On July 13, 2026, Tata Capital, the financial services arm of the Tata Group, officially announced its entry into the high-margin gold loan sector through a definitive agreement to acquire an 88.6% controlling stake in Yogakshemam Loans Limited (Yogloans). The transaction involves a fresh share subscription of approximately $10.6 million (₹930 million), providing Tata Capital with an established operating platform boasting $84.96 million (₹708 crore) in Assets Under Management (AUM) as of March 31, 2026, and 162 regional branches primarily across the southern Indian states of Kerala, Karnataka, Tamil Nadu, and Andhra Pradesh.
Yogloans, operating under the brand name "Yogloans," manages an active base of approximately 32,000 retail gold loan accounts. This acquisition is strategically significant for Tata Capital, offering immediate opportunities for cross-selling its broader suite of unsecured, insurance, and personal capital products. Industry veteran Unnikrishnan Idicharm Veetil will retain his position as Managing Director and CEO of Yogloans to ensure continuity in operations and risk management during the transition.
This move aligns with Tata Capital's strategy to build a diversified retail lending franchise within the secured lending segment. The gold loan market in India has seen substantial growth, with India's outstanding gold loan portfolio nearly tripling from $75.6 billion (₹6.3 lakh crore) in March 2023 to $232.8 billion (₹19.4 lakh crore) by March 2026. This surge is attributed to rising gold prices—a 144% increase between March 2024 and March 2026—and a shift in consumer behavior, where gold loans are increasingly seen as a mainstream credit product for various needs, not just emergency financing. The average gold loan ticket size doubled to $2,352 (₹1.96 lakh) in FY26 from $1,176 (₹98,000) in FY23.
Regulators, including the Reserve Bank of India, have noted the gold loan segment's robust growth, with non-bank gold loans up 70% year-on-year and bank gold loans up an extraordinary 105% as of May. This growth has been further fueled by the RBI's increased risk weights on unsecured personal loans and credit cards, pushing financial institutions towards secured lending. For Yogloans, backed by the Tata Group, this acquisition is expected to lead to lower institutional funding costs, potentially allowing for more competitive interest rates for customers and strengthening its position in the secured lending sector.
