Tata Capital enters gold loans with controlling stake in Kerala-based Yogakshemam Loans

Tata Capital is entering the gold loan business through the acquisition of a controlling stake in gold loan-focused non-banking financial company (NBFC) Yogakshemam Loans Ltd (Yogloans), the company said in a press release on Monday. The acquisition adds a secured lending product to the Tata Group firm's portfolio as it broadens its retail lending business.

The board on Monday approved an all-cash transaction under which Tata Capital will acquire an 88.6% stake in Yogloans through a combination of a capital infusion and the purchase of shares from existing shareholders. The deal values Yogloans at a pre-money equity valuation of up to ₹318 crore and includes a primary capital infusion of about ₹93 crore to fund future growth. The acquisition is subject to regulatory approvals and customary closing conditions.

Yogloans, headquartered in Thrissur, Kerala, has assets under management (AUM) of ₹708 crore as of March 2026, serves around 32,000 customers and operates 162 branches across Kerala, Karnataka, Tamil Nadu and Andhra Pradesh.

The company has built its franchise over more than a decade in the gold loan business and will continue to be led by promoter and managing director Unnikrishnan Idicharm Veetil after the acquisition.

Retail push

“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 and chief executive officer of Tata Capital, said.

“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,” Sabharwal said.

The acquisition extends Tata Capital's push to expand its lending franchise. As of 31 March, the company's consolidated AUM stood at ₹2.77 trillion, up 20% year-on-year following the merger with Tata Motors Finance. Excluding the motor finance business, AUM grew 28% year-on-year to ₹2.52 trillion.

Retail loans accounted for 58.3% of Tata Capital's loan book as of March-end, followed by SME loans at 27.4% and corporate loans at 14.3%. Within retail, home loans were the largest segment at ₹44,203 crore, followed by loan against property at ₹38,812 crore, personal and business loans at ₹25,053 crore, two-wheeler loans at ₹14,129 crore and other retail loans at ₹14,083 crore. SME loans stood at ₹76,965 crore, while the corporate loan book was ₹39,640 crore.

Among the major retail products, loan against property posted the fastest annual growth, rising 36.1% to ₹38,812 crore. Home loans increased 15.6% to ₹44,203 crore, business loans rose 14.4% to ₹9,926 crore, two-wheeler loans grew 19.9% to ₹7,886 crore, loan against securities expanded 29.7% to ₹4,942 crore and car loans increased 13% to ₹6,143 crore. Personal loans grew 3.2% to ₹15,127 crore, while commercial vehicle loans declined 23% following the integration of the motor finance business.