### **Overview** Mangal Credit & Fincorp Limited (MCFL) is a listed non-banking financial company (NBFC) headquartered in Mumbai, Maharashtra, established in 2012. The company specializes in secured lending and offers a diversified portfolio of financial products, catering primarily to underserved MSMEs, small enterprises, and retail borrowers. MCFL is focused on driving financial inclusion through accessible, flexible, and customer-centric credit solutions. MCFL achieved a key milestone in 2024 with its listing on the National Stock Exchange (NSE), enhancing corporate visibility, governance standards, and access to capital markets. --- ### **Core Business & Product Portfolio** MCFL offers a comprehensive suite of secured and structured financial products: - **Gold Loans** (including **Loans Against Diamond Jewellery**, a rare differentiator in India) - **SME/MSME Loans** - **Loan Against Property (LAP)** – commercial and residential - **Personal Loans** - **Business Loans** The company is shifting toward **asset-backed lending**, aligned with RBI's regulatory guidance on unsecured debt management, with a strong emphasis on secured products such as Gold Loans and LAP. --- ### **Key Market Focus & Strategy** #### 1. **Retail-Centric, Risk-Optimized Lending** - Focus on **small-ticket loans** to enhance portfolio diversification and reduce concentration risk. - Average loan ticket size: **₹20 lakh to ₹50 lakh**, with personal loans up to ₹10 lakh. - Strategic reduction in average loan size and tenure to improve risk profile and customer reach, particularly among first-time borrowers. #### 2. **Geographic Expansion** - Expanded from 10 branches in 2022 to **25 branches across four states** (Maharashtra, Gujarat, Rajasthan, and West Bengal) as of Sep 2025 — a **~20% YoY growth**. - Prioritizing **Tier 2 and Tier 3 cities**, focusing on **underbanked and rural regions** where formal credit penetration is low. - Entry into Rajasthan and West Bengal highlights strategic expansion beyond Western India. #### 3. **Target Segments** - **MSMEs**: A key growth engine; MCFL serves businesses with limited access to formal credit. - **Retail Borrowers**: Individuals with immediate liquidity needs, particularly through gold-backed financing. --- ### **Financial Performance (FY 2024–2025)** - **Assets Under Management (AUM)**: ₹3,000 crore (~₹3,000,00,00,000) - **Asset Base**: Over **₹2,945.6 crore** - **Gearing Ratio**: **1.07x** (stable capital structure) - **Net Worth**: ₹127.35 crore - **Capital Adequacy Ratio (CAR)**: 47.23% (Sep 2024), reflecting strong regulatory compliance and financial resilience. **Portfolio Growth YOY (FY 2024–25):** | Product | AUM Growth | Disbursement Growth | Active Accounts Growth | |--------------------------|------------|----------------------|------------------------| | **Overall AUM** | +29% | - | +33% | | **MSME Loans** | +19% | +51% | +39% (to 361 accounts) | | **Gold Loans** | +53% | +105% (₹25,564L) | +35% (to 7,158 accounts) | | **Loan Against Property (LAP)** | +15% (₹5,405L) | Decline (-30%) | +4% (to ~85 accounts) | | **Personal Loans** | +147% | +185% | +62% (to ~185 accounts) | - **Gold Loan Portfolio**: Grew at **61% CAGR over 5 years**, reaching **₹1,225.8 crore (₹12,258 lakh)** in AUM as of Mar 2025. - **Net Interest Income and ROA**: Strong profitability indicators observed in prior reports (ROA of 5.60% in 2022), with continued improvement expected. --- ### **Digital Transformation & Technology** MCFL is transitioning into a **technology-driven NBFC** with investments in digital infrastructure: - **In-house Mobile App ("The Mangal App")** launched on Google Play Store: - Enables digital loan applications (SME, Gold, LAP). - Features **officer verification** to prevent fraud and enhance trust in door-to-door gold loan services. - **Customized Loan Operating Systems**: - Integrated **LOS-LMS AUMNEE** and **Fincraft systems** with CRM (LeadSquared) for unified data management, faster underwriting, and improved decision-making. - **Digital Onboarding**: Use of Video KYC, e-documents, API integration, and tools like Signzy, Probe 42, and Finfort to streamline operations. - **Partnerships**: Collaborated with **Nelito (Japan’s DTS)** and **Saisson** for tech platform development. - **AI & Data Analytics**: Piloting AI-driven underwriting and fintech integration to improve risk modeling and customer targeting. --- ### **Funding & Capital Structure** - **Diversified Funding Base**: - Institutional lenders include **Tata Capital, Cholamandalam, Hinduja Leyland, Poonawalla Fincorp**, and **Kissandhan Agri Finance**. - Banking partners: **SBI, ICICI Bank, Indian Overseas Bank, Chola Investment & Finance**. - Raised capital via **Non-Convertible Debentures (NCDs)** as an alternative to bank borrowings. - Promoter commitment: **₹7 crore infused in FY23–24**, with planned **₹20 crore additional infusion** to fund expansion. - **Cash Reserves**: ₹15.5 crore (7% of AUM), supporting liquidity and growth. --- ### **Risk Management & Asset Quality** - **Strong Asset Quality**: - **Gross NPA**: **1.02%** - **Net NPA**: **0.52%** (Sep 2025) - Historical GNPA of 1.31% (2024), indicating consistent credit discipline. - **Risk Mitigation Strategies**: - Shift to **smaller ticket, secured loans**. - Rigorous underwriting, digital due diligence, and real-time monitoring. - Focus on **collateral-backed lending** to cushion against economic volatility. --- ### **Leadership & Governance** - **CEO**: **Mr. Manish Rathi**, CA and CFA Level III candidate, with **18+ years** of credit and risk management experience across India and Southeast Asia. - Managed portfolios exceeding **$3 billion**; strong background in fundraising and investor relations. - Experienced board and promoter group with deep roots in financial services and gold lending. --- ### **ESG & Social Impact** - Focus on **responsible lending** and **financial inclusion** for underserved populations. - Empowers MSMEs and low-income borrowers with structured credit, promoting **entrepreneurship and economic mobility**. - Digital access reduces barriers for rural and first-time borrowers. ---