Shiksha Finance Raises INR 43.4 Million via Pass‑Through Certificate (PTC) Transaction

Chennai‑based Shiksha Financial Services India Private Limited announced the conclusion of a securitisation transaction with DMI Housing Finance Private Limited, a National Housing Bank‑registered housing finance company. The transaction involved the issuance of Series A1 pass‑through certificates (PTCs) amounting to INR 43.4 million through a special purpose vehicle trust named “Micro‑LAP Empower June 2026”. DMI Housing Finance subscribed to the entire issue, marking Shiksha’s first debt fundraising from a housing‑finance investor.

The PTCs are secured by a pool of mortgage‑backed loan receivables originating from 148 loan contracts extended by Shiksha Finance. The structure includes three layers of credit enhancement: (i) cash collateral equal to 11.00% of the initial pool principal provided by Shiksha Finance, (ii) a subordination tranche of 10.00% of the initial pool principal for the Series A1 PTC, and (iii) an excess‑interest spread (EIS) of 41.80% of the initial pool principal for the same series. ICRA has provisionally rated the Series A1 PTCs at A‑ (SO). The rating for the PTCs issued in Shiksha’s two prior securitisation transactions has been maintained at A‑ (SO) following their annual review.

With this deal, Shiksha Finance’s cumulative capital raised through securitisation exceeds INR 200 million. The company highlighted that the inclusion of DMI Housing Finance adds a new class of investors to its stakeholder base and that PTCs and direct assignments will be important avenues for future debt fundraising and treasury management, as stated by CEO Mr V L Ramakrishnan.

Operational Snapshot (as of June 2026)

Shiksha Finance provides secured, mortgage‑backed loans to micro, small and medium enterprises (MSMEs) and informal sector workers under its micro‑LAP product. The firm operates 19 branches across Tamil Nadu and Andhra Pradesh, with a total outstanding micro‑LAP portfolio of INR 742.1 million. Since the product’s launch, Shiksha has funded approximately 2,500 underbanked entrepreneurs and informal workers, enabling them to leverage residential property value for business growth.

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