Kanakadurga Finance Limited is Non-Banking Finance Company based out of Vijayawada and focused on providing vehicle loans. The Company was established in 1994 by Mr. S. Lakshmi Narayana and is currently managed by him and his two sons. It has carved a niche for itself by providing secured credit in underserved markets and has multiple products in its portfolio which includes three wheeler, two wheeler and SME loans. Majority loans by the Company are used by the borrowers to acquire assets to earn a livelihood which ensures that the borrowers prioritize servicing the loan over discretionary expenditure. The Company has built a network of over 50 branches which spreads across five states including Andhra Pradesh, Telangana, Tamil Nadu, Karnataka and Gujarat. It has strong ground level presence for collection and recovery and thorough understanding of the markets where it operates which enables the Company to have low NPA levels.
BanyanTree's investment will enable the company to shore up its equity to meet its growth requirement and to expand the portfolio by introducing products like used CV financing.