DELHI: Gold financing company Muthoot Finance aims to grow its personal loan book size to the tune of Rs 750-1000 crore by the end of this financial year as it readies to scale up its business beyond the southern states riding on increased demand for credit across low-to-medium income households.
Following its success in its home state of Kerala and neighbouring Karnataka, the private lender on Tuesday announced the launch of its personal loan business for salaried class in Delhi-NCR and aims to expand this facility to western and eastern states as well in the next two years.
“Any salaried individual with minimum monthly wages of Rs 10,000 in smaller towns and Rs 20,000 in metros can avail this facility. Repayment tenor will vary up to five years at an interest of 14-23 percent,” George M Alexander, Executive Director, Muthoot Finance said. In metros, the company will extend personal loans in the range of Rs 1-10 lakh, while in other towns it will start from Rs 50,000. “From current level of 16 locations, we want to take its availability to 18 more locations this year”, he added.
Alexander added that disbursement of personal loans, has grown consistently over the last ten years and the appetite for the same among its existing clients remain robust. “In FY18, our non-gold loan book was just nine per cent and this year we made it 13 per cent,” he added. Further, it aims to leverage the existing customer base through its branches and direct sales team, thereby reaching to more customers. In mid-June, Muthoot plans to launch its products in Rajasthan which would be followed by its expansion in other states.
So far, the company has disbursed personal loans worth Rs 125 crore since its foray into the personal loan category. “This is our first unsecured product and we have a goal to grow the book size of our personal loans to Rs 3,000 crore by 2023 and this fiscal we intend to achieve Rs 750-1,000 crore,” Alexander said.