BankBazaar, Muthoot FinCorp Partner to Launch Digital Gold Loans

23 Apr 2025 , 01:50 PM

BankBazaar.com has entered the secured lending space through a strategic partnership with Muthoot FinCorp, launching a digital-first gold loan product. Under the agreement, Muthoot FinCorp has made an investment in BankBazaar’s ongoing Series D2 funding round, exhibiting robust faith in the fintech company’s expansion plan.

The alliance focuses on integrating BankBazaar’s digital platform with the gold loan acumen of Muthoot FinCorp to offer instant, secure gold loans through a phygital (physical + digital) model.

BankBazaar will handle digital onboarding, marketing, and customer interaction, while Muthoot FinCorp will handle KYC, gold valuation, disbursal, and physical storage.

The product is set to facilitate same-day disbursal of gold loans, supported by compliance, security, and high loan-to-value (LTV) ratios. The launch of the gold loan is a major diversification step, increasing access to digitally available and regulated lending products, says BankBazaar CEO Adhil Shetty.

Muthoot FinCorp CEO Shaji Varghese also pointed to the vision of leveraging BankBazaar’s analytics and online customer base for delivering wider access to inclusive credit.

The firms envision capitalizing on India’s underpenetrated gold loan segment, where almost 65% of loans are still being provided by unregulated channels.

Pankaj Bansal, Chief Business Officer at BankBazaar.com, reiterated that the focus is to substitute informal credit with safe, fair-value gold loan products that are backed by Muthoot FinCorp’s well-established gold lending expertise.

BankBazaar has already demonstrated strength in its digital finance products, with a 62.5% YoY growth in co-branded credit cards in FY24. The company is anticipating a 46% compound annual revenue growth (CAGR) from FY22 to FY25 and is likely to be EBITDA profitable in FY25. With the recent funding by Muthoot FinCorp, BankBazaar has raised ₹55 crore in its Series D2 round, taking its aggregate equity funding to $116 million.