L&T Finance (LTF) has announced “Lakshya 2031,” a comprehensive long-term strategic roadmap designed to transform the company into a risk-first, tech-first, and AI-enabled retail financier. This ambitious initiative represents a significant shift towards deep technology integration across all operational facets, including lending, underwriting, collections, and customer engagement, positioning LTF as one of India’s most advanced digital-first non-banking financial companies (NBFCs).
Strategic Pillars and Financial Goals
At its core, Lakshya 2031 is built upon a granular, bottom-up business strategy, informed by peer benchmarking and leveraging the company’s existing strengths. The overarching vision is to establish LTF as a premier AI-enabled BFSI institution by fostering innovation, enhancing portfolio resilience, and boosting operational efficiency through cutting-edge technology.
The roadmap outlines several strategic pillars, including the development of a diversified and cycle-resilient loan book with an optimal blend of secured and unsecured lending. It also heavily emphasizes AI-led cross-selling capabilities and significant productivity gains achieved through automation and streamlined processes.
Under Lakshya 2031, LTF has set clear and structured financial goals:
- Loan book growth exceeding 20%
- Credit cost maintained below 2%
- Return on Assets (RoA) in the range of 3%–3.2%
- Return on Equity (RoE) between 16%–18%
These targets reflect a balanced approach, prioritizing robust growth while diligently maintaining asset quality and profitability.
AI at the Center of Transformation
A key differentiator of the Lakshya 2031 AI strategy is LTF’s aggressive deployment of artificial intelligence across its operations. The company has already demonstrated tangible outcomes from its AI-led initiatives.
Enhanced Credit Assessment and Collections
- Project Cyclops: In the two-wheeler financing segment, “Project Cyclops” has significantly outperformed industry benchmarks. The portfolio reported a delinquency rate of just 2.8% (30+ days past due), considerably lower than the industry average of 7.1%, indicating superior credit assessment and monitoring capabilities.
- GenAI-Powered Collections: LTF has transitioned from traditional NLP-based bots to advanced Generative AI-powered systems for collections. These AI bots handled over 72 lakh customer interactions across 10 Indian languages in FY26 and contributed to collections exceeding ₹4,000 crore. Notably, the cost per resolution through AI bots stands at approximately ₹10, dramatically more cost-effective than traditional phygital collection methods, which are 40–50 times more expensive.
Efficiency in Underwriting and Fraud Detection
Efficiency gains are also evident in underwriting processes. AI-driven tools under “Project Helios” have substantially reduced turnaround times for SME loans, cutting processing time from 21 to 14 hours for self-employed professionals and from 37 to 25 hours for non-professionals. Furthermore, LTF has deployed 10 enterprise-wide AI co-pilots across critical functions such as fraud detection, legal processing, and credit evaluation, streamlining operations and enhancing accuracy.
Improving Credit Outcomes and Customer Engagement
The strategic AI interventions have also strengthened early-stage credit behavior. Net Non-Starter (NNS) rates—representing customers who miss their first EMI—have seen a sharp decline in both two-wheeler and farm equipment financing segments since 2024, indicating improved risk assessment and customer onboarding processes.
On the customer engagement front, LTF’s PLANET app has emerged as a pivotal digital channel. As of March 2026, the platform surpassed 2.4 crore downloads, facilitated collections of over ₹9,500 crore, serviced more than 12 crore requests, and sourced loans worth approximately ₹29,000 crore, demonstrating its critical role in the company’s digital-first approach.