Navi Finserv Limited

Navi Technologies Limited (NTL) is a technology-driven financial products and services company in India focusing on the digitally connected young middle-class population of India. The company owns and operates through an online app ‘Navi’. Incorporated in 2018, the Sachin Bansal backed company sells financial products like loans, health insurance and mutual funds. He currently holds 98% of NTL. 
Navi Finserv Limited offers lending products like personal loans and home loans under the “Navi” brand. The company also offers microfinance loans, under the “Chaitanya” brand through their Subsidiary, Chaitanya India Fin Credit Private Limited (CIFCPL). During the financial year ended March 31, 2023, the company disbursed 18,70,683 personal loans amounting to ₹ 11,500.41 crore, with an average ticket size of ₹61,477 covering over 96% of all Indian pin codes. Since the launch of home loans in February 2021, 1,938 loans were disbursed with an average ticket size of ₹64 lakhs during the financial year ended March 31, 2023.

Headquartered in Bengaluru, Karnataka, the digital-first company is present in all states and union territories of India. Using the technology systems developed by their promoter, it allows the company to make financial services available to a wide array of customers.

Navi Finserv Limited caters to the changing needs of the customer through innovative products. At Navi, they have different products to offer such as Personal Loans, Home loans, and Loans against Property. Let's deep dive to understand more about these products:

1. Personal  Loan: To meet instant financial requirements Navi Finserv gives personal loans up to ₹ 20 lakh with an interest rate starting at 9.9% p.a, with a loan tenure of up to 72 months, using a 100% paperless process
2. Home Loan: In 2021, Navi launched home loans for ready-to-move-in, under construction, and self-constructed property: the loan has instant approval up to ₹ 5 crores with interest rate starting from 8.55% p.a. They have 0 foreclosure charges, tenure of up to 30 years and a Loan to value ratio (LTV) of up to 90%.
3. Loan Against Property for constructed property: the loan has instant approval up to ₹ 5 crores with an interest rate starting from 8.55% p.a. a tenure of up to 15 years and give a Loan value ratio (LTV) of up to 70%.

Their long-term goal is to simplify the legal processes for approving home loans by building a network of pre-approved residential projects. It will also shorten the time of processing claims and minimise loan disbursal time.

Domestic Credit Rating for 3 years by:

(₹ in Cr)

1. Comfortable asset quality with GNPA and NNPA at 1.70% and 0.30%.
2. Well capitalized, having net worth of more than ₹ 2000 Crore with CRAR of 28.37%.
3. Diversified set of lenders – HDFC Bank, SBI, ICICI Bank, Kotak Mahindra Bank, etc.

1. The company’s portfolio is highly concentrated in unsecured space with personal loans forming ~90% of AUM.
2. The majority of Navi’s portfolio has been built recently. The performance of the loan portfolio over multiple business cycles is yet to be seen.
   Click here to explore Navi Bond on Wint Wealth