Big NBFCs accelerate gold-loan expansion through branches and acquisitions
Tata Capital, Godrej Capital and Aditya Birla Capital are joining gold-loan incumbents as NBFCs scale via branch rollouts and acquisitions. Bajaj Finance targets about 2,800 gold-loan branches by FY27-end, while L&T Finance aims to grow its portfolio to nearly ₹40,000 crore by 2031.
What happened
Large Indian NBFCs and retail-linked conglomerate finance arms are entering or scaling gold loans through acquisitions and branch expansion. Tata Capital,
Key facts
- NBFC gold-loan credit growth: 68.5% YoY at July-end 2026 versus 43.9% at July-end 2025
- NBFC gold-loan portfolio: ₹3,53,988 crore at July-end 2026 versus ₹1,45,986 crore at July-end 2025
- Muthoot Finance gold-loan AUM: ₹1,63,299 crore at June-end 2026
- Manappuram Finance gold-loan AUM: ₹54,655 crore at June-end 2026
- L&T Finance acquired 130 branches, nearly 700 employees and a ₹1,350-crore gold-loan book from Paul Merchants Finance
- L&T Finance targets gold-loan portfolio growth from about ₹3,000 crore to nearly ₹40,000 crore by 2031
- Yogakshemam Loans has 162 branches, ₹708 crore AUM and around 32,000 customers
- Godrej Finance acquisition adds about ₹280 crore AUM, nearly 12,000 customers, 54 branches and around 250 employees
- Aditya Birla Capital plans 1,000 gold-loan branches in three years
- Bajaj Finance added 194 branches in Q1 FY27, reaching 1,701, and targets about 2,800 by FY27-end
Why this matters
Acquisitions of gold-loan books and specialist platforms offer a faster route to scale, making targets with strong branch density, collateral processes and local customer relationships strategically valuable.
What to watch
- Monthly NBFC gold-loan AUM growth versus bank and specialized gold-finance growth.
- Branch additions and stated gold-loan targets from Bajaj Finance, L&T Finance, Tata Capital, Godrej Capital and Aditya Birla Capital.
- Acquisition valuations, loan-book purchases and consolidation among regional gold-loan operators.
- Changes in average LTV, borrowing rates, auction frequency, delinquencies and credit-cost provisions.
- Gold-price corrections or volatility that could reduce collateral buffers.
- RBI guidance on gold collateral valuation, auction rules, KYC, conduct and NBFC provisioning.
- Accelerate acquisition or partnership discussions with regional gold-loan lenders, pawn networks and fintech-originators.
- Add gold-loan counters within existing consumer-finance branches to reduce incremental distribution cost.
- Bundle gold loans with savings, insurance, payments and small-business credit products to improve customer lifetime value.
- Invest in centralized gold appraisal, fraud detection, remote renewal and auction-management infrastructure.
- Use promotional rates selectively in underserved cities while protecting margins in mature gold-loan markets.