Archive · 15 Sep 2026
Aye Finance sees strong loan growth despite possible rate hikes
Aye Finance gives loans to very small businesses.
The company expects its lending to grow by 25%-30% through March 2027.
Its boss, Sanjay Sharma, says customers are receiving loans and making repayments more reliably.
The company says the quality of its loans remains stable.
Its credit costs fell in the latest quarter.
Aye Finance expects its borrowing costs to decrease as it replaces expensive loans with cheaper funding.
It believes this could protect or even improve its profit margin if interest rates rise.
The company plans to keep focusing on small businesses rather than gold loans.
Aye Finance expects loan growth of 25%-30% through the financial year ending March 2027.
Managing Director Sanjay Sharma said healthy disbursements, improved collections and stable asset quality support the outlook.
The lender expects credit costs of about 3.75%, plus or minus 25 basis points, and return on assets of 4%-4.5%.
Aye Finance’s credit costs fell to 4% in the April-June quarter from 4.8% previously, with further improvement expected.
The company expects borrowing costs to fall by 30-40 basis points from last year’s average, even if policy rates rise.
- Who
- Aye Finance and its Managing Director, Sanjay Sharma.
- What
- The lender expects 25%-30% loan growth through March 2027 while forecasting lower borrowing costs and stable asset quality.
- When
- The outlook covers the financial year ending March 2027; the latest cited credit-cost figures are for the April-June quarter.
- Where
- Aye Finance is based in Gurugram, and its shares trade on the NSE.
- Why
- Healthy disbursements, improving collections, stable asset quality and the replacement of expensive borrowings with cheaper funding are supporting the outlook.
- Expected loan growth
- 25%-30% through the financial year ending March 2027
- Expected credit costs
- About 3.75%, plus or minus 25 basis points
- Expected return on assets
- 4%-4.5%
- Latest credit costs
- 4% in the April-June quarter, down from 4.8% in the previous quarter
- Incremental borrowing cost
- About 10.2%
- Blended borrowing cost
- 10.87% last year
- Loan mix
- About 77% hypothecation-based business loans and 22% Micro LAP loans