Mumbai, July 30 -- India's largest conglomerate-backed non-bank financiers are betting on the fast-growing gold loan market, with acquisitions emerging as the preferred route to enter the business. Within days of each other, Tata Capital and Godrej Capital, backed by eponymous groups, announced deals for established gold loan franchises, signalling a broader consolidation in secured retail lending.

On 13 July, Tata Capital entered the segment by taking a majority stake in Kerala-based Yogakshemam Loans Ltd, also known as Yogloans, while on 22 July, Godrej Capital agreed to acquire the gold loan business of Kanakadurga Finance through its subsidiary Godrej Finance, gaining an established portfolio, branch network and an operating team.

T...