Tata, Birla and Godrej Groups Target India’s Expanding Gold Loan Market
Major Indian conglomerates are entering the gold-backed lending sector as demand for loans against household jewellery continues to surge.
NEW DELHI, Aug 24: Major Indian business groups are stepping into the rapidly expanding gold-backed lending market, seeking to capitalise on rising demand for credit secured against household gold.
Aditya Birla Group, Tata Capital and Godrej Capital are among the large corporate players establishing or acquiring businesses in the sector, intensifying competition with established regional and specialised gold-loan companies.
The expansion comes as lending against gold has recorded strong growth. Reserve Bank of India data showed loans against gold rising by more than 42% annually since March 2024, with growth accelerating to about 70% year on year in May and June 2026.
India’s large household gold holdings provide lenders with a substantial pool of collateral. Gold backed borrowing has also increasingly moved beyond emergency financing, becoming a more mainstream source of credit for households and small businesses.
Recent regulatory changes have further shaped the sector. Higher loan to value limits and tighter lending requirements introduced in April are encouraging companies to strengthen their risk management systems while pursuing expansion.
Rating agency ICRA expects the gold loan industry to grow by around 35% annually over the next two years, highlighting the scale of the opportunity.
The entry of large conglomerates is expected to increase competition through greater access to capital, technology and wider distribution networks. Smaller regional lenders, meanwhile, could face pressure to improve customer service and operational efficiency.
With gold prices remaining elevated and demand for secured credit increasing, the sector is emerging as an important area of growth for India’s financial-services industry.
