Tata Capital has officially stepped into the gold loan business. The company’s board recently approved a plan to acquire a majority stake in Yogakshemam Loans Limited, a specialist lender based in Kerala. This move is a key part of the Tata Group’s broader plan to diversify its retail lending business and offer more secured loan products to everyday borrowers.

This is a significant all-cash deal. Tata Capital intends to own approximately 88.6% of the firm once the transaction is finalised. The Kerala-based entity has been valued at up to Rs 318 crore, with an additional Rs 93 crore in fresh capital to be injected to support further growth.

A strategic move in southern India

Yogloans is no newcomer to the industry. It is an established player with a network of 162 branches. While its headquarters are in Kerala, its presence already extends to Karnataka, Tamil Nadu and Andhra Pradesh. By the end of March 2026, the firm was managing assets worth Rs 708 crore for around 32,000 customers. For Tata, the acquisition provides an immediate platform in the highly competitive southern Indian market.

Roots in a Thrissur village

The story of Yogloans is one of steady growth from humble beginnings. It began in 1991 in the village of Anthikad in Kerala's Thrissur district. Originally named Yogakshemam Kuries & Loans Private Limited, it started as a local initiative to provide financial services to the community. By the turn of the millennium, the company secured registration with the Reserve Bank of India, enabling it to expand its ambitions. A major turning point came in 2015 when new management took over, bringing fresh funding and a modern strategy that expanded the business beyond Kerala.

Under the new ownership, Managing Director Unnikrishnan Idicharm Veetil will continue to lead the business. Tata Capital plans to combine its established brand and technical capabilities with the local expertise Yogloans has built over the past three decades. The acquisition is expected to be completed within eight months, subject to approval from the Reserve Bank of India.