Tractor Junction wins RBI licence for Dhanrise Finance, targets used-tractor lending

Tractor Junction’s NBFC arm, Dhanrise Finance, will begin used-tractor and rural-vehicle loans in Rajasthan and Madhya Pradesh in October 2026, before expanding to four more states. The company aims to disburse Rs 100 crore over its first 24 months.

— FiledTue, 4 Aug, 2026, 10:04 IST·First seen Tue, 4 Aug, 2026, 10:03 IST·Source Entrackr

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 credit gap
  • Rs 100 crore planned loan disbursals in first 24 months
  • Rs 3 lakh-Rs 5 lakh typical loan size
  • 6 crore annual platform visitors
  • 100 cities across six states
  • Rs 350 crore monthly rural vehicle loans facilitated
  • 30,000+ channel partners
  • Rs 198.4 crore FY26 revenue, up 62%
  • Rs 400 crore FY27 revenue target
  • Rs 200 crore ($22.6 million) Series A funding

Why this matters

Banks, NBFCs, insurers and rural-vehicle dealers should view Dhanrise as a potential distribution and co-lending partner with proprietary access to underserved used-tractor borrowers.

What to watch

  • Actual launch timing and first six-month disbursal run rate versus the Rs 100 crore, 24-month target.
  • Portfolio mix by borrower type, tractor age, loan-to-value ratio and average ticket size.
  • Early-warning collection indicators: bounce rates, 30+/90+ day delinquency, repossessions and recovery rates.
  • Cost of borrowing, capital adequacy and any bank/NBFC co-lending or securitisation announcements.
  • Dealer onboarding, marketplace-financed transaction share and used-tractor resale-price trends.
  • Confirmation of the next four states and whether rollout follows a demonstrated Rajasthan/Madhya Pradesh credit-performance threshold.
  • Build dealer-led sourcing and field-collections networks in Rajasthan and Madhya Pradesh before the October 2026 launch.
  • Use Tractor Junction marketplace, inspection and resale-price data to create vehicle-specific underwriting and loan-to-value controls.
  • Pursue co-lending or refinancing partnerships to lower cost of funds and preserve NBFC capital for expansion.
  • Add insurance, warranty, repair and refinancing products to increase revenue per financed tractor.
  • Delay or sequence four-state expansion based on early collection performance rather than disbursal volume alone.