Unifinz Capital India Limited has received a credit rating assignment from Crisil Ratings Limited for its non-convertible debentures worth Rs 170 crore. The rating agency assigned a 'Crisil BBB-/Stable' rating to the instruments, reflecting the company's adequate capital position and healthy earnings profile.

Rating Details and Rationale

Crisil Ratings assigned the BBB-/Stable rating to two tranches of non-convertible debentures:

The rating reflects the company's adequate capital position with networth of Rs 145 crore and gearing of 1.2 times as on December 31, 2025. The stable outlook indicates Crisil's expectation that Unifinz will maintain adequate capitalisation metrics, though asset quality performance and its impact on profitability will be demonstrated over time.

Business Operations and Performance

Unifinz, incorporated in 1982, commenced retail lending operations under the brand name 'Lendingplate' in March 2022. The company operates as a digital lender, offering unsecured personal loans primarily to salaried individuals pan-India. The loans typically range from Rs 5,000 to Rs 2.5 lakhs for tenures of 20 days to 12 months, with an average tenor of 2-3 months.

The company's financial performance showed significant improvement during the nine months ended December 2025:

Key Strengths and Challenges

The rating agency highlighted several strengths supporting the rating assignment. The company maintains adequate capitalisation metrics with equity infusion of approximately Rs 57 crore from shareholders since inception, of which Rs 54 crore was received in fiscal 2025. The healthy earnings profile is supported by the high-yielding nature of loans, with processing fees contributing a sizeable proportion of revenues at approximately 34.5% of total income as of December 31, 2025.

However, Crisil also identified key challenges that partially offset these strengths. The modest scale of operations remains a concern, with total disbursements of Rs 1,807 crore during the nine months ended December 2025 while AUM stood at Rs 376 crore as on December 31, 2025. The company faces asset quality vulnerabilities given the inherent risk profile of borrowers, with 90+ days past due adjusted for write-offs standing at 24.1% of AUM as on December 31, 2025.

Asset Quality and Risk Profile

The company's asset quality metrics reflect the challenges inherent in unsecured lending. As on December 31, 2025, 90+ days past due stood at 2.2% of AUM, compared to 1.3% as on March 31, 2025. When adjusted for the last 12 months write-offs, this figure increased to 24.1% of AUM. On a disbursement basis, 90+ days past due adjusted for write-offs improved to 4.4% as on December 31, 2025.

The borrower profile comprises customers with Bureau/CRIF scores of 500-699, with the salaried-to-self-employed ratio standing at 97:3 and repeat customer base at 80% as on December 31, 2025. The company follows an aggressive write-off policy, with bad loans generally provided at 90+ days past due for short-term personal loan products and 180+ days past due for EMI products.

Liquidity and Resource Profile

Crisil assessed the company's liquidity as adequate. As on December 31, 2025, Unifinz had approximately Rs 177 crore debt outstanding, with 80% in the form of term loans and 20% as inter-corporate deposits from shareholders. The company maintained unencumbered cash and cash equivalents of Rs 56.5 crore as on February 25, 2026, adequate to meet repayment obligations for over one month. Additionally, the company has an average monthly collection of around Rs 222 crore over the last six months, supporting its liquidity profile.

Unifinz Capital India Limited has successfully completed the allotment of non-convertible debentures worth ₹30 crore following its Finance Committee meeting held on March 18, 2026. The committee, which convened from 11:00 AM to 12:00 PM, approved the final allotment of 30,000 debentures under the existing ISIN INE926R07019, marking the completion of the debt fundraising initiative initially approved on March 11, 2026.

Debenture Allotment Details

The Finance Committee has allotted 30,000 listed, rated, senior, secured, transferable, redeemable, non-convertible debentures denominated in Indian Rupees. Each debenture carries a face value of ₹10,000 with an issue price of ₹9,950.14 per debenture, resulting in an aggregate nominal value of ₹30 crore. The issue price incorporates accrued interest of ₹49.86 per debenture, calculated with reference to the record date and interest payment dates of existing debentures under the same ISIN.

Interest Structure and Maturity Terms

The debentures offer an attractive fixed interest rate of 13% per annum, payable on a monthly basis to debenture holders. The deemed date of allotment is March 18, 2026, with the final redemption date scheduled for May 24, 2027, providing investors with a tenure of 14 months and 6 days. The company has received a credit rating of "BBB-/Stable" from India Ratings and Research Private Limited for these debentures.

Security Framework and Listing

The debentures are secured through a comprehensive security structure designed to protect investor interests. The company will create a first ranking exclusive and continuing charge in favor of the debenture trustee over certain identified book debts and receivables. The value of these hypothecated assets must maintain a minimum coverage ratio of 1.30 times the outstanding debenture amounts throughout the tenure.

The debentures are proposed for listing on the Wholesale Debt Market segment of BSE Limited under the existing ISIN INE926R07019. This private placement issuance has been conducted in accordance with SEBI regulations, specifically under Regulations 30 & 51 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Default Protection and Redemption Terms

To safeguard investor interests, the company has incorporated penalty provisions for payment defaults. In case of delayed payment of interest or principal for more than three months from the due date, additional interest at 4% per annum over the base interest rate will be applicable on outstanding principal amounts. The debentures will be redeemed on a pari passu basis, with the company making payment of outstanding principal amounts on the final redemption date in accordance with the debenture trust deed and other transaction documents.

Source: Company/INE926R01012/bc099032-8a37-4631-bfe5-b2cedb880065.pdf