3 Underserved Borrower Lending Stocks With a Strong Future Roadmap: Paisalo Digital, Northern Arc Capital and Shriram Finance

Underserved borrower lending stocks give investors exposure to credit for borrowers that banks serve less. Disbursements, collections and funding costs decide how much of that demand turns into profit.

This list covers three underserved borrower lending stocks: Paisalo Digital for digital co-lending model, Northern Arc Capital for funding platform for lenders and Shriram Finance for commercial vehicle loan franchise. Every figure comes from the latest reported financials and the 9 October 2026 market close. Companies without complete current figures were left out.

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What Are Underserved Borrower Lending Stocks?

Underserved borrower lending stocks are shares of companies that lend to or fund borrowers that banks serve less. Results depend on loan growth, collections and funding costs, so collections and funding costs separate the stronger names.

Underserved Borrower Lending Stocks at a Glance

The table compares size, valuation, return on equity and debt for the three underserved borrower lending stocks as of the 9 Oct 2026 close.

Among inclusive finance stocks, Paisalo Digital and Shriram Finance trade at a premium to the industry P/E, while Northern Arc trades at a discount.

Why Do Underserved Borrower Lending Stocks Have a Strong Roadmap in India?

Underserved borrower lending stocks have a strong roadmap in India because many small borrowers lack formal records, banks are partnering with non-bank lenders and funding platforms link investors to small lenders. Three drivers stand out.

• Co-lending with banks: Partnerships with banks lower funding costs and widen reach.
• Funding for smaller lenders: Platforms that arrange funds for small lenders widen credit reach.
• Local underwriting: Lenders that know their borrowers earn better yields.

Paisalo Digital: Digital Co-Lending Builds the Next Leg

Paisalo Digital's roadmap rests on small-ticket loans to underserved borrowers through a digital and co-lending model, with a low-ticket lending model supporting growth.

Revenue grew from Rs 392.22 crore in FY22 to Rs 943.70 crore in FY26, a 140.6% rise, and FY26 revenue was 22.4% higher than FY25. FY26 net profit rose 18.5% to Rs 237.21 crore. Over four years, net profit rose from Rs 79.25 crore in FY22 to Rs 237.21 crore. In Q1 FY27, revenue grew 19.0% to Rs 260.29 crore, and net profit rose 30.0% to Rs 61.31 crore.

Debt to equity is 2.43 and return on equity is 13.23%. Paisalo Digital paid a dividend of Rs 0.1 per share for FY26, a yield of 0.12%. At a P/E of 29.35 against an industry P/E of 17.72, the stock trades above its industry multiple.

What to watch: The P/E of 29.35 sits above the industry P/E of 17.72, so earnings delivery matters for the valuation.

Northern Arc Capital: A Funding Platform for Lenders Builds the Next Leg

Northern Arc's roadmap rests on funding for microfinance, vehicle finance and small business lenders along with direct loans, with its funding platform supporting growth.

Revenue grew from Rs 916.54 crore in FY22 to Rs 2,700.33 crore in FY26, a 194.6% rise, and FY26 revenue was 14.6% higher than FY25. FY26 net profit rose 33.9% to Rs 403.58 crore. Over four years, net profit rose from Rs 181.94 crore in FY22 to Rs 403.58 crore. In Q1 FY27, revenue grew 28.8% to Rs 782.82 crore, and net profit rose 45.8% to Rs 114.10 crore.

Debt to equity is 3.15 and return on equity is 10.42%. At a P/E of 10.35 against an industry P/E of 17.72, the stock trades below its industry multiple.

What to watch: The P/E of 10.35 against an industry P/E of 17.72 leaves valuation less stretched, so the next quarters' growth is the figure to follow.

Shriram Finance: Commercial Vehicle Finance Anchors the Roadmap

Shriram Finance's roadmap rests on commercial vehicle, used vehicle, small business and gold loans for customers that banks often serve less, with demand for transport and small business credit supporting loan growth.

Revenue grew from Rs 19,274.23 crore in FY22 to Rs 48,192.65 crore in FY26, a 150.0% rise, and FY26 revenue was 15.1% higher than FY25. FY26 net profit rose 6.2% to Rs 10,004.20 crore. Over four years, net profit rose from Rs 2,707.93 crore in FY22 to Rs 10,004.20 crore. In Q1 FY27, revenue grew 16.3% to Rs 13,418.74 crore, and net profit rose 60.0% to Rs 3,447.26 crore.

Debt to equity is 3.80 and return on equity is 15.21%. Shriram Finance paid a dividend of Rs 10.8 per share for FY26, a yield of 0.94%. At a P/E of 19.13 against an industry P/E of 17.72, the stock trades above its industry multiple.

What to watch: The P/E of 19.13 is a modest premium to the industry P/E of 17.72, so the next quarters' growth is the figure to follow.

Best Underserved Borrower Lending Stocks in India: Paisalo Digital vs Northern Arc vs Shriram Finance on Key Financials

Among the best underserved borrower lending stocks in India, Paisalo Digital leads on FY26 revenue growth and the lowest debt to equity; Northern Arc leads on Q1 FY27 revenue growth and FY26 net profit growth; Shriram Finance leads on Q1 FY27 net profit growth and return on equity. The table puts the numbers side by side.

