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Gold Loans Surge: L&T Finance Eyes 500 New Branches
19 Aug
Summary
- L&T Finance plans to open 500 new gold loan branches this financial year.
- Gold loan business expected to grow over 50% on a low base.
- Organized gold loans projected to exceed Rs 30 lakh crore by March 2028.
L&T Finance intends to open 500 new gold loan branches within the current financial year. This ambitious expansion will considerably increase its existing network of 330 branches, positioning the company to benefit from anticipated sector growth.
The financial institution entered the gold loan segment last year following its acquisition of Paul Merchants Finance's gold loan business. This strategic move enabled L&T Finance to secure a substantial loan book and operational infrastructure.
Gold loans are identified as a crucial element in L&T Finance's growth strategy, aligning with its transformation into a tech- and AI-focused retail financial services provider. The company anticipates its gold loan business to experience over 50% expansion, building upon a modest starting point.
Industry projections from ICRA indicate that organized gold loans are expected to grow at a compound annual growth rate exceeding 30% between fiscal years 2026-27 and 2027-28. This growth trajectory is set to elevate the market size from Rs 18.5 lakh crore to over Rs 30 lakh crore by March 2028.
