SynopsisAditya Birla Capital Limited announced its strategic expansion into the gold loan business. This new offering will complement its existing retail and MSME lending franchise. The company plans to open 200 to 300 dedicated gold loan branches by March 2027. These branches will be established across high potential markets within the country. The group will leverage its distribution network and digital capabilities for customer experience.Listen to this article in summarized formatGetty ImagesAditya Birla Capital announces entry into gold loan business with phased rollout of branches across IndiaAditya Birla Capital Limited on Thursday announced its entry into gold loan business segment as a 'strategic expansion' of its secured lending portfolio. The company plans a phase-wise rollout of 200-300 dedicated gold loan branches by March 2027 across high potential markets in the country, the company said in a regulatory filing.Under its Non-Banking Financial Company (NBFC) portfolio, the gold loan offering is said to compliment its existing retail and MSME lending franchise, providingcustomers with a transparent, flexible and collateral-backed credit solution.Also read: L&T Finance plans 500 new gold loan branches this fiscalFollowing the announcement, shares of Aditya Birla Capital Limited (ABCL) surged 1.98% to trade at Rs 404.60 per scrip (+Rs 7.85) as at 9:37 on BSE.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 CEO - NBFC at Aditya Birla Capital Limited.'"We are building our Gold Loan business from the ground up, shaped by these principles, and a strong focus on governance, prudent risk management, operational excellence, and a customerfirst approach," he added.The group will leverage its extensive distribution network and digital capabilities to deliver a high-quality customer experience.Aditya Birla's gold loan offering will cater to various customers across urban and semi-urban markets, serving existing customers within the ecosystem and expanding its reach to new customers through an integrated distribution network of physical branches and digital platforms.Aditya Birla joins Tata, Godrej in gold loan turfDiversified lenders have shown increased interest in India’s gold loan market in the last few months.Last month, Tata Capital and Godrej Capital bought stakes in separate gold loan businesses, marking their entry into India’s fast-growing gold loan market and intensifying competition for traditional lenders such as Muthoot Finance and Manappuram Finance.Also read: Tata Capital joins the race to own a piece of India's dormant wealthTata Capital announced plans to acquire 88.6% of Yogakshemam Loans Ltd, or Yogloans in an all-cash transaction valued at at Rs 360-365 crore.Godrej Capital, the financial services arm of the Godrej Group acquired the gold loan business of Kanakadurga Finance through its subsidiary Godrej Finance for an undisclosed sum, marking the maiden acquisition by the company to strengthen its presence in the consumer finance segment.The Indian gold loan segment has been witnessing very high growth in the past few months amid the increase in prices of the precious commodity and also lenders' comfort because of the secured nature of the product. Accoridng to a PTI report, outstanding loans against gold jewellery stood at Rs 3.29 lakh crore at the end of May 2026, up 69.9 per cent from Rs 1.94 lakh crore a year earlier.Read More News on...moreless