SK Finance is an Indian NBFC that offers financing for pre-owned vehicles. Its long track record in the vehicle financing segment should benefit it as it scales up and diversifies its portfolio. Regular capital infusions also bolster its capitalization metrics, and its asset quality remains comfortable.
Its management team has significant experience in similar businesses. The promoter, Mr. Rajendra Kumar Setia, has two decades of finance sector experience, mainly in vehicle financing.
Interest rate
SK Finance loans come with affordable interest rates and convenient repayment options. They also offer 100% process transparency and seamless loan disbursal. You can avail of this loan to purchase a pre-owned car or even start up a small business. All you have to do is submit your identity proof, address proof, and proof of income. Then, you can apply for the loan online. Once you have submitted all the necessary documents, the lender will process your application and provide you with a quote in no time.
Founded in 1994, SK Finance Limited (formerly Ess Kay Fincorp Ltd) offers financial solutions for pre-owned commercial vehicles. Its vintage of over 28 years in used vehicle finance has helped it build in-depth knowledge about its target segment. The company started as a direct selling agent for entities such as Anagram, Ess-Kay Fincorp, and SRF Finance in two-wheeler and three-wheeler financing and has evolved into an assignment-based player for AU Financiers, ICICI Bank, and Shriram Transport Finance Company Ltd for CV financing.
The company’s focus on used vehicle financing and targeted borrowers of rural and semi-urban origin leads to its asset quality metrics being susceptible to slippages. It is, however, able to control credit costs through adequate provisions. Its provisioning remained elevated during fiscal 2020 and 2021 due to stress on its portfolio, but the company wrote back provisions worth Rs 32.1 crore (0.7% of its AUM) during these periods.
The vital capitalization metrics and the extensive on-ground experience of its promoters should stand SK Finance in good stead as it scales up its portfolio, both geographically and at the product level. The company is expected to maintain healthy asset quality and profitability metrics, with its gearing slated to remain below four times over the medium term.
Repayment period
The repayment period on an SK finance loan statement can be customized to fit the needs of each borrower. For example, borrowers may choose to make payments using a debit or credit card, Freecharge wallet, or net banking. This allows them to pay EMIs more quickly and conveniently. The SK Finance website also provides an online calculator that can help users determine their loan EMIs. This can be used to calculate the total amount due, including interest, after each payment.
SK Finance Limited (SKFL) is an Indian financial services company that provides financing solutions for pre-owned commercial vehicles (CVs). Its financial products include loans and leasing of assets. SK FL serves customers across India. In addition, the company operates a retail business and provides personal loans. Its financing products also include consumer durables, agricultural machinery, and healthcare equipment.
To ensure that its loans are used for legitimate purposes, SKFL verifies all information provided by applicants and conducts background checks. The company also makes sure that its employees and management are ethical and professional. Moreover, the company complies with all regulations set forth by the government of India.
Its credit rating upgrade reflects SK’s strengthened capitalization metrics and demonstrated ability to manage asset quality despite the challenging macroeconomic environment. Its strong liquidity position and consistent fund-raising have also supported its earnings profile. Moreover, its risk-adjusted return on equity remains above its peers.
This reflects the company’s strategic focus on enhancing its presence in rural and semi-urban areas. It also has a well-developed MSME portfolio that accounted for around 12% of its overall portfolio as of December 31, 2021. This will allow the company to serve more underserved businesses and contribute to poverty reduction.
In terms of governance, the SK Group’s board of directors is highly qualified and experienced. Its members have extensive experience in the banking industry, and they are also active as entrepreneurs and shareholders in other companies. Additionally, the board of directors has a good understanding of the challenges and opportunities facing SK Finance Ltd. Its members are committed to delivering high-quality services and creating value for shareholders.
Documents required
The following documents are required to complete a loan statement: 1. A copy of the latest Income Tax Return. 2. A valid Proof of Address. 3. A valid Driving License. 4. A valid Photo ID.
SK Finance is a middle-layer NBFC, which offers loans for two-wheelers, cars, and home loans. It also provides personal loans and business loans. It is based in Jaipur, India. The company was established in 1994. It is a family-owned business with an impressive track record and on-ground experience. The company’s strong liquidity position should stand it in good stead as it scales up and diversifies its portfolio, both geographically and at the product level.
It has a strong leadership team and a diverse range of products. Its loan book is concentrated in the pre-owned and used vehicle finance segment. The company also has a solid balance sheet backed by robust capitalization metrics and a stable and healthy asset quality.
The Borrower(s) shall at all times be deemed to meet SKFL’s requirements of creditworthiness, and the Company may make any market inquiries/credit bureau checks that it feels fit in this respect. Suppose there are any doubts as to the genuineness of the relationship between the Borrower(s) and SKFL. In that case, the Company may withhold the no objection certificate, security-related document, or the like.
On failure of the Borrower(s) to pay their dues within 30 days of the date on which they become due, SKFL may tag the delinquent Borrower(s) as Non-Cooperative Borrowers in its database. In such a case, the delinquent Borrower(s) will be sent a notice in writing on 60 DPD (Days Past Due) to justify not responding appropriately to the reminder(s) received by SKFL.
SK Finance is a trusted name in the Indian banking and financial services industry. Its reputation for excellent customer service has earned it a high rating from investors and customers alike. Moreover, its competitive interest rates and flexible repayment schedules have made it a preferred choice for many people. The company has a long history of empowering dreams with vehicle loans and fueling ambitions with small business loans, especially in rural and semi-urban areas of the country.
Payment method
If you are looking for an effortless and stress-free way to pay your Ess Kay Fincorp Limited Sk Finance Loan Payment bill, then you should consider using the ePayon app. This online payment system is highly secure, protecting the privacy of your bank account details. Plus, you can get additional cashback offers on your payments. The Payson app also makes it easy to access your loan repayment statement, saving you time and hassle.
SK Finance’s vital asset quality metrics have supported its earnings profile over the past two years. The company made higher provisioning to combat any stress on its book as a result of the pandemic. The higher provisions have helped in controlling credit costs, which have now returned to pre-pandemic levels.
The company’s liquidity position remains solid with low and stable debt-servicing ratios. Its capital base is expected to be further strengthened by the primary equity raise of Rs 899.5 crore, which will be received shortly after receipt of regulatory approvals. Consequently, the company’s gearing will improve to around four times over the medium term.
Moreover, the company’s long track record of promoters and on-ground experience in vehicle finance should stand it in good stead as it scales up its business further and diversifies its portfolio at the product and geographical level. The company has already made significant progress in this regard with its asset acquisition spree over the past couple of years.
The Company is also well-positioned to benefit from a revival in the automotive sector, which is likely to support its top-line growth. Further, the strong traction in its digital business should enhance overall profitability. The Company’s ability to maintain a diversified borrowings portfolio and raise funds at competitive rates should help in improving its debt-servicing ratio. The Company’s robust risk management framework, including effective reserving and strict adherence to the RBI guidelines, should further support its ratings. In addition, the Company’s healthy internal accruals and return on managed assets in recent years have also bolstered its earnings profile. The rating takes into account these strengths, in addition to the Company’s robust business model and consistent financial performance over the years.
