UAE Exchange to focus on small-sized loans

Financial services firm UAE Exchange India is looking to focus on small-sized loans to target financial inclusion.
The company, which is hoping to get a small banking license, was earlier focusing on remittances and foreign exchange services.
"UAE Exchange India has decided that financial inclusion is an important parameter, which was missing in our offerings, and it was the only parameter why we failed to receive a banking license last time," company's Managing Director V George Antony said in a press release.
The company has started offering small-sized personal loans, two-wheeler loans and gold loans.
"We realised that if you really want to be in the financial sector, you have to be in the credit business. The average amount of loans that we are offering is Rs 50,000 and there is a lot of demand for it," he added.

As of now, company's total loan book size, including gold loans, stands at around Rs 500 crore, he said.

UAE Exchange India is planning to double the personal loan book size year-on-year.
Before starting the loan vertical, the revenue mix was 50 per cent from the foreign exchange business, 30 per cent from money transfer and 20 per cent from the travel and tour business.
With the new focus on loan disbursement, it contributes to about 38 per cent of total revenue. Forex is 38 per cent and the money transfer business has come down to 15 per cent. Travel contributes only nine per cent, it said.

To strengthen the financial inclusion drive, apart from offering loans, the company was looking at getting into the e-wallet space and plan to announce the roll out very soon. They have also recently, rolled out e-KYC, reducing time and cost for the new accounts.
Currently, UAE Exchange has a network of 400 branches across the country and plans to add over 50 branches every year.
In 2014-15, it had net profit of Rs 30 crore and is aiming a growth rate of 20-25 per cent for the next fiscal, the release said.