From a tractor salesman to running a multi-crore AUM NBFC—Jitendra Tanwar’s journey in impact lending

Thirty-seven-year-old Jitendra Tanwar runs Namdev Finvest, a Non-Banking Finance Company (NBFC) that takes global impact funding to small businesses in small towns in India.

The Jaipur-based company lends to small businesses as well as people looking to buy a bike or scooter or those who want to start driving an e-rickshaw for livelihood, or to install solar panels.

The average loan ticket size at Namdev Finvest ranges between Rs 5 to 7 lakhs, with flexible loan terms extending up to 10 years. It has received over $ 41.5 million (about Rs 350 crore) in funding from impact investors such as Belgian development fund Incofin, Lighthouse Canton Nueva Fund, UK Government-backed British International Investment, and micro-finance investor Maj Invest.

Today, Namdev Finvest has over Rs 1,300 crore in assets under management, most of which is distributed to small businesses from eight states—Rajasthan, Gujarat, Madhya Pradesh, Haryana, Delhi, and Uttarakhand.

A dream

Tanwar, who began working when he was just 17 years old, started his career as a tractor salesman in Jaipur. “At the age of 17, I started working without any experience and went from village to village to sell tractors,” he tells YourStory.

He would go to farm owners and demonstrate the features and specifications of tractors in Jaipur. This is where he got his first exposure to lending as he would also have to explain to the farmers about the financing options available for the tractor.

Later, with the help of his cousin, he joined HDFC Bank as a direct selling agent. He worked there till 2008 when the infamous financial crisis caused him to lose his job. This is where he decided that he wants to be in the lending sector for the foreseeable future.

After three months, he started again as a freelancer at Mahindra and Mahindra’s tractor arm MAgNA and later started working with IndusInd Bank and some local body NBFCs.

In 2012, he started his own company with an aim to acquire an NBFC licence of his own. Because of his “bad luck” as he calls it, he couldn't get one because at that time the RBI was making significant changes in the regulatory framework and the licensing process that made it harder for new entrants.

In November 2013, he finally got a license and there was no turning back after that.

“I had mortgaged my house to pay for the purchase. When we took over the company, the capital of the company was only 29.30 lakhs. The registered office of the company was in Zira district in Punjab state,” Tanwar said.

Within a year, the company established a loan book of Rs 1.17 crore by underwriting two-wheeler loans, and grew it to Rs 2.75 crore by 2015.

Namdev Finvest's primary focus is on MSME Secured Lending, with a specific emphasis on reaching underserved and unbanked communities in rural areas. According to Tanwar, the company aims to provide financial support to individuals who often lack access to formal banking services, particularly those looking to start or grow small businesses.

“We give loans to people who want to start their own business or improve their existing setup, but banks are not able to provide funds to them,” Tanwar notes. 

These customers often operate in sectors like retail, agriculture, or small-scale manufacturing and include shopkeepers, contractors, carpenters, and even small-scale service providers like beauticians and tea stall owners.

Tanwar highlights the importance of working directly with these communities: "We meet them, understand their requirements, and after that, they are sanctioned disbursements." The company's physical presence is crucial to its operations, with 112 branches across eight states that it operates in.

This network allows Namdev Finvest to organise customer awareness camps and regular get-togethers to address loan concerns, discuss new financial products, and provide ongoing financial education.

Although Namdev Finvest serves a largely cash-based economy, it has integrated a hybrid approach that combines physical interactions with digital processes. 

Tanwar explains that many of the company's customers, particularly in rural areas, are not fully accustomed to using banking services or digital platforms, so the company has adopted a "phygital" approach—combining physical and digital methods.

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Namdev Finvest is also committed to Environmental, Social, and Governance (ESG) principles, offering products that promote sustainable development. The company has introduced green financing products, including loans for electric vehicles (e-rickshaws) and rooftop solar installations for both residential and industrial purposes.

“We focus on electric vehicles like e-rickshaws, not cars, and we also finance rooftop solar projects,” Tanwar explained. These products are currently available in four states—Uttar Pradesh, Delhi, Rajasthan, and Gujarat—where Namdev Finvest has financed around 5,000 e-rickshaw customers. Solar financing, a newer addition to the company's portfolio, has seen rapid growth, and Singh expects it to expand significantly in the coming years.

As the non-banking financial company (NBFC) sector in India expands, Namdev Finvest faces stiff competition from both traditional banks and other NBFCs targeting the same underserved demographics. Nuveen-backed Kinara Capital, which also lends to small businesses, and Dutch Bank FMO-backed Ecofy which lends for e-rickshaws and solar panels are some of the specialised lenders which have also drawn attention from impact investors in the space and compete directly with the likes of Namdev.

Namdev’s USP lies in the specialised silos it operates in. By keeping the scope of lending limited to four sectors: MSME, two wheeler, e-rickshaw, and solar, it builds a deeper understanding of its target demographic and repayment practices with each additional loan disbursed. This in turn makes its underwriting process quicker and more reliable.

Operating in India’s growing NBFC space comes with its challenges.

MSME borrowers often face hurdles such as lacking proper documentation and credit history, which forces NBFCs to find alternative ways to assess these borrowers' eligibility, adding to operational costs. To underwrite these loans, lenders often keep interest rates high to account for potential defaults. Recently, the regulator criticized lending rates by NBFCs like Navi and DMI Finance as "usurious."

Until the RBI clarifies what it considers usurious, NBFCs, including Namdev, may have to reevaluate their interest rates. However, it’s important to note that Namdev primarily operates in the secured lending space, where loans are protected by collateral, such as e-rickshaws, bikes, and solar panel modules.