Laxmi India Finance has digitized many aspects of the loan approval process, resulting in faster turnarounds & improved service for customers
Kuldeep Singh, CBO
Vehicle ownership has become a widespread aspiration, and this is increasingly made possible through financing. Alongside the expansion of new auto loans, the used auto loan market is growing in parallel, particularly in rural and semi-rural areas. Rural customers typically seek used vehicles due to its affordability, but the financial inclusion in this segment is limited. Many financial institutions prioritize new vehicle loans, leaving used vehicle buyers with fewer options. NBFCs like Laxmi India Finance Ltd. address this gap by providing financial solutions for used commercial and personal vehicles.
Driving Financial Inclusion
Laxmi India Finance has steadily grown into a significant player in India’s NBFC sector, with a distinct focus on serving MSMEs and rural markets. Established in 2011, the company has consistently expanded its presence, providing financial inclusion for underserved sectors, particularly in rural and semi-urban areas. This has allowed them to carve out a unique niche in auto financing, especially for used commercial and personal vehicles, making them one of the key contributors to the auto finance market’s evolution in India. “With over ₹1,100 crore in Assets Under Management (AUM), we have rapidly expanded our operations across four states, including Rajasthan, Madhya Pradesh, Gujarat, and Chhattisgarh”, says Kuldeep Singh, CBO, Laxmi India Finance. “We operate through a network of 140+ branches, providing essential financial services to over 26,000 onboarded customers”, Kuldeep adds.
One of the core challenges in the used vehicle finance market is the higher perceived risk associated with second-hand vehicle financing, particularly when customers lack a credit history. Many rural borrowers do not have a robust credit score or exposure to organized credit that requires income documents, making them less likely to qualify for loans from traditional banks. Laxmi India Finance steps in to serve these ‘unbanked’ customers, providing them with the financial means to purchase vehicles, which in turn boosts their livelihoods.
Its service offerings are diverse, ranging from MSME secured loans backed by property to vehicle loans and construction loans. Approximately 73 percent of the company’s portfolio is MSME property-backed loans, while 18 percent consists of vehicle financing. Its broad range of financial products ensures that customers can access various services without seeking out multiple lenders. The ‘one-stop-shop’ approach sets the company apart from competitors, which often specialize in only one area, such as property loans or vehicle loans.
Laxmi India Finance has digitized many aspects of the loan approval process, resulting in faster turnarounds & improved service for customersKuldeep Singh, CBO
Technology-Driven Solutions for Faster Service
Laxmi India Finance has digitized many aspects of the loan approval process, resulting in faster turnarounds and improved service for customers. From lead generation to document submission, the entire process is handled digitally, with field staff equipped with mobile applications that allow them to collect customer information and submit loan applications on the spot. The tech-enabled approach ensures that decisions on loan approvals are made within two hours, and loans for used vehicles can be disbursed within a day.
Its approach not only enhances operational efficiency but also offers a better customer experience. With marketing channels such as WhatsApp, tele-calling, SMS campaigns, and the Laxmi Mitra referral app, the company ensures that it maintains continuous engagement with potential customers. “Through Laxmi Mitra, the existing customer can refer to other customers, and that existing customer will get the commission for those references”, says Sourabh Mishra, Company Secretary and Compliance Officer, Laxmi India Finance. Furthermore, the company’s Loan on Wheels initiative allows customers to visit mobile loan centers and submit queries or loan applications, further simplifying the loan process.
The company also relies on its tech-driven CRM system to manage customer relationships and track loan performance, ensuring transparency and timely communication throughout the loan lifecycle. By reducing manual processes and leveraging digital tools, it offers a faster, more seamless experience for customers compared to competitors in the space.
Expanding Horizons, Steady Ascent
The company’s growth trajectory reflects its success in expanding beyond Rajasthan, entering new states like Madhya Pradesh and Chhattisgarh post-pandemic. In the coming years, Laxmi India Finance plans to continue expanding into new markets, adding more branches, and further diversifying its loan portfolio. It is focused on expanding its footprint across India, with plans to enter one new state every year. The company is also exploring the possibility of transitioning into a small finance bank, a natural progression for an NBFC of its size and scale. In terms of growth targets, it aims to increase its AUM to Rs. ₹1,400 crores by the end of this financial year and add more than 30 new branches to its network.
The firm’s focus on vehicle financing will remain a core part of its business strategy, particularly in rural and semi-rural markets where demand for used vehicles continues to grow. In addition, plans to enhance its digital capabilities further, improving customer service and operational efficiency as it scales are also on the cards. As the auto finance market continues to grow, particularly in the used vehicle segment, Laxmi India Finance is well-positioned to capture increasing demand and provide financial inclusion to customers who may otherwise be excluded from formal lending channels. With ambitious growth plans and a customer-centric approach, the company is poised to expand its reach and influence in the years to come.
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