Piramal Capital and Housing Finance is aiming for an AUM of ₹1 lakh crore in four years, with the share of consumer business AUM seen rising to about two-third of the portfolio from around ₹25,000 crore at present, MD Jairam Sridharan said.

“We want to be a book of a little over ₹1 trillion, with about two-thirds of that coming from the consumer business. Which means that we will go to something like ₹70,000 crore over the next three years,” he said.

Two-thirds of consumer business will be the business directed towards individual or MSME borrowers, Sridharan said, adding that within that the self-employed and unbanked segment will be the vast majority. 

This will require tougher underwriting, and the average ticket size of loans is expected to come down to around ₹20 lakh, he said at an event to launch a campaign focussed on lending to underserved and unbanked customers.

“Piramal Finance provides loans to customers by not only validating the formal credit history and papers/documents but also, evaluating customers on the basis of their intent and integrity - thereby highlighting the differentiated lending experience,” the company said in a release.

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The company plans to focus on budget-conscious customers, as well as medium and small businesses in tier-2 and tier-3 towns, by looking past documentation as the only method to assess creditworthiness, it said.

A wholly-owned subsidiary of Piramal Enterprises, Piramal Finance has 343 branches in 293 cities and towns, and the company is rapidly expanding its footprint in tier-II and tier-III cities, especially in North and South India, with the aim of expanding to 1,000 locations through 500 to 600 branches over the next five years. 

Following the merger of Dewan Housing Finance Corporation in September 2021, the retail loan book has grown to ₹24,872 crore. The lender now has 22 lakh customers and offers 11 retail products, including the launch of branch-led personal loans to salaried individuals in tier 2 and 3 towns. It also has 22 live partnerships with fintechs, OEMs, and aggregators under the digital embedded finance business.