Navi Finserv securitises $24.5M in personal loans with Goldman Sachs India

NBFC Navi Finserv has completed a $24.5 million personal loan securitisation transaction with Goldman Sachs (India) Finance.

This is one of the largest debt transactions for Navi, structured via pass-through certificates (PTCs) and backed by a pool of unsecured personal loans. The transaction holds an IND AA (SO) rating from India Ratings and marks Navi Finserv's seventh multinational bank partnership.

In July, Navi Finserv closed a $38 million personal loan securitisation deal with JP Morgan, marking the latter's first PTC transaction in India's fintech space.

PTCs are financial instruments used in securitisation. In a PTC structure, a pool of loans (such as personal loans, home loans, or auto loans) is bundled together and sold to investors as certificates. The payments made by the borrowers (like loan principal and interest) are "passed through" to the investors holding the PTCs.

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"This transaction with Goldman Sachs will fuel Navi Finserv's long-term mission to simplify and enable access to finance for a billion people. Navi Finserv continues to scale its operations with high-quality underwriting, to help bring more people into the formal financial system by offering them access to seamless credit and delivering exceptional customer experience," a Navi Finserv spokesperson commented.

Securitisation is the process of pooling various financial assets, such as loans, and selling them as securities to investors. This allows lenders to free up capital, reduce risks, and provide liquidity to fuel further lending.

Apart from securitisation Sachin Bansal's financial services platform has also raised Rs 150 crore through non-convertible debentures (NCDs), at an issue price of Rs 1 lakh each through private placement.