Aditya Birla Capital has entered the gold loan business as part of its strategy to expand its secured lending portfolio and strengthen its presence in the retail and MSME credit segments.
Following the announcement, shares of Aditya Birla Capital gained more than 3%, trading at Rs 408.15 at around 11.15 am.
The company's NBFC business has started offering gold loans as an extension of its existing retail and MSME lending franchise. The new offering is aimed at providing customers with a collateral-backed credit option, with the company focusing on transparency, flexibility and secure handling of pledged gold.
Aditya Birla Capital plans to open between 200 and 300 dedicated gold loan branches by March 2027 in markets identified as having strong growth potential. Over the next three years, the company aims to expand the network to around 1,000 gold loan branches across India.
The expansion comes as India's gold loan market continues to witness strong growth, driven by increasing demand for secured credit. Gold loans allow customers to borrow money against pledged gold, making them an important source of short-term and secured financing for individuals and businesses.
The company plans to build its gold loan business around governance, prudent risk management, operational efficiency and a customer-focused approach. A key focus will also be on ensuring transparency and the secure custody of customers' gold.
Aditya Birla Capital is expected to use its existing distribution network and digital capabilities to support the expansion of its gold loan operations across India.
With plans to establish a large network of dedicated branches, the company is looking to build a pan-India gold loan franchise and further diversify its secured lending portfolio while strengthening its position in India's growing retail credit market.
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