Tractor Junction Secures RBI Registration for Dhanrise Finance

Rural auto fintech platform Tractor Junction has been granted a Certificate of Registration by the Reserve Bank of India (RBI) to operate a non-banking financial company (NBFC) via its wholly owned subsidiary, Dhanrise Finance Private Limited. Dhanrise has attained a Type II NBFC ND ICC licence and is set to commence lending operations in October 2026, initially in Rajasthan and Madhya Pradesh, with plans for phased expansion into Gujarat, Maharashtra, Chhattisgarh, and Uttar Pradesh.

Focus on Used Tractors and Rural Vehicles

Tractor Junction indicates that Dhanrise will concentrate on financing used tractors and rural vehicles, aiming to address an estimated credit gap of Rs 50,000 crore within this sector. The objective is to disburse Rs 100 crore in loans during the first 24 months, with average loan amounts expected to range between Rs 3 lakh and Rs 5 lakh.

Innovative Approaches to Loan Approvals

The company plans to utilise AI-driven valuation, computer vision technology for condition assessments, satellite imagery, and a detailed 120-point tractor inspection framework to significantly reduce loan approval times, aiming to expedite the process from 8-10 days down to less than 24 hours. This will be supported by Tractor Junction’s extensive network, which includes over 6 crore annual platform visitors and retail operations across 100 cities in six states, along with its fintech division, FINJ, that processes around Rs 350 crore in rural vehicle loans every month through more than 30,000 channel partners.

Market Opportunity and Financial Growth

Rajat Gupta, the CEO and Founder of Tractor Junction, stated that while there are more than ten dedicated financiers for used cars in India, there remains a significant gap in institutional financing for used tractors, despite the Rs 50,000 crore unmet credit requirement.

This regulatory approval follows Tractor Junction’s announcement of revenue amounting to Rs 198.4 crore in FY26, reflecting a remarkable 62% increase compared to the prior year. The organisation is projected to achieve Rs 400 crore in revenue for FY27. In November 2025, Tractor Junction successfully raised Rs 200 crore ($22.6 million) during a Series A funding round led by Astanor, with additional investment from existing stakeholders Info Edge and Omnivore.