Kolkata: L&T Finance Ltd has set a target for its gold loan segment to contribute more than 10% to its total loan book over the next five years, compared with about 3% at present. To scale up the gold loan business, the NBFC plans to set up at least 500 new branches each year till 2031.“I will not be surprised if the gold loan portfolio will be upward of 10% of the loan book in 2031,” L&T Finance chief operating officer Raju Dodti said. L&T Finance entered the gold loan business through the acquisition of the gold loan business of Paul Merchants Finance (PMFL), a subsidiary of Paul Merchants. The acquisition was completed in June 2025.“When we acquired it, the gold loan book size was just around Rs 1,300 crore. We had almost 180% growth in the last one year,” Dodti said. At the end of the first quarter of this fiscal, the gold loan book size stood at Rs 3,829 crore.For the NBFC, the present secured and unsecured portfolio mix stands at 56:44. With the growth of its gold loan book, the company plans to increase its secured business. “By 2031, the secured and unsecured mix should be in the range of 60:40. That is what we would like it to be,” Dodti said.
