You can soon get a gold loan from Tata Capital
What's the story
Tata Capital, a leading financial services provider and part of the Tata Group, has announced its entry into the gold loan sector. The company will acquire a majority stake in Yogakshemam Loans Ltd (Yogloans), a Kerala-based non-banking financial company (NBFC). The acquisition will be through an all-cash transaction and is subject to regulatory approvals.
Deal details
Deal based on pre-money equity valuation of up to ₹318cr
The deal will see Tata Capital acquire a nearly 88.6% stake in Yogloans's issued and paid-up share capital (on a fully diluted basis). This will be done through a combination of capital infusion and purchase of shares from existing shareholders. The transaction is based on a pre-money equity valuation of up to ₹318 crore, subject to customary adjustments.
Growth strategy
Deal includes primary capital infusion of around ₹93cr
The deal also includes a primary capital infusion of around ₹93 crore to support Yogloans's future growth plans. As of March 31, 2026, Yogloans had assets under management (AUM) of ₹708 crore and served around 32,000 gold loan customers through its network of 162 branches across Kerala, Karnataka, Tamil Nadu, and Andhra Pradesh.
Strategic move
Acquisition enhances Tata Capital's retail lending portfolio
The acquisition will give Tata Capital access to an established gold loan platform, enhancing its retail lending portfolio. Rajiv Sabharwal, Managing Director and CEO of Tata Capital, said the move adds a secured lending product with significant growth potential to their portfolio. He added that it supports their strategy of building a diversified lending franchise.
Leadership continuity
Yogloans to continue under existing leadership
Post-acquisition, Yogloans will continue under the leadership of its promoter and managing director Unnikrishnan Idicharm Veetil. Tata Capital intends to consolidate Yogloans at an appropriate stage after the transaction, subject to required approvals. The move comes as India's gold loan market continues to grow, driven by rising gold prices and increasing demand for quick, collateral-backed credit.