MAGMA FINCORP LIMITED

About Us
Magma Fincorp Limited (formerly Magma Leasing Limited) was incorporated in 1988 and commenced operations in 1989. To strengthen its business, the company merged with Arm Group Enterprises in 1992. Magma has emerged one of India's largest financial services companies during the past five years. In early 2007, to strengthen its services even more, Shrachi Infrastructure Finance Ltd. (SIFL), a non-banking retail financing company, merged with Magma to create a new financial services powerhouse: Magma Shrachi Finance Ltd. On August 2008, we renamed ourselves as Magma Fincorp. We are headquartered in Kolkata (India), and registered with the Reserve Bank of India. We are represented by a qualified team of over 5150 Magmaites. In response to rapidly evolving demand, we offer individual and corporate customers a range of financial products and services in: Commercial Vehicle Finance Construction Equipment Finance Car and Utility Vehicle Finance Suvidha Loans (Refinance) Strategic Construction Equipment Finance Tractor Finance SME Loans Insurance We not only provide a one-stop-shop financing facility to our customers, but also fulfil the dreams of millions of first-time entrepreneurs, catalysing local economies and helping the nation grow. We are best recognized for providing an equality of opportunity to the economically disenfranchised. We have achieved a CAGR (compounded annual growth rate) of more than 26% over the last five years.

Our rapid growth does not derive solely from our conscious initiative in growing our physical infrastructure; it is also owing to careful investments in lasting relationships with team members, alliance partners, customers and vendors. By proceeding on these lines, we aim to sustain this growth, thus becoming even more responsive to the rising needs of a dynamic nation.

Our network - Geographical presence

Magma started in Eastern India. From modest beginnings, over the years, we have been able to establish our presence into the interiors of the country, thereby gaining first-mover advantage, essential for our growth across the length and breadth of India. We have sustained our momentum by focusing on the underreached semi-urban and rural markets. We are proud to be in markets where the overall financial services industry penetration is low. Today, we serve 21 states through 172 offices. Each branch caters to an area of 125 km radius - translating into a wider reach and better penetration.

Our Services

Magma makes it possible to finance all kinds of dreams. Those who dream of owning passenger cars, utility vehicles and commercial vehicles, utilising the companys single-stop financing service in the automobile sector. Those who dream of owning construction equipment (retail and institutional) and participating in the countrys infrastructure growth. Those who dream of owning used commercial vehicles that are affordable and just right for small businesses (using the Companys Suvidha loans scheme). What makes Magma a preferred financing company is our mix of competitive rates, immediate service, customer proximity and a wide asset portfolio. We strengthened our rural presence through the extension to the tractor financing segment. Over the years, we have introduced insurance products, strengthening our onestop service proposition. We just dont offer customers a product basket to select from; we comprehend customer needs and advise them in the right product selection.

- Commercial vehicle finance

Magma is a prominent player in commercial vehicle finance in each of the states in which it operates

Our primary focus is on financing first-time buyers and first-time users owning 0-5 vehicles

Our large geographical coverage is marked by a hub-and-spoke approach through an array of regional, branch and pocket offices

We enjoy an unbroken record of 'customer satisfaction throughout the loan period': We are proud to have created a sense of entrepreneurship among our hirers

We pre-fund our commercial vehicle dealers to accelerate the delivery of vehicles to our customers

We participate directly in the promotional activities of our dealers and manufacturers, resulting in a greater acceptance by them

We have forged alliances with automobile giants like Tata Motors, Mahindra & Mahindra, Ashok Leyland, Volvo, Eicher Motors and others, enhancing our access to the large nationally dispersed customer base

Passenger car finance

In this segment, Magma's primary focus lies in servicing the growing, yet under-penetrated, semi-urban and rural markets through a chain of regional offices, branch offices and pocket offices

We provide loans to customers with or without proof of income, through our 'Income Proof' and 'Non-Income Proof' schemes, extending our service to a wide range of customers

Exchange schemes, where we buy old cars at attractive prices and finance new cars at customer-friendly terms, lead to high levels of customer satisfaction

Marketing executives directly meet each customer before closing a deal, bringing in a greater transparency into the transaction

The 'lead-only' channel networking results in the early identification and fulfilment of customer needs, helping us emerge as a market leader in the semi-urban and rural segment

Vertical segregation of sales, credit and collection functions has helped us achieve a rapid turnaround time in customer service

Low down payment, competitive rates and doorstep service have made us a force to reckon with

Attractive schemes for commercial use of cars and multi-utility vehicles have helped many unemployed youth evolve into entrepreneurs

Promotional activity among dealers and manufacturers as well as a prefunding provision for dealers are among our strengths

Construction equipment finance

We finance construction equipment in the retail segment

Our financing to first-time buyers and small customers has helped a number of plant hirers become entrepreneurs in their own right

In our category, we have the shortest turnaround time in financing assets to customers

Magma has entered into tie-ups with Telcon and JCB and works closely with L&T, Ace, Caterpillar, Volvo and others others to attain market leadership in the areas where we are present

Marketing executives trained on products and projects assist hirers take the right decision

Tailor-made and innovative schemes help customers buy equipment without putting pressure on their cash flows

LC facilities for import and export of various kinds of equipment help customers take up large projects in India and abroad

Suvidha (Refinance)

Owning a used vehicle can be a simple, easy and reliable experience with Magma Suvidha loans

Loans are available on all makes of used commercial vehicles, with most attractive interest rates and tailor made schemes

Simple documentation and quick turnaround time ensure convenience of prospective customers

Magma nurtures long-term relationships with its customers, even advising them on the choice of appropriate vehicles that suit their business and personal requirements

Tractor Finance

Magma extended its activities to the financing of tractors in 2007-08

We provide secured tractor finance for agricultural and commercial use (hiring tractors for commercial transportation of goods in agricultural areas)

The new service provides funding to the farming community all over the country for purchase of M&M, TAFE, John Deere, New Holland, ITL etc. brand of tractors and other equipment which they need for agriculture and allied purpose

This opportunity leverages the established distribution and dealer network of the major manufacturers and facilitate the cross-sale of other financial products such as insurance and loans for all types of farm equipment

The product is in line with Magma's focus on rural markets

SME Loans

Magma helps in fulfilling Small and Medium Enterprise (SME) customers' business needs through unsecured loans upto 50 lacs.

We are geographically well covered in 21 locations

We focus and service the customer needs for working capital, business expansion and business maintenance

Our customer selection approach is decentralized and totally personalized. We ensure each customer is personally met by Magma Managers

Insurance

Magma introduced insurance products, strengthening its one-stop service proposition

We have a third party distribution system in the insurance segment and provide the service to existing customers of asset finance business

Non-captive business in insurance distribution is provided through the distribution of policies to customers not financed by Magma

A dedicated sales team has been created to drive this business

There is a low claim ratio on insurance business originated by Magma, due to the companys robust credit screening processes

We have introduced a new life insurance policy Credit Shield for existing customers, covering the loan value in the unfortunate event of the customers death or permanent disability

We just dont offer customers a product basket to select from; we comprehend customer needs and advise them in the right insurance product selection