Tata Capital is set to enter India’s fast-growing gold loan market by acquiring an 88.6% stake in Kerala-based non-banking finance company (NBFC) Yogloans. The acquisition marks a significant step in Tata Capital’s strategy to diversify its lending portfolio and strengthen its presence in retail finance.
The transaction, subject to regulatory approvals, will give Tata Capital access to Yogloans’ established gold loan business, branch network and customer base. Founded in 2008, Yogloans specialises in loans against gold jewellery and has built a strong presence, particularly in southern India.
Gold loans have emerged as one of the fastest-growing segments in India’s lending market, driven by rising demand for quick, secured credit from households and small businesses. By acquiring Yogloans instead of building a business from scratch, Tata Capital aims to accelerate its expansion in this high-growth segment.
Industry experts say the deal will enable Tata Capital to leverage its financial strength and digital capabilities while benefiting from Yogloans’ expertise in gold-backed lending. The acquisition is also expected to enhance Tata Capital’s product offerings and strengthen its competitive position against established players in the sector.
The move comes at a time when demand for secured loans continues to rise amid favourable gold prices and increasing financial inclusion. Gold loans remain popular because they offer quick disbursal, minimal documentation and relatively lower borrowing costs.
For Yogloans, becoming part of the Tata Group is expected to provide access to capital, technology and a wider customer network, supporting its future growth.