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Also launches Loan@Home, Gold UNLOCKER to boost digital offerings

Thiruvananthapuram, NFAPost: Muthoot Finance, India’s largest gold loan NBFC has recorded strong traction on its iMuthoot Mobile App as well as the online portal in the months following Covid-19 pandemic.

The country’s No.1 Most Trusted Financial Services Brand has seen a four-fold jump in quantum of loan disbursals via its digital platforms to the tune of Rs. 224 crore in June, 2020 compared to February, 2020.

Moreover, the customers are increasingly keen to service interest payments on our easy-to-use interface of the app & website which has driven a 2.5x surge in digital interest collections at Rs. 139 cr last month.

Not just that, our speedy process and state-of-the-art digital infrastructure has witnessed doubling of monthly customer transactions (loan renewal, top-ups, interest payment) touching 8.25 lk in the month gone by.

Digital platform

All this was made possible by our efficient & highly scalable systems, a true testament of which is reflected in the staggering 73% growth of unique customers transacting on our digital platforms in June when compared to February, 2020.

Amid the pandemic, Muthoot Finance truly understands the challenges to the economy and the need for working capital, be it by individuals or small businesses.

The movement restrictions and safety concerns occasioned by the Covid-19 situation is a game-changer for the business ecosystem, especially with regards to last-mile delivery of services to clients. Therefore, the company has launched fit-for-purpose innovations like Loan@Home and Gold UNLOCKER as part of its digital offerings.

Due diligence on the spot

When opting for Loan@Home, the company executive will visit customer’s premises at the latter’s date & time of convenience, do the due diligence on-the-spot, and the gold loan amount will be credited to customer’s bank account via a safe & agile process with the customer not required to step out of his/her home at all.

According to Muthoot Finance Managing Director George Alexander Muthoot with Loan@Home, the company is taking Muthoot Finance to the customer’s home.

“Now the customer can avail a gold loan from the comfort of his or her home without having to visit the branch at any stage of the procedure. As a leading financial services enterprise, we find that, under current circumstances, a large swathe of our customers (existing and prospective), across India may be finding it difficult to approach our branches to do business due to the restrictions. Such apprehensions are especially apparent among higher net worth customers,” said Muthoot Finance Managing Director George Alexander Muthoot.

Gold UNLOCKER is a unique value proposition by Muthoot Finance for Indian households which will help unlock the value of their idle gold lying in bank lockers/home safe through an overdraft facility for their gold jewellery.

Salient features include flexibility for customer to take out those gold ornaments from safe custody not being utilised for overdraft facility, and interest payable only for the days and amount of overdraft used. No interest charged if the line of credit is not utilised, as simple and transparent as that.

Financial institutions

Given the company’s unparalleled trust & safety, customers can transfer their existing gold loan held with other financial institutions to Muthoot Finance UNLOCKER. This service will help SMEs/MSMEs and every member of the Indian household – salaried individuals, housewives, entrepreneurs in becoming self-reliant by putting their hard-earned investment to smart use.

To boost digital usage further, Muthoot Finance is incentivising customers with a cashback scheme to service interest paymentson its web portal (and will also be available on its app by July-end).

Diversified business

Muthoot Finance is the flagship company of The Muthoot Group which has 20 diversified business divisions. With 5000+ branches, the Group serves over 2.5 lakh customers every day.

Muthoot Finance is also India’s largest gold loan NBFC and India’s No.1 Most Trusted Financial Services Brand, according to the Brand Trusted Report. It is a reputed ‘Systemically Important Non-deposit taking NBFC’.

As part of the core business, Muthoot Finance provides loans secured against household gold jewellery at highly affordable rates and amazing product features.

Globally, the Group has presence across, USA, UK, UAE, Costa Rica and Sri Lanka. In the recently announced financial results for FY20, Muthoot Finance posted a record Net Profit of Rs. 3,168 Crores (a 50% growth over FY19). The Consolidated Assets Under Management (AUM) grew by 22% for the same period and stood at Rs. 46,800 Crores.

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