Tata Capital enters gold loan business; to acquire 88.6% stake in Yogloans
New Delhi, July 13
Tata Capital will enter the gold loan business through the acquisition of an 88.6 per cent stake in Yogakshemam Loans Ltd, marking the Tata Group financial services company's entry into a secured lending segment with significant growth potential, according to a stock exchange filing.
The Board of Tata Capital approved the execution of a Securities Subscription and Purchase Agreement (SSPA) under which the company will acquire the majority stake in Yogloans through a combination of purchasing shares from existing shareholders and subscribing to new equity shares. The transaction is subject to customary conditions, including approval from the Reserve Bank of India.
Explaining the rationale for the acquisition, Tata Capital said, "The acquisition is aligned with the Company's strategy of expanding and diversifying its retail lending portfolio in India and provides access to an established gold loan platform with an existing branch network, customer franchise and experienced management team."
According to the filing, Tata Capital will inject approximately Rs 93 crore into Yogloans through a subscription to new equity shares, while the acquisition is based on a pre-money equity valuation of the target of not more than Rs 318 crore. Upon completion, Yogloans will become a subsidiary of Tata Capital.
Yogloans is an RBI-registered non-banking financial company focused primarily on gold loans. As of March 31, 2026, it had assets under management (AUM) of around Rs 708 crore and operated a network of 162 branches across Kerala, Karnataka, Tamil Nadu and Andhra Pradesh, serving around 32,000 gold loan customers.
Commenting on the acquisition, Tata Capital Managing Director and CEO Rajiv Sabharwal said, "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."
He added, "We believe the combination of Yogloans' market expertise with Tata Capital's trusted brand, capital strength, technology and risk management capabilities will accelerate growth and create an enhanced experience for customers."
The company said the proposed acquisition is expected to be completed within eight months from the execution of the agreement, subject to regulatory approvals and satisfaction of customary conditions.
— ANI
Reader Comments
This is good news for gold loan customers in Kerala and Tamil Nadu. Yogloans has a decent branch network but with Tata backing it could become a pan-India player. ₹318 crore valuation seems reasonable for a 708 crore AUM company.
Smart move by Tata Capital. Gold loans are growing fast in India - people prefer them over personal loans because interest rates lower. But competition is intense with Muthoot, Manappuram, etc. Let's see if Tata brand gives an edge.
Tata is too big and too slow. Gold loans require quick disbursal and flexible repayment. Hope they don't bureaucratize it like their other ventures. But trusted brand nonetheless, especially in rural areas. Good for farmers needing quick funds.
As someone from Kerala, I've seen Yogloans branches everywhere. Good they got Tata backing now. But RBI approval could take time - hope it doesn't get stuck in red tape like some other Tata deals. 🤔
Interesting timing - gold prices are at all-time highs. People will be looking to pledge gold for cash. Tata entering now is clever. But interest rates need to be competitive - existing players charge 12-24% per annum.
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