Muthoot Finance expecting to get a growth of 15%
Like the shops, small traders, and MSMEs were closed, there were not many funding requirements. This resulted in the offtake of the Gold Loan business.
But when the businesses started opening up in June and July, they required financing and the gold loan was the easiest and quickest way to serve their demand.
This trend of taking a Gold Loan in case of financial need will continue in the next quarter. Gold Loan seems to be a good source for economical funding.
The reason, why people opt for a gold loan from a non-banking financial corporation like Muthoot Finance, is the convenience, quick and easy gold loan application process. Every financial institution has its own advantages and drawbacks.
An NBFC can attract a higher interest rate, but it works 24×7 and accepts other things along with gold.