Aditya Birla Capital to enter gold loan market, target 1,000 branches

Kolkata: The country's gold loan market is experiencing intense competition with diversified non-bank lenders showing interest in it. Aditya Birla Capital is the latest non-banking financial company to announce a foray into the segment, following the entry of Tata Capital and Godrej Capital merely a month ago.

Aditya Birla Capital has on Thursday announced a phase-wise rollout of 200-300 dedicated gold loan branches by March 2027 across high-potential markets. Over the next three years, the company aims to establish a network of around 1,000 such branches, building a strong pan-India franchise.

It said that the gold loan product would complement its existing retail and MSME lending franchise, providing customers with a collateral-backed credit solution.


"Gold loans are witnessing strong structural growth in India, and our entry into this segment is a natural extension of our secured lending strategy," executive director and chief executive officer Rakesh Singh said.

It currently offers a suite of secured and unsecured loans for individuals, small businesses and corporates. Its assets under management grew 27% year-on-year to Rs 1.6 lakh crore with retail and SME comprising about 68%.