On the way to become the largest retail-finance company: Magma FinCorp

The Silicon Review

Since Magma FinCorp set up shop in 1989, its been driven by one single, purposeful goal- investing in the smallest dream. A loan every minute, a million lives touched every year; it manages assets worth over Rs.192 billion, for us it is just a beginning. Over 80% of its 230+ branches are in semi-urban and rural India; the family of 9000+ Magmaites, and Magma Fincorp’s 27+ years experience in underwriting has enabled us to extend support to the masses that have been excluded by the traditional financial systems.

Why Magma Fincorp
Under-banked Customer Base: Magma has espoused the policy of financial inclusion by focusing on customers who are left out of the banking network. Magma prefers to finance customers who do not have adequate documentation, credit history and hence are perceived as a high-risk category by the banking channels. Magma believes that credit worthiness can be evaluated by employing innovative methods that take into account the subjective knowledge gleaned from customer visits and background checks. This provides an opportunity to the customer to start building a credit history and move towards financial inclusion. The low delinquency levels in the loan book demonstrate the success of the methods that Magma employs for credit appraisal.

Geographical Diversification: Magma has a pan India presence spread across 22 states and union territories, which account for more than 90% of India’s population. Magma has ensured that the loan book exposure in a single state is limited to around 10% thus reducing the impact of local and regional risks eg. drought, floods, political instability. An evenly balanced exposure across the four regions is a culmination of the risk mitigation principles that Magma has followed.

Vertical Organizational Structure: Magma relies on a vertical organizational structure that enables the company to create centres of excellence across functional lines. Departments and teams are split according to the skill requirements and not across locations or product lines. This helps Magma in aligning roles with performance measurement metrics that are in control of the employee. This structure has led to higher levels of accountability, faster decision-making, and better utilization of resources.

Efficient Liability Management: Magma is one of the few NBFCs which has a truly diversified liability profile encompassing bank lines, capital markets and securitization transactions. Magma has been able to make a successful transition from a profile with a high share of securitization to a profile evenly spread across all three funding channels. This allows Magma the flexibility to balance the channel wise exposure to optimize the benefits of liquidity, cost of funds and maturity.

Financial Services Offered
Car Loans: Magma offers you Car Loans with low documentation and less hassle, compared to banks. This ensures a faster turnaround time in servicing the loan request and sanctioning car loan. So if you are looking for hassle free experience while applying for a Car Loan, Magma should be the first choice.

SME Loans: If you are looking for SME Loans to expand and grow the business, then you have come to the right place. Magma offers SME Loans with no primary or collateral security requirements. Loans can range from Rs. 7 lakhs to 2 crores – the largest collateral-free loans in India.

Construction Equipment Loans: Magma offers Construction Equipment Loans ranging from 80%-100% of the asset value depending on customer grading. Loans are given to all profiles of customers including First Time users & First time buyers. So if you have a dream of purchasing the first construction equipment or you have an intention of scaling up the business by purchasing more construction equipment”s, then Magma will be delighted to help fulfill the dreams and aspirations.

Commercial Vehicles Loans: Magma offers Commercial Vehicle Loans ranging from 80%-100% of the asset value depending on customer grading. Loans are offered to all profiles of customers including First Time users & First time buyers. So, whether you are a fleet owner or a person who is looking to buy his first commercial vehicle, you can depend on Magma”s turnaround time and faster processing to ensure you get the vehicle delivered on time.

Home Loans: Magma Housing Finance offers loans for Residential, Commercial & Plot purchases. It also provides loan against property with flexible payment terms. One of the best things about availing a Magma Housing Loan is that its loan values start from a mere Rs. 3 lakhs only. Loan tenures ranging from 12 to 240 months. This means, even if you are looking for a small quantum of funds, “Magma can help you realize your dream of buying your first property.”

Meet the Master

Mayank Poddar, Chairman: Poddar started his entrepreneurial career while in college with a publication business aimed at primary school and college students. He took the reins of his family business in real estate and vehicle financing, and co-founded Magma along with Chamria, in 1989. Today, Poddar offers guidance in strategic direction for business policy, corporate governance, and law. Poddar also manages several real estate projects across the country. He is also a car hobbyist; as a teenager he purchased a Fiat 124 and has continued building his collection since, with his Pontiac and Mustang as favorites in his collection. Poddar is also a connoisseur of the arts, with an extensive collection of paintings by the masters, and a deep interest in Hindi romantic songs and Ghazals.