L&T Finance

What L&T Finance does

L&T Finance Limited (formerly L&T Finance Holdings Limited) is an Indian non-banking financial company and listed subsidiary of Larsen & Toubro Limited, headquartered in Mumbai (CIN L67120MH2008PLC181833, ticker LTF on NSE/BSE). Incorporated in 2008, the company pivoted from wholesale and infrastructure financing to a retail-led model roughly three to four years ago and now serves over 30 million customers across urban and rural India through eight core product lines: home loans, personal loans, two-wheeler loans, business loans (including specialised doctor, chartered-accountant, and professional variants), rural and microfinance loans (group loans Vikaas, Vishwas, Pragati plus micro LAP), farmer and agriculture loans (tractor, agri-implement, warehouse-receipt finance), loan against property, and gold loans (Shreyas, Sahaj, Sudarshan, Swarnim variants). It also acts as a Corporate Agent (IRDAI CA0867) distributing life, health, and general insurance for seven carrier partners.

The technology stack is anchored by the digital-first Planet App and a proprietary AI underwriting layer comprising Cyclops (underwriting engine), Helios (underwriting assistant), and Nostradamus (portfolio intelligence system), with quantified management claims that Cyclops reduced credit losses to one-third in tested portfolios. Additional capabilities include agentic AI for multilingual customer engagement across 11 Indian languages and exploratory work on quantum algorithms for portfolio optimization, operating under a dedicated Chief AI Data Officer (Dr. Debarag Banerjee).

L&T Finance generates revenue primarily through interest income on its Rs 1.3 trillion loan book (Q1FY27, +27% YoY), supplemented by processing fees of up to 2% across products, insurance distribution commissions, and ancillary fees. Q1FY27 delivered net interest income of Rs 2,920 crore (+28% YoY) and net profit of Rs 900 crore (+29% YoY) at a 38.7% cost-to-income ratio, with growth targets of 25–30% annually through FY28 and ROA/ROE goals of 2.6% and 15% respectively. The go-to-market blends direct digital origination, a physical branch network being expanded by 500 gold-loan branches in FY27, partner and agent channels via Partner Planet, and co-lending / embedded-lending arrangements with fintech partners. Pricing varies materially by product and risk profile — home loans from 7.75% p.a., business loans 10–15% p.a., LAP from 8.99% p.a., and rural group loans 16–23.90% p.a. on reducing balance.

Name

L&T Finance

Legal name

L&T Finance Limited (formerly known as L&T Finance Holdings Limited)

Website

https://ltfinance.com

Company type

Public

Founded year

2008

Operating status

Operating

Headcount range

10,001+ employees

Short description

L&T Finance Limited is an Indian NBFC subsidiary of Larsen & Toubro serving 30M+ customers with retail and rural lending — home loans, personal loans, gold loans, microfinance, farmer financing, and insurance distribution — via digital, branch, and partner channels.

Ownership category

akta.pro rank

Product category

Retail Lending / Non-Banking Financial Services

NAICS

Sales Financing (52222)

SIC

Short-Term Business Credit Institutions (6153)

akta.pro industry

PRIMARYFSAKAGAD

Merchant Cash Advance (MCA) & Revenue-Based Financing

Financial & Insurance/Lending & Consumer Finance/Small Business & Microenterprise Lending

SECONDARYFSABAHAE

Distributor & Dealer Finance (Channel Financing)

Financial & Insurance/Banking (Commerical, Retail & Consumer)/Trade Finance & Supply Chain Banking

Keywords

• Retail lending services
• Non-banking financial company
• Consumer loan products
• Rural microfinance lending
• Gold loan financing

Headquarters

HQ city

Mumbai

HQ country

India

HQ region

Asia

Offices1 record

Markets served

GTM type

B2B and B2C

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Marketing or Sales, Infrastructure

Revenue model

1. Interest Income from Loan Portfolio: L&T Finance generates primary revenue from interest income on its diversified loan portfolio including home loans, personal loans, business loans, gold loans, rural loans, farmer loans, and loans against property. The company reported Q1FY27 net interest income of Rs 2,920 crore with 28% year-on-year growth, and loan book of Rs 1.3 trillion expanding 27%.
2. Insurance Distribution Commission: L&T Finance operates as a Corporate Agent (IRDAI Registration No. CA0867) for soliciting and procuring General, Health, and Life Insurance business. The company earns commission revenue by distributing insurance products from partners including ICICI Lombard, ICICI Prudential, Manipal Cigna, Care Health Insurance, Star Health, HDFC Ergo, and Go Digit.
3. Processing and Other Fees: Revenue generated from processing fees, prepayment charges, foreclosure charges, and other loan-related fees across various loan products. The company charges processing fees up to 2% on various loan products plus applicable taxes.

