MANGAL CREDIT & FINCORP LTD. (MCFL) TURNS THE TIDE OF ITS BUSINESS BY ENTERING GOLD AND JEWELLERY LOAN MARKET
Written By- Indranil Roy
Non-Banking Financial Solutions have always played a prominent role in the Indian Economy. While they do not have a proper banking licence, these financial institutions complement and compete with banks and offer a range of financial services, such as credit, loans, retirement schemes, etc. Amongst them, Loans have a next-level significance for helping people address unprecedented financial requirements and emergencies. With the changing financial needs, NBFCs have launched – a variety of loans ranging from personal loans, SME loans, gold loans, etc. Everybody from all walks of life needs money and at times when burrowing, is not an option, loans help in addressing the shortage.
In India, loans have a large market share and the potential is grasped by, companies of all sizes. The diversity is followed by, substantial volatility that often confuses people on which brand to trust. Loan – is a product formed upon trust and integrity. While daily changes disrupt the prevailing practices, a company with experience and customized schemes will have the upper hand. Mangal Credit & Fincorp Ltd. is one such NBFC Institution sustaining around a decade of trust.
Headquartered in Mumbai, Maharashtra, it is one of the connoisseurs having customized loan schemes and simplified transaction methods. MCFL specializes in providing loans, credit facilities and private educational funding. Recently, it forayed into the loan against gold and diamond jewellery market, following the launch of its retail branch in Mumbai Suburbs, and outlets in Andheri, Dombivli, Santa Cruz, Ghansoli, Virar, Kandivali and Ahmedabad.
THE FOUNDATION AND THE PEOPLE BEHIND IT
MCFL took its first step in the market in 2012, through the hands of Meghraj Jain (Founder & MD). Owning to 25+ years, in leasing, jewellery, and other financial aspects, Mr Meghraj aimed to establish a foundation having diversified loan solutions to assist customers lacking access to conventional banking solutions. His prowess, innovative mindset and leadership abilities made Mangal Group of Companies rose as a one-stop-shop in its segment. It has Home Loan, Personal Loan, Loan Against shares, SME Loan, Loan against Property, Working Capital, Construction Finance and Business Loan. In 2020, he introduced the loan against gold and diamond jewellery – its crowning jewel. MCFL spearheads the Gold loan, personal loan, MSME Loan and Business Loan.
But, propelling such a widespread business is not one man’s job. While Mr Meghraj is the chief overseer, he is assisted by, his son Mr Hardik Jain, MD of Mangal Finserv Pvt. Ltd. a corporate arm of MCFL that oversees the other loan solutions and provides insurance products as well.
PRODUCT PORTFOLIO
Excellence, Innovation, Diversification, Customer Focus and Transparency – The overall business of MCFL stands upon these core values. The Gold and Diamond Jewellery Loan Scheme isn’t just its flagship, but evidence of its core values too. The scheme is primarily targeted at farmers, working professionals and Business people. At minimal and simple documentation, customers can avail from 3k to 50 L as per their needs – at attractive interest rates (from 1%) on 12-month tenure. Customer’s gold and jewellery are stored in highly-secured vaults, and the company ensures customers find advantage in every available opportunity.
A WHOOPING SUCCESS IN A YEAR SPAN
MCFL’s business model is formed upon years of dedicated research and experience of business leaders. The collaborative intervention carved customized financial choices and investment schemes that earned respect and loyalty of innumerable customers. It also helped MCFL gauge success in providing loans to various SMEs and MSMEs since its inception. Presently, their net-worth is 95 Cr. along with a loan book of 65 Cr. as of Mar 2020 – A 19% growth in YoY. The Company prides itself as the first-of-its-kind to bring a loan scheme against gold and diamond jewellery in India. The prospect has become a great fortune in a short time and now is expanding to Maharashtra, Gujarat and Rajasthan.
MCFL enjoys a robust presence amongst clients for its outstanding quality, customer-driven approach and collaborative growth. The MD’s strong roots in the jewellery business have proved to be spellbinding, as the gold loan schemes rewarded a whopping Rs 10.76 Cr in March 2020 – a 79% increase in its standalone profit over its previous year’s turnover of Rs 6.01 Cr. The segment forecasts a CAGR growth of 13.4% by 2022, which is nearly Rs 4,50,000 crore and MCFL aspires to be a part of this growth. By 2023, MCFL sees itself as a coagulated and dynamic brand in the gold and diamond jewellery loan market. Growing at this pace, MCFL will set the pitch for its ultimate milestone“To touch 500 Crore target by 2025”.
