National News
Muthoot Microfin to start gold loans soon
Muthoot Microfin, part of the Muthoot Pappachan Group, is entering secured lending, including gold loans via co-lending with Muthoot Fincorp, leveraging RBI’s eased qualifying asset norms. The move aims to diversify its ₹12,253 crore AUM and reduce concentration risk
Muthoot Microfin, leveraging relaxed RBI norms, is diversifying into secured lending, including gold loans via co-lending with Muthoot Fincorp. Muthoot Microfin, a part of the Kerala-based Muthoot Pappachan group, is diversifying into secured lending, taking advantage of the easier qualifying asset criteria set by the Reserve Bank of India.
The NBFC-MFI, with Rs 12,253 crore assets under management at the end of June, is all set to foray into gold loans through a co-lending arrangement with its parent, Muthoot Fincorp.
As part of the risk mitigation exercise, the lender also began micro loans against property (LAP) and micro business loans a couple of months ago.
In terms of qualifying asset rules, Muthoot Microfin’s share of microfinance loans given to borrowers with up to Rs 3 lakh annual family income stood at 76%. About 94% of its AUM was given without collateral, while the balance 6% was sanitation loans and loans given to buy products such as solar lamps and mobile phones.
RBI lowered the minimum qualifying asset criteria to 60%, providing all NBFC-MFIs a window to grow secured loans. All pure-play microfinance lenders are now eyeing growth in the secured business to reduce concentration risk.
National News
GJC Delegation Meets RBI Deputy Governor, Makes GMS Presentation
The Proposal Was Acknowledged As An Innovative Initiative With The Potential To Become A Game Changer For The Industry and The Nation.
A GJC delegation comprising Vice Chairman Avinash Gupta, Legal Consultant CA Bhavin Mehta, and National Secretary Mitesh Dhorda met with Shirish Chandra Murmu, Deputy Governor of the Reserve Bank of India, along with his senior team.
During the meeting, the delegation made a detailed presentation on the proposed Gold Monetization Scheme (GMS). The RBI team appreciated the concept of the scheme. The proposal was acknowledged as an innovative initiative with the potential to become a game changer for the industry and the nation.
GJC remains committed to working closely with all stakeholders —including the government, banks, jewellers, gold depositors, and temple trusts—in the larger national interest and for the sustainable growth of the GJ industry.
The Gold Monetization Scheme (GMS) in India was launched with the primary objective of reducing gold imports by mobilizing the vast amount of idle gold held by households, institutions, and temple trusts, thereby decreasing the country’s heavy reliance on gold imports. By encouraging depositors to bring their unused gold into the formal banking system, the scheme puts this dormant gold into productive economic purposes, such as meeting the needs of jewellers and industries without requiring fresh imports.
Additionally, the scheme allows depositors to earn interest on their gold deposits instead of keeping gold idle at home, transforming a non-yielding asset into an income-generating investment while simultaneously strengthening India’s gold supply chain and reducing the trade deficit.
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