SK Finance
If you want to understand where India's next credit boom is coming from, don't look at Mumbai or Delhi. Look at the small towns and villages where a tractor loan or a used-commercial vehicle loan can change a family's fortunes.
SK Finance Limited is a good example of what that shift looks like in numbers. The company's Assets Under Management (AUM) went from Rs 7,937 crore in Q1 FY24 to Rs 16,227 crore in Q1 FY27, more than doubling in just three years. That's not an NBFC finding a niche; that's a sign of how much room there still is in India's rural and semi-urban credit markets.
SK Finance built its business inside that gap: commercial vehicles, passenger vehicles, tractors, construction equipment, secured business loans, home renovation mortgages. None of it sounds exciting on a slide, but each one solves a real problem for someone who'd otherwise be negotiating with a local moneylender at punishing rates. The underwriting leans on understanding the borrower's actual income on the ground, not just a bureau score - while still keeping risk tight enough that the book holds up later. Plenty of lenders can grow fast. Fewer can grow fast and still sleep at night.
Getting there meant showing up, physically, again and again. Today the company runs more than 700+ branches across 12 states and two Union Territories. In places where trust is still built face-to-face, that kind of presence is core to how the company sizes up a borrower and builds the relationship in the first place.
None of that changes once a loan is disbursed, though - that's simply where technology takes over. As Mr Rajendra Kumar Setia, the company's Managing Director & CEO, puts it, "Technology is central to our growth strategy and our vision of making finance simple, accessible and inclusive. We are strengthening our digital ecosystem through a one-stop customer app and a 24x7 AI-enabled IVR platform that empower customers to check EMI status, access loan details, raise and track service requests, explore loan offers and connect with us anytime. These investments are helping us deliver greater convenience while building a faster, smarter and more scalable lending franchise."
That pattern-branches doing the work of trust and underwriting, technology handling everything that comes after-mirrors where much of the NBFC sector is heading. Lenders are pushing deeper into underserved markets without necessarily adding branches at the same pace, using digital tools to serve customers they'd otherwise have to visit in person.
As India continues working to formalise its credit ecosystem, it's increasingly clear that NBFCs that can combine disciplined underwriting, deep regional networks and digital capabilities won't just be participants in this shift-they'll likely be among those leading it.
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