Press Release

Press Release

March 19, 2026

MENTOR HOME LOANS INDIA LIMITED
Rating Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	155.00	ACUITE BB \| Negative \| Reaffirmed	-
Total Outstanding	155.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuité has reaffirmed the long-term rating of ‘ACUITE BB’ (read as ACUITE double B) on the Rs. 155.00 Cr. bank facilities of Mentor Home Loans India Limited (MHIL). The outlook is 'Negative'.

Rationale for the rating.

Subsequent to the most recent rating action, MHIL submitted a request for an appeal and made a representation before the Appeal Committee. Based on the information and clarifications provided by the management as part of the appeal process, Acuité understands that the variance between the audited financials and the provisional numbers for FY25 primarily arose due to incremental write-offs on the portfolio amounting to approximately Rs.43.53 crore, which were undertaken subsequent to the preparation of the provisional financials.

Acuité further understands that the total disbursements reported for FY25 comprise both on-book and off-book lending. Of the total disbursements, the on-book component is understood to have stood at approximately Rs.17.03 crore for FY25.

The rating continuous to factor in sequential deterioration in MHIL’s scale of operations and in profitability metrics. The company’s AUM deteriorated to Rs. 254.52 crore as on March 31, 2025 as against Rs 338.97 crore as on March 31, 2024. The company reported loss of Rs.43.74 Cr. in FY2025 as against profit of Rs 0.39 Cr. in FY2024. The rating is further constrained due to the ongoing dispute amongst the promoters which has impacted the business growth & resources raising in the company over the last few years. Consequently, there has been a decline in the overall AUM. The rating is further constrained by the relatively small scale of operations and geographical concentration of the loan portfolio with ~80 percent POS in Rajasthan. However, the rating continues to derives support from MHIL’s experienced promoter and management team, as well as its adequate capitalisation & liquidity buffers. Overall Capital Adequacy Ratio (CAR) stood at 111.16 percent as on March 31, 2025.

About the company

MHIL is a Jaipur based non-deposit taking Housing Finance Company (HFC) engaged in mortgage financing, Loans against Property (LAP) and housing loans. The company was originally established in 1995 as a Non-deposit taking Non-Banking Finance Company (NBFC) and subsequently in 2014, the company got registered as a Housing Finance Company with the National Housing Bank. The company is promoted by Mr. G. L. Goyal and is presently managed by Mr. Pawan Goyal (Managing Director), who has over two decades of experience in the financial services sector. The company has presence in Rajasthan, Madhya Pradesh and Gujarat and operates through a network of 36 branches.

Unsupported Rating

Not Applicable.

Analytical Approach

Acuité has considered the standalone business and financial risk profiles of MHIL to arrive at this rating.

Key Rating Drivers

Strength

Adequate Capitalisation

MHIL’s capitalization remained comfortable with overall Capital Adequacy Ratio (CAR) of 111.16 percent as on March 31, 2025 as against 119.88 percent as on March 31, 2024. Of the overall CAR as on March 31, 2025, Tier I CAR stood at 101.82 percent and Tier II CAR stood 9.34 percent. The improvement in CAR was majorly on account of reduction in risk weighted assets due to declining on-book loan portfolio. MHIL has a net worth of Rs. 104.88 Cr. and gearing of 0.64 times as on March 31, 2025.
Acuité believes that the MHIL is adequately capitalized to support its growth prospects for over near to medium term.

Weakness

Decline in Scale of Operations

The company’s profitability remains constrained, as evidenced by the steep decline in earnings during FY25, with net interest income reducing to Rs. 9.89 Cr. from Rs. 16.63 Cr. in FY24 and PAT slipping into a significant loss of Rs. 43.74 Cr. against a marginal profit of Rs. 0.39 Cr. in FY24, largely driven by elevated provisioning and write-offs of Rs. 43.53 Cr. for FY25 which eroded operating gains. Alongside weak profitability, AUM declined to Rs. 254.52 Cr. in FY25 from Rs. 338.97 Cr. in FY24, highlighting challenges in sustaining the business operations.

