Muthoot Finance aims to grow personal loan book size to Rs 3,000 cr in next 5 yrs

This is our first unsecured product and we aimed to offer the Personal loan product in more than 20 cities of South India by targeting Rs 300 crore in this fiscal, Muthoot Finance Limited Executive Director George M Alexander said after launching of its personal loan business here on Tuesday targeting the salaried individuals mainly lower, middle and lower middle segments, who are ignored by the banks.

The company has over 500 branches in Telangana and Andhra Pradesh, he said initially, we will offer personal loans at 183 branches located in Hyderabad and it will be expanded to Vijayawada and Vizag in two or three months.

The company had already disbursed Rs 30 crore personal loans launched earlier in Tamil Nadu, Karnataka and Kerala, George said the ticket size of personal loan will be from Rs one lakh to Rs 10 lakh while the period for repayment is maximum 5 years from one year.

The rate of interest starts from 14 per cent to maximum 21 per cent and the loan will directly get credited in the bank account. As good number of customers have auto-debit facility and good credit rating, it will be easier for the company to disburse persons loans, he added.