SBFC to maintain disbursement rate
Banking Frontiers|July 2021
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.

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