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Magma to lend Rs 10,000 cr in FY12

06 Jul 2011 Evaluate

Non-banking finance company Magma Fincorp aims to lend Rs 10,000 crore in current fiscal, up 50% from what it advanced last fiscal, especially to tractors, car and SME segments. Magma last fiscal lent to the tune of Rs 5,415 crore. Apart from this, the Kolkata-based NBFC is eyeing assets under management to grow to Rs 15,000 crore on the back of growing lending business. It has assets under management of Rs 10,907 crore at present. Magma is lending car loans at 12-15% rate of interest while old vehicle loans at 17-20%. It charges 18-20% interest rate on financing tractors loans.

The company, apart from consolidating its position for its core products like car, commercial vehicle and construction loans in the market, will also focus to grow the higher yield products such as Suvidha, Tractor and SME Loans, which will contribute significantly in the company's business. It has also plans to open 29 offices across the country to boost its lending business. Currently it has 171 branches in 20 states with customer base of 2.36 lakh customers.crackcrack

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