Que: How does Namdev Finvest differentiate its MSME loan products from other NBFCs and what is Namdev’s process for segmenting MSME customers?

Ans: Namdev's competitive edge in secured MSME lending stems from its unique ‘Har Pal Aapke Saath’ vision, executed through a comprehensive 5 C's framework. The company differentiates itself through deep geographic penetration (45 of 70 districts in Rajasthan alone), empathy-driven phygital model, and exclusive focus on productive capital financing. Namdev's proprietary assessment models enable it to effectively serve the vast untapped MSME market while maintaining robust risk management.
The 5 C's Framework at Namdev:
• Character: In-house sales team for direct sourcing, Local loan officers from same communities to assess Character of the borrower and its family
• Cash Flow: Proprietary Assessed Income Model, Innovative surrogate measures, focus on serving underserved but creditworthy customers
• Collateral: Collateral / Secured asset is mandatory, whether SORP / SOCP
• Capital: Assessing how much capital the borrower has put in the business to understand the skin in the game with an exclusive focus on productive working capital financing
• Conditions: Deep understanding of local business dynamics, and assessing the quality of the lifestyle

Que: What is your relationship-based origination model and how does it differ from conventional lenders?

Ans: Namdev Finvest adopts a relationship-based origination model that sets it apart from traditional corporate lenders. Instead of relying solely on documentation and digital processes, the company emphasizes personal engagement by ensuring that a sales executive meets every loan applicant in person before disbursing a loan. This personal touch helps the company understand not only the financial background of the borrower but also their social profile, aspirations, and intent—an approach they refer to as the “touch and feel” model. The loan process is made simple and transparent with minimal documentation and quick turnaround. Adding to the effectiveness of this model, most of the sales team members are locals from the regions they serve, allowing them to build trust and source customers through local references and networks.

Namdev Finvest follows two distinct methods for sourcing electric vehicle (EV) loans. The first is the EV Retail model, where the company directly lends to individuals purchasing electric vehicles for personal or commercial use. The second is the Channel Partner model, which involves close collaboration with EV dealers and manufacturers to facilitate financing. Through these two models, the company ensures wide outreach and greater flexibility in serving the EV financing market.

Que: What is your credit underwriting process for EV vehicle loans?

Ans: The credit underwriting process for EV vehicle loans at Namdev Finvest begins with a thorough credit history and verification check of the applicant, co-applicant, and guarantors. It is crucial that none of them have a record of default. The company conducts detailed checks using credit bureau reports such as CIBIL to ensure there are no loan write-offs or settled accounts in the applicant’s history. Past and current loan track records, especially for vehicle loans, are also considered. In the next stage, the applicant's income proof is assessed, and six months of bank statements are verified. An earning male guarantor is required, and a positive residence field investigation is mandatory. For security, only registered vehicles are financed, and a Hypothecation Agreement (HPA) is maintained on the vehicle.

Que: How do government subsidies or incentives factor into your EV and solar loan offerings?

Ans: While Namdev Finvest does not directly finance government subsidies, the company acknowledges that various government initiatives significantly influence the growth of EV and solar adoption. These initiatives indirectly benefit NBFCs like Namdev Finvest by creating a more supportive environment for financing green assets. Investments in infrastructure, such as the development of EV charging stations, road networks, and renewable energy grids, enhance the practicality and attractiveness of EVs and solar products, thereby encouraging financing. Moreover, government policies offering incentives like reduced registration fees, road tax exemptions, and GST concessions reduce the total cost of ownership, which drives up loan demand. In the solar sector, programs like the PM-KUSUM scheme have helped increase the adoption of renewable energy, further boosting the need for accessible and efficient financing solutions. All these factors contribute to a favorable ecosystem that allows NBFCs to operate with more confidence and sustainability in these emerging sectors.

Que: Have you implemented any AI/ML models in credit scoring or fraud detection and how does Namdev ensure data security and compliance with RBI’s cybersecurity guidelines?

