Andromeda expects 58% growth in loan disbursals in FY23

New Delhi: Loan distributor Andromeda expects around 58 per cent growth in its loan disbursals to Rs 60,664 crore during the current fiscal on the back of recovery in the economy and renewed demand in the housing sector.

The company's loan disbursals, comprising home loans, loans against property, personal loans, business loans and others, rose to Rs 38,462 crore in 2021-22 from Rs 15,575 crore at the end of 2020-21. The company is currently present in 90 cities and will soon expand its presence to 25 more cities across the country, Andromeda Co-CEO Raoul Kapoor said. With Covid-19 cases ebbing, there is an improvement in business climate resulting in higher demand for loans in most of the segments, he said, adding low interest rates are also pushing the demand for loans. The non-food credit growth has accelerated to 8 per cent in February as against 6.6 per cent in the year-ago period, according to the RBI data.

For the 2021-22 fiscal year till February 25, the non-food credit growth accelerated to 6.2 per cent against 3.7 per cent for the same period of the previous year. "A benign interest rate regime and the Finance Ministry's focus on the realty sector has helped in giving the necessary boost to residential real estate and we tried our best to encash the opportunity by leveraging technology and reaching out to more people," Kapoor added.

The home loan disbursals stood at Rs 17,993 crore in end-March 2022 as against Rs 7,838 crore in 2020-21, he said, adding this year the home loan target is Rs 28,966 crore. The disbursals target in the 'loan against property' is Rs 17,848 crore for the current fiscal as compared to Rs 13,060 crore. Andromeda uses technology to manage a strong agent base of more than 6,000. The use of a strong tech stack has enabled the company to engage with a growing number of agents across the length and breadth of the country, the company said