L&T Finance’s ₹537 Cr Gold Loan Expansion: A Strategic Leap into High-Yield Lending

L&T Finance Ltd. has officially completed the acquisition of Paul Merchants Finance’s gold loan business, marking its entry into the high-yield secured lending sector. The ₹537 crore deal, structured as a slump sale, provides L&T Finance access to 98,000 customers, 700 employees, and 130 branches across 11 states, strengthening its retail finance portfolio.

 

Key Highlights:

 

L&T Finance acquires Paul Merchants Finance’s gold loan business for ₹537 crore.

 

Expands footprint with 130 branches across Chandigarh, Punjab, Haryana, Delhi, Rajasthan, Gujarat, MP, and Uttarakhand.

 

Gold loan segment expected to accelerate time-to-scale by 36 months.

 

Strategic move aligns with L&T Finance’s Lakshya 2026 growth plan.

 

CEO Sudipta Roy emphasizes sustainable growth and attractive returns.

 

The acquisition positions L&T Finance as a major player in India’s gold loan market, complementing its existing secured lending portfolio.

 

Source: CNBC TV18 | L&T Finance Press Release | Moneycontrol