Disputes in the promoter family

MHIL is a family run NBFC, promoted by Mr. G. L. Goyal. The day to day operations of the company were managed by his sons, Mr. Pawan Goyal and Mr. Basant Goyal. Post a family feud, Mr. Basant Goyal, (a member of the promoter family), who was earlier associated with MHIL as an Executive director, has stepped down from his executive role, though he still continues on the Board of the company. Mr. Pawan Goyal, is presently in charge of the day to day operations. The promoter dispute is currently sub judice and is being represented in National Company LawTribunal (NCLT).
The management has inducted professionals from the industry to oversee key functions which were earlier handled by Mr. Basant Goyal. The ability of the new management to maintain the key operating parameters, post these operational level developments is to be examined.
Acuité believes that the efficacy of the company to maintain its operating performance and financial flexibility under these circumstances will remain a key rating monitorable.

Rating Sensitivity

Potential triggers (individual or collective) for an upward rating action:

Significant growth in AUM and disbursements.
Significant improvements in profitability reflected by a ROAA of 2 percent.

Potential triggers (individual or collective) for a downward rating action:

Deterioration in asset quality metrics, collection efficiency,
GNPA greater than 4 percent

Liquidity Position

Adequate

MHIL has a well-matched asset liability profile as per ALM statement dated March 31, 2025, and reports no cumulative negative mismatches. As on March 31, 2025 MHIL had cash & cash equivalents of Rs. 1.11 Cr. The company also avails cash credit facilities from Banks and has sold down its assets mainly through direct assignment transactions.

Outlook - Negative

Other Factors affecting Rating

None.

Key Financials - Standalone / Originator

Particulars	Unit	FY25(Actual)	FY24(Actual)
Total Assets	Rs. Cr.	185.59	259.93
Total Income*	Rs. Cr.	15.25	21.25
PAT	Rs. Cr.	(43.74)	0.39
Net Worth	Rs. Cr.	104.88	148.62
Return on Average Assets (RoAA)	(%)	(19.63)	0.13
Return on Average Net Worth (RoNW)	(%)	(34.51)	0.26
Debt/Equity	Times	0.64	0.64
Gross NPA	(%)	1.16	1.67
Net NPA	(%)	0.64	1.28

*Total income equals to Net Interest Income plus other income

Status of non-cooperation with previous CRA (if applicable):

Not Applicable.

Any other information

None.

Applicable Criteria

• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm
• Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm
• Non-Banking Financing Entities: https://www.acuite.in/view-rating-criteria-44.htm

Note on complexity levels of the rated instrument

In order to inform the investors about complexity of instruments, Acuité has categorized such instruments in three levels: Simple, Complex and Highly Complex. Acuite’s categorisation of the instruments across the three categories is based on factors like variability of the returns to the investors, uncertainty in cash flow patterns, number of counterparties and general understanding of the instrument by the market. It has to be understood that complexity is different from credit risk and even an instrument categorized as 'Simple' can carry high levels of risk. For more details, please refer Rating Criteria “Complexity Level Of Financial Instruments” on www.acuite.in.

