L&T Finance to make gold loan biz foray with Rs 537 crore PFML buy

L&T Finance Ltd. (LTF) is entering into the gold loan business through the acquisition of Paul Merchants Finance (PMFL) gold loan portfolio in an all-cash deal for a consideration of Rs 537 crore.

 

The agreement is subject to necessary approvals and the fulfilment of all conditions precedent to closing.

 

The business transfer is expected to close by second quarter of the financial year 2026 (Q2FY26), the lender said in a statement, adding that the acquisition accelerates 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.

   

“It also brings approximately 700 employees and 130 branches across states,” the lender said.

 

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 centre for 24/7 remote monitoring of all gold loan branches located in less penetrated markets like Chandigarh, Punjab, Haryana, Delhi, Rajasthan, Gujarat, Madhya Pradesh, and Uttarakhand, it added.

 

Sudipta Roy, MD&CEO, LTF said, “The gold loan business undertaking will fill the gap of a secured high yield product in our portfolio in both rural and urban.”