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Business News/ Companies / News/  Loan distributor Andromeda records disbursal of 63% worth 60,000 Cr in FY23, expects 15% growth in FY24

During the Financial Year 2022–2023, Andromeda Sales and Distribution, India's largest loan distribution network, had an enormous spike in loan disbursals. Due to the outstanding results of all credit categories, the loan distribution grew by about 63% to reach 60,000 crore. It is admirable that Andromeda was able to boost loan distribution despite rising interest rates. The company intends to keep up its pace and targets a growth rate of 12–15% for the fiscal year 2023–2024. 

At the end of March 2023, Andromeda had disbursed 26,328 crore for "home loans," up from 17,505 crore in 2021–2022. Disbursements for "loan against property" was 20,649 crore in FY23, a rise of nearly 78.7% from 11,556 crore in the fiscal year 2021–2022. The disbursements for "business loans" rose by 101.50% in FY 2022–23 to 5,525 Cr from 2,742 Cr in FY 2021–22. Additionally, its "personal loan" disbursals climbed to 6,551 Cr in FY 22-23 from 4,119 Cr the year prior, a 59.04% jump. In the fiscal year that ended in March 2023, the corporation expanded its branch network from around 300 to 350 branches. 

Prosales, a corporate agency for Life, Health, and General Insurance, is a subsidiary firm of Andromeda. The number of premiums collected by its "Insurance" company more than quadrupled, from 32 Cr in FY 21–22 to more than 75 Cr in FY 2022–23. From 15,333 crore in FY 2018–19 to 36,842 crore in FY 2021–22 to 60,000 crore in the year ending March 2023, Andromeda's loan disbursals have gone up significantly. This rise has been seen across all categories.

Mr. Raoul Kapoor, Co-CEO of Andromeda Sales and Distribution Pvt Ltd said “The company relies heavily on technology to manage a strong agent base of more than 25,000, which is also set to grow. He also expressed confidence in the current fiscal year, as inflation is likely to ease, leading to a decrease in interest rates. Andromeda has been witnessing a large number of queries from prospective home buyers, which is a positive sign for the company's future growth."

“Despite the Reserve Bank of India raising the key interest rate since May 2022, the demand for housing loans has not been significantly impacted and the homebuyers understand that the rates would come down eventually," Kapoor further added.

Mr. Kapoor said he is optimistic about the future and believes that India is on track to become the third-largest economy in the next few years. The economy has been doing well and the situation has improved significantly after a challenging period following the outbreak of the Covid pandemic.

Andromeda began as a sales associate for Citibank in 1991 and has since grown to become India's largest loan distribution company. The majority of the products offered by Andromeda are home loans, loans against property, personal loans and business loans. The company has a presence in more than 1000 towns and cities and a strong distributor network of over 25,000 partners with a rich legacy that spans over 30 years. 

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Updated: 15 Apr 2023, 10:14 PM IST
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