Funding Instrument Update
Shalibhadra Finance Limited announced a substantial reduction in its incremental cost of borrowing through the use of Listed Non-Convertible Debentures (NCDs). The company utilized NCDs for the first time in April 2026 as a means of raising debt.
NCD Issuance Details
Over a six-month period from April 2026 to October 2026, the company achieved a reduction of 0.80% in the interest rate/coupon rate at which it borrows via NCDs:
| Date of Raising Funds | Amount Raised | Interest Rate/Coupon Rate |
| 10th April 2026 | Rs. 19.5 crores | 12.00% |
| 29th September 2026 | Rs. 20 crores | 11.50% |
| 19th October 2026 | Rs. 24 crores | 11.20% |
Total amount raised through NCDs: Rs. 63.5 crores
Financial Impact and Strategic Implications
The reduction in borrowing cost is expected to:
- Enable the company to offer lower interest rates to customers, improving competitive advantage
- Result in better Net Interest Margins (NIMs)
- Have a positive impact on profitability
Future Funding Strategy
The company plans to continue using NCDs as an effective tool for raising debt in the future and expects further reduction in borrowing rates going forward.
Company Background
Shalibhadra Finance Limited is a retail-focused NBFC serving India's unbanked and underserved regions with loan products including:
- Two-wheeler loans
- Car loans
- Property loans
- Personal loans
The company has:
- Asset under management: ₹220+ crores
- Active customer base: more than 1 Lakh
- Business focus: rural and semi-urban areas
- Lending model: prudent, asset-backed lending with strong focus on risk management and asset quality
- Operations: technology-enabled with robust governance supporting sustainable growth