Thanks to digitised systems and processes, Indel Money has made its branches virtually available at the doorsteps of its customers:
Indel Money has grown by more than 25% in the first quarter of the current FY in terms of the AUM. The growth has mainly been driven by revival of the credit demand in the semi-urban and rural areas. It has developed its gold loan products keeping in mind the interest of the customers and investors. Its gold loans aim to safeguard the customers against gold price volatility. On one hand, the borrowers benefit from the flexibility and convenient access to credit. On the other hand, investors have the support of liquidity and security.
Umesh Mohanan, Executive Director & CEO, indicates: “We have an aggressive expansion outlook to capture a sizeable market share with our short-term and long-term gold loans, digital gold loan solutions and efficient customer service. We are working towards taking the AUM to Rs13 billion in FY22-23. We have plans to open 80 new branches and expand our presence to Maharashtra, Gujarat and West Bengal in FY22-23. The company has approx. 1.4 lakh customers.”
Digital Personal Loans
The launch of the digital personal loan is a part of Indel Money’s ongoing digital transformation drive. Any existing KYC-fulfilled Indel Money gold loan customer with a decent gold loan repayment track record can apply for Indel Money’s digital personal loan. The loan amount will be sanctioned on the basis of the average transaction value of the particular customer for the previous 12 months. The rate of interest is in the range of 10-20%, which shall vary on the basis of credit scoring. Whereas the repayment tenure is in the bracket of 3-6 months.
Banking on its comprehensive and easy approval and loan processing systems, customers will be able to meet their financial requirements in the comfort of their home. Indel Money’s near-term goal is to tap the underserved demand for immediate cash among its existing customers to help them fulfil various personal commitments and exigencies.
Umesh elaborates: “We are presently offering the digital personal loan to our existing customers who belong to the low monthly income group. Due to growth in the internet penetration beyond metro cities and the increase in our digital customer base, the success of our digital personal loan launch will motivate us to go for a more broad-based roll-out of personal loan products.”
Multi-Purpose App
Indel Money has digitized its transaction processes in such a way that the physical presence of the customers at branches have reduced to the minimum. Umesh explains: “Through our mobile app – named Indel Money – these customers can apply for personal loan, avail the loan and repay it. The response has so far been excellent thanks to easy accessibility, convenience and optimum usability. Thanks to digitized systems and processes, we have made our branches virtually available at the doorsteps of our customers.”
Co-lending Partnership
The co-lending partnership with banks places greater responsibility on Indel Money to excel in managing the gold loan lifecycle. The businesses across sectors have demonstrated adaptability and resilience to accustom to the new normal and spur growth in the post-pandemic phase. Offering easy access to credit to fuel business revival is one of its priorities. To support the revival, it has launched a 2-year gold loan scheme.
Umesh informs: “This is especially for those businesses that face credit scrutiny by the lenders while evaluating credit worthiness. The co-lending partnership underscores the trust and value that the bank has on our expertise and technology capability to meet unsolved credit needs of the underserved segments of borrowers. The partnerships, which are with IndusInd Bank and DCB Bank, helps us serve an extensive range of customers across geographies and ticket-size.”
Gold Loan Potential
Gold loan has emerged as the quickest financing option available without any bureau or credit history check during the period of credit stress. According to various estimates, the organized gold loan is currently valued at Rs4.14 trillion and is projected to grow at 3-year CAGR of 19.5% to reach Rs7.55 trillion by FY2024. Umesh feels: “Being the second largest consumers of gold, the country offers huge opportunities to grow the gold loan book for the gold loan companies by meeting unmet market demand. With the economy regaining its growth momentum, gold loan demand from individuals and the MSME sector is expected to increase further.”
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