Mahindra & Mahindra Financial Services (MMFSL) intends to build a small-ticket loan book of Rs 20,000-25,000 crore over the next three years, the Financial Express reported.
Mahindra Group's financial services arm issued 60,000 small-ticket loans worth around Rs 500 crore over the past year, the report said.
The non-banking finance company (NBFC) provides loans with a ticket size of Rs 40,000-50,000 to existing customers who have paid their instalments regularly for 12 months.
"The loans are as good as secured and help in both cost rationalisation and profit-making," Ramesh Iyer, Managing Director of MMFSL told the paper.
"The same customer would have to be approached for existing loan recovery, and you would also make collections on the small ticket loan. Whatever this personal loan will make, will help bring down my overheads," Iyer added.
The company intends to provide one loan to a non-Mahindra Finance customer in each of the four lakh villages where it has a presence, he said.
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