Tata Capital is set to enter the gold loan business after approving the acquisition of an 88.6 percent stake in Yogakshemam Loans Ltd (Yogloans), a move that will strengthen its retail lending portfolio and expand its presence in the secured lending segment.
According to a stock exchange filing, Tata Capital’s Board has approved the execution of a Securities Subscription and Purchase Agreement (SSPA) to acquire the majority stake through a combination of purchasing shares from existing shareholders and subscribing to fresh equity shares.
The transaction remains subject to customary conditions, including approval from the Reserve Bank of India (RBI).
Strategic Expansion into Gold Loans
Tata Capital said the acquisition aligns with its strategy of diversifying its retail lending business while gaining access to an established gold loan platform.
“The acquisition is aligned with the Company’s strategy of expanding and diversifying its retail lending portfolio in India and provides access to an established gold loan platform with an existing branch network, customer franchise and experienced management team,” the company said.
Investment and Valuation
As part of the transaction, Tata Capital will invest approximately Rs 93 crore by subscribing to new equity shares in Yogloans.
The deal is based on a pre-money equity valuation of up to Rs 318 crore for the company.
Once the acquisition is completed, Yogloans will become a subsidiary of Tata Capital.
Established Gold Loan Business
Yogloans is an RBI-registered non-banking financial company (NBFC) that primarily offers gold loans.
As of March 31, 2026, the company had:
- Assets under management (AUM) of approximately Rs 708 crore
- A network of 162 branches
- Operations across Kerala, Karnataka, Tamil Nadu and Andhra Pradesh
- Around 32,000 gold loan customers
Tata Capital Sees Strong Growth Opportunity
Commenting on the acquisition, Tata Capital Managing Director and Chief Executive Officer Rajiv Sabharwal said the transaction marks the company’s entry into a lending segment with significant long-term potential.
“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 said.
Sabharwal added that combining Yogloans’ expertise in the gold loan market with Tata Capital’s brand, financial strength, technology capabilities and risk management framework is expected to accelerate growth and enhance customer experience.
The company expects the acquisition to be completed within eight months of signing the agreement, subject to regulatory approvals and the fulfilment of customary closing conditions.
