Godrej Capital has set a target to scale its gold loan portfolio to ₹5,000 crore by 2031, joining Tata Capital in building corporate-backed gold loan operations.
To accelerate entry, Godrej Capital acquired the gold loan business of Kanakadurga Finance Limited for ₹135 crore, immediately gaining 54 operational branches concentrated in South India.
Over the next five years, the company plans to expand this network to 350 specialized branches spread across six states.
The gold loan push feeds into a larger ambition: Godrej Capital aims for ₹1 lakh crore in total AUM by 2031, with the gold loan book serving as a high-yield, low-default foundation for that scale.
Three factors are driving corporate interest in gold loans: RBI's tightening stance on unsecured personal loans, the high interest margins available on physical collateral that appreciates in value, and borrowers shifting from informal pawnshops to branded institutional lenders.
