Kerala-based Muthoot Finance has set a target to disburse Rs 300 crore personal loans during the current financial year, a top company official said on Wednesday.
The company, which had earlier offered gold loans announced its foray into the personal loan category aimed at serving salaried individuals.
“We have noticed a lot of gold loan customers have the potential to be given a personal loan. This is purely for salaried individuals. We have seen the potential and have already started offering it in Kerala and Karnataka,” Muthoot Finance, Executive Director, George M Alexander said.
The company has so far disbursed personal loans worth Rs 50 crore since its foray into the personal loan category.
“We are launching today in Tamil Nadu. We will be entering Telangana and Andhra Pradesh very soon. By then we would have covered Southern States.
We want to touch Rs 300 crore (personal loans) by end of the (financial) year,” he told. “The company has set a target of disbursing Rs 3,000 crore by FY 2023. That is the plan,” he said.
Stating that the company would look at disbursing loans to customers who have been ignored by banks and other non-banking finance institutions, he said, “the reason why we are looking at such customers is that there is huge potential to serve.”
“Keeping in mind that today a good number of customers are getting salaries in a bank account, a good number of customers have an auto-debit facility and good credit rating, all of this gives us a comfort to offer this product,” he said.
The minimum ticket size for individuals under personal loan category is Rs one lakh while maximum it will be Rs 10 lakh. For non-metros, the minimum will be Rs 50,000 and maximum will be Rs 10 lakh.
Responding to a query, he said, the company was also planning to offer loans to individuals who are ‘self-employed.’ “Currently, we want to stabilise this portfolio. Maybe after 24 months, we will look at offering this product to self-employed,” he said.