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Orange Retail Finance, a rural-focussed non-banking finance company, aims to disburse loans of about ₹1,000 crore over the next two years amid signs of economic recovery and pent-up demand for credit in the rural economy.
“Over the last eight years, we have disbursed loans worth ₹900 crore. Our current AUM is at ₹400 crore. In the next two years, we are planning to disburse about ₹1,000 crore in two-wheeler loans and loan against property (LAP),” said Ebenezer Daniel G, Founder, MD & CEO, Orange Retail Finance India Private Limited.
Affordable financial solutions
Started in 2013, the Chennai-based NBFC is focused on providing affordable mobility and livelihood finance solutions to semi-urban and rural India. Currently, the company has over 100 branches across the five southern States covering over 10,000 villages with a base of 1.45 lakh customers.
“Two-wheeler loans are our core product. Every year, rural two-wheeler growth is around 10-15 per cent while urban market growth is almost saturated,” Daniel said, adding, “There is growth in the rural segment because two-wheeler is a livelihood asset, and we can survive by creating an impact in this market.”
Currently, 80 percent of Orange Retail Finance’s loan portfolio comprises two-wheeler loans followed by swift cash loans (10 per cent) and LAP (5-10 per cent). In the next two years, the company plans to increase the share of LAP and swift cash loans to 25 per cent and 20 percent of the loan book, respectively.
Mobile app
The company recently launched ‘Orange Finmobi’, a mobile app where a customer can manage the end-to-end process of two-wheeler purchase including loan application, vehicle selection, RTO registration, EMI mandate and home delivery of vehicle.
“During the first Covid wave when the lockdown was in place for six months, over 22,000 of our cash mode customers migrated to digital payments using QR codes,” Daniel said. “Digitalisation is one of the key reasons for our survival. Now, we want to scale up in a big way using the digital infrastructure.”
The company also sees a big growth opportunity in electric two-wheeler financing.
“We have signed up with Hero Electric as a preferred financier and in the final stage of signing an MoU with Ola as a preferred financier for south India. We are also having discussions with TVS, Bajaj and Ather for a tie up,” Daniel said.
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