BENGALURU, March 13 (Reuters) - IIFL Finance

said on Wednesday it would raise funds up to 20 billion rupees

($241.5 million) as the non-bank lender looks to shore up

capital after India's central bank barred it from offering gold

loans.

The company will raise the funds through the issue of shares

on rights basis and non-convertible debentures via a private

placement, it said in an exchange filing.

($1 = 82.8275 Indian rupees)

(Reporting by Nishit Navin and Navamya Ganesh Acharya in

Bengaluru)