Amid rising home loan rates, Andromeda has experienced substantial growth in its loan disbursals during the Financial Year 2022-23.
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Amid rising home loan rates, Andromeda has experienced substantial growth in its loan disbursals during the Financial Year 2022-23. The company’s loan distribution increased by nearly 63% to reach Rs 60,000 crore due to the excellent performance of all the loan segments.
In a statement, Andromeda said it plans to maintain the momentum and aims to achieve a growth rate of 12-15% in the fiscal year 2023-24.
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Andromeda was launched in 1991 as a Sales Associate for Citibank and has since expanded to become one of the largest loan distribution firm in India. The products distributed by Andromeda comprise mainly home loans, loans against property, personal loans and business loans.
With a presence in over 1000 towns and cities, the company has ambitious expansion plans. According to Raoul Kapoor, Co-CEO of Andromeda Sales and Distribution Pvt Ltd, despite the Reserve Bank of India raising the key interest rate since May 2022, the demand for housing loans has not been significantly impacted and the homebuyers understand that the rates would come down eventually.
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The economy has been doing well and the situation has improved significantly after a challenging period following the outbreak of the Covid pandemic. Kapoor is optimistic about the future and believes that India is on track to become the third-largest economy in the next few years.
The loan disbursals of Andromeda have grown multiple times; from Rs 15,333 crore in FY 2018-19 to 36,842 crore in FY2021-22 to Rs 60,000 crore in the year ending March 2023, and the growth has been across all segments.
Andromeda’s ‘home-loan’ disbursals were Rs 26,328 crore at the end of March 2023, up from Rs 17,505 crore in 2021-22. The ‘loan against property’ disbursals were Rs 20,649 crore, up about 78.7% from Rs 11,556 crore in the fiscal year 2021-22. The company’s ‘business loan’ disbursals grew by 101.50% in FY 2022-23 to Rs 5,525 crore, compared to Rs 2,742 crore in FY 2021-22. The ‘personal loan’ disbursals rose to 59.04% in FY 22-23 to Rs 6,551 crore, compared to Rs 4,119 crore in the preceding financial year. The company has also increased its branch network to 350 branches in the fiscal year ended March 2023 from about 300 in the preceding year. The company aims to increase the number of branches to 400 in the current financial year.
Kapoor said the company relies heavily on technology to manage a strong agent base of more than 25,000, which is also set to grow.
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Andromeda has been witnessing a large number of queries from prospective home buyers, which is a positive sign for the company’s future growth, he added.