Pricing tiers

Go-to-market motion3 records

Distribution channels5 records

Marketing channels7 records

Core offering

L&T Finance is a non-banking financial company (NBFC) offering a diversified portfolio of retail lending products including home loans, personal loans, two-wheeler loans, business loans, rural group loans, farmer loans, loan against property, and gold loans. The company also distributes insurance products (life, health, and general) through partnerships with multiple insurers and operates the Planet digital platform for loan management and EMI payments across urban and rural India.

Product overview

L&T Finance operates as an NBFC offering a comprehensive suite of lending products organized around a digital-first strategy through its Planet App platform. The core product portfolio includes eight primary loan categories: Home Loans (with balance transfer, top-up, and spoorthi variants), Personal Loans (including vacation, wedding, and education sub-products), Two Wheeler Loans (covering electric and conventional bikes), Business Loans (with specialized variants for doctors and chartered accountants), Rural Business Finance (group loans for rural communities including Vikaas, Vishwas, and Pragati Loans), Farmer Loans (tractor, agri-implement, and warehouse financing), Loan Against Property (residential and commercial mortgage loans), and Gold Loans (with Shreyas, Sahaj, Sudarshan, and Swarnim variants ranging from Rs 5,000 to Rs 1 Crore). The company also distributes insurance products (life, health, and general) through partnerships with major insurers and operates utility tools including EMI calculators, credit score services, and a rural marketplace. L&T Realty, a subsidiary, manages real estate development projects across major Indian cities.

Differentiator

Problem solved

Functional benefit

Brands

• Planet: Mobile application for loan management, EMI payments, and customer engagement
• L&T Realty
• Cyclops
• Helios
• Nostradamus
• L&T Realty

Products and services

• Home Loan

Quantifiable outcome

• Credit losses reduced to one-third of previous levels in tested portfolios using Cyclops underwriting engine
• +5 more outcomes

Named customers7 records

Segments8 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

AI capability6 records

Feature5 records

Partnerships

Twelve partnerships are on record, tiered minor and core.

• SAR TeleventureminorStrategic or Co-development Partner · 6 September 2025SAR Televenture acquired an additional 19.93% stake in Tikona Infinet from L&T Finance for Rs 149.50 crore as part of a regulatory-approved transaction. L&T Finance divested its stake as part of exiting the Tikona investment.
• Fintech and NBFC Ecosystem (BharatPe, Paytm, Poonawala Fincorp)minorStrategic or Co-development Partner · 16 August 2025L&T Finance is part of the broader fintech/NBFC ecosystem anticipating revival in unsecured lending during FY26 after regulatory easing. Companies reported positive June quarter results and expressed optimistic outlooks for H2, with gradual recovery expected in unsecured credit.
• Cornerstone (Land Development Company)minorOthers · 17 June 2025Cornerstone, a Bengaluru-based land holding company, was in a financial dispute with L&T Finance over loans classified as NPA. The company planned to raise Rs 1,700 crore from Kotak Alternate Asset Managers and land sale to resolve the dispute stemming from loans sanctioned between 2017 and 2019.
• Tikona Infinet (Under Insolvency)minorOthers · 11 May 2025L&T Finance filed an insolvency petition against Tikona Infinet over Rs 116.01 crore default on coupon payments for Series 'E' Compulsorily Convertible Debentures. The Mumbai bench of NCLT admitted the plea and later a settlement was reached allowing Tikona to exit insolvency.
• Paul Merchants FinancecoreStrategic or Co-development Partner · 10 February 2025L&T Finance's board approved acquisition of Paul Merchants Finance's gold loan business through Rs 537 crore slump sale, marking L&T Finance's entry into the gold loan sector. The acquisition included 98,000 customers, 700 employees, and 130 branches across 11 states, expected to close by Q2 FY 2025-26.
• ICICI Prudential Life Insurance CompanycoreGTM or Marketing PartnerL&T Finance operates as a Corporate Agent (IRDAI Registration No. CA0867) distributing life insurance products from ICICI Prudential Life Insurance Company Limited.
• Manipal Cigna Health InsurancecoreGTM or Marketing PartnerL&T Finance distributes health insurance products from Manipal Cigna Health Insurance Company Limited as part of its insurance distribution business.
• Care Health Insurance LimitedcoreGTM or Marketing PartnerL&T Finance distributes health insurance products from Care Health Insurance Limited as part of its insurance distribution business.
• Star Health and Allied InsurancecoreGTM or Marketing PartnerL&T Finance distributes health and general insurance products from Star Health and Allied Insurance Co. Ltd as part of its insurance distribution offerings.
• HDFC Ergo General InsurancecoreGTM or Marketing PartnerL&T Finance distributes general insurance products from HDFC Ergo General Insurance Company Limited, including tractor insurance, health insurance, and home insurance.
• Go Digit General InsurancecoreGTM or Marketing PartnerL&T Finance distributes insurance products from Go Digit General Insurance Limited (partnered via godigit.com) including health, two-wheeler, and other general insurance products.
• ICICI Lombard General InsurancecoreGTM or Marketing PartnerL&T Finance distributes general insurance products from ICICI Lombard General Insurance Company Limited as part of its insurance distribution business.

