Moneyboxx to open 11 branches in 4 states

New Delhi, Oct 20 (PTI) Moneyboxx Finance Limited (MBFL), which provides small-ticket loans to micro and small enterprises in tier-2 and tier-3 towns, on Tuesday announced it will open 11 new branches across four states during the quarter.

New Delhi, Oct 20 (PTI) Moneyboxx Finance Limited (MBFL), which provides small-ticket loans to micro and small enterprises in tier-2 and tier-3 towns, on Tuesday announced it will open 11 new branches across four states during the quarter. The NBFC has also set a target to disburse around Rs 85 crore in the current fiscal, a 2.5-fold jump from 2019-20 level.

Moneyboxx, which started operations in February 2019, currently has 11 branches spread across four states - Punjab, Haryana, Rajasthan, and Madhya Pradesh. "During the October-December quarter, it will open 11 new branches in these four states taking its total number of branches to 22.The new branches will come up at Mansa, Sangrur and Abhor (Punjab); Mahwa, Kekri and Sikar (Rajasthan); Kaithal, Jind & Bhiwani (Haryana); Agar and Sehore (Madhya Pradesh)," it said in a release. The NBFC is also in the process of hiring another 100 employees, who will be primarily posted in the upcoming branches. It currently has around 110 employees.

The company aims to double its loan book size, branch network and employee base in FY21, said Moneyboxx Co-CEO Mayur Modi. The medium-term aim is to build a Rs 1,000-crore asset under management (AUM) within the next 3 years, he said while expressing confidence that its strong focus on underwriting and collection will help in achieving our short and medium-term goals, he added. MBFL loans range from Rs 50,000-3,00,000 and the average is around Rs 1.25 lakh, mostly for 24 month tenure.

The NBFC said its collection efficiency in July and August stood at 98 per cent while in September it crossed 99 percent. The NBFC did not seek any moratorium from its lenders during the moratorium period. Shares of Moneyboxx Finance closed at Rs 48 apiece on BSE, down 0.10 per cent over previous close.