Muthoot Pappachan Group, a Kerala-based two-wheeler loan company plans to enter the car loan market
Mumbai, July 15: Kerala-based two-wheeler loan company Muthoot Capital Services from the Muthoot Pappachan Group is planning to widen its reach at the national level and also enter the car loan market.
“We are a leading provider of two-wheeler finance in the South. Our aim is to emerge as a leading national player in two-wheeler loans. We are also planning to make a foray into new car/used car financing,” Managing director Thomas George Muthoot said.
Stating that there is a huge demand-gap in the used car financing, he said, “There is a growing demand for used car loans and we hope to cater to this demand”, as reported by economictimes.indiatimes.com.
On expansion plans, Chief Executive R Manomohanan said the company is targeting major growth from the northern states and from West Bengal in the current financial year.
He also said they will be tapping the debt market to drive growth by selling NCDs, CPs, securitisation etc.
Its two-wheeler financing is known for its ‘ladies only’ loan scheme, which offers loans at 7.19 per cent to women. The scheme is available across 15 states where Muthoot Capital has its presence.
“While majority of the disbursements have been in Kerala, we plan to increase the reach and penetration in other states as well,” Manomohanan said.
Helped by a 40 per cent rise in disbursements, the company on Thursday reported over 19 per cent rise in net income at Rs 4.5 crore for the June quarter, while its revenue rose to Rs 64.3 crore from Rs 50.7 crore. Financial expenses rose from Rs 20.9 crore to Rs 25.2 crore.
It disbursed 48,582 loans amounting to Rs 256.22 crore during the quarter, compared to 36,747 loans amounting to Rs 196.10 crore during the same quarter last year.
Loan portfolio rose to Rs 1,090.34 crore at the end of the quarter from Rs 878.20 crore. Its customer base rose to 3,51,811 from 2,99,385.