Magma Fincorp has seven lakh customers who do not have access the banking system and is looking to attain significant collaborations occurring between several present activity lines and that of the recent ventures made in home financing space and general insurance.
People interested to get finance for buying tractor, construction equipment; utility vehicles and car prefer the general insurance products from the Non-Banking Finance Company (NBFC), which is based in Kolkata and has branches in 20 states.
Magma’s Vice President, Dhrubashish Bhattacharya stated that this insurance product will be included in the packaged offered by the company. On Monday, he also said to the press person that the company anticipated for the translation of policies, which were brought for renewal, into innovative business.
In addition, the company is expecting the customers to get the home loans and these clients are from Tier-II and Tier-III cities. Mr.Bhattacharya told that the focus of the company will be on home loan ranging up to 20 lakhs. The main concentration of the team was on the home loan business. Magma was specifically waiting to get the final authorization from National Housing Bank.
Last month, the NBFC had declared that it has decided to purchase GE Money Housing Finance. This company might also acquire GE Money Financial Services’ complete portfolio of home equity loans. The worth of this deal was 1,600-crore.
Mr. Bhattacharya told that the company’s clients did not hold permanent account number (PAN) and bank accounts. The clients are mainly from rural and semi-urban regions. If people approach the private firms, they are charged with high interest rate as the customers are unable to produce several documents required by the banks. Therefore, people rely on NBFCs such as Magma. NBFC has its strength on collection group network and wide marketing. The focus of the NBFC was to raise the payments of retail loan by 40% in Tamil Nadu.