Fedfina has a Mortgage AUM of roughly 6200 crores, ticket size of INR 22 lakh and yields of ~14%.
Five-star has an AUM of 9600 crores and almost 90% of the loans are sub INR 5 lakh with yields of 24%.
I presume the huge difference in yields is largely due to the nature of loans, wherein Five-star gives loans to small business owners.
However, my thought was that given the secured nature of the loans, their yields should have been much lower. At 24% yields, they are on par with microfinance companies, whose book is completely unsecured.
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