Archive · 27 Aug 2026
How Indian Gold Loans Made Two Families Billionaires
Gold loans let people borrow money by leaving their gold with a lender as security.
Two Indian families built very large businesses using this idea.
The Muthoot family began its business in Kerala in 1887 and entered gold lending in 1939.
Muthoot Finance is now India’s biggest gold-loan company.
The Manappuram business began as a pawn-broking operation and focused more strongly on gold loans in 2007.
It is now India’s second-largest gold lender.
Both companies grew as more people sought loans and gold prices increased.
The families also expanded into other financial services and industries.
Muthoot Finance traces its lending history to 1887 and entered gold loans in 1939.
Muthoot Finance is India’s largest gold-loan company, with $18.5 billion in gold-loan assets and about 210 tonnes of pledged gold.
Manappuram Finance refocused on gold lending in 2007 and is now India’s second-largest gold lender.
Manappuram has around three million customers, about $6 billion in gold-loan assets and 63 tonnes of gold as security.
Rising gold prices, demand for credit and extensive branch networks helped both family businesses expand into billion-dollar empires.
- Who
- The Muthoot family and V.P. Nandakumar’s Manappuram group.
- What
- They built major Indian lending businesses centered on loans secured by pledged gold.
- When
- Muthoot entered gold loans in 1939; Manappuram refocused on them in 2007; the figures cited are as of June.
- Where
- The businesses originated in Kerala, India, and operate through large lending networks.
- Why
- Demand for gold-backed credit, rising gold prices, collateral-based lending and branch expansion helped the businesses scale.
- Muthoot Finance position
- India’s largest gold-loan company and fifth-most-valuable non-bank lender, according to Bloomberg News.
- Muthoot gold-loan assets
- $18.5 billion as of June, roughly four times the level in 2020.
- Muthoot gold security
- About 210 tonnes of gold.
- Manappuram position
- India’s second-largest gold lender.
- Manappuram gold-loan assets
- Approximately $6 billion.
- Manappuram customers
- Around three million.
- Reported family wealth
- $9.9 billion for the Muthoot family and $1.4 billion for the founder or family associated with Manappuram.