores in AUM, a customer base of nearly 12,000, and network of 54 branches across Andhra Pradesh, and a team of around 250 employees.
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Manish Shah, MD & CEO at Godrej Capital, said despite intensifying competition across financial services, including gold loans and wealth management, the NBFC believes India's expanding credit market offers enough room for multiple players to grow.
The company plans to rely on technology-driven underwriting and customer servicing to improve efficiency while scaling its lending business.
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