Muthoot Finance Ltd and Goldplus, a jewellery retail brand of Titan Industries Ltd, have entered into a tie-up to finance and sell gold ornaments in Andhra Pradesh.
According to the tie-up, Muthoot will finance 20 per cent of the margin money to buy new gold ornaments being sold by Goldplus priced up to Rs 2 lakh.
After purchasing, the jewellery has to be pledged (deposited) with Muthoot which will be returned to the customer after making the full payment within two years through equated monthly instalments.
The rate of interest is at 11.5 per cent.
“Under the scheme, customers can purchase gold at the prevailing rates without having any margin money,'' Mr R Venkateswaran, Zonal Manager, Muthoot Finance Ltd, told newspersons here on Thursday.
The option of pledging old gold ornaments to buy new is also available under the scheme.
Mr A. Palani Kumar, General Manager, Titan Industries Ltd (of the Tata Group), said the scheme would be offered at the existing seven outlets of Goldplus in the State.
“We are expecting the scheme to generate an additional turnover of over 5 per cent for us,'' he said.
The expected turnover this year was around Rs 750 crore, he added.