Navi Finserv: Revolutionising Digital Lending With AI & Fintech

Introduction To Navi Finserv Limited

Navi Finserv Limited (NFL) is a non-deposit-taking, systemically important Non-Banking Financial Company (NBFC-ND-SI) registered with the Reserve Bank of India (RBI). Established in February 2012, the company initially focused on lending to individuals, MSMEs, and rural credit. However, its transformation began in October 2019, when it was acquired by Navi Technologies Ltd. (NTL), under the leadership of Sachin Bansal, co-founder of Flipkart. With a strong focus on digital lending, NFL launched personal loans in May 2020 and housing loans in December 2020, catering primarily to urban middle-income customers. The company's operations are entirely app-based, with all loan origination happening through the Navi mobile app, ensuring a seamless, paperless experience for borrowers across India.

In addition to its lending business, NFL actively participates in corporate treasury operations, investing in equities, mutual funds, alternative investment funds (AIFs), bonds, debentures, pass-through certificates, and sovereign funds. As of September 30, 2023, the company had over 13 lakh active customers and managed an Assets Under Management (AUM) of INR 9,891 crore. In FY 2024, NFL reported a Profit After Tax (PAT) of INR 660 crore, with a Return on Managed Assets (ROMA) of 5.8%, reflecting its strong financial performance. Despite regulatory restrictions imposed by the RBI in October 2024, which were lifted in December 2024 following process improvements, NFL has continued to honor its financial commitments. With a nationwide lending presence and a commitment to regulatory compliance, Navi Finserv is redefining fintech-driven lending in India.

Board Of Directors Of Navi Finserv

As of February 27, 2025, the Board of Directors of Navi Finserv Limited includes:

1. Mr. Sachin Bansal: Member of the IT Strategy Committee, Stakeholder Relationship Committee, Finance Committee, and Debenture Committee.
2. Mr. Ankit Agarwal: Chairperson of the Asset and Liability Committee, Finance Committee, and Debenture Committee; Member of the IT Strategy Committee and Risk Management Committee.
3. Mr. Ranganathan Sridharan: Chairperson of the IT Strategy Committee, Risk Management Committee, and Stakeholder Relationship Committee; Member of the Corporate Social Responsibility Committee and Audit Committee.
4. Mrs. Usha A Narayanan: Chairperson of the Corporate Social Responsibility Committee, Audit Committee, and Nomination and Remuneration Committee.
5. Mr. Arindam Ghosh: Member of the Corporate Social Responsibility Committee, Stakeholder Relationship Committee, Audit Committee, and Nomination and Remuneration Committee.
6. Mr. Amit Jambotkar: Member of the IT Strategy Committee.
7. Mr. Ankit Surana: Member of the Asset and Liability Committee.
8. Mr. Mahak Khabia: Member of the Asset and Liability Committee.
9. Mr. Aby George Eapen: Member of the Risk Management Committee and Asset and Liability Committee.
For more detailed information, please refer to the official governance documentation of Navi Finserv Limited.

Source: Navi Finserv¹

Products Offered By Navi Finserv

Navi Finserv offers a range of financial products designed to meet various customer needs. Below is an overview of their key offerings:

1. Cash Loans

Navi Finserv provides instant cash loans to help customers address immediate financial requirements. Eligible individuals can apply for loans up to INR 20 lakh through a fully digital and paperless process. The interest rates are competitive, reaching up to 26%, with flexible repayment terms ranging from 1 to 84 months. Notably, there are no foreclosure charges, allowing customers to repay the loan ahead of schedule without incurring additional fees.

2. Housing Loans

For those looking to purchase or construct a home, Navi Finserv offers housing loans suitable for ready-to-move-in, under-construction, and self-constructed properties. Applicants can secure loans up to INR 5 crore with interest rates up to 13%. The application process is streamlined for instant approval, and there are no processing fees or foreclosure charges. Borrowers can choose repayment periods of up to 30 years, with a loan-to-value (LTV) ratio of up to 90%, making homeownership more accessible.

