Image Source : KNN India
Paisalo Digital Limited, a well-established non-banking financial company (NBFC) focused on inclusive lending, is moving ahead with a plan to issue non-convertible debentures (NCDs) totaling Rs 500 million. Here’s what this new bond issue means for investors, the company’s financial position, and its future as it continues to back India’s small businesses and underserved borrowers.
Issuance Details and Purpose
Paisalo Digital’s board has scheduled a meeting for August 5, 2025, to finalize and approve the NCD issue, which will be conducted via private placement.
These will be listed, secured debentures—meaning they are backed by company assets and can be traded in secondary markets, offering an added sense of security and liquidity for investors.
The funds raised are expected to be channeled into expanding lending operations, supporting new loan disbursements, and fortifying the company’s capital base at a time when credit demand in rural and semi-urban India is robust.
Recent Financial Milestones
In the June 2025 quarter, Paisalo Digital delivered its highest-ever total income: Rs 218.7 crore, a 17 percent increase over the previous year.
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The company’s customer base grew by 15 lakh in a single quarter, taking total customers served past 1.1 crore—a milestone that highlights Paisalo’s reach and impact in financial inclusion.
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Asset under management (AUM) rose 14 percent year-on-year to Rs 5,230 crore; net interest income climbed 20 percent to Rs 124.4 crore.
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Disbursements for the quarter reached Rs 758 crore, up 16 percent from last year.
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Asset quality remained strong with GNPA at 0.85 percent and NNPA at 0.68 percent. The company’s capital adequacy ratio is exceptionally healthy at 39.5 percent.
Market Position and Strategy
Paisalo Digital’s growth is driven by its co-lending partnership with SBI, allowing the company to expand its MSME and SME loan book efficiently across many states.
With 50 new branches opened this quarter, Paisalo’s total branch network stands at 401, further strengthening its distribution and customer engagement.
The planned NCD issue follows on the heels of other successful capital-raising activities, including a recent listing of $50 million in foreign currency convertible bonds due 2029—demonstrating strong market access and investor confidence.
What Does This Mean for Investors?
NCDs from Paisalo Digital offer a fixed income opportunity in an NBFC with deep experience in the rural lending space. As secured and listed instruments, they provide an added layer of comfort to debt investors.
The company’s financial discipline, high capital adequacy, and strong asset quality may make this issuance appealing to both institutional and retail buyers.
Industry Outlook and Future Plans
Demand for small-ticket loans in both rural and semi-urban markets remains healthy, driven by growing micro-entrepreneurship and the need for working capital among small businesses.
The capital raised from NCDs will not only support near-term lending growth but also position Paisalo to take advantage of fresh credit demand as India’s economy continues its recovery.
The move also reflects a broader trend of NBFCs tapping capital markets for growth funds and maintaining diversified funding sources amid changing interest rate environments.
Source: Goodreturns, DSIJ, Moneycontrol, and Paisalo Digital’s corporate updates and press releases dated August 5, 2025.
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