Making its entry into the gold loan business, L&T Finance has signed an agreement to acquire the gold loan business of Paul Merchants Finance on a slump sale basis for ₹537 crore in an all-cash deal.
The proposed acquisition includes a fully operational network and security centre for round-the-clock 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 has around 700 employees and 130 branches.
The gold loan franchise will be an addition to LTF’s portfolio of secured loan products, the company said.
The business transfer is expected to close by the second quarter of the financial year FY26. “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 ₹1,000 crore in assets under management and over 98,000 active customers in an easily integrable business profile,” said Sudipta Roy, Managing Director & CEO of LTF.
The gold loan business complemented its existing portfolio and allowed it to capitalise on the significant overlap with its current customer base of Rural Group Loan and Micro Finance operations. “We are confident that this will be a key driver of future profitability,” said Roy.
