MICROCAPITAL BRIEF: L&T Finance Rolling Out Instant Loan Approvals, Expanding Microlending to Women in India

Larsen and Toubro (L&T) Finance Limited, a subsidiary of India-based L&T Finance Holdings that lends to women, recently debuted an app that is intended to “enable seamless customer on-boarding by providing instant loan sanctioning.” The app is to be rolled out in all 14 Indian states served by the company. L&T Finance Limited also announced plans to expand its microlending in the Indian states of Karnataka, Chhattisgarh and Uttar Pradesh. As of June 2018, the firm offers microloans in amounts between INR 15,000 (USD 220) and INR 40,000 (USD 587) with terms ranging from 12 to 24 months.

L&T Finance Limited is a non-banking financial company serving farmers, homeowners, motorcycle owners and microentrepreneurs. The firm does not accept deposits, but does provide asset management services in addition to loans. As of March 2018, L&T Finance Limited reports a microloan portfolio of INR 75 billion (USD 1.2 billion), having disbursed loans totaling INR 72 billion (USD 1.1 billion) during the previous 12 months. As of June 2018, the company has 3.8 million customers in 57,500 villages.

By Nicholas Galimberti, Research Associate

Sources and Additional Resources

L&T Finance Holdings press release
https://www.ltfs.com/content/dam/lnt-financial-services/home-page/media-center/documents/press-release/2018/Press%20Release%201000th%20Meeting%20Center%20Opening%2020%20June%202018.pdf

L&T Finance Holdings background
https://www.ltfs.com/companies/lnt-finance/about-us.html

L&T Finance Limited annual report
https://www.ltfs.com/content/dam/lnt-financial-services/lntfamilycredit/Documents/familycreditinverstors/financials/LTF_Annual%20Report_FY%202016-2017.pdf

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