Andromeda expects 20% growth in loan disbursals; it aims for Rs 1 lakh crore in FY25

Loan distributor Andromeda expects around 20 per cent growth in loan disbursals to around Rs 1 lakh crore during the current fiscal, driven primarily by mortgage demand.

Loan disbursals have seen a 23 per cent growth to Rs 75,397 crore in FY'24, from Rs 60,000 crore in the previous fiscal, Andromeda Sales and Distribution Pvt. Ltd. Co-CEO Raoul Kapoor said.

Despite the increase in housing prices, the demand for housing loans remains robust, he said, adding that the average ticket size of housing loans has witnessed an increase.

In addition, he said, digitalisation, faster approvals, and increased availability and flexibility have fueled higher demand for personal loans. The home loan business surged to approximately Rs 33,918 crore in FY24, up by over 22 per cent from Rs 27,798 crore in FY23.

In FY24, he said, the loan against property distribution was at Rs 24,776 crore, an increase of 10.33 per cent from the preceding year's Rs 22,456 crore. Meanwhile, business loans experienced a notable surge of approximately 32 per cent, rising from Rs 5,255 crore in FY23 to Rs 6,927 crore in FY24, he said.

Moreover, he said, there was a substantial increase observed in the personal loan and other loan segments as well. The company relies heavily on technology and recently launched an app called One Andro, he said.

Besides, he said, there is a plan to further expand reach in Tier 2 and Tier 3 cities of the country. During the fiscal year ending March 2024, the company expanded its branch network to 470 branches from about 350 in the preceding year.

Besides, Kapoor said, the company is planning to launch a wealth app through which mutual fund products will be distributed. Talks are on with various mutual fund houses for the onboarding of their schemes, he said, adding that the app is expected to be launched next month.