Poonawalla Fincorp launches gold loan business; eyes Tier-I, II expansion

The Cyrus Poonawalla Group-backed NBFC plans to open 400 new branches over the next four quarters, targetting Tier-II and Tier-III cities

Poonawalla Fincorp Ltd on Monday announced its foray into the gold loan segment. This marks the non-banking financial company’s (NBFC) entry into a new category of secured lending products. The move is part of the Cyrus Poonawalla Group-backed NBFC’s broader strategy to expand its secured lending portfolio and strengthen its presence in semi-urban and rural markets.

 

The Poonawalla Fincorp company 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.

 

According to the company, the gold loan product is aimed at providing quick and transparent financing solutions to both individuals and small businesses, catering to needs ranging from personal expenses to agriculture and business expansion. The product promises loan approvals in under 30 minutes, minimal paperwork, and flexible repayment options. 

 

Calling it a ‘natural progression’ in Poonawalla Fincorp’s secured lending journey, MD and CEO Arvind Kapil said the offering is designed to balance financial utility with the emotional value of gold. “At Poonawalla Fincorp, customer asset safety and transparency remain paramount, while delivering reliable and premium services,” he said in the company statement.  ALSO READ | Shein, Reliance renegotiate partnership as China-US trade tensions grow 

The NBFC, which primarily focuses on consumer and MSME lending, sees the gold loan market as a resilient opportunity, especially during times of economic uncertainty. 

The gold loan segment in India is largely seen as a low-credit-risk business with strong demand potential, both in rural and urban areas. Poonawalla Fincorp said it would adopt a “risk-first approach” to ensure secure and timely loan disbursals while preserving customers’ assets. 

The company has already onboarded industry professionals to support localised operations and enhance customer experience across regions. 

Following the announcement, shares of Poonawalla Fincorp rose 2.20 per cent on the BSE to Rs 374.90, as of 10.20 am.