July 17, 2025
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With over 70% in vehicle loans, SK Finance taps India’s unbanked and underbanked customers in the rural & semi-urban India
Founded in 1994 by Rajendra Kumar Setia, the Company addresses the lack of institutional credit for small transporters and traders across 12 states through 648 branches, over 12,000 employees and a referral network of over 10,700 connectors.
The used vehicle financing market is growing, driven by rising consumption, value-conscious consumers and the increase in the availability of formal credit in rural and semi-urban India. This structurally is led by an increase in the economic activity in rural and semi-urban India across product segments catering to the basic consumption requirements of the local ecosystem.
SK Finance has grown its network at a rapid pace in the north, west and central parts of the country.
As at March 2025, the total AUM of the Company stood at ₹13,261 crore of which the vehicle finance AUM comprised of over 70%. Uniquely, ~78% of the vehicle finance portfolio comprises of small ticket, used vehicle book.
Small ticket commercial vehicles which is their largest product category, focuses on financing small and light commercial vehicles while the Company also offers cars, tractors and two-wheeler loans. The Company also provides small-ticket MSME loans fully secured by self-occupied residential and commercial property which comprises of 23% of the total book.
SK Finance has been focusing on customers who have been largely underserved by the mainstream banking ecosystem, particularly in rural and semi-urban areas. By offering tailored credit solutions, including vehicle financing and MSME loans, they are bridging the credit gap and helping unlock economic potential in these segments.
The Company has been able to leverage best in class technology across its entire loan lifecycle, from application to collections as well as for customer service. Its tech-enabled underwriting, combined with deep local insights, allows it to assess the customer creditworthiness effectively.
The company has filed its DRHP which details a total offer size of ₹2,200 crore IPO, comprising a ₹500 crore primary issue and ₹1,700 crore offer for sale. The capital will be used to bolster tier-1 capital and support future growth.
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