Big-ticket loans to touch 10 per cent in FY19: Muthootfin
Mr Malayil added that, This scheme is aimed at SMEs to meet their capital requirements.
Hyderabad: Gold financing company Muthoot Finance expects its big-tickets loans to form 10 per cent of its total loans disbursed by FY19, according to an official here on Thursday.
Addressing the media at the launch of their latest scheme aimed towards the SMEs, deputy general manager Babu John Malayil said, “Currently, only 4 per cent of our loans are big-ticket loans. With our latest scheme to avail loans of above Rs 10 lakh, we hope to see a significant rise in the number. We expect it to hit 10 per cent in FY19.”
Mr Malayil added that, “This scheme is aimed at SMEs to meet their capital requirements.”
When asked about the scheme, he said, “Like other schemes, the person will need to pledge gold to avail the loan but due to the size of the loan we’ll be charging interest at 12 per cent.”
However, Muthoot Finance, which currently has 146 tonnes of gold pledged to them, has said auctioning off the pledged gold is the last resort.