Magma launches car loans in Andhra at 2.99%

Kolkata-based non-banking financial company Magma Leasing Limited has now launched car loans in Andhra Pradesh at an introductory interest rate of as low as 2.99 per cent. The company is also planning to start two new branches in the state in Ongole and Kurnool next year.

Magma, one of India's largest in retail financing with 54 offices in 13 states already has a sizeable presence in the commercial vehicle and construction equipment loans in the state with a net business disbursal of Rs 69.25 crore last fiscal.

Sanjay Chamria, managing director of Magma Leasing Limited, at a press conference in the city, officially launched the car loan scheme in Andhra Pradesh.

According to him, the company had emerged as the fastest growing retail finance company in the country with a clear rural and semi urban focus and had targeted a disbursal of Rs 109 crore in 2004-05 for the Andhra region.

"Andhra Pradesh, being a potentially big market and also as the festivity is ensuing, Magma has tailor-made the car loan scheme 'Magma Carisma' for the Andhra market. We intend to make our presence felt within the market and would like to pass on maximum benefits to the end customers by way of offering more value and strong customer service, he added. The company has decided to aggressively pursue the new scheme in Andhra through direct promotions and dealer and DSA network," Chamria said.

Magma, which disbursed Rs 867 crore worth of retail loans last fiscal, is targeting an ambitious Rs 1,352 crore this year and the company is hopeful that 'Magma Carisma' will add substantially to the company's topline.

Halfway through the year, the company has already grown significantly with a gross business nearing Rs 575 crore in the first half of the year, recording a 62 per cent growth over the corresponding period in the previous year.

The company has been growing rapidly in the last four years with a CAGR of 79 per cent and has also achieved zero NPA levels as on June 30, 2004.

The company, apart from making its presence felt in the car loans, will further strengthen presence in the region in commercial vehicle and construction equipment loans segment.

It has already made a strong beginning with disbursement of Rs 41.2 crore in the first half of the current fiscal, 75 per cent up from Rs 23.19 crore achieved in the corresponding period last year.

The company has five branches in the region in Hyderabad, Vijayawada, Vizag, Nellore and Rajamundhry. The company's annual business plan envisages intensifying its reach in semi urban and rural markets by opening 14 new branches in semi urban and rural markets.