NBFC Purple Finance to Enter Affordable Housing Segment and Launch New MSME Products

Non-Banking Financial Company (NBFC) Purple Finance is expanding its lending portfolio with a planned entry into the affordable housing finance segment. The strategic move, aimed at rural and mass-market borrowers, has received clearance from the company's Board of Directors.

To establish its presence in the housing finance sector, Purple Finance announced it will evaluate various options. These include acquiring or investing in an existing Housing Finance Company (HFC) or setting up a dedicated subsidiary, subject to necessary regulatory approvals.

The expansion follows the company's recent acquisition of Saksham Gram Credit Pvt. Ltd. Following that transaction, the group's combined Assets Under Management (AUM) reached Rs 853 crore. The network currently spans 205 branches and serves over 1.6 lakh borrowers.

Amitabh Chaturvedi, Executive Chairman of Purple Finance, stated that affordable housing finance provides a natural opportunity to deepen customer relationships in Tier III and Tier IV markets while supporting home ownership aspirations.

Alongside the housing finance initiative, the board has approved the launch of two shorter-tenor products tailored for Micro, Small, and Medium Enterprises (MSMEs). These new offerings are named Purpal Saral and Saksham LAP.

"Purple Finance's decision to enter the affordable housing segment is a strategic step toward capturing growth in Tier III and Tier IV markets. By leveraging their existing network of over 1.6 lakh borrowers and integrating recent acquisitions like Saksham Gram Credit, the company is well-positioned to scale its operations. Furthermore, introducing tailored MSME products like Purpal Saral and Saksham LAP will help diversify their lending portfolio and address specific credit demands in the mass market." — Dr. Shishir Gupta, Founder & CEO, StartupLanes