Muthoot Finance posts four-fold jump in digital loan disbursal

Our Bureau Kochi | Updated on July 16, 2020

Gold loan lender Muthoot Finance has recorded strong traction on its iMuthoot mobile app as well as its online portal in the months following the outbreak of the Covid-19 pandemic.

The company saw a four-fold jump in quantum of loan disbursals via its digital platforms, to the tune of ₹224 crore in June compared with February. Moreover, customers are increasingly keen to service interest payments on its app and website, which has driven a 2.5x surge in digital interest collections, at ₹139 crore last month, the company claimed.

Besides, the lender has witnessed doubling of monthly customer transactions (loan renewal, top-ups, interest payment), touching 8.25 lakh in the month gone by. “All this was made possible by efficient and highly scalable systems, which is reflected in the 73 per cent growth of unique customers transacting on the firm’s digital platforms in June when compared with February,” a press release said.

Cash-back incentive

To boost digital usage further, Muthoot Finance is incentivising customers with a cash-back scheme to service interest payments on its web portal. This will also be available on its app by July-end.

George Alexander Muthoot, Managing Director, Muthoot Finance, said: “With Loan@Home, we are taking the company to the customer’s home. Now the customer can get a gold loan from the comfort of his home without having to visit the branch at any stage of the procedure. We find that under the current circumstances, a large swathe of our customers across the country may be finding it difficult to approach our branches to do business due to the restrictions. Such apprehensions are especially apparent among higher net worth customers.”

Published on July 16, 2020

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