BY Amal T James Banking & Finance

Muthoot Group The Muthoot Group is an 126-year-old business house based in India. It has interests in Financial Services, Information Technology, Media, Healthcare, Education, Power Generation, Infrastructure, Plantations, Precious Metal, Tourism, and Hospitality. The Muthoot Group operates in 23 states in India, and has presence in USA, UK and UAE.It is wholly owned and managed by the Muthoot Family.

INTRODUTION Muthoot Finance Limited is the largest gold financing company in India in terms of loan portfolio. The company is a "Systemically Important Non-deposit taking NBFC" The group is headquartered in Kochi, Kerala The company provides personal and business loans secured by gold jewellery, or Gold Loans The company has more than 4,050 branches spread across 23 states of the country Company is listed on both National Stock Exchange and Bombay Stock Exchange. Muthoot Finance is also the highest credit rated Gold Loan company in India

HISTORY The Company was set up by Muthoot Ninan Mathai in 1887 at Kozhencherry Muthoot Finance pvt Ltd Established in the year 1939 when M.George Muthoot In 1971, the firm was renamed as Muthoot Bankers In 2001, the company was renamed once again and came to be known as Muthoot Finance pvt Non-banking financial company(NBFC) of the RBI guidelines. In November 18, 2008, the company was converted into public limited company and the name was changed to Muthoot Finance Ltd.

Muthoot Family

ParticularFY 2010FY 2011% Growth Branch Network1, % Gold Loan Outstanding (Rs Cr)7, % % of Gross NPA on Gross Retail Loan AUM0.46%0.29%- 37% Average Gold Loan per Branch(Rs. Cr) % No. of Loan Accounts (in lakh)284768% Total Weight of Gold Jewellery pledged (in tonnes) % Total Value Stock of Gold Jewellery pledged (in crores )at market price of Rs.1535/gm & Rs.1945/gm respectively % Average Loan Ticket Size % No. of employees %

Products &services Gold Loan - 0% Processing Fees - Loan Disbursal in 5 minutes - Loans from Rs. 1,500 to Rs. 1 Crore - Pre-Payment option without any penalty - Easy documentation Gold Coins - Finance schemes with easy monthly installments - Available in various denominations to suit every pocket

MPower card - Redeemable loyalty points on every transaction - Get Rs. 20 per gram extra on Gold Loan - Special overdraft scheme for MPower Card holders Money Transfer - Fastest Money Transfer facility in the country - Over 12,00,000 transfers annually - Receiver does not have to pay any service charge Foreign Exchange - Competitive rates for all currencies - Provide Travel Currency Card without any extra charges - Commission free encashment of Traveller's Cheques

Travelsmart - International & Domestic Air Ticketing and VISA Services - Railway Ticketing - Tour Packaging (IRCTC Approved and IATA Certified) Wealth Management Services - Best returns and complete security cover for a lifetime - Tie-ups with ICICI Prudential, Life Insurance, SBI Life Insurance,HDFC Life, Kotak Life & Aegon Religare - Wide product range to suit different needs

Awards Asian Businessman of the Year 2011 Businessman of the Decade - Shri M.G. George Muthoot 2011 The Golden Peacock Award for Corporate Governance ‘Asian Sustainability Leadership Award for Best Rural Outreach’ and ‘Asian BFSI Award for Most Admired Loyalty Program’

Gold loans As gold loans are secured Banks do not have such liberal rules on giving loans, either secured or unsecured. The NBFC issue maximum number of gold loans no limits. Margin of loan. - 0% Processing Fees - Loan Disbursal in 5 minutes - Loans from Rs. 1,500 to Rs. 1 Crore - Easy documentation

Most NBFCs allow prepayment without penalty. Banks do not offer this facility. Muthoot Fincorp charges per cent annually Banks, on the other hand, are offering gold loans at per cent a year excluding the 1-2 per cent processing fee

New policy related to gold loans of NBFC 60 per cent value of the pledged gold You can take gold loans by pledging jewellery and gold coins (only in case of banks). NBFCs can offer loans only against gold jewellery The purity of gold should be carat

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