Muthoot Finance records four-fold jump in digital loan disbursals

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 cr 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. 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 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. 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 George Alexander Muthoot, Managing Director, Muthoot Finance, “With Loan@Home, we are 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.”

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 utilized 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 utilized, as simple and transparent as that. Given our 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 payments on its web portal (and will also be available on its app by July-end)