Home Credit Finance India looks to grow white goods financing

The company, which has its roots in Prague, is aiming a credit portfolio of Rs 4000 crore by December 2017, as against Rs 1570 crore at the end of December 2016.

Non-bank lender Home Credit India Finance, predominantly a mobile handset financier, is now looking to finance more TV sets and washing machines to grow its footprints in India.

The lender said it is in discussion with a dozen of white goods makers for expanding its financing options and formalisation of these talks is likely to happen after Diwali.

“We have started signing up home appliance producers as we aim to grow this segment,” chief executive Pavel Maco told ET.

Pavel said it has forged partnerships with Sony and Intex Technologies so far to boost electronic goods financing before Diwali.

The company, which has its roots in Prague, is aiming a credit portfolio of Rs 4000 crore by December 2017, as against Rs 1570 crore at the end of December 2016. Its portfolio stood at Rs 2900 crore at the end of August, Maco said.

Home Credit has over 40 lakh customers in the five years of its existence in India, with about 92% of them received it for purchasing mobile handsets. Financing of consumer durables accounts for just about 5% of its portfolio.

It is also running a pilot for online distribution. “This will help cater to a different segment of customers. Verifying their credentials is the most difficult part of acquiring these customers which we have never seen,” Maco said.

Home Credit is present in 77 cities across 15 Indian states and has built a network of 18,000 points-of- sale through which it services customers. The Czech company is present across 10 countries in Europe and Asia.

Maco said that promoters are ready to pump in capital in regular intervals to support growth.

“We have prudent underwriting policies as well as effective customer authentication mechanisms that help minimise risks,” he said.

[“Source-economictimes”]