Scale indicators10 records

Recent moves7 records

Expansion highlights6 records

Emerging players

• AU Small Finance Bank: Small finance bank offering vehicle loans, MSME loans, housing finance, and gold loans primarily to underserved and rural customers. Comparable product set to L&T Finance retail portfolio, though structured as a bank with deposit funding.

Direct peers

• CreditAccess Grameen: Pure-play Indian microfinance institution serving rural women entrepreneurs through group lending (Joint Liability Groups). Directly comparable to L&T Finance's Vikaas, Vishwas, and Pragati rural group loan products and microfinance methodology.
• Manappuram Finance: Diversified Indian NBFC with gold loans, microfinance, housing finance, and vehicle finance. Closely comparable to L&T Finance's gold loan plus rural/microfinance combination and pan-India branch-led distribution.
• Bajaj Finance: India's largest and most diversified retail NBFC offering personal loans, two-wheeler loans, business loans, home loans, and gold loans with strong digital distribution. Most directly comparable peer given similar product mix, customer segments (urban + rural), and digital-first strategy.
• Mahindra & Mahindra Financial Services: NBFC subsidiary of the Mahindra Group focused on rural and semi-urban lending including tractor finance, vehicle loans, and SME loans. Highly comparable given L&T Finance's farmer loan and rural business finance offerings.
• Cholamandalam Investment and Finance: Leading Indian NBFC focused on vehicle finance (cars, two-wheelers, commercial vehicles), home loans, and SME loans. Comparable to L&T Finance's two-wheeler, farmer, and LAP segments and similarly distributed via branches and digital channels.
• Shriram Finance: Large Indian NBFC focused on commercial vehicle finance, two-wheeler loans, gold loans, and SME lending with strong presence in semi-urban and rural markets. Directly comparable on truck/tractor/vehicle financing and rural distribution.
• Muthoot Finance: India's largest gold loan NBFC with an extensive branch network across urban and rural India. Directly comparable to L&T Finance's gold loan vertical post-Paul Merchants Finance acquisition, including similar customer profiles and product structures.

Broad incumbents

• HDFC Bank: India's largest private sector bank offering home loans, personal loans, gold loans, vehicle finance, and rural banking through HDFC Credila and other subsidiaries. Overlaps with most of L&T Finance's retail lending categories as a broader incumbent.

Regional players

• SBI Cards & Payment Services: Large Indian credit card issuer offering unsecured revolving credit to consumers. Indirectly comparable on the personal loan and unsecured consumer credit side, but with a different product specialization (credit cards) and partially bank-owned distribution model.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat6 records

Key risks6 records

Key highlights7 records

Customer concentration

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Compliance2 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles1 record

Subsidiaries3 records

Funding overview

Funding rounds1 record

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about L&T Finance