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Muthoot Finance plans to launch a new scheme, making higher-ticket loans more attractive.
Managing Director George Alexander Muthoot told BusinessLine that the NBFC will offer gold loans worth ₹10 lakh at 12 per cent interest rate to existing as well as new customers.
Currently, ₹10-lakh gold loans form 4 per cent of Muthoot’s total gold loan portfolio, and are offered at 15-17 per cent to around 5,000 customers. The company plans to increase the share of this category to t 10 per cent of its portfolio by the end of H1 FY19.
Its average gold loan ticket size is ₹35,000, and average rate of interest is about 20 per cent.
“The scheme is targeted at SMEs who are going to banks for their working capital requirements,” said George. The company has already test-marketed the scheme in select metros and received good response, he added.
The NBFC will take the scheme nationwide from December 1.
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