Rating History

Date	Name of Instruments/Facilities	Term	Amount (Rs. Cr)	Rating/Outlook
06 Feb 2026	Secured Overdraft	Long Term	4.06	ACUITE BB \| Negative (Downgraded from ACUITE BBB \| Negative)
	Term Loan	Long Term	0.09	ACUITE BB \| Negative (Downgraded from ACUITE BBB \| Negative)
	Term Loan	Long Term	0.71	ACUITE BB \| Negative (Downgraded from ACUITE BBB \| Negative)
	Secured Overdraft	Long Term	9.04	ACUITE BB \| Negative (Downgraded from ACUITE BBB \| Negative)
	Term Loan	Long Term	11.14	ACUITE BB \| Negative (Downgraded from ACUITE BBB \| Negative)
	Term Loan	Long Term	14.75	ACUITE BB \| Negative (Downgraded from ACUITE BBB \| Negative)
	Secured Overdraft	Long Term	1.00	ACUITE BB \| Negative (Downgraded from ACUITE BBB \| Negative)
	Term Loan	Long Term	10.53	ACUITE BB \| Negative (Downgraded from ACUITE BBB \| Negative)
	Term Loan	Long Term	0.01	ACUITE BB \| Negative (Downgraded from ACUITE BBB \| Negative)
	Term Loan	Long Term	15.00	ACUITE BB \| Negative (Downgraded from ACUITE BBB \| Negative)
	Proposed Long Term Bank Facility	Long Term	88.67	ACUITE BB \| Negative (Downgraded from ACUITE BBB \| Negative)
20 Aug 2025	Secured Overdraft	Long Term	1.00	ACUITE BBB \| Negative (Upgraded from ACUITE BBB- \| Stable)
	Term Loan	Long Term	10.53	ACUITE BBB \| Negative (Upgraded from ACUITE BBB- \| Stable)
	Term Loan	Long Term	0.01	ACUITE BBB \| Negative (Upgraded from ACUITE BBB- \| Stable)
	Term Loan	Long Term	15.00	ACUITE BBB \| Negative (Upgraded from ACUITE BBB- \| Stable)
	Proposed Long Term Bank Facility	Long Term	88.67	ACUITE BBB \| Negative (Upgraded from ACUITE BBB- \| Stable)
	Secured Overdraft	Long Term	4.06	ACUITE BBB \| Negative (Upgraded from ACUITE BBB- \| Stable)
	Term Loan	Long Term	0.09	ACUITE BBB \| Negative (Upgraded from ACUITE BBB- \| Stable)
	Term Loan	Long Term	0.71	ACUITE BBB \| Negative (Upgraded from ACUITE BBB- \| Stable)
	Secured Overdraft	Long Term	9.04	ACUITE BBB \| Negative (Upgraded from ACUITE BBB- \| Stable)
	Term Loan	Long Term	11.14	ACUITE BBB \| Negative (Upgraded from ACUITE BBB- \| Stable)
	Term Loan	Long Term	14.75	ACUITE BBB \| Negative (Upgraded from ACUITE BBB- \| Stable)
25 Jul 2025	Term Loan	Long Term	15.00	ACUITE BBB- \| Stable (Downgraded from ACUITE BBB \| Negative)
	Proposed Long Term Bank Facility	Long Term	88.67	ACUITE BBB- \| Stable (Downgraded from ACUITE BBB \| Negative)
	Secured Overdraft	Long Term	4.06	ACUITE BBB- \| Stable (Downgraded from ACUITE BBB \| Negative)
	Term Loan	Long Term	0.09	ACUITE BBB- \| Stable (Downgraded from ACUITE BBB \| Negative)
	Term Loan	Long Term	0.71	ACUITE BBB- \| Stable (Downgraded from ACUITE BBB \| Negative)
	Secured Overdraft	Long Term	9.04	ACUITE BBB- \| Stable (Downgraded from ACUITE BBB \| Negative)
	Term Loan	Long Term	11.14	ACUITE BBB- \| Stable (Downgraded from ACUITE BBB \| Negative)
	Term Loan	Long Term	14.75	ACUITE BBB- \| Stable (Downgraded from ACUITE BBB \| Negative)
	Secured Overdraft	Long Term	1.00	ACUITE BBB- \| Stable (Downgraded from ACUITE BBB \| Negative)
	Term Loan	Long Term	10.53	ACUITE BBB- \| Stable (Downgraded from ACUITE BBB \| Negative)
	Term Loan	Long Term	0.01	ACUITE BBB- \| Stable (Downgraded from ACUITE BBB \| Negative)
26 Apr 2024	Proposed Long Term Bank Facility	Long Term	3.84	ACUITE BBB \| Negative (Reaffirmed )
	Secured Overdraft	Long Term	4.06	ACUITE BBB \| Negative (Reaffirmed )
	Secured Overdraft	Long Term	1.00	ACUITE BBB \| Negative (Reaffirmed )
	Term Loan	Long Term	0.01	ACUITE BBB \| Negative (Reaffirmed )
	Term Loan	Long Term	1.64	ACUITE BBB \| Negative (Reaffirmed )
	Term Loan	Long Term	2.84	ACUITE BBB \| Negative (Reaffirmed )
	Term Loan	Long Term	0.69	ACUITE BBB \| Negative (Reaffirmed )
	Term Loan	Long Term	2.36	ACUITE BBB \| Negative (Reaffirmed )
	Term Loan	Long Term	1.81	ACUITE BBB \| Negative (Reaffirmed )
	Term Loan	Long Term	13.80	ACUITE BBB \| Negative (Reaffirmed )
	Term Loan	Long Term	0.01	ACUITE BBB \| Negative (Reaffirmed )
	Term Loan	Long Term	15.00	ACUITE BBB \| Negative (Reaffirmed )
