Tata Capital Ltd., one of India’s biggest shadow lenders, is entering the country’s $194 billion gold loan market by acquiring a majority stake in Yogakshemam Loans Ltd., intensifying competition in the nation’s fastest-growing lending segment. The move signals a strategic push by Tata Capital into secured, gold-backed credit, leveraging the deep cultural affinity for gold assets across India. Yogakshemam Loans brings an established network and expertise in loan-to-value assessment, strengthening the acquirer’s foothold in a segment known for lower default rates and rapid turnaround. The acquisition underscores the growing appetite among non-banking financial companies for gold loan portfolios, which have outperformed unsecured lending in recent years.

With the market projected to expand further, Tata Capital’s entry could reshape competitive dynamics, challenging established players such as Muthoot Finance and Manappuram Finance. Regulatory scrutiny on loan-to-value ratios and auction transparency remains a key focus for the sector as it scales.