SK Finance taps unbanked and underbanked customers in rural & semi-urban India

Ahmedabad: SK Finance, founded in 1994 by Rajendra Kumar Setia, has emerged as one of key players in addressing the lack of institutional credit for small transporters and traders across India.

“We operate through 648 branches across 12 states with the support of over 12,000 employees and a referral network of more than 10,700 connectors,” the company official stated in an interaction today.

“Our total Assets Under Management (AUM) stood at ₹13,261 crore as of March 2025, with vehicle finance accounting for over 70% of this portfolio,” the company official shared, adding that – Of this, approximately 78% is attributed to small-ticket used vehicle financing. The used vehicle financing market in India is witnessing significant growth, driven by value-conscious consumers, rising rural consumption, and increased availability of formal credit. This trend is closely linked to growing economic activity in rural and semi-urban areas, especially for products serving basic consumption needs.

While small commercial vehicles make up the largest share of the portfolio, SK Finance also provides financing for cars, tractors, and two-wheelers.

“We also offer small-ticket MSME loans fully secured by self-occupied residential and commercial properties, which currently comprise 23% of our total loan book,” the company said.

By focusing on customers underserved by mainstream banking, particularly in rural and semi-urban areas, SK Finance believes it is bridging the credit gap through tailored solutions and unlocking economic potential in underserved segments by offering customized vehicle financing and MSME credit.

The company has emphasized its use of technology as a key differentiator. “We have deployed best-in-class technology across our entire loan lifecycle—from application and underwriting to collections and customer service. Our tech-enabled processes, combined with local insights, allow us to effectively assess customer creditworthiness,” the company official stated.

SK Finance has recently filed its Draft Red Herring Prospectus (DRHP) with a total IPO size of ₹2,200 crore.

“The IPO will comprise a ₹500 crore primary issue and a ₹1,700 crore offer for sale. The proceeds will be used to strengthen Tier-1 capital and support future growth,” the company shared in the filing. DeshGujarat