Tata Capital to Enter Gold Loan Business With Yogloans Acquisition

Tata Capital has approved the acquisition of a majority stake in Yogakshemam Loans Limited (Yogloans), marking its entry into the gold loan business, the company said in a press release.

The proposed transaction will see Tata Capital acquire around 88.6% of Yogloans through a combination of a capital infusion and the purchase of shares from existing shareholders. The deal is subject to regulatory approvals and customary closing conditions.

The acquisition is part of Tata Capital's strategy to expand its retail lending business by adding a secured lending product with significant growth potential.

How the Deal Is Structured

The transaction is based on a pre-money equity valuation of Yogloans of up to ₹318 crore, subject to customary adjustments. It also includes a primary capital infusion of around ₹93 crore to support the company's future growth.

Yogloans is a Reserve Bank of India-registered non-banking financial company (NBFC) focused on gold loans. As of March 31, 2026, it had assets under management (AUM) of ₹708 crore and served around 32,000 customers.

The company operates 162 branches across Kerala, Karnataka, Tamil Nadu and Andhra Pradesh. Tata Capital said Yogloans has built strong capabilities in sourcing, underwriting and servicing gold loans over more than a decade.

Acquisition Seen as Growth Opportunity

Following the acquisition, Yogloans' Promoter and Managing Director (MD), Unnikrishnan Idicharm Veetil, will continue to lead the business, ensuring continuity for customers, employees and business partners.

Commenting on the acquisition, Tata Capital MD 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."

Yogloans Leadership to Remain Unchanged

Welcoming the transaction, Unnikrishnan said the company had built its business by focusing on customer experience, prudent lending practices and strengthening its presence across key markets.

Speaking about the partnership, he said, "We are delighted to be joining the Tata family, one of India's most respected and trusted business groups. Tata Capital's brand, financial strength and technology capabilities will help accelerate our growth."

He added that the company looks forward to working closely with Tata Capital to build on its existing foundation and take the business into its next phase of growth.