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Sundaram Home Finance plans to expand its affordable housing and small-ticket lending operations by opening 25 new Emerging Business (EB) branches across South India during the current financial year. The expansion will focus on Tier 3 and Tier 4 towns in Tamil Nadu, Karnataka, Andhra Pradesh and Telangana, reflecting the company's increasing emphasis on rural and semi-urban markets. The lender is targeting disbursements of around INR 1,000 crore in the EB segment this year, up from INR 590 crore recorded in FY26. To support the expansion, the company also plans to recruit around 300 employees. The move follows the lender crossing the milestone of 100 EB branches last year and comes amid growing demand for affordable housing finance in smaller towns across the southern states.
Sundaram Home Finance plans to strengthen its presence in South India's affordable housing market by opening 25 new Emerging Business (EB) branches during the current financial year, targeting Tier 3 and Tier 4 towns across Tamil Nadu, Karnataka, Andhra Pradesh and Telangana.
The expansion is aimed at tapping growing demand for affordable housing finance and small-ticket loans in rural and semi-urban markets. The company's Emerging Business vertical comprises affordable housing finance and small-ticket lending products, which have become an increasingly important component of its growth strategy since the segment was launched in October 2022.
The lender had crossed the milestone of 100 Emerging Business branches last year and is now looking to deepen its footprint in smaller towns across the southern region. The proposed branch additions are expected to improve access to housing finance in markets that remain underserved by formal lending institutions.
Alongside its physical expansion, Sundaram Home Finance has set a target of achieving disbursements of around INR 1,000 crore in the Emerging Business segment during the current financial year. The company reported disbursements of INR 590 crore in the segment in FY26, indicating a significant increase in lending ambitions for the year ahead.
Commenting on the expansion strategy, Managing Director D. Lakshminarayanan said the company had established a strong foundation in the Emerging Business segment across South India and continued to see opportunities in the affordable housing market, particularly in smaller towns supported by resilient rural demand. He stated that the lender intended to leverage increasing demand for affordable housing by expanding its branch network in Tier 3 and Tier 4 locations and believed the latest expansion would support the next phase of growth for the business.
To support the planned scale-up, the company also intends to increase its workforce. Sundaram Home Finance currently employs around 800 people within the Emerging Business segment and plans to recruit approximately 300 additional employees during the year.
The expansion comes against the backdrop of steady growth in the company's overall business. Sundaram Home Finance reported a net profit of INR 282 crore during FY26 on total disbursements of INR 6,842 crore. Its assets under management increased by 14% year-on-year to reach INR 19,909 crore as of March 31, 2026.
A wholly owned subsidiary of Sundaram Finance, Sundaram Home Finance offers a range of products including home loans, plot loans, home improvement and extension loans, affordable housing finance, loans against property and small-ticket loans for entrepreneurs. The latest branch expansion reflects the company's increasing focus on rural and semi-urban housing markets, where demand for affordable home finance continues to grow across South India.
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