Mumbai: Pinning their hopes on above-normal monsoon this year, NBFCs with presence in two-wheeler finance segment have chalked out ambitious growth plans.
While Mahindra Finance is looking at turnaround story in the two-wheeler segment to fuel growth, Muthoot Capital Services has chalked out ambitious plans to increase its revenue coming from the two-wheeler, especially scooter, finance in the current fiscal.
A senior executive of Mahindra Finance said, “All of us (NBFCs) are waiting for turnaround story into the two-wheeler sector due to the likelihood of above normal monsoon this year and we will have to see how original equipment manufacturers respond to this by the increase in volumes including launch of new products. We, as enablers, will also get benefited out of it.”
Muthoot Capital Services Ltd (MCSL), a Kochi-based NBFC, which is into commercial finance, is planning to disburse loan against scooter at Rs 640 crore out of its total loan disbursement plan of Rs 1,182 crore for the current fiscal.
“MCSL is planning to disburse Rs 1,182 crore this financial year. Scooter disbursement will contribute Rs 640 crore (54 per cent) out of the total disbursement planned in which disbursement under the women’s scheme will be Rs 256 crore and Rs 54 crore from the students scheme,” Muthoot Capital Services chief executive officer R Manmohanan told PTI.
The company is looking at providing scooter finance of Rs 640 crore for 1,60,000 units in the current fiscal. Overall, MCSL had provided loans of Rs 418.47 crore against 90,272 scooters in the last fiscal.
Similarly, the company is also looking at extending finance to women for scooter under its ‘ladies only’ scheme at Rs 256 crore, numbering 64,000 from 39,878 units financed by at Rs 184.3 crore under the category in the last fiscal. The company provides loans under the scheme at an annual lending rate of 7.19 per cent.
Moreover, the company plans to disburse loans of Rs 54 crore for scooter purchase to the students numbering 13,500 by the fiscal end, he said.
“The launch of students only scheme by the company sometime back a new segment to tap young school and college going youngsters will contribute 10 per cent of the scooter disbursement planned for the current financial year,” he said.
Last year, scooter sales grew nearly 12 per cent to 50 lakh units, against the 45 lakh units sold in FY2015.
Currently, almost 35 per cent of the scooter customers across brands are women and girls. This percentage is expected to move up to 45 per cent in the years ahead.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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