Equitas Small Finance Bank, under the leadership of its MD and CEO, PN Vasudevan, is set to expand its product offerings with the introduction of personal loans in the second half of the financial year 2023-24. This strategic move aims to cater to the growing demand for personal financing solutions and further enhance the bank's portfolio.
The decision to launch personal loans in the latter half of the financial year aligns with Equitas’ commitment to expanding its product suite to meet the evolving needs of its customer base.
“The new products that we are looking at, like a personal loan or credit card, etc. are going to take some time; probably the personal loan should get launched in the second half of this year. We are not introducing too many new products in a short timeframe, which may have a lower yield,” said Vasudevan in an interview with CNBC-TV18.
By venturing into personal loans, Equitas Small Finance Bank aims to leverage its expertise in understanding customer requirements and delivering tailored financial solutions. With an emphasis on providing competitive interest rates, convenient repayment options, and a streamlined application process, the bank seeks to position itself as a preferred choice for individuals seeking personal financing support.
Also, with a keen focus on providing financial services to underserved segments, Equitas Small Finance Bank has successfully established a strong foothold in the market. Currently, vehicle finance constitutes a significant portion, accounting for 25 percent of the bank's loan book. Recognizing the potential for growth in this sector, the bank has been actively driving its vehicle finance segment forward.
In a notable breakdown, 40 percent of the bank's vehicle finance originates from new commercial vehicles, while the remaining 60 percent is contributed by used cars and used commercial vehicles. This balanced approach allows Equitas Small Finance Bank to cater to a wide range of customers, including both individual buyers and businesses in need of vehicle financing solutions.
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