Chennai: Leading NBFC Sundaram Finance is evaluating an entry into the gold loan segment. This is part of its ‘Sundaram 75 Plan’, being executed to mark the 75th year of the Chennai-headquartered company in 2029, as it seeks to diversify into new areas of business.Rajiv Lochan, managing director of Sundaram Finance, said gold loan-based consumption has increased dramatically. “In our conversations with credit bureaus and other institutions, we find that even youngsters pledging gold for consumption purposes is a trend that seems to be emerging. We have evaluated it as part of the Sundaram 75 Plan. We will have to take it to our board and present it. We have looked at a range of possibilities,” he said.Noting that about 98% of its portfolio is in the secured segment, he said the company has evaluated the gold loan business in the past as well. “Our focus over the past 72 years has been to work with small enterprises that are looking to generate a livelihood. In the MSME segment, particularly micro and small enterprises, we do well, and the medium segment is something we are looking at. We evaluated gold loans because they are secured by different forms of collateral.”Murugappa Group’s NBFC Cholamandalam Investment & Finance Company also entered the gold loan business in Q1 FY26, and its gold loan book size is now estimated at about Rs 2,000 crore.Sundaram Finance, which lends to the medium and heavy commercial vehicle (CV), passenger vehicle, construction equipment, tractor, and commercial lending segments, reported a 19% rise in standalone profit after tax (PAT) to Rs 1,834 crore in FY26 from Rs 1,543 crore in FY25. Its net interest income (NII) stood at Rs 3,376 crore in FY26, compared with Rs 2,793 crore in FY25. PAT stood at Rs 608 crore in Q4FY26 (Rs 546 crore in Q4FY25). NII grew 20% to Rs 901 crore.Its disbursements rose 14% to Rs 32,321 crore in FY26, while its Assets Under Management (AUM) stood at Rs 59,908 crore, up 16% year-on-year as of March 2026.
