"We are aiming for a 35-40 per cent growth in disbursements in the festive season, which will be around Rs 3,000 crore in sales," the company's president for consumer finance Devang Mody told PTI.
The consumer durables finance business earns an effective yield of 22-24 per cent and even though the average ticket size is Rs 28,000 with a tenor of eight months which is smaller, it helps the diversified financial business with opportunities of cross selling as this adds over 95 per cent of new customers, he said.
In most cases, the company, which competes with credit card issuing commercial banks among others in the market place, gets interest in the form of a subsidy from manufacturers so that consumers get interest-free loans.
Mody said he expects the retail market to notch up a 12-15 per cent growth but is confident of growing faster than it on the back of a bigger network and addition of the new mobile phones category.
Through the growth, the company is targeting to increase its market share in the consumer durable loans to 24 per cent as of now from 16 per cent earlier.