Andromeda Reports Increase in Loan Disbursal by ~23% to ₹75,397 Crore in FY24, Aiming for ₹1 Lakh Crore in FY25 - Hindustan Times
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Andromeda Reports Increase in Loan Disbursal by ~23% to 75,397 Crore in FY24, Aiming for 1 Lakh Crore in FY25

Published on Apr 23, 2024 03:21 PM IST

Home loan segment shows robust growth, reaching ₹33,918 crore, a ~22% increase Y-O-Y

Raoul Kapoor, Co-CEO of Andromeda Sales and Distribution Pvt Ltd
Raoul Kapoor, Co-CEO of Andromeda Sales and Distribution Pvt Ltd
ByHT Brand Studio

New Delhi, April 20, 2024—Andromeda Sales and Distribution, India's leading loan distribution network, witnessed remarkable growth in its loan disbursal business during the Financial Year (FY) 2023-24. The loans disbursal soared by over 23% to touch 75,397 crore, driven primarily by the stellar performance of the home loan segment. The home loan business surged to approximately 33,918 crore in FY24, up by over 22% from 27,798 crore in FY23.

Mr. Kapoor emphasized the company's heavy reliance on technology to manage a robust agent base of over 25,000, which is set to increase significantly.
Mr. Kapoor emphasized the company's heavy reliance on technology to manage a robust agent base of over 25,000, which is set to increase significantly.

In FY24, the Loan against Property distribution hovered around 24,776 crores, an increase of 10.33% from the preceding year's 22,456 crores. Meanwhile, business loans experienced a notable surge of approximately 32%, rising from 5,255 crores in FY23 to 6,927 crores in FY24. Moreover, there was a substantial increase observed in the personal loan and other loan segments as well.

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Rs. In Crores
Rs. In Crores

Established in 1991 as a Direct Sales Associate for Citibank, Andromeda has evolved into India's largest loan distribution firm. The company's diverse loan portfolio includes home loans, loans against property, personal loans, business loans, and other loan products.Apart from loans, Andromeda (via its group companies) is also involved in insurance and mutual fund distribution. With these initiatives, we aim to provide our agents, employees and customers a one-stop shop for any financial services products.

Home loans and loans against property are the primary revenue drivers for Andromeda. According to Raoul Kapoor, Co-CEO of Andromeda Sales and Distribution Pvt Ltd, “Despite a 50-bps increase in interest rates, the demand for home loans continues to grow, buoyed by a positive economic outlook. Digitalization, faster approvals, and increased availability and flexibility have fueled higher demand for personal loans.”

Andromeda's loan portfolio has witnessed exponential growth, increasing nearly fivefold from 15,333 crore in FY 2018-19 to 75,397 crore in the fiscal year ending March 2024, across all segments. A significant surge has been observed in the affordable housing loan sector in the second half of the current fiscal year, accompanied by a high-ticket-size demand in personal loans from salaried employees.

Looking ahead, Mr. Kapoor anticipates growth in the number of agents across India, increase in disbursals across multiple products, expansion of branches nationwide, and increased reach to tier 2 and tier 3 cities.
Looking ahead, Mr. Kapoor anticipates growth in the number of agents across India, increase in disbursals across multiple products, expansion of branches nationwide, and increased reach to tier 2 and tier 3 cities.

Andromeda has expanded its presence nationwide by establishing numerous new branches across the country. With a presence in over 100 towns and cities, the company has ambitious expansion plans. During the fiscal year ended March 2024, the company expanded its branch network to 470 branches from about 350 in the preceding year. Andromeda aims to further increase the number of branches substantially in the current financial year.

The launch of the OneAndro App marks a notable achievement for Andromeda. It offers a range of benefits for lenders and the Andro sales team, including simplified agent onboarding processes and quick disbursals across various product categories. This initiative aims to streamline financial processes and enhance the customer experience.

Mr. Kapoor emphasized the company's heavy reliance on technology to manage a robust agent base of over 25,000, which is set to increase significantly. He expressed confidence in the current fiscal year, anticipating a decrease in interest rates as inflation is likely to ease. Looking ahead, Mr. Kapoor anticipates growth in the number of agents across India, increase in disbursals across multiple products, expansion of branches nationwide, and increased reach to tier 2 and tier 3 cities.

About Andromeda Loans:

Andromeda was founded in 1991 by the present executive director, Mr. V Swaminathan. Today, Andromeda is India’s largest retail loan distributor. With a rich legacy that spans over 30 years, covering 100+ cities, 470 branches, with over 4,000 employees and a strong distributor network of over 25,000 partners, Andromeda is poised to leapfrog into the future by leveraging the power of technology. By integrating our acute understanding of the marketplace with the latest trends and developments in digital technology, we help customers find the financial products best suited to their needs.

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