Muthoot Fincorp Limited

The name ‘Muthoot’ arises from the traditional Christian family living in Kozhencherry, a small town in Travancore (Kerala). Muthoot Ninan Mathai is the Patron and founder of the group. Mr Ninan started as a retail and wholesale trader of grains in 1887. Later, as time passed, he started a Chit Fund business. In the 1950s, he entered the Gold Loans business and became the most significant player in Chits and Gold Loans.

Shri Pappachan Muthoot, one of the four sons of the Late Muthoot Ninan Mathai, started the Shri Muthoot Pappachan group. On March 14, 1997, ‘The Muthoot Finance Private Limited’ as Pvt. Ltd. company, was incorporated. On November 18, 2008, the group was converted into a public limited company with the name ‘Muthoot Finance Limited’.

Currently, Muthoot Fincorp has over 15,000 employees, serving around 3 million customers through its 3,600+ branches, other offices, and team on the ground across the country. The overall managed AUM of Muthoot Fincorp is around ₹ 17,388 Crore as of December 31, 2022.

List of Board of Directors-

According to March 2022, Muthoot Fincorp is present in the following States and Union Territories-

Andaman and Nicobar, Andhra Pradesh, Assam, Bihar, Chattisgarh, Delhi, Goa, Gujrat, Haryana, Himachal Pradesh, Jammu and Kashmir, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Orissa, Punjab, Rajasthan, Tamil Nadu, Telangana, Uttar Pradesh, Uttarakhand, West Bengal.

1. Gold loans-
   Gold loans are an easy and secure way by which the borrowers can avail cash against their gold. The borrowers need to pledge their gold as collateral with Muthoot Fincorp Ltd. The market value of the gold on the day of the gold loan application will be taken as a base for calculation. Only gold ornaments or jewelry, such as gold coins, bangles, earrings, pendants, necklaces, etc., will be used to calculate the value of the loan; any other metals, gems, and stones are excluded from the calculation. Muthoot Gold loan schemes provide attractive interest rates with a maximum value of gold. The loans are quickly approved with minimal fees. It is an easy and secure option for investment.
2. Small Business Loans- 
   SME loans, or Small and Medium Enterprises loans are designed to fulfil the needs and desires of small businesses. The minimum loan amount is ₹15,000 and the maximum loan amount is up to ₹8,00,000. This scheme also provides easy repayment options. These bonds come with insurance coverage so that the businessman does not have to worry about repayment in the event of unfortunate events. The period of the loan ranges from 6 months to 36 months. Anyone aged between 21 and 65 who has been on the same business premises for at least 2 years can avail of the loan. Also, an Income Tax return for the past 2 years, a recent bank statement for 6 months along with profit and loss, and an audited balance sheet for the last two years are required to get the loan.
3. Home Loans-
   Muthoot’s Home Loans helped their clients to fulfil their desire to have a home. It is only available to Indian residents over 21 years of age. Home loans are easy to apply for with easy documentation. It does not have hidden charges. The maximum age at the time of loan maturity is 65 years. It provides various home loan products, such as affordable home loans, resale loans, self-construction loans, and many more. They offer loans starting from ₹ 2,00,000 to ₹ 25,00,000 for a loan tenure of 3-20 years, with interest rates varying from 12 to 18%.
4. Auto Loans-
   One of Muthoot's Fincorp Ltd. Products includes Auto Loans, Two-Wheeler loans, and Used-Car  Loans. The group gives auto loans to the common people at a low-interest rate to meet their needs for owning a vehicle. Auto loans provide maximum coverage and flexible repayment options. The schemes under this are two-wheeler loans and used-car loans.
5. Micro Financing-
   Microfinance loans offered by the Muthoot Group provide reliable and affordable financial services to the common people to meet their small needs. This service is provided by a subsidiary of Muthoot Fincorp Ltd. named Muthoot Microfin Ltd. It also empowers women by providing microfinance loans at low cost.

• CRISIL rating for the past 3 years:

• Brickwork rating for the past 3 years:

(₹ in Cr)

1. Secured portfolio - Majority of the portfolio is backed by gold which is a highly liquid asset.
2. Stalwart in gold loan industry- The company is the fourth largest gold loan NBFC in India.
3. Credit rating - The credit rating of the company has been upgraded which represents the better prospectus of the company

1. High group level leverage - Group leverage is at 6x as on March 31, 2023.
2. Portfolio concentration - Southern states constitute 61.44% of the portfolio as of December 31, 2022.
3. Portfolio quality - the company has an increasing NPA in their portfolio YoY, from 1.86% and 0.61% in FY 20 to 2.88% and 1.57% in FY 22.

Bonds represent a loan agreement between a borrower and a lender. It is a fixed-income instrument. These are issued by the borrowers to the lenders to raise money to finance their business needs. On the other hand, the investor or the lender receives an interest against it. It is issued by the government, corporations, states etc. 

Step 1- Login to your Demat account. 
Step 2- Ensure you have enough funds. 
Step 3- Fill the Application form with basic details and Demat details
Step 4- Choose the bond and make the payment
Step 5- The bond units will get credited to your Demat account.