Capital Trust has entered the gold loan business with a digital-first model, leveraging its 300+ branches to diversify lending and enhance profitability.
Why Is Capital Trust Entering the Gold Loan Business Now?
About Capital Trust
Capital Trust is a diversified non-banking finance company (NBFC) with strong expertise in retail and MSME lending. Operating across 10 states in India with more than 300 branches, the company has built a reputation for customer-focused financial services. The entry into gold loans marks an important strategic shift into secured lending, positioning Capital Trust alongside established gold loan players while leveraging its own wide network.
The company inaugurated its gold loan operations with the first branch in Aligarh, Uttar Pradesh, while preparing to scale the business across its extensive branch footprint.
Rationale Behind the Gold Loan Foray
Gold loans are among the fastest-growing secured lending categories in India, supported by strong household gold reserves, quick disbursal needs, and lower default risk. Capital Trust’s move into this segment diversifies its portfolio, strengthens asset quality, and offers higher-margin lending opportunities. By entering now, the company is aiming to tap into rising demand for short-term secured loans, especially in semi-urban and rural markets.
✅ Entry into gold loans enhances Capital Trust’s lending portfolio by reducing reliance on unsecured credit and supporting profitability.
Product Features and Compliance
The gold loan offering is fully compliant with RBI’s 2025 Gold Loan Directions, ensuring regulatory alignment. Customers can access loans up to ₹2.5 lakh at loan-to-value (LTV) ratios as high as 85%. Capital Trust has prioritized speed and accessibility by introducing a quick 20-minute loan disbursal system, supported by both digital and physical pledges.
💡 Regulatory compliance and a high LTV offering give Capital Trust a competitive edge in attracting borrowers seeking convenience and transparency.
Digital-First Lending Approach
A key differentiator for Capital Trust is its app-based platform, which provides borrowers with features like one-click top-ups, 24x7 loan monitoring, and instant e-certificates for pledged gold. The system also incorporates dual staff valuation and strong-room security measures, ensuring trust and risk mitigation.
🎯 Technology integration positions Capital Trust as a modern NBFC bridging traditional gold lending with digital convenience.
Growth Outlook and Profitability
Capital Trust’s gold loan business is expected to contribute meaningfully to revenue growth while enhancing profitability. With secured lending carrying lower non-performing asset (NPA) risks, this move is likely to improve the company’s overall asset quality. Additionally, by leveraging existing branch infrastructure, expansion costs remain controlled while scaling potential remains significant.
💰 Gold loans not only diversify risk but also create a steady growth engine in India’s high-demand secured lending market.
Investor Implications
For investors, Capital Trust’s foray into gold loans underscores a shift towards stability and profitability. Diversification into secured lending enhances the company’s competitive positioning and provides a cushion against volatility in unsecured loan portfolios. The key focus ahead will be on scaling volumes, maintaining asset quality, and competing effectively with larger, established players in the gold loan sector.
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Investor Takeaway
Capital Trust’s entry into the gold loan business reflects its strategy to diversify and strengthen secured lending. By leveraging its branch network, adopting digital platforms, and aligning with RBI norms, the company is well-positioned to capture opportunities in India’s growing gold-backed lending space. Long-term investors may view this as a structural step toward sustainable growth. More expert market insights can always be explored at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
