Sundaram Home Finance has forayed into north Tamil Nadu as part of its vision to expand its presence in the state.
The city-based wholly owned subsidiary of non-banking finance company has drawn up plans to disburse Rs 10 crore in the first year of operations in the region.
Sundaram Home Finance has set up an exclusive small business loan branch in Kancheepuram which would offer loans of upto Rs 20 lakh to small businesses which seek funds to meet their working capital requirements to boost growth.
The branch in Kancheepuram is aimed at serving small businesses in the region as well as neighbouring Cheyyar, Vandavasi, Arakkonam, Walajabad, Oragadam and Sriperumbudur.
The company entered the small business loan segment in October 2022 and has opened 25 exclusive branches in south and western parts of Tamil Nadu disbursing Rs 65 crore in the first year of operations.
"Kancheepuram is a trading hub and the SMEs there have been doing well in recent times. The town also attracts lakhs of tourists and devotees around the year. We already have a strong presence in north TN for our home finance business and understand this market well," company MD Lakshminarayanan Duraiswamy said in a statement.
"We are confident of tapping into the opportunity in the small business loan segment in this region in the coming years," he added.
The company has set a target of disbursing Rs 10 crore in the initial phase of the launch in the region. Next year, the company would further look at expanding in Arani, Ambur and Tirupattur, the statement said.
On the operations in Telangana, Sundaram Home Finance said it has planned to double its small business loan branch network to 50 in the next nine to 12 months.
Sundaram Home Finance registered a net profit of Rs 117 crore on disbursements of Rs 2,307 crore for the six month period ended September 30, 2023.