Update: Jul 26, 2018 12:19 AM STI
Gurugram / New Delhi [India], July 25 (NewsView): Home Credit India Finance Pvt. Ltd., one of India’s fastest growing non-bank financial companies, has received an IND A- / Stable rating from India Ratings and Research Pvt. Ltd., a Fitch group company.
In addition, the rating was increased by CARE Ratings to A- from BBB +. The new rating is based on factors such as an experienced management team, comfortable capitalization and liquidity, adequate risk monitoring and assessment systems, a unique business model, a strong concentration in the Indian market, a profitable point of sale network and the continued support of Home Credit Group.
According to India Ratings, one of the main rating drivers is that India is a high potential market in Asia for Home Credit Group.
“India offers a large population with high mobile penetration and low competition in financing the low-cost unsecured consumer durable goods segment. Based on available credit history, the company operates the cycle life of existing customers credit by offering personal loans to cross-sells, ”the rating agency said.
Noting that Home Credit India’s market share in the mobile finance segment has grown steadily, India Ratings said this gives the consumer online loans provider a competitive edge in key geographies relying on small players in the retail format. for mobile sales. The growing market share along with Home Credit India’s foray into online lending further enhances scalability.
In a separate memo, CARE Ratings said Home Credit India’s capitalization is comfortable and is supported by a continuous injection of promoters’ equity. Compared to the regulatory requirement to have a minimum equity ratio (RCA) of 15%, the company had a RCA of 26.33% as of March 31, 2018. Highlighting adequate capitalization as an important driver, India Ratings has stated, “Its liquidity is adequate due to the short extended tenor advances. ”
According to Anirban Majumder, Chief Financial Officer of Home Credit India, “The rating demonstrates growing confidence in the underlying strength and long-term potential of our business in the retail credit market in India. ” to expand our relationships with banks. and financial institutions which will help to penetrate deeper into the capital market through various financing instruments. This is also an affirmation of HC Group’s proven partnership model with manufacturers and retailers and its ability to offer seamless online lending, providing customers with an omnichannel experience, choice and choice. convenience. ”
In its efforts to take advantage of the latest technologies to increase the scale and size of operations, India Ratings said that Home Credit’s underwriting standards and tools are based on a risk analysis framework, the effectiveness of which is has been demonstrated in prosperous geographies such as China and Russia. The two rating agencies also claimed that the financial support and credit profile of Home Credit BV (“ HCBV ” or “ the Group ”), the Netherlands-based holding company for credit transactions to another key driver is the multi-channel consumption of Home Credit in Central and Eastern Europe, Asia and the United States.
To support business growth, Home Credit India has diversified its funding base in terms of instrument types and maturity, and continues to attract flexible and stable funding sources based on long-term and mutually beneficial relationships with Investors. During the January to March quarter, Home Credit India raised rupees. 600 crore through a mix of securitization transactions, conditional loans and issuance of non-convertible debentures (NCDs). The company plans to use the financing to increase its loan portfolio, invest in technology infrastructure and develop financing products that meet the needs of clients with little or no credit history.
Since its launch in India in 2012, Home Credit India has continued to expand its business. The company had nearly 2 million customers in 2016, driven by a pan-Indian expansion in key markets, a diverse and innovative product line supported by a superior customer experience. In 2017 alone, Home Credit added 3.5 million more customers, further strengthening its leadership position in consumer credit. (NewsSee)