L&T Finance’s Strong Footprint in Gujarat’s SME Sector
Ahmedabad, August 2, 2023: L&T Finance (LTF), a leading Non-Banking Financial Company (NBFC), has achieved a significant milestone in the first year of its SME Finance operations in Gujarat. The company has disbursed SME loans amounting to a total of Rs. 436 crore since the launch of the SME Finance business on July 1, 2022. The loans, aimed at supporting the growth of small and medium-sized enterprises (SMEs), signify LTF’s commitment to foster entrepreneurship, drive innovation, and contribute to Gujarat’s overall development.
Impressive Growth in Gujarat’s SME Loans Portfolio
During the first quarter of the current financial year, L&T Finance disbursed SME loans worth Rs. 114 crore in Gujarat, leading to an impressive overall SME loans portfolio of Rs. 358 crore in the state. Gujarat’s contribution to nearly 20 percent of LTF’s loan book highlights the state’s robust entrepreneurial spirit. Key markets driving this growth include Ahmedabad, Gandhinagar, Surat, Rajkot, Vadodara, Bharuch, Anand, Vapi, Morbi, Mehsana, Jamnagar, and Gandhidham. The average ticket size of SME loans currently stands at Rs. 24 lakh in Gujarat.
A Digital Journey for SME Loan Applicants
Mr. Raju Dodti, Chief Executive – Wholesale and SME Finance, L&T Finance, emphasized the company’s focus on digitization. As part of their Lakshya 2026 goals to become ‘Fintech@Scale,’ L&T Finance offers SME loans digitally to customers. The end-to-end journey, from loan application to disbursement, is seamless and digital, ensuring a convenient experience for borrowers. Presently, L&T Finance offers SME loans across 12 locations in Gujarat, capitalizing on the state’s high number of registered SMEs, estimated to be around 13 lakhs.
Exponential Growth in SME Loans Portfolio
As of June 30, 2023, L&T Finance has disbursed SME loans worth Rs. 607 crore, reflecting an astonishing 8x growth year-on-year. The SME loans portfolio has surged to Rs. 1759 crore, marking a remarkable 13x growth year-on-year during the same period. This phenomenal growth showcases LTF’s strong commitment to empowering small and medium-sized businesses in Gujarat.
Unleashing the Potential of Self-Employed Professionals and Businesses
L&T Finance’s SME loans primarily target self-employed professionals such as doctors and chartered accountants, as well as self-employed non-professionals engaged in various businesses across manufacturing, trading, and services industries. The loans are available without collateral, with minimal documentation, making the process hassle-free for applicants.
In conclusion, L&T Finance’s exceptional performance in Gujarat’s SME sector has positioned it as a prominent financial partner in fostering entrepreneurship and driving economic growth in the state. The company’s digital focus and commitment to simplifying loan processes have contributed significantly to its remarkable success in empowering small and medium-sized enterprises in Gujarat.
