Credit Saison India is sharpening its strategy in the country's fast-growing MSME lending market by increasing the share of secured loans, a move that reflects both portfolio discipline and a broader push into Tier 2 and Tier 3 towns. The company said it expects secured lending to make up 30% of its loan book by the end of the fiscal year, signaling a deliberate rebalancing of risk even as it continues to scale.
The shift comes at a time when non-bank lenders and fintech-backed credit platforms are under pressure to balance growth with asset quality. For Credit Saison India, the move toward secured loans is not a retreat from MSME financing but an effort to deepen its presence in segments where collateral-backed credit can support more sustainable expansion. The company's current loan book is around Rs 25,000 crore, giving it enough scale to pursue a more diversified mix without abandoning its core business.
Rural Expansion Strategy
Credit Saison India's focus on Tier 2 and Tier 3 markets is significant because these geographies are increasingly central to India's credit growth story. Smaller cities and semi-urban clusters are home to a large share of micro, small and medium enterprises that remain underserved by traditional banks, yet they also present higher underwriting complexity. By increasing secured lending in these markets, the company appears to be targeting borrowers with tangible assets and more stable repayment profiles.
The strategy also suggests that the lender is looking beyond pure unsecured growth, which has been a defining feature of much of the digital lending boom. Secured loans generally carry lower credit losses and can improve portfolio resilience during economic slowdowns or periods of stress in consumer and business cash flows. For a lender with a large MSME exposure, that can be an important buffer.
Portfolio Mix Recalibration
A 30% secured-loan target by fiscal year-end is a meaningful portfolio shift, especially for a lender that has built scale in a market where speed and flexibility often dominate underwriting decisions. The move indicates that Credit Saison India is seeking a more balanced risk-return profile as it grows. It also points to a broader industry trend in which lenders are reassessing the pace of unsecured expansion amid tighter scrutiny and a more cautious credit environment.
The company's loan book of Rs 25,000 crore gives it room to absorb this transition while continuing to lend at scale. If executed well, the shift could help improve asset quality metrics, support funding confidence and create a more durable platform for branch-led expansion. The challenge will be to maintain growth momentum while ensuring that secured products remain relevant and competitive for MSME borrowers who often need quick access to working capital.
Branch Network Buildout
Credit Saison India also plans to open more branches across the country, underscoring the importance of physical presence in its next phase of growth. In MSME lending, especially outside major metros, branch networks can still play a critical role in sourcing borrowers, assessing business viability and building relationships with local entrepreneurs. Even in an era of digital underwriting, on-ground distribution remains valuable for credit decisions that depend on local knowledge.
The branch expansion is likely to complement the company's push into smaller towns, where demand for formal credit continues to rise as businesses seek alternatives to informal borrowing. For lenders, these markets offer scale, but they also require stronger monitoring and closer borrower engagement. A wider branch footprint can help bridge that gap.
Credit Saison India's latest direction reflects a pragmatic approach to growth: expand in underserved markets, but do so with a larger share of collateral-backed lending. In a sector where portfolio quality can quickly become a differentiator, the company is betting that a more secured book will support both resilience and reach as it builds out its MSME franchise.