### **Overview** SRG Housing Finance Limited (SRG), established in **1999** and headquartered in **Udaipur, Rajasthan**, is a **retail-focused affordable housing finance company** serving **rural and semi-urban populations** across India. It is the **first housing finance company (HFC) from Rajasthan** to be registered with the **National Housing Bank (NHB)** in 2002 and achieved several pioneering milestones, including: - Being the **first company in India to migrate from the BSE SME Platform to the BSE Main Board** (2015). - Getting listed on the **National Stock Exchange (NSE)** on **August 21, 2023**, enhancing its visibility and credibility. The company specializes in providing **small-ticket housing loans** and **loans against property (LAP)** to **low- and middle-income (LMI) individuals**, particularly those from the **unorganized sector**, who are **new to credit** and **lack formal income documentation**. --- ### **Core Business Focus** - **Market Segment**: Rural and semi-urban India (Tier II & III cities and villages), focusing on **EWS, LIG, and MIG** segments. - **Target Customers**: First-time borrowers with informal incomes such as **vegetable vendors, milkmen, shopkeepers, barbers, mechanics, small traders, and returning migrant workers**. - **Product Offering**: - Individual housing loans (for **construction, purchase, renovation, extension**). - Loans against property (for **business expansion, education, marriage**, and personal needs). - **Ticket Size**: Average loan size **below ₹10–12 lakhs**, up from ₹5.94 lakh in FY22 to **₹9.15 lakh in FY25**. - **Geographic Reach**: Operates **93 branches** across **7 states and 1 union territory** – Rajasthan, Gujarat, Madhya Pradesh, Maharashtra, Karnataka, Andhra Pradesh, and Delhi. Expansion ongoing in **Tamil Nadu, Telangana, and South India**. --- ### **Financial Performance & Metrics (as of Nov 2025)** - **Assets Under Management (AUM)**: Over **₹600 crores** (reached ₹601.59 crores in FY24), with a **37.24% YoY growth**. - **Loan Disbursements**: ₹283.62 crores in FY24 (up 48.7% YoY). - **Net Interest Margin (NIM)**: - **2.81% in Q2 FY26** (up from 2.62% in Q1 FY26 and 2.78% in Q4 FY25). - FY24 loan spread of **10.99%** (avg. lending rate: 22.12%, borrowing cost: 11.13%). - **Credit Ratings**: - **BBB+** (Acuité, **Positive Outlook**). - **BBB** (CARE, **Stable**). - **Capital Adequacy**: High ratio, indicating financial resilience. Current **Net Owned Funds (NOF): ₹264 crore**. - **Leverage Capacity**: Can leverage up to **5x NOF (₹1,320 crore)**, sufficient to reach target AUM of ₹1,500 crore without new equity. - **Funding Partnerships**: Strong relationships with banks, NHB, and financial institutions. Raised funds via **NCDs, NHB refinancing, and private placements**. --- ### **Operational & Strategic Highlights** #### **Expansion & Growth Strategy (FY26 Targets)** - Expand branch network to **100+ locations** (up from 67 in FY24 to **90 in FY25**, and **93 in Nov 2025**). - Target **AUM of ₹1,000–1,100 crores** and **disbursements of ₹400 crores** in FY26. - Plan to raise **₹50–100 crores in equity** to fund **technology, talent, and infrastructure**. - **Southern India Focus**: New branches planned in **Maharashtra, Karnataka, Tamil Nadu, Telangana, and Andhra Pradesh**. #### **Technology & Digital Transformation** - **Digitized End-to-End Operations**: From application to disbursement and collections. - **Digital Tools**: - **SRG Sales Application** and **Loan Origination System (LOS)** for fast processing (within **15 days**). - **SRG Mitra App**: Incentivized customer referral and lead generation. - **Bitrix24 CRM**: Integrated platform for sales, marketing, and legal teams. - **AWS Cloud Migration**: Ensures 24/7 digital access, business continuity, and automation. - **AI & Data Analytics**: For credit scoring, risk assessment, and decision-making. - **Digital KYC & e-Agreements**: Aadhaar-based OTP, biometrics, paperless onboarding. - **Collections**: **97% of EMIs** collected via **NACH**, with **fully digitized recovery processes**. #### **Distribution & Marketing** - **Hybrid Model**: Mix of **Direct Selling Agents (DSAs)** and **company-employed sales executives**. - **88.33% of business** is internally sourced; **11.67% through DSAs**. - **Door-to-Door Service**: Ensures access in remote and underserved areas. - **Multi-Channel Marketing**: - Digital: **Social media, WhatsApp, SEO, PPC, website, AI chatbot**. - Offline: **Loan melas, wall paintings, hoardings, pamphlets, cinema halls, transport hubs**. - **Proprietary Channels**: ‘Request a Callback’, WhatsApp chatbot, mobile app. --- ### **Risk Management & Lending Strategy** - **Loan-to-Value (LTV) Ratio**: Maintains **below 50%** (as high as 44.29% in FY25), conservatively managed (50% max, slight flexibility in larger villages). - **Collateral**: Typically **almost double the loan value**, reducing default risk. - **Underwriting Approach**: - **Assessed income model** for customers without formal documentation. - **Regional customization** of credit and collateral policies. - **Profile-based assessment** over bureau reliance, focusing on **population dynamics, customer segmentation, and local economic conditions**. - **Interest Rate Risk**: All loans are **fixed-rate**, funded via **blended variable and fixed-rate sources**, creating a **natural hedge**. - **Asset Quality**: Strong due to conservative underwriting, localized collections, and high digital repayment rates. - **Non-Performing Assets (NPAs)**: Low, supported by efficient screening and early intervention. --- ### **Financial Inclusion & Social Impact** - **Women as Co-Borrowers**: **Over 95%** of loans include **women as co-borrowers**, aligning with **financial inclusion** and linked to **better repayment behavior**. - **Target Demographics**: - **62% borrowers aged 35–53**. - **51% have education up to Class XII**. - **Average monthly household income**: ~₹30,000. - **First-Time Borrowers**: Majority are **new to formal credit**, entering the financial system via SRG’s home loans. - **Mission Alignment**: Supports **Government of India’s ‘Housing for All’** and **PMAY** initiatives. --- ### **Leadership & Governance** - **Experienced Leadership Team**: Includes professionals with 10–37 years of experience from SBI, banks, and HFCs. - **Mr. Vipin Saxena** (37+ years, SBI – SME & IT). - **Mr. Abhishek Surana** (CA, Credit & Operations). - **Mr. Ashish Kothari** (18+ years, Risk & ALM). - **National Operations Hub**: Moved to **Mumbai (from April 2023)** for PAN-India scaling. - **Talent & Culture**: Employee Stock Option Plan (ESOP) implemented in FY24. Staff increased from ~636 in FY24 to **over 950 employees** by Nov 2025. --- ### **Key Competitive Advantages** 1. **Deep Rural Penetration**: Uses **Hub & Spoke model** to cover villages up to **50 km from hubs**. 2. **Localized Lending**: Customized policies based on **geography, culture, and economic conditions**. 3. **Tech-Enabled Efficiency**: Fully digitized and scalable operations. 4. **Conservative Risk Model**: Low LTV, rigorous screening, high collateral coverage. 5. **Strong Brand Equity in Underserved Markets**: Built on **trust, transparency, and financial inclusion**.