NE BUSINESS BUREAU
CHENNAI, OCT 5
For small businesses operating outside major commercial centres, access to timely credit can often determine whether an expansion plan becomes a reality. Seeking to bridge this last-mile financing gap, MSME-focused NBFC Saarathi Finance has opened two new branches in Tirupathur and Chengalpattu, taking its Tamil Nadu network to 19 branches.
- Two new branches in Tirupathur, Chengalpattu target growing financing needs of small businesses
- Expansion strengthens lender’s footprint across Tamil Nadu’s emerging MSME and industrial clusters
- New branches aim to support working capital, business expansion and entrepreneurial growth
- Tamil Nadu’s diverse MSME ecosystem drives demand for accessible formal credit
- Saarathi Finance crosses 100-branch milestone across six states since commencing operations in April 2025
The expansion comes as Tamil Nadu’s large and diverse MSME ecosystem continues to generate demand for formal financing across manufacturing, trade, services and allied business activities. The company said the new branches are intended to bring its lending solutions closer to local entrepreneurs and help address financing requirements ranging from working capital to business expansion.
At the national level, Saarathi Finance has now opened more than 100 branches across six states, underlining its strategy of expanding into underserved semi-urban and rural markets and strengthening last-mile financial connectivity.
Tirupathur, in northern Tamil Nadu, is emerging as an important agriculture centre, with a range of crops cultivated in the region. The surrounding areas also have a significant industrial base, including leather manufacturing with a substantial export orientation.
Chengalpattu, meanwhile, is developing rapidly as an industrial corridor and is strategically located along the Grand Southern Trunk (GST) highway, providing access to a growing ecosystem of businesses and enterprises.
A wider credit window for Tamil Nadu’s MSMEs
Tamil Nadu’s strong MSME base makes the state a significant market for formal credit. According to NABARD’s State Focus Paper for FY2025-26, the MSME sector accounted for approximately 37% of the state’s projected priority-sector credit potential of ₹9.38 lakh crore.
The numbers underline the scale of financing opportunities across the state and the importance of improving access to institutional credit, particularly for entrepreneurs operating in semi-urban and emerging business centres.
Against this backdrop, Saarathi Finance’s branch expansion is aimed at enabling closer engagement with local businesses and developing a better understanding of their specific financing requirements.
The company offers Loan Against Property (LAP) solutions with ticket sizes ranging from ₹5 lakh to ₹35 lakh, enabling entrepreneurs to leverage the value of their assets to meet business-related funding needs.
From branch expansion to last-mile financial inclusion
Having commenced operations in April 2025, Saarathi Finance has been steadily building its physical presence across underserved markets.
The company’s expansion strategy reflects a broader shift in MSME lending, where accessibility, speed and customised credit solutions are increasingly important for small businesses that may not always fit conventional lending models.
By establishing branches closer to business clusters, Saarathi Finance said it seeks to combine physical customer engagement with a technology-driven lending approach.
Commenting on the expansion in Tamil Nadu, Ronak Jain, Chief Credit Officer, Saarathi Finance, said,
“Tamil Nadu is an important market for Saarathi Finance, given its strong base of MSMEs and entrepreneurs across diverse business segments. With the opening of 19 branches in the state, we are strengthening our presence closer to the customers we serve.”
“Tirupathur and Chengalpattu present an opportunity for us to engage with local businesses and understand their financing needs more closely. Our focus will remain on providing hassle-free, quick and timely access to credit that can support working capital requirements, business expansion and the growth aspirations of entrepreneurs,” he added.
Jain further said the company would maintain its emphasis on responsible expansion as it scales up its operations.
“As we continue to expand our footprint in Tamil Nadu and across India, our focus remains on sustainable growth, prudent risk management and building a technology-driven lending franchise that creates long-term value for our customers and stakeholders,” he said.