Sundaram Housing Finance to double emerging biz disbursements to Rs 400 cr

CHENNAI: After having seen a steady growth in the initial phase in the Emerging Business (EB) segment, Sundaram Home Finance is now looking to enter the next phase of growth, with a plan to enter Telangana.

The company is targeting to double its disbursements in this segment to over Rs 400 crore over the next 12 months.

The EB comprises small business loans of up to Rs 20 lakh to small shops and businesses and affordable housing finance where the company provides loans of up to Rs 35 lakh.

Having established over 40 branches in TN in the EB segment, Sundaram Home Finance recently expanded into Andhra Pradesh with the opening of 5 new branches. In the next growth phase, the company has plans to foray into Telangana.

D Lakshminarayanan, MD, Sundaram Home Finance said “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 TN. In phase two, we expanded our branch network penetrating deep into small towns in the state and now we are now moving into a growth phase expanding our presence outside TN.”

On the growth plans for the EB segment, he said, “Our immediate plan is to stabilise and strengthen the branch network in TN and AP and register good growth through the existing branches in these two states. After we consolidate our current branch network in TN and AP, we expect the next set of branches to come up faster. Into the next phase of growth in the EB segment, we will look to expand into Telangana.”