SBFC to maintain disbursement rate

The company expects to continue disbursing `1.65 billion loans every month during the current year

- mehul

Mahesh Dayani has plans to expand SBFC’s branch network from 120 to 150 in the next 18 months

Small Business FinCredit India, or SBFC, is a new-age financial services institution focused on providing credit to small businesses. It has grown significantly in just 3 years after acquiring Karvy Financial Services. In FY 2020 it had disbursed more than ₹11 billion by way of loans and today, the NBFC’s AUM stands at ₹32 billion and it disburses more than ₹1 billion every month.

Mahesh Dayani, Co-founder and CBO, of the company says despite a 6-month lockdown, the company has grown by 40% in 2021. It had a CAGR growth of more than 50% over the last 3 years.

SBFC provides credit to the needy small entrepreneurs in the underserved and underpenetrated market. In FY 2019-20, it had served more than 47,000 customers and some 200,000 customers have derived benefit so far from the company.

₹70 BILLION UNDER LMS

SBFC, which offers a unique loan management services (LMS) to third-party financial institutions, has a strong presence in rural and semi-urban India. “We currently manage ₹70 billion under LMS. About 20% of our company’s profit comes from LMS. The co-origination segment accounts for over 27% of our monthly disbursements,” says Dayani.