Expressnews
Chennai, 30th March 2026: 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 launch of two exclusive Gold Loan branches in Tiruppur and Pallavaram in Tamil Nadu, strengthening its secured lending footprint in Southern India.
The Bank’s exclusive gold loan branches are designed to serve MSMEs and exporters, offering competitive interest rates, RBI-compliant loan-to-value ratios, quick and transparent gold valuation, and simplified, customer-friendly processes. AU SFB’s branch-led model combines speed and convenience with the trust and transparency of a regulated banking institution.
The newly launched branches are strategically located to cater to the unique financial needs of the respective markets. Tiruppur, a major textile and export hub, is home to cash flow-driven businesses with frequent short-term liquidity requirements. Entrepreneurs in the region often rely on gold-backed financing, repeatedly pledging gold rather than opting for unsecured credit, particularly among MSMEs and exporters. Whereas, Pallavaram, a fast-growing suburb of Chennai, is characterised by a dense residential and trading population, along with a strong cultural affinity towards gold ownership.
As per an industry report (January 2026), India’s gold loan portfolio stands at ₹15.6 lakh crore, with the top 10 states; including Tamil Nadu accounting for 90.8% of the total. Tamil Nadu alone recorded a strong year-on-year growth of 40.5% in gold loans, reflecting robust demand and customer trust in the product category.
Key features of AU SFB’s Gold Loan branches include:
· Exclusive focus on loans against gold ornaments
· Dedicated infrastructure with specialised staff
· Secure storage and handling of pledged gold
· Strong compliance and risk management frameworks
Speaking at the occasion, Uttam Tibrewal, ED & Deputy CEO, AU Small Finance Bank, said,
“In Tamil Nadu, gold is not just an asset, it is a trusted financial fallback for families, traders, and small businesses. Our exclusive Gold Loan branches are designed to respect that relationship by offering customers speed, transparency, and complete peace of mind. Through our presence in Tiruppur and Pallavaram, we are bringing reliable, bank‑led gold finance closer to customers who value security, fair valuation, and quick access to funds for both business and household needs.”
This development follows the Bank’s recent rollout of dedicated Gold Loan branches in Jamnagar and Junagadh in Gujarat, as well as Parkal, Huzurabad, Khammam, and Vemulawada in Telangana, further reinforcing its growing national presence in the segment. AU SFB plans to further expand its Gold Loan branch network across Karnataka and Maharashtra by March 31, 2026.
