AU Small Finance Bank Expands Gold Loan Services Across 501 Branches to Strengthen Secured Lending in India

AU Small Finance Bank (AU SFB), India’s largest Small Finance Bank and the first in over a decade to receive in-principle approval to transition into a Universal Bank, today announced the successful activation of 501 existing branches for Gold Loan product.” The initiative marks a significant step in strengthening AU SFB’s institution-led secured lending footprint, bringing faster, transparent and reliable gold loan services closer to customers across the country.

The addition of new set of branches is strategically located in regions with high household gold ownership and sustained demand for short-tenure, collateral-backed credit, reflecting the enduring role of gold as a trusted financial asset in India.

Each Gold Loan branch is purpose-built to deliver a seamless customer experience, supported by trained appraisers, standardised processes, and robust risk and compliance systems. This enables customers to access timely liquidity against their gold with confidence, transparency and peace of mind.

From a strategic perspective, the rollout underscores AU SFB’s ability to execute at scale, align branch-led distribution with strong backend capabilities, and design solutions that respond to real customer needs - particularly in semi-urban and rural markets across Tier 2 and Tier 3 cities. By covering 488 pin codes nationwide, the initiative significantly broadens access to gold loans, making financing more accessible for customers across India.

Commenting on the development, Uttam Tibrewal, Deputy CEO, AU Small Finance Bank, said, “Gold has long been a trusted household asset in India, often serving as a financial anchor during moments of need. Through the activation of 501 branches for Gold Loan, our objective is to help customers responsibly unlock the value of this asset through a process that is fast, transparent and dependable. This initiative reflects AU SFB’s long-term commitment to building a strong, scalable and customer-first secured lending franchise across markets.”

Gold loans continue to play a critical role in meeting customers’ short-term liquidity needs, supporting uses ranging from business expansion and agricultural requirements to working capital and personal contingencies, while offering banks a highly secure and stable asset class. For AU SFB, this expansion further strengthens portfolio resilience and supports sustainable, diversified growth.

About AU Small Finance Bank

AU Small Finance Bank Limited (AU SFB) is a Scheduled Commercial Bank and has established itself as India’s largest Small Finance Bank since commencing its banking journey in April 2017. Founded in 1996 by Mr. Sanjay Agarwal, a first-generation entrepreneur, AU enters its 31st year of operations with a legacy of deep-rooted “Dharma” of customer centric service having built, over three decades including more than eight years as a bank, a sustainable and inclusive financial institution that empowers underserved and under-reached communities through a robust retail banking model. AU has received an in-principle approval from RBI to transition to a Universal Bank.

With deep customer insight across India, AU provides comprehensive banking solutions across deposits, loans, credit cards, premium banking, remittance services, merchant solutions, insurance, and investments. As a tech-led bank, AU offers differentiated digital experiences through innovations like 24x7 video banking, WhatsApp Banking, Chatbots, UPI QRs, merchant lending, and its award-winning AU 0101 app.

AU SFB’s wide network of over 2,726 banking touchpoints across 21 States and 4 Union Territories enables service to more than 1.25 crore customers, powered by a workforce of 59,800+ employees. As on 31st Dec’25, Bank has a Shareholders Funds of ₹19,085 Cr, Deposit base of ₹1,38,415 Cr, Total Loan Portfolio of ₹1,29,898 Cr and a Balance sheet size of ₹1.74 Lac Cr+.

Poonawalla Fincorp Launches Gold Loan Business, To Open 400 New Branches

• The company plans to strengthen its presence across Tier 2 and Tier 3 cities by opening 400 new branches in a phased approach over the next four quarters

Poonawalla Fincorp Limited (PFL), a Cyrus Poonawalla Group promoted NBFC focused on Consumer & MSME Lending, has expanded its portfolio of secured lending products with the launch of its Gold Loan Business. This new offering provides a secure, fast, and transparent financing solution for individuals and businesses, catering to diverse financial needs such as business expansion, agriculture costs, and personal expenses.

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.

Commenting on the launch, Mr. Arvind Kapil, MD & CEO, Poonawalla Fincorp, said, “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. At Poonawalla Fincorp, customer asset safety and transparency remains paramount, while delivering reliable and premium services.”

