Sundaram Home to Disburse ₹300 Crore in FY25 for Emerging Business Segment

Sundaram Home Finance has introduced a new vertical, the Emerging Business Segment, as part of its strategy to diversify into the affordable housing (AH) market. This segment will initially focus on small business loans (SBL) and AH lending.

The company envisions two primary business drivers moving forward: the Prime Housing Market, centered on traditional housing finance, and the Emerging Business, concentrating on SBL and AH lending.

Since venturing into SBL financing in October 2022, Sundaram Home has seen a positive response, disbursing over ₹125 crore to small shops and entrepreneurs in Tamil Nadu to support their working capital needs and business growth.

“Affordable housing financing shares similar characteristics regarding loan amounts, customer profiles, market segments, and geographies. We believe that the Emerging Business team can effectively serve the growing affordable housing and small business loans market,” said D Lakshminarayanan, Managing Director of Sundaram Home Finance.

This new category will focus on understanding customers in smaller towns who have limited reliance on formal income. Dedicated teams will cater to these segments' needs.

The Emerging Business Segment will start with 31 branches and approximately 300 employees. The company plans to open around 20 additional branches in Tamil Nadu, Telangana, and Andhra Pradesh in the near term. “We plan to hire around 200 people for this segment, largely front-end staff,” Lakshminarayanan added.

Sundaram Home Finance aims to disburse around ₹300 crore in the Emerging Business Segment this year.

HBL