When it comes to lending, Bajaj Finance is one of the biggest players on the non-banking finance company (NBFC) playground. Take zero-interest consumer durable loans, for instance. The company accounts for over one-fifth of the market in India. And even as large swathes of the NBFC space are reeling from the prevailing liquidity crisis post the implosion of Infrastructure Leasing and Financial Services Ltd (IL&FS), Bajaj has set its sights on a new growth driver.
Health on EMI
It’s Bajaj vs upstarts in the healthcare loans race
The new growth driver for the consumer finance giant is healthcare loans. While Bajaj Finance may have the largest loan book, startups like LetsMD and NBFCs like Arogya Finance enjoy a wider portfolio. But experience, as they say, counts
Bajaj Finance has built an empire on the back of its consumer durables lending—accounting for a fifth of the country’s zero-EMI loans in the space
But it estimates healthcare could be more lucrative—bigger than the $10.4 billion consumer durables and $20 billion digital products lending markets combined
But while Bajaj currently has the largest loan book in the healthcare space, it’s struggled to crack the emergency care market
And even as it searches for a winning formula, smaller startups are aiming to disrupt its march forward