Tata Capital enters gold loan sector with acquisition of Kerala's Yogakshemam Loans

In a major strategic expansion, Tata Group's financial services arm, Tata Capital Limited, has announced its entry into the gold loan segment by acquiring a majority stake in Thrissur-based Yogakshemam Loans Limited (Yogloans). This marks a significant milestone for Tata Capital as it expands its retail lending portfolio into the lucrative gold loan sector.

Under the terms of the agreement, Tata Capital will acquire an 88.6% stake in Yogakshemam Loans. In addition to purchasing shares from existing stakeholders, Tata Capital will inject fresh equity of ₹93 crore to fuel the company's future growth. The transaction is structured as an all-cash deal, valuing the Kerala-based non-banking financial company (NBFC) at a pre-money equity valuation of ₹318 crore.

Despite the transition in ownership, Yogakshemam Loans will continue to be led by its current Managing Director and CEO, I Unnikrishnan. In a regulatory filing, Tata Capital confirmed that Unnikrishnan will retain his leadership role to ensure operational continuity and oversee the next phase of expansion under the Tata umbrella.

Yogakshemam Loans has established a robust footprint across South India, operating 162 branches across Kerala, Tamil Nadu, Karnataka, and Andhra Pradesh. As an RBI-licensed NBFC, the firm has built a strong retail base and reported assets under management (AUM) of ₹708 crore as of March 31, 2026. The acquisition is expected to be completed within eight months, subject to necessary regulatory approvals, after which Yogakshemam Loans will operate as a subsidiary of Tata Capital.

The journey of Yogakshemam Loans began in 1991 in Anthikkad, Thrissur, where it was incorporated as Yogakshemam Kuries and Loans Private Limited. The company secured its NBFC licence from the Reserve Bank of India during the 2000-01 financial year, setting the stage for its eventual integration into one of India's largest conglomerates.