Magma Fincorp’s nationwide customer survey reveals improvement in commercial activities and asset deployment

Deepak Patkar, CEO - ABF Biz, Magma Fincorp said, “Magma is committed to ‘Investing in the smallest dream’. We believe the act of a first generation entrepreneur seeking finance for buying a productive asset represents the very soul of financial inclusion – it is thousands of such customers that are helping build a modern India from the grassroots.”

The Commercial Vehicles/Construction Equipment segment saw a ten-fold increase in vehicle deployment between April and July, the survey showed. Out of the 60% asset deployment, load utilization was 50%.

The Personal Car segment comprised customers whose cash flows are largely dependent on their businesses.

In this segment there has been an improvement in the cash flow situation. Customers who have largely been in addressing downstream customers from essential goods, agri-based and FMCG sectors are showing positive trends vis à- vis customers in sectors such as garments, gems and jewellery etc.

Commercial Cars or the Taxi segment -includes app cab and tour operators - have seen low deployment.

The Tractors segment used for agri activities had good results due to the bumper Rabi crop harvest and timely government Interventions enabled farmers to improve crop sale and cash flows during challenging times.

Seventy per cent of the customers were able to make their payments on time.

For Commercial usage, improvement is to be seen as Cash flow crunch persists due to deployment issues.