Buoyed by the success of its small business loans (SBL) operations, Sundaram Home Finance Ltd, (SHFL) has drawn up plans to double the number of branches and staff in the State over the next six months.
As per the plan, SBL branches will be doubled from the existing 10 to over 20 in Tamil Nadu and hire another 100 people exclusively for this segment. Initially, it had hired about 100 people.
The wholly-owned subsidiary of Sundaram Finance forayed into the small business loans segment during October 2022 to lend up to ₹20 lakh to small businesses in Tier 3 and Tier 4 towns to support their expansion and working capital requirements. It had kept a target of ₹10 crore for first six months from this segment..
“Buoyed by the customer response, we are now planning to expand into more than 10 locations in Tier 3 and 4 towns in TN over the next six months,” said D. Lakshminarayanan, MD in an interaction.
“We are hopeful of penetrating deep into the remote towns to finance and support the growth of smaller businesses in the state. This will double our branch count to over 20 in the small business loans segment.”
He said that they had progressed on the disbursements in this segment in the first six months as per the target.
As of December 2022, SFHL had posted net profit of ₹53 crore on disbursements of ₹986 crore.
