Gold loan player Indel Money to more than double his loan this financial year

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Kochi-based Indel Money, which pioneered long-term credit in the gold lending business, aims to more than double its loan portfolio to over Rs 1,400 crore this financial year.

Indel, which was the first to introduce loans of up to two years to the gold loan market that would otherwise only provide 3-6 months of credit, has already exceeded its original target to hit the AUM of Rs 1,000 crore in August.

The lender had closed FY22 with a loan book of Rs 640 crore, compared to Rs 336 crore in FY20 and Rs 580 crore in FY21.

According to estimates, the organized gold loan market is currently valued at Rs 4.4 lakh crore and is expected to grow at an annualized growth of 19.5% over three years to reach Rs 7.55 lakh crore by April. exercise 24, he said.

“We have already surpassed our initial loan book target of Rs 1,000 crore by March. We started the year with a loan book of Rs 640 crore. Of the total loan portfolio currently, Rs 840 crore is on our book and the rest is evenly split between the co-loan portfolio and direct allocations,’ Umesh Mohanan, managing director of Indel Money, told PTI. Friday from Kochi.

In March, he had told this agency that they were looking at loan sales of Rs 1,000 crore this financial year.

He attributed the faster-than-expected growth in loans to higher demand following the normalization of the economy and the rise in the price of gold which is leading to higher disbursements. Another reason is the increase in joint loans and direct assignments, as well as the expansion of its Odisha and Telangana/Andhra and Karnataka footprint.

He said that of the targeted AUM of Rs 1,400 crore by March, Rs 1,100 crore will be listed and the rest will be off-book.

On the expansion plan, he said they have already opened 16 branches in Odisha and will have 30 by March, and opened 25 branches in Telangana and Andhra and 10 in Karnataka. The next expansion will be in Gujarat and Maharashtra where it will have 25 branches each by March, half of which will be functional from next month.

Mohanan said that since the promoters decided to inject Rs 80 crore of capital into the company this financial year, of which Rs 30 crore has already been infused, they will not go into private equity funds as planned earlier. to raise around Rs 400 crore.

Indel operates over 250 branches across Kerala, Tamil Nadu, Karnataka, Andhra, Telangana, Odisha and Pondicherry. He also plans to enter Goa and Bengal, MP and Rajasthan at a later stage.

Regarding the co-loan, Mohanan said he has linked up with IndusInd Bank and will expand it further and has just entered into a similar agreement with DCB Bank. It is also in the final stages of talks with a major private sector bank and a public lender, he added.

Whether the co-loan drives growth, he said, will be both, as balance sheet growth is also needed, as only 20% of the loan remains on its book in co-loan.

Meanwhile, they have entered the personal lending business targeting only its existing gold lending customers and will be done digitally only. The average note size will be Rs 20,000 for a term of 3-6 months and depending on credit history, a borrower will have to pay 12-17% interest, he said.

(This story has not been edited by the Devdiscourse team and is auto-generated from a syndicated feed.)

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