Archive · 21 Aug 2026
Aditya Birla Capital Enters Gold Loans, Plans 1,000 Branches Nationwide
Aditya Birla Capital is starting a business that gives people loans using gold as security.
Its non-banking finance company will open special branches for these loans across India.
It plans to open 200 to 300 branches by March 2027.
Over about three years, it wants to reach around 1,000 branches.
The service will be available in cities and smaller urban areas.
Existing customers may also use the new service.
The company says gold loans fit its plan to provide secured loans.
It will compete with companies such as Muthoot Finance and Manappuram Finance.
Analysts expect the market to grow but will watch loan pricing and the increasing number of lenders.
Aditya Birla Capital has entered India’s gold-loan market through its NBFC arm.
The company plans 200-300 dedicated gold-loan branches by March 2027 and around 1,000 within three years.
The offering will target urban and semi-urban customers while serving existing retail and SME borrowers.
The move expands the company’s secured-lending strategy as its assets under management reached Rs 1.60 lakh crore in FY26.
Aditya Birla Capital will compete with established lenders, while analysts cite strong growth but warn about pricing and rising competition.
- Who
- Aditya Birla Capital, through its non-banking finance company arm, led by NBFC Executive Director and CEO Rakesh Singh.
- What
- The company is launching dedicated gold-loan operations and plans to build around 1,000 branches over three years.
- When
- The announcement was made on Thursday; 200-300 branches are planned by March 2027.
- Where
- Across India, including urban and semi-urban markets.
- Why
- To extend its secured-lending strategy and add gold loans to its retail and SME lending operations.
Expansion Opportunity
Competition and Risks
Market growth
Expansion Opportunity
Aditya Birla Capital and ICRA point to strong growth prospects for gold loans, particularly amid recent stress in unsecured lending.
Competition and Risks
Equirus Securities analyst Shreepal Doshi said pricing strategy and the rising number of lenders will remain key issues to monitor.
Competitive position
Expansion Opportunity
The new business can broaden Aditya Birla Capital’s secured-lending franchise and serve urban, semi-urban, and existing customers.
Competition and Risks
The company will face established gold-loan leaders Muthoot Finance and Manappuram Finance, as well as recent entrants Godrej Capital and Tata Capital.
- Company
- Aditya Birla Capital
- Operating entity
- Aditya Birla Capital’s NBFC arm
- Initial branch target
- 200-300 dedicated gold-loan branches by March 2027
- Three-year target
- Around 1,000 gold-loan branches
- Existing lending focus
- Retail and SME lending
- Gold-backed NBFC credit
- Rs 3.41 lakh crore as of June, up 69.3% year on year
- Company AUM
- Rs 1.60 lakh crore in FY26, up 27% year on year
- Gold-price movement
- Gold prices had risen 18% so far in 2026
