Financial services firm Godrej Capital has outlined an ambitious expansion strategy to scale its gold loan portfolio to ₹5,000 crore by 2031, tapping into the surging demand for secured credit in urban and semi-urban India.
Key Highlights
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Growth Target: The company aims to build a ₹5,000 crore Assets Under Management (AUM) dedicated to the gold loan vertical over the next five years.
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Network & Footprint Expansion: To achieve this milestone, Godrej Capital plans to expand its physical branch footprint, establishing over 300 targeted branches across Tier-2, Tier-3, and Tier-4 markets.
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Tech-Driven Strategy: The expansion strategy focuses on offering competitive Loan-to-Value (LTV) ratios, flexible repayment options, and door-step and digital gold-loan solutions to streamline the borrowing process.
Strategic Rationale
As formal lending penetration increases across non-metro regions, secured products like gold loans provide non-banking financial companies (NBFCs) with low-risk credit exposure, superior yields, and lower credit losses compared to unsecured retail loans.
