Keertana Finserv: Transforming Rural Lending With Innovation And Trust

Introduction To Keertana Finserv Pvt. Ltd.

Keertana Finserv Pvt. Ltd. is a technology-driven, systemically important Non-Banking Financial Company (NBFC) that specialises in providing financial solutions tailored to low and middle-income households in rural India. The company focuses on secured and unsecured lending through Gold Loans, Loans Against Property (LAP), Micro, Small & Medium Enterprises (MSME) loans, and Joint Liability Group (JLG) loans. By addressing the credit needs of underserved communities, Keertana Finserv plays a crucial role in fostering financial inclusion and rural economic empowerment.

Under the leadership of Ms. Padmaja Reddy, Keertana Finserv has witnessed remarkable growth, managing an Assets Under Management (AUM) of INR 2,056 crore as of November 2024. The company maintains a well-diversified portfolio, with 67% of its assets secured through Gold and LAP loans, ensuring a stable revenue stream. The remaining 33% consists of unsecured MSME and JLG loans, catering to small business owners and self-employed individuals. With an impressive Gross Non-Performing Asset (GNPA) ratio of just 0.4% and a 99% collection efficiency, Keertana Finserv stands out for its prudent risk management and strong asset quality. Backed by a net worth of INR 566 crore and continuous promoter support through capital infusion, the company demonstrates financial resilience and sustainable growth, making it a promising player in India’s microfinance and rural lending sector.

Board Of Directors Of Keertana Finserv

As of the latest available information, the Board of Directors of Keertana Finserv Pvt. Limited comprises:

• Padmaja Reddy – Managing Director
• Vijaya Sivarami Reddy Vendidandi – Director
• Mahesh S. Payannavar – Independent Director
• Vara Prasad Chaganti – Independent Director
• Raghu Venkata Harish – Independent Director

For more detailed information, please refer to the official governance documentation of Keertana Finserv Pvt. Ltd.

Source: Keertana Finserv¹

Products Offered By Keertana Finserv

Keertana Finserv Pvt. Ltd. offers a diverse range of financial products tailored to meet various customer needs. Below is a detailed overview of each product:

1. Gold Loans

Keertana provides secured loans against gold ornaments, allowing customers to leverage their gold assets for immediate financial requirements.

A. Purpose: These loans cater to both income-generating activities and personal needs, excluding any speculative or illegal purposes.

B. Eligibility:

• Individuals aged between 21 to 75 years.
• Must be the rightful owner of the gold ornaments, with purity ranging from 18 to 22 carats.
• Compliance with Know Your Customer (KYC) norms and demonstrable repayment capacity.

C. Loan Details:

• Tenure: 3 to 12 months.
• Loan Amount: INR1,000 to INR1 crore, based on the net weight and purity of the pledged gold.
• Interest Rates: 8% to 26% per annum, depending on the product variant.
• Processing Fee: 0.25% of the loan amount.

D. Loan-to-Value (LTV) Ratio: Up to 75% of the appraised value of the gold, as per Reserve Bank of India (RBI) guidelines.

E. Repayment: While loans are structured with bullet repayments at the end of the tenure, borrowers are encouraged to pay interest monthly to reduce the overall interest burden and mitigate repayment risks.

F. Auction Procedure: In case of default, Keertana follows a structured auction process, ensuring borrowers receive prior notices and opportunities to regularize their accounts before proceeding with the auction of pledged gold.

2. Loan Against Property (LAP)

This secured loan product enables individuals to unlock the value of their property for substantial financial needs, offering longer repayment tenures and higher loan amounts.

A. Purpose: Suitable for both business and personal uses, especially for individuals with informal or irregular income streams.

B. Eligibility:

• Property ownership is mandatory.
• Minimum monthly income of INR20,000.
• Applicants aged between 21 and 60 years at loan maturity.
• Applicable to salaried individuals (private sector employees, government Class IV employees, pensioners), self-employed persons (business owners, contractors), small and marginal farmers, and skilled or unskilled wage laborers.

C. Loan Details:

• Tenure: 3 to 12 years, based on cash flow assessments.
• Loan Amount: INR3 lakh to INR1 crore, depending on property valuation and borrower eligibility.
• Interest Rates: 19% to 24%, determined after a comprehensive risk assessment.
• Processing Fees: 2% to 3% of the loan amount.

D. Underwriting Norms: Includes KYC verification, income assessment, and technical/legal evaluation of the property. Personal discussions and reference checks are integral to the process.

3. Micro Enterprise Loans (JLG)

Designed to empower women entrepreneurs, these unsecured loans are provided under a Joint Liability Group (JLG) model.

A. Purpose: To support income-generating activities among women.

B. Eligibility:

• Women organized into groups, providing mutual guarantees.
• Focus on marginalized communities seeking financial inclusion.

