Muthoot Finance launches new loan scheme for SMEs
Bangalore, November 29, 2017: Muthoot Finance, the leading gold financing company, has launched a new loan scheme targeted to small and medium enterprises for their working capital requirements. Under the scheme, Muthoot Finance will disburse gold loans above Rs 10 Lakh at an interest rate of 12% per annum which is very attractive as compared to prevailing interest rate offered by banks (approximately 14-15%).
Mr. GeorgeMuthoot Alexander, Executive Director, Muthoot Finance said, “We are delightedto announce the new gold loan scheme. This is a unique offer, which willbenefit all sections of clientele. The company expects to grow its customerbase in this high ticket loan category from currently 4% to 10% by Q1FY2019(June 2018). This loan will be now available through all 4200 branches,including the 487 branches in Karnataka.”
The MuthootGroup has 18 diversified divisions and 4500 plus branches with globalpresence. Over 2,53,000 customers visit The Muthoot Group branches everyday. The story of The Muthoot Group is built on the foundations of passion,commitment, honesty, traditions and values.
MuthootFinance Ltd, the flagship company of The Muthoot Group was foundedin 1939, by Shri M. George Muthoot. The company today is India’s largest andthe world’s biggest gold loan company. With a holding of 146 tonnes of gold,Muthoot Finance is also one of the companies to hold the largest gold reservesin the country.Muthoot Finance has 487 branches in Karnataka which are administered through 9regional offices. Bangalore has the highest number of 250 branches. As oftoday, the group has generatedemployment to 2,614 people in the state. AUM (Assets under Management) inKarnataka is Rs. 3,365 crore in H1FY18. The company till date has served thetotal customer base of 11,80,374. Muthoot branches witnesses average walk – insof 18,963 customers daily. Every day our branches disbursed 6,262 goldloans. The average value of gold loan is Rs. 35,000 and the companydisburses Rs. 21.91 crore everyday in the state.
Throughtransparent, fully automated system and procedure, Muthoot Finance has becomethe preferred choice of a variety of customers be it farmers, entrepreneurs,traders, businessmen or housewives. Muthoot Gold Loans has revolutionized theconcept of retail gold loan in the country. People from all walks of life haverealized that gold can be released from its idle state in the house lockers tocreate more opportunities and fuel economic growth.
The companyis continuously focusing on diversifying the overall investment products.During FY17, Muthoot Finance acquired 64.60% in equity share capital of BelstarInvestment and Finance Private Limited (BIFPL), an RBI registered micro financeNBFC. Its loan portfolio grew by 114% at Rs. 567crore in FY17 with profit aftertax of Rs.10 crore as against PAT of Rs.6 crore.
The companyalso acquired 100% stake in Muthoot Insurance Brokers Pvt Limited, an IRDAregistered Direct Broker in insurance products. It generated a first yearpremium collection amounting to Rs. 70 crore during FY17 as against Rs. 48crore during previous year.
During FY17,company increased its shareholding in the housing finance company - MuthootHomefin (India) Ltd from 79% to 88.27%. Its loan portfolio increased by Rs. 409crore at Rs. 441 crore. Total revenue for FY17 stood at Rs. 24 crore as againstRs.2 crore in FY16. It achieved a profit after tax of Rs. 2.87 crore during theFY17 as against Rs.1.36 lakhs.
Duringthe year, Company increased its shareholding in the Sri Lankan subsidiary -Asia Asset Finance PLC. It increased its loan portfolio by 26% at LKR 866 crorein FY17. Total revenue for FY17 stood at LKR 213crore as against LKR 139crs inFY16. It generated a profit after tax of LKR 28 crore during the year asagainst previous year profit after tax of LKR 18 crore.
AboutMuthoot Finance Ltd:
MuthootFinance Limited is the largest gold financing company in India in terms of loanportfolio. The company is a ‘Systemically Important Non-deposit taking NBFC’headquartered in the southern Indian state of Kerala.
Operatinghistory of Muthoot Finance has evolved over a period of 78 years since M GeorgeMuthoot (the father of our Promoters) founded a gold loan business in 1939under the heritage of a trading business established by his father, NinanMathai Muthoot, in 1887.
The companyprovides personal and business loans secured by gold jewellery, or Gold Loans,primarily to individuals who possess gold jewellery but could not access formalcredit within a reasonable time, or to whom credit may not be available at all,to meet unanticipated or other short-term liquidity requirements.
Company islisted on both National Stock Exchange and Bombay Stock Exchange.