L&T Finance Limited (LTF) has recently launched Warehouse Receipt Financing (WRF) – a first-of-its-kind digitally-assisted journey for loan facilities against agri-commodities in India. This innovative facility enables using commodities as collateral to secure loans and is available to customers in four states. The facility promises a quick and seamless disbursement of loans, with customers being able to avail of the sanction within 24 hours of filing the application. Additionally, it offers a paperless experience to agri-customers, enriching their borrowing journey.
L&T Finance Limited (LTF), a subsidiary of L&T Finance Holdings Limited, has launched Warehouse Receipt Financing (WRF), a new digitally-assisted way for loan facilities against agri-commodities. The service allows farmers, traders and processors in Maharashtra, Madhya Pradesh, Rajasthan and Gujarat to use their commodities as collateral to secure loans. LTF, one of the leading Non-Banking Financial Companies, checks the quality and quantity of commodities stored in professionally managed warehouses by empanelled collateral managers. A receipt is issued by the collateral manager which can then be used as collateral to avail of loan facilities from LTF.
WRF will offer a hassle-free experience to customers by providing loan sanctions within 24 hours of filing the application, which is a significant improvement from the traditional loan application process that takes 7-10 days. Customers can access all the information related to their loans through the mobile application PLANET. The loan facility will be available at attractive interest rates ranging from Rs.1 lakh to Rs.10 crore.
Dinanath Dubhashi, Managing Director & CEO of L&T Finance Holdings Ltd, said, “Our Lakshya is to become a top-class, customer-focused, digitally-enabled retail finance company by 2026, or even before that. In line with the same, we are consistently working upon engaging our customers with products that are suited to their requirements and at the same time, are available when they need them.”
LTF aims to become a top-class retail finance company by 2026 and is working to engage its customers with products that suit their requirements. The retail book of LTF reached Rs. 57,000 crores in the third quarter of 2022, up 34 per cent year-on-year, while the retail portfolio mix of the total loan book stood at 64 per cent. The launch of WRF is expected to improve growers’ income, stabilise the supply of commodities and prices in the market, and reduce food losses.
