Indel Money: Fast And Secure Gold Loans With Expanding Financial Solutions

Introduction To Indel Money

Indel Money Limited is a Non-Banking Financial Company (NBFC) regulated by the Reserve Bank of India (RBI), primarily focused on gold loans and secured lending solutions. Established in 1986 as Payal Holdings Pvt Ltd, the company underwent a transformation when it was acquired by its current promoters in July 2012 and rebranded as Indel Money Limited in January 2013. Headquartered in Mumbai, with a corporate office in Kochi, Indel Money has built a strong presence across 14 states, including Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, Telangana, Maharashtra, Odisha, Madhya Pradesh, and Delhi NCR. The company operates through a vast network of 325+ branches, serving over 1,05,000 active borrowers with a focus on financial inclusion and customer-centric lending solutions.

Indel Money specialises in gold loans, which account for 92% of its portfolio, while the remaining 8% consists of loans to MSMEs, loans against property (LAP), and personal loans. The company has achieved remarkable financial growth, with its total Assets Under Management (AUM) reaching INR 1,825.7 crore as of June 2024. Over the past four years, Indel Money has demonstrated 3.6x growth in AUM and 3.3x growth in net worth, reflecting its strong financial health and expansion strategy. Additionally, the company has maintained a low Gross Non-Performing Asset (GNPA) ratio of just 0.8% and a Capital Adequacy Ratio of 26.6%, showcasing its robust risk management practices. With a track record of consistent profitability, doubling PAT margins from 10.2% to 19.0% by H1 FY25, Indel Money continues to establish itself as a leading player in the gold loan segment and broader financial services industry.

Board Of Directors Of Indel Money

As of the latest information available, the Board of Directors of Indel Money Limited comprises the following members:

• Mr. Mohanan Gopalakrishnan: Chairman & Managing Director
• Mr. N S Venkatesh: Independent Director
• Mr. T R Anantharaman: Director and Chairman of Finance and Asset-Liability Committee (ALCO)
• Mr. Salil Venu: Director
• Mr. C R Sasikumar: Independent Director
• Mr. S Ganesh: Independent Director

These individuals bring a wealth of experience and expertise to the leadership of Indel Money Limited.

Source: Indel Money¹

Products Offered By Indel Money

Indel Money Limited offers a variety of financial products tailored to meet the diverse needs of its customers. Below is a detailed overview of each product:

1. Gold Loan

Indel Money provides instant and hassle-free gold loans, allowing customers to unlock the value of their gold assets. With minimal documentation and swift processing, customers can receive funds promptly. The company also offers digital gold loan options, enabling borrowers to access loans online without visiting a branch. Flexible repayment schemes are available to accommodate both salaried and self-employed individuals, ensuring a convenient borrowing experience.

2. MSME Loan

Targeting Micro, Small, and Medium Enterprises (MSMEs), Indel Money offers loans designed to address the working capital needs of small businesses. Recognising challenges such as inadequate working capital and limited access to financial support, the company provides 'Go to Market Initiative' services. These services connect businesses with suppliers, retailers, buyers, and sellers, facilitating better market linkage and business growth.

3. Consumer Durable Loan

Indel Money's Consumer Durable Loans enable customers to purchase electronic items, home appliances, and other consumer durables without financial strain. These loans feature no-cost equated monthly instalments (EMIs), flexible repayment options, no processing fees, and no down payments. Customers can walk into any Indel Money branch to avail of these loans and enjoy a seamless purchasing experience.

4. Loan Against Property (LAP)

For individuals seeking substantial funds, Indel Money offers loans against property. This product allows customers to leverage the value of their residential or commercial properties to secure loans for various personal or business needs. The loan amount is determined based on the property's value, and flexible repayment options are available to suit the borrower's financial situation.

5. Foreign Exchange Services

Indel Money provides foreign exchange services, catering to individuals and businesses engaged in international transactions. These services include currency exchange, remittances, and other forex-related offerings, ensuring customers have access to reliable and efficient foreign exchange solutions.

