### **Company Overview** India Shelter Finance Corporation Limited (ISFC) is a technology-driven, retail-focused housing finance company established in **2010**, with 15 years of specialized experience in serving **low- and middle-income (LIG & MIG)** individuals across **Tier 2 and Tier 3 cities** in India. The company primarily offers **affordable home loans** and **loans against property (LAP)**, focusing on first-time homebuyers and **self-employed professionals** who are traditionally underserved by mainstream financial institutions. Headquartered in Rajasthan, ISFC has grown into a pan-India player with a strategic presence across **15 states**, serving over **1.23 lakh customers** as of Q2 FY26. --- ### **Business Focus & Target Market** - **Target Customers**: - First-time homebuyers (71% of borrowers are taking their first mortgage). - Self-employed individuals (75% as of FY25), including masons, shop owners, lab technicians, pharmacists, transporters, and municipal employees. - Salaried individuals from informal sectors with limited access to formal banking. - Monthly household income range: ₹30,000–₹70,000 (up to ₹50,000 for 70% of borrowers). - Age group: 28–45 years. - **Geographic Reach**: - Operates in 15 states with **299 branches** (as of Sept 2025). - Over **91% of branches located in Tier II and III cities**. - Key AUM contributors: Rajasthan (31%), Maharashtra (17%), Uttar Pradesh (7%), with growing traction in the South and Central India. - **Product Portfolio**: - **Home Loans**: For plot purchase, construction, and home improvement. - **Loans Against Property (LAP)**: Secured against self-occupied residential homes, with 45% LTV and yields of 15.5%. - Home loan yields: 13.5% at 55% LTV. - Loan ticket size: ~₹10 lakhs (granular and standardized). - **Key Differentiator**: - Focus on **financial inclusion**, especially for women (99% of loans include women as co-borrowers). - Specialized credit assessment for informal-income borrowers using alternative data (GST, bank statements, cash flows, geo-tagging). --- ### **Operating Model & Distribution Network** - **Phygital Distribution Strategy**: - Combines physical presence with digital capabilities (“phygital” model) to enhance accessibility and trust in underserved markets. - **299 branches** as of September 2025, up from 223 in June 2024 — reflecting aggressive but data-driven expansion. - Plans to add **40–45 new branches annually**, focusing on deepening presence within existing high-demand markets. - Branch maturity drives productivity: - Mature branches (>3 years): Avg. AUM of **₹44 crore per branch**. - Newer branches: Avg. ~₹5–7 crore. - Total AUM per branch: ₹30.9 crore (as of Q2 FY26, ₹9,252 crore AUM / 299 branches). - **Decentralized, Localized Approach**: - Branch teams leverage local market insights to enhance credit evaluation and customer engagement. - Employees act as **brand ambassadors**, building long-term trust through on-ground relationships. - **Customer Acquisition**: - 99% of loans sourced directly via branch network, ensuring relationship-based lending. - 4–5 field interactions during underwriting for robust due diligence. --- ### **Technology & Digital Infrastructure** India Shelter is a pioneer in **digital transformation within affordable housing finance**, having adopted a **technology-first mindset since 2013**. - **Core Platforms**: - **Salesforce CRM & LOS**: Integrated across lead-to-disbursement lifecycle. - **Cloud-native architecture** with Azure Active Directory and AI-powered cybersecurity (XDR). - Proprietary **SaaS-based applications** tailored for each stage of lending: - **iTrust** / **iSales**: Customer acquisition & lead capture. - **iCredit**: Digital credit underwriting with business rule engine. - **iTech** / **iServe**: Collateral evaluation & customer service (multilingual support). - **iCollect**: Intelligent collections using predictive analytics. - **Digital-First Processes**: - Fully **paperless loan lifecycle** enabled by E-Sign, E-Nach, E-Stamp, biometric verification (FaceLiveliness), and IRIS-based Aadhaar KYC. - Disbursement in **6 days** on average from application. - Real-time credit decisions powered by AI, machine learning, and automated scorecards. - Predictive analytics for default risk, fraud detection, and bounce forecasting. - **Operational Efficiency Tools**: - Geospatial intelligence for radial analysis of property locations. - Robotic Process Automation (RPA) and 24x7 online disbursement integration. - Omni-channel customer support via multilingual apps, AI chatbot, and IVR. --- ### **Risk Management & Credit Assessment** - **Underwriting Methodology**: - Fully digitized, end-to-end process with **independent verticals** for credit, legal, and technical verification. - Uses **alternative income verification** for self-employed: GST returns, 6-month bank statements, business cash flows. - Field-based subjective assessments validated by system-driven risk models. - **Maker-checker system** ensures compliance and transparency. - **Conservative Lending Standards**: - Avg. Loan-to-Value (LTV): ~51%, conservatively managed. - 75% of loan book at **fixed interest rates** (increasing variability planned to 40–45% over 2 years). - Focus on **self-occupied residential properties**, eliminating speculative risks. - **Asset Quality & Collections**: - High collection efficiency: **99.3% monthly recovery rate**. - Only **0.7% of accounts move to DPD 1** monthly (cyclical pattern with strong recoveries). - 92% collections via digital channels; 99% e-NACH adoption. --- ### **Performance & Growth Metrics (Latest as of Nov 2025)** | Metric | Value | |-------|-------| | **Assets Under Management (AUM)** | ₹9,252 crores (Q2 FY26) | | **Year-on-Year AUM Growth** | 35% (vs. ₹8,189 cr in FY25) | | **Total Disbursements in FY25** | ₹3,355 crores | | **Number of Customers Served** | 1,23,595 | | **Branch Network** | 299 branches across 15 states | | **Average AUM per Branch** | ₹30.9 crore | | **Mature Branch AUM** (>3 years) | ₹44 crore per branch | | **Profit After Tax (PAT)** | ₹378 crores (FY25) | | **Geographic Concentration (Top State)** | Rajasthan: 31% (down from 41% in 2018) | --- ### **Funding & Financial Strategy** - **Funding Mix**: - 50% linked to MCLR/NHB PLR. - 35% to external benchmarks (repo rate, T-bills). - 15% fixed-rate borrowings. - Equity funding supports ~25–30% of loan book. - **Direct Assignment (DA)** used selectively for higher-yielding LAP portfolios. - 38 institutional lending relationships; avg. borrowing tenure >7 years. - **Funding Diversification Goals**: - Expand co-lending partnerships. - Issue long-term bonds to stabilize liabilities. - Target improved credit ratings (from A- in 2018, with expectations of further upgrades).