	Term Loan	Long Term	1.20	ACUITE BBB \| Negative (Reaffirmed )
	Term Loan	Long Term	4.22	ACUITE BBB \| Negative (Reaffirmed )
	Proposed Long Term Loan	Long Term	4.36	ACUITE BBB \| Negative (Reaffirmed )
	Proposed Long Term Bank Facility	Long Term	58.65	ACUITE BBB \| Negative (Reaffirmed )
	Proposed Long Term Bank Facility	Long Term	5.00	ACUITE BBB \| Negative (Reaffirmed )
	Term Loan	Long Term	15.76	ACUITE BBB \| Negative (Reaffirmed )
	Term Loan	Long Term	18.75	ACUITE BBB \| Negative (Reaffirmed )
	Proposed Non Convertible Debentures	Long Term	10.00	ACUITE Not Applicable (Withdrawn)
28 Apr 2023	Proposed Non Convertible Debentures	Long Term	10.00	ACUITE BBB \| Stable (Reaffirmed)
	Proposed Long Term Bank Facility	Long Term	3.84	ACUITE BBB \| Stable (Reaffirmed)
	Cash Credit	Long Term	10.00	ACUITE BBB \| Stable (Reaffirmed)
	Cash Credit	Long Term	1.00	ACUITE BBB \| Stable (Reaffirmed)
	Term Loan	Long Term	7.92	ACUITE BBB \| Stable (Reaffirmed)
	Term Loan	Long Term	4.84	ACUITE BBB \| Stable (Reaffirmed)
	Term Loan	Long Term	3.49	ACUITE BBB \| Stable (Reaffirmed)
	Term Loan	Long Term	5.61	ACUITE BBB \| Stable (Reaffirmed)
	Term Loan	Long Term	5.21	ACUITE BBB \| Stable (Reaffirmed)
	Term Loan	Long Term	2.25	ACUITE BBB \| Stable (Reaffirmed)
	Term Loan	Long Term	4.23	ACUITE BBB \| Stable (Reaffirmed)
	Term Loan	Long Term	2.69	ACUITE BBB \| Stable (Reaffirmed)
	Term Loan	Long Term	17.19	ACUITE BBB \| Stable (Reaffirmed)
	Term Loan	Long Term	10.00	ACUITE BBB \| Stable (Reaffirmed)
	Term Loan	Long Term	15.00	ACUITE BBB \| Stable (Reaffirmed)
	Term Loan	Long Term	3.80	ACUITE BBB \| Stable (Reaffirmed)
	Term Loan	Long Term	7.83	ACUITE BBB \| Stable (Reaffirmed)
	Term Loan	Long Term	2.69	ACUITE BBB \| Stable (Reaffirmed)
	Term Loan	Long Term	3.34	ACUITE BBB \| Stable (Reaffirmed)
	Term Loan	Long Term	1.17	ACUITE BBB \| Stable (Reaffirmed)
	Proposed Long Term Loan	Long Term	4.36	ACUITE BBB \| Stable (Reaffirmed)
	Proposed Long Term Bank Facility	Long Term	33.54	ACUITE BBB \| Stable (Reaffirmed)
	Proposed Long Term Bank Facility	Long Term	5.00	ACUITE BBB \| Stable (Assigned)
	Non-Covertible Debentures (NCD)	Long Term	5.00	ACUITE Not Applicable (Withdrawn)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
Not Applicable	Not avl. / Not appl.	Proposed Long Term Bank Facility	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	88.67	Simple	ACUITE BB \| Negative \| Reaffirmed
Jana Small Finance Bank Ltd.	Not avl. / Not appl.	Secured Overdraft	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	9.04	Simple	ACUITE BB \| Negative \| Reaffirmed
A U Small Finance Bank	Not avl. / Not appl.	Secured Overdraft	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	4.06	Simple	ACUITE BB \| Negative \| Reaffirmed
IDFC First Bank Limited	Not avl. / Not appl.	Secured Overdraft	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	1.00	Simple	ACUITE BB \| Negative \| Reaffirmed
Capital Small Finance Bank Ltd.	Not avl. / Not appl.	Term Loan	23 Apr 2018	Not avl. / Not appl.	23 Jul 2025	0.09	Simple	ACUITE BB \| Negative \| Reaffirmed
Capital Small Finance Bank Ltd.	Not avl. / Not appl.	Term Loan	02 Feb 2019	Not avl. / Not appl.	02 Feb 2026	0.71	Simple	ACUITE BB \| Negative \| Reaffirmed
IDFC First Bank Limited	Not avl. / Not appl.	Term Loan	23 Jul 2018	Not avl. / Not appl.	23 Jul 2030	10.53	Simple	ACUITE BB \| Negative \| Reaffirmed
IDFC First Bank Limited	Not avl. / Not appl.	Term Loan	27 Mar 2017	Not avl. / Not appl.	27 Mar 2024	0.01	Simple	ACUITE BB \| Negative \| Reaffirmed
IDFC First Bank Limited	Not avl. / Not appl.	Term Loan	23 Jul 2018	Not avl. / Not appl.	23 Jul 2028	15.00	Simple	ACUITE BB \| Negative \| Reaffirmed
LIC Housing Finance Ltd.	Not avl. / Not appl.	Term Loan	24 Mar 2017	Not avl. / Not appl.	01 Aug 2027	11.14	Simple	ACUITE BB \| Negative \| Reaffirmed
LIC Housing Finance Ltd.	Not avl. / Not appl.	Term Loan	27 Feb 2018	Not avl. / Not appl.	01 Jul 2028	14.75	Simple	ACUITE BB \| Negative \| Reaffirmed

