L&T Finance to add 500 gold loan branches a year, targets 2,500–3,000 outlets as portfolio surges 182%

L&T Finance plans to add at least 500 dedicated gold loan branches annually over the next four to five years, taking its network to 2,500-3,000 branches, a senior company official said on Wednesday.

The company, which currently has 343 active gold loan branches, expects to reach 800 branches by the end of the current financial year, L&T Finance Whole-time Director and Chief Operating Officer Raju Dodti said.

"Our gold finance business, which we acquired from a Chandigarh-based company in June 2025, started with 130 branches acquired at that time. By March 2026, we established an additional 200-plus branches.

"Over the next 4 to 5 years, we plan to set up a minimum of 500 gold finance branches every year. The idea is that over 5 years, we will have between 2,500 and 3,000 branches," he said.

Dodti was speaking to reporters here after the launch of the company's new Gold Loan campaign featuring cricketer Jasprit Bumrah.

He said the expansion would cover all regions of the country.

"We will focus more on the east, then the west, then the south, and then the north. But at the same time, whenever we undertake expansion, we must ensure it happens as quickly as possible without strictly restricting ourselves to finishing one region before moving to another," he added.

Gujarat is expected to see around 50-60 new gold loan branches annually, he said.

"Out of the 500 annual branches, a minimum of 100 branches will be allocated to the West region. So, Gujarat will see around 50 to 60 branches added annually," Dodti said, adding that the exact state-wise allocation would depend on market dynamics.

As of June 2026, L&T Finance's gold finance book stood at around ₹3,800 crore against its total loan book of Rs 1.29 lakh crore, he noted.

Its gold loan portfolio grew 182 per cent year-on-year to Rs 3,829 crore in Q1 FY27 from ₹1,360 crore in Q1 FY26, according to the company.

Dodti said the company expected its overall loan book to grow at 20-25 per cent annually, and gold finance could expand at more than 50 per cent.

"For gold finance specifically, we anticipate an annualised growth rate upward of 50 per cent to 60 per cent, driven by the rapid expansion of our branch footprint," he said.

He said there is considerable room for growth in India's formal credit market, pointing to the country's credit-to-GDP ratio.

"Credit growth is currently running at almost 19 per cent, whereas real economic growth (based on recent Q1 data) is around 7.8 per cent. It is well established that credit expansion is outpacing GDP growth," Dodti said.

The official also highlighted the opportunity in the gold loan market, saying India holds around 28,000 tonnes of household gold, of which only around 8 per cent is monetised.

"The total gold loan market is around ₹20-21 lakh crore. There is significant scope for organised lenders and banks to capture market share from the informal market," he said.

Asked why customers opt for gold loans despite their interest rates being higher than home loans, Dodti said the specialised infrastructure required for gold lending raises operating costs.

"In gold loans, setting up branches and maintaining high-security storage drives up capital expenditure and operating costs, which are reflected in the rates," he said.

The company said its new campaign aims to promote gold loans among individuals, micro-entrepreneurs and households.

According to an L&T Finance study in Ahmedabad, 53 per cent of respondents expressed interest in taking a gold loan, with 23 per cent looking at home improvements and 21 per cent each for starting a new business and buying a two-wheeler.

The campaign is being rolled out across key markets in eight states and a Union Territory through around 150 L&T Finance branches, the company said.