Kerala-based Muthoot Finance Ltd plans to expand personal loan operations taking the tally to 50 locations across the country by the end of the year, the gold financing company said on Tuesday.The non-banking finance company (NBFC) forayed into the personal loans segment in 2018 and plans to expand its business portfolio, with its latest target the salaried personal loan category in Delhi and National Capital Region (NCR). Currently, such loans are offered across 16 cities.
“This is a unique offer, which will benefit the salaried class as the loan can be availed with minimum documentation and will be disbursed within 48 hours. The company expects to grow its customer base in all categories by FY21. This loan facility will be now available in all our Delhi & NCR regions and following months will be launched across north," George Muthoot Alexander , Executive Director, Muthoot Finance said.
The personal loan book target for the current financial year 2019-20 is ₹750 crore.Under the scheme, Muthoot Finance will disburse loans amounting ₹1-10 lakh at an interest rate between 13.5% and 23% per annum to the salaried class. People in the salaried class, within the 24-58 year age group and engaged in private, state and central government services can avail personal loan for a tenure of 1-5 years. Customers will be evaluated based on their credit history, know your customer (KYC) based background check as well as CIBIL score.
“The scheme aids the working class with fast and affordable sanctioning of loans without any collaterals and flexible repayment options," the company said.Muthoot Finance has a total of 282 branches spread across Delhi and NCR region. At the end of March, The Muthoot Group Assets Under Management (AUM) stood at ₹38,303 crore.