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Tejas Chaugule
Analyst - Rating Operations

Contact details exclusively for investors and lenders

Mob: +91 8591310146
Email ID: analyticalsupport@acuite.in

About Acuité Ratings & Research

Acuité is a full-service Credit Rating Agency registered with the Securities & Exchange Board of India (SEBI). The company received RBI Accreditation as an External Credit Assessment Institution (ECAI) for Bank Loan Ratings under BASEL-II norms in the year 2012. Acuité has assigned ratings to various securities, debt instruments and bank facilities of entities spread across the country and across a wide cross section of industries. It has its Registered and Head Office in Kanjurmarg, Mumbai.

Disclaimer: An Acuité rating does not constitute an audit of the rated entity and should not be treated as a recommendation or opinion that is intended to substitute for a financial adviser's or investor's independent assessment of whether to buy, sell or hold any security. Ratings assigned by Acuité are based on the data and information provided by the issuer and obtained from other reliable sources. Although reasonable care has been taken to ensure that the data and information is true, Acuité, in particular, makes no representation or warranty, expressed or implied with respect to the adequacy, accuracy or completeness of the information relied upon. Acuité is not responsible for any errors or omissions and especially states that it has no financial liability whatsoever for any direct, indirect or consequential loss of any kind, arising from the use of its ratings. Ratings assigned by Acuité are subject to a process of surveillance which may lead to a revision in ratings as and when the circumstances so warrant. Please visit our website (www.acuite.in) for the latest information on any instrument rated by Acuité. Please visit https://www.acuite.in/faqs.htm to refer FAQs on Credit Rating.

Note: None of the Directors on the Board of Acuité Ratings & Research Limited are members of any rating committee and therefore do not participate in discussions regarding the rating of any entity.