Tata Capital to buy 88.6% in Yogloans, enters gold loan business

Tata Capital will acquire about 88.6% of Yogakshemam Loans Ltd, or Yogloans, marking its entry into India’s fast-growing gold loan market and intensifying competition for specialist lenders such as Muthoot Finance and Manappuram Finance.

The proposed all-cash transaction will be carried out through a combination of share purchase from existing shareholders and fresh capital infusion, Tata Capital said. The transaction values Yogloans at up to Rs 318 crore before Tata Capital’s fresh capital infusion of about Rs 93 crore. The acquisition is pegged at Rs 360-365 crore, based on the disclosures made by the company to the exchanges.

The purchase is expected to be completed within eight months of the securities subscription and purchase agreement, according to the company’s disclosure. Once completed, Yogloans will become a subsidiary of Tata Capital.


The deal gives Tata Capital an operating platform in gold loans, a secured lending product that typically offers better returns on assets and low credit costs because loans are backed by liquid collateral. It also allows the lender, which has strong roots in personal and housing finance, to add a high-yield secured product to its retail portfolio.

Yogloans, headquartered in Thrissur, Kerala, is an RBI-registered non-bank lender focused mainly on gold loans. It had assets under management of Rs 708 crore as of March 31, 2026, with about 85% of the book in gold loans, 162 branches across Kerala, Karnataka, Tamil Nadu and Andhra Pradesh, and around 32,000 gold loan customers.

“The 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,” Rajiv Sabharwal, managing director and chief executive of Tata Capital, said in the company’s release.

Tata Capital’s move comes amid rising interest from diversified lenders and investors in India’s gold loan market. L&T Finance completed the acquisition of the gold loan business of Paul Merchants Finance in 2025, taking over a Rs 1,350-crore gold loan book, 130 branches and about 700 employees.

InCred Finance has also entered the gold loan segment by acquiring TruCap Finance’s gold loan business through a slump sale, a transaction valued at about Rs 330 crore and involving 115 branches, more than 40,000 customers, over 550 employees and assets under management of more than Rs 650 crore.

In another major transaction in the sector, Bain Capital received final RBI approval to acquire joint control and up to 41.6% of Manappuram Finance, one of India’s largest gold loan financiers.

The growing deal activity reflects the appeal of gold loans at a time when lenders are seeking secured products with granular ticket sizes, faster turnover and better risk-adjusted yields. For Tata Capital, the acquisition provides an immediate branch network and experienced management team instead of building the business from scratch.

Yogloans is led by Unnikrishnan Idicharm Veetil, who will continue to head the business after the acquisition, according to the release. The company has said the combination of Yogloans’ local market expertise and Tata Capital’s brand, capital strength, technology and risk management capabilities will help accelerate growth.