3. Loan Against Property (LAP)

Navi Finserv also offers loans against property for individuals seeking funds by leveraging their constructed properties. Customers can obtain loans up to INR 5 crore with interest rates up to 14%. The process ensures instant approval, zero processing fees, and no foreclosure charges. Repayment terms can extend up to 20 years, with an LTV ratio of up to 70%, providing a viable option for those needing substantial funds for personal or business purposes.

Innovation And Technology At Navi Finserv

Navi Finserv leverages advanced technology to revolutionise financial services, focusing on automation and data-driven solutions. By integrating data science and machine learning, the company has developed a robust banking platform that enhances agility, adaptability, and scalability, setting it apart from traditional banking systems.

This tech-first approach enables Navi Finserv to offer a seamless, paperless experience for products like instant cash loans and housing loans, accessible through their user-friendly mobile application. The company's commitment to innovation is further demonstrated by its continuous investment in technology and data science, ensuring efficient loan disbursements and superior customer service.

Key Strengths Of Navi Finserv

1. Strong Financial Support From the Promoter

Navi Finserv has received significant financial backing from its promoter, Sachin Bansal, who invested INR 1,950 crore in FY20 through Navi Technologies Limited. This investment boosted the company's net worth from INR 80 crore in March 2019 to INR 952 crore in March 2020. With two additional rounds of funding, the company’s net worth further increased to INR 2,933.6 crore by March 2024, resulting in a healthy capital adequacy ratio of 28.4%, ensuring financial stability and growth.

2. Increasing Profitability

Although Navi Finserv reported a loss in FY22 due to high marketing expenses for its housing loan launch and branding efforts, its financial performance improved significantly in FY23. The company reduced marketing costs, started charging higher premiums for repeat borrowers, and optimised credit costs, leading to higher profitability. For FY24, it reported a Profit After Tax (PAT) of INR 668.8 crore, showcasing strong business growth.

3. Wide Digital Reach

Unlike traditional banks and NBFCs, Navi Finserv operates entirely online, offering personal loans and home loans through its Navi mobile app. This digital-first approach eliminates the need for physical branches, allowing the company to reach a broader customer base across India. By leveraging technology, Navi makes financial services more accessible and convenient for users.

4. Advanced Risk Management And Loan Processing

Navi Finserv uses data science and machine learning developed by Navi Technologies for loan underwriting, pricing, and risk management. This automated process gives the company a major advantage over traditional lenders, who still rely on manual document processing and time-consuming credit evaluations. This AI-driven approach ensures faster loan approvals, better risk assessment, and improved efficiency.

5. Efficient Loan Collection System

Navi Finserv has a strong digital collections system, which includes automated reminders, follow-up calls, and on-ground collection teams. The company uses back-end analytics and borrower payment behavior scorecards to manage debt efficiently. As a result, personal loan collection efficiency reached nearly 99% in FY23, demonstrating the effectiveness of its repayment management system.

6. Integrated Financial Ecosystem For Cross-Selling

The Navi App provides customers with access to a range of financial products, creating an integrated ecosystem. Once a customer signs up for one financial product, such as a loan, they can easily explore and use other services like insurance, mutual funds, and investment products. This cross-selling approach helps Navi retain customers and offer them a complete suite of financial solutions.

With its strong financial backing, AI-powered lending, wide digital reach, and efficient loan collection strategies, Navi Finserv is emerging as a leading fintech NBFC in India, providing fast, accessible, and technology-driven financial solutions to a growing customer base.

Source: CRISIL²

Financial Snapshot Navi Finserv

Source: audited financials, credit rating reports

To arrange the capital, Navi 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 CRISIL ‘A’ rated bonds of the company that offered fixed returns of up to 10.2%. To invest in similar, rated, regulated and secured fixed-income opportunities, sign-up for Grip Invest today and start earning fixed returns:

References:

1. Navi Finserv Limited, accessed from: https://navi.com/finserv/governance/committees-of-board

2. CRISIL Ratings, accessed from:

https://tinyurl.com/crisilnavi

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