The Emerging Business comprises small business loans of up to Rs. 20 lakhs to small shops and businesses and affordable housing finance where the company provides loans of up to Rs. 35 lakhs.
Foray into Telangana
Having established over 40 branches in Tamil Nadu in the emerging business segment, Sundaram Home Finance recently expanded into Andhra Pradesh with the opening of 5 new branches. As part of its growth initiatives, the company has plans to foray into Telangana.
“We have been through three different phases in the EB segment. In the initial phase, we were in start-up mode trying to understand the new market segment and the customers in Tamil Nadu. In phase two, we expanded our branch network penetrating deep into small towns in the state. Now we are now moving into a growth phase expanding our presence outside Tamil Nadu,” said D. Lakshminarayanan, Managing Director, Sundaram Home Finance, in a release.
“Our immediate plan is to stabilise and strengthen the branch network in Tamil Nadu and Andhra Pradesh and register good growth through the existing branches in these two states. After we consolidate our current branch network in these two states, we expect the next set of branches to come up faster. Into the next phase of growth in the emerging business segment, we will look to expand into Telangana,” he added. According to him, the emerging business segment has solid potential to grow. “We have crossed the Rs. 200-crore mark in disbursements in this segment and are confident of doubling this in the next 12 months,” he said.
The EB segment has expanded to over 300 people.
On the growth drivers in the EB segment, Lakshminarayanan said, “While we will continue to consolidate our presence in Tier-2 and Tier-3 towns in Tamil Nadu, the next phase of growth in the emerging business segment would be driven by expansion in Andhra Pradesh and Telangana.”
Sundaram Home Finance registered overall disbursements of Rs. 1,692 crore for the third quarter ended December 2024, a growth of 35%. Sundaram Home Finance provides home loans, plot loans, home improvement & extension loans, loans against property, affordable housing finance and small business loans to traders and small shops. The company has around 150 branches
