Mangal Credit and Fincorp Enters Gold-Loan Market, Becomes First Indian NBFC to Offer Loans Against Diamond Jewellery


Mangal Credit and Fincorp Limited (MCFL), a leading non-banking financial company (NBFC) promoted by industry veteran Mr. Meghraj Jain, has announced its’ entry into the loan against gold and diamond jewellery market with the launch of its’ maiden retail branch in the Mumbai suburbs of Vile Parle followed by the launch of five more outlets in Andheri, Kandivali, Mira Road, Dombivali and Bhandup by March 2021.

The plan to enter the growing gold and diamond jewellery loan business is a natural extension of the company to leverage the promoter’s two decades plus experience in the fine jewellery business as well as the company’s sustained success in providing loans to SME & MSME sectors since 2012. Additionally, the company has brought forward its’ plans to enter the secured loan segment for a year, taking into account of the possible surge in demand for asset-based personal finance in post-COVID recovery phase.

Around 75 per cent of MCFL’s assets will be from gold and diamond jewellery loans, while SME & MSME loans cover the remaining. The average ticket size of gold and diamond jewellery loans is INR 75 thousand with the interest rates starting from 1 per cent per month onwards. MCFL which has an equity size of INR 19.31 crore, now has a loan book of INR 65.01 crore as of March 2020 which has grown by 19 per cent YoY. The company expects a surge in demand in Q3 and Q4, with lockdown restrictions easing across the country.

MCFL estimates an earning CAGR of 31.85 per cent on AUM of INR 150 crore over FY 2020-2022. The remarkable financial metrics underline the high operational efficiency in the company’s business operations while maintaining zero borrowings from external market participants.

MCFL has reported 79 per cent increase in its’ standalone net profit to INR 10.76 crore in the year ending March 2020 as compared to INR 6.01 crore net profit reported in the year ending March 2019.

Mr. Meghraj Jain, Managing Director, Mangal Credit and Fincorp Limited

Speaking further on the launch, Mr. Meghraj Jain, Managing Director, Mangal Credit and Fincorp Limited states, “For us at Mangal Credit and Fincorp Limited, the secured loan business is a natural extension of our existing portfolio. With aim to become a well-entrenched and dynamic player in the gold and diamond jewellery loan market by 2023. Our initial strategy was to commence the gold and diamond jewellery loan business next year, but then we advanced our plans viewing the current situation – gold and diamonds are a rising asset class and there is good demand for these loans now. With the launch of these branches, we expect to cater to the needs of people in financial distress. We believe that in the post-COVID period the need for asset-based personal finance will witness significant progress, and with gold prices on a secular growth phase, we foresee a viable business opportunity to drive growth in this segment. Most of the gold and diamond jewellery loan customers are into small and medium businesses. Post unlock, they would require capital to restart and grow. Gold and diamond jewellery are an easy loan where the disbursement process can be completed over the counter within 20 minutes. That’s why salaried professionals, farmers, traders and small businessmen, prefer this product. The surge in gold prices over the last few months is also one of the factors driving individuals to monetise their unutilised gold to tide over the liquidity crisis. It’s been interesting to watch how the price of yellow metal has rallied more than 30 per cent over the last six months. We will raise funds through privately listed debentures and bank loans when we decide on expanding our network to Rajasthan and Gujarat next year, after setting up the first few retail outlets in Maharashtra and making them operationally profitable.”

From an industry perspective, the organized gold and diamond jewellery loan business is a less-populated industry, with the presence of hand-picked significant players. The formal banking sector is highly focused on niche customers and their needs, creating an opportune prospect for a new entrant like MCFL. The company is likely to ride the gold and diamond jewellery loan industry wave which is expected to grow at a CAGR of about 13.4 per cent over FY 2020-2022 to reach about INR 4,50,000 crore in FY 2022, with NBFCs leading the way.”

MCFL’s vast network in the jewellery business in the western and northern parts of India, equity funded current loan book in SME and MSME segment, overall zero debt status, and an ability to organically scale-up the credit business characterized by low operational risks, has provided the right levers to formidably grow the gold and diamond jewellery loan business.

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Policybazaar Unveils its new brand campaign "AapKiSideHai"

Policybazaar Unveils its new brand campaign

Akshay Kumar delivers the brand’s promise of always being on the customer’s side

Gurugram, 19th Sept, 2020: (Twitter handle: PolicyBazaar), India’s largest online insurance marketplace with over 10 million customers, showcases its commitment to customers in its new television campaign “AapKiSideHai”. The new ad campaign featuring Policybazaar brand ambassador, Akshay Kumar, highlights the brand’s promise of embracing a holistic customer centric approach while helping to bridge the insurance protection gap in India.

Policybazaar’sAapKiSideHai campaign seeks to reassure its customers on being a dependable Insurance partner for them, every step of the way. The brand has always focused on distributing products like term insurance, health insurance, zero commission ULIP’s and motor insurance that are optimal from a customer perspective. Policybazaar is now extending the brand promise beyond the purchase experience to ensure that consumers get the highest levels of service throughout the policy lifecycle.

The new brand campaign reinforces Policybazaar core value of putting the customer first by delivering on its promise of providing a trusted platform for all types of insurance products. The brand is committed to guiding the customer throughout the insurance journey, starting from recommending the right products at affordable pricing, ensuring thatthe policy issuance process is smooth and fast, and, to providing services and claims assistance when needed.

“While we continue to highlight the importance of Health & Term life Insurance through our marketing campaigns, with the brand promise of Policybazaar AapKiSideHai, we also intend to position Policybazaar as a customer centric brand, that is committed to stand by its customers, both pre and post purchase”, said Samir Sethi, Head of Brand Marketing, The new ad series highlights Policybazaar’s unparalleled support to customers, while providing them with the ease of comparing and buying term and health plans online with guidance at each & every step.

Speaking about the TVC launch, Sharat Dhall, Chief Operating Officer, said, “Our ultimate aim is to provide 360-degree assistance to customers that starts from when the policy is bought, to provide assistance when the claim is paid out, should such a situation arise. Winning and maintaining customer trust is a strong ethos within the company and this campaign reflects that. At a time when the world is grappling with a crisis like no other, the brand intends to instill confidence in the customers’ buying decisions by assuring them protection of their futures with the right insurance products & thorough assistance throughout the journey.”

The new brand campaign in its series displays moments of indecision that people may have while investing in protection products. It addresses these queries &emphasizes the importance of nurturing a bond with the consumers thereby creating customer delight.