Sundaram Home to double small Filesadmin.co loan branches with expansion into Telangana
Sundaram Home Finance plans to double its Small Business Loans (SBL) branch network over the next 12 months, as the company has seen good progress in this new business.
Following its foray into this new segment in October 2022, the company opened up 25 exclusive SBL branches in Tier 3 and 4 towns in Tamil Nadu in phase 1. The company is now planning to increase the SBL branch network to 50, according to a statement.
The company, which has opened exclusive SBL branches in Tenkasi, Aruppukottai, Rasipuram, Kovilpatti, Ilampillai, and Sivakasi, among other small towns in TN, registered disbursements of ₹65 crore in the SBL segment in the first year.
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“We have made steady progress in the SBL segment, establishing a solid presence in Tier 3 and 4 towns in TN. While we will look to strengthen our existing branches, we are now set to foray into locations outside TN in phase two of our expansion,” said Lakshminarayanan Duraiswamy, MD, Sundaram Home Finance.
Expansion outside TN
The company is looking to expand its presence in Telangana. This will be its first expansion outside TN in the SBL segment.
For the small business segment, Sundaram Home Finance offers loans of up to ₹20 lakh against house property to small traders, shops, and entrepreneurs.
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“We are currently in the process of identifying pockets of opportunities amongst the smaller towns in TN and Telangana and expect to finalise these in Q4 this year. We expect these new branches to become fully operational next year,” he added.
The company also recently announced plans to expand into the affordable housing segment and is looking to open 10 branches and hire up to 75 people for that segment in the initial phase.
The company posted a net profit of ₹117 crore on disbursements of ₹2,307 crore in H1 of this fiscal.