L&T Finance Ltd. Scales Gold Loan: L&T Finance Ltd. (LTF), formerly known as L&T Finance Holdings Ltd., has announced a major milestone in its retail expansion journey by doubling its dedicated gold loan branch network to over 260 branches across India. The rapid scale-up comes within just eight months of entering the gold finance business through an acquisition in June 2025.
The company began its gold loan journey with 130 branches acquired as part of a strategic deal. Since then, it has added more than 130 new branches, effectively matching its acquired footprint in less than a year. This high-speed expansion signals LTF’s strong intent to become a key player in India’s secured lending segment.
Rapid Expansion Under “Lakshya” Strategy
The expansion is aligned with LTF’s broader transformation roadmap under its “Lakshya” strategy, which aims to reposition the company as a digitally enabled, customer-centric retail finance powerhouse.
According to Mr. Raju Dodti, Chief Operating Officer of LTF, the company’s ability to add nearly one branch per day over recent months reflects operational agility and strategic clarity.
He noted that the expansion is not just about increasing physical presence but about building a robust ecosystem centered on trust, security, and customer convenience. The branch rollout has been supported by advanced security systems, standardised processes, and a trained workforce specialising in gold loan operations.
By doubling its branch network in record time, LTF has demonstrated a high-velocity growth approach in India’s competitive gold loan market.
Geographic Diversification Across India
LTF’s gold loan business now spans 18 States and Union Territories, marking a significant geographic footprint across North, West, East, and South India.
The company has strategically expanded into states including:
- Assam
- Karnataka
- Telangana
- Maharashtra
- Odisha
- West Bengal
- Himachal Pradesh
- Rajasthan
This broad-based expansion allows LTF to de-risk its portfolio through geographic diversification while capturing rising demand for secured retail credit.
Gold loans remain one of the fastest-growing segments within India’s NBFC space, driven by increasing gold prices, rural liquidity needs, and demand for short-term secured credit.
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Strategic Play in Secured Lending
Gold loans are considered a relatively low-risk lending product due to their secured nature. With gold acting as collateral, lenders benefit from lower credit risk compared to unsecured loans.
By expanding aggressively in this segment, LTF is strengthening its secured retail portfolio. The move also complements the company’s “Right to Win” strategy, which focuses on participating in businesses where it can achieve scale and sustainable profitability.
The rapid addition of branches ensures:
- Improved customer accessibility
- Faster loan disbursement
- Enhanced local market penetration
- Better operational control
Physical proximity remains a critical factor in gold loan operations, as customers prefer local branches for collateral pledging and servicing.
Integration of Digital and Physical Infrastructure
While physical expansion is central to the strategy, LTF is simultaneously integrating digital capabilities to enhance customer experience.
The company emphasises:
- Rapid turnaround times
- Flexible credit solutions
- Digitally streamlined processes
- Seamless onboarding
This hybrid model—combining physical branches with digital agility—aims to modernise the traditional gold loan experience.
By embedding technology into its branch network, LTF seeks to reduce paperwork, improve operational efficiency, and enhance transparency.
Strong Financial and Credit Profile
Headquartered in Mumbai, LTF is one of India’s leading Non-Banking Financial Companies (NBFCs). The company has earned the highest ‘AAA’ credit rating from four major domestic rating agencies.
Internationally, the company’s credit standing has also strengthened:
- In August 2025, S&P Global Ratings upgraded LTF’s long-term Issuer Credit Rating to “BBB/Stable” from “BBB-/Positive.”
- Its short-term issuer credit rating was upgraded to “A-2” from “A-3.”
- Fitch Ratings assigned Long-Term Foreign and Local-Currency Issuer Default Ratings of “BBB-” with a Stable outlook.
These ratings reinforce LTF’s strong capital position, disciplined risk management, and operational stability—factors critical for scaling secured lending businesses like gold loans.
ESG Focus and Workplace Recognition
Beyond financial performance, LTF has received recognition for its sustainability and governance practices. The company has earned leadership scores from both global and national ESG rating agencies.
It has also been certified as a Great Place To Work®, reflecting its focus on employee engagement and workplace culture.
Additionally, LTF’s flagship CSR initiative, Digital Sakhi, has gained recognition for promoting women’s empowerment, digital literacy, and financial inclusion.
By integrating ESG principles into its growth strategy, LTF aims to build a socially responsible retail finance model.
Lakshya 2026: The Bigger Vision
The gold loan expansion forms a key component of LTF’s Lakshya 2026 roadmap. The strategic pillars include:
- Transitioning from product-centric to customer-centric operations
- Building a high-quality retail portfolio
- Leveraging technology to create “Fintech@Scale”
- Maintaining ESG as a core foundation
With a customer database exceeding 2.8 crore, LTF plans to leverage analytics for cross-selling, up-selling, and acquiring new customers.
The rapid scaling of gold loan branches aligns with the broader goal of strengthening the retail business and enhancing secured asset quality.
Competitive Positioning in the Gold Loan Market
India’s gold loan market is highly competitive, with several NBFCs and banks operating in the segment. However, LTF’s strategy of combining geographic diversification, strong credit ratings, operational excellence, and digital integration may provide it with a competitive edge.
The company’s focus on state-of-the-art security systems and specialised workforce training further enhances operational reliability—critical factors in gold-backed lending.
By aggressively expanding while maintaining disciplined underwriting standards, LTF aims to capture market share without compromising asset quality.
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Conclusion
L&T Finance Ltd.’s expansion to over 260 gold loan branches within eight months marks a significant milestone in its retail transformation journey. By doubling its branch network in record time, the company has demonstrated strategic agility and execution capability.
The expansion not only strengthens LTF’s position in India’s secured credit landscape but also aligns with its long-term Lakshya 2026 roadmap. With strong credit ratings, ESG recognition, digital integration, and a growing customer base, LTF appears well-positioned to consolidate its presence in the gold loan segment.
As demand for secured retail credit continues to rise across India, LTF’s aggressive yet structured branch expansion strategy could play a pivotal role in shaping its next phase of growth.
