Muthoot Finance is the largest gold financing company in India in terms of loan portfolio, according to the 2010 update to the IMaCS Research & Analytics Industry Reports, Gold Loans Market in India, 2009. With the Narendra Modi government ready to present its first Union Budget on July 10, 2014, the group has some expectations from Finance Minister Arun Jaitley.
"Muthoot Finance is driven by the vision to extend financial services to each and every Indian. Financial empowerment through financial inclusion is one of our key guiding principles. Muthoot Finance is a part of the Indian NBFC sector, which plays a very important role in offering financial products and services to people in the remotest corners of India," said Muthoot Group Managing Director George Alexander Muthoot.
"Our expectations from Union Budget 2014 aim at helping the NBFC sector serve Indians better. Muthoot Finance has a network of over 4,400 branches, 70 per cent of which are in rural areas. With NBFCs like Muthoot Finance being given the status of differentiated banks, we would be in a better position to serve the priority sector including agriculture, small businesses, low-income households, education and housing," he said.
"In addition, in view of the important role gold loan NBFCs play in extending financial inclusion, classifying gold loan as a priority sector lending would be a step in the right direction. It would re-open loans from banks thereby helping NBFCs reduce cost of funds and improve lending rate to customers. Further, easing of guidelines on access to funds through NCDs would also be beneficial for the positive growth of the NBFC sector," he added.
"Recognition that gold-loan is a low-risk category in the overall loans portfolio is the need of the hour. Bias against gold-loan products should be removed since gold jewellery provides financial empowerment and can be easily used as an asset even by the poorest in India to secure a financial loan."
Comments
0 comment