The NBFC is making gold lending a key part of its Lakshya 2031 strategy. Chief Operating Officer Raju Dodti expects the segment to comfortably exceed the targeted share. The push also supports a broader move towards lending backed by collateral.

L&T Finance entered gold lending through the acquisition of Paul Merchants Finance’s gold loan business in June 2023. The portfolio subsequently increased from ₹1,300 crore to ₹3,829 crore at the close of the first quarter of the current financial year, a rise of nearly 180%.

Its gold loan network had 343 operational branches at the first-quarter close. The company plans to end the financial year with more than 800. Branch expansion is intended to strengthen its reach among customers in rural and semi-urban areas.

The company sees an opportunity in household gold that is not being used to access credit. It expects borrowers to move away from informal moneylenders towards regulated lenders. Alongside gold loans, its secured offerings include housing finance, tractor loans and lending against property.

Secured lending currently represents 56% of its portfolio, with unsecured credit accounting for 44%. The intended split for 2031 is 60:40. L&T Finance also plans to use artificial intelligence and other technology to speed up loan processing while maintaining a strong focus on risk.