Lender earnings follow loan growth, collections and funding costs, so full-year numbers and quarterly trends together give a better view.

How to Evaluate Underserved Borrower Lending Stocks to Buy Before You Invest

A short checklist keeps the research consistent when you screen underserved borrower lending stocks and shortlist underserved borrower lending stocks to buy.

1. Compare each stock's P/E with its industry P/E, which is 17.72 for all three here.
2. Check the quality of collections and how much funding comes from banks, because both shape stability.
3. Check whether revenue growth is turning into profit growth, not only sales.
4. Read loan growth against funding costs to see how growth is financed.
5. Watch debt to equity and interest cover before sizing a position.
6. Spread exposure across companies and business lines instead of one demand cycle.

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Risks to Consider Before Investing in Underserved Borrower Lending Stocks

• Valuation: Paisalo Digital trades at 29.35 times earnings against an industry multiple of 17.72.
• Interest rate cycles: Changes in policy rates can move borrowing costs and lending spreads.
• Borrower income stress: Small borrowers can face uneven cash flows in a slow economy.
• Quarterly trends: A single weak quarter can change near-term earnings, so track results every quarter.

Download the Univest iOS App or Univest Android App to track Paisalo Digital, Northern Arc and Shriram Finance live.

Annual reports and quarterly result presentations are the most reliable places to verify the numbers quoted here, because they show segment details, management commentary and the notes behind each figure.

Comparing a quarter with the same quarter of the previous year gives a cleaner reading than comparing it with the preceding quarter, since seasonal patterns affect many businesses in India.

Final Take: Which Stock Has the Strongest Roadmap?

These three inclusive finance stocks cover a digital co-lending company, a platform that funds small lenders and a commercial vehicle lender. Paisalo Digital leads on FY26 revenue growth and the lowest debt to equity; Northern Arc leads on Q1 FY27 revenue growth and FY26 net profit growth; Shriram Finance leads on Q1 FY27 net profit growth and return on equity.

Across underserved borrower lending stocks, each roadmap still has to turn growth into steady profit, so independent research and position sizing matter. Investors should consult a SEBI-registered advisor before acting on any of the underserved borrower lending stocks to buy discussed here.

FAQs on Underserved Borrower Lending Stocks

Which are the best underserved borrower lending stocks in India with a strong roadmap?

Ans. Paisalo Digital, Northern Arc Capital and Shriram Finance stand out for their roadmaps in a digital co-lending company, a platform that funds small lenders and a commercial vehicle lender. FY26 revenue growth was 22.4% at Paisalo Digital, 14.6% at Northern Arc and 15.1% at Shriram Finance, and return on equity ranges from 10.42% to 15.21%.

Is Paisalo Digital a good stock to buy now?

Ans. Paisalo Digital has a debt to equity ratio of 2.43, a return on equity of 13.23% and a P/E of 29.35 against an industry P/E of 17.72. Valuation, funding costs and repayment trends move results. This article is not investment advice, so consult a SEBI-registered advisor before deciding.

What is the P/E ratio of Paisalo Digital, Northern Arc and Shriram Finance?

Ans. The P/E ratio is 29.35 for Paisalo Digital (industry 17.72), 10.35 for Northern Arc (industry 17.72) and 19.13 for Shriram Finance (industry 17.72). Only Paisalo Digital and Shriram Finance trade at or above the industry multiple.

Which of these underserved borrower lending stocks has the highest return on equity?

Ans. Shriram Finance has the highest return on equity at 15.21%, followed by Paisalo Digital at 13.23% and Northern Arc Capital at 10.42%.

What are the risks of investing in underserved borrower lending stocks?

Ans. The main risks are valuation, interest rate cycles, borrower income stress and quarterly trends. Paisalo Digital trades at 29.35 times earnings against an industry multiple of 17.72.

How did Paisalo Digital, Northern Arc and Shriram Finance perform in Q1 FY27?

Ans. Paisalo Digital reported revenue of Rs 260.29 crore, up 19.0% year on year, and net profit rose 30.0% to Rs 61.31 crore. Northern Arc Capital reported revenue of Rs 782.82 crore, up 28.8% year on year, and net profit rose 45.8% to Rs 114.10 crore. Shriram Finance reported revenue of Rs 13,418.74 crore, up 16.3% year on year, and net profit rose 60.0% to Rs 3,447.26 crore.

Do underserved borrower lending stocks pay dividends?

Ans. Paisalo Digital and Shriram Finance pay dividends. The dividend yield is 0.12% for Paisalo Digital and 0.94% for Shriram Finance, based on dividends declared for FY26.

How can I invest in underserved borrower lending stocks in India?

Ans. You can buy underserved borrower lending stocks through a demat and trading account on NSE or BSE after checking each company's financials, margins and valuation. The Univest Screener lets you compare fundamentals before placing an order. Investments in securities are subject to market risk, so consider your risk profile first.