BankBazaar collaborates with Muthoot FinCorp to launch digital gold loans; details here
During the D2 round of fundraising, BankBazaar.com successfully raised Rs 55 crore, resulting in a company valuation of Rs 1,700 crore. Of this amount, Muthoot FinCorp's investment of Rs 15 crore secured them a 1% stake in the fintech firm, with the remaining Rs 40 crore coming from existing investors.


- Apr 23, 2025,
- Updated Apr 23, 2025 2:29 PM IST
BankBazaar.com has made a strategic move into the secured lending sector by partnering with Muthoot FinCorp to launch a digital-first gold loan product. This collaboration combines the expertise of a 138-year-old conglomerate with the technological prowess of a 17-year-old fintech platform. As part of this venture, Muthoot FinCorp has also invested in BankBazaar’s Series D2 funding round, thereby strengthening their financial and operational alliance.
The partnership aims to provide quick and secure gold loans by merging BankBazaar’s digital capabilities with Muthoot FinCorp’s extensive operational infrastructure. BankBazaar will oversee digital onboarding, marketing, and customer engagement, while Muthoot FinCorp will manage KYC, valuation, disbursal, and storage. This integration seeks to address the predominantly informal gold loan market in India, where approximately 65% of loans are still provided by unregulated lenders.
In the collaboration between NBFC and FinTech sector, Muthoot FinCorp has contributed Rs 15 crore to BankBazaar's ongoing Series D2 round as an equity investor, in order to enhance the digital platform.
During the D2 round of fundraising, BankBazaar.com successfully raised Rs 55 crore, resulting in a company valuation of Rs 1,700 crore. Of this amount, Muthoot FinCorp's investment of Rs 15 crore secured them a 1% stake in the fintech firm, with the remaining Rs 40 crore coming from existing investors.
"Gold loans, being counter-cyclical to unsecured credit, will diversify our portfolio and strengthen our offerings. BankBazaar's consumers will gain seamless digital access to Muthoot FinCorp's high-quality, fully compliant gold loan products," Adhil Shetty, CEO of BankBazaar.com said.
Muthoot FinCorp's involvement goes beyond operational roles, as the company has also made a financial commitment to BankBazaar by participating in its ongoing Series D2 funding round. This investment reflects Muthoot FinCorp's confidence in the digital transition of gold loans. Shaji Varghese, CEO of Muthoot FinCorp, commented: "Leveraging BankBazaar’s customer base and analytics, we aim to ensure more inclusive credit access." The collaboration is designed to create a seamless "phygital" experience, ensuring same-day loan disbursal, thereby enhancing customer satisfaction and operational efficiency.
The Indian gold loan market is largely informal, with a significant portion of loans offered by unregulated entities. Pankaj Bansal, CBO at BankBazaar.com, highlighted the need for change: "India’s gold loan market remains largely informal. Our goal is to offer fair, secure, and digitally accessible products backed by Muthoot FinCorp’s gold lending legacy." This initiative seeks to provide secure, high-valuation gold loan options backed by a regulated Non-Banking Financial Company (NBFC), ensuring transparency and security for borrowers.
BankBazaar has reported a 62.5% growth in co-branded credit cards in FY24 and anticipates a 46% annual revenue growth from FY22 to FY25. The company is on track to achieve full-year EBITDA profitability in FY25. With recent investments, BankBazaar’s cumulative equity funding has reached $116 million. The collaboration with Muthoot FinCorp not only strengthens BankBazaar's position in the fintech market but also signifies a step towards formalising the gold loan sector in India, offering regulated and secure lending options to a wider audience.
RBI gold loan norms
On April 9, the RBI released draft comprehensive guidelines on gold loans. According to the proposed norms, lenders are prohibited from offering advances against primary gold/silver or financial assets supported by primary gold/silver such as units of Exchange-traded funds (ETFs) or units of mutual funds. The maximum loan-to-value (LTV) ratio for consumption gold loans should not exceed 75% of the gold's value.
The guidelines stated that the gold collateral must not be concurrently used for both income-generating purposes and consumption loans. Lenders are required to refrain from providing loans against collateral with uncertain ownership and must maintain records of collateral ownership verification. The tenor of consumption loans, specifically bullet repayment loans where both principal and interest are due at maturity, should not exceed 12 months, as per the RBI's directive.
What do these norms mean
The proposed changes in the new regulations focus on categorizing gold and silver loans based on their intended use, distinguishing between loans for income generation, such as credit for agriculture or small businesses, and loans for personal consumption.
It is mandated that the same gold collateral cannot be utilized simultaneously for both income-generating and consumption loans. Lenders are required to classify income-generating loans based on their purpose rather than simply as gold loans on their balance sheets.
Additionally, the central bank has set a maximum repayment period of 12 months for consumption gold loans with bullet or lump sum repayments for banks. Co-operative and regional rural banks are limited to a loan amount of up to Rs 5 lakh per borrower for such loans.
