Non-banking finance company Karvy Financial Services is now expanding its base in Pune and set a target of doubling its loan portfolio to Rs 200 crore in next two years.At present, KFSL offers small-ticket loans against gold and property, and finances purchase of commercial vehicles.
"Pune is a strategic market for us. From here, we can cover rest of Maharashtra which has a huge potential. It has a large base of MSMEs. We are expecting to double our business from Pune in the next two years. KFSL started its operation in Pune in August 2011 from Pimpri-Chinchwad branch and since then has scaled up to four branches and will open more than 10 locations in the city," said Saurav Kothiyal, head, secured business Loans, Karvy Finance.
He added, "We believe that availability of finance facility for MSME segment is the growth engine of any economy. In the high interest rate scenario followed by under served areas with less availability of finance options, we offer competitive interest rates in current scenario."
In Pune, company's monthly sales volume is of around Rs 7.5 crore of crore from all the three products. Its average loan size is about Rs 6 crore for business credit, while it is Rs 1 crore for gold loans and Rs 40 lakh for commercial vehicles.
Its more than 70 per cent business comes from loan against property. Overall, the company expects its loan book to quadruple to Rs 7,000-8,000 crore over three-four years from about Rs 2,000 crore now.