Exclusive interview with Nayan Kambli: Founder and CEO of Money2Me
“The Co-lending policy by RBI has certainly been a boon for the NBFC sector, this policy targets some of the bigger issues both the sectors have been facing for a while like capital deployment and reaching an untapped market. This policy is surely going to help the MSME and SME sector a lot and in turn, impact the GDP positively without a doubt.”
Today in our interview with Mr Nayan Kambli from Money2Me, an established NBFC, we will be finding out the implications of new policies by the RBI on the NBFC sector. We got a chance to understand the impact of policies such as the co-lending policy and microfinance regulatory framework on the NBFC sector.
Interviewer: What led to the creation of Money2Me?
Mr Kambli: After spending 21 years in the financial sector, I wanted to put this experience to
use and create something that would help society at large as well as fulfil my passion. That is where the idea of Money2Me came into being. Since its origin, Money2Me has worked on its vision of inclusive financial liberation especially by serving the underserved and un-served stratum of society.
Interviewer: Is Money2Me planning on diversification?
Mr Kambli: Yes indeed, Money2Me is planning its diversification all thanks to the latest policy by RBI. Under the earlier guidelines, an NBFC that does not qualify as an NBFC-MFI, cannot extend microfinance loans exceeding 10 per cent of its total assets. The maximum limit on microfinance loans for such NBFCs (i.e., NBFCs other than NBFC-MFIs) now stands revised to 25 per cent of the total assets. This will in turn help us provide financial aid to the underprivileged section of society. Along with this, we are even planning on expanding our Business loans to SME and MSME sectors and diversifying our clientele.
Interviewer: Will digital gold loans change the current gold loan market scenario?
Mr Kambli: The lockdown impacted people in many different ways. Due to this, gold loans were one of the most applied loans and have even recorded rapid growth in the sector like never before. The introduction of online platforms and digital models in the gold loan sector has opened the gold market’s untapped areas. The Digital model will be able to handle thousands of customers at a time through its platforms. Digitization has played a vital role in the growth of loans like gold loans due to less paperwork and a fast verification process. It is easier to process without several visits to the branch of the lenders. People have started relying on digital now more than ever. In the gold loan market now due to the digital convenience factor there will surely be at least an increment of 15-20% in loans disbursed in just FY23.
Interviewer: Do you think we will see an increase in people shifting to digital gold loans rather than traditional ones?
Mr Kambli: Currently the clientele for digital gold loans and traditional gold loans are different. Usually, if the ticket size is below 1 lakh then people are more comfortable with a traditional gold loan option. However, if the ticket size is above 4-5Lakhs then people prefer a more digital approach.
Interviewer: Do current fluctuations in gold price influence the gold loan portfolios?
Mr Kambli: In the past, gold had a much more sentimental value than it does today. However, in recent years, gold has turned into more of an asset because of which the fluctuations in gold price severely affect the gold loan portfolios.
Interviewer: What’s your take on the co-lending policy by RBI?
Mr Kambli: The Co-lending policy by RBI has without a doubt helped NBFCs as now NBFCs can partner up with other NBFCs and/ or Banks and provide funding by going to the grass-root level operationally. The Co-lending policy by RBI has certainly been a boon for the NBFC sector, this policy targets some of the bigger issues both the sectors have been facing for a while like capital deployment and reaching an untapped market. This policy is surely going to help the MSME and SME sector a lot and in turn, impact the GDP positively without a doubt.
Interviewer: Do you plan to expand the branch network?
Mr Kambli: Money2Me as an organisation believes in putting the needs of the customer first which is why we believe in a phygital model. That is the reason we plan on creating a balance between digital and traditional in order to cater to each segment of our customers.