THEBUSINESSBYTES BUREAU

MUMBAI, AUGUST 20, 2026

Riding a powerful wave of rising gold prices and surging demand for secured credit, Aditya Birla Capital is making an aggressive foray into India’s booming gold loan market, setting its sights on a formidable network of 1,000 dedicated branches over the next three years. The move marks a significant expansion of the financial services major’s secured lending strategy and comes at a time when gold loans are emerging as one of the fastest-growing segments in the country’s credit landscape.

Unlike several non-bank lending peers that have turned to acquisitions to gain a foothold in the lucrative business, the Aditya Birla Group’s financial services arm plans to build its gold loan franchise organically. The company will begin by opening up to 300 gold loan branches by the end of FY27, targeting high-potential markets across the country, according to an official statement.

 “Gold loans are witnessing strong structural growth in India, and our entry into this segment is a natural extension of our secured lending strategy,” said Rakesh Singh, Executive Director and Chief Executive—NBFC, Aditya Birla Capital.

The timing of the expansion is particularly significant. Lending against gold jewellery has witnessed an unprecedented acceleration in recent months, propelled in part by elevated gold prices and the strong appeal of gold-backed borrowing among households and small businesses.

Data underscores the scale of the opportunity. Outstanding credit extended by non-banking financial companies against gold jewellery surged 69.3 per cent year-on-year in June 2026, representing the fastest growth among major lending segments. The overall NBFC portfolio of loans against gold jewellery stood at ₹3.42 lakh crore at the end of June 2026, compared with ₹1.44 lakh crore a year earlier.

Industry experts attribute the surge to a combination of factors, including record-high gold prices and the deep emotional and financial value attached to the precious metal. For many borrowers, the desire to reclaim their pledged jewellery acts as a strong incentive for timely repayment, making gold-backed lending an attractive proposition for lenders as well as customers.

Aditya Birla Capital plans to tap this growing opportunity by offering gold loans to a broad customer base across urban and semi-urban markets. The new business will serve existing customers within the group’s extensive financial services ecosystem while also reaching new borrowers through an integrated distribution model combining physical branches and digital platforms.

The gold loan push comes as the company continues to strengthen its overall retail and small-business lending franchise. In FY26, the NBFC’s assets under management rose 27 per cent year-on-year to ₹1,59,916 crore, with retail and SME businesses accounting for 68 per cent of total AUM. Disbursements during the year increased 25 per cent to ₹84,204 crore.

Momentum has continued into the current financial year. In the first quarter of FY27, Aditya Birla Capital’s AUM grew 28 per cent year-on-year to ₹1,67,456 crore, while disbursements jumped 34 per cent to ₹21,201 crore.