L&T Finance, a major non-banking financial company (NBFC), announced plans to open 500 new gold loan branches during the current financial year. The aggressive expansion will more than double its dedicated gold loan branch network from 330 branches as of March 31, 2026.
1. Strategic Growth Drivers & Financial Targets
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Outpacing Enterprise Growth: While L&T Finance targets an overall enterprise-level growth rate of over 20%, its gold loan portfolio is projected to surge by more than 50%.
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Transition to Retail-First NBFC: The initiative aligns with L&T Finance’s broader strategy to position itself as a “risk-first, tech-first, and AI-native” retail financial institution, according to Chief Operating Officer Raju Dodti.
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Inorganic Entry Foundation: L&T Finance built its gold loan footprint following last year’s ₹537-crore all-cash acquisition of the gold loan division of Paul Merchants Finance, which brought in 130 branches, 700 employees, and an existing ₹1,350-crore loan book.
2. Industry Tailwinds: Organised Gold Loan Market Boom
The expansion comes as ratings agency ICRA forecasts unprecedented demand across the organized gold loan sector:
| Parameter | Projection / Trajectory |
| Sector CAGR (FY27–FY28) | Projected to grow at >30% CAGR over the next two fiscal years. |
| Total Addressable Market (TAM) | Projected to exceed ₹30 lakh crore by March 2028 (up from ₹18.5 lakh crore in March 2026). |
| Key Catalysts | Rising gold prices, increasing credit access demand in tier-2/3 cities, and higher collateralized borrowing efficiency. |
