Kerala-based Muthoot Fincorp, one of the leading non-bank finance companies, Thursday launched a bespoke gold loan plan that students can avail to buy smartphones or tabs attending their online classes, the company said in a release Thursday.
It is christened as Restart India Vidya Dhan Gold Loan. The interest-free loan, according to the company, will be available to up to 1,00,000 applicants on a first-come, first-serve basis through 3600 plus Muthoot NSE -2.34 % Fincorp branches across India.
“Like the livelihoods of adults, children’s education also is severely affected across the country due to the pandemic,” said Thomas John Muthoot, chairman, Muthoot Fincorp. Unfortunately, most of our students do not have the smartphones or tablets necessary to attend online classes.”
Under the scheme, loans on gold will be given for up to Rs.10,000 per individual for six months. In this, no interest will be charged for a period of up to 90 days.
In addition, there will not be any processing charges as well. One applicant will be eligible for only one loan under the scheme, which can be availed by producing the student’s ID card.
The education of nearly 247 million children enrolled in elementary and secondary schools was impacted, the company said citing industry sources.
It was Union Minister Nitin Gadkari who inaugurated the Restart India Initiative on July 23, 2020. The initiative included tailor-made loan schemes for the covid-stricken small-time retailers, advisory service to improve sales, training on digital methods to help marketing and Shopping Festivals to support the sales directly.
The latest launch is to mark the anniversary of the first move, the company said.
Under the first initiative, Muthoot Fincorp distributed loans worth Rs.20,000 crores to nearly 2.7 million customers in the country’s MSME sector with various discounts and offers.
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