Poonawalla Fincorp forays into gold loan biz with quick financing solutions

Cyrus Poonawalla-promoted Poonawalla Fincorp on Tuesday said it has forayed into the gold loan business, aiming to offer fast gold-backed financing solutions for both individuals and businesses, catering to a range of financial needs, including business expansion, agricultural expenses, and personal requirements.

 

Incidentally, Poonawalla Fincorp’s entry into the gold loan business comes after the Reserve Bank of India (RBI) released draft guidelines on gold loans, which, if implemented in the current form, are expected to hurt gold loan growth of non-banking financial companies (NBFCs), according to analysts.

 

On Tuesday, shares of Poonawalla Fincorp closed 4.4 per cent higher at Rs 382.40 apiece.

 

“With faster approvals in less than 30 minutes, minimal documentation, and multiple repayment options, customers can unlock the value of their gold without selling it — ensuring financial flexibility while preserving long-term wealth,” the lender said in a statement.

 

The Pune-based NBFC plans to open 400 new branches over the next four quarters to scale up its secured lending footprint, particularly across Tier-II and Tier-III cities of the country.

 

“Our gold loan offering represents a natural progression in our secured lending portfolio, combining traditional value with modern convenience. We have designed this product with the customer journey at its core, respecting both the emotional and financial value of gold,” said Arvind Kapil, managing director and chief executive officer, Poonawalla Fincorp.