Tata Capital forays into gold loans

Tata Capital Ltd, the flagship financial services company of the Tata Group, will acquire majority stake in non-banking financial company Yogakshemam Loans Ltd. The acquisition marks Tata Capital's entry into the lucrative gold loan business.

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Tata Capital will acquire a majority stake in Yogloans through a combination of capital infusion and share purchase from existing shareholders. The transaction is based on a pre-money equity valuation of Yogloans not exceeding Rs 318 crore. It also includes a primary capital infusion of approximately Rs 93 crore to support the company’s growth plans.

Upon completion of the transaction, Tata Capital will hold approximately 88.6 per cent of the issued and paid-up share capital (on a fully diluted basis) of Yogloans.

Tata Capital said it intends to consolidate at an appropriate stage, subject to requisite approvals.

“This transaction marks Tata Capital’s entry into the gold loan business, adding a secured lending product with significant growth potential to our retail lending portfolio and supporting our strategy of building a diversified lending franchise,” Rajiv Sabharwal, Managing Director & CEO, Tata Capital, said in a statement.

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 31 March 2026.

The company serves around 32,000 gold loan customers. The business is led by industry veteran Mr. Unnikrishnan Idicharm Veetil, who will continue to lead post the acquisition.

“Over the years, we have built our gold loan business by focusing on customer experience, maintaining prudent lending practices and strengthening our presence across the markets we serve,” Unnikrishnan, Promoter & Managing Director, Yogloans, said.

Tata Capital’s brand, financial strength and technology capabilities will help accelerate our growth. We look forward to working closely with the Tata Capital team as we build on the foundation created over the years and take the business to the next phase, he added.

 

 

 

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