Sundaram Home Finance eyes Rs 60 cr in Karnataka via EB foray

CHENNAI: Sundaram Home Finance has made a foray into Karnataka in the emerging business segment and is targeting disbursements of Rs 60 crore in the first year of its operations in the state.

The emerging business comprises mall business loans of up to Rs 20 lakh and affordable housing finance of up to Rs 40 lakh.

In the first phase of its expansion, the company plans setting up 8-10 emerging business branches in the smaller towns in Karnataka.

D Lakshminarayanan, MD, Sundaram Home Finance said, “In line with our stated intent of expanding the emerging business outside TN, we have entered Karnataka and are hopeful of establishing a good presence in the tier 2 and 3 towns in this state over the next 12-18 months.”

He also said, “Karnataka has vast potential for affordable housing finance with the Government pushing this segment aggressively. We believe there will be a high demand for credit in this segment and hope to tap into this growing opportunity. Also, the industrial growth in smaller towns in the state will lead to opportunities in the small business loans segment with entrepreneurs looking for working capital finance to expand their businesses.”

Sundaram Home Finance has over 50 branches in TN and Andhra in the emerging business segment and registered disbursements of over Rs. 200crores in this segment last year.