Target of 25% growth in 3 years! Piramal Finance preparing to bring a flood of unsecured loans in rural India

The country’s leading non-banking financial company (NBFC) Piramal Capital and Housing Finance, commonly known as Piramal Finance, has prepared an aggressive blueprint for its business expansion. The company has set an ambitious target of growing its unsecured loan business by 25 percent within the next three years. This move by Piramal Finance is part of its strategy to strengthen its share in the Indian credit market and further deepen the reach of financial services in Tier-2, Tier-3 cities as well as rural markets. The company’s big strategy is focused on rural and semi-urban India. This time the main focus of Piramal Finance is on those parts of the country where traditional banking services are still not fully accessible. The company is strengthening its presence in emerging cities like Lucknow, Indore, Jaipur, Patna and Coimbatore and their associated rural areas. The biggest part of this scheme is to provide easy loans without any security or collateral to small traders, self-employed people and salaried class in rural markets. According to experts, in view of the improvement in the rural economy and the increase in digital transactions, the company sees less risk of loan default and more growth potential in this segment. There will be strong use of risk management and AI technology. Risk is always high in unsecured loans i.e. personal loans and business loans. To control this risk, Piramal Finance is extensively using modern Generative AI and advanced data analytics tools. Through this, the company will be able to accurately assess the credit score and repayment capacity of customers in rural areas, even if they do not have a strong credit history. This technical upgradation of the company will not only speed up the loan approval process but will also keep the risk of bad loans i.e. NPA at the minimum level. Will it now become easier for common customers to get loans? This strategic decision of the company will directly benefit those common customers and small entrepreneurs who need immediate funds for their immediate needs or business expansion. This targeted growth of 25 per cent in the next three years will increase cash flow in the market. Financial analysts believe that this initiative of Piramal Finance will give a new direction to financial inclusion in rural and semi-urban areas, which will not only lead to a record increase in the asset under management (AUM) of the company, but will also give a huge boost to economic activities at the local level.