Sundaram Home Finance lines up aggressive expansion in small business loans vertical

Sundaram Home Finance, which forayed into the small business loans segment in 2022, has drawn up plans to double its footprint in Tamil Nadu, the company said on Monday.

The wholly-owned subsidiary of non-banking finance company Sundaram Finance also planned to hire over 100 people under the small business loans segment in the first six months of the current fiscal.

Sundaram Home Finance is planning to double its small business loans branch count to over 20 in the first half of the new financial year, the city-based company said in a statement here.

"We have had positive feedback from small businesses across the locations and are excited about the prospects of this opportunity," Sundaram Home Finance Managing Director Lakshminarayanan Duraiswamy said.

In October 2022, the firm had forayed into the small business loans space offering loans up to Rs 20 lakh to entities in Tier-III and Tier-IV towns to meet their expansion and working capital requirements.

The company has over 10 exclusive small business loans branches.

"...We are now planning to expand into more than 10 locations in Tier-III and -IV towns in Tamil Nadu over the next six months...This will double our branch count to over 20 in the small business loans segment," Duraiswamy said.

On increasing the headcount, the company stated that it recruited around 100 people under the vertical in the last six months and plans to double it in the first six months of the current financial year.

Sundaram Home Finance reported October-December 2022 net profit at Rs 53 crore on disbursements of Rs 986 crore, the statement added.