SRG Housing Finance is a retail housing finance company that lends almost entirely to self-employed families in India’s villages and small towns - people the formal banking system rarely reaches - using a field-based underwriting model that assesses cash flows in person rather than relying on pay slips or tax returns. It began in 1999 as a single office in Udaipur, Rajasthan, became the first housing finance company in the state licensed by the National Housing Bank, and over 25 years built a loan book that crossed INR 1,000 crore by serving customers with average monthly household incomes of about INR 30,000. The recurring approach is simple: small-ticket loans secured against property, sourced directly by the company’s own relationship managers who know the local market, and collected almost entirely through automated bank channels - a model designed for trust and consistency in places where formal credit histories barely exist.
Business segments
A single engine - affordable home loans and loans against property for rural and semi-urban India, built on a proprietary field-underwriting moat that turns informal incomes into lendable credit.
1. Affordable housing and property loans: credit for the missing middle
The company lends small amounts against property to self-employed, new-to-credit borrowers in Tier 3 and 4 locations, using a high-touch field process that no fintech can replicate.
- Serving the informally employed - roughly 79% of customers are self-employed - small traders, milkmen, tea stall owners, vegetable vendors - and 94% of the loan book comes from rural and semi-urban markets, where most borrowers have never taken an institutional loan before.
- Field visits replace pay slips - credit officers physically visit a borrower’s business to map daily cash flows through surrogate income analysis, because only about 3-4% of India’s population files income tax returns regularly; this proprietary underwriting is the company’s primary competitive moat.
- Fixed rates for predictable instalments - loans are offered on a fixed-rate basis because rural customers expect consistent monthly payments and have limited understanding of floating rates; the company manages the interest-rate risk by blending variable and fixed-rate borrowings on its own books.
- Direct sourcing, not middlemen - around 88% of loans are sourced by the company’s own field-based relationship managers, with low dependence on direct selling agents; go-to-market channels include customer referrals, loan melas, wall paintings, and local connectors.
2. Collections and recoveries: the social contract that keeps defaults low
Nearly all repayments flow through automated bank channels, and when a cheque bounces, the company recovers about 97% of the amount within 30 days - a system built on local relationships as much as legal muscle.
- Automated EMI collection - about 97% of monthly instalments are routed through auto-debit and electronic clearing, reducing manual collection dependency and giving the company a predictable cash-flow stream.
- Rapid bounce recovery - the initial cheque bounce rate runs around 14-15%, but roughly 90% of bounced amounts are recovered within the same month through a structured follow-up process that escalates from soft calling to field visits to legal notices.
- Social standing as a deterrent - in the rural and semi-urban communities the company serves, default carries a heavy social stigma, so the majority of customers make every effort to avoid missing payments, resulting in minimal loan write-offs over the company’s history.
- Legal tools when needed - for loans delinquent beyond 90 days, the company invokes SARFAESI proceedings, issues notices under the Negotiable Instruments Act, and files court suits; it was notified as a “Financial Institution” under the SARFAESI Act in 2015, giving it the same recovery powers as banks.
3. Branch network and distribution: the hub-and-spoke engine that scales locally
Ninety-six branches across six states and one union territory operate within tight radii - hub branches cover 50 kilometres, spoke branches cover 35 - so every loan is underwritten by someone who knows the area.
- Local presence, local knowledge - the branch network has grown from 34 branches in FY21 to 96 in FY26, with Rajasthan and Gujarat together contributing nearly 77% of assets under management; the fastest expansion is now happening in Maharashtra, Andhra Pradesh, and Karnataka.
- Branches break even quickly - new branches typically reach break-even within 4 to 6 months.
- In-house sourcing at every spoke - the hub-and-spoke model means relationship managers operate within a defined geography, sourcing loans directly from their communities rather than relying on centralised call centres or digital-only channels.
- A team built for field work - the company employs more than 980 people as of FY26, up from 298 in FY21, with the majority deployed in branch-level sourcing, underwriting, and collections roles rather than in headquarters functions.
SRG SRAJAN: the digital backbone
A proprietary technology platform built in-house connects loan origination, management, and collections into a single system, cutting the time from application to disbursement from 35 days to under 15.
- End-to-end digitisation - the Loan Origination System handles lead generation, digital KYC verification, credit decisioning, and disbursement, while the Loan Management System automates EMI collection, penalty calculations, and customer servicing.
- Field-force enablement - the platform runs on AWS Cloud, giving relationship managers 24x7 access to digital tools, real-time dashboards, and geo-location tracking for field visits, so underwriting and collections happen faster even in remote areas.
- Early warning signals - the Collection module provides automated DPD bucketing, pool allocation, and data-backed early warning signals that help the company intervene before a loan turns delinquent.
Group structure and partners
SRG Housing Finance is a standalone entity with no subsidiaries, backed by 36 lenders and a promoter family that has steered the company through 25 years of external shocks.
- Single-entity structure - the company has no subsidiaries, associates, or joint ventures; it is registered with the National Housing Bank and listed on both BSE and NSE, having migrated from the SME platform to the main board in 2015.
- Promoter-led, professionally managed - founder and Managing Director Mr. Vinod Kumar Jain has over 25 years of experience, while second-generation promoter Mr. Archis Jain serves as CEO driving day-to-day operations; the management team includes a CFO with 27-plus years of experience and a Chief Business Officer with 34-plus years.
- Recent capital raises - the company raised about INR 50 crore through a preferential issue to M3 Investment Private Limited in March 2025, and an additional INR 25.94 crore through a preferential issue in July 2024, strengthening its capital base for the next phase of branch expansion.