Under tie-up, indusind Indel Money Chief Executive Umesh Mohanan on Wednesday said the bank will offer gold loans to its customers at competitive rates, originating by Indel Money.
“We will originate and process gold loans under this co-lending partnership on the basis of mutually formulated credit parameters and eligibility criteria. We will also be able to process the gold loan through the entire life-cycle of the loan including sourcing, documentation, collection and loan servicing. Mohanan, who is also the executive director of the diversified group.
The group is engaged in car and two-wheeler retail, media and film production and EPC contracts.
While IndusInd Bank will take 80 per cent of the gold loan generated from the co-lending arrangement in its book, the remaining 20 per cent will be funded by Indel Money, Mohanan told PTI without specifying how much incremental growth he expects in the AUM. Contract.
The co-loan partnership as a pilot is running successfully this month and a national launch is expected soon, he said.
Srinivas Bonam, Head of Inclusive Banking, IndusInd Bank said that this collaboration is in line with the bank’s strategy to bring efficient and inclusive lending solutions.
Indel Money entered the gold loan market, offering loans of up to two years, with a tenure of only three months for loans. Even after many years, Indel is the only gold loan company that offers gold loan of two years, though others have now started giving loans up to one year.
Indel has a network of 191 branches spread across Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, Telangana and Puducherry, and plans to enter Orissa, Bengal and Maharashtra this fiscal, while Gujarat and Rajasthan in the next financial year. IndusInd, on the other hand, has more than 2,000 branches across 760 locations.
Mohanan had recently told PTI that Indel closed FY21 with a live gold loan AUM of Rs 580 crore, up from Rs 336 crore in FY10 and Rs 850 crore in worst case AUM and Rs. 1,000 crore target in the scenario. .
A part of the diversified Indel Corporation with revenues of over Rs 1,000 crore last year, Indel entered into gold loans in 2013, first by offering a one-year-long loan against gold pledge and then for two years in a similar manner. In the industry, which has never seen more than three months later they just auction off and force the customer out.
The impact of its long-term loan offering forced Muthoot groups and large companies to become firmly grounded in recent times.
Finance to follow the firm, aside from its standard three-month period.