Five Star Business Finance

What Five Star Business Finance does

Five Star Business Finance Limited is an Indian non-banking financial company (NBFC) registered with the Reserve Bank of India and listed on the BSE (bom:543663) under the trade name Five Star Group. Incorporated in 1984 and headquartered in Chennai, the company focuses on providing secured loans, typically ranging from Rs 3 lakhs to Rs 10 lakhs with tenures up to 7 years, to micro-entrepreneurs and self-employed individuals who have limited access to formal credit channels. Its three-product portfolio comprises business loans, housing loans (for renovation or improvement), and mortgage loans against property, with monthly equated installments as the standard repayment structure.

The company operates a relationship-driven, branch-based origination and servicing model through a network of 844 branches across India, supported by 14,159 employees. Its technology layer is limited to a customer-facing mobile application used for loan applications and EMI payments, paired with online payment infrastructure; no proprietary AI/ML underwriting or platform-as-a-service components are disclosed. Loan pricing is quote-based and not publicly posted, varying by borrower profile, ticket size, and tenure.

Revenue is generated almost entirely from interest income on the loan portfolio. FY26 reported revenue stood at Rs 3,218.12 crore (up 13% year-over-year) with net profit of Rs 1,098.75 crore (up 2.45%); AUM reached Rs 13,224+ crore against a customer base of 4,96,435. The company carries an AA- credit rating from CARE, ICRA, and India Ratings, and its gross stage 3 assets stood at 3.4% as of Q4 FY26, reflecting disciplined secured-asset underwriting.

Name

Five Star Business Finance

Legal name

Five Star Business Finance Limited

Website

https://fivestargroup.in

Company type

Public

Founded year

1984

Operating status

Operating

Headcount range

5,001–10,000 employees

Short description

Five Star Business Finance is an Indian NBFC that provides secured business, housing, and mortgage loans of Rs 3-10 lakhs to micro-entrepreneurs and self-employed individuals through 844 branches across India, serving over 4.96 lakh customers with an AUM exceeding Rs 13,224 crore.

Ownership category

akta.pro rank

Product category

Secured Small Business Lending (NBFC)

NAICS

Commercial Banking (522110)

SIC

Short-Term Business Credit Institutions (6153)

akta.pro primary industry

Microloans & Working Capital Loans (FSAKAGAA)

akta.pro secondary industry

SME Term Loans & Growth Capital (FSAKAGAB)

Keywords

• Secured business loans
• Micro-entrepreneur lending
• NBFC lending
• Mortgage loan products
• Financial inclusion

Headquarters

HQ city

Kilpauk

HQ country

India

HQ region

Asia

Offices1 record

Markets served

GTM type

B2C

Offering type

Services

Cost components

Operations, Personnel, Infrastructure, Marketing or Sales, Technology or R&D

Revenue model

1. Interest Income from Loan Portfolio: Five Star Business Finance generates revenue primarily through interest income on its loan portfolio, providing secured loans (business loans, housing loans, mortgage loans) to micro-entrepreneurs and self-employed individuals with typical ticket sizes between Rs 3 lakhs to Rs 10 lakhs for tenures up to 7 years with monthly equated repayments.

Pricing tiers

Go-to-market motion1 record

Distribution channels1 record

Marketing channels4 records

Core offering

Five Star Business Finance is a RBI-registered NBFC that provides secured small-ticket loans (Business Loans, Housing Loans, and Mortgage Loans) to micro-entrepreneurs and self-employed individuals across India. Loan ticket sizes typically range from Rs 3 lakhs to Rs 10 lakhs with tenures up to 7 years and monthly equated repayments, distributed through 844 branches and a mobile application.

Product overview

Five Star Business Finance is a non-banking financial company (NBFC) that provides secured small loans primarily to micro-entrepreneurs and self-employed individuals in India. The company operates a three-product portfolio consisting of Business Loans (core product for business purposes), Housing Loans (for home renovation/improvement), and Mortgage Loans (against property). The typical loan ticket ranges between Rs 3 lakhs to Rs 10 lakhs with tenures up to 7 years. The company serves customers through 844 branches with an AUM of Rs 13,224+ Crore and maintains a credit rating of AA- from multiple rating agencies.

Differentiator

Problem solved

Functional benefit

Products and services

• Business Loans Secured loans provided to micro-entrepreneurs and self-employed individuals for business purposes, with typical loan ticket sizes between Rs 3 lakhs to Rs 10 lakhs and tenure up to 7 years, repaid through monthly equated installments.
• Housing Loans Financial solutions for housing needs including home renovation or improvement purposes, designed for micro-entrepreneurs and self-employed individuals with limited access to formal housing credit channels.
• Mortgage Loans Secured loans against property for various purposes including asset creation and meeting significant economic expenses such as marriage, healthcare, and education.

Quantifiable outcome

• Reached 4,96,435+ customers through 844 branches
• +1 more outcomes

Named customers2 records

Segments2 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Scale indicators8 records

Recent moves7 records

Expansion highlights4 records

Direct peers

• Cholamandalam Investment and Finance Company: Large Indian NBFC focused on vehicle finance, SME loans, and home equity, with a similar secured small-ticket lending model and pan-India branch network serving self-employed and small business customers.
• Manappuram Finance: Indian NBFC combining gold loans with microfinance and SME lending, comparable to Five Star in serving underbanked customers with a branch-led model and a focus on financial inclusion.
• Aptus Value Housing Finance India: Housing finance NBFC targeting self-employed and lower-income borrowers in India's tier 2/3 markets, overlapping with Five Star's small-ticket secured lending to similar customer segments. A Five Star independent director also serves on its board.
• Spandana Sphoorty Financial: Indian microfinance institution providing small-ticket loans to underbanked women and micro-entrepreneurs, directly comparable in customer base and ticket size to Five Star's micro-lending book.
• CreditAccess Grameen: Microfinance-focused NBFC serving rural and semi-urban micro-entrepreneurs with group and individual loans, operating in a similar unsecured micro-lending space to Five Star.
• Muthoot Microfin: Microfinance NBFC providing small-ticket income-generation loans to women micro-entrepreneurs, directly comparable to Five Star's focus on financial inclusion and small-ticket lending.

Broad incumbents

• Sundaram Finance: Large, well-established South India-based NBFC with a diversified portfolio of commercial vehicle, housing, and consumer finance, comparable in its branch-led model but with a broader product mix. A Five Star independent director serves on its board.
• Bajaj Finance: India's largest NBFC offering consumer, SME, and commercial lending, comparable business model but at significantly greater scale and with broader product diversification than Five Star.
• IIFL Finance: Diversified Indian NBFC offering gold loans, home loans, and SME finance, with overlapping small-ticket secured lending operations and a similar pan-India branch presence.
• Bandhan Bank: Universal bank that originated as a microfinance institution, providing small-ticket loans and savings products to underbanked customers across India, with overlapping target segments despite the bank versus NBFC structural difference.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks6 records

Key highlights7 records

Customer concentration

• LinkedInlinkedin.com/company/five-star-business-finance

Compliance6 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles11 records

Funding overview

Funding rounds9 records

Investors10 records

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Five Star Business Finance