In an exclusive interaction with Finance Outlook India, Shalya Gupta, MD & CEO of Credifin Limited—a specialized NBFC operating across 200+ locations in India—shares his insights on how non-banking financial companies are revolutionizing access to credit for underserved segments. He discusses the strategic approach NBFCs are taking to bridge the financing gap for MSMEs in Tier 2 and Tier 3 markets through innovative secured loan products, while simultaneously driving India's electric vehicle adoption journey by financing e-rickshaws and e-loaders for first-time borrowers. With around 15 years of experience spanning finance, technology, and social sectors, and holding qualifications including a Post-Graduate Diploma in Management from London School of Economics and Lean Six Sigma Black Belt certification, Shalya Gupta brings a unique blend of financial acumen and technological innovation to the NBFC space. Since joining Credifin in 2021, he has been instrumental in scaling the company's AUM to Rs. 375 crore+ while building proprietary AI-driven underwriting systems and establishing a robust credit risk management framework that enables the company to serve customers with limited formal financial footprints, thereby fostering grassroots economic growth across India's heartland.
How are NBFCs bridging the credit gap for MSMEs through secured loans against property, and what impact does this have on small business growth in Tier 2 & Tier 3 markets?
NBFCs have played a pivotal role in addressing the credit gap for MSMEs, particularly in Tier 2 and Tier 3 cities. These are markets where traditional banks often lack penetration or the operational flexibility to cater to the nuances of local businesses.
Unlike conventional financial institutions that rely heavily on formal credit histories and rigid underwriting frameworks, NBFCs have honed their expertise in understanding informal economies. For instance, we have developed risk assessment models tailored to borrowers with limited or no formal financial footprints. Our field teams engage directly with entrepreneurs, often assessing cash flows, business potential, and collateral informally but effectively.
This allows us to design secured loan products, like loans against property, that are not only accessible but also aligned with the actual repayment capacity of the borrower. The impact is tangible: MSMEs in these regions are now able to invest in machinery, expand their operations, and formalize their businesses. We’re not just providing credit, we’re enabling grassroots economic growth.
What role are NBFCs playing in financing India’s EV adoption journey, especially in the affordable mobility segment like e-rickshaws and e-loaders?
The affordable EV segment, particularly e-rickshaws and e-loaders, is being almost entirely financed by NBFCs today. The large banks have yet to establish a foothold in this space, often due to concerns around asset class risk, ticket size, and lack of formal income proof among borrowers.
NBFCs, on the other hand, have stepped in decisively. We understand the dynamics of this customer base, primarily first-time borrowers from semi-urban and rural backgrounds. By creating flexible financing models, we’re not just underwriting EVs, we’re underwriting livelihoods.
Our EV financing portfolio is growing rapidly because we’ve built operational muscle to underwrite these vehicles efficiently, manage collections at scale, and most importantly, work closely with manufacturers and dealers to de-risk the value chain. We see EV financing not just as a product, but as a powerful enabler of sustainable, income-generating mobility.
With Credifin operating across 200+ locations, how important is regional penetration in expanding financial access for underserved borrowers?
Regional penetration isn’t a side strategy for us, it’s core to our identity. At Credifin, we view Bharat not as a geography, but as a mission. Operating in 200+ locations isn’t about footprint alone - it’s about inclusion, diversification, and depth.
Local presence allows us to understand the economic pulse of each region and the issues like what drives the local MSMEs, what kind of capital they need, and how best to structure that capital. More importantly, regional diversification helps mitigate concentration risk(economic, climatic, or political), while allowing us to build a more resilient portfolio.
We don’t just replicate the same product in every region. Our offerings, from MSME loans and LAP to EV financing and school fee loans, are tailored to the unique socio-economic context of each area. We’re building lifetime value with our customers by being part of their journey, from one credit need to the next.
Also Read: Financial Management in NBFC-MFIs: Growing with Prudence
What are the key risks and opportunities in balancing a dual portfolio of MSME mortgage loans and EV financing for NBFCs?
In my view, managing a dual portfolio is not a risk, it’s a strategic advantage, provided it’s executed with operational discipline.
Yes, there’s an initial cost in setting up dedicated teams, technology infrastructure, and monitoring mechanisms. But the payoff is substantial. A diversified product suite allows us to maximize customer lifetime value. For instance, a customer who starts with an EV loan may graduate to a loan against property to expand their garage or workshop. Or an MSME client with a clean repayment history may be an ideal candidate for a second line of credit.
It also improves cross-sell and referral opportunities, reduces customer acquisition costs, and deepens engagement. The key lies in robust credit appraisal mechanisms and a unified customer view across product lines. When done right, product diversification becomes not just feasible but accretive to both margins and portfolio quality.
How will evolving regulatory frameworks, technology adoption, and consumer demand shape the future of specialized NBFCs focusing on MSMEs and EV financing?
We’re at a defining moment for the NBFC industry, what I call the "intelligence revolution" in financial services. Regulatory frameworks are becoming sharper and more data-driven, and rightly so. Only those NBFCs that are agile enough to integrate compliance with cutting-edge technology will be able to scale sustainably.
At Credifin, we’ve embraced this challenge head-on. We’ve built proprietary loan origination and management systems with AI-driven underwriting and customer engines. These tools not only enhance our decision-making but reduce our cost-to-serve, enabling us to pass on the benefit to our customers in the form of faster disbursals and better pricing.
On the consumer side, demand is evolving rapidly. Customers don’t just want loans: they want relevant, contextual, and timely solutions. For example, EV financing today must consider variables like battery health, charging patterns, usage type (commercial or personal), and expected lifecycle. Similarly, MSMEs may need a mix of term loans, working capital, and invoice financing and not one-size-fits-all products.
In parallel, there is a clear shift towards financial services in Tier 2, 3, and 4 towns. Here, speed of service and affordability of credit will determine market leaders. As interest rates converge and margins tighten, operational efficiency that is enabled by tech will become the ultimate differentiator.
The future belongs to NBFCs that can marry scale with specialization, compliance with innovation, and access with empathy. At Credifin, we’re building precisely for that future.
