L&T Finance enter into the Gold Loan business

L&T Finance Limited has announced its entry into the gold loan business through the proposed acquisition of Paul Merchants Finance Pvt. Ltd.’s (PMFL) gold loan business undertaking. The gold loan franchise will be an addition to LTF’s portfolio of secured loan products

The proposed acquisition includes a fully operational network and security center for 24/7 remote monitoring of all gold loan branches, strategically located in less penetrated markets like Chandigarh, Punjab, Haryana, Delhi, Rajasthan, Gujarat, Madhya Pradesh, and Uttarakhand. It also brings approximately 700 employees and 130 branches.

This is an all-cash deal with a lumpsum consideration of Rs. 537 crore along with certain adjustments to be done till closing, on a slump sale basis. The agreement is subject to necessary approvals and the fulfillment of all conditions precedent to closing. The business transfer is expected to close by the second quarter of the financial year 2025-26.

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Speaking on this occasion, Mr. Sudipta Roy, Managing Director & CEO of LTF said, “We are committed to delivering sustainable growth and attractive returns, and this proposed acquisition is a significant step in that direction. The gold loan business undertaking will fill the gap of a secured high-yield product in our portfolio in both rural and urban. This aligns with our Lakshya 2026 strategy, which focuses on growing our customer base. It accelerates our gold loan business time-to-scale by 36 months, providing approximately Rs.1,000 crore in assets under management and over 98,000 active customers in an easily integrable business profile.”