C. Loan Details:

• Loan Amount: Up to INR1 lakh.
• Tenure: 12 to 24 months.

4. Housing Loans

Keertana offers affordable housing finance solutions to assist individuals in purchasing or constructing homes.

A. Eligibility:

• Individuals with a minimum monthly income of INR20,000.
• Applicants should meet specific credit and property-related criteria as per Keertana's policies.

B. Loan Details:

• Loan Amount: INR3 lakh to INR10 lakh.
• Tenure: 3 to 12 years.

5. MSME Loans

These unsecured loans cater to the financial needs of Micro, Small, and Medium Enterprises (MSMEs), facilitating business growth and operational requirements.

A. Purpose: To meet personal or business financial needs of MSMEs.

B. Eligibility:

• Individuals or businesses engaged in MSME activities.
• Must demonstrate the capacity for loan repayment.

C. Loan Details:

• Tenure: 12 to 24 months.
• Interest Rate: Fixed rate, specifics to be determined based on assessment.

6. Personal Loans

Keertana offers unsecured personal loans to existing borrowers to address short-term financial requirements.

A. Purpose: To fulfill immediate financial needs of existing customers.

B. Eligibility:

• Existing borrowers with a satisfactory repayment history.
• Must meet internal credit assessment criteria.

C. Loan Details:

• Loan Amount: Up to INR5 lakh.

Innovation And Technology At Keertana Finserv

Keertana Finserv leverages cutting-edge technology to enhance its financial services, ensuring efficient and customer-centric operations. The company's commitment to technological advancement is evident in its mission to adapt to fast-changing technological advancements and maintain world-class IT systems supporting its business processes.

By integrating advanced technology into its operations, Keertana Finserv aims to provide hassle-free, affordable, and convenient credit access to its customers. This technological integration not only streamlines internal processes but also enhances customer experience, aligning with the company's vision to become the preferred financial intermediary for underserved segments of society.

Furthermore, Keertana Finserv's focus on innovation is reflected in its diverse range of financial products, including Gold Loans, Micro Enterprise Loans, Housing Loans, Loans Against Property, MSME Loans, and Personal Loans. Each product is designed to meet the unique needs of its customers, facilitated by the company's robust technological infrastructure. 

Key Strengths Of Keertana Finserv

Rapid Growth In Key Areas
Since FY’23, Keertana has grown significantly in multiple financial metrics:

• The total loan portfolio (AUM) increased by 159%, reaching INR1,584 crore in March 2024.
• The company’s net worth grew by 122%, reaching INR387 crore in March 2024.
• Revenue from operations jumped by 182%, reaching INR268 crore in FY’24.

Strong Loan Repayment And Low Defaults
Keertana has a very low level of bad loans, with a Gross Non-Performing Asset (GNPA) and Net Non-Performing Asset (NNPA) ratio of just 0.4% as of November 2024. This is due to its high loan repayment rate of 99.0%, ensuring strong financial health.

99.0% Loan Collection Efficiency
The company maintains an excellent collection rate of 99.0% because its loans are short-term (around 6 months) and backed by valuable assets as security. This helps in reducing default risk.
Strong Financial Backing
As of November 2024, Keertana had a net worth of INR566 crore and a healthy debt-to-equity ratio of 3.2x, ensuring financial stability. The company also received a capital investment of INR150 crore in FY23 and INR147.5 crore in FY24 from its promoters, strengthening its financial position further.

Experienced Leadership And Skilled Team
Keertana benefits from 25+ years of experience from its promoters and the guidance of an expert Board of Directors. The company has a skilled workforce of 2,730 employees, with an average of 10 years of relevant industry experience per employee. Each employee is responsible for managing loans worth INR75 lakh, demonstrating high efficiency and productivity.

Strong Relationships With Lenders
Keertana has built solid partnerships with over 40 financial institutions, including Kotak Mahindra Bank, IDFC First Bank, IndusInd Bank, Yes Bank, Oxyzo Financial Services, and Aditya Birla Finance Limited. These relationships provide the company with strong financial support and stability.

Source: Crisil Ratings²

Financial Snapshot Keertana Finserv

Source: audited financials, credit rating reports

To arrange the capital, Keertana Finserv also offers corporate bonds. These opportunities from the company are secured and are rated by credit rating agencies. On Grip Invest, investors invested in CREDIT ‘BBB+’ rated bonds of the company that offered fixed returns of up to 13.25%. To invest in similar, rated, regulated and secured fixed-income opportunities sign-up for Grip Invest today and start earning fixed returns:

References:

1. Keertana Finserv Pvt. Ltd., accessed from: https://keertanafin.in/team

2. CRISIL Ratings, accessed from: https://www.crisilratings.com/mnt/winshare/Ratings/RatingList/RatingDocs/KeertanaFinservPrivateLimited_May%2031,%202023_RR_320218.html

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