Sundaram Home Finance is gearing up for its next growth phase in the Emerging Business (EB) segment, targeting a twofold increase in disbursements to over ₹400 crore within the next 12 months.

The EB segment focuses on small business loans of up to ₹20 lakh for small shops and enterprises, as well as affordable housing finance, offering loans up to ₹35 lakh.

Expansion into Telangana

After establishing more than 40 branches in Tamil Nadu and recently expanding into Andhra Pradesh with five new branches, Sundaram Home Finance now plans to enter Telangana as part of its growth strategy.

Moving Beyond Tamil Nadu

D Lakshminarayanan, MD of Sundaram Home Finance, highlighted the company’s progress in the EB segment. “We have undergone three phases—initially operating in a startup mode to understand the market and customers in Tamil Nadu, followed by branch expansion into smaller towns. Now, we are in the growth phase, broadening our presence beyond Tamil Nadu,” he said.

“Our immediate focus is to stabilize and strengthen our branch network in Tamil Nadu and Andhra Pradesh while achieving steady growth. Once we consolidate our presence in these states, we expect a faster rollout of new branches. Telangana will be our next target in this expansion,” Lakshminarayanan added.

With disbursements in the EB segment surpassing ₹200 crore, the company is confident of doubling this figure in the next 12 months. The EB segment has also grown to a team of over 300 people.

He said that while the company will continue to expand in Tier 2 and 3 towns in Tamil Nadu, future growth will be fueled by its expansion into Andhra Pradesh and Telangana.

Sundaram Home Finance reported total disbursements of ₹1,692 crore for the third quarter ending December 31, 2024, marking a 35 per cent growth.