Ujjivan Small Finance Bank's secured loan portfolio has crossed 50% of total advances for the first time in its history, as of Q1 FY27.
The secured book grew 43% year-on-year to reach ₹21,638 crore, driven by affordable housing loans, micro-MSME property loans (loan against property), gold loans, and vehicle financing.
This marks a departure from the traditional Small Finance Bank model, where institutions originated as microfinance lenders extending uncollateralized cash to low-income borrowers — a segment prone to local credit shocks, political loan write-offs, and macroeconomic stress.
Ujjivan has set a further target of pushing its secured mix to 56% by March 2027, continuing the shift toward collateralized retail assets.
The move comes as the Reserve Bank of India actively penalizes lenders for over-exposure to unsecured retail risk, positioning Ujjivan's pivot as a potential template for other SFBs navigating similar regulatory pressure.
