Neogrowth Credit plans to increase the size of its loan portfolio by 45% for the next fiscal year
The city-based credit firm closed FY20 with a loan portfolio of Rs 1,350 crore and hopes to improve it slightly this year but is still hesitant to cross Rs 1,400 crore, PTI told PTI on Wednesday. Piyush Khaitan, the founder and managing director of Neogrowth Credit. .
Neogrowth Credit, launched in 2013, is funded by a group of global and national investors such as Omidyar Network, Aspada Investment, Khosla Impact, Accion Frontier Inclusion Fund, Quona Capital, IIFL Seed Ventures Fund and Leapfrog Investments.
But Khaitan refused to share the amount of their investments or the equity stake, including his in the company, citing confidentiality agreements.
Neogrowth lends in the bucket of Rs 2-75 lakh, but the weighted average loan size is only Rs 6-8 lakh with an average price of 24% and its average loan term is 18 months.
“We hope to close the loan portfolio for FY21 at around Rs 1,400 crore. We closed last year at Rs 1,350 crore. We hope to earn Rs 2,000 crore for the next fiscal year and pass the Rs 3,000 crore mark in FY 23, ”Khaitan said, basing his optimism on the recent loan application that even exceeded the days before the lockdown as businesses begin to normalize.
Since December, “our loan portfolio has been functioning well, much better in the days before containment,” he said.
The foreclosure did not very seriously affect asset quality as they chose to close disbursements in the first six months of the year, with gross NPAs averaging 3% and a net bad debt ratio of less than 1, he said.
Although technology-based, the company, which has branches in 28 cities in 15 states, contributes 85% of credit demand, he said.
It has a client base of 28,000 MSMEs in 70 industry sub-segments.
It has launched a new digital platform ” Digibizz ” to boost its credit demand and plans to tap 2 lakh customers in the next fiscal year with this app. PTI BEN MKJ
Warning :- This story has not been edited by Outlook staff and is auto-generated from news agency feeds. Source: PTI