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Sundaram Home Finance has expanded its Emerging Business (EB) segment in south Tamil Nadu by opening new branches in Sankaran Koil and Ambasamudram. The company plans to add five more branches in the region over the next 12 months, strengthening its presence in smaller towns. The EB segment includes affordable housing finance and working capital loans. The company is targeting disbursements of around INR 200 crore in south Tamil Nadu in the coming year. This expansion builds on its earlier entry into the segment in 2022, with a focus on deeper penetration in Tier 4 and Tier 5 markets.
Sundaram Home Finance has expanded its Emerging Business (EB) segment footprint in south Tamil Nadu by opening two new branches in Sankaran Koil and Ambasamudram, with the rollout completed in the past week as part of its strategy to strengthen lending operations in smaller towns across the region. The expansion is aligned with the company's focus on scaling its affordable housing and small business lending portfolio in underpenetrated markets. Advertisement
The Emerging Business segment comprises affordable housing finance and working capital loans aimed at self-employed individuals and small entrepreneurs. The company has indicated that it plans to open five additional branches in south Tamil Nadu over the next 12 months, signalling continued investment in distribution infrastructure across Tier 4 and Tier 5 locations.
The expansion builds on the company's entry into the segment in late 2022, when it first established a presence in south Tamil Nadu with branches around Madurai. Over the past three and a half years, the company has developed a network of 15 EB branches in the region, forming a base for further growth. The next phase of expansion is intended to deepen its reach in smaller towns, where access to formal housing finance and working capital remains relatively limited.
Company leadership indicated that the focus remains on consolidating its presence in south Tamil Nadu by strengthening branch-level outreach and improving credit access for customers in semi-urban and rural markets. The strategy reflects a broader shift among housing finance companies towards expanding beyond metropolitan areas into emerging consumption centres.
Across its operations, Sundaram Home Finance currently operates over 100 Emerging Business branches spanning Tamil Nadu, Andhra Pradesh, Telangana, and Karnataka. The company has set a disbursement target of approximately INR 200 crore in the EB segment in south Tamil Nadu for the next financial year, indicating an increase in lending activity from the region.
Financially, the company reported a net profit of INR 212 crore on total disbursements of INR 4,911 crore for the nine-month period ending late last year. Its product portfolio includes home loans, plot loans, home improvement and extension loans, loans against property, and small-ticket financing solutions for entrepreneurs.
The continued expansion of branch networks in smaller towns reflects growing demand for formal credit in non-metro markets, particularly in the affordable housing segment. Increased presence in such locations is expected to support credit penetration and enable housing finance companies to tap into incremental demand from first-time homebuyers and self-employed borrowers.
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