Sundaram Home Finance to expand in tier-3 towns of Western Tamil Nadu

Sundaram Home Finance Ltd on Tuesday announced plans to expand its presence in tier-III towns in western Tamil Nadu under its 'Emerging Business' (EB) segment, citing strong growth potential.

The company, a wholly owned subsidiary of non-banking finance company Sundaram Finance Ltd, currently operates over 15 branches in the region, including six under the vertical.

As part of its expansion strategy, Sundaram Home Finance aims to disburse over Rs 500 crore in the next 1218 months, with Rs 50 crore targeted specifically at the EB vertical.

This move follows the successful launch of its Coimbatore branch, the company stated on Tuesday.

 

"Having established our Coimbatore branch, we are looking to expand further in the Emerging Business segment. The expansion into Pollachi is part of our strategy to penetrate deeper into smaller towns. Small entrepreneurs are thriving in the region and require working capital financing to expand their businesses," said Sundaram Home Finance managing director, D Lakshminarayanan.

The Pollachi branch will offer small business loans of up to Rs 20 lakh to entrepreneurs for working capital and business growth. It will also target the affordable housing finance market, offering loans of up to Rs 35 lakh.

"This is a significant opportunity for us to grow our Emerging Business segment. While Coimbatore has been a key driver of our growth, we are now focusing on smaller towns like Tirupur, Dharapuram, and Erode," Lakshminarayanan added.

Sundaram Home Finance currently operates over 150 branches across the country, the statement said.