Muthoot Fin ventures into personal loans
Gold financing company Muthoot Finance Ltd MFL, which has 130 branches in the twin cities plans to expand its reach in Andhra Pradesh and Telangana by...
Hyderabad: Gold financing company Muthoot Finance Ltd (MFL), which has 130 branches in the twin cities plans to expand its reach in Andhra Pradesh and Telangana by offering personal loans in addition to gold loans.
The company plans to raise Rs 300 crore internally and distribute the same for the current fiscal with loans ranging from Rs 1 – 10 lakh depending on the customer. The interest rates vary from 14-21 per cent. It also aims to have Rs 3000 crore assets under management in the personal loan segment in the next five years.
Any salaried individual with stable employment and a monthly salary of Rs 20,000 or more in metro locations and Rs 10,000 or more in other towns can apply for a personal loan with MFL.
George M Alexander, Executive Director, Muthoot Finance Ltd said, “The disbursement of personal loan has witnessed consistent growth in India for the last 15 years. Also, the advent of credit bureaus has made personal loans more accessible to salaried class as financial institutions are willing to lend more based on individuals past credit behavior.”
He further added, “We will be able to leverage our existing customer base through our branches and our direct sales team thereby reaching to more and more customers.