Baid Finserv is a Rajasthan-based lender that has spent over three decades turning the financing of second-hand trucks and small shopkeeper mortgages - segments most banks avoid - into a specialised, high-yield business. Founded in 1991 by first-generation entrepreneur Panna Lal Baid and listed in 1995, the company operates as a non-deposit-taking NBFC regulated by the RBI, deliberately targeting the underserved in semi-urban and rural areas where credit is scarce and the market is largely unorganised. Its recurring approach is to lend against hard assets - a used vehicle or a property - to customers it knows well, pricing for the risk and building deep in-house expertise in valuation and recovery rather than competing on scale. # Business segments Two lending engines, one built on property and the other on vehicles, together with a small insurance sideline - all serving the same semi-urban, asset-light borrower through a single branch network. ## 1. Secured MSME and mortgage lending: the balance-sheet anchor **Small-ticket loans against residential or commercial property to shopkeepers, traders and dairy operators who are often taking a formal loan for the first time - this is the largest and fastest-growing part of the book.** - **First-time borrowers, hard collateral** - the typical customer is a self-employed individual, vendor or small shop owner who has never taken an institutional loan before, borrowing up to ₹25 lakh against a residential or commercial property at an average loan-to-value ratio of just 30-45%, which gives the company a large cushion if things go wrong. - **Priced for the risk it takes** - interest rates on these loans run between 16% and 28%, reflecting both the higher credit risk of the customer and the fact that formal bank credit rarely reaches this segment, while tenures stretch from 12 to 48 months for vehicle loans and 60 to 120 months for MSME/business loans, keeping monthly payments manageable. - **The portfolio has tilted decisively toward small business** - since 2015 the company has pushed into MSME mortgage loans, and by the FY25 annual report SME loans made up more than two-thirds of the total portfolio, with their share still growing. - **Co-lending stretches the reach** - the company has signed co-lending arrangements as a partner with two institutions, and also acquires loan pools from others, adding 152 accounts in the year to March 2026 without having to originate every loan itself. ## 2. Vehicle financing: the high-yield specialist **Financing pre-owned trucks, tractors and three-wheelers for aspiring owner-drivers who want to start a small transport business - a segment the company has spent decades learning to underwrite and collect.** - **The used-truck niche is the moat** - the company focuses on pre-owned commercial vehicles, a market that has always been unorganised, and has built a deliberate expertise in valuing second-hand trucks, originating loans for first-time buyers, and recovering assets when needed. - **Small loans, quick turnover** - vehicle loans top out at around ₹10 lakh with tenures of one to four years and interest rates of 16-28%, secured by hypothecation of the vehicle at a loan-to-value of 70-80%, which means the asset itself covers most of the exposure. - **The customer is the driver-entrepreneur** - the company specifically targets small, aspiring owner-cum-drivers who want to begin their own road-transport journey, offering not just finance but advice on which commercial vehicle to buy. - **Expanding beyond diesel** - in mid-2024 the company added financing for three-wheeler electric vehicles and three-wheeler loading vehicles, broadening the vehicle types it covers while staying within the same customer profile. ## 3. Insurance distribution: the add-on that travels with the loan **A small, complementary stream that sells life, dwelling and motor cover to existing borrowers at the point of lending.** - **Sold alongside the loan, not standalone** - insurance products are offered to protect the life of the borrower and the asset being financed, generating supplementary income that rides on the core lending relationship rather than requiring a separate sales effort. # Group structure and partners **A single legal entity with no subsidiaries, listed on both major Indian exchanges, funded by 18 bank and institutional lenders, and controlled by a promoter group that has recently moved to raise its stake.** - **No subsidiaries, no associates** - Baid Finserv operates as a standalone NBFC-Investment and Credit Company with no equity interests in other entities, keeping the structure simple. - **Listed on both BSE and NSE** - the equity shares trade under the symbol BAIDFIN, with the BSE listing dating back to 1995 and the NSE listing added in January 2023. - **Funded by a wide lender base** - 18 active lenders including banks and financial institutions provide term loans, working capital facilities, NCDs and commercial paper, giving the company diversified funding rather than dependence on a single source. - **Promoters are increasing their stake** - in February 2025 the board approved issuing 1.2 crore warrants to six promoter-group members at ₹16.20 per warrant, which on full conversion would lift the promoter group shareholding from 10% to just over 18%.