Tata Capital has strengthened its presence in India’s fast-growing secured lending market by acquiring a majority stake in Kerala-based non-banking financial company (NBFC) Yogloans. The transaction, structured as an all-cash deal, marks Tata Capital’s strategic entry into the gold loan business through an established regional player rather than building operations from scratch.
Under the agreement, Tata Capital will acquire an 88.6% stake in Yogloans, valuing the company at a pre-money equity valuation of around ₹318 crore. The deal also includes a fresh capital infusion of approximately ₹93 crore, aimed at supporting the lender’s next phase of expansion.
Despite the change in ownership, Managing Director I. Unnikrishnan will continue to lead the company, ensuring continuity in leadership and business strategy.
A Kerala Success Story
Yogloans traces its origins to 1991, when it began as a local financial enterprise in Anthikad, Thrissur district, under the name Yogakshemam Kuries & Loans Pvt. Ltd. The company secured its Reserve Bank of India NBFC registration in the early 2000s, laying the foundation for its expansion beyond Kerala.
Over the years, the lender gradually extended its footprint into neighbouring southern states, including Tamil Nadu, Karnataka, and Andhra Pradesh.
A major turning point came in 2015 when a new investor group, led by entrepreneur Ramachandran Ottapathu and financial sector veteran I. Unnikrishnan, took over the company’s management and accelerated its growth through product diversification and business expansion.
Strong Asset Base
As of March 31, 2026, Yogloans managed assets worth approximately ₹708 crore. The company has built a strong presence in South India’s gold loan segment, making it an attractive acquisition for Tata Capital.
Industry observers expect Tata Capital to eventually integrate Yogloans into its broader financial services ecosystem while leveraging the company’s regional expertise and customer relationships.
Why Gold Loans?
India’s gold loan market has emerged as one of the fastest-growing retail lending segments. Rising gold prices, combined with increasing consumer preference for secured borrowing, have significantly boosted demand for loans backed by gold jewellery.
Recent industry data indicates that gold loan portfolios of NBFCs have expanded sharply over the past year, reflecting the growing popularity of the segment among borrowers seeking quick and collateral-backed financing.
Rather than creating a new gold loan network from the ground up, Tata Capital has opted to acquire a well-established regional brand with an existing customer base, branch network, and operational experience.
Impact on the Market
The acquisition is expected to intensify competition in India’s gold loan industry, particularly in Kerala, which is home to some of the country’s largest gold finance companies.
With Tata Capital now entering the sector through Yogloans, the competitive landscape is likely to evolve further as established players and new entrants compete for market share in one of India’s fastest-growing secured lending businesses.
