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Shiksha Financial Services India Private Limited has completed its first securitisation transaction with a housing finance company by partnering with DMI Housing Finance Private Limited. The deal involved the issuance of pass-through certificates worth INR 43.4 million backed by a pool of mortgage-backed loans. With this transaction, Shiksha's cumulative securitisation fundraising has crossed INR 200 million. The company said the deal expands its investor base while strengthening its long-term funding strategy. The transaction also reflects continued investor confidence in Shiksha's micro-loan against property portfolio, which primarily serves MSMEs and informal sector workers.
Chennai-based Shiksha Financial Services India Private Limited (Shiksha Finance) has completed a securitisation transaction with DMI Housing Finance Private Limited, an NHB-registered housing finance company focused on expanding affordable housing finance for lower-income and economically weaker sections. The transaction marks Shiksha Finance's first debt fundraising from a housing finance company and adds DMI Housing Finance to its investor base.
DMI Housing Finance, which operates across nine states through a network of 67 branches, participated in the transaction as the investor. The company has been expanding its presence in the affordable housing finance segment by providing home loans to underserved customer groups.
The transaction involved the issuance of pass-through certificates (PTCs) by a special purpose vehicle trust named Micro-LAP Empower June 2026, which was created exclusively for the securitisation. Under the transaction, Series A1 PTCs worth INR 43.4 million were fully subscribed by DMI Housing Finance.
The PTCs are backed by a pool of mortgage-backed loan receivables originating from 148 loan contracts created by Shiksha Finance. Such securitisation transactions allow lenders to convert existing loan assets into marketable securities, enabling them to free up capital for fresh lending while transferring part of the credit risk to investors.
The Series A1 PTCs have received a provisional ICRA A- (SO) rating. The transaction includes multiple credit enhancement measures to strengthen investor protection. These include cash collateral equivalent to 11% of the initial pool principal provided by Shiksha Finance, 10% subordination of the initial pool principal for the Series A1 PTCs, and external/internal support amounting to 41.80% of the initial pool principal.
This is the third securitisation transaction completed by Shiksha Finance. Following the latest deal, the company has cumulatively raised more than INR 200 million through the securitisation route. The company also said that the pass-through certificates issued in its previous two transactions continue to hold an A- (SO) rating from ICRA after the agency's annual review, indicating stable performance of the underlying loan pools.
Commenting on the development, V. L. Ramakrishnan, Chief Executive Officer of Shiksha Finance, said the transaction marked an important milestone as it brought a new investor and a new category of investors into the company's funding ecosystem. He added that the company sees pass-through certificates and direct assignment transactions as key avenues for future debt fundraising and treasury management.
Shiksha Finance provides secured mortgage-backed loans under its micro-loan against property (micro-LAP) product to micro, small and medium enterprises (MSMEs) and informal sector workers. As of June 2026, the company operated 19 branches across Tamil Nadu and Andhra Pradesh, with an outstanding micro-LAP portfolio of INR 742.1 million.
The company said its lending model enables small businesses and informal workers to access formal credit by leveraging the value of their residential properties. Since launching the micro-LAP product, Shiksha Finance has financed nearly 2,500 underbanked entrepreneurs and informal sector workers, helping them expand their businesses and improve their long-term credit profiles.
Source PTI
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