Muthoot Finance eyes Rs 750-1,000 crore disbursement in ‘salaried personal loans’ in next one year

Also launches‘salaried personal loans’ product in NCR through its 282 branches and other channel partners

Muthoot Finance, a diversified financial services company, expects to disburse ‘salaried personal loans’ to the tune of Rs 750-1,000 crore across the country over the next twelve months, a top official said.

This systemically important non-banking finance company had last year diversified into the unsecured personal loans business.

After testing this ‘salaried personal loans’ product in the four Southern metros of Bengaluru, Hyderabad, Kochi and Chennai, this product was launched in the National Capital Region (NCR) today.

In the coming months, plans are afoot to launch this ‘salaried personal loans’ product both in the West and Eastern parts of India, George M Alexander, Executive Director, Muthoot Finance said here.

“We now have assets under management of Rs 125 crore under the ‘salaried personal loans’. From current level of 16 locations, we want to take its availability to 18 more locations this year”, he said.

Muthoot Finance will hand out personal loans (without collaterals) from Rs 1-10 lakh at interest rates ranging from 13.5 percent to 23 percent per annum to the salaried class only.

The working population typically in the age group of 24-58 years and engaged in private, state and central government services can avail personal loan for tenure of 1-5 years, according to company officials.

“This is an unique offer, which will benefit the salaried class as the loan can be availed with minimum documentation and will be disbursed within 48 hours”, Alexander said.

Alexander also indicated that the company may look to introduce other ‘unsecured products’ (it is already offering microfinance and personal loans) in the coming months, but did not elaborate.

Muthoot Finance sees ample scope for it to cross sell its ‘salaried personal loans’ product to its existing gold loan customers. Over 2 lakh customers visit the Muthoot Group’s 5,020 branches every day across the country. It also sees opportunity to convert new ‘salaried personal loan’ customers into gold loan customers.