Sundaram Home Finance, a housing finance company, is set to double its branch network for small business loans (SBL) to 50 branches and expand its operations to Telangana. 

In the small business segment, Sundaram Home Finance provides loans of up to Rs 20 lakh against house property, catering to small traders, shops, and entrepreneurs. As part of its growth strategy, the company aims to extend its footprint beyond Tamil Nadu, venturing into the Telangana market. This expansion represents the company’s first foray outside of Tamil Nadu in the small business loans segment.

Lakshminarayanan Duraiswamy, Managing Director, emphasised the steady progress made in the small business loans segment, particularly in Tier 3 and 4 towns in Tamil Nadu. Currently, the SBL branches are in tier 3 and 4 cities in Tamil Nadu.

The company plans to strengthen existing branches while initiating the second expansion phase into locations beyond Tamil Nadu. The expansion into Telangana is expected to materialise in the coming year, with the identification of opportunities among smaller towns in Tamil Nadu and Telangana currently underway.

Having entered the small business loans segment in October 2022, the company has witnessed disbursements totalling Rs 65 crore. In addition to the small business loans segment, Sundaram Home Finance recently announced plans to enter the affordable housing segment. 

The company initially aims to open 10 branches and hire up to 75 people to support its expansion into the affordable housing market. These strategic moves underscore Sundaram Home Finance’s commitment to diversifying its offerings and expanding its geographical presence to tap into emerging opportunities in the housing finance sector.