Aditya Birla Capital enters gold loans, to have 1000 dedicated branches in three years

Aditya Birla Capital enters gold loans, plans 1,000 branches in 3 years.

MUMBAI: Aditya Birla Capital‘s NBFC business has entered the gold loan segment and plans to open around 1,000 dedicated gold loan branches over the next three years, including 200-300 branches by Mar 2027, as lenders step up their presence in secured credit.India’s gold loan market has attracted new entrants this year as lenders seek to tap rising demand for secured credit. Both Tata Capital and Godrej Finance have acquired gold loan companies to speed up their expansion in the segment, while Shriram Finance has announced plans for aggressive growth.The NBFC business plans a phase-wise rollout across high-potential markets and aims to build a pan-India network of around 1,000 branches within three years.The new offering will add to Aditya Birla Capital’s retail and MSME lending business. The company said it will combine dedicated branch-led service with digital capabilities and offer collateral-backed loans through physical branches and digital platforms.According to Rakesh Singh, executive director and ceo, NBFC, Aditya Birla Capital, the entry extends the company’s secured lending strategy and responds to customer demand for transparency and secure handling of pledged gold. “Gold loans are witnessing strong structural growth in India, and our entry into this segment is a natural extension of our secured lending strategy. In a category where trust is paramount, customers seek transparency, secure handling of their gold, and the confidence that their valuable assets are in safe and trusted hands,” he said.Singh said the company is building the business with a focus on governance, risk management and its distribution and digital network. “As we expand our presence across India, we will leverage our extensive distribution network and digital capabilities to deliver a superior customer experience,” he said.The offering will target customers in urban and semi-urban markets, including existing customers in the company’s ecosystem and new borrowers reached through its physical and digital distribution network.The NBFC business ranks among the top five AAA-rated diversified NBFCs in India and operates across personal and consumer loans, unsecured business loans, secured business loans, and corporate and mid-market loans.In FY26, its AUM grew 27% year-on-year to Rs. 159,916 crore, with retail and SME accounting for around 68% of AUM. Disbursements rose 25% to Rs. 84,204 crore, while profit before tax increased 20% to Rs. 4,023 crore.The growth continued in Q1 FY27, when AUM rose 28% year-on-year to Rs. 167,456 crore. Disbursements increased 34% to Rs. 21,201 crore and profit before tax grew 32% to Rs. 1,222 crore.