Gold holds significant importance in Indian households as a reliable source of wealth and security, serving as a strategic asset for those needing quick access to funds. The gold loan market in India represents a substantial opportunity, with projections indicating robust growth over the next several years across both urban and rural markets. Other than being a secured business, gold loan offers the strength of low credit risk and resilience during economic uncertainty. PFL is strategically positioned to capture this growing opportunity through its customer-centric approach and commitment to delivering premium services tailored to borrowers' needs.

To strengthen its presence across Tier 2 and Tier 3 cities with a secured product, PFL plans to open 400 new branches in a phased approach over the next four quarters. The company facilitates loan access through its branches and localized outreach, having onboarded industry professionals to provide tailored financial solutions and enhance customer experiences across regions.

Built on the pillars of trust, transparency in valuation, security, and governance-first, PFL’s Gold Loan offers reliable solutions to address customers' financial needs. The company maintains its risk-first approach to delivering timely financial solutions that bridge the credit gap while empowering customers to retain their precious assets. It remains committed to simplifying lending, creating customer delight, and enhancing experiences, which are the company’s top priorities.

Poonawalla Fincorp Limited is headquartered in Pune and is a Cyrus Poonawalla group promoted non-deposit taking systemically important non-banking finance company (ND-SI-NBFC), registered with the Reserve Bank of India (RBI). The Company started operations nearly three decades back and is listed on the BSE Limited (BSE) and the National Stock Exchange of India Limited (NSE).

The Company’s identity “P” stands for Passion, Principles, Purpose, People and Possibilities. The company has widespread coverage across 18 states and 2 Union Territories and has an AUM of approximately ₹35,550 crore as of March 31, 2025. It employs around 2,560+ people as of December 31, 2024. The company’s financial services offerings include pre-owned car finance, personal loans, loans for professionals, business loans, loans against property, machinery loans, education loans, commercial vehicle loans, and shopkeeper loans.

Smart Borrowing: Tips for Optimizing Your Gold Loan Rate

When faced with financial challenges, leveraging assets like gold can be a strategic move to secure a loan. Gold loans offer quick and hassle-free financing solutions, but it's crucial to optimize your gold loan rate to ensure you get the best deal. Here are some smart borrowing tips to help you make the most of your gold assets.

1. Loan-to-Value Ratio (LTV):

One of the key factors influencing your gold loan rate is the Loan-to-Value ratio. LTV is the percentage of the market value of the gold that a lender is willing to offer as a loan. To optimize your gold loan rate, choose a lender that offers a higher LTV. It ensures you can borrow a larger sum while keeping the interest rate competitive.

2. Compare Interest Rates:

Just like any other loan, interest rates on gold loan at home can vary among lenders. Take the time to compare interest rates from different financial institutions. Look for lenders offering the lowest rates while ensuring they provide reliable and transparent services.

3. Loan Tenure:

The loan tenure also plays a crucial role in determining the overall cost of the gold loan. While short tenures may have higher monthly payments, they usually result in lower total interest payments. Evaluate your financial situation and opt for a loan tenure that aligns with your repayment capabilities, striking a balance between affordable monthly installments and minimizing interest payments.

4. Negotiate Processing Fees:

In addition to interest rates, pay attention to processing fees charged by lenders. These fees can add up and cause an impact on the overall cost of the loan. Negotiate with the lender to minimize or waive processing fees, especially if you have a good credit history or are a loyal customer. Some lenders may be willing to accommodate such requests to attract and retain customers.

5. Maintain Good Credit History:

While gold loans are secured by collateral, having a good credit history can still be advantageous. A positive credit history can help you negotiate better interest rates and terms. Lenders may view you as a lower-risk borrower, allowing you to secure a more favorable deal. Check your credit report and address any issues to maintain a healthy credit score.

6. Choose the Right Repayment Plan:

Lenders typically offer various repayment plans, including fixed and flexible options. Understand the terms of each plan and choose the one that goes with your financial goals. Flexible repayment plans can be particularly useful during times of income fluctuations, allowing you to adjust your payments accordingly.

Conclusion:

Optimizing your gold loan rate involves careful consideration of various factors, from the loan-to-value ratio to interest rates and repayment plans. By being proactive, conducting thorough research, and negotiating effectively, you can make the most of your gold assets and secure a loan that meets your financial needs without unnecessary costs. Remember that informed decisions lead to better financial outcomes, ensuring that your gold loan serves as a valuable resource in times of need.