Launches gold loan scheme for Small and medium enterprises
Muthoot Finance Ltd, the flagship of The Muthoot Group, on Thursday launched new gold loan scheme targeted at small and medium enterprises (SMEs).
Hyderabad: Muthoot Finance Ltd, the flagship of The Muthoot Group, on Thursday launched new gold loan scheme targeted at small and medium enterprises (SMEs). Under this, the Kochi-based company will offer gold loans of Rs 10 lakh and more at an interest rate of 12 per cent per annum to SMEs for their working capital requirements.
“With this new scheme, we expect to grow our customer base in the high-ticket loan category from current 4 per cent to 10 per cent of our total loan disbursements by June 2018. This loan will be now available through our all 4,200 branches, including the 599 branches across Andhra Pradesh and Telangana,” Babu John Malayil, Deputy General Manager, The Muthoot Group, told the media here.
The gold loan company offers gold loans at 16 per cent interest rate, but it has reduced the rate to the high-ticket loans to attract more customers. In Telugu states, the company’s current assets under management (AUM) stand at Rs 4,146 crore with Andhra Pradesh accounting for Rs 2,257 crore while Telangana, Rs 1,889 crore. It has nine regional offices and employees over 3,200 people.