Muthoot Finance Limited

Muthoot Finance Ltd (MFL) is the largest gold loan NBFC based on the loan portfolio in India. The company provides personal and business loans secured by gold jewellery, or Gold Loans, to individuals. The loan portfolio as of March 31, 2023 comprised approximately 8.15 million loan accounts in India with Gold Loans outstanding of Rs 618,753.19 million. Company has the largest branch network among gold loan NBFCs according to CRISIL Research – Industry Report on Gold Loans in March 2023. The branch network has expanded significantly from 373 branches as of March 31, 2005 to 4,745 branches as of September 30, 2023, comprising 818 branches in northern India, 2,797 branches in southern India, 808 branches in western India and 322 branches in eastern India covering 22 states, the national capital territory of Delhi and six union territories in India.  They offer products with varying loan amounts, advance rates (per gram of gold) and interest rates. The maximum and average maturity of the loan product is 12 months and approximately 3 to 6 months, respectively. The average disbursed gold loan amount outstanding was Rs 75,940 per loan account as of March 31, 2023 while interest rates on the Gold Loans usually range between 12% and 24% per annum. Brand name of company, good rating and lucrative coupon rates make this offer a worthy option for investors looking for long term fixed income. We give SUBSCRIBE rating to debt issue.

• 1  George Alexander Muthoot,
• 2  George Thomas Muthoot,
• 3  George Jacob Muthoot