Published Paper Details:

This study compares the profitability of microfinance loans and home loans with reference to Equitas Small Finance Bank. It begins by outlining the Indian banking industry, the profile of Equitas Small Finance Bank, and the significance of both loan segments in promoting economic growth and financial inclusion. It also reviews the concepts of loan profitability, microfinance, and home loans, along with earlier studies, to identify the research gap. The study is based on secondary data collected from RBI, NABARD, and NHB reports, journals, and official websites. Tools such as percentage analysis, trend analysis, ratio analysis, comparative analysis, NPA analysis, and regression analysis were used to evaluate the performance of both segments, covering loan portfolio growth, interest income, net profit, repayment performance, customer retention, and the impact of NPAs on profitability. The findings reveal that while both loan segments contributed to the bank's growth, home loans generated higher net profit, better profit margins, lower NPAs, and greater customer retention. Microfinance loans yielded higher returns due to higher interest rates but involved greater credit risk and operating costs. The study concludes that home loans are more profitable and stable, while microfinance loans remain vital for financial inclusion and supporting low-income borrowers.