Gold Loans Spike On Pivot To Safety - Muthoot FinCorp
×
Register Now for Loan From Home!

News

News

Gold Loans Spike On Pivot To Safety

3-Aug-2020

Gold Loans Spike On Pivot To Safety

While a large number of borrowers continue to avail of these loans to tide over immediate cash shortages, many lenders are moving away from unsecured credit to gold loans, which provides adequate risk cover against any future default, industry experts said.

The drying up of unsecured loans post-lockdown and the moratorium period has pushed borrowers towards gold loans, said John Muthoot, chairman of Muthoot Pappachan Group.(Reuters)

The economic repercussions of the Covid-19 pandemic have worried Indians lining up to pawn their gold jewellery for cash, leading to a surge in gold loans by companies such as Muthoot FinCorp Ltd and Manappuram Finance Ltd.

While a large number of borrowers continue to avail of these loans to tide over immediate cash shortages, many lenders are moving away from unsecured credit to gold loans, which provides adequate risk cover against any future default, industry experts said.

The drying up of unsecured loans post-lockdown and the moratorium period has pushed borrowers towards gold loans, said John Muthoot, chairman of Muthoot Pappachan Group. “While owning gold has always been a boon, the higher prices during this period have helped borrowers get maximum value for their gold. Muthoot FinCorp has disbursed loans of about ₹9,000 crore in the three months to June, an increase of 30% from the previous year to almost 2 million customers,” said Muthoot.

Muthoot FinCorp is one of the non-bank financiers of the Pappachan Group.

The record surge in gold prices has allowed borrowers to raise more money against the same quantity of gold. Although data on aggregate gold loan volume is not available, bankers and non-bank financiers said there has been a surge in demand, especially in March to June.

The loan-to-value ratio for gold loans has been capped at 75% by RBI. This essentially means customers can get a maximum of 75% of their value of gold as loans.

Originally Posted On: Hindustan Times - Muthoot FinCorp Gold Loan Company

Sprite Image

Beware of fraudulent job consultants

It has been brought to our notice that certain individuals are receiving fraudulent emails, phone calls, and messages, etc, about job vacancies with Muthoot FinCorp and they are also being asked to deposit money in certain bank accounts.

Please be informed that such communications and practices are completely mala fide and sent with an intent to defraud the public and bring disrepute to the goodwill of our Company. Our Company does not ever demand any fee/money against recruitment nor for the application/interview process.

The public at large is hereby cautioned not to be misled by any such communications received through emails, message or any other communication mode.

Please contact us for further information about the genuineness or otherwise of such communications at:

Muthoot FinCorp Ltd.

MG Road, Near Spencer's, Trivandrum - 695 039

Phone: 0471 4911550 / 0471 4911430

Email: [email protected]

172.69.63.83