Also Read: Oxyzo Financial Services: Transforming SME Financing With Smart, Tech-Driven Solutions

Innovation And Technology At Indel Money

Indel Money Limited places a strong emphasis on integrating technology and innovation to enhance its financial services and operational efficiency. The company has adopted technology-oriented processes and monitoring mechanisms across all business lines, enabling it to serve customers promptly and become their preferred financier.

Leading this technological advancement is Mr. K N C Nair, the Chief Information Officer (CIO) of Indel Money. With over four decades of experience in IT infusion and technology-driven innovations in the banking and financial services industry, Mr. Nair has been instrumental in driving digital transformation within the company. Prior to joining Indel Money, he led digital initiatives at the Muthoot Group and served as the Head of IT at Federal Bank, where he played a pivotal role in transforming the traditional bank into a leader in technology adoption.

Through these concerted efforts in innovation and technology, Indel Money aims to provide efficient, transparent, and customer-centric financial solutions, solidifying its position as a forward-thinking player in the financial services sector.

Key Strengths Of Indel Money

1. Strong Growth In AUM And Profitability

Indel Money has seen tremendous growth, with its Assets Under Management (AUM) increasing from INR 513 crore in FY21 to INR 1,825.7 crore by September 2024. This growth was fueled by expanding operations from 6 states to 14 states and increasing the number of active borrowers from 39,441 to 1,05,000. Additionally, the company’s Profit After Tax (PAT) margin has doubled from 10.2% in FY21 to 19.0% in H1 FY25. This improvement is due to better cost management, including reduced impairments and write-offs, making Indel a highly profitable and efficiently managed NBFC.

2. Strong Asset Quality In Gold Loan Segment

Indel Money’s Gold Loan portfolio remains stable, with Non-Performing Assets (NPAs) dropping from 3.7% in March 2024 to just 0.8% by September 2024. This reflects strong risk management and prudent lending practices. The company's Gold Loan AUM has also tripled, growing from INR 569 crore in March 2022 to INR 1,680 crore by September 2024. This focus on gold-backed lending has helped the company maintain high asset quality and navigate market challenges effectively.

3. Strong Capital Base And Financial Stability

Indel Money has strengthened its financial position, with net worth increasing to INR 287.5 crore by September 2024, up from INR 163 crore in March 2023. The debt-to-equity ratio improved to 3.4x from 4.3x, indicating a healthier financial structure. This was supported by strong cash flows and capital infusions of INR 10 crore in FY24 and INR 90 crore in FY25, ensuring that Indel has sufficient funds to continue its growth.

4. Wide Network Of Lending Partners

Indel Money has built strong relationships with over 20 lenders, including major banks and NBFCs like SBI, Northern Arc, Bajaj Finance, and Indian Overseas Bank. Through co-lending partnerships, the company has been able to expand its lending capabilities while benefiting from diversified sources of funding.

5. Strong Liquidity Position

Indel Money has no asset-liability mismatches, ensuring that it can meet all financial obligations without disruption. The company expects inflows of INR 791.5 crore, which far exceed its expected outflows of INR 317.4 crore over the next 6 to 12 months. This solid liquidity position allows Indel to continue lending while maintaining financial stability.

With strong financial growth, a stable loan portfolio, diversified funding sources, and high liquidity, Indel Money continues to be a trusted and growing NBFC in India’s gold loan and lending sector.

Source: CRISIL Rating²

Financial Snapshot of Indel Money

Indel Money also offers corporate bonds to arrange the capital. These opportunities from the company are secured and are rated by credit rating agencies. On Grip Invest, investors invested in CRISIL ‘BBB+’ rated Corporate Bonds of the company that offered fixed returns of up to 13.5%. To invest in similar, rated, regulated and secured fixed-income opportunities, sign up for Grip Invest today and start earning fixed returns:

References:

1. Indel Money, Accessed from: https://indelmoney.com/board-of-directors/
2. CRISIL Ratings, Accessed from: https://tinyurl.com/IndelCRISILRating

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