The loan-to-value (LTV) ratio for gold loans provided by non-banking financial companies (NBFCs) and for consumer loans offered by banks will now be limited to 75%. While banks currently set their own LTV ratios for agriculture-based gold loans, this practice is expected to remain in place for all gold loans intended for generating income.
BankBazaar.com has made a strategic move into the secured lending sector by partnering with Muthoot FinCorp to launch a digital-first gold loan product. This collaboration combines the expertise of a 138-year-old conglomerate with the technological prowess of a 17-year-old fintech platform. As part of this venture, Muthoot FinCorp has also invested in BankBazaar’s Series D2 funding round, thereby strengthening their financial and operational alliance.
The partnership aims to provide quick and secure gold loans by merging BankBazaar’s digital capabilities with Muthoot FinCorp’s extensive operational infrastructure. BankBazaar will oversee digital onboarding, marketing, and customer engagement, while Muthoot FinCorp will manage KYC, valuation, disbursal, and storage. This integration seeks to address the predominantly informal gold loan market in India, where approximately 65% of loans are still provided by unregulated lenders.
In the collaboration between NBFC and FinTech sector, Muthoot FinCorp has contributed Rs 15 crore to BankBazaar's ongoing Series D2 round as an equity investor, in order to enhance the digital platform.
During the D2 round of fundraising, BankBazaar.com successfully raised Rs 55 crore, resulting in a company valuation of Rs 1,700 crore. Of this amount, Muthoot FinCorp's investment of Rs 15 crore secured them a 1% stake in the fintech firm, with the remaining Rs 40 crore coming from existing investors.
"Gold loans, being counter-cyclical to unsecured credit, will diversify our portfolio and strengthen our offerings. BankBazaar's consumers will gain seamless digital access to Muthoot FinCorp's high-quality, fully compliant gold loan products," Adhil Shetty, CEO of BankBazaar.com said.
Muthoot FinCorp's involvement goes beyond operational roles, as the company has also made a financial commitment to BankBazaar by participating in its ongoing Series D2 funding round. This investment reflects Muthoot FinCorp's confidence in the digital transition of gold loans. Shaji Varghese, CEO of Muthoot FinCorp, commented: "Leveraging BankBazaar’s customer base and analytics, we aim to ensure more inclusive credit access." The collaboration is designed to create a seamless "phygital" experience, ensuring same-day loan disbursal, thereby enhancing customer satisfaction and operational efficiency.
The Indian gold loan market is largely informal, with a significant portion of loans offered by unregulated entities. Pankaj Bansal, CBO at BankBazaar.com, highlighted the need for change: "India’s gold loan market remains largely informal. Our goal is to offer fair, secure, and digitally accessible products backed by Muthoot FinCorp’s gold lending legacy." This initiative seeks to provide secure, high-valuation gold loan options backed by a regulated Non-Banking Financial Company (NBFC), ensuring transparency and security for borrowers.
BankBazaar has reported a 62.5% growth in co-branded credit cards in FY24 and anticipates a 46% annual revenue growth from FY22 to FY25. The company is on track to achieve full-year EBITDA profitability in FY25. With recent investments, BankBazaar’s cumulative equity funding has reached $116 million. The collaboration with Muthoot FinCorp not only strengthens BankBazaar's position in the fintech market but also signifies a step towards formalising the gold loan sector in India, offering regulated and secure lending options to a wider audience.
RBI gold loan norms
On April 9, the RBI released draft comprehensive guidelines on gold loans. According to the proposed norms, lenders are prohibited from offering advances against primary gold/silver or financial assets supported by primary gold/silver such as units of Exchange-traded funds (ETFs) or units of mutual funds. The maximum loan-to-value (LTV) ratio for consumption gold loans should not exceed 75% of the gold's value.
The guidelines stated that the gold collateral must not be concurrently used for both income-generating purposes and consumption loans. Lenders are required to refrain from providing loans against collateral with uncertain ownership and must maintain records of collateral ownership verification. The tenor of consumption loans, specifically bullet repayment loans where both principal and interest are due at maturity, should not exceed 12 months, as per the RBI's directive.
What do these norms mean
The proposed changes in the new regulations focus on categorizing gold and silver loans based on their intended use, distinguishing between loans for income generation, such as credit for agriculture or small businesses, and loans for personal consumption.
It is mandated that the same gold collateral cannot be utilized simultaneously for both income-generating and consumption loans. Lenders are required to classify income-generating loans based on their purpose rather than simply as gold loans on their balance sheets.
Additionally, the central bank has set a maximum repayment period of 12 months for consumption gold loans with bullet or lump sum repayments for banks. Co-operative and regional rural banks are limited to a loan amount of up to Rs 5 lakh per borrower for such loans.
The loan-to-value (LTV) ratio for gold loans provided by non-banking financial companies (NBFCs) and for consumer loans offered by banks will now be limited to 75%. While banks currently set their own LTV ratios for agriculture-based gold loans, this practice is expected to remain in place for all gold loans intended for generating income.