Ans: To enhance fraud detection and maintain compliance with RBI’s cybersecurity regulations, Namdev Finvest has implemented several important measures. The company has fortified its documentation verification processes by introducing pre-disbursement checks through the CERSAI platform, which has become a key internal control. Co-borrowers are also verified through CERSAI to ensure accuracy and accountability. In a move to mitigate risk, the company has temporarily suspended high-ticket loans. Furthermore, Namdev collaborates with third-party Risk Containment Unit (RCU) agencies to perform centralized pre-disbursement checks across all states. As an added layer of protection, field teams conduct verifications with local authorities such as Gram Panchayats and also collect No Objection Certificates (NOCs) to prevent fraud at the grassroots level.

Que: What are your core technology transformation initiatives and what impact are they expected to have on the business?

Ans: Namdev Finvest is undergoing a significant digital transformation across its operations. Among the current initiatives, the company has implemented LeadSquared for customer relationship management and loan origination, with API integration to ensure seamless data flow. OmniFin has been deployed to manage loan servicing and general ledger operations, while Adrenaline is being used to automate HR functions. For auditing, Audit 360 has been introduced to digitize internal processes. Looking ahead, the company is developing an Early Warning System platform for delinquency monitoring and aims to launch an automated credit underwriting system integrated with Hunter. Additional upcoming projects include a data warehouse with AI/ML capabilities, enhanced fraud management systems, and tools to automate anti-money laundering processes and board meeting workflows. These initiatives are expected to yield major benefits, including reduced turnaround times, improved efficiency, error minimization, better customer experience through digital channels, and more robust risk management through advanced analytics. The infrastructure being developed is scalable and designed to support the company’s long-term growth.

Que: What short-term business impacts are expected from this digital transition?

Ans: As with any major digital transformation, the initial phase of implementation is expected to bring short-term disruptions. Namdev Finvest anticipates that loan processing times may slow down by about 15–20% during the migration period. Field teams may also experience temporary workflow adjustments as they adapt to new systems and processes. However, these challenges are considered part of the transition, and the company expects operations to normalize and stabilize by the third quarter of 2025.

Que: What is the loan-to-value (LTV) ratio for your EV and solar loans and what is your policy on battery financing and maintenance in EV loans?

Ans: Namdev has recently ventured into the Electric Vehicle (EV) sector, aiming to empower the dreams of both rural and urban communities. In this initiative, the collateral nature is Vehicle Hypothecation, making the process streamlined. The ticket size for our EV loans ranges from a minimum of 50,000 to a maximum of 3,00,000, offering flexibility to suit diverse financial needs. With a tenure spanning from a minimum of 12 months to a maximum of 48 months, Namdev ensures that the repayment plans align with the convenience of our customers. Additionally, we provide up to 70% Loan to Value (LTV), making it easier for individuals to embark on the journey of electric mobility. The Internal Rate of Return (IRR) offered ranges between 15-28%, reflecting our commitment to providing competitive and beneficial financial solutions in the evolving landscape of electric vehicles. Namdev is dedicated to turning dreams into reality, making sustainable and eco-friendly transportation more accessible to all.

Namdev Finvest Pvt. Ltd. is at the forefront of creating a greener and more sustainable society by actively contributing to the electric vehicle (EV) revolution in India. With the domestic EV market predicted to grow significantly, we are committed to supporting this positive shift by offering loans for the installation of solar cells and the purchase of electric vehicles. This initiative not only reduces the carbon footprint but also creates a positive social impact by promoting ecologically-friendly goods and services. Our efforts extend beyond environmental concerns, as we aim to enhance financial inclusion, generate income, and empower women. The ticket size for this innovative product ranges from a minimum of 1 lakh to a maximum of 25 lakhs, with a flexible tenure of 12 to 36 months. Additionally, we provide up to 80% Loan to Value (LTV), making these sustainable choices more accessible, and our Internal Rate of Return (IRR) falls within the competitive range of 18 to 24%, aligning financial benefits with environmental responsibility. Namdev Finvest Pvt. Ltd. strives to drive positive change in both environmental and social landscapes across the country.

Que: What are your next focus areas for product innovation or diversification?

Ans: We are likely to continue our growth vertically in the major present states today i.e. Rajasthan, UP, MP, Gujarat, Bihar and Uttarakhand. In FY26, we are planning to add about net 30-40 branches, about ~40% of the branches to be opened in Rajasthan to further penetrate in the core geography and rest would be in other geographies. Target would be to improve productivity and portfolio quality in the other geographies with a steady expansion plan.