Tractor Junction gets RBI nod for Dhanrise Finance rural-vehicle lending arm
Dhanrise Finance will start used-tractor and rural-vehicle loans in Rajasthan and Madhya Pradesh in October 2026, before expanding to four more states. The NBFC targets Rs 100 crore in disbursals over its first 24 months.
What happened
Tractor Junction received RBI approval for NBFC arm Dhanrise Finance, which will begin used-tractor and rural-vehicle lending in Rajasthan and Madhya Pradesh in
Key facts
- Rs 50,000 crore estimated used-tractor and rural-vehicle credit gap
- Rs 100 crore planned loan disbursals in the first 24 months
- Rs 3 lakh to Rs 5 lakh typical loan size
- Approval time targeted at under 24 hours, from 8-10 days
- Over 6 crore annual platform visitors
- Retail operations in 100 cities across six states
- About Rs 350 crore in monthly rural-vehicle loans facilitated through 30,000+ channel partners
- FY26 revenue of Rs 198.4 crore, up 62% year-on-year
- FY27 revenue target of Rs 400 crore
- Rs 200 crore ($22.6 million) Series A raised in November 2025
Why this matters
Dhanrise Finance makes Tractor Junction a potential partner or competitor for NBFCs, banks, insurers and rural-mobility platforms seeking embedded access to used-vehicle borrowers across six planned states.
What to watch
- Actual October 2026 launch timing and branch, field-agent or dealer-network density in the first two states.
- Quarterly disbursals versus the Rs 100 crore 24-month target, including average ticket size and repeat borrower share.
- Gross and net NPA trends, collection efficiency and repossession/recovery performance for used-tractor loans.
- Cost of borrowing, equity infusion, lender partnerships and whether the NBFC retains loans or originates for co-lending partners.
- Approval turnaround time and conversion-rate improvement versus Tractor Junction's prior loan-facilitation model.
- Evidence of expansion into the additional four states or adjacent products such as implement, insurance and dealer finance.
- Competitive response from Mahindra Finance, Shriram Finance, banks, captive OEM financiers and regional NBFCs.
- Build direct sourcing through Tractor Junction listings, dealer partners and rural field agents in Rajasthan and Madhya Pradesh.
- Launch credit-scoring models using vehicle condition, local resale values, borrower cash-flow proxies and marketplace transaction data.
- Secure warehouse lines, bank/NBFC co-lending arrangements or securitization capacity before scaling the loan book.
- Add insurance, warranty, GPS/asset-tracking and collections partnerships to protect used-vehicle collateral values.
- Prioritize dealer clusters with strong used-tractor resale markets rather than pursuing broad state coverage immediately.
- Use introductory pricing or faster approval promises to shift borrowers away from incumbent bank and NBFC channels.