Navi Finserv has closed a USD 24.5 million loan securitization deal with Goldman Sachs (India) Finance Private Limited. This deal makes Goldman Sachs the seventh major international bank to collaborate with Navi Finserv.
This transaction follows Navi Finserv’s earlier deal in July 2024, where it secured USD 38 million in personal loan securitization with JP Morgan, marking JP Morgan’s first securitization deal in India’s fintech industry.
How Loan Securitization Works
Securitization is a financial process where loans (such as personal, home, or auto loans) are bundled together and sold to investors as Pass-Through Certificates (PTCs). Investors who purchase these certificates receive payments as borrowers repay their loans, which include the loan’s principal and interest.
In this transaction with Goldman Sachs, the PTCs are based on unsecured personal loans managed by Navi Finserv. These PTCs have been rated IND AA (SO) by India Ratings, signifying strong credit quality.
Supporting Navi Finserv
The funds raised from this deal will help Navi Finserv continue its mission of simplifying access to finance, allowing more people to enter the formal financial system. The company aims to expand its operations, improve loan underwriting practices, and provide more seamless credit services to customers.
A spokesperson from Navi Finserv highlighted the importance of this transaction, stating, “This partnership with Goldman Sachs will fuel our long-term goal of offering easy access to finance for a billion people. By scaling our operations and enhancing our underwriting standards, we aim to deliver exceptional customer experiences and expand financial inclusion.”
About Navi Finserv
Founded in 2018 by Sachin Bansal and Ankit Agarwal, Navi Finserv is a Reserve Bank of India (RBI)-registered NBFC (Non-Banking Financial Company) that offers personal and home loans. The company focuses on simplifying loan processes for customers by offering fast and easy access to credit.
Through securitization, Navi Finserv aims to free up capital, reduce risks, and improve its liquidity, allowing the company to lend more efficiently. In addition to the USD 24.5 million securitization deal, Navi Finserv has also raised Rs 150 crore through non-convertible debentures (NCDs